Digital Garage : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022(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 Three Months Ended June 30, 2022 (Based on IFRS)

Company name:	Digital Garage, Inc.
Stock exchange listing:	Tokyo
Securities code:	4819	URL https://www.garage.co.jp/

Representative:	Representative Director,
President Executive Officer and Group CEO
Inquiries:	Corporate Officer
Co-Head of Corporate Division

Scheduled date to file Quarterly Securities Report: Scheduled date to commence dividend payments:

Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results meeting:

Kaoru Hayashi

Nobuaki Doi

August 12, 2022

-

Yes

No

August 10, 2022

TEL [phone]

(Amounts are rounded off to the nearest million yen)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022) 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		%
Three months ended		yen			yen					yen			yen			of yen
	17,734		63.6	11,204	129.9			7,420			124.2	7,467		123.4	7,585		134.4
June 30, 2022
Three months ended		10,843		56.1	4,874	-		3,310			-	3,343		-	3,236		122.6
June 30, 2021
					Basic earnings per share		Diluted earnings per share
									Yen								Yen
Three months ended June 30, 2022					158.43							143.67
Three months ended June 30, 2021					72.54							65.94
(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 June 30, 2022					242,261							103,434				101,766		42.0
As of March 31, 2022					231,607							97,217				95,738		41.3
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, 2022					-								0.00				-			35.00	35.00
Year ending March 31, 2023					-
Year ending March 31, 2023 (Forecast)										-				-				-	-

(Note 1. Revision to the dividend forecast most recently announced : No)

(Note 2. The dividend forecast for the fiscal year ending March 31, 2023 has not been determined.)

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3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

The Company does not disclose its consolidated financial results forecast because it is difficult to reasonably estimate the fair value of securities held by the Group at the end of the fiscal year in the field of investment and incubation in domestic and overseas unlisted companies in the Incubation Technology Segment.

4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (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 June 30, 2022	47,592,500	shares	As of March 31, 2022	47,482,800	shares
Number of treasury shares at end of period
	As of June 30, 2022	391,160	shares	As of March 31, 2022	390,960	shares

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

Three months ended June 30, 2022

47,132,758 shares Three months ended June 30, 2021

46,086,020 shares

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Condensed quarterly consolidated financial statements

Condensed quarterly consolidated statement of financial position

				(Millions of yen)
		As of March 31, 2022		As of June 30, 2022
Assets
Current assets
Cash and cash equivalents	43,415	46,748
Trade and other receivables	24,462	19,926
Inventories	347	373
Operational investment securities	77,950	86,565
Other financial assets	277	332
Income taxes receivable	88	605
Other current assets	1,103		1,279
Total current assets	147,642	155,828
Non-current assets
Property, plant and equipment	18,423	18,224
Goodwill	6,804	6,822
Intangible assets	4,194	4,260
Investment property	3,171	3,526
Investments accounted for using equity method	27,808	28,880
Other financial assets	23,317	24,485
Deferred tax assets	17	16
Other non-current assets	231		221
Total non-current assets	83,965	86,433
Total assets	231,607	242,261

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				(Millions of yen)
		As of March 31, 2022		As of June 30, 2022
Liabilities and equity
Liabilities
Current liabilities
Borrowings	9,223	11,333
Trade and other payables	43,900	43,908
Other financial liabilities	1,666	1,678
Income taxes payable	394	340
Other current liabilities	4,059		3,265
Total current liabilities	59,242	60,525
Non-current liabilities
Bonds and borrowings	40,710	40,999
Other financial liabilities	10,683	10,304
Retirement benefit liability	480	473
Provisions	480	480
Deferred tax liabilities	22,001	25,203
Other non-current liabilities	796		843
Total non-current liabilities	75,149	78,301
Total liabilities	134,390	138,827
Equity
Share capital	7,692	7,810
Capital surplus	6,147	6,077
Treasury shares	(1,409)	(1,409)
Other components of equity	2,273	2,435
Retained earnings	81,035		86,854
Total equity attributable to owners of parent	95,738	101,766
Non-controlling interests	1,479		1,668
Total equity	97,217	103,434
Total liabilities and equity	231,607	242,261

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Condensed quarterly consolidated statements of income and condensed quarterly consolidated statements of comprehensive income

Condensed quarterly consolidated statements of income

			(Millions of yen)
	Three months ended		Three months ended
	June 30, 2021		June 30, 2022
Revenue
Revenue in recurring business	6,004	6,002
Revenue in operational investment securities	3,893	7,534
Other income	326	159
Finance income	18	2,131
Share of profit of investments accounted for using equity	600	1,907
method
Total	10,843	17,734
Expenses
Cost of sales	2,531	2,622
Selling, general and administrative expenses	3,304	3,758
Other expenses	72	80
Finance costs	62		70
Total	5,969	6,530
Profit before tax	4,874	11,204
Income tax expense	1,564		3,784
Profit	3,310	7,420
Profit (loss) attributable to
Owners of parent	3,343	7,467
Non-controlling interests	(33)	(47)
Earnings per share
Basic earnings per share	72.54	158.43
Diluted earnings per share	65.94	143.67

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