FinTech Global Incorporated : Summary of Financial Statements for Fiscal 2022 (under Japanese GAAP)(Update to Completed…

UNOFFICIAL TRANSLATION

The following is a translation, for convenience only,

of the original document issued in Japanese

Summary of Financial Statements for Fiscal 2022

		November 8, 2022
Company Name: FinTech Global Incorporated	(Code Number: 8789 Tokyo Stock Exchange)
	(URL:https://www.fgi.co.jp/en/)	TEL: [phone]
Representative:	President and Chief Executive Officer	Name: Nobumitsu Tamai
Contact:	Director, Senior Executive Officer	Name: Takashi Senda
Scheduled date of General Shareholders' Meeting: December 22, 2022
Scheduled date to submit securities report: December 23, 2022
Preparation of supplementary materials on financial results:	Yes
Holding of financial results meeting:	None
		(Rounded down to the nearest million)

1. Consolidated operating results, financial position and cash flows for fiscal 2022 (October 1, 2021- September 30, 2022)

(1) Consolidated operating results										(Percentages	indicate	year-on-year	changes.)
		Revenues	Operating income			Ordinary profit			Profit attributable to
						owners of the parent
		Millions of yen		%	Millions of yen		%	Millions of yen			%	Millions of yen	%
	Fiscal 2022	9,301		14.7	587			230.0				540		366.9			176	34.6
	Fiscal 2021	8,107		18.5	178			－				115			－			130	－
(For reference) Comprehensive income:				514 million yen for fiscal 2022	(580.0%)
						75 million yen for fiscal 2021	(－%)
		Net income		Net income		Return on equity		Return on assets		Return on sales
			per share
		per share					(ROE)				(ROA)				(ROS)
					(diluted)
			Yen		Yen					%						%		%
	Fiscal 2022		0.88		0.87						2.7						3.1		6.3
	Fiscal 2021		0.65		0.65						2.1						0.7		2.2
(For reference) Share of profit of entities accounted for using equity method:	9 million yen for fiscal 2022
									6 million yen for fiscal 2021
(2) Consolidated financial position
		Total assets	Net assets				Equity ratio						Net assets
										per share
		Millions of yen	Millions of yen								%					Yen
	Fiscal 2022		17,933				7,842								36.7					32.72
	Fiscal 2021		16,457				7,439								38.5					31.47
(For reference) Shareholders' equity:		6,585 million yen for fiscal 2022
				6,328 million yen for fiscal 2021
(3) Consolidated cash flows																		(Unit: Millions of yen)
		Cash flows from operating	Cash flows from investing		Cash flows from		Cash and cash equivalents
		activities	activities				financing activities			at the end of the period
	Fiscal 2022		(701)				(141)								802					2,375
	Fiscal 2021		747				(173)								(360)					2,379

- 1 -

2. Dividends

Dividends per share

Dividends on

Total dividends

Payout ratio

equity

End of

End of

End of

End of

first

second

third

fiscal

Total

(Annual)

(Consolidated)

(DOE)

quarter

quarter

quarter

year

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

Fiscal 2021

－

0.00

－

0.00

0.00

-

－

－

Fiscal 2022

－

0.00

－

0.00

0.00

-

－

－

Fiscal 2023

－

0.00

－

－

－

－

(Forecast)

(Note) Year-end dividend forecast for the fiscal year ending September 30, 2023 has not been made.

3. Consolidated financial forecasts for fiscal 2023 (October 1, 2022 - September 30, 2023)

(Percentages indicate year-on-year changes.)

Revenues

Operating income

Ordinary profit

Profit/(loss) attributable to

E.P.S.

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Fiscal 2023

10,100

8.6

1,400

138.2

1,400

158.8

1,000

467.8

4.97

(Note) Forecast for the first two quarters of fiscal year ending September 30, 2023 has not been made.

*Notes

1. Changes in significant subsidiaries during the period (Changes in specified subsidiaries accompanying change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatements:

(a). Changes in accounting policies required by accounting standard: Yes

(b). Changes other than those in (a) above: None

(c). Changes in accounting estimates: None

(d). Restatements: None

(3) Number of shares issued (common shares)
1.	Number of shares issued (including treasury stock):	201,295,200 shares for fiscal 2022
		201,115,600 shares for fiscal 2021
2.	Number of shares of treasury stock:	20 shares for fiscal 2022
		－ shares for fiscal 2021
3.	Average number of shares issued during the period	201,254,579 shares for fiscal 2022
		201,115,452 shares for fiscal 2021

- 2 -

(For reference) Summary of non-consolidated operating results and financial position

1. Non-consolidated operating results and financial position for fiscal 2022 (October 1, 2021 - September 30, 2022)

(1) Non-consolidated operating results					(Percentages indicate year-on-year changes.)
	Revenues			Operating income	Ordinary profit	Net income/(loss)
	Millions of yen		%	Millions of yen	%	Millions of yen	%		Millions of yen	%
Fiscal 2022	1,678		(5.9)		5	(98.3)	(440)	－	(389)	－
Fiscal 2021	1,782		62.2		321	－	134	－	(238)	－
	Net income/(loss)		Net income
		per share
	per share
			(diluted)
			Yen			Yen
Fiscal 2022			(1.94)			－
Fiscal 2021			(1.19)			－
(2) Non-consolidated financial position
	Total assets		Net assets		Equity ratio			Net assets per share
	Millions of yen		Millions of yen	%			Yen
Fiscal 2022			8,204		5,463		65.9			26.86
Fiscal 2021			8,575		5,812		67.0			28.59

(For reference) Shareholders' equity: 5,406 million yen for fiscal 2022, and 5,749 million yen for fiscal 2021

• This summary of financial statements is exempt from the audit procedures.
• Explanation of the appropriate use of performance forecasts and other related items.

