FinTech Global Incorporated : Results for First Quarter of Fiscal 2022, ending September 30, 2022

The firm of innovative financing

Results for First Quarter of

Fiscal 2022, ending September 30, 2022

February 2022

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

Summary・・・・・・・・・・・・・・・・・・・・・・・・・ 2

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

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

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

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

Entertainment Service Business ・・・・・・・・・・・・・・・・ 8

Trends in Balance of Investments and Loans・・・・・・・・・・・10

Changes in Assets under Management ・・・・・・・・・・・・・11

Consolidated Balance Sheets, Consolidated Statement of Income ・・ 12 Changes in Key Financial Data・・・・・・・・・・ ・・・・・・14

Corporate Data・・・・・・・・・・・・・・・・・・・・・・ 15

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Summary

Metsä operations continued to struggle due to consequences associated with COVID-19 pandemic, but investment banking business maintained favorable results.

Enhanced profitability, from operating income to after-tax net income.

Bottom line still colored red, due to allocation of profit to noncontrolling interests.

1. Investment Banking Business
   Sustained, favorable activity for private equity investment related deals and aircraft asset management services. Higher revenue and higher income.
2. • Favorable shift in arrangement services for private equity investment deals and investment exits.
   • In aircraft asset management, demand for aircraft inspections and technical services that accompany return of aircraft remains brisk.
3. Entertainment Service Business
   Despite favorable results from licensing-related business, park closure to update facilities at Moominvalley Park and other issues led to lower revenue and lower income. Updates will reinforce structure to meet anticipated increase in guests going forward.
4. • Moominvalley Park updates were well-received, with post-remodeling daily guest counts in December 2021 rising over the corresponding daily data December 2020.
     Improvements will underpin structure to meet anticipated increase in guests in with-COVID and post-COVID times. Will continue to work at improving value that Moominvalley Park provides to guests.
   • In the licensing-related business, the handling volume of licensed Moomin merchandise expanded.

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Consolidated Performance

								(Millions of yen)
	Fiscal 2021		Fiscal 2022		YOY Change	YOY Change	Fiscal 2022	Progress toward
			Full Year
	First Quarter		First Quarter		Amount	Raito	goal
			(Forecast)
Revenues	2,020		2,272		252	12.5%	8,000	28.4%
Gross profit	825		897		71	8.6%	－	－
Operating income	53		62		9	18.3%	450	14.0%
Ordinary income	9		39		30	328.0%	300	13.2%
Profit/(loss) attributable to owners	(63)		(47)		15	－	100	－
of the parent
EBITDA	224		213		(10)	－	－	－
		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

Operating income

Profit attributable to owners of the parent

Increased despite drop in Metsä-related revenues, thanks to favorable results in other segments, especially investment banking business.

Selling, general and administrative expenses rose 8.0% year on year, paralleling business expansion, but operating income improved nonetheless.

Showed year-on-year improvement of ¥15 million but did not return to black, due to ¥60 million in quarterly net income attributable to noncontrolling interests.

Impact from application of accounting standard for revenue recognition

In the entertainment service business, some Metsä-related merchandise sales were initially procured on consignment, so revenues and cost of revenues are reduced by ¥20 million, respectively. There is no impact on gross profit, operating income, ordinary income or quarterly net income before taxes.

Consolidated performance

forecast

Although the pandemic road ahead is uncertain, brisk activity in such areas as private equity investment and aircraft asset management preclude the need for any changes to the existing consolidated performance forecast.

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Quarterly Changes in Consolidated Performance

							(Millions of yen)
			Fiscal 2021			Fiscal 2022	YOY
	Q１	Q２	Q３	Q４	Full year	Q１	¥ change
	% change
Revenues	2,020	2,854	1,536	1,696	8,107	2,272	252
12.5%
Gross profit	825	1,558	462	524	3,370	897	71
8.6%
Operating income(loss)	53	787	(375)	(287)	178	62	9
18.3%
Ordinary income(loss)	9	821	(393)	(321)	115	39	30
328.0%
Profit/(loss) attributable	(63)	681	(298)	(189)	130	(47)	15
to owners of the parent	－
EBITDA	224	962	(232)	(136)	817	213	(10)
(4.9%)

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).

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