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

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 equity

Total dividends

Payout ratio

End of

End of

End of

End of

(DOE)

first

second

third

fiscal

Total

(Annual)

(Consolidated)

(Consolidated)

quarter

quarter

quarter

year

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

1400

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 -

Consolidated Financial Statements

(1) Consolidated Balance Sheets

				(Unit: Thousands of yen)
			Fiscal 2021	Fiscal 2022
			(As of September 30, 2021)	(As of September 30, 2022)
	Assets
	Current assets
	Cash and time deposits		2,379,230	2,375,927
	Accounts receivable, trade	753,826	－
	Accounts receivable - trade, and contract assets		－	1,113,702
	Operational investment securities	1,042,651	2,482,469
	Loans receivable, trade		455,415	371,665
	Real estate for sale	4,038,343	4,057,167
	Merchandise		192,176	133,602
	Other	398,443	593,045
	Allowance for doubtful accounts		(92,518)	(104,772)
	Total current assets	9,167,569	11,022,806
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures		5,380,820	5,390,285
	Accumulated depreciation	(522,495)	(717,453)
	Buildings and structures, net		4,858,325	4,672,832
	Tools, furniture and fixtures	2,165,354	2,190,354
	Accumulated depreciation		(1,330,864)	(1,599,018)
	Tools, furniture and fixtures, net	834,490	591,335
	Land		519,734	519,734
	Construction in progress	300	300
	Other		107,363	139,565
	Accumulated depreciation	(21,107)	(44,984)
	Other, net		86,255	94,581
	Total property, plant and equipment	6,299,105	5,878,784
	Intangible fixed assets
	Goodwill	129,334	117,736
	Other		486,976	514,765
	Total intangible fixed assets	616,310	632,501
	Investments and other assets
	Investments in securities	65,865	105,581
	Long-term loans receivable		33,336	35,004
	Deferred tax assets	8,445	11,364
	Other		267,025	257,016
	Allowance for doubtful accounts	(70)	(10,047)
	Total investments and other assets		374,602	398,918
	Total noncurrent assets	7,290,019	6,910,204
	Total assets		16,457,588	17,933,011

- 4 -

				(Unit: Thousands of yen)
			Fiscal 2021	Fiscal 2022
			(As of September 30, 2021)	(As of September 30, 2022)
	Liabilities
	Current liabilities
	Accounts payable, trade		130,687	248,274
	Short-term loans payable	125,600	－
	Current portion of long-term loans payable		393,194	529,252
	Lease obligations	247,203	260,095
	Income taxes payable		75,228	133,150
	Accrued employee bonuses	146,703	191,888
	Other		1,273,293	1,225,164
	Total current liabilities	2,391,910	2,587,825
	Noncurrent liabilities
	Long-term loans payable	6,041,300	7,184,342
	Lease obligations		388,207	158,022
	Deferred tax liabilities	64,885	19,737
	Net defined benefit liability		99,040	110,067
	Other	33,122	30,322
	Total noncurrent liabilities		6,626,556	7,502,492
	Total liabilities	9,018,467	10,090,317
	Net assets
	Shareholders' equity
	Common stock		6,462,099	6,471,266
	Additional paid-in capital	4,987,549	4,996,716
	Retained earnings		(5,120,066)	(4,943,941)
	Treasury shares	－	(0)
	Total shareholders' equity		6,329,582	6,524,040
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities		6,249	35,680
	Foreign currency translation adjustment	(7,167)	26,158
	Total accumulated other comprehensive income		(918)	61,839
	Stock acquisition rights	78,503	56,359
	Non-controlling interests		1,031,953	1,200,454
	Total net assets	7,439,120	7,842,693
	Total liabilities and net assets		16,457,588	17,933,011

- 5 -