Gumi : Summary of Consolidated Financial Results for the Three months Ended July 31, 2021(Based on Japanese GAAP)

		Summary of Consolidated Financial Results
		for the Three months Ended	July 31, 2021
		(Based on Japanese GAAP)
					September 10, 2021
Company Name:	gumi Inc.		Stock exchange listing:	Tokyo
Stock code:	3903		URL	https:// gu3.co.jp/
Representative:	Title	CEO	Name	Hiroyuki Kawamoto
Inquiries:	Title	CFO	Name	Makoto Motoyoshi	(TEL) 03 (5358) 5322
Scheduled date to file Quarterly Securities Report	September 10, 2021
Scheduled date to commence dividend payments	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:		No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the Three months ended July 31, 2021 (from May, 2021 to July 31, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicateyear-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

%

Three months ended July 31,

3,650

△31.8

△596

－

△1,808

－

△1,593

－

2021

Three months ended July 31,

5,351

11.1

950

632.7

1,082

－

901

－

2020

Note. Comprehensive income: 1st quarter of FYE April 30, 2022: △1,640 millions of yen ( － %)

1st quarter of FYE April 30, 2021: 861 millins of yen ( - %)

Earnigs per share

Diluted earnings per share

Yen

Yen

As of July 31, 2021

△53.62

－

As of July 31, 2020

29.87

29.52

Notes: 1. Due to net loss, the diluted earnings per share in 1nd quareter of FYE April 30, 2022 is not listed above.

Notes: 2. Since "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29), etc. have been applied from the three months ended July 31, 2021, the above amounts of consolidated financial results reflect the application of the accounting standard, etc.

(2) Consolidatd financial position

		Total assets	Net assets	Equity ratio
		Millions of yen	Millions of yen		％
As of July 31, 2021		21,665	14,304		61.4
As of April 30, 2021		25,012	17,190		64.7
（Reference） Equity capital :	1st quarter of FYE April 30, 2022	13,306 millions of yen	FYE April 30, 2021	16,189 millions of yen

Note. Since "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29), etc. have been applied from the three months ended July 31, 2021,

the above amounts of consolidated financial results reflect the application of the accounting standard, etc.

2. Cash dividends

				Annual dividends per share
	1st quarter-end		2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen		Yen	Yen	Yen	Yen
FYE April 30, 2021		－		0. 00	－	5. 00	5. 00
FYE April 30, 2022		－
FYE April 30, 2022 (Forecast)				－	－	－	－
Notes: 1. The amendments of latest published dividends forecast	：No

2. It is undetermined for the dividends in FYE April 30, 2022

3. Forecast of consolidated financial results FYE April 30, 2022 (May 1, 2021 to April 30, 2022)

Due to volatility of our business environmental changes, it is difficult to calculate and predict our accurate financial results. Therefore, we do not publish forecast of our business.

※ Notes
(1) Changes in significant subsidiaries during the Three months eneded July 31, 2021		：No
(changes in specified subsidiaries with the change in the scope of consolidation)
(2) Applications of special accounting methods for preparing quarterly consolidated financial reports.	：No
(3) Changes in accounting policies, changes in accounting estimates and restatements
1)	Changes in accounting policies due to the revision of accounting standards	：Applicable
2)	Changes in accounting policies other than 1)	：Not applicable
3)	Changes in accounting estimates	：Not applicable
4)	Restatements	：Not applicable

(4) Total number of issued shares (Common stock)

1. Total number of issued shares at the end of the period (including treasury shares)
2. Total number of treasury shares at the end of the period
3. Average number of shares during the period (cumulative)

As of July 31, 2021	31,263,700	As of April 30,	31,231,900
shares	2021	shares
As of July 31, 2021	2,101,039	As of April 30,	980,039
shares	2021	shares
As of July 31, 2021	29,722,194	As of July 31,	30,189,380
shares	2021	shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants and audit firms.
• Explanation for the appropriate use of performance forecast and other special notes:

(Cautionary note on forward-looking statements)

The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Thereore, there might be cases in which actual results differ materially from forecast values due to various factors.

