Digital Garage : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021(IFRS)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any 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, 2021

(Based on IFRS)

August 13, 2021

Company name:

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

Member, Board of Directors, Senior

Inquiries:

Managing Executive Officer,in charge of the

Makoto Soda

TEL

03-6367-1111

Corporate Strategy Division

Scheduled date to file Quarterly Securities Report:

August 13, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts are rounded off to the nearest million yen)

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Revenue

Profit before tax

Profit

Profit attributable

Comprehensive

to owners of parent

income

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions

%

Three months ended

yen

yen

yen

yen

of yen

10,843

56.1

4,874

-

3,310

-

3,343

-

3,236

122.6

June 30, 2021

Three months ended

6,944

(15.5)

405

(81.7)

154

(90.5)

224

(86.2)

1,454

(68.3)

June 30, 2020

Basic earnings per share

Diluted earnings per share

Yen

Yen

Three months ended June 30, 2021

72.54

65.94

Three months ended June 30, 2020

4.86

4.81

(2) Consolidated financial position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners of

owners of parent

parent to total assets

Millions of yen

Millions of yen

Millions of yen

%

As of June 30, 2021

171,513

64,884

63,969

37.3

As of March 31, 2021

178,301

63,082

62,134

34.8

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2021

-

0.00

-

32.00

32.00

Year ending March 31, 2022

-

Year ending March 31, 2022 (Forecast)

-

-

-

-

(Note 1. Revision to the forecast on financial results: No)

(Note 2. Fiscal year ending March 31, 2022 forecast is to be determined.)

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3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

In the field of investment and incubation in domestic and overseas unlisted companies in the Incubation Technology Segment, it is difficult to reasonably estimate the fair value of securities held by Digital Garage Group at the end of the fiscal year. Therefore, Digital Garage, Inc. does not disclose consolidated financial forecasts.

4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2021 (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:
3. Number of issued shares (ordinary shares)

Total number of issued shares at end of period (including treasury shares)

No

No

No

No

	As of June 30, 2021	47,454,400	shares	As of March 31, 2021	47,441,900	shares
Number of treasury shares at end of period
	As of June 30, 2021	1,363,760	shares	As of March 31, 2021	1,363,660	shares

Average number of shares during period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021

46,086,020 shares

Three months ended June 30, 2020

46,018,284 shares

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Condensed quarterly consolidated financial statements

Condensed quarterly consolidated statement of financial position

				(Millions of yen)
		As of March 31, 2021		As of June 30, 2021
Assets
Current assets
Cash and cash equivalents	37,989	35,924
Trade and other receivables	26,574	19,243
Inventories	264	292
Operational investment securities	47,170	50,819
Other financial assets	912	777
Income taxes receivable	21	77
Other current assets	618		633
Total current assets	113,548	107,766
Non-current assets
Property, plant and equipment	19,478	19,156
Goodwill	7,689	7,689
Intangible assets	4,000	4,060
Investment property	2,924	2,906
Investments accounted for using equity method	22,446	22,146
Other financial assets	7,878	7,484
Deferred tax assets	60	47
Other non-current assets	278		259
Total non-current assets	64,753	63,748
Total assets	178,301	171,513

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				(Millions of yen)
		As of March 31, 2021		As of June 30, 2021
Liabilities and equity
Liabilities
Current liabilities
Borrowings	9,768	13,778
Trade and other payables	39,911	33,695
Other financial liabilities	1,712	1,731
Income taxes payable	1,328	716
Other current liabilities	4,146		2,900
Total current liabilities	56,865	52,819
Non-current liabilities
Bonds and borrowings	35,850	31,185
Other financial liabilities	12,168	11,906
Retirement benefit liability	452	456
Provisions	485	483
Deferred tax liabilities	8,515	8,903
Other non-current liabilities	885		878
Total non-current liabilities	58,355	53,811
Total liabilities	115,220	106,630
Equity
Share capital	7,637	7,654
Capital surplus	4,566	4,589
Treasury shares	(4,915)	(4,915)
Other components of equity	2,062	1,851
Retained earnings	52,785		54,791
Total equity attributable to owners of parent	62,134	63,969
Non-controlling interests	947		914
Total equity	63,082	64,884
Total liabilities and equity	178,301	171,513

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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, 2020		June 30, 2021
Revenue
Revenue in recurring business	6,148	6,004
Revenue in operational investment securities	302	3,893
Other income	193	326
Finance income	1	18
Share of profit of investments accounted for using equity	300	600
method
Total	6,944	10,843
Expenses
Cost of sales	2,764	2,531
Selling, general and administrative expenses	3,453	3,304
Other expenses	69	72
Finance costs	252		62
Total	6,539	5,969
Profit before tax	405	4,874
Income tax expense	251		1,564
Profit	154	3,310
Profit (loss) attributable to
Owners of parent	224	3,343
Non-controlling interests	(70)	(33)
Earnings per share
Basic earnings per share	4.86	72.54
Diluted earnings per share	4.81	65.94

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