FinTech Global Incorporated : Summary of Financial Statements for the First Two Quarters of Fiscal 2023 (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 Two Quarters of Fiscal 2023

		May 10, 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: May 12, 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 two quarters of fiscal 2023 (October 1, 2022 - March 31, 2023)

(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 two quarters of fiscal 2023		4,530	2.5	645		-	628		-	477		-
First two quarters of fiscal 2022		4,421	(9.3)	(39)		-	(51)		-	(203)		-
(For reference) Comprehensive income:	654 million yen for the first two quarters of fiscal 2023	(－%)
			(84) million yen for the first two quarters of fiscal 2022	(－%)
		Net income/(loss)	Net income
		per share
		per share
		(diluted)
			Yen			Yen
First two quarters of fiscal 2023			2.37			2.36
First two quarters of fiscal 2022			(1.01)			-
(2) Consolidated financial position
		Total assets	Net assets		Equity ratio
		Millions of yen	Millions of yen			%
First two quarters of fiscal 2023			18,341			8,251	38.6
Fiscal 2022			17,933			7,842	36.7
(For reference) Shareholders' equity:		7,080 million yen for the first two quarters of fiscal 2023
			6,585 million yen for fiscal 2022

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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 2022	－	0.00	－	0.00	0.00
Fiscal 2023	－	0.00
Fiscal 2023 (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

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

*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

Note: For details, please refer to " Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly Consolidated Financial Statements (Change in accounting policies)".

1. Number of shares issued (common shares)
2. 1. Number of shares issued (including treasury stock):
   2. Number of shares of treasury stock:
   3. Average number of shares issued during the first two quarters:

* This summary of financial statements is exempt from the review procedures.

201,305,200 shares for the first two quarters of fiscal 2023 201,295,200 shares for fiscal 2022

20 shares for the first two quarters of fiscal 2023 20 shares for fiscal 2022

201,301,966 shares for the first two quarters of fiscal 2023 201,213,740 shares for the first two quarters of fiscal 2022

* 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)
				First Two Quarters
			Fiscal 2022	of Fiscal 2023
			(As of September 30, 2022)	(As of March 31, 2023)
	Assets
	Current assets
	Cash and deposits		2,375,927	1,747,229
	Accounts receivable - trade, and contract assets	1,113,702	1,073,142
	Operational investment securities		2,482,469	3,303,117
	Loans receivable, trade	371,665	353,265
	Real estate for sale		4,057,167	4,057,167
	Merchandise	133,602	134,539
	Other		593,045	677,494
	Allowance for doubtful accounts	(104,772)	(104,969)
	Total current assets		11,022,806	11,240,986
	Noncurrent assets
	Property, plant and equipment
	Buildings and structures	5,390,285	5,374,165
	Accumulated depreciation		(717,453)	(804,788)
	Buildings and structures, net		4,672,832	4,569,377
	Other		1,205,951	1,135,429
	Total property, plant and equipment		5,878,784	5,704,807
	Intangible fixed assets
	Goodwill	117,736	105,619
	Other		514,765	41,434
	Total intangible fixed assets		632,501	147,054
	Investments and other assets
	Investments in securities	105,581	822,972
	Long-term loans receivable		35,004	30,838
	Deferred tax assets	11,364	98,679
	Other		257,016	306,185
	Allowance for doubtful accounts	(10,047)	(10,037)
	Total investments and other assets		398,918	1,248,638
	Total noncurrent assets		6,910,204	7,100,500
	Total assets		17,933,011	18,341,487

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				(Unit: Thousands of yen)
				First Two Quarters
			Fiscal 2022	of Fiscal 2023
			(As of September 30, 2022)	(As of March 31, 2023)
	Liabilities
	Current liabilities
	Accounts payable, trade		248,274	448,887
	Short-term loans payable		－	52,500
	Current portion of long-term loans payable		529,252	756,067
	Income taxes payable	133,150	116,079
	Lease obligations		260,095	256,075
	Provision for bonuses	191,888	179,888
	Other		1,225,164	831,423
	Total current liabilities		2,587,825	2,640,922
	Noncurrent liabilities
	Long-term loans payable	7,184,342	6,849,561
	Lease obligations		158,022	73,555
	Deferred tax liabilities	19,737	106,460
	Retirement benefit liability		110,067	119,370
	Other	30,322	300,062
	Total noncurrent liabilities		7,502,492	7,449,010
	Total liabilities		10,090,317	10,089,932
	Net assets
	Shareholders' equity
	Common stock		6,471,266	5,372,574
	Capital surplus	4,996,716	960,465
	Retained earnings		(4,943,941)	668,910
	Treasury shares	(0)	(0)
	Total shareholders' equity		6,524,040	7,001,949
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities		35,680	55,439
	Foreign currency translation adjustment	26,158	23,060
	Total accumulated other comprehensive income		61,839	78,499
	Stock acquisition rights		56,359	74,387
	Non-controlling interests		1,200,454	1,096,717
	Total net assets		7,842,693	8,251,554
	Total liabilities and net assets		17,933,011	18,341,487

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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 2022	of Fiscal 2023
			(From October 1, 2021	(From October 1, 2022
			to March 31, 2022)	to March 31, 2023)
	Revenues		4,421,191		4,530,710
	Cost of revenues	2,811,670		2,149,152
	Gross profit		1,609,521		2,381,557
	Selling, general and administrative expenses		1,649,476		1,735,569
	Operating income/(loss)		(39,955)		645,988
	Non-operating income
	Interest income		516		1,915
	Foreign exchange gains	11,629		－
	Share of profit of entities accounted for using equity method		9,563		41,510
	Subsidy income	34,051		26,769
	Other		3,196		1,656
	Total non-operating income		58,957		71,852
	Non-operating expenses
	Interest expense	59,120		64,973
	Foreign exchange losses		－		18,133
	Provision of allowance for doubtful accounts	9,627		1,438
	Other		2,055		4,914
	Total non-operating expenses		70,804		89,460
	Ordinary profit/(loss)		(51,802)		628,380
	Extraordinary income
	Gain on bargain purchase		－		190,025
	Gain on reversal of stock acquisition rights	15,691		273
	Other		－		96
	Total extraordinary income		15,691		190,394
	Extraordinary losses
	Loss on valuation of investments in capital of subsidiaries	999		－
	and associates
	Loss on retirement of noncurrent assets		－		32,369
	Loss on liquidation of subsidiaries and associates	362		－
	Total extraordinary loss		1,362		32,369
	Income/(Loss) before income taxes		(37,473)	786,406
	Income taxes (current)		89,868		146,439
	Income taxes (deferred)	(46,958)	－
	Total income taxes		42,909		146,439
	Profit/(Loss)		(80,383)	639,967
	Profit attributable to non-controlling interests		122,724		162,534
	Profit/(Loss) attributable to owners of the parent		(203,107)	477,432

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