GREE : FY2023 4Q Summary of Consolidated Financial Statements

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 Year Ended June 30, 2023

(Based on Japanese GAAP)

																			August 3, 2023
Company name:	GREE, Inc.
Stock exchange listing:	Tokyo
Stock code:	3632	URL http://corp.gree.net/jp/ja/
Representative:	Founder, Chairman and CEO		Yoshikazu Tanaka
Inquiries:	Director, Senior Vice President, CFO	Toshiki Oya		TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	September 27, 2023
Scheduled date to file Securities Report:		September 28, 2023
Scheduled date to commence dividend payments:		August 24, 2023
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2023 (from July 1, 2022 to June 30, 2023)
(1) Consolidated operating results												Percentages indicate year-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		%
Year ended June 30, 2023		75,440		0.7	12,498		8.7		13,086	(7.2)	9,278		(8.3)
Year ended June 30, 2022		74,906		18.5	11,498		5.9		14,106	27.1		10,121		(25.2)
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen				%						%				%
Year ended June 30, 2023		54.07		53.47				10.2						10.8				16.6
Year ended June 30, 2022		54.58		54.01				9.6						10.9				15.4
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of June 30, 2023			124,806					92,549					73.7						539.35
As of June 30, 2022			116,730					90,930					77.4						521.76
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended June 30, 2023		4,590					(439)					3,264						74,293
Year ended June 30, 2022		13,218					(5,299)					(37,516)					66,624
2. Cash dividends
						Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended June 30, 2022		-		0.00	-				11.00	11.00		1,905		20.2			2.0
Year ended June 30, 2023		-		0.00	-				11.00	11.00		1,877		20.3			2.1
Year ending June 30, 2024		-			-	-				-			-					-
(Forecast)

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3. Notes

(1)	Changes in significant subsidiaries during the year ended June 30, 2023	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

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

	As of June 30, 2023	179,749,700	shares	As of June 30, 2022	179,749,700	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	9,094,269	shares	As of June 30, 2022	6,518,365	shares
Average number of shares during the period
	Year ended June 30, 2023	171,601,211	shares	Year ended June 30, 2022	185,437,620	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of June 30, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	54,624	50,293
Notes and accounts receivable - trade, and contract assets	7,754	7,694
Accounts receivable - other	1,567	2,298
Operational investment securities	22,215	19,574
Money held in trust	12,000	24,000
Other	2,044	3,506
Allowance for doubtful accounts	(3)	(0)
Total current assets	100,203	107,367
Non-current assets
Property, plant and equipment
Buildings and structures	1,851	1,901
Tools, furniture and fixtures	509	464
Total property, plant and equipment	2,361	2,365
Intangible assets
Other	13	8
Total intangible assets	13	8
Investments and other assets
Investment securities	9,493	10,242
Deferred tax assets	716	1,907
Other	4,255	3,239
Allowance for doubtful accounts	(313)	(324)
Total investments and other assets	14,151	15,064
Total non-current assets	16,526	17,439
Total assets	116,730	124,806
Liabilities
Current liabilities
Current portion of bonds payable	-	5,000
Income taxes payable	2,485	1,684
Contract liabilities	4,657	5,919
Provision for bonuses	850	512
Allowance for Relocation cost	16	-
Accounts payable - other	6,091	6,251
Other	1,873	1,023
Total current liabilities	15,975	20,391
Non-current liabilities
Bonds payable	8,000	10,700
Other	1,824	1,165
Total non-current liabilities	9,824	11,865
Total liabilities	25,800	32,256

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		(Millions of yen)
	As of June 30, 2022	As of June 30, 2023
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	2,365	2,365
Retained earnings	86,320	93,690
Treasury shares	(3,690)	(5,836)
Total shareholders' equity	85,094	90,319
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	5,291	1,657
Foreign currency translation adjustment	-	66
Total accumulated other comprehensive income	5,291	1,724
Share acquisition rights	490	454
Non-controlling interests	53	51
Total net assets	90,930	92,549
Total liabilities and net assets	116,730	124,806

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	June 30, 2022	June 30, 2023
Net sales	74,906	75,440
Cost of sales	30,054	28,831
Gross profit	44,852	46,608
Selling, general and administrative expenses	33,354	34,110
Operating profit	11,498	12,498
Non-operating income
Interest income	27	160
Dividend income	12	54
Foreign exchange gains	2,657	584
Other	52	10
Total non-operating income	2,751	810
Non-operating expenses
Interest expenses	51	122
Commission expenses	55	51
Loss on cancellation of leases	29	-
Valuation loss on crypto assets	-	46
Other	6	1
Total non-operating expenses	142	222
Ordinary profit	14,106	13,086
Extraordinary income
Gain on sale of investment securities	10	293
Gain on sale of shares of subsidiaries and associates	-	3
Penalty income	754	-
Other	10	24
Total extraordinary income	775	321
Extraordinary losses
Loss on retirement of non-current assets	67	7
Impairment losses	36	56
Loss on valuation of investment securities	179	636
Other	-	13
Total extraordinary losses	283	713
Profit before income taxes	14,598	12,693
Income taxes - current	3,538	3,320
Income taxes - deferred	936	95
Total income taxes	4,474	3,416
Profit	10,124	9,277
Profit (loss) attributable to non-controlling interests	2	(0)
Profit attributable to owners of parent	10,121	9,278

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