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

The firm of innovative financing

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

May 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, Consolidated Statement of Cash Flows ・・・・・・・・・・・・・ 12

Changes in Key Financial Data・・・・・・・・・・ ・・・・・・ 15

Corporate Data ・・・・・・・・・・・・・・・・・・・・・・16

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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.

Metsä saw guest counts tumble due to when a state of emergency was declared, taking revenues down as well. Licensing-related business delivered higher results but not enough offset challenging conditions, leading to segment loss.

• Metsä attracted people with events and other measures in the first quarter, putting guest count on road to recovery. But January declaration of state of emergency led to steep decline in guest count. Maintained revenue balance through cost-cutting.
• Licensing-relatedbusiness expanded domestic demand through effective branding. Revenues hit all-time high on quarterly basis.

Income at each level is showing high rate of improvement that should push full-year performance above expectations. But going forward, Metsä is still likely to struggle, prompting management to postpone a consolidated performance forecast.

• Investment banking business will continue to emphasize arrangements for private equity investment projects. Anticipate exits on corporate investments and asset investments.

In April 2021, some areas were put under a new state of emergency order, and stricter countermeasures were imposed to prevent the spread of COVID-19. How pandemic responses will impact Metsä going forward is unknown. Hanno, Saitama Prefecture, where Metsä is located, currently falls outside the state of emergency zone. However, the prevailing situation could still create a challenging business environment, and potential unknowns preclude a consolidated performance forecast.

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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
	Two Quarters		Two Quarters		Amount	Raito	goal
			(Forecast)
Revenues	4,269		4,874		604	+14.2%	9,000	54.2%
Gross profit	1,301		2,384		+1,083	83.2%	－	－
Operating income (loss)	(495)		840		+1,335	－	540	155.7%
Ordinary income (loss)	(560)		831		+1,391	－	370	224.6%
Profit/(loss) attributable to owners of the	(581)		618		+1,199	－	250	247.3%
parent
EBITDA	(29)		1,186		+1,216	－	－	－
			Note: EBITDA is calculated by adding depreciation and amortization of goodwill to operating profit

Revenues

Gross profit

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

• Investment banking business delivered increase (outside revenue up ¥1,269 million), driven by private equity investment (arrangement services, investment exits) and favorable results from aircraft asset management
• Metsä guest count down 24.9% compared with first two quarters of fiscal 2020, leading to decrease in entertainment service business performance (outside revenue down ¥656 million)

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

Operating income

Higher gross profit and lower selling, general and administrative expenses leads to operating income in black

• Selling, general and administrative expenses down ¥252 million, or 14.1%, to ¥1,543 million.
• Metsä maintained operating structure with cost-reduction focus.

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		QOQ change	YOY change
	１Q	２Q	First two	３Q	４Q	Full year	１Q	２Q	First two	¥ change	¥ change
	quarters	quarters	% change	% change
Revenues	2,209	2,060	4,269	926	1,644	6,841	2,020	2,854	4,874	+834	604
+41.3%	+14.2%
Gross profit	696	604	1,301	368	643	2,313	825	1,558	2,384	+732	+1,083
+88.7%	+83.2%
Operating income (loss)	(258)	(236)	(495)	(398)	(99)	(992)	53	787	840	+734	+1,335
+1,382.8%
－
Ordinary income (loss)	(297)	(263)	(560)	(428)	(146)	(1,135)	9	821	831	+812	+1,391
+8,816.4%	－
Profit/(loss) attributable to	(284)	(296)	(581)	(464)	(140)	(1,186)	(63)	681	618	+744	+1,199
owners of the parent	－	－
EBITDA	(5)	(23)	(29)	(307)	73	(264)	224	962	1,186	+737	+1,216
+328.7%
－

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

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