GREE : FY2024 1Q 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 Three Months Ended September 30, 2023 (Based on Japanese GAAP)

					November 2, 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 to file Quarterly Securities Report:	November 2, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended September 30, 2023 (from July 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)				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	%
Three months ended September 30, 2023	15,787	(4.8)	1,225	(22.6)	1,570	(35.3)	1,183	(34.7)
Three months ended September 30, 2022	16,590	21.3	1,584	2.0	2,428	46.3	1,813	(3.2)

	Earnings per share	Diluted earnings per share
	Yen		Yen
Three months ended September 30, 2023	6.93		6.85
Three months ended September 30, 2022	10.46		10.35
(2) Consolidated financial position
	Total assets		Net assets	Equity ratio
	Millions of yen		Millions of yen	%
As of September 30, 2023	124,415		92,447	73.9
As of June 30, 2023	124,806		92,549	73.7

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended June 30, 2023	-	0.00	-	11.00
Year ending June 30, 2024	-
Year ending June 30, 2024 (Forecast)		-	-	-

Total

Yen 11.00

-

1

(3) 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: No

Changes in accounting policies due to other reasons:No

Changes in accounting estimates:No

Restatement of prior period financial statements:No

(4) Number of issued shares (common shares)

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

As of September 30, 2023179,749,700 shares As of June 30, 2023 Number of treasury shares at the end of the period

As of September 30, 20238,990,081 shares As of June 30, 2023 Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended September 30, 170,691,657 shares Three months ended September 30,

20232022

2

(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

3. Notes

(1) Changes in significant subsidiaries during the three months ended September 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):

179,749,700 shares

9,094,269 shares

173,292,249 shares

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of June 30, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	50,293	50,316
Notes and accounts receivable - trade, and contract assets	7,694	8,249
Accounts receivable - other	2,298	958
Operational investment securities	19,574	19,751
Money held in trust	24,000	24,000
Other	3,506	4,201
Allowance for doubtful accounts	(0)	(0)
Total current assets	107,367	107,475
Non-current assets
Property, plant and equipment	2,365	2,401
Intangible assets
Other	8	8
Total intangible assets	8	8
Investments and other assets
Investment securities	10,242	9,541
Deferred tax assets	1,907	2,128
Other	3,239	3,193
Allowance for doubtful accounts	(324)	(333)
Total investments and other assets	15,064	14,529
Total non-current assets	17,439	16,939
Total assets	124,806	124,415
Liabilities
Current liabilities
Current portion of bonds payable	5,000	5,000
Income taxes payable	1,684	822
Contract liabilities	5,919	5,241
Provision for bonuses	512	374
Accounts payable - other	6,251	6,857
Other	1,023	1,415
Total current liabilities	20,391	19,711
Non-current liabilities
Bonds payable	10,700	10,700
Other	1,165	1,556
Total non-current liabilities	11,865	12,256
Total liabilities	32,256	31,967

3

		(Millions of yen)
	As of June 30, 2023	As of September 30, 2023
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	2,365	2,365
Retained earnings	93,690	92,996
Treasury shares	(5,836)	(5,779)
Total shareholders' equity	90,319	89,682
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,657	2,106
Foreign currency translation adjustment	66	102
Total accumulated other comprehensive income	1,724	2,209
Share acquisition rights	454	472
Non-controlling interests	51	82
Total net assets	92,549	92,447
Total liabilities and net assets	124,806	124,415

4

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	September 30, 2022	September 30, 2023
Net sales	16,590	15,787
Cost of sales	7,049	7,023
Gross profit	9,540	8,764
Selling, general and administrative expenses	7,956	7,538
Operating profit	1,584	1,225
Non-operating income
Interest income	8	26
Dividend income	54	15
Foreign exchange gains	868	366
Other	4	5
Total non-operating income	936	412
Non-operating expenses
Interest expenses	28	31
Commission expenses	47	0
Valuation loss on crypto assets	15	35
Other	1	-
Total non-operating expenses	92	68
Ordinary profit	2,428	1,570
Extraordinary income
Gain on sale of investment securities	-	28
Total extraordinary income	-	28
Extraordinary losses
Loss on retirement of non-current assets	0	8
Total extraordinary losses	0	8
Profit before income taxes	2,428	1,590
Income taxes	609	409
Profit	1,818	1,180
Profit (loss) attributable to non-controlling interests	5	(2)
Profit attributable to owners of parent	1,813	1,183

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Consolidated statements of comprehensive income (cumulative)

Profit

Other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment

Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income Comprehensive income Comprehensive income attributable to

Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests

	(Millions of yen)
Three months ended	Three months ended
September 30, 2022	September 30, 2023
1,818	1,180
(1,243)	(603)
42	36
(24)	1,052
(1,225)	485
593	1,666
587	1,669
5	(2)

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