The firm of innovative financing

Results for Fiscal 2022,

ended September 30, 2022

November 2022

FinTech Global Incorporated

TSE Standard Market Stock Code: 8789 https://www.fgi.co.jp/en/

  • 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

Fiscal 2022: Full-Year Performance and Business Summary

Consolidated Performance ・・・・・・・・・・・・・・・・4

Quarterly Changes in Consolidated Performance・・・・ ・・・ 5

Business Summary by Segment・・・・・・・・・・・・・・ 6

Investment Banking Business・・・・・・・・・・・・・・・8

Entertainment Service Business ・・・・・・・・・・・・・・9

Trends in Balance of Investments and Loans ・・・・・・・・11

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

Public Management Consulting Business・・・・・・・・・・13

Consolidated Balance Sheets・・・・・・・・・・・・・・・14

Consolidated Statement of Income ・・・・・・・・・・・・15

Consolidated Statement of Cash Flows・・・・・・・・・・・16

Performance Forecast, Return to Shareholders

Consolidated Performance Forecast ・・・・・・・・・・・・18

Business Succession Activities・・・・・・・・・・ ・・・・19

Rights and Brands Japan Co., Ltd.,

Excluded from Scope of Consolidation・・・・・・・・・・20

Capital Reduction and Dividend Forecast・・・・・・・・・・21

Changes in Key Financial Data ・・・・・・・・・・・・・・・・・・ 22

Corporate Data・・・・・・・・・・・・・・・・・・・・・・・・・ 23

Disclaimer・・・・・・・・・・・・・・・・・・・・・・・・・・・24

Copyright© FinTech Global Incorporated

1

Summary

Fiscal 2022 Results

Investment banking business maintained favorable status. Metsä results recovered somewhat. Revenues and income exceeded initial expectations, delivering second straight year of higher revenues and higher income.

  • Steady progress on formation of private equity investment deals, execution of investment and investment exits, underpinning results as initially envisioned. Progress on asset investment exits as well.
  • Aircraft asset management revenues and income higher than targets and higher year-on-year, thanks to demand for technical services, such as aircraft inspections.
  • Moominvalley Park revenues were higher than estimated and higher year-on-year, thanks to success of facility remodeling and lifting of restrictions on movement of people. Progress also made on cost-cutting efforts, leading to reduced loss position.
  • Licensing business benefited from increased handling volume of licensed Moomin merchandise, driving revenues higher.

Fiscal 2023 Targets

Private equity investment activities will be driver of business results. Anticipate higher revenues and higher income for third consecutive year.

  • Revenues and income from private equity investment activities to rise even higher.
  • Aircraft asset management trends should remain favorable.
  • Impact from pandemic should lessen for Moominvalley Park. Revenues should increase, paralleling increase in number of visitors. Loss position should continue to improve.
  • Rights and Brands Japan (RBJ) will fall outside scope of consolidation, mainly due to change in shareholder composition.
    Profits or losses associated with RBJ's licensing business will be booked as investment profits or losses based on equity method, and are unlikely to have impact on final profit.

Copyright© FinTech Global Incorporated

2

The firm of innovative financing

Fiscal 2022: Full-Year Performance

and Business Summary

Copyright© FinTech Global Incorporated

3

Consolidated Performance

Results greatly exceeded initial estimates, with higher revenues and higher income.

(Millions of yen)

Fiscal 2021

Fiscal 2022

YOY Change

YOY Change

（Amount）

(Percentage)

Revenues

8,107

9,301

1,194

+14.7%

Gross profit

3,370

3,990

619

+18.4%

Operating income

178

587

409

+230.0%

Ordinary profit

115

540

425

+366.9%

Profit attributable

130

176

45

+34.6%

to owners of the parent

Fiscal 2022

Actual Change

(Forecast)

vs Forecast

8,000

+16.3%

－

－

450

+30.6%

300

+80.3%

100

+76.1%

EBITDA

817

1,153

335

+41.1%

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 operating income.

Impact from application of accounting standard for revenue recognition

Some Metsä-related merchandise sales were initially procured on consignment, so revenues and cost of revenues are reduced by ¥83 million, respectively. There is no impact on gross profit, operating income, ordinary profit or net income before taxes.

Revenues

Gross profit

Operating income

Profit attributable to owners of the parent

Revenues up in all segments, supporting year-on-year increase of 14.7%. (External revenues: Increases of ¥898 million in investment banking business, ¥105 million in public management consulting business, and ¥190 million in entertainment service business)

Gross profit up 18.4% year on year, driven by higher revenues in investment banking business and reduced costs in Metsä operations.

Despite lower Metsä expenses, selling, general and administrative expenses rose 6.6% due to wider activity in other businesses. Operating income jumped 230%, reflecting increase in gross profit.

Posted profit attributable to non-controllinginterests-a rebound of ¥358 million from the loss position in fiscal 2021-largely due to loss reduction at Moomin Monogatari. This had a negative effect on profit attributable to owners of the parent, but FGI still booked a 34.6% increase.

Copyright© FinTech Global Incorporated

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FGI - FinTech Global Inc. published this content on 01 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2022 08:03:07 UTC.