The forward-looking statements included in this summary of financial statements are based on the assumptions, forecasts, and plans of the Company as of the date on which this document is made public. The Company's actual results may differ substantially from such statements due to various risks and uncertainties.

- 3 -

1. Qualitative Information on Consolidated Operating Results and Financial Position

(1) Consolidated Operating Results

In fiscal 2022-the consolidated accounting period for FinTech Global Incorporated (FGI), ended September 30, 2022- the investment banking business pushed forward on the formation of deals to further accelerate private equity investment addressing such issues as business succession. In the entertainment service business, steps were taken to update facilities at Moominvalley Park and reinforce the operating structure in meet an anticipated increase in guests as society moves into with-COVID and post-COVID times. In addition, in licensing activities, the handling volume of Moomin merchandise by licensees continued to increase, but an emphasis was placed on establishing a foundation for growth that would fuel greater expansion and on marketing activities.

Solid consolidated business performance hinged on the investment banking business, with brisk progress on the formation of private equity investment deals, execution of investment and exit activity, as well as on favorable aircraft asset management status and an increase in asset investment exits. These results underpinned revenues of ¥9,301 million, up 14.7% year on year. Gross profit climbed 18.4%, to ¥3,990 million, reflecting the higher revenue starting point and cost reduction in Metsä operations. Selling, general and administrative expenses rose 6.6%, to ¥3,402 million, mainly due to an increase in staffing and greater outsourcing of office work in line with business expansion. Nevertheless, driven by the improvement in gross profit, operating income jumped 230.0%, to ¥587 million, ordinary profit soared 366.9%, to ¥540 million, and profit attributable to owners of the parent grew 34.6%, to ¥176 million.

Of note, revenues and cost of revenues each decreased by ¥83 million, because of a change in accounting treatment method following application of "Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No.29, March 31, 2020), but gross profit, operating income, ordinary profit and income before income taxes have not been affected by the change in accounting treatment.

		(Unit: Millions of yen)
	Fiscal 2021	Fiscal 2022	YOY
	Change
Revenues	8,107	9,301	1,194
Investment banking business	4,061	4,973	912
Public management consulting	242	346	103
business
Entertainment service business	4,106	4,285	179
Elimination	(303)	(303)	(0)
Gross profit	3,370	3,990	619
Investment banking business	2,725	2,951	225
Public management consulting	148	189	41
business
Entertainment service business	632	975	343
Elimination	(136)	(126)	9
Operating income / (loss)	178	587	409
[Segment income / (loss)]
Investment banking business	1,303	1,180	(122)
Public management consulting	(3)	(14)	(11)
business
Entertainment service business	(501)	(34)	467
Elimination or corporate expenses	(619)	(543)	76

- 4 -

	Fiscal 2021	Fiscal 2022	YOY
	Change
Ordinary profit	115	540	425
Income before income taxes	118	556	437
Profit attributable to owners of the	130	176	45
parent

A breakdown of performance by business segment is presented below. Revenues include inter-segment revenues and transfers.

a. Investment Banking Business

In the investment banking business, inquiries for private equity investment continued, and the segment saw brisk progress on the formation of private equity investment deals, execution of investment and subsequent exit, as well as exits on asset investments. In asset management activities, several new requests were received with an emphasis on investment in residences and renewable energy facilities, contributing to revenues. Consequently, the balance of assets under management rose 118.8% over the level recorded at the end of fiscal 2021, on September 30, 2021, to ¥56.1 billion, and the foundation for stock-typeearnings-that is, recurring fee revenues-was reinforced. In addition, in aircraft asset management services, requests for aircraft inspections and technical services that accompany return of aircraft and other situations remained brisk as a consequence of the pandemic. Reliance on outsourcing grew to meet increasing inquiries and to meet demand for services.

Given the above, the investment banking business posted revenues of ¥4,973 million, climbing 22.5% year on year. But segment income slipped 9.4%, to ¥1,180 million, owing to an increase in cost of revenues paralleling higher revenues, primarily from asset investment and aircraft asset management, as well as costs associated with an increase in staffing.

b. Public Management Consulting Business

In the public management consulting business, which hinges on Public Management Consulting Corporation, the marketing push begun in fiscal 2021 to help large local governments in particular with preparation of financial documents continued, with the number of requests for contract services from prefectures to create financial documents and build better fixed asset ledgers increasing by four, to seven, in the current fiscal year for prefectures that runs from April 2021 through March 2022 compared with the local governments' previous fiscal year (April 2020-March 2021). In addition, the Ministry of Internal Affairs and Communications asked local public entities in January 2021 to execute a review of their general management plans, including those for public facilities, and Public Management Consulting vigorously pushed ahead on marketing activities related to services that would help local governments execute these reviews. As a result, the company has made strides in cultivating new clients for services, with a cumulative total of 385 contracted clients in fiscal 2021, up 27 from fiscal 2020, and an additional nine clients added so far in fiscal 2023, which for Public Management Consulting began in April 2022, for a current total of 394 contracted clients.

Reflecting these factors, the segment achieved revenues of ¥346 million, skyrocketing 42.8% year on year. But due to higher outsourcing costs, the segment suffered a loss of ¥14 million, deepening from the loss of ¥3 million recorded a year ago.

c. Entertainment Service Business

In Metsä operations, remodeling work under a new theme-"Well-being"-commenced in late- November and early-December 2021 to reimagine content and services geared to the needs of guests to Moominvalley Park. Through this, the site switched to an operating format matched to the needs of guests seeking a place of nature, healing and relaxation, and shifted to a fee structure that is easier-to-understand,

- 5 -