GREE : FY2022 4Q Summary of Consolidated Financial Statements PDF

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended June 30, 2022

(Based on Japanese GAAP)

																		August 4, 2022
Company name:	GREE, Inc.
Stock exchange listing:	Tokyo
Stock code:	3632	URL http://corp.gree.net/jp/ja/
Representative:	Founder, Chairman and CEO		Yoshikazu Tanaka
Inquiries:	Director, Senior Vice President, CFO	Toshiki Oya		TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	September 27, 2022
Scheduled date to file Securities Report:		September 28, 2022
Scheduled date to commence dividend payments:		September 5, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)
(1) Consolidated operating results												Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended June 30, 2022		74,906		18.5	11,498		5.9		14,106	27.1	10,121		(25.2)
Year ended June 30, 2021		63,210		-	10,861		-		11,098	-	13,533		-
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen				%					%				%
Year ended June 30, 2022		54.58		54.01				9.6					10.9				15.4
Year ended June 30, 2021		61.44		61.21				11.6					8.3				17.2
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%					Yen
As of June 30, 2022			116,730					90,930					77.4					521.76
As of June 30, 2021			141,389			120,212					84.6					567.43
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended June 30, 2022		13,218					(5,299)					(37,516)					66,624
Year ended June 30, 2021		6,846					4,217					(4,013)					94,824
2. Cash dividends
						Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
															to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen	%			%
Year ended June 30, 2021		-		0.00	-				12.50	12.50		2,636	20.3			2.4
Year ended June 30, 2022		-		0.00	-				11.00	11.00		1,905	20.2			2.0
Year ending June 30, 2023		-			-	-				-			-				-
(Forecast)

1

3. Notes

(1)	Changes in significant subsidiaries during the year ended June 30, 2022	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
	Changes in accounting policies due to other reasons:	Yes
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	179,749,700	shares	As of June 30, 2021	242,249,700	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	6,518,365	shares	As of June 30, 2021	31,347,425	shares
Average number of shares during the period
	Year ended June 30, 2022	185,437,620	shares	Year ended June 30, 2021	220,272,349	shares

2

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of June 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	94,824	54,624
Notes and accounts receivable - trade	6,997	-
Notes and accounts receivable - trade, and contract assets	-	7,754
Accounts receivable - other	2,260	1,567
Operational investment securities	21,951	22,215
Money held in trust	-	12,000
Other	4,999	2,044
Allowance for doubtful accounts	(12)	(3)
Total current assets	131,019	100,203
Non-current assets
Property, plant and equipment
Buildings	805	1,851
Tools, furniture and fixtures	309	509
Total property, plant and equipment	1,114	2,361
Intangible assets
Goodwill	82	-
Other	25	13
Total intangible assets	107	13
Investments and other assets
Investment securities	5,422	9,493
Deferred tax assets	278	716
Other	3,679	4,255
Allowance for doubtful accounts	(232)	(313)
Total investments and other assets	9,147	14,151
Total non-current assets	10,370	16,526
Total assets	141,389	116,730
Liabilities
Current liabilities
Income taxes payable	914	2,485
Provision for bonuses	795	850
Allowance for Relocation cost	176	16
Accounts payable - other	6,599	6,091
Contract liabilities	-	4,657
Other	3,140	1,873
Total current liabilities	11,626	15,975
Non-current liabilities
Bonds payable	8,000	8,000
Other	1,549	1,824
Total non-current liabilities	9,549	9,824
Total liabilities		21,176	25,800

3

			(Millions of yen)
		As of June 30, 2021	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	4,637	2,365
Retained earnings	125,674	86,320
Treasury shares	(18,414)	(3,690)
Total shareholders' equity	111,997	85,094
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	7,674	5,291
Total accumulated other comprehensive income	7,674	5,291
Share acquisition rights	492	490
Non-controlling interests	48	53
Total net assets	120,212	90,930
Total liabilities and net assets		141,389	116,730

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2021	June 30, 2022
Net sales	63,210	74,906
Cost of sales	25,632	30,054
Gross profit	37,577	44,852
Selling, general and administrative expenses	26,715	33,354
Operating profit	10,861	11,498
Non-operating income
Interest income	4	27
Dividend income	35	12
Foreign exchange gains	203	2,657
Other	90	52
Total non-operating income	334	2,751
Non-operating expenses
Interest expenses	31	51
Commission expenses	65	55
Loss on cancellation of leases	-	29
Other	0	6
Total non-operating expenses	96	142
Ordinary profit	11,098	14,106
Extraordinary income
Gain on sale of investment securities	2,880	10
Penalty income	-	754
Other	20	10
Total extraordinary income	2,901	775
Extraordinary losses
Loss on retirement of non-current assets	66	67
Impairment losses	13	36
Loss on valuation of investment securities	68	179
Provision of allowance for Relocation cost	186	-
Penalty fee	230	-
Other	35	-
Total extraordinary losses	601	283
Profit before income taxes	13,398	14,598
Income taxes - current	1,734	3,538
Income taxes - deferred	(1,866)	936
Total income taxes	(132)	4,474
Profit	13,530	10,124
Profit (loss) attributable to non-controlling interests	(3)	2
Profit attributable to owners of parent		13,533	10,121

5