FinTech Global Incorporated : Summary of Financial Statements for the First Two Quarters of Fiscal 2021

UNOFFICIAL TRANSLATION

The following is a translation, for convenience only,

of the original document issued in Japanese

Summary of Financial Statements

for the First Two Quarters of Fiscal 2021

		May 12, 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: May 14, 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

(Rounded down to the nearest million)

1. Consolidated results for the first two quarters of fiscal 2021 (October 1, 2020 -March 31, 2021)

(1) Consolidated operating results				（Percentages indicate	year-on-year changes.）
		Revenues		Operating		Ordinary		Profit/(loss) attributable to
			income/(loss)		profit/(loss)			owners of the parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%
First two quarters of fiscal 2021		4,874	14.2	840	-	831	-		618	-
First two quarters of fiscal 2020		4,269	30.3	(495)	-	(560)	-		(581)	-

(For reference) Comprehensive income:	651 million yen for the first two quarters of fiscal 2021	(－)%
		(660) million yen for the first two quarters of fiscal 2020	(－)%
	Net income/(loss)	Net income/(loss)
	per share
		per share
		(diluted)
		Yen	Yen
First two quarters of fiscal 2021		3.07	3.07
First two quarters of fiscal 2020		(2.89)	-

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
First two quarters of fiscal 2021	17,430	7,800	39.1
Fiscal 2020	16,583	7,304	37.7

(For reference) Shareholders' equity: 6,810 million yen for the first two quarters 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	－	0.00
Fiscal 2021 (Forecast)			－	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

4. 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 two quarters of fiscal 2021
	201,114,600 shares in fiscal 2020
2. Number of shares of treasury stock:	－ shares for the first two quarters of fiscal 2021
3. Average number of shares issued during the first two quarters:	－ shares for fiscal 2020
	201,115,303 shares in the first two quarters of fiscal 2021
	201,113,146 shares in the first two quarters 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 Six months ended March 31, 2021

(1) Quarterly Consolidated Balance Sheets

				(Unit: Thousands of yen)
				First two Quarters
			Fiscal 2020	of Fiscal 2021
			(As of September 30, 2020)	(As of March 31, 2021)
	Assets
	Current assets
	Cash and time deposits		2,162,069	2,598,908
	Accounts receivable, trade	564,724	1,234,217
	Investments in securities, trade		1,128,045	1,228,973
	Loans receivable, trade	514,798	471,584
	Real estate for sale		3,999,865	3,999,865
	Merchandise	257,591	210,423
	Other		272,878	332,821
	Allowance for doubtful accounts	(96,718)	(102,095)
	Total current assets		8,803,255	9,974,699
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures	5,372,766	5,383,803
	Accumulated depreciation		(327,629)	(425,345)
	Buildings and structures, net		5,045,136	4,958,457
	Other		1,660,769	1,496,988
	Total property, plant and equipment		6,705,906	6,455,446
	Intangible fixed assets
	Goodwill	137,969	134,757
	Other		462,787	464,295
	Total intangible fixed assets		600,756	599,053
	Investments and other assets
	Investment securities	145,711	72,307
	Long-term loans receivable		41,668	37,502
	Deferred tax assets	9,033	11,895
	Other		277,438	279,283
	Allowance for doubtful accounts	(220)	(78)
	Total investments and other assets		473,630	400,909
	Total noncurrent assets		7,780,293	7,455,408
	Total assets		16,583,548	17,430,107

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				(Unit: Thousands of yen)
				First two Quarters
			Fiscal 2020	of Fiscal 2021
			(As of September 30, 2020)	(As of March 31, 2021)
	Liabilities
	Current liabilities
	Accounts payable, trade		109,597	185,123
	Short-term loans payable	69,701	26,800
	Current portion of long-term loans payable		615,111	576,945
	Income taxes payable	97,250	229,136
	Lease obligations		222,578	226,445
	Accrued employee bonuses	130,666	122,344
	Other		1,088,523	1,470,439
	Total current liabilities		2,333,428	2,837,234
	Noncurrent liabilities
	Long-term loans payable	6,125,744	6,103,176
	Lease obligations		581,872	467,673
	Deferred tax liabilities	96,324	77,417
	Retirement benefit		108,259	110,883
	Other	33,536	33,536
	Total noncurrent liabilities		6,945,738	6,792,687
	Total liabilities		9,279,166	9,629,922
	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)	(4,632,579)
	Total shareholders' equity		6,294,416	6,824,069
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	(3,380)	4,608
	Foreign currency translation adjustment		(32,833)	(18,636)
	Total accumulated other comprehensive income		(36,213)	(14,028)
	Stock acquisition rights		64,045	60,904
	Non-controlling interests	982,133	929,239
	Total net assets		7,304,381	7,800,185
	Total liabilities and net assets		16,583,548	17,430,107

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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 two Quarters	First two Quarters
			of Fiscal 2020	of Fiscal 2021
			(From October 1, 2019	(From October 1, 2020
			to March 31, 2020)	to March 31, 2021)
	Revenues		4,269,822	4,874,665
	Cost of revenues	2,968,595	2,490,402
	Gross profit		1,301,227	2,384,262
	Selling, general and administrative expenses		1,796,335	1,543,450
	Operating income/(loss)		(495,107)	840,812
	Non-operating income
	Interest income		521	460
	Foreign exchange gains	6,985	－
	Share of profit of entities accounted for using equity method		－	9,664
	Subsidy income		－	53,425
	Other		1	2,231
	Total non-operating income		7,508	65,780
	Non-operating expenses
	Interest expense	68,823	58,369
	Share of loss of entities accounted for using equity method		2,085	－
	Foreign exchange losses		－	15,521
	Commission paid		1,500	546
	Other	363	989
	Total non-operating expenses		72,772	75,426
	Ordinary profit/(loss)		(560,371)	831,166
	Extraordinary income
	Gain on sales of non-current assets	1,185	－
	Gain on reversal of stock acquisition rights		4,486	3,108
	Other		－	14
	Total extraordinary income		5,672	3,123
	Extraordinary losses
	Loss on retirement of non-current assets		899	801
	Loss on valuation of investments in capital	2,140	－
	Loss on temporary closure		71,787	－
	Loss on valuation of shares of subsidiaries and associates		－	320
	Total extraordinary loss		74,827	1,122
	Income/(Loss) before income taxes		(629,526)	833,168
	Income taxes (current)		55,223	235,203
	Income taxes (deferred)	(29,347)	(22,019)
	Total income taxes		25,875	213,183
	Profit/(Loss)		(655,401)	619,984
	Profit/(Loss) attributable to non-controlling interests		(73,870)	1,690
	Profit/(Loss) attributable to owners of the parent		(581,531)	618,293

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