FinTech Global Incorporated : Results for First Three Quarters of Fiscal 2020, ending September 30, 2020

The firm of innovative financing

Results for First Three Quarters of Fiscal 2020, ending September 30, 2020

August 2020

FinTech Global Incorporated

Mothers 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 2020 First Three Quarters Consolidated Business Summary ・・・・・2

Fiscal 2020 First Three Quarters Consolidated Performance ・・・・・・・・3

Business Summary by Segment ・・・・・・・・・・・・・・・・・・・4

Investment Banking Business-Revenues and gross profit by service ・・・・6

Change in Metsä Village Rental Method ・・ ・ ・・・・ ・・・・・・・・7

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

Measures Taken at Metsä to Stop Spread of COVID-19・・・・・・・・・・9

Activities to Draw Visitors・・・・・・・・・・・・・・ ・・・・・・・10

Trends in Balance of Investments and Loans (FGI, FGT total) ・・・・・・・11

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

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

Consolidated Statements of Income ・・・・・・・・・・・・・・・・・14

About Performance Estimate ・・・・・ ・・・・ ・・・ ・・・・・・・15

Changes in Key Financial Data ・・・・・・・・・・・・・・・・・・・16

Corporate Data・・・・・・・・・・・・・・・・・・・・・・・・・・17

Copyright© FinTech Global Incorporated

1

Fiscal 2020 First Three Quarters Business Summary

							（Millions of yen）
		Fiscal 2019 First Three Quarters		Fiscal 2020 First Three Quarters			YOY Change Amount
	Revenues	6,689		5,196			(1,492)
	Gross profit	2,275		1,670			(605)
Operating income(loss)	(1,307)		(893)			+413
Ordinary income(loss)	(1,445)		(989)			+456
Profit/(loss) attributable to	(1,210)		(1,045)			+164
owners of the parent
	EBITDA	(831)		(337)			+494
		Note: EBITDA is calculated by adding depreciation and amortization of goodwill to operating profit
Revenues	Lower revenues due to temporary park closure and delay in investment exits
	• Moominvalley Park temporarily closed for 80 days due to COVID-19 pandemic.
	• Effect of COVID-19 pandemic delayed investment exits in investment banking business.
	Aircraft asset management services favorable.

Gross profit

Operating income (loss)

Effect of impairment loss on corporate investment significantly reduced.

• Impairment loss on corporate investment dropped to ¥18 million, compared with ¥366 million in the corresponding period a year ago.

SGA expenses down 28%. Operating loss less deep.

• Metsä implemented management system to deal with drop in visitor count and made headway in tightening costs and securing capital to run the site.
• Metsä pre-opening costs and other one-time expenses no longer a factor, and expenses down in investment banking business as well.

Profit (loss) attributable to

owners of parent

Posted extraordinary loss of ¥292 million, which includes fixed costs incurred during closure of Moominvalley Park.

Note that, Moomin Monogatari has reinforced its structure for continued business activities amid prolonged COVID-19 pandemic with support and cooperation of stakeholders, including licensees, shareholders and financial institutions

Copyright© FinTech Global Incorporated

2

Quarterly Changes in Consolidated Performance

（Millions of yen）

			Fiscal 2019				Fiscal 2020		QOQ change	YOY change
	１Q	２Q	３Q	First three	４Q	Full year	１Q	２Q	３Q	First three	¥ change	¥ change
	quarters	quarters	% change	% change
											(1,133)	(1,492)
Revenues	1,020	2,257	3,411	6,689	2,486	9,175	2,209	2,060	926	5,196
											(55.0%)	(22.3%)
											(235)	(605)
Gross profit	455	495	1,324	2,275	669	2,944	696	604	1368	1,670
											(39.0%)	(26.6%)
											(162)	+413
Operating income(loss)	(747)	(720)	160	(1,307)	(356)	(1,664)	(258)	(236)	(398)	(893)	（－）	（－）
											(165)	+456
Ordinary income(loss)	(804)	(762)	121	(1,445)	(404)	(1,850)	(297)	(263)	(428)	(989)	（－）	（－）
Profit/(loss) attributable											(167)	+164
(599)	(645)	34	(1,210)	(376)	(1,586)	(284)	(296)	(464)	(1,045)
to owners of the parent	（－）	（－）
											(284)	+494
EBITDA	(679)	(568)	416	(831)	(104)	(935)	(5)	(23)	(307)	(337)	（－）	（－）

