FinTech Global Incorporated : Summary of Financial Statements for the First Quarter of Fiscal 2021 (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 the First Quarter of Fiscal 2021

February 9, 2021

Company Name:

FinTech Global Incorporated

(Code Number: 8789 TSE 2nd Section)

(URL:http://www.fgi.co.jp/english/)

TEL: [phone]

Representative:

President and Chief Executive Officer

Name: Nobumitsu Tamai

Contact:

Executive Vice President, Senior Executive Officer

Name: Seigo Washimoto

Scheduled date for filing of securities report:

February 12, 2021

Scheduled date of commencement of dividend payment: －

Preparation of explanatory materials for quarterly financial results:

Yes

Information meetings arranged related to quarterly financial results:

None

1. Consolidated results for the first quarter of fiscal 2021

(Rounded down to the nearest million)

(October 1, 2020 - December 31, 2020)

(1) Consolidated operating results

（Percentages indicate year-on-year

changes.）

Revenues

Operating income/(loss)

Ordinary profit/(loss)

Profit/(loss) attributable to

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

First quarter of fiscal 2021

2,020

(8.6)

53

-

9

-

(63)

-

First quarter of fiscal 2020

2,209

116.6

(258)

-

(297)

-

(284)

-

(For reference) Comprehensive income:

0 million yen for the first quarter of fiscal 2021

(－)%

(313) million yen for the first quarter of fiscal 2020

(－)%

Net income/(loss)

Net income/(loss)

per share

per share

(diluted)

Yen

Yen

First quarter of fiscal 2021

(0.31)

-

First quarter of fiscal 2020

(1.42)

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

First quarter of fiscal 2021

16,759

7,199

36.5

Fiscal 2020

16,583

7,304

37.7

(For reference) Shareholders' equity:

6,112 million yen for the first quarter of fiscal 2021

6,258 million yen for fiscal 2020

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2. Dividends

			Dividend per share
	End of	End of	End of	End of	Total
	first quarter	second quarter	third quarter	fiscal year
	Yen	Yen	Yen	Yen	Yen
Fiscal 2020	－	0.00	－	0.00	0.00
Fiscal 2021	－
Fiscal 2021 (Forecast)		0.00	－	0.00	0.00

(Note) Change from the latest dividend forecast: None

3. Consolidated financial forecasts for fiscal 2021 (October 1, 2020 - September 30, 2021)

(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 2021	9,000	31.6	540	-	370	-	250	-	1.24

(Note) Change from the latest consolidated financial forecasts: None

Forecast for the first two quarters of fiscal year ending September 30, 2021 has not been made.

*Notes

1. Changes in significant subsidiaries during the period: None
2. Adoption of specific accounting policies for quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatements:

(a). Changes in accounting policies required by accounting standard: None

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

(c). Changes in accounting estimates: None

(d). Restatements: None

(4) Number of shares issued (common shares)
1. Number of shares issued (including treasury stock):	201,115,600 shares in the first quarter of fiscal 2021
	201,114,600 shares in fiscal 2020
2. Number of shares of treasury stock:	－ shares for the first quarter of fiscal 2021
	－ shares for fiscal 2020
3. Average number of shares issued during the first quarter:	201,115,013 shares in the first quarter of fiscal 2021
	201,111,709 shares in the first quarter of fiscal 2020

• This summary of financial statements is exempt from the review 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.

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FinTech Global Incorporated and Consolidated Subsidiaries

As of and for the three months ended December 31, 2020

(1) Quarterly Consolidated Balance Sheets

				(Unit: Thousands of yen)
			Fiscal 2020	First Quarter of Fiscal 2021
			(As of September 30, 2020)	(As of December 31, 2020)
	Assets
	Current assets
	Cash and time deposits		2,162,069	2,185,778
	Accounts receivable, trade	564,724	929,342
	Investments in securities, trade		1,128,045	1,122,760
	Loans receivable, trade	514,798	477,098
	Real estate for sale		3,999,865	3,999,865
	Merchandise	257,591	233,412
	Other		272,878	378,914
	Allowance for doubtful accounts	(96,718)	(117,309)
	Total current assets		8,803,255	9,209,862
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures	5,372,766	5,378,730
	Accumulated depreciation		(327,629)	(376,436)
	Buildings and structures, net		5,045,136	5,002,293
	Other		1,660,769	1,565,300
	Total property, plant and equipment		6,705,906	6,567,594
	Intangible fixed assets
	Goodwill	137,969	136,634
	Other		462,787	474,086
	Total intangible fixed assets		600,756	610,720
	Investments and other assets
	Investments in securities	145,711	59,410
	Long-term loans receivable		41,668	39,585
	Deferred tax assets	9,033	3,434
	Other		277,438	269,060
	Allowance for doubtful accounts	(220)	(83)
	Total investments and other assets		473,630	371,407
	Total noncurrent assets		7,780,293	7,549,722
	Total assets		16,583,548	16,759,584

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				(Unit: Thousands of yen)
			Fiscal 2020	First Quarter of Fiscal 2021
			(As of September 30, 2020)	(As of December 31, 2020)
	Liabilities
	Current liabilities
	Accounts payable, trade		109,597	294,162
	Short-term loans payable	69,701	26,800
	Current portion of long-term loans payable		615,111	547,517
	Income taxes payable	97,250	117,047
	Lease obligations		222,578	224,502
	Provision for bonuses	130,666	74,669
	Other		1,088,523	1,314,595
	Total current liabilities		2,333,428	2,599,294
	Noncurrent liabilities
	Long-term loans payable	6,125,744	6,204,710
	Lease obligations		581,872	525,019
	Deferred tax liabilities	96,324	84,664
	Retirement benefit liability		108,259	112,799
	Other	33,536	33,536
	Total noncurrent liabilities		6,945,738	6,960,731
	Total liabilities		9,279,166	9,560,025
	Net assets
	Shareholders' equity
	Common stock		6,462,062	6,462,099
	Additional paid-in capital	5,016,132	4,994,549
	Retained earnings		(5,183,778)	(5,313,894)
	Total shareholders' equity		6,294,416	6,142,754
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	(3,380)	(4,339)
	Foreign currency translation adjustment		(32,833)	(26,165)
	Total accumulated other comprehensive income		(36,213)	(30,504)
	Stock acquisition rights		64,045	60,981
	Non-controlling interests	982,133	1,026,327
	Total net assets		7,304,381	7,199,558
	Total liabilities and net assets		16,583,548	16,759,584

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