Translation
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discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2022
(Based on IFRS)
Company name:

August 10, 2022

Digital Garage, Inc.

Stock exchange listing: Tokyo
Securities code:
4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,
Kaoru Hayashi
President Executive Officer and Group CEO

Inquiries:

Corporate Officer
Co-Head of Corporate DivisionNobuaki Doi

TELScheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 12, 2022
–Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
Percentages indicate year-on-year changes
Profit attributable ComprehensiveRevenue
Profit before taxProfitto owners of parent
incomeMillions ofMillions ofMillions ofMillions ofMillions%%%%%
yen
yen
yen
yenof yenThree months ended
17,734 63.6
11,204 129.9
7,420 124.2
7,467 123.4
7,585 134.4
June 30, 2022
Three months ended
10,843 56.1
4,874–
3,310–
3,343–
3,236 122.6
June 30, 2021
Basic earnings per share

Diluted earnings per shareYen
158.43
72.54

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen
143.6765.94(2) Consolidated financial position
Total assets

As of June 30, 2022
As of March 31, 2022

Total equity

Millions of yen
242,261
231,607

Ratio of equity
attributable to owners ofparent to total assets
Millions of yen%
101,766
42.0
95,73841.3

Equity attributable toowners of parent

Millions of yen
103,434
97,217

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
0.00

Yen–

Yen
35.00

Yen
35.00

––––

Year ending March 31, 2023 (Forecast)(Note 1. Revision to the dividend forecast most recently announced : No)(Note 2. The dividend forecast for the fiscal year ending March 31, 2023 has not been determined.)

1Total3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
The Company does not disclose its consolidated financial results forecast because it is difficult to reasonably estimate the fair value ofsecurities held by the Group at the end of the fiscal year in the field of investment and incubation in domestic and overseas unlistedcompanies in the Incubation Technology Segment.
4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo
NoNo

(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of June 30, 2022

47,592,500 shares As of March 31, 2022

47,482,800 shares

391,160 shares As of March 31, 2022

390,960 shares

Number of treasury shares at end of period
As of June 30, 2022

Average number of shares during period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022

47,132,758 shares Three months ended June 30, 2021

246,086,020 shares

Condensed quarterly consolidated financial statements
Condensed quarterly consolidated statement of financial position(Millions of yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and cash equivalents

43,41546,748Trade and other receivables
Inventories

24,462347

19,926373

Operational investment securities
Other financial assets

77,950277

86,565332

Income taxes receivable
Other current assets

88
1,103

605
1,279

147,642

155,828

Property, plant and equipment
Goodwill

18,423
6,804

18,224
6,822

Intangible assets
Investment property

4,194
3,171

4,260
3,526

Investments accounted for using equity method
Other financial assets

27,80823,31728,88024,485

Deferred tax assets
Other non-current assets

17231

16221

Total non-current assets

83,96586,433

231,607242,261

Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of June 30, 2022

As of March 31, 2022
Liabilities and equity
Liabilities
Current liabilities
Borrowings

9,223

11,333

Trade and other payables
Other financial liabilities

43,9001,666

43,908
1,678

Income taxes payable
Other current liabilities

394
4,059

340
3,265

Total current liabilities

59,24260,525

Bonds and borrowings
Other financial liabilities

40,71010,68340,99910,304Retirement benefit liabilityProvisions

480
480

473
480

Deferred tax liabilities
Other non-current liabilities

22,001796

25,203843

Total non-current liabilities

75,14978,301

134,390

138,827

Share capital
Capital surplus

7,692
6,147

7,810
6,077

Treasury shares
Other components of equity(1,409)2,273(1,409)2,435

Retained earnings

81,03586,854

Total equity attributable to owners of parent

95,738

101,766

Non-controlling interests

1,479

1,668

Total equity

97,217

103,434

231,607242,261

Non-current liabilities

Total liabilities
EquityTotal liabilities and equity

4Condensed quarterly consolidated statements of income and condensed quarterly consolidated
statements of comprehensive income
Condensed quarterly consolidated statements of income(Millions of yen)Three months ended

Three months ended
June 30, 2021

June 30, 2022

Revenue
Revenue in recurring business
Revenue in operational investment securities

6,004
3,893

6,002
7,534

Other income
Finance income

326
18159
2,131

Share of profit of investments accounted for using equity
method600

1,907

10,843

17,734

2,531
3,304

2,622
3,758

72628070

5,969

6,530

Profit before tax

4,874

11,204

Income tax expense

1,564

3,784

Profit

3,310

7,420

3,343
(33)

7,467
(47)

