results for first three quarters of fiscal 2016, ending ...• due to progress on the sales front,...

The firm of innovative financing

Results for First Three Quarters of

Fiscal 2016, ending September 30, 2016

FinTech Global IncorporatedMothers Stock Code: 8789

http://www.fgi.co.jp/

August 2016

Point ①⇒ Investment in project ownership and development; sales activities led to results in first quarter, then sluggish

thereafter; exited investments but with limited returns

• Sustained need for investors to fund solar power generation projects; increasingly fierce competition for projects

• To secure access to projects and maximize profit opportunities, began investing in projects at development stage in second quarter to complement arrangement

transaction services and project ownership

• First quarter delivered higher revenues through project ownership and sales (revenues of ¥980 million), but second and third quarters were sluggish

• Higher SG&A, due to increase in staffing and strategic medium-to long-term investments needed for the Metsä business

Point ②⇒ Improve profitability in real estate business

• Costs down thanks to consolidation and closure of sales offices; results in the black, mainly due to home sales

• Acquired all shares in real estate rental company and turned it into a subsidiary

Point ③⇒ Complete draft of Metsä business concept and business plan; transitioning to basic design stage(facilities that enable visitors to experience the world of the Moomins in a Northern European atmosphere)

• Expect to announce timing for start of operations before end of 2016

• Involved in regional promotion activities that include Metsä, through such efforts as tourist-oriented facility management services in Hanno, Saitama Prefecture

Copyright© FinTech Global Incorporated 1

Fiscal 2016 First Three Quarters: Consolidated Performance

Revenues 3,445 4,954 1,508 5,429 7,700

Gross profit 1,379 1,126 (253) 2,495 ー

Operating income(loss) (281) (851) (569) 115 230

Ordinary income(loss) (100) (1,096) (995) 237 180

Profit/(loss) attributable

to owners of the parent(87) (1,082) (994) 224 170

Fiscal 2015

Full Year

Fiscal 2016

Full Year

(Forecast)

(Millions of yen)

Fiscal 2015

First Three

Quarters (A)

Fiscal 2016

First Three

Quarters (B)

YOY Change

(B)-(A)

First Three Quarters Business Overview

Forward-looking statements, such as performance forecasts, are based on information available to management and on certain reasonable assumptions. Please note that various factors beyond

management’s control could cause actual results and other developments to be very different than expected.

① Sale of acquired assets in solar power generation project transactions

• Aggregate value of real estate available for sale and for sale in progress related to solar power generation projects stood at ¥990

million at the end of June 2016 ⇒ Sales, profitability

(Plan to increase real estate for sale in progress through additional investment at development stage)

In addition to the above, intend to book revenue primarily through anticipated arrangement transactions, ownership in and planned

sale of power generation facility projects

Measures to increase arrangement transactions and ensure revenue status

• Increase number of arrangements formed through use of outside resources to screen prospective deals and enhanced efficiency in due

diligence process, and aim for greater closure precision through more thorough transaction control

• Expand solicitation route to attract investor attention to power generation projects

②Arrangements, asset management services, exits and other aspects of real estate projects, including

assisted-living housing for seniors

• Attract new demand for services, including arrangements for assisted-living housing for seniors, anticipate exits on existing projects

where asset management services are provided, and also consider exits on current corporate investments to book returns.

③Improved profitability in real estate business

• Enhanced marketing capabilities and a review of expenses led to a profit position in the third quarter. Will strive to reinforce

profitability with a focus on sales of detached homes.


Despite delayed progress on the performance front, as of the third quarter, no change to the full-year performance forecast will be made, given current project formation status and future business development.

Future Business Development

Forward-looking statements, such as performance forecasts, are based on information available to management and on certain reasonable assumptions. Please note that various factors beyond

management’s control could cause actual results and other developments to be very different than expected.

(Millions of yen)Fiscal 2015

First Three Quarters

Fiscal 2016

First Three QuartersYOY Change

Principal

Consolidated Subsidiaries

Revenue 785 1,387 602 FGI, FinTech Global Trading(FGT)(Note)

Operating income (loss) 542 274 (267) FinTech Asset Management Inc.(FAM)

Revenue 2,213 3,557 1,343

Operating income (loss) (45) 37 83

Revenue 34 17 (17)

Operating income (loss) (74) (84) (10)

Revenue 423 - (423)

Operating income (loss) (0) - 0

Revenue (11) (7) 3

Operating income (loss) (704) (1,078) (374)

Revenue 3,445 4,954 1,508

Operating income (loss) (281) (851) (569)

Moomin Monogatari Ltd.(Note)

Adacotech Incorporated(Note)

Public Management Consulting Corporation(PMC)(Note)

Okayama Corporation(Note)

Better Life Support Holdings Co., Ltd.

