The firm of innovative financing

Results for Fiscal 2021,

ended September 30, 2021

November 2021

FinTech Global Incorporated

TSE Second Section Stock Code: 8789

http://www.fgi.co.jp/english/

  • FinTech, in katakana script and English letters (registration 5113746), FinTech Global, in English letters (registration 5811521) and in katakana script (registration 5811522), and FGI (registration 5113748) are registered trademarks of FinTech Global Incorporated.

Index

Fiscal 2021: Full-Year Performance and Business Summary

Summary・・・・・・・・・・・・・・・・・・・・・・・3

Consolidated Performance ・・・・・・・・・・・・・・・・4

Quarterly Changes in Consolidated Performance・・・・ ・・・ 5

Business Summary by Segment・・・・・・・・・・・・・・ 6

Investment Banking Business・・・・・・・・・・・・・・・8

Entertainment Service Business ・・・・・・・・・・・・・・9

Trends in Balance of Investments and Loans ・・・・・・・・11

Changes in Assets under Management ・・・・・・・・・・・12

Consolidated Balance Sheets・・・・・・・・・・・・・・・13

Consolidated Statement of Income ・・・・・・・・・・・・14

Consolidated Statement of Cash Flows・・・・・・・・・・・15

Performance Forecast

Consolidated Performance Forecast ・・・・・・・・・・・・17

Investment Banking Business Strategy・・・・・・・・・・・18

Entertainment Service Business Strategy ・・・・・・・・・・20

Changes in Key Financial Data ・・・・・・・・・・・・・・・・・・ 26

Corporate Data・・・・・・・・・・・・・・・・・・・・・・・・・ 27

Disclaimer・・・・・・・・・・・・・・・・・・・・・・・・・・・28

Copyright© FinTech Global Incorporated

1

The firm of innovative financing

Fiscal 2021: Full-Year Performance and Business Summary

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Summary

Higher revenues thanks to favorable contribution by investment banking business. All income levels in the black. Entertainment service business saw much larger drop in revenue than Moominvalley Park operating subsidiary expected, as resurgence of COVID-19 and impact on business was worse than imagined. Posted ordinary loss of ¥1.0 billion. Consequently, revenue and income failed to reach targets at the beginning of the fiscal year.

  • Initial forecast based on premise of gradual recovery despite lingering effects of pandemic on Metsä operations. But due to various factors, notably, the fast-spreading delta variant that emerged in July, the impact of COVID-19 has persisted longer than imagined.
    • Investment banking business marked growth in private equity investment and aircraft asset management operations. Posted higher revenues and higher income.
      • Formation of private equity investment deals was brisk, as expected, acting as driver of revenue growth.
      • In aircraft asset management activity, pandemic spurred increase in requests for technical services. Business performed above expectations.
  • In entertainment service business, licensing-related activities delivered revenue increase but Metsä- related activities showed a revenue decrease, reflecting low guest count amid pandemic conditions. Segment loss shrank.
    • In Metsä business, events and other crowd-attracting measures put guest count on recovery track in first quarter, but from second quarter, guest count trended low due to external pressures, namely, several declarations of state of emergency, paralleling spread of COVID-19, and revenues dropped. Segment loss shrank thanks to success of cost-cutting strategies.
    • In licensing-related business, branding emphasis captured demand from people stuck at home because of pandemic restrictions, boosting revenues.

Copyright© FinTech Global Incorporated

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Consolidated Performance

(Millions of yen)

Fiscal 2020

Fiscal 2021

YOY Change

YOY Change

Forecast (As of

Forecast (As of

Amount

Raito

Nov. 2020)

Sep. 2021)

Revenues

6,841

8,107

1,266

18.5%

9,000

8,070

Gross profit

2,313

3,370

1,057

45.7%

－

－

Operating income(loss)

(992)

178

1,171

－

540

120

Ordinary income(loss)

(1,135)

115

1,251

－

370

50

Profit/(loss) attributable to owners of the

(1,186)

130

1,316

－

250

100

parent

EBITDA

(264)

817

1,081

－

－

－

Note: EBITDA is calculated by returning depreciation costs and amortization of goodwill included in cost of revenue and selling, general and administrative expenses back to segment income/(loss).

Revenues

Gross profit

Operating income

Profit attributable to owners of the parent

Favorable results by investment banking business services offset drop in Metsä-related results, leading to higher revenues overall.

  • Formation of private equity investment deals spurred revenue growth in investment banking business. Favorable shift in demand for aircraft asset management services underpinned segment revenue increase.
  • In entertainment service business, licensing-related business saw revenue growth but Metsä guest count trended low, leading to segment revenue decrease.

Gross profit increased dramatically, thanks to higher revenue contribution from investment banking business, particularly arrangement services, with low cost of revenue.

Higher gross profit and lower SG&A expenses led to ¥1,171 million improvement, fueling return to black.

  • SG&A expenses decreased ¥113 million year on year, reflecting reduction in Metsä-related costs.

Posted ¥1,316 million year-on-year improvement, underpinning profit position.

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FGI - FinTech Global Inc. published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 08:51:07 UTC.