FinTech Global Incorporated : Summary of Financial Statements for the First Quarter of Fiscal 2023（under Japanese GAAP…

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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 2023

		February 9, 2023
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 for filing of securities report: February 13, 2023
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
		(Rounded down to the nearest million)

1. Consolidated results for the first quarter of fiscal 2023 (October 1, 2022 - December 31, 2022)

(1) Consolidated operating results

(Percentages indicate year-on-year changes.)

Revenues

Operating income

Ordinary profit

Profit/(loss) attributable to

owners of the parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

First quarter of fiscal 2023

2,716

19.5

720

－

699

－

503

－

First quarter of fiscal 2022

2,272

12.5

62

18.3

39

328.0

(47)

－

(For reference) Comprehensive income:

556 million yen for the first quarter of fiscal 2023

(－%)

8 million yen for the first quarter of fiscal 2022

(－%)

Net income/(loss)

Net income

per share

per share

(diluted)

Yen

Yen

First quarter of fiscal 2023

2.50

2.49

First quarter of fiscal 2022

(0.24)

－

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

First quarter of fiscal 2023

17,531

7,905

40.3

Fiscal 2022

17,933

7,842

36.7

(For reference) Shareholders' equity:

7,064 million yen for the first quarter of fiscal 2023

6,585 million yen for fiscal 2022

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201,305,200 shares for the first quarter of fiscal 2023

201,295,200 shares for fiscal 2022

20 shares for the first quarter of fiscal 2023

20 shares for fiscal 2022

201,298,821 shares for the first quarter of fiscal 2023

201,134,050 shares for the first quarter of fiscal 2022

2. Dividends

			Dividends 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 2022	－	0.00	－	0.00	0.00
Fiscal 2023	－
Fiscal 2023		0.00	－	－	－
(Forecast)
(Notes)

1. Change from the latest dividend forecast: None
2. Year-enddividend 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 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
(Notes)

1. Change from the latest consolidated financial forecasts: None
2. 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. 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: Yes

(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):

2. Number of shares of treasury stock:

3. Average number of shares issued during the first quarter:

• 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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Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheets

				(Unit: Thousands of yen)
			Fiscal 2022	First Quarter of Fiscal 2023
			(As of September 30, 2022)	(As of December 31, 2022)
	Assets
	Current assets
	Cash and time deposits		2,375,927	1,813,984
	Accounts receivable - trade, and contract assets	1,113,702	1,117,632
	Operational investment securities		2,482,469	2,850,721
	Loans receivable, trade	371,665	356,715
	Real estate for sale		4,057,167	4,057,167
	Merchandise	133,602	151,060
	Other		593,045	535,425
	Allowance for doubtful accounts	(104,772)	(107,313)
	Total current assets		11,022,806	10,775,394
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures	5,390,285	5,390,760
	Accumulated depreciation		(717,453)	(764,036)
	Buildings and structures, net		4,672,832	4,626,723
	Other		1,205,951	1,162,295
	Total property, plant and equipment		5,878,784	5,789,018
	Intangible fixed assets
	Goodwill	117,736	111,870
	Other		514,765	44,996
	Total intangible fixed assets		632,501	156,866
	Investments and other assets
	Investments in securities	105,581	536,689
	Long-term loans receivable		35,004	32,921
	Deferred tax assets	11,364	－
	Other		257,016	250,704
	Allowance for doubtful accounts	(10,047)	(10,041)
	Total investments and other assets		398,918	810,273
	Total noncurrent assets		6,910,204	6,756,158
	Total assets		17,933,011	17,531,553

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				(Unit: Thousands of yen)
			Fiscal 2022	First Quarter of Fiscal 2023
			(As of September 30, 2022)	(As of December 31, 2022)
	Liabilities
	Current liabilities
	Accounts payable, trade		248,274	531,049
	Current portion of long-term loans payable	529,252	444,663
	Income taxes payable		133,150	92,891
	Lease obligations	260,095	262,506
	Accrued employee bonuses		191,888	168,711
	Other	1,225,164	798,330
	Total current liabilities		2,587,825	2,298,151
	Noncurrent liabilities
	Long-term loans payable		7,184,342	7,065,123
	Lease obligations	158,022	97,848
	Deferred tax liabilities		19,737	17,657
	Net defined benefit liability	110,067	112,987
	Other		30,322	34,655
	Total noncurrent liabilities		7,502,492	7,328,271
	Total liabilities		10,090,317	9,626,422
Net assets
	Shareholders' equity
	Common stock	6,471,266	6,471,504
	Additional paid-in capital		4,996,716	4,996,954
	Retained earnings	(4,943,941)	(4,440,516)
	Treasury shares		(0)	(0)
	Total shareholders' equity		6,524,040	7,027,941
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	35,680	9,734
	Foreign currency translation adjustment		26,158	26,694
	Total accumulated other comprehensive income		61,839	36,428
	Stock acquisition rights		56,359	57,220
	Non-controlling interests	1,200,454	783,540
	Total net assets		7,842,693	7,905,130
Total liabilities and net assets		17,933,011	17,531,553

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1. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income

			(Unit: Thousands of yen)
		First Quarter of Fiscal 2022	First Quarter of Fiscal 2023
		(From October 1, 2021	(From October 1, 2022
		to December 31, 2021)	to December 31, 2022)
Revenues		2,272,272	2,716,112
Cost of revenues	1,375,010	1,118,382
Gross profit		897,261	1,597,730
Selling, general and administrative expenses		834,437	877,310
Operating income		62,824	720,419

Non-operating income

Interest income

Share of profit of entities accounted for using equity method Subsidy income

Other

Total non-operating income

Non-operating expenses

Interest expense

Share of loss of entities accounted for using equity method Other

Total non-operating expenses

Ordinary profit

Extraordinary income

	243		321
	－	10,440
	4,421		78
	3,390	2,146
	8,055		12,986
	29,906		32,845
	315	－
	1,201		699
	31,422	33,545
	39,457		699,860

	Gain on liquidation of subsidiaries and associates			－		96
	Gain on reversal of stock acquisition rights	91	273
	Total extraordinary income			91		369
Extraordinary losses
	Loss on valuation of investments in capital of subsidiaries			999		－
	and associates
	Loss on retirement of noncurrent assets			－	15,673
	Total extraordinary loss			999		15,673
Income before income taxes		38,548	684,556
	Income taxes (current)			38,947		103,338
Income taxes (deferred)	(13,569)	－
	Total income taxes			25,378		103,338
Profit		13,170	581,217
	Profit attributable to non-controlling interests			60,691		77,793
Profit (loss) attributable to owners of the parent		(47,521)	503,424

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