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

Copyright© FinTech Global Incorporated

3

Business Summary by Segment (1)

（Millions of yen）

						Fiscal 2019					Fiscal 2020		QOQ
Reporting Segments								First three								First three	YOY change
	1Q		2Q		3Q		4Q		1Q		2Q	3Q	change
					quarters			quarters
	Revenue	405		975		1,230		2,611	782	3,393	555		849		497	1,901	(351)	(709)
Investment Banking	Gross Profit	249		130		466		846	293	1,139	316		403		325	1,045	(77)	+198
Business
Operating
	(128)		(276)		26		(378)	(100)	(478)	(71)		36		26	(8)	(9)	+369
	income
	Revenue	182		263		148		593	79	673	64		62		43	170	(19)	(423)
Public Management	Gross Profit	88		149		78		316	47	364	33		34		25	93	(9)	(222)
Consulting Business	Operating	10		65		(3)		72	6	79	(7)		(5)		(12)	(25)	(7)	(98)
	income
	Revenue	484		1,078		2,122		3,685	1,721	5,407	1,647		1,202		448	3,298	(754)	(387)
Entertainment	Gross Profit	131		228		808		1,168	376	1,545	376		190		50	617	(140)	(551)
Service Business	Operating	(392)		(299)		346		(345)	(78)	(423)	(18)		(142)		(253)	(414)	(111)	(68)
	income
	Revenue	7		13		3		24	‐	24	-		-		-	-	-	(24)
Others	Gross Profit	7		13		3		24	‐	24	-		-		-	-	-	(24)
	Operating	(4)		0		(8)		(12)	‐	(12)	-		-		-	-	-	+12
	income
Adjustment	Revenue	(60)		(73)		(93)		(226)	(97)	(324)	(57)		(54)		(62)	(173)	(8)	+53
（Elimination of	Gross Profit	(21)		(26)		(32)		(80)	(48)	(128)	(29)		(24)		(32)	(86)	(8)	(5)
transactions among
Operating
segments and	(232)		(210)		(201)		(644)	(185)	(829)	(161)		(124)		(158)	(445)	(34)	+199
corporate expenses）	income
Amount Booked on	Revenue	1,020		2,257		3,411		6,689	2,486	9,175	2,209		2,060		926	5,196	(1,133)	(1,492)
Gross Profit	455		495		1,324		2,275	669	2,944	696		604		368	1,670	(235)	(605)
Consolidated
Statement of Income	Operating	(747)		(720)		160		(1,307)	(356)	(1,664)	(258)		(236)		(398)	(893)	(162)	+413
	income
															Moominvalley
									Geoplan						Park and
		Metsä Village		Moominvalley					Namtech and				Moominvalley	Metsä Village
Related issues		opened in		Park opened in					Adacotech				Park closed	closed
	November						removed from				temporarily
			March 2019								for 16 days
		2018						scope of				for 80 days
									consolidation						and 44 days,
															respectively

1. Revenue for each segment includes intersegment revenue and transfers.
2. The ¥(445) million operating loss for the first three quarters of fiscal 2020 , under adjustment, includes intersegment elimination (¥174 million in the first three quarters of fiscal 2020) as well as corporate expenses (¥(619) million in the same period) that are not allocated to any reporting segment. Corporate expenses are general and administrative expenses not associated with any reporting segment, mainly because it is difficult to justifiably allocate such expenses to any particular reporting segment.

