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Results for First Quarter of Fiscal 2021, ending September 30, 2021

February 2021

FinTech Global Incorporated

TSE 2nd Section Stock Code: 8789http://www.fgi.co.jp/english/

Index

Summary ・・・・・・・・・・・・・・・・・・・・・・・・・ 2

Consolidated Performance ・・・・・・・・・・・・・・・・・・ 3

Quarterly Changes in Consolidated Performance ・・・・・・・・・ 4

Business Summary by Segment ・・・・・・・・・・・・・・・・ 5

Investment Banking Business ・・・・・・・・・・・・・・・・・ 7

Changes in Entertainment Service Business Results ・・・・・・・・ 8

Trends in Balance of Investments and Loans ・・・・・・・・・・・ 9

Changes in Assets under Management ・・・・・・・・・・・・・ 10

Consolidated Balance Sheets, Consolidated Statement of Income・・・11

Changes in Key Financial Data ・・・・・・・・・・ ・・・・・・ 13

Corporate Data ・・・・・・・・・・・・・・・・・・・・・・ 14

Summary

Returned to black, with operating income and ordinary income

Favorable trend in investment banking business fueled consolidated results

  • • Marked growth in private equity investment-related services and aircraft asset management services.

In entertainment service business, Metsä on recovery path

Posted solid results in licensing-related business, underpinning segment profit

  • • With measures in place to prevent the spread of COVID-19, Metsä attracted visitors through crowd-pleasing events and other activities and began to see a recovery in guest count. Continuing to keep income and expenses in balance through cost-cutting efforts.

  • • Licensing-related business enjoyed benefits of expanding demand through heightened brand profile. Revenues up from fourth quarter of previous fiscal year.

Challenges for Metsä intensifying since January, but investment banking business expected to show significant growth, so no change to consolidated performance forecast

  • • Investment banking business should see favorable trend in arrangement activity, particularly on private equity investments. Anticipate exits on corporate investments and asset investments.

  • • The declaration of a state of emergency in January 2021 has led to a major drop in guests to Metsä, and the situation remains very challenging from a business perspective right now.

  • • Brisk investment banking business should offset any decreases in Metsä results, so management feels no need to revise consolidated performance forecast.

Consolidated Performance

(Millions of yen)

Fiscal 2020 First

Quarter

Fiscal 2021 First

Quarter

YOY Change

Amount

YOY Change

Raito

Fiscal 2021 Full Year (Forecast)

Progress toward goal

Revenues

2,209

2,020

(189)

(8.6%)

9,000

22.4%

Gross profit

696

825

+129

18.6%

－

－

Operating income(loss)

(258)

53

+312

－

540

9.8%

Ordinary income(loss)

(297)

9

+306

－

370

2.5%

Profit/(loss) attributable to owners of the parent

(284)

(63)

+221

－

250

－

EBITDA

(5)

224

+230

－

－

－

Note: EBITDA is calculated by adding depreciation and amortization of goodwill to operating profit

Despite favorable shift for investment banking business, drop in guests to Metsä squeezed revenue potential, pulling overall revenues down year-on-year.

  • • Investment banking business marked favorable trend in private equity investment advisory services as well as aircraft asset management, underpinning segment revenue increase (outside revenues up ¥257 million)

  • • Metsä guest count improved comparing to the previous fourth quarter of fiscal 2020, but in the first quarter of fiscal 2021, the number fell 21% compared with the corresponding period a year ago, when COVID-19 was not an influencing factor, leading to decrease in entertainment service business revenues (outside revenues down ¥423 million)

Revenues were up, mainly from arrangement services with low cost of revenue ratio, in investment banking business, leading to higher gross profit.

Achieved year-on-year turnaround to operating profit, thanks to higher gross profit and lower SG&A expenses.

  • • Selling, general and administrative expenses down ¥182 million, or 19%) to ¥772 million.

  • • Metsä continued to emphasis cost-cutting operating structure.

After factoring in ¥52 million in quarterly profit attributable to non-controlling interests, FGI still fell short of turning a profit.

  • • Loss at Moomin Monogatari and profit at SGI and Rights and Brands allocated to non-controlling interests according to equity stake.

Performance forecasts and other forward-looking statements are based on certain reasonable assumptions and information currently available to management of the Company. A number of factors could cause actualresults to differ greatly from stated expectations.

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FGI - FinTech Global Inc. published this content on 17 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2021 05:20:05 UTC.