GREE : FY2023 3Q 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 Nine Months Ended March 31, 2023 (Based on Japanese GAAP)

					May 11, 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:	May 11, 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 nine months ended March 31, 2023 (from July 1, 2022 to March 31, 2023)

(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	%
Nine months ended March 31, 2023	55,320	2.4	7,540	(1.5)	7,425	(14.5)	4,167	(36.9)
Nine months ended March 31, 2022	54,031	11.4	7,656	(13.4)	8,680	(5.2)	6,606	(29.2)

	Earnings per share	Diluted earnings per share
	Yen		Yen
Nine months ended March 31, 2023	24.24		23.99
Nine months ended March 31, 2022	34.86		34.52
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of March 31, 2023	120,039		87,170	72.2
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)				11.00

Total

Yen 11.00

11.00

1

3. Notes

1. Changes in significant subsidiaries during the nine months ended March 31, 2023 (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 March 31, 2023	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 March 31, 2023	9,121,903	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)
	Nine months ended March 31, 2023	171,921,455	shares	Nine months ended March 31, 2022	189,498,578	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of June 30, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	54,624	46,487
Notes and accounts receivable - trade, and contract assets	7,754	9,863
Accounts receivable - other	1,567	1,829
Operational investment securities	22,215	16,632
Money held in trust	12,000	24,000
Other	2,044	3,622
Allowance for doubtful accounts	(3)	(0)
Total current assets	100,203	102,435
Non-current assets
Property, plant and equipment	2,361	2,549
Intangible assets
Other	13	7
Total intangible assets	13	7
Investments and other assets
Investment securities	9,493	9,760
Deferred tax assets	716	2,024
Other	4,255	3,563
Allowance for doubtful accounts	(313)	(301)
Total investments and other assets	14,151	15,047
Total non-current assets	16,526	17,604
Total assets	116,730	120,039
Liabilities
Current liabilities
Accounts payable - other	6,091	7,586
Income taxes payable	2,485	1,308
Provision for bonuses	850	315
Allowance for Relocation cost	16	-
Contract liabilities	4,657	5,830
Other	1,873	944
Total current liabilities	15,975	15,985
Non-current liabilities
Bonds payable	8,000	15,700
Other	1,824	1,183
Total non-current liabilities	9,824	16,883
Total liabilities	25,800	32,869

3

		(Millions of yen)
	As of June 30, 2022	As of March 31, 2023
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	2,365	2,365
Retained earnings	86,320	88,579
Treasury shares	(3,690)	(5,852)
Total shareholders' equity	85,094	85,191
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,291	1,507
Foreign currency translation adjustment	-	(35)
Total accumulated other comprehensive income	5,291	1,472
Share acquisition rights	490	449
Non-controlling interests	53	55
Total net assets	90,930	87,170
Total liabilities and net assets	116,730	120,039

4

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

Consolidated statements of income (cumulative)

		(Millions of yen)
	Nine months ended	Nine months ended
	March 31, 2022	March 31, 2023
Net sales	54,031	55,320
Cost of sales	22,014	21,987
Gross profit	32,017	33,333
Selling, general and administrative expenses	24,360	25,793
Operating profit	7,656	7,540
Non-operating income
Interest income	10	116
Dividend income	2	54
Foreign exchange gains	1,095	-
Other	10	10
Total non-operating income	1,118	182
Non-operating expenses
Interest expenses	38	91
Commission expenses	54	51
Foreign exchange losses	-	153
Other	1	1
Total non-operating expenses	94	296
Ordinary profit	8,680	7,425
Extraordinary income
Gain on sale of investment securities	9	291
Gain on sale of shares of subsidiaries and associates	-	3
Penalty income	754	-
Other	10	24
Total extraordinary income	775	319
Extraordinary losses
Loss on retirement of non-current assets	11	3
Impairment losses	36	-
Loss on valuation of investment securities	9	620
Other	-	0
Total extraordinary losses	57	624
Profit before income taxes	9,397	7,120
Income taxes	2,791	2,949
Profit	6,606	4,170
Profit (loss) attributable to non-controlling interests	(0)	3
Profit attributable to owners of parent	6,606	4,167

5