Copyright© FinTech Global Incorporated

4

Business Summary by Segment (2)

Revenues

Gross Profit

Operating Income (loss)

72

(Millions of yen)

8,000	3,000

24

6,000

		2,000
3,685
4,000
	3,298
593	1,000
2,000		170
2,611

24

1,168

617

31693

8461,045

		- 8
0
		- 378				-		25
					- 414
- 500
- 345 - 12	- 445
		- 644
- 1,000					- 893

	1,901	- 173
0	- 226			0

- 80- 86

- 1,500

- 1,307

2019/9	2020/9
3Q	3Q
6,689	5,196

Down 22.3％

2019/92020/9

3Q3Q

2,275 1,670

Down 26.6％

2019/92020/9

3Q3Q

Fixed expenses of ¥292 million incurred

during temporarily closure of Moominvalley

Park booked as extraordinary loss

Note: Segment breakdown uses non-eliminated values.

	Investment		Public Management		Entertainment Service Business		Other		Corporate expenses and
	Banking Business		Consulting Business				eliminated transactions

Copyright© FinTech Global Incorporated

5

Investment Banking Business-Revenues and gross profit by service

Closed real estate deals for which asset management services had been provided and posted increase in service revenues. Aircraft asset management moving in favorable direction. Corporate investment impairment loss no longer a factor, leading to 23.5% year-on-year increase in gross profit.

• Arrangements: Executed real estate M&A deals, and posted revenues from performance fees and trust beneficiary rights agency services.
• Asset investment: Exited real estate M&A deals connected to aforementioned agency services but expect to post investment revenue in fourth quarter. Progress on other deals is delayed.
• Metsä Village: Decrease due to introduction of free parking on weekdays, in effect since November 2019.
• Corporate investment: Impact from impairment loss on fund investment in third quarter of fiscal 2019 no longer a factor. Investment exit activity in second quarter, contributing to higher revenues and gross profit.
• Aircraft asset management: Favorable results despite significant COVID-19 pandemic impact.

(Millions of yen)	Revenues	(Millions of yen)	Gross Profit
		1,500
3,000

2,611

7
（Other）							7				1,045
			889			1,901			（Other）
2,000					1,000		(337)			5
		5	539				（Other）
29
186									846
（Corporate									557
investment）				880
1,000			73		500	186
		135						55
			1,218
								190				96
						512								43
			279			294			260				286
0						0
			2019/9…	2020/9…			2019/9				2020/9
										3Q			3Q

Note: Intersegment transactions use non-eliminated values.

Copyright© FinTech Global Incorporated

Other

Aircraft asset management

Corporate investment

Asset investment

Metsä Village

Arrangements, asset management, M&A agency services and other services

6

Change in Metsä Village Rental Method

Shift from master lease system to direct renting to tenants. Accelerate trend toward improved value.

Moomin Monogatari ran the commercial facilities of Metsä Village under a master lease agreement with FGI and subleased space to tenants. However, seeking a better system that would support efforts to boost value through facility development and heightened appeal and promote smooth exit of investments at a later date, in April 2020, FGI shifted to a subcontracting system wherein the Company rents Metsä Village space directly to tenants and then outsources asset management responsibilities to FinTech Asset Management and property management responsibilities to Moomin Monogatari.

Until end of March 31, 2020

Operation

Restaurants

Parking lots

Rental
FGI	Moomin	Various charges
Monogatari
Rent		Rental

Rent

From beginning of April 2020

FAM

Asset management		Asset management services
Subcontracting
agreement
fee
	Rental
	FGI
Property management	Facility	Rent, store-opening fee
agreement
management
	Property management services
	fee

Moomin Monogatari

Copyright© FinTech Global Incorporated

Events

Exhibition space

Tenants

Tenants

Exhibition space

Events

Parking lots

As a tenant, Moomin Monogatari rents restaurants, offices and parking lot spaces and holds events and special exhibitions.

7

Changes in Entertainment Service Business Results (Quarterly)

Moominvalley Park closed temporarily-80 days in second and third quarters-to help stop spread of COVID-19

• Metsä-related:	Moominvalley Park closed for 16 days in second quarter and 64 days in third quarter (27 days of operation between June 4 - 30).
	Revenues for first three quarters of fiscal 2020 fell 17.3% over corresponding period a year ago, to ¥2,232 million. Operating division
	and administrative division each worked to reduce costs given lower revenue status.

