Digital Garage : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021(IFRS)

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 December 31, 2021 (Based on IFRS)

February 10, 2022

Company name:

Digital Garage, Inc.

Stock exchange listing:

Tokyo

Securities code:

4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,

Kaoru Hayashi

President Executive Officer and Group CEO

Member, Board of Directors, Senior

Inquiries:

Managing Executive Officer,in charge of the

Makoto Soda

TEL

03-6367-1111

Corporate Strategy Division

Scheduled date to file Quarterly Securities Report:

February 14, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

No

(Amounts are rounded off to the nearest million yen)

1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Revenue

Profit before tax

Profit

Profit attributable

Comprehensive

to owners of parent

income

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions

%

Nine months ended

yen

yen

yen

yen

of yen

52,888

84.2

33,679

259.8

22,640

271.3

22,801

262.3

22,210

191.5

December 31, 2021

Nine months ended

28,711

0.1

9,361

(9.9)

6,098

(18.2)

6,293

(16.4)

7,620

(11.8)

December 31, 2020

Basic earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended December 31, 2021

494.49

447.15

Nine months ended December 31, 2020

136.67

124.90

(2) Consolidated financial position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners of

owners of parent

parent to total assets

Millions of yen

Millions of yen

Millions of yen

%

As of December 31, 2021

221,933

84,944

83,521

37.6

As of March 31, 2021

178,301

63,082

62,134

34.8

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

Year ended March 31, 2021

-

0.00

-

32.00

32.00

Year ending March 31, 2022

-

0.00

-

Year ending March 31, 2022 (Forecast)

-

-

(Note 1. Revision to the forecast on financial results: No)

(Note 2. Fiscal year ending March 31, 2022 forecast is to be determined.)

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3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

In the field of investment and incubation in domestic and overseas unlisted companies in the Incubation Technology Segment, it is difficult to reasonably estimate the fair value of securities held by Digital Garage Group at the end of the fiscal year. Therefore, Digital Garage, Inc. does not disclose consolidated financial forecasts.

4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Changes in accounting policies and changes in accounting estimates Changes in accounting policies required by IFRS:

Changes in accounting policies due to other reasons:

Changes in accounting estimates:

(3) Number of issued shares (ordinary shares)

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

No

No

No No

	As of December 31, 2021	47,474,400	shares	As of March 31, 2021	47,441,900	shares
Number of treasury shares at end of period
	As of December 31, 2021	1,340,460	shares	As of March 31, 2021	1,363,660	shares

Average number of shares during period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2021

46,110,155 shares

Nine months ended December 31, 2020

46,043,559 shares

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Condensed quarterly consolidated financial statements

Condensed quarterly consolidated statement of financial position

				(Millions of yen)
		As of March 31, 2021		As of December 31, 2021
Assets
Current assets
Cash and cash equivalents	37,989	52,132
Trade and other receivables	26,574	20,141
Inventories	264	268
Operational investment securities	47,170	66,699
Other financial assets	912	277
Income taxes receivable	21	4
Other current assets	618		1,089
Total current assets	113,548	140,611
Non-current assets
Property, plant and equipment	19,478	19,097
Goodwill	7,689	7,940
Intangible assets	4,000	4,174
Investment property	2,924	2,994
Investments accounted for using equity method	22,446	25,026
Other financial assets	7,878	21,806
Deferred tax assets	60	33
Other non-current assets	278		252
Total non-current assets	64,753	81,321
Total assets	178,301	221,933

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				(Millions of yen)
		As of March 31, 2021		As of December 31, 2021
Liabilities and equity
Liabilities
Current liabilities
Borrowings	9,768	8,552
Trade and other payables	39,911	52,712
Other financial liabilities	1,712	1,696
Income taxes payable	1,328	196
Other current liabilities	4,146		3,334
Total current liabilities	56,865	66,489
Non-current liabilities
Bonds and borrowings	35,850	40,155
Other financial liabilities	12,168	11,072
Retirement benefit liability	452	478
Provisions	485	484
Deferred tax liabilities	8,515	17,513
Other non-current liabilities	885		797
Total non-current liabilities	58,355	70,499
Total liabilities	115,220	136,989
Equity
Share capital	7,637	7,681
Capital surplus	4,566	4,905
Treasury shares	(4,915)	(4,831)
Other components of equity	2,062	1,455
Retained earnings	52,785		74,312
Total equity attributable to owners of parent	62,134	83,521
Non-controlling interests	947		1,423
Total equity	63,082	84,944
Total liabilities and equity	178,301	221,933

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Condensed quarterly consolidated statements of income

First nine months of fiscal year

			(Millions of yen)
	Nine months ended		Nine months ended
	December 31, 2020		December 31, 2021
Revenue
Revenue in recurring business	18,587	18,298
Revenue in operational investment securities	7,496	18,106
Other income	614	752
Finance income	18	11,914
Share of profit of investments accounted for using equity	1,996	3,819
method
Total	28,711	52,888
Expenses
Cost of sales	8,052	7,811
Selling, general and administrative expenses	10,441	10,830
Other expenses	247	287
Finance costs	610		281
Total	19,351	19,209
Profit before tax	9,361	33,679
Income tax expense	3,263		11,038
Profit	6,098	22,640
Profit (loss) attributable to
Owners of parent	6,293	22,801
Non-controlling interests	(195)	(161)
Earnings per share
Basic earnings per share	136.67	494.49
Diluted earnings per share	124.90	447.15

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