72.54
65.94

158.43143.67

TotalExpenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs
Total

Profit (loss) attributable toOwners of parent
Non-controlling interests
Earnings per share
Basic earnings per share
Diluted earnings per share5Condensed quarterly consolidated statements of comprehensive income(Millions of yen)Three months ended

Three months ended
June 30, 2021
ProfitJune 30, 2022
3,310

7,420(66)

(426)

(7)

0(1)

592(0)

0(74)

165

3,236

7,585

3,269

7,629(33)(44)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeShare of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable toOwners of parent
Non-controlling interests

6Condensed quarterly consolidated statement of changes in equity
Three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share
capitalBalance at April 1, 2021

Capitalsurplus7,637

Financial assets

Exchangemeasured at

differenceson

Remeasurements

comprehensive

translationof foreign

benefit plansincomeoperations

Treasuryshares

4,566fair value
through other(4,915)

Profit (loss)
Other comprehensive income
Comprehensive income
Issuance of new shares
Dividends

Balance at June 30, 2021

(73)

(1)

(73)

(1)

(7)

2,062
–(74)

––
17––

13––

(74)

(137)

of equity to retained earnings
OtherTotal

1,217

17

Share-based payment transactions
Transfer from other components–

853

Totalof defined

(137)

(7)

–

17

23

–

(137)

––

(137)

7,654

4,589

(4,915)

643

1,216

(7)

1,851

(Millions of yen)
Equity attributable to owners of parent
Retained earningsBalance at April 1, 2021

Non-controllinginterests

Total

Total

52,785

62,134947

63,082

Profit (loss)
Other comprehensive income

3,343

3,343(74)

(33)
(0)

3,310
(74)

Comprehensive income

3,343

3,269

(33)

3,236

(1,475)34(1,475)34(1,475)

13

13

–

–

(7)

(7)

Issuance of new shares
Dividends
Share-based payment transactions
Transfer from other componentsof equity to retained earnings
OtherTotal
Balance at June 30, 2021

137

(1,338)(1,434)–(1,434)

54,791

63,969914

64,884

7Three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured atfair value
through othercomprehensive
incomeBalance at April 1, 2022
Profit (loss)

7,692

6,147

(1,409)

–
117

–117

–

Other comprehensive income
Comprehensive income
Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends
Share-based payment transactions
Total
Balance at June 30, 2022

Exchangedifferencesontranslation

Remeasurementsof foreignoperations

613

1,660

(426)

588(426)

588

Total

of defined
benefit plans

0

2,273
–
162

–

162
–

10–(197)

––

117

(70)

––––

–

7,810

6,077

(1,409)

186

2,248

0

2,435

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2022

Non-controllinginterests

Total

Total

81,03595,738

1,479

97,217

Profit (loss)
Other comprehensive income

7,467

7,467
162

(47)
3

7,420
165

Comprehensive income

7,467

7,629

(44)

7,585

Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

235
10(1,648)

Share-based payment transactions
Total
Balance at June 30, 2022

235
232

242

(1,648)(1,648)

(197)

(197)

(1,648)(1,601)232(1,368)86,854

101,766

1,668

103,4348

Condensed quarterly consolidated statements of cash flows(Millions of yen)Three months ended

Three months ended
June 30, 2021

June 30, 2022

Cash flows from operating activities
Profit before tax
Depreciation and amortization

4,874
885

11,204906(1)59(22)
67

Share of loss (profit) of investments accounted for using
equity method(600)(1,907)

Loss (gain) on investment securities
Decrease (increase) in trade and other receivables

(3)
7,129

(1,478)4,510

Decrease (increase) in investment securities for sale
Decrease (increase) in inventories(3,650)(28)(8,151)(26)

Increase (decrease) in trade and other payables
Increase (decrease) in accrued consumption taxes(6,282)
(456)

(344)
(404)

Other(576)(1,207)

SubtotalInterest and dividends received

1,352
727

3,147757

Interest paid
Income taxes refund (paid)(17)(1,265)

(24)
(410)

797

3,469

Interest and dividend income
Interest expenses on borrowings and bonds

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment

(362)

(109)

Purchase of intangible assets
Purchase of investment securities

(318)
(1)

(418)
(1)

Proceeds from sale of investment securities
Purchase of investments accounted for using equity method

266
––
(38)

Other93(8)

Net cash provided by (used in) investing activities

(321)

(573)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

(390)

1,500

Proceeds from long-term borrowings
Repayments of long-term borrowings–(304)

1,100(397)

Repayments of lease liabilities
Capital contribution from non-controlling interests(438)–(436)
242

Dividends paid
Other(1,453)
21(1,628)3

Net cash provided by (used in) financing activities(2,563)384

Effect of exchange rate changes on cash and cash equivalents

2252

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,065)37,9893,332
43,415

Cash and cash equivalents

35,924

46,7489