Digital Garage : Summary of Consolidated Financial Results for the Six Months Ended September 30, 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 Six Months Ended September 30, 2021

(Based on IFRS)

November 12, 2021

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:

November 15, 2021

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(Amounts are rounded off to the nearest million yen)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 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

%

Six months ended

yen

yen

yen

yen

of yen

40,109

108.2

27,425

354.3

18,409

374.0

18,496

362.0

18,013

234.4

September 30, 2021

Six months ended

19,264

(1.7)

6,037

(17.6)

3,884

(25.9)

4,003

(24.1)

5,386

(23.4)

September 30, 2020

Basic earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

401.21

362.60

Six months ended September 30, 2020

86.96

79.55

(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 September 30, 2021

200,129

80,007

79,102

39.5

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 six months ended September 30, 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	:

No

No

No

No

(3) Number of issued shares (ordinary shares)

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

	As of September 30, 2021	47,470,800	shares	As of March 31, 2021	47,441,900	shares
Number of treasury shares at end of period
	As of September 30, 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)
	Six months ended September 30, 2021	46,099,313	shares	Six months ended September 30, 2020	46,031,452	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 September 30, 2021
Assets
Current assets
Cash and cash equivalents	37,989	40,605
Trade and other receivables	26,574	19,138
Inventories	264	300
Operational investment securities	47,170	61,493
Other financial assets	912	276
Income taxes receivable	21		-
Other current assets	618		734
Total current assets	113,548	122,545
Non-current assets
Property, plant and equipment	19,478	19,545
Goodwill	7,689	7,934
Intangible assets	4,000	4,098
Investment property	2,924	2,927
Investments accounted for using equity method	22,446	24,470
Other financial assets	7,878	18,325
Deferred tax assets	60	43
Other non-current assets	278		241
Total non-current assets	64,753	77,583
Total assets	178,301	200,129

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				(Millions of yen)
		As of March 31, 2021		As of September 30, 2021
Liabilities and equity
Liabilities
Current liabilities
Borrowings	9,768	15,869
Trade and other payables	39,911	38,363
Other financial liabilities	1,712	1,712
Income taxes payable	1,328	779
Other current liabilities	4,146		3,120
Total current liabilities	56,865	59,843
Non-current liabilities
Bonds and borrowings	35,850	30,936
Other financial liabilities	12,168	11,473
Retirement benefit liability	452	467
Provisions	485	483
Deferred tax liabilities	8,515	16,101
Other non-current liabilities	885		819
Total non-current liabilities	58,355	60,279
Total liabilities	115,220	120,122
Equity
Share capital	7,637	7,675
Capital surplus	4,566	4,760
Treasury shares	(4,915)	(4,831)
Other components of equity	2,062	1,491
Retained earnings	52,785		70,007
Total equity attributable to owners of parent	62,134	79,102
Non-controlling interests	947		905
Total equity	63,082	80,007
Total liabilities and equity	178,301	200,129

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Condensed quarterly consolidated statements of income

First six months of fiscal year

			(Millions of yen)
	Six months ended		Six months ended
	September 30, 2020		September 30, 2021
Revenue
Revenue in recurring business	12,449	12,073
Revenue in operational investment securities	5,270	13,728
Other income	400	549
Finance income	1	11,401
Share of profit of investments accounted for using equity	1,143	2,358
method
Total	19,264	40,109
Expenses
Cost of sales	5,593	5,148
Selling, general and administrative expenses	7,041	7,134
Other expenses	178	188
Finance costs	415		212
Total	13,228	12,683
Profit before tax	6,037	27,425
Income tax expense	2,153		9,017
Profit	3,884	18,409
Profit (loss) attributable to
Owners of parent	4,003	18,496
Non-controlling interests	(119)	(87)
Earnings per share
Basic earnings per share	86.96	401.21
Diluted earnings per share	79.55	362.60

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