GREE : FY2023 2Q Summary of Consolidated Financial Statements

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 Six Months Ended December 31, 2022 (Based on Japanese GAAP)

					February 8, 2023
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 to file Quarterly Securities Report:	February 8, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended December 31, 2022 (from July 1, 2022 to December 31, 2022)

(1) Consolidated operating results (cumulative)				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	%
Six months ended December 31, 2022	33,169	(0.0)	3,317	(18.7)	3,028	(31.3)	934	(74.4)
Six months ended December 31, 2021	33,184	2.9	4,078	(22.7)	4,408	(11.1)	3,654	(13.9)

	Earnings per share	Diluted earnings per share
	Yen		Yen
Six months ended December 31, 2022	5.42		5.36
Six months ended December 31, 2021	18.50		18.33
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of December 31, 2022	116,649		85,558	72.9
As of June 30, 2022	116,730		90,930	77.4

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended June 30, 2022	-	0.00	-	11.00
Year ending June 30, 2023	-	0.00
Year ending June 30, 2023 (Forecast)			-	-

Total

Yen 11.00

-

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3. Notes

1. Changes in significant subsidiaries during the six months ended December 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) 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:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of December 31, 2022	179,749,700	shares	As of June 30, 2022	179,749,700	shares
Number of treasury shares at the end of the period
	As of December 31, 2022	9,244,065	shares	As of June 30, 2022	6,518,365	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended December 31, 2022	172,594,022	shares	Six months ended December 31, 2021	197,562,484	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of June 30, 2022	As of December 31, 2022
Assets
Current assets
Cash and deposits	54,624	46,260
Notes and accounts receivable - trade, and contract assets	7,754	7,063
Accounts receivable - other	1,567	1,642
Operational investment securities	22,215	19,808
Money held in trust	12,000	24,000
Other	2,044	2,306
Allowance for doubtful accounts	(3)	(1)
Total current assets	100,203	101,080
Non-current assets
Property, plant and equipment	2,361	2,610
Intangible assets
Other	13	9
Total intangible assets	13	9
Investments and other assets
Investment securities	9,493	9,064
Deferred tax assets	716	866
Other	4,255	3,323
Allowance for doubtful accounts	(313)	(305)
Total investments and other assets	14,151	12,948
Total non-current assets	16,526	15,568
Total assets	116,730	116,649
Liabilities
Current liabilities
Accounts payable - other	6,091	6,896
Income taxes payable	2,485	1,039
Provision for bonuses	850	562
Allowance for Relocation cost	16	-
Contract liabilities	4,657	4,930
Other	1,873	1,012
Total current liabilities	15,975	14,439
Non-current liabilities
Bonds payable	8,000	15,700
Other	1,824	951
Total non-current liabilities	9,824	16,651
Total liabilities	25,800	31,091

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		(Millions of yen)
	As of June 30, 2022	As of December 31, 2022
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	2,365	2,365
Retained earnings	86,320	85,353
Treasury shares	(3,690)	(5,930)
Total shareholders' equity	85,094	81,888
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,291	3,160
Foreign currency translation adjustment	-	(24)
Total accumulated other comprehensive income	5,291	3,135
Share acquisition rights	490	476
Non-controlling interests	53	57
Total net assets	90,930	85,558
Total liabilities and net assets	116,730	116,649

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	December 31, 2021	December 31, 2022
Net sales	33,184	33,169
Cost of sales	14,364	14,372
Gross profit	18,820	18,797
Selling, general and administrative expenses	14,741	15,479
Operating profit	4,078	3,317
Non-operating income
Interest income	4	51
Dividend income	2	54
Foreign exchange gains	394	-
Other	9	8
Total non-operating income	410	115
Non-operating expenses
Interest expenses	25	59
Commission expenses	53	50
Foreign exchange losses	-	250
Other	1	44
Total non-operating expenses	80	404
Ordinary profit	4,408	3,028
Extraordinary income
Gain on sale of investment securities	9	3
Gain on sale of shares of subsidiaries and associates	-	3
Penalty income	754	-
Other	10	-
Total extraordinary income	775	6
Extraordinary losses
Loss on retirement of non-current assets	9	2
Impairment losses	36	-
Loss on valuation of investment securities	9	620
Other	-	0
Total extraordinary losses	55	624
Profit before income taxes	5,127	2,410
Income taxes	1,470	1,471
Profit	3,657	939
Profit attributable to non-controlling interests	2	4
Profit attributable to owners of parent	3,654	934

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