• Licensing-related:Opening of Moominvalley Park piqued interest in using Moomin characters under license, leading to 23 new contracts since October 2019. Closure of large commercial facilities, which are key sales channels for licensees to market their merchandise, had negative impact, but situation countered by efforts to strengthen product categories and sales routes with future demand potential, such as online channels. Revenues hit ¥1,065 million, up 13.9% over the corresponding first three quarters of fiscal 2019.

	Revenues	(Millions of yen)										(Thousands of people)
	（note 2)		2,500						386								400
	Metsä-related											314
			2,000				328	2,122
	Licensing income,	Guest count	1,800					Fixed expenses related to
						1,665			the operation of
	anime broadcasting			211				1,776					Moominvalley Park
	rights income							262					transferred to
		1,500	(note 1)		1,378				1,647
								225	extraordinary loss
										1,721		1,344	Q2: ¥71 million
	Other						1,078						Q3: ¥220 million
Notes:		1,000	Operating expences						1,202			160
		876
											701
1.	In first quarter of fiscal 2019, there					739		1,779	1,299		1,271		800
	were 52 days of operation. Does
			484				578
	not include pre-opening event.	500											448	80
2.	Revenues are based on non-						346
	eliminated intersegment				181				418		376			161	56
											402
	transactions.		0 22	281	13	325		328	156		210		286
3.	EBITDA is calculated by adding		4		0
						55	(178)
	depreciation and amortization of	EBITDA (347)	(171)		15			(18)
	goodwill included in cost of			(78)			(142)
	revenue and selling, general and	(note 3)			(299)						(253)
	administrative expenses to	Segment income (loss)
	operating profit.	(392)					2Q		3Q	4Q		FY2020		2Q	3Q
					1Q	Copyright© FinTech Global Incorporated		1Q					8

Measures Taken at Metsä to Stop Spread of COVID-19

Took measures to stop spread of COVID-19 while cutting costs, procuring capital. Prepared for prolonged impact on business.

Item	Details
	• In addition to cost-cutting based on initial budget, promote further cost reduction.
	• Moomin Monogatari utilized institutional loans and borrowed ¥300 million.
	• Loans extended by financial institutions to Moomin Monogatari and local special purpose company came with support
	measures, including repayment deferral. Expect pandemic to have prolonged impact on business, and talks in progress with
Finances/cost control	lenders for flexible conditions on future repayment schedule.
• Moomin Monogatari asked stakeholders for support and understanding.
	FGI: ¥400 million in financial support and rent payment relief (implemented)
	Moomin Characters: A licensee, company will give full cooperation to ensure that business activities continue going forward.
	City of Hanno, Saitama Prefecture: Extended and enhanced acceptance of products supplied by Moomin Monogatari under
	furusato nozei ("hometown tax" donation) system.
Tenants	• Tenants at Metsä Village were excused from paying some of their rent during site closure.
	• Staff who operate facilities laid off during temporary site closure.
Employees	• Applied for employment adjustment subsidy (about ¥60 million on application basis). Will begin receiving financial assistance
	in fourth quarter.
COVID-19 response	• Ensure "Three Cs" avoidance (closed spaces, crowded places, close-contact settings). Formulated "Peace of Mind
Declaration." Stop spread of COVID-19.
	Moominvalley Park
	"Peace of Mind Declaration"

Temperature check with thermography upon entering site

Admission to site restricted once certain level of capacity reached

©Moomin Characters TM

Service counter lines and seating spaced	Inside windows and doors opened to
to maintain social distancing	improve ventilation
Plexiglass dividers installed in areas,	Heightened cleaning and disinfecting
such as service counters, where people	protocols as well as garbage collection

are face-to-face	* Saitama Prefecture recommended businesses use
Enhanced cashless payment structure	"Sai-no-Kuni New Lifestyle Peace of Mind
	Declaration" for creating guidelines to stop spread
Copyright© FinTech Global Incorporated	of COVID-19	9

Activities to Draw Visitors

Once operations resumed, events brimming with appeal were launched Metsä Umbrella Sky Design Project 2020 on now!

