GCA : Consolidated Financial Results for the First Six Months of the Fiscal Year Ending December 31, 2020 (under IFRS)

Note:	This document has been translated from the Japanese original for reference purposes only. In the event of any
	discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the First Six Months of

the Fiscal Year Ending December 31, 2020

(under IFRS)

	July 31, 2020
Company name:	GCA Corporation
Listing:	Tokyo Stock Exchange First Section
Securities code:	2174
URL:	https://www.gcaglobal.co.jp
Representative:	Akihiro Watanabe, Representative Director
Inquiries:	Masaya Kato, Leader of Investor Relations Office
TEL:	[phone]

Scheduled date of the submission of quarterly securities report:	August 7, 2020
Scheduled date to commence dividend payments:	August 14, 2020
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results presentation meeting:	Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the first six months of the fiscal year ending December 31, 2020 (from January 1, 2020 to June 30, 2020)

(1)	Consolidated operating results (Non-GAAP)		(Percentages indicate year-on-year changes.)
			Revenue		Operating profit	Profit before tax	Profit
	Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
		June 30, 2020	6,225		(33.1)	(87)		-	(149)		-	(64)		-
		June 30, 2019	9,312		(10.7)	1,372		13.8	1,341		10.6	931		8.2
			Profit attributable to	Basic earnings	Diluted earnings
			owners of parent	per share		per share
	Six months ended	Millions of yen		%			Yen			Yen
		June 30, 2020	(143)		-			(3.45)			(3.45)
		June 30, 2019	919		9.3			23.99			21.13
(2)	Consolidated operating results (IFRS)				(Percentages indicate year-on-year changes.)
			Revenue		Operating profit	Profit before tax	Profit
	Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
		June 30, 2020	6,245		(32.9)	(227)		-	(289)		-	(204)		-
		June 30, 2019	9,312		(10.7)	1,362		14.1	1,332		10.8	922		8.6
			Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
			owners of parent	income		per share		per share
	Six months ended	Millions of yen		%	Millions of yen		%			Yen			Yen
		June 30, 2020	(283)		-	(1,091)		(302.4)			(6.82)			(6.82)
		June 30, 2019	909		9.7	539		280.1			23.74			20.91

(3) Consolidated financial position
		Total assets	Total equity	Equity attributable to	Ratio of equity
		attributable to owners
		owners of parent
				of parent
	As of	Millions of yen	Millions of yen	Millions of yen	%
	June 30, 2020	30,638	20,760	20,433	66.7
	December 31, 2019	36,677	22,038	21,790	59.4

2. Cash dividends

			Dividends per share
	First quarter-end		Second quarter-end		Third quarter-end		Fiscal year-end		Annual total
	Yen		Yen		Yen		Yen		Yen
Fiscal year ended	-		17.50		-		17.50		35.00
December 31, 2019
Fiscal year ending	-		17.50
December 31, 2020
Fiscal year ending
December 31, 2020					-		17.50		35.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecast for the fiscal year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)

The consolidated earnings forecast for the fiscal year ending December 31, 2020, is not presented as it is unsettled. This earnings forecast will be promptly disclosed once it is determined.

• Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes

Newly included: two companies GB Corporation

GCA Altium Nordics Limited

(2) Changes in accounting policies and changes in accounting estimates

(i)	Changes in accounting policies required by IFRS:	None
(ii)	Changes in accounting policies due to other reasons:	None
(iii)	Changes in accounting estimates:	None

(3) Number of issued shares (ordinary shares)

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

As of June 30, 2020	43,886,153 shares
As of December 31, 2019	41,175,375 shares

(ii) Number of treasury shares at end of the period

As of June 30, 2020	- shares
As of December 31, 2019	1,964,922 shares

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

For the six months ended June 30, 2020	41,576,608 shares
For the six months ended June 30, 2019	38,317,865 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of appropriate use of earnings forecasts and other explanatory notes (Caution regarding forward-lookingstatements)
  Earnings forecasts and other forward-looking statements indicated in these materials are based on information available at the time and on certain assumptions deemed reasonable. These statements do not represent any guarantee of achievement by the Company. Furthermore, there is the possibility of significant changes in actual earnings due to various factors.