Better Life Support Co., Ltd. (BELS)

Unihouse Co.,Ltd. , 　Better Life House Co.,Ltd.

Better Life Property Co.,Ltd.(Note)

Amount Booked on

Consolidated

Statement of Income

Others

Construction

Business

Adjustment

Investment

Banking Business

Real Estate

Business

1

2

1

2

3

3

• To deal flexibly with competition to secure excellent projects and investor needs, FGI promoted a strategy to secure excellent projects while concurrently providing

arrangement transaction services and introduce and sell investors on opportunities in these projects. Also began picking up projects at the development stage.

• In the Metsä business, set up the Metsä Planning Office, an in-house section dedicated to the Metsä project. Drafted business concept and basic plan, and with aim to

verify content, will move into basic design stage. Handling facility management services as demonstration to local government on viability of tourist-oriented business

in Hanno. Promoting regional development that includes Metsä project.

• Promoted shift toward e-commerce in real estate business.

• Marked favorable sales of detached homes in April-to-June quarter. Consolidation/closure of sales offices caused one-time expenses, but review of expenses led to a

drop in SG&A nonetheless and buoyed profitability. Segment shifted into the black with operating profit. Sluggish conditions in the market for newly built

condominiums affected prices and pulled real estate introduction revenues down.

• Due to progress on the sales front, real estate for sale and real estate for sale in progress totaled ¥2,151 million, down 11.9% from the end of fiscal 2015.

• Moomin Monogatari, working with FGI’s Metsä Planning Office, drafted Metsä business plan and examined content. Began supplying Moomin-related goods under

program launched by city of Hanno that utilizes Japan’s furusato nozei system, a “hometown tax” donation system.

• Adacotech pursued opportunities with major corporations for its IoT-related data analysis business as well as an embedded detection system applicable to products

of major IP (Internet protocol) camera makers, and attracted considerable attention from companies involved in social infrastructure.


Note: Revenues include inter-segment transactions.Business Summary by Segment

Note: FinTech Global Trading, Moomin Monogatari and Adacotech fall under the scope of consolidation from the second quarter of fiscal 2015. Better Life Property falls under the scope of

consolidation from the third quarter of fiscal 2016.

Okayama Corporation is excluded from the third quarter of fiscal 2015, and Public Management Consulting Corporation is excluded from the first quarter of fiscal 2015.

830

2,440 2,712 2,7332,151

211

1,180 1,3091,817

1,082

514

516520

628

829

652

645662

729

1,435

1,181

1,0961,079

951

1,084

581

740 567

535

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2014.9 2015.9 2015.12 2016.3 2016.6

Key Factors of Change in First Three Quarters of Fiscal 2016 (Total amount: Up 41.5%)• Principal investment: Several exits. Increased investment in “fintech” companies, which integrate finance and information technology

• Fixed assets (real estate rental properties): Real estate for rent handled by recently acquired and renamed Better Life Properties, now a consolidated subsidiary

• Real estate for sale (investment banking business): Increase in solar power generation facilities (including projects under development), acquisition of property

for self-storage facilities

• Real estate for sale (better life support business): Progress in sales of detached homes led to reduced inventory

Changes in Investments and Loans (Consolidated)

（Millions of Yen）

4,181

7,896

5,582

6,891

Copyright© FinTech Global Incorporated

6,872

4

Fixed assets (better life support, real estate

rental)

Notes:

• Principal investment is the total of investments in

securities, trade, investments in securities, equity in

affiliated companies, investments in capital to

affiliated companies, and investments in capital. The

amount excludes investments into venture capital

funds.

• Corporate loans exclude receivables that have been

fully provided for in allowance for doubtful accounts.

• Real estate for sale (better life support business) includes real estate for sale in progress.

Venture capital fund

(Investment into FinTech GIMV Fund)

Principal investment (investments

using capital sourced within FGI

Group)

Corporate loans

Fixed assets (Metsä business)

Real estate for sale (investment

banking business)

Real estate for sale (better life

support business)

Fiscal 2016

Status of FGI Investment Portfolio (Companies in the Spotlight)

The current status of key investments in FGI’s portfolio is described below.

For performance details on consolidated subsidiaries, please refer to Business Summary by Segment on page 3, and Summary of Group

Company Results (Non-Consolidated Basis) on page 15.


Toranomon Ham K.K.