Metsä Village closed April 8 - May 24

May 22 - August 30

"Forest and Lake and Umbrella"

March 2020

April

May

June

July

Moominvalley Park closed

March 2 - March 13 and March 28 -June 3

March 14	June 4 - August 30	July 18 - August 30
Moominvalley Park
"Moominvalley and Umbrella"	"Hattifatteners' Thunder Splash"
1st anniversary

August

August 8 - August 16 "Moomin's Day" Everyday for a week

Opened "A Little Girl Who Gained Courage

• From Friends of Moominvalley" at Emma's
  Theater
  Revised ticket content and prices (Summary of revisions)
  • Added facilities available for access on one- day pass
  • Discounts on advance tickets
  • Annual passport goes on sale (on official
  Moomin site, until August 9)

Complementing "Forest and Lake and Umbrella" event at Metsä Village, installation of about 2,000 colorful umbrellas hangs above footpath for about 300m

Mist bathes visitors and Hattifatteners under the umbrella display in this fun event to beat the summer heat.

Moomin's Day, which is also Tove Jansson's birthday (August 9), is celebrated with a variety of activities.

©Moomin Characters TM

Copyright© FinTech Global Incorporated

10

Trends in Balance of Investments and Loans (FGI, FGT total)

Key Components of Change in Third Quarter (April 2020 - June 2020) of Fiscal 2020

•	Principal investment:	New investment into growth company. Increased balance.
•	Venture capital funds:	Impact of evaluation loss on FGF investment and exchange rates led to decrease.
•	Corporate investment:	Partial recovery of loan to feed working capital at affiliated company.
		Partial recovery of loan to subsidiary special purpose company with capital stake in SGI.

• Real estate (Metsä): FGI acquired parking lot lease assets from Moomin Monogatari following change in rental method at Metsä Village.

Total Investments and Loans by FGI and FinTech Global Trading (FGT) (including investments in subsidiaries)

(Millions of yen)

10,000

					Note: Does not include contribution or loans between FGI and FGT
					Principal investment
9,211					Total of investments in securities, trade, investments in
	8,601			securities, equity in affiliated companies, and investments
8,642	8,592
		in capital to affiliated companies but excluding investments

into venture capital funds.

	2,688
		2,619	2,753	2,782
	288	157
	1,577	165	158
	1,182
	1,318	1,203
5,000

4,317 4,343 4,355 4,456

0

2019.9

2019.12

2020.3

2020.6

Venture capital funds

(Investment into FinTech GIMV Fund and two other funds.)

Corporate loans

Total of business loans and short-term loans to subsidiaries. Does not include receivables provided for in allowance for doubtful accounts, but all subsidiary loans are booked.

Real estate (investment banking business)

Investment real estate and development-use real estate in the investment banking business. On the balance sheets, booked under real estate for sale in progress and real estate for sale.

Real estate (Metsä business)

Real estate for Metsä. Metsä Village real estate booked under real estate for sale in progress and real estate for sale. Moominvalley Park land, while legally transferred to local special purpose company, is included in this amount because on

an accounting basis it is booked under FGI's noncurrent assets.

Copyright© FinTech Global Incorporated

11

Changes in Assets under Management

FinTech Asset Management (FAM) FGI Capital Partners (FGICP)

Executed third-quarter exit of real estate M&A deal* formed by FGI in second quarter and into which FGI contributed capital as well as investment deal for healthcare facility. Consequently, FAM's balance of assets under management decreased.

•*Real estate M&As

Undertaken to sell/purchase shares in a corporation where principal assets are primarily real estate, compared with typical M&As where the purpose is to sell/purchase a business in a company. The target of sale/purchase is not just the real estate held by the corporation but rather to shift assets and liabilities other than real estate held by the corporation from the seller (former shareholder(s) to the buyer (new shareholders) through the sale/purchase of shares in the corporation.