GCA Corporation (2174)

Condensed Quarterly Consolidated Financial Statements

1. Condensed quarterly consolidated statement of financial position

			(Millions of yen)
	As of December 31, 2019		As of June 30, 2020
Assets
Current assets
Cash and cash equivalents	14,645	11,342
Trade and other receivables	2,983	1,200
Other financial assets	615	1,427
Income taxes receivable	440	372
Other current assets	446		384
Total current assets	19,130	14,727
Non-current assets
Property, plant and equipment	4,599	4,391
Goodwill and intangible assets	9,785	9,026
Other financial assets	1,301	627
Other non-current assets	392	451
Deferred tax assets	1,468		1,414
Total non-current assets	17,546		15,910
Total assets	36,677		30,638

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			GCA Corporation (2174)
			(Millions of yen)
	As of December 31, 2019		As of June 30, 2020
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables	595	578
Borrowings	65	1,301
Other financial liabilities	874	926
Income taxes payable	970	299
Other current liabilities	8,603		1,868
Total current liabilities	11,109	4,974
Non-current liabilities
Borrowings	16	1,497
Other financial liabilities	2,989	2,850
Retirement benefit liability	385	411
Provisions	133	133
Other non-current liabilities	3		9
Total non-current liabilities	3,529		4,903
Total liabilities	14,638	9,877
Equity
Share capital	1,028	1,135
Capital surplus	13,735	12,682
Retained earnings	5,581	4,611
Treasury shares	(1,585)		-
Other components of equity	3,030		2,003
Total equity attributable to owners of parent	21,790	20,433
Non-controlling interests	248		327
Total equity	22,038		20,760
Total liabilities and equity	36,677		30,638

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GCA Corporation (2174)

1. Condensed quarterly consolidated statement of profit or loss and condensed quarterly consolidated statement of comprehensive income

(Condensed quarterly consolidated statement of profit or loss)

			(Millions of yen)
	Six months ended		Six months ended
	June 30, 2019		June 30, 2020
Revenue	9,312	6,245
Cost of sales	(6,531)		(5,059)
Gross profit	2,781	1,185
Selling, general and administrative expenses	(1,385)	(1,535)
Other operating income	1	193
Other operating expenses	(34)		(71)
Operating profit (loss)	1,362	(227)
Finance income	21	18
Finance costs	(51)		(80)
Profit (loss) before tax	1,332	(289)
Income tax expense	(409)		85
Profit (loss)	922	(204)
Profit attributable to
Owners of parent	909	(283)
Non-controlling interests	12		79
Profit (loss)	922	(204)
Earnings per share
Basic earnings (loss) per share (Yen)	23.74	(6.82)
Diluted earnings (loss) per share (Yen)	20.91	(6.82)

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			GCA Corporation (2174)
(Condensed quarterly consolidated statement of comprehensive income)		(Millions of yen)
	Six months ended		Six months ended
	June 30, 2019		June 30, 2020
Profit (loss)	922	(204)
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans	0		0
Total of items that will not be reclassified to profit or	0	0
loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign	(382)	(887)
operations
Total of items that may be reclassified to profit or	(382)	(887)
loss
Other comprehensive income, net of tax	(382)		(887)
Comprehensive income	539	(1,091)
Comprehensive income attributable to
Owners of parent	526	(1,170)
Non-controlling interests	12		79
Comprehensive income	539		(1,091)

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GCA Corporation (2174)

1. Condensed quarterly consolidated statement of changes in equity

Six months ended June 30, 2019 (from January 1, 2019 to June 30, 2019)

(Millions of yen)

					Equity attributable to owners of parent
											Other components of equity
									Exchange
	Share capital		Capital		Retained		Treasury		differences		Remeasure-		Share		Total other
					on		ments of
		surplus		earnings		shares				acquisition		components
						translation of		defined
											rights		of equity
									foreign		benefit plans
									operations
Balance as of January 1, 2019	304	13,855	4,613	(795)	(389)		-	3,513	3,123
Profit (loss)				909
Other comprehensive								(382)	0			(382)
income
Total comprehensive income	-		-	909		-	(382)	0		-	(382)
Issuance of new shares	452	452
Dividends				(666)
Purchase of treasury shares						(440)
Share-based payment		(525)									(380)	(380)
transactions
Increase (decrease) by
business combination
Transfer from other
components of equity to				0					(0)			(0)
retained earnings

Total transactions with owners

Balance as of June 30, 2019

Balance as of January 1, 2019 Profit (loss)

