(Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
August 9, 2023 Name of listed company:GMO Financial Gate, Inc. Tokyo Stock Exchange Growth Exchange: URL https://gmo-fg.com/ 4051 Stock code: Representative:   Kentaro Sugiyama   President & Chief Executive Officer Tomoki Tamai    Director & Administrative Division Executive Manager Contact: Tel: +81-3-6416-3881 Scheduled date of commencement for Scheduled submission date of quarterly report   August 10, 2023 dividend payment Supplemental materials prepared for financial results : Yes Information meeting arranged related to financial results : Yes   (for institutional investors and analysts ) (Amounts rounded down to the nearest one million yen) 1. Consolidated Financial Statements for the Third Quarter, FY2023 (From October 1, 2022 to June 30, 2023)
(Note)  The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock split has been reflected in the calculation of basic earnings per share for the fiscal year ending September 30, 2023 (forecast). (2) Consolidated Financial Position
2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. Accordingly, the year- end dividend for the fiscal year ending September 30, 2023 (forecast) considers the effect of this stock split. 3. Consolidated Financial Forecast for the Fiscal Year Ending September 2023 (October 1, 2022 to September 30, 2023)
2.The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The effect of the stock split has been reflected in the calculation of basic earnings per share for the fiscal year ending September 30, 2023 (forecast). (Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Notes: (1) Changes of important subsidiaries during the period : No (change of specific subsidiaries that leads to a change in the scope of consolidation) Number of new subsidiaries     -(Name) ;   Number of excluded subsidiaries:   -  (Name) (2) Adoption if the accounting method peculiar to quarterly financial statements : No (3) Changes in the accounting policy / changes in the accounting estimation [1] Changes in accounting policy required by accounting criteria : Yes [2] Changes in accounting policy other than [1]
[3] Changes in accounting estimations
[4] Restatement of prior period financial statements :No (4)  Number of shares issued (common stock) [1] Number of shares issued at the end of the term (including treasury stock) [2] Number of treasury shares at the end of the term
[3] Average number of shares during the term (Notes) 1. The number of treasury shares at the end of the term includes the Company's shares held by Board Benefit Trust (BBT and J-ESOP) (FY2022: NA, Q3 FY2023: 18,800 shares) 2. The Company conducted a 2-for-1 stock split for common stock on January 17, 2023. The number of shares issued (common stock) has been calculated assuming the stock split had been conducted on October 1, 2021. * Quarterly financial statements are not subject the review by certified public accountants or financial statement auditors. * Explanation of the appropriate use of forecasts and other special notes The forward-looking statements, including business results forecasts, contained in this document are based on information available to the company at the time of preparation and on certain assumptions deemed reasonable by the company. Forward-looking statements are not intended as a promise of actual results by the company. Actual results may differ materially due to a variety of factors. For more regarding assumptions related to earnings forecasts and precautions concerning the use of earnings forecasts, see 1.Qualitative Information on Quarterly Consolidated Financial Statements (3) Discussion of consolidated earnings forecasts and other forward-looking information on page 4 of Attached Materials. (Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Table of contents of attachments

(Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. 1. Qualitative Information on Quarterly Consolidated Financial Statements (1) Discussion of operating results Forward-looking statements in this document reflect GMO Financial Gate Group judgements as of the end of the cumulative consolidated third quarter of the fiscal year ending September 2023. Financial results for the cumulative consolidated Third quarter of the fiscal year ending September 2023 (October 1, 2022 to June 30, 2023) are as follows.

a. Revenue
We recorded revenue of ¥12,003,785 thousand (up 61.2% year on year). During the three months ended June 30, 2023, while there were concerns over the "ninth wave" of COVID-19, the impact appeared to have been limited, and the move toward economic recovery continued; and as a result, in the offline cashless payment market in which the Group operates, the amount of payment processed increased in various industries. As the number of foreign visitors to Japan continues to be on a recovery trend, demand from inbound tourists also appeared to have contributed to a certain extent, and the number and amount of payment processed, our KPIs, showed strong growth. The next-generation payment terminal stera continued to make a large contribution to sales of payment terminals, which account for most of initial sales. In the three months ended June 30, 2023, initial sales increased from the previous quarter as, just like in the previous quarter, shipping of payment terminals related to a large project which has been ongoing since October 2022 continued to remain at a high level, and also sales from small and medium-sized projects significantly increased. Recurring-model revenue*, consisting of stock, fee and spread revenues, for the three months ended June 30, 2023 showed strong growth, boosted by continued recovery trend in economic activities with the COVID-19 situation calming down and the recovery in inbound demand with the number of foreign visitors growing. Also, with additional contribution from a continued increase in the number of active terminals, recurring revenue significantly increased from the three months ended March 31, 2023 which was an off-season. Spread revenue, which had previously shown slower growth than other recurring-model revenues, is on a recovery trend as it is showing growth in line with the plan following the implementation of various initiatives. * Effective April 1, 2023, we changed the term referring to the total of stock, fee and spared revenues from "stock- model revenue" to "recurring-model revenue." (Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Revenue by business model for the nine months ended June 30, 2023 is as follows. Recurring-model revenue consists of stock, fee and spread revenues, and figures in parentheses represent a breakdown of recurring revenue.