(Millions of yen)

30,000

20,000

10,000

0

			FGICP
22,807			（Discretionary investment）
		FAM
			(Real estate, excluding
			healthcare)
			FAM
			(Healthcare facilities)

Notes: 1. Healthcare facilities: Mainly housing for seniors.

2. The balance of assets under management is calculated on the basis of such factors as recent financial statements available to FAM and the acquisition cost of real estate.

2018.9

2019.9

2019.12

2020.3

2020.6

Copyright© FinTech Global Incorporated

12

Consolidated Balance Sheets

(Thousands of yen)

					Fiscal 2020
	Assets	Fiscal 2019	First Three		Change
					Quarters
	Current assets	10,438,589		8,861,461		(1,577,127)
		Cash and time deposits	2,533,187		2,022,051	(511,136)
		Accounts receivable, trade	727,499		497,819	(229,679)
１		Investments in securities, trade	1,359,941		1,268,465	(91,476)
		Loans receivable, trade	548,625		518,287	(30,337)
２		Real estate for sale	4,211,988		3,997,927	(214,061)
		Merchandise	208,577		300,816	92,238
３
	Other	948,410		349,185	(599,225)
		Allowance for doubtful	(99,641)		(93,091)	6,549
		accounts
	Noncurrent assets	8,586,424		8,060,716	(525,707)
４		Property, plant and equipment	7,283,853		6,873,423	(410,429)
		Intangible fixed assets	724,929		656,616	(68,313)
		Investments and other assets	577,641		530,677	(46,964)
	Total assets	19,025,014		16,922,178	(2,102,835)

New investments into two growth companies and real estate M&A deals. but posted decrease due to distribution of profit received paralleling exit by venture capital

• fund FGF from investment in drug-discovery company that had been target of investment activity and also due to sale of real estate trust beneficiary rights on SPC subsidiary.
• Decreased due to asset investment (real estate development) exit activity
• Accrued consumption tax decreased, owing to consumption tax refund.

• Decreased, despite investment to enhance content at Moominvalley Park, due to depreciation of buildings and internal and external features.

						Fiscal 2020
		Liabilities		Fiscal 2019	First Three		Change
						Quarters
		Current liabilities	3,010,093		2,568,011		(442,081)
		Accounts payable, trade	213,256		138,422		(74,833)
５		Short-term loans payable	373,904		121,459		(252,444)
		Current portion of long-term	752,968		762,968		10,000
		loans payable
		Income taxes payable	98,999		54,502		(44,497)
		Accrued employee bonuses	157,244		134,885		(22,358)
		Other	1,413,720		1,355,773		(57,946)
		Noncurrent liabilities	7,141,750		6,873,446		(268,304)
６		Long-term loans payable	6,086,260		5,998,254		(88,006)
		Net defined benefit liability	94,633		105,000		10,366
		Other	960,856		770,191		(190,665)
		Total liabilities	10,151,843		9,441,457		(710,386)
		Net Assets
		Shareholders' equity	7,480,064	6,434,700	(1,045,364)
		Common stock	6,461,911	6,462,062	151
		Additional paid-in capital	5,015,924	5,016,132	208
		Retained earnings	(3,997,770)	(5,043,494)	(1,045,723)
		Accumulated other		(33,493)	(44,643)	(11,149)
		comprehensive income
		Stock acquisition rights	65,837	63,104	(2,733)

５		Decreased due to repayment of loans paralleling asset investment (real estate
		Non-controlling interests	1,360,762	1,027,560	(333,201)
		development) exit activity
			Total net assets	8,873,170	7,480,720	(1,392,449)
		Although Moomin Monogatari borrowed funds from external sources for
			Total liabilities and net assets	19,025,014	16,922,178	(2,102,835)
６
	working capital, a portion of SPC's institution-extended loans was repaid,
		leading to a decrease.					13
		Copyright© FinTech Global Incorporated

(Thousands of yen)

			Fiscal 2019	Ratio to		Fiscal 2020	Ratio to		YoY Change	YoY Change
	First Three Quarters	Revenues	First Three Quarters	Revenues		Amount	Ratio
Revenues						6,689,057	100.0%			5,196,677		100.0%		(1,492,380)	△ 22.3%
		1
Cost of revenues				4,413,854	66.0%			3,526,593		67.9%		(887,261)	△ 20.1%
Gross profit				2,275,203	34.0%			1,670,084		32.1%		(605,119)	△ 26.6%
Selling, general and administrative expenses		2			3,582,887	53.6%			2,563,881		49.3%		(1,019,006)	(28.4)%
Operating income/(loss)				(1,307,684)	(19.5)%			(893,796)	(17.2)%		413,887	－
Other income				10,852	0.2%			24,449	0.5%		13,597	125.3%
Other expenses				148,947	2.2%			119,886		2.3%		(29,061)	(19.5)%
Ordinary profit/(loss)				(1,445,779)	(21.6)%			(989,233)		(19.0)%		456,546	－
Extraordinary profit				182,556	2.7%			5,672		0.1%		(176,883)	(96.9)%
							3
Extraordinary loss				32,076	0.5%			295,386		5.7%		263,310	820.9%
Income before income taxes				(1,295,300)	(19.4)%				(1,278,947)	(24.6)%		16,352	－
Income taxes				56,552	0.8%			46,753		0.9%		(9,798)	(17.3)%
Profit /(loss)				(1,351,852)	(20.2)%			(1,325,701)		(25.5)%		26,151	－
Profit /(loss) attributable to non-controlling				(141,430)	(2.1)%			(279,977)		(5.4)%		(138,547)	－
interests
Profit /(loss) attributable to owners of parent				(1,210,422)	(18.1)%			(1,045,723)		(20.1)%		164,698	－

Revenues and cos of revenues from operation of Moominvalley Park, which did not open until March 16, 2019, that is, during the second quarter of fiscal 2019, were factored in

• from the start of the term, but revenues and cost of revenues decline owing to temporary closure due to the spread of COVID-19 as well as a delay of investment and a decrease in the number of subsidiaries. Valuation loss on impairment of corporate investments dropped to ¥18 million as of June 30, 2020, compared with ¥366 million a year earlier.
• Burden of costs incurred in preparation for Metsä opening no longer a factor, and other one-time costs also gone. Personnel expenses reduced. Decrease in number of subsidiaries under consolidation as of fourth quarter of 2019, affecting 28.4% drop in SG&A expenses for first three quarters of fiscal 2020 year on year.

• Booked ¥292 million in fixed expenses (including personnel expenses and depreciation expenses) during temporary closure of Moominvalley Park as loss due to temporary closure.

Copyright© FinTech Global Incorporated

14

About Performance Forecast

Consolidated performance forecast will be disclosed after careful tracking of progress on investments tapped for exit and the effect of COVID-19 on Metsä business

As to Metsä business, Moominvalley Park resumed operations on June 4, 2020, but from July through August, the rate of new COVID-19 cases accelerated again in Japan. The current situation makes it impossible to predict the kind of results that Metsä will achieve in the immediate future. Uncertainty also affects the investment exit environment in the investment banking business. FGI had tapped certain investments to exit in fiscal 2020 and was working toward this even before COVID-19 emerged, but at the present time, it is unclear whether or not exit plans will go forward.

The consolidated performance forecast for fiscal 2020, ending September 30, 2020, has not been determined yet because of the difficulty in making realistic predictions at the present time. An update will be provided as soon as the situation allows a better picture of performance direction.

