ＦＰＧ（7148） – Consolidated Financial Results for the First Quarter of the Fiscal Year Ending September 30, 2022 (Japanese GAAP) (Summary)

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending September 30, 2022 (Japanese GAAP) (Summary) January 31, 2022 Listed Company Name: Financial Products Group Co., Ltd. URL https://www.fpg.jp/en/ Listed Stock Exchange: Tokyo Stock Exchange 1st Section Code Number: 7148 Representative: Hisanaga Tanimura, CEO and Founder Contact: Hiroshi Sakurai, Executive Officer and General Manager, Corporate Planning Dept. Phone: +81-3- 5288-5691 Expected date of quarterly report submission: February 10, 2022 Expected date of dividend payment: － Supporting material for quarterly results: Yes The briefing session of quarterly results: No 1. Consolidated financial results for the first quarter of the Fiscal Year Ending September 30, 2022(October 1, 2021 － December 31, 2021)(1) Consolidated operating results (cumulative)Net sales Operating income (% figures show year-on-year change.) Profit attributable to owners of parent Ordinary income Three months ended Millions of yen Millions of yen % Millions of yen % Millions of yen % (Figures less than one million yen are rounded down.) December 31, 2021 December 31, 2020 (Note) Comprehensive income: 15,673 3,824 % －3.4 Three months ended December 31,2021: 2,553 million yen; [822.3%] Three months ended December 31,2020: 276 million yen; [(75.7%)] 3,405 984 245.9 (34.3) 3,557 412.5 2,519 823.7 694 (56.1) 272 (74.4) Three months ended December 31, 2021 December 31, 2020 Net income per share Diluted net income per share Yen 29.50 3.20 Yen －－(Note) 1. Diluted net income per share is not stated because there are no potential shares. (Note) 2. The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the beginning of the first quarter of the current fiscal year. Accordingly, the figures for the first quarter of the term ending September 30, 2022, reflect the new accounting standard, etc. By the application of this accounting standard, the accounting method used for sales of real estate fractional ownership investment products in the Real Estate Fund Business has changed from recording relevant company profit (service fees) as net sales to recording relevant sales volume as net sales. As a result of this matter, net sales increased significantly compared to the same quarter of the previous year, increase/decrease rate from the same period is not indicated. This change in the method of recording net sales has no impact on profits. The net sales for the first quarter of the fiscal year ended September 30, 2021, are from before the application of the Accounting Standard for Revenue Recognition. If the same method were used for sales in the Real Estate Fund Business, net sales (consolidated) would be 10,643 million yen. (2) Consolidated financial positionTotal assets Net assets Shareholders’ equity ratio Millions of yen Millions of yen 86,671 91,899 30,356 29,391 % 34.8 31.8 December 31, 2021 As of September 30, 2021 (Reference) Shareholders’ equity: December 31, 2021: 30,190 million yen As of September 30, 2021: 29,243 million yen (Note) The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the beginning of the first quarter of the current fiscal year. Accordingly, the figures for the first quarter of the term ending September 30, 2022, reflect the new accounting standard, etc. -1 -2. DividendsEnd of 1st Quarter End of 2nd Quarter End of 3rd Quarter End of fiscal year Total Dividend per share Yen －－Yen 0.00 0.00 Yen －－Yen 18.50 Yen 18.50 32.00 32.00 Fiscal year ended September 30, 2021 Fiscal year ending September 30, 2022 Fiscal year ending September 30, 2022 (Forecast) (Note) Revision to the latest dividend forecast: Yes 3. Forecast of consolidated financial results for the Fiscal Year Ending September 30, 2022(October 1, 2021 － September 30, 2022)(% figures show year-on-year change.) Net sales Operating income Ordinary income Net income per share Millions of yenMillions of yenMillions of yenMillions of yenFirst half Annual 27,000 44,000 % －－% 21.7 49.0 4,400 7,800 % 39.5 55.4 4,500 8,000 Yen 36.30 63.23(Note) 1. Revision to the latest consolidated financial results forecast: Yes (Note) 2. The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the beginning of the first quarter of the current fiscal year. Accordingly, the accounting method used for sales of real estate fractional ownership investment products in the Real Estate Fund Business has changed. As a result of this matter, net sales increased significantly compared to the same quarter of the previous year and the previous year, increase/decrease rate from the same period is not indicated. If the same method were used for sales in the Real Estate Fund Business, net sales (consolidated) for the first half of the fiscal year ended September 30, 2021, would be 18,569 million yen, and the net sales (consolidated) for the fiscal year ended September 30, 2021, would be 33,584 million yen. Profit attributable to owners of parent % 43.0 83.2 3,100 5,400 * Notes(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change in subsidiaries)(2) Applying of specific accounting of the consolidated quarterly financial statements(3) Changes in accounting policies, accounting estimates and retrospective restatementa) Changes in accounting policies based on revisions of accounting standardb) Changes in accounting policies other than ones based on revisions of accounting standardc) Changes in accounting estimatesd) Retrospective restatement(4) Number of issued and outstanding shares (ordinary shares): No : No : Yes : No : No : No Number of issued and outstanding shares at the end of the period (including treasury shares) Number of treasury sharesat the end of the periodAverage number of sharesduring the perioda) b)c)As of December 31, 2021 89,073,600 As of September 30, 2021 89,073,600 As of December 31, 2021 3,664,831 As of September 30, 2021 3,664,831 Three months ended December 31, 2021 85,408,769 Three months ended December 31,2020 85,352,730 -2 -Assets Current assets Cash and deposits Accounts receivable – trade Operational investment securities Supplies Equity underwritten Money held in trust(Aircraft for arrangement) Real estate for arrangement Other Total current assets Non-current assets Property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Deferred tax assets Other Total investments and other assets Total non-current assets Total assets Liabilities Current liabilities Accounts payable – trade Short-term borrowings Commercial papers Current portion of long-term borrowings Income taxes payable Advances received Contract liabilities Provision for bonuses Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Asset retirement obligations Retirement benefit liability Other Total non-current liabilities Total liabilities As of September 30, 2021 As of December 31, 2021 (Thousands of yen) 20,814,054 994,012 472,033 17,579 20,866,895 18,535,667 19,227,283 4,854,781 85,782,307 416,918 908,106 50,459 958,566 2,566,811 2,174,801 4,741,612 6,117,098 91,899,405 260,962 28,998,957 4,500,000 5,270,868 1,025,253 4,723,106 － 452,222 2,048,494 47,279,865 1,000,000 13,734,165 118,887 30,416 345,033 15,228,503 62,508,368 18,326,349 328,355 476,734 18,283 29,466,895 18,319,341 9,419,935 4,396,804 80,752,700 412,229 868,015 58,177 926,192 2,281,280 2,299,441 4,580,722 5,919,144 86,671,844 540,458 23,939,280 4,500,000 6,617,538 875,232 － 4,637,514 418,077 2,031,661 43,559,762 1,000,000 11,263,748 119,017 25,682 347,196 12,755,645 56,315,408 -3 -As of September 30, 2021 As of December 31, 2021 (Thousands of yen) Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Foreign currency translation adjustment Valuation difference on available-for-sale securities Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 3,095,874 2,999,433 25,638,905 △2,457,12629,277,086 △32,781△974△33,755147,706 29,391,037 91,899,405 3,095,874 2,999,433 26,570,544 △2,457,12630,208,725 △18,601－ △18,601166,312 30,356,436 86,671,844 -4 -Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Gain on investments in money held in trust Rental income from real estate Share of profit of entities accounted for using equity method Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Foreign exchange losses Rental expenses on real estate Depreciation Other Total non-operating expenses Ordinary profit Extraordinary losses Loss on retirement of non-current assets Loss on valuation of shares of subsidiaries and associates Provision for loss on transfer of business Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit (loss) attributable to non-controlling interests Profit attributable to owners of parent (Thousands of yen) Three months ended December 31, 2020 Three months ended December 31, 2021 3,824,698 1,152,665 2,672,032 1,687,636 984,396 183,649 324,106 36,472 71,407 － 45,258 660,894 215,028 186,282 348,618 2,675 192,122 6,307 951,035 694,255 － 5,797 242,700 248,497 445,757 437,468 △240,066197,402 248,355 △24,396272,751 15,673,219 10,595,829 5,077,390 1,672,060 3,405,330 50,387 185,884 125,435 27,446 26,596 2,130 417,880 96,839 146,694 － 20,698 － 1,067 265,300 3,557,910 2,355 4,508 － 6,863 3,551,047 724,776 288,890 1,013,667 2,537,380 17,850 2,519,530 -5 – (Thousands of yen) Three months ended December 31, 2020 Three months ended December 31, 2021 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 248,355 △57 36,010 △7,473 28,480 276,835 294,474 △17,639 2,537,380 974 4,504 10,431 15,910 2,553,290 2,534,683 18,606 – 6 –