Toranomon Ham holds exclusive rights from The Honey Baked Ham Company, LLC® to sell HoneyBaked®

products in various business areas in Japan. HoneyBaked ® is one of the largest ham brands in the United

States. The company sells products directly online and through retail stores, including department stores. The

first store in Japan opened in August 2015 in Minato-ku, Tokyo.

Mirai Energy Partners Co., Ltd.

Axismotion inc.

Axismotion debuted PM Assist, a business support service to help property owners fill vacancies in their

buildings and manage their properties, in April 2014, and as of June 30, 2016, the company had signed up 50

real estate management companies, including some of the majors. Service application continues to grow. In

2016, the company formed a business and capital alliance with The Asahi Shimbun Company, a leading daily

newspaper in Japan, and launched support for property managers through Asahi Service Anchor stations, a

nationwide network that ensures delivery of the paper to customers.

Mirai Energy Partners is engaged in joint improvement projects—business empowerment projects—at mid-

sized hydroelectric plants operated by domestic hydroelectric power providers. Special purpose companies

established with providers acquire power generation assets and then promote feed-in-tariff projects involving

these providers through schemes to utilize capital from domestic and international investors in investment

and loans. In March 2015, the company established Mirai Hydropower Investment Business Partnership,

which invests in small and midsized hydroelectric facilities.

(unconsolidated subsidiary)


Key companies in the investment portfolio of FinTech Global Trading are presented below.


Ideaquest

Ideaquest is a venture company that started up at Keio University. Its focus is on developing systems to

watch over the elderly and for basic medical research. Products include Owlsight, a sensor-equipped non-

contact and non-constraint bedside safety monitoring system, and respiratory function analysis systems for

adults and newborns. The company maintains a cutting-edge position, having been recognized by the

Ministry of Economy, Trade and Industry under a program to promote the development and introduction of

robot caretaking equipment. Sales of the Owlsight system for social welfare applications began in October

2015.

J21 introduces and expands demand in Japan for leading-edge technologies developed by high-tech venture

firms in Israel.

The company draws on more than 20 years’ experience in the exchange and trade of high-tech products from

Israel, notably, master distributor status for a rear-impact prevention system from Mobileye N.V., a global

leader in sophisticated driver assistance systems, and products from Compulocks Brands Inc., a leader in computer theft prevention solutions.

Queen Bee Capital

Queen Bee Capital, a funds transfer service provider registered with the Kanto Regional Financial Bureau,

is a fintech venture operating and promoting PayForex, an online currency exchange and overseas wire

transfer service, PayeeLink, an integrated service handling all aspects of international payment collection

and settlement.

Through ties-ups with local banks in all countries and a highly scalable original system, the company

achieves secure transfer of funds and provides highly convenient currency exchange and overseas wire transfers faster and more economically than other financial institutions.

J21 Corporation


FinTech GIMV Fund (FGF) is a venture capital fund investing in companies involved in life sciences and information, communication

and technology. The fund’s lead investors are FGI, Gimv NV, Belgium’s largest private equity investment firm, and the Development

Bank of Japan.


SFJ Pharmaceuticals, which provides innovative fund-raising approaches under unique co-development

partnering model for world-class pharmaceutical companies, maintains a collaborative agreement with major

drugmaker Pfizer Inc. on a promising new drug candidate. Joint development of a cancer drug with Eisai Co.

Ltd., has received approval in several countries as an appropriate treatment for thyroid cancer, and delivered

successful results in 2015. Currently, several cancer treatment development projects are in Phase III clinical

trials.

Histogenics Corporation

Histogenics is involved in the business of regenerative medicine for neocartilage replacement to repair articular

damage to the knee caused by sports injuries, accidents or other orthopedic conditions. The company is listed on

the NASDAQ market—HSGX—in the United States. Currently, the company has a candidate drug in Phase III

clinical trials.

SFJ Pharmaceuticals Inc.

0

2,000

4,000

6,000

8,000

10,000

12,000

2011.9 2012.9 2013.9 2014.9 2014.12 2015.3 2015.6 2015.9 2015.12 2016.3 2016.6

サ高住以外の不動産

サ高住

企業

10,555

Other real estate than assisted-living housing for seniors

Assisted-living housing for seniors

Corporations

8

10,303

• In fiscal 2016, the emphasis is on attracting new demand for services applied toward multi-purpose facilities in regional cities

and housing complexes in city centers. Level of assets under management was 42.4% higher than at the end of fiscal 2015

8,392

7,410

Copyright© FinTech Global Incorporated

Investment

targets

Changes in Assