FinTech Global Incorporated : Results for First Three Quarters of Fiscal 2021, ending September 30, 2021

The firm of innovative financing

Results for First Three Quarters of Fiscal 2021, ending September 30, 2021

August 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

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・・・・・・・・・・・ 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

Revenues up, thanks to favorable results by investment banking business

Reversed into the black, with operating income, ordinary income and quarterly net income

• Results driven by private equity investment. Aircraft asset management also growing.

Entertainment service business booked lower revenues despite increase in licensing-related revenues, as pandemic kept Metsä guest count down. Segment showed loss.

• Guest count on recovery path, thanks to crowd-attracting events in first quarter, but from second quarter, guest count slumped as COVID-19 cases increased and government declared state of emergency to combat spread of the coronavirus. Three-quarter loss not as deep as a year ago, owing to account-balancing strategy driven by cost- cutting measures.
• Licensing-relatedbusiness maximized branding to capture stay-at-home demand, leading to higher revenues.

Consolidated performance forecast for fiscal 2021 unchanged at present time.

• Investment banking, with its high profit ratio, is doing well but Metsä-related operations are lagging. Consequently, even though profit, at all levels, is on track to meet specific targets, rate of progress toward consolidated revenue target is somewhat behind schedule.
• In investment banking business, will put greater effort into formation of arrangements as the fiscal year-end approaches, and expect demand for aircraft asset management services to remain favorable.
• Guest count at Metsä may shift low, as sudden increase in number of COVID-19 cases since July 2021 prompted government to place several prefectures, including Saitama, where Moominvalley Park and Metsä Village are located, under a state of emergency, effective from August 2 to 31, 2021.
• If revisions become necessary, given evolving trends, notably, the formation of arrangements by the investment banking business and the number of guests visiting Metsä, FGI will quickly disclose such revisions.

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 actual results to differ greatly from stated expectations.

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Consolidated Performance

								(Millions of yen)
	Fiscal 2020 First		Fiscal 2021 First		YOY Change	YOY Change	Fiscal 2021	Progress toward
			Full Year
	Three Quarters		Three Quarters		Amount	Raito	goal
			(Forecast)
Revenues	5,196		6,410		1,214	23.4%	9,000	71.2%
Gross profit	1,670		2,846		1,176	70.4%	－	－
Operating income(loss)	(893)		465		1,358	－	540	86.1%
Ordinary income(loss)	(989)		437		1,426	－	370	118.2%
Profit/(loss) attributable to owners of the	(1,045)		319		1,365	－	250	127.9%
parent
EBITDA	(337)		954		1,291	－	－	－
	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

Despite drop in Metsä revenues, favorable shift by investment banking business underpinned increase in consolidated revenues.

• Underpinned by formation of private equity investment deals, investment banking business turned in great results. With favorable demand for aircraft asset management services, segment delivered higher revenues. (External revenues climbed ¥1,391 million, or 79.3%.)
• Entertainment service business benefited from increased revenues from licensing-related activities but showed a decrease in revenues as the Metsä guest count trended downward. (External revenues fell ¥167 million, or 5.1%.)

Gross profit increased significantly, reflecting higher revenues, especially from arrangement services in investment banking business with its low cost of revenues

Higher growth profit and decrease in SG&A led to ¥1,358 million year-on-year improvement, pushing FGI into operating black.

• With lower personnel costs and miscellaneous costs, selling, general and administrative expenses declined ¥182 million, or 7.1%, year on year, to ¥2,381 million.
• Metsä maintained operating structure with cost-reduction focus.
• Fixed costs of ¥292 million accumulated during temporary closure of Moominvalley Park in the corresponding period of fiscal 2020 were booked under extraordinary loss, but if this amount had been booked under operating expenses, FGI would have shown a year-on-year improvement of ¥1,651 million.

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 actual
results to differ greatly from stated expectations.	Copyright© FinTech Global Incorporated	3

Quarterly Changes in Consolidated Performance

(Millions of yen)

			Fiscal 2020				Fiscal 2021		YOY Q3	YOY Q3 YTD
	Q１	Q２	Q３	First three	Q４	Full year	Q１	Q２	Q３	First three	¥ change	¥ change
	quarters	quarters	% change	% change
Revenues	2,209	2,060	926	5,196	1,644	6,841	2,020	2,854	1,536	6,410	609	1,214
65.7%	23.4%
Gross profit	696	604	368	1,670	643	2,313	825	1,558	462	2,846	93	1,176
25.3%	70.4%
Operating income (loss)	(258)	(236)	(398)	(893)	(99)	(992)	53	787	(375)	465	23	1,358
－	－
Ordinary income (loss)	(297)	(263)	(428)	(989)	(146)	(1,135)	9	821	(393)	437	34	1,426
－	－
Profit/(loss) attributable to	(284)	(296)	(464)	(1,045)	(140)	(1,186)	(63)	681	(298)	319	165	1,365
owners of the parent	－	－
	(5)	(23)	(307)	(337)	73	(264)	224	962	(232)	954	75	1,291
EBITDA
－	－

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).

Copyright© FinTech Global Incorporated

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