Copyright© FinTech Global Incorporated

15

Changes in Key Financial Data (Consolidated Basis)

							First Three
		Fiscal 2015	Fiscal 2016	Fiscal 2017	Fiscal 2018	Fiscal 2019	Quarters
							Fiscal 2020
Revenues	(millions of yen)	5,429	7,485	7,182	3,689	9,175	5,196
Gross profit	(millions of yen)	2,495	1,496	1,626	2,261	2,944	1,670
Operating income/(loss)	(millions of yen)	115	(1,031)	(1,319)	(1,072)	(1,664)	(893)
Ordinary income (loss)	(millions of yen)	237	(1,369)	(1,341)	(1,227)	(1,850)	(989)
Profit /(loss) attributable to owners of parent	(millions of yen)	224	(1,384)	(1,358)	(820)	(1,586)	(1,045)
Net assets	(millions of yen)	7,879	6,312	5,326	8,551	8,873	7,480
Total assets	(millions of yen)	11,958	10,975	12,932	14,016	19,025	16,922
Net assets per share	(yen)	48.31	38.66	29.64	39.31	37.03	31.77
Net income (loss) per share	(yen)	1.48	(8.56)	(8.39)	(4.79)	(8.08)	(5.20)
Diluted net income (loss) per share	(yen)	1.47	－	－	－	－	－
Equity to total asset ratio	(%)	65.4	57.0	37.1	52.2	39.1	37.8
Equity to net income ratio	(%)	3.4	(19.7)	(24.6)	(13.5)	(21.5)	－
Price earning ratio (PER)	(times)	84.7	－	－	－	－	－
Cash flow from operating activities	(millions of yen)	(1,791)	(1,305)	(1,153)	(2,978)	(2,604)	－
Cash flow from investing activities	(millions of yen)	(644)	(302)	(1,026)	(2,008)	(4,543)	－
Cash flow from financing activities	(millions of yen)	4,761	(751)	2,937	5,771	5,710	－
Cash and cash equivalents at the end of the fiscal	(millions of yen)	4,612	2,240	2,969	3,847	2,513	－
year
Number of employees(consolidated)	(employees)	117(8)	114(20)	143(27)	156(42)	167(262)	150(247)
(part-time employees)
Number of employees(non-consolidated)(part-time	(employees)	38(3)	45(8)	40(6)	38(5)	39(5)	29(4)
employees)

Copyright© FinTech Global Incorporated

16

Corporate Data: FinTech Global Incorporated

Head office

Establishment

Representative

Data of listing

Securities Code

Fiscal year-end

Main business

Number of issued shares

Minimum trading unit

Capital stock

Net assets (consolidated)

Major shareholders (As of March 31, 2020)

Number of employees

Meguro Central Square 15th Floor, 3-1-1, Kamiosaki, Shinagawa-ku, Tokyo 141-0021

December 7, 1994

Nobumitsu Tamai, President and Chief Executive Officer

June 8, 2005

8789 (TSE Mothers)

September 30

I. Investment banking business

1. Public management consulting business
   Ⅲ. Entertainment service business

201,114,600 shares	(As of June 30, 2020)
100
¥6,462 million	(As of June 30, 2020)
¥7,480 million	(As of June 30, 2020)
Nobumitsu Tamai	10,095,500 shares (5.02%)
CAT-MY Co., Ltd	10,000,000 shares (4.97%)

Consolidated: 150 (As of June 30, 2020, excludes temporary staff)

•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.

Copyright© FinTech Global Incorporated

17

Disclaimer

The firm of innovative finance

Certain statements made in these materials, including some management targets, may contain forward-looking statements which reflect management's views and assumptions. Management targets represent goals that management will strive to achieve through the successful implementation of business strategies for the FGI Group. The Group may not be successful in implementing its business strategies, and management may fail to achieve its targets. Management targets and other forward-looking statements involve current assumptions of future events as well as risks and uncertainties that could significantly affect expected results, including adverse economic conditions in Japan, the United States or other countries; declining real estate and/or stock prices; additional corporate bankruptcies or additional problems in business sectors to which Group companies lend; difficulties or delays in integrating businesses and achieving desired cost savings; increased competitive pressures; changes in laws and regulations applicable to the Group's businesses; and adverse changes in Japanese economic policies.

To the extent materials containing forward-looking statements remain in available documents, we have no obligation nor the intent to update such forward-looking statements.

Copyright© FinTech Global Incorporated

18