FinTech Global Incorporated : Results for First Quarter of Fiscal 2023, ending September 30, 2023

The firm of innovative financing

Results for First Quarter of

Fiscal 2023, ending September 30, 2023

February 2023

FinTech Global Incorporated

TSE Standard Market Stock Code: 8789 https://www.fgi.co.jp/en/

• FinTech, in katakana script and English letters (registration 5113746), FinTech Global, in English letters (registration 5811521) and in katakana script (registration 5811522), and FGI (registration 5113748) are registered trademarks of FinTech Global Incorporated.

Index

Summary・・・・・・・・・・・・・・・・・・・・・・・・・ 2

Consolidated Performance・・・・・・・・・・・・・・・・・・ 3

Quarterly Changes in Consolidated Performance・・・・・・・・・ 4

Business Summary by Segment・・・・・・・・・・・・・・・・ 5

Investment Banking Business・・・・・・・・・・・・・・・・・ 7

Entertainment Service Business ・・・・・・・・・・・・・・・・ 8

Trends in Balance of Investments and Loans・・・・・・・・・・・10

Changes in Assets under Management ・・・・・・・・・・・・・11

Public Management Business・・・・・・・・・・・・・・・・・12

Consolidated Balance Sheets, Consolidated Statement of Income ・・ 14 Changes in Key Financial Data・・・・・・・・・・ ・・・・・・16

Corporate Data ・・・・・・・・・・・・・・・・・・・・・・17

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1

Summary

Private equity operations took great strides forward, thanks to increase in business succession projects.

Marked considerable increase in revenues and income, despite exclusion of Rights and Brands Japan Co., Ltd., from scope of consolidation.

Anticipate steady progress on business succession projects from the second quarter onward as well.

Multiple business succession projects moved forward using private equity opportunities

• Provided broad-based solutions, with emphasis on investment, for several business succession projects in major urban areas across Japan and posted investment income and income on arrangement transaction services.
• New investment moving favorably ahead using funds into which FGI has contributed capital, to acquire target companies.

Balance of assets under management doubled in a year to ¥60.2 billion (up 7.3% over September 30, 2022)

• Newly entrusted by overseas investor to manage assets for logistics facility investment.

Aircraft asset management remained brisk

Entertainment service business saw higher revenues from Metsä-related operations, but exclusion of Rights and Brands Japan from scope of consolidation caused drop in segment revenues and income.

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2

Consolidated Performance

							(Millions of yen)
	Fiscal 2022	Fiscal 2023		YOY Change	YOY Change	Fiscal 2023	Progress toward
		Full Year
	First Quarter	First Quarter		(Amount)	(Percentage)	goal
		(Forecast)
Revenues	2,272	2,716	+443	+19.5%	10,100	26.9%
Gross profit	897	1,597	+700	+78.1%	－	－
Operating income	62	720	+657	+1,046.7%	1,400	51.5%
Ordinary profit	39	699	+660	+1,673.7%	1,400	50.0%
Profit attributable	(47)	503	+550	－	1,000	50.3%
to owners of the parent

EBITDA

213

836

+622

+291.6%

－

－

Revenues

Gross profit

Operating income

Consolidated performance

forecast

Note: EBITDA is calculated by returning depreciation costs and amortization of goodwill included in cost of revenue and selling, general and administrative expenses back to operating income.

In private equity operations, investment income and income on arrangement transaction services increased significantly, as business succession projects utilized private equity opportunities.

Aircraft asset management also showed growth. And despite exclusion of Rights and Brands Japan from scope of consolidation, revenues were up.

Huge increase, owing to higher revenues from business succession projects with low cost-to-revenue ratio.

Although selling, general and administrative expenses rose 5.1% year on year, paralleling business expansion, operating income increased significantly, thanks to higher gross profit.

Management anticipates favorable progress on business succession projects in second quarter onward as well, but will not change performance forecast because capture of new investment deals, formation status and other factors must be watched carefully before revisions might be considered .

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3

Quarterly Changes in Consolidated Performance

							(Millions of yen)
			Fiscal 2022			Fiscal 2023	YOY
	Q1	Q2	Q3	Q4	Full year	Q1	¥ change
	% change
Revenues	2,272	2,148	2,328	2,552	9,301	2,716	+443
+19.5%
Gross profit	897	712	1,071	1,309	3,990	1,597	+700
+78.1%
Operating	62	(102)	190	437	587	720	+657
income(loss)	+1,046.7%
Ordinary	39	(91)	165	426	540	699	+660
profit(loss)	+1,673.7%
Profit/(loss) attributable	(47)	(155)	62	316	176	503	+550
to owners of the parent	－
EBITDA	213	49	313	577	1,153	836	+622
+291.6%

Note: EBITDA is calculated by returning depreciation costs and amortization of goodwill included in cost of revenue and selling, general and administrative expenses back to segment income/(loss).

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