b.   Operating profit
We recorded operating profit of ¥976,666 thousand (up 73.2% year on year). While profitability of initial sales primarily consisting of sale of payment terminals is low, initial sales for the three months ended June 30, 2023 exceeded the plan, and an increase in the absolute amount of gross profit contributed to growth of operating profit. Also, as strong growth in initial sales led to increases in the number of active terminals and the number and amount of payments processed, high-margin recurring-model revenue also showed solid growth, enabling us to achieve a high level of growth of operating profit while making sufficient investment for employment of human resources to support growth, return to officers and employees, and various growth investments.
c.    Profit attributable to owners of parent
We recorded profit attributable to owners of parent of ¥613,308 thousand (up 71.3% year on year).
(2) Discussion of financial position
(Assets)
As of June 30, 2023, current assets increased ¥1,909,388 thousand from September 30, 2022 to ¥6,925,446 thousand. This was mainly because merchandise increased ¥1,226,647 thousand as we increased the payment terminal inventory to a certain level based on the sales forecast, and trade accounts receivable increased ¥553,623 thousand and cash and cash equivalents increased ¥260,592 thousand due to strong sales of payment terminals. Non-current assets increased ¥70,170 thousand from September 30, 2022 to ¥1,692,127 thousand mainly due to an increase in software of ¥91,694 thousand despite a decrease in goodwill of ¥33,328 thousand. As a result, total assets increased ¥1,979,559 thousand from September 30, 2022 to ¥8,617,573 thousand.
(Liabilities)
As of June 30, 2023, current liabilities increased ¥185,993 thousand from September 30, 2022 to ¥2,114,779 thousand. This was mainly because accounts payable increased ¥215,583 thousand. Non-current liabilities increased ¥1,502,209 thousand from September 30, 2022 to ¥1,540,780 thousand mainly due to an increase in long-term loans payable of ¥1,500,000 thousand. As a result, total liabilities increased ¥1,688,203 thousand from September 30, 2022 to ¥3,655,560 thousand.
(Net assets)
As of June 30, 2023, total net assets increased ¥291,355 thousand from September 30, 2022 to ¥4,962,013 thousand. This was mainly because retained earnings increased ¥613,308 thousand due to recording of profit attributable to owners of parent while retained earnings decreased ¥239,539 thousand due to distribution of dividend from surplus and treasury stock increased ¥120,902 thousand. (Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. (3) Discussion of consolidated earnings forecasts and other forward-looking information We have revised the consolidated earnings forecasts for the fiscal year ending September 30, 2023 announced on May 11, 2023. The outlook of the Japanese economy remains uncertain due to factors including rising prices, market speculation about changes to the monetary policy, and specter of recession. In the meanwhile, in the offline cashless payment market in which the Group operates, the number of member merchants adopting the cashless payment is on the rise against a backdrop of the government-led promotion and diversifying payment methods as well as a shift to safe payment methods amid the COVID-19 crisis. Under such circumstances, the Group has been focusing on increasing the number and amount of payments processed through provision of the next-generation payment terminals with an aim to increase our share in the offline cashless payment market. By steadily carrying out the strategy towards the market share increase, we were able to provide more next-generation payment terminals than we planned during the three months ended June 30, 2023 and steadily increase the number of active terminals and the number and amount of payments processed, which the Group considers key figures, which contributed to strong growth in revenue. In light of such results, we carefully examined the forecast of initial revenue (sales forecast of payment terminals) and recurring-model revenue for the three months ending September 30, 2023, and as a result, we upwardly revised the consolidated revenue forecast for the fiscal year ending September 30, 2023 to ¥15,000 million, an increase by ¥1,400 million from the previous forecast. Consolidated profit forecast remains unchanged from the forecast announced on May 11, 2023 as we plan to use the estimated excess of consolidated profit over the forecast for investment in growth in future periods, including recruiting activities to enhance management structure, return of profits to employees in the form of bonus, improvement of operational infrastructure to reinforce systems. Please refer to "Announcement of Revisions to Consolidated Financial Forecast for the Fiscal Year Ending September 30, 2023" released today (August 9) for more detail. |Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. ...
2. Quarterly Consolidated Financial Statements and Major Notes

(Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. ...
|Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
(2)  Quarterly consolidated statement of income and statement of comprehensive income
Quarterly consolidated statement of income
------------- Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall preval. --- Quarterly consolidated statement of comprehensive income (Q3 cumulative)
(Notice: This document is an excerpt translation of the original Japanese document and is only for reference purpose. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. (3) Notes regarding the quarterly consolidated financial statements (Notes regarding going concern assumptions) Not applicable (Changes of accounting policy) (Application of accounting standard for fair value measurement, etc.) The "Accounting Standard for Calculation of Fair Value" (ASBJ Statement No. 31, June 17, 2021. Hereinafter referred to as "Accounting Standard for Calculation of Fair Value") is applied from the beginning of the first quarter current fiscal year, and the transitional treatment prescribed in Paragraph 27-2 of the Accounting Standard for Calculation of Fair Value is applied. In accordance with the treatment, the new accounting policy stipulated by the fair value accounting standard will be applied prospectively. There is no impact on the quarterly consolidated financial statements. (Notes regarding significant changes in shareholders' equity) Not applicable (Segment information) [Segment information] Segment information has been omitted as the GMO Financial Gate Group has only one business segment, namely the face-to-face payment processing services business, which is not material in terms of segment information disclosure. (Significant subsequent matter) Not applicable