Quarterly consolidated financial statements

Consolidated balance sheets

		(Thousands of yen)
	As of April 30, 2021	As of July 31, 2021
Assets
Current assets
Cash and deposits	8,492,510	7,588,095
Accounts receivable - trade	1,812,179	1,639,250
Other current asset	3,280,230	1,352,323
Total current assets	13,584,920	10,579,669
Non-current assets
Property, plant and equipment	135,386	133,138
Intangible assets
Software	493,142	290,495
Software in progress	3,405,522	3,922,375
Other intangible assets	73,855	61,654
Total intangible assets	3,972,519	4,274,525
Investment and other assets
Investment securities	1,823,758	1,776,221
Other investment securities of affiliates	3,671,840	2,998,196
Other investments	1,823,870	1,903,890
Total investment and other assets	7,319,469	6,678,309
Total non-current assets	11,427,375	11,085,973
Total assets	25,012,295	21,665,643
		(Thousands of yen)
	As of April 30, 2021	As of July 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	542,982	522,853
Current portion of long-term borrowings	1,999,734	1,916,401
Income taxes payable	763,577	57,750
Provision for bonuses	100,239	59,150
Other current liabilities	1,169,477	1,227,906
Total current liabilities	4,576,010	3,784,062
Non-current liabilities
Long-term borrowings	2,500,404	3,042,138
Asset retirement oblitation	114,145	114,005
Other non-current liabilities	631,297	421,140
Total non-current liabilities	3,245,846	3,577,283
Total liabilities	7,821,857	7,361,346
Net assets
Shareholders' equity
Share capital	9,399,470	9,414,645
Capital surplus	3,407,249	3,422,424
Retained earnings	4,336,840	2,461,878
Treasury shares	-1,058,438	-2,058,370
Total shareholders' equity	16,085,121	13,240,578
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	74,790	53,378
Foreign currency translation adjustment	29,978	12,172
Total accumulated other comprehensive income	104,769	65,550
Share acquisition rights	316,551	322,204
Non-controlling interests	683,995	675,963
Total net assets	17,190,437	14,304,297
Total liabilities and net assets	25,012,295	21,665,643

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

(cumulative)

Consolidated statements of income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	July 31, 2020	July 31, 2021
Net sales	5,351,698	3,650,618
Cost of Sales	3,569,700	3,471,586
Gross profit	1,781,998	179,031
Selling, general and admistrative expenses	831,531	775,458
Opearting profit	950,466	-596,427
Non-opearting income
Interest and dividend income	196	226
Subsidy income	0	545
Gain on valuation of Crypto Assets	101,219	0
Gain on sales of Crypto Assets	0	22,201
Gain on sales of non-current assets	47,659	0
Gain on exemption of Consumption Tax	0	28,963
Share of profit of entities accounted for using equity method	21,858	0
Gain on investments in investment partnerships	0	9,725
Other non-operating incomes	418	4,466
Total non-operating income	171,352	66,128
Non-operating expenses
Interest expenses	4,891	7,329
Foreign exchange losses	21,481	10,361
Loss on valuation of Crypto Assets	0	672,367
Share of loss of entities accounted for using equity method	0	587,589
Loss on investments in investment partnerships	11,527	0
Other non-operating expenses	1,460	852
Total non-operating expenses	39,360	1,278,500
Ordinary profit	1,082,458	-1,808,799
Extraordinary income
Gain on reversal of share acquisition rights	5,620	0
Total extraordinary income	5,620	0
Extraordinary losses
Loss on valuation of investment securities	1,940	773
Business restructuring expenses	6,246	0
retirement benefits for officers	0	150,000
Total extraordinary losses	8,186	150,773
Profit (loss) before income taxes	1,079,891	-1,959,572
Income taxes - current	150,771	5,603
Income taxes - deffered	35,353	-363,492
Total income taxes
186,125	-357,888
Profit (loss)
893,766	-1,601,683
Loss attributable to non-controlling interests
-7,855	-8,031
Profit (loss) attributable to owner of parent
901,621	-1,593,652

Consolidated statements of comprehensive income (cumulative)

Profit (loss)

Other comprehenxive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment

Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income

Comprehensive income

Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests

	(Thousands of yen)
Three months ended	Three months ended
July 31, 2020	July 31, 2021
893,766	-1,601,683
-2,764	-21,412
-36,563	-27,502
6,757	9,696
-32,570	-39,219
861,196	-1,640,903
869,051	-1,632,871
-7,855	-8,031