Other comprehensive income

Total comprehensive income

Issuance of new shares

Dividends

Purchase of treasury shares

Share-based payment transactions

Increase (decrease) by business combination

Transfer from other components of equity to retained earnings

Total transactions with owners

Balance as of June 30, 2019

452	(72)	(666)	(440)		-	(0)	(380)			(380)
757	13,782	4,856	(1,235)	(772)				-	3,132			2,359
		Equity attributable
		to owners of parent		Non-controlling interests				Total equity
				Total
					21,101					187							21,289
					909					12							922
					(382)															(382)
					526					12							539
					905															905
					(666)															(666)
					(440)															(440)
					(906)															(906)
						-													-
						-													-
					(1,107)								-							(1,107)
					20,521					200							20,721

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GCA Corporation (2174)

Six months ended June 30, 2020 (from January 1, 2020 to June 30, 2020)

(Millions of yen)

					Equity attributable to owners of parent
											Other components of equity
									Exchange
	Share capital		Capital		Retained		Treasury		differences		Remeasure-		Share		Total other
					on		ments of
		surplus		earnings		shares				acquisition		components
						translation of		defined
											rights		of equity
									foreign		benefit plans
									operations
Balance as of January 1, 2020	1,028	13,735	5,581	(1,585)	(236)		-	3,266	3,030
Profit (loss)				(283)
Other comprehensive								(887)	0			(887)
income
Total comprehensive income	-		-	(283)		-	(887)	0		-	(887)
Issuance of new shares	106	(19)									(59)	(59)
Dividends				(686)
Purchase of treasury shares

Share-based payment transactions

Increase (decrease) by business combination

Transfer from other components of equity to retained earnings

322	(79)	(79)
(1,356)	1,585
0	(0)	(0)

Total transactions with owners

Balance as of June 30, 2020

Balance as of January 1, 2020 Profit (loss)

Other comprehensive income

Total comprehensive income Issuance of new shares Dividends

Purchase of treasury shares

Share-based payment transactions

Increase (decrease) by business combination

Transfer from other components of equity to retained earnings

Total transactions with owners

Balance as of June 30, 2020

106	(1,053)	(686)	1,585		-	(0)	(138)			(138)
1,135	12,682	4,611		-	(1,123)				-	3,127			2,003
		Equity attributable
		to owners of parent		Non-controlling interests				Total equity
				Total
					21,790					248							22,038
					(283)					79							(204)
					(887)															(887)
					(1,170)					79							(1,091)
					27															27
					(686)															(686)
						-													-
					243															243
					228															228
						-													-
					(186)								-							(186)
					20,433					327							20,760

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GCA Corporation (2174)

1. Condensed quarterly consolidated statement of cash flows

			(Millions of yen)
	Six months ended		Six months ended
	June 30, 2019		June 30, 2020
Cash flows from operating activities
Profit (loss) before tax	1,332	(289)
Loss (gain) on valuation of financial instruments	-	32
Depreciation and amortization	574	616
Interest and dividend income	(21)	(18)
Interest expenses	51	48
Share-based payment expenses	9	327
Gain on bargain purchase	-	(187)
Decrease (increase) in trade and other receivables	1,412	1,739
Increase (decrease) in trade and other payables	149	(5)
Increase (decrease) in other current liabilities	(7,398)	(6,368)
Other	184		(197)
Subtotal	(3,705)	(4,303)
Interest and dividends received	21	18
Interest paid	(51)	(48)
Income taxes refund (paid)	(704)		(545)
Net cash provided by (used in) operating activities	(4,440)	(4,878)
Cash flows from investing activities
Purchase of property, plant and equipment	(107)	(53)
Proceeds from purchase of shares of subsidiaries	-	260
Other	(4)		26
Net cash provided by (used in) investing activities	(111)	233
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	-	600
Proceeds from long-term borrowings	-	2,258
Repayments of long-term borrowings	-	(132)
Proceeds from exercise of share acquisition rights	1	29
Payments for purchase of treasury shares	(440)		-
Dividends paid	(666)	(686)
Repayments of lease obligations	(418)	(485)
Other	(7)		(2)
Net cash provided by (used in) financing activities	(1,531)		1,581
Net increase (decrease) in cash and cash equivalents	(6,084)	(3,063)
Cash and cash equivalents at beginning of period	15,829	14,645
Effect of exchange rate changes on cash and cash	(275)	(238)
equivalents
Cash and cash equivalents at end of period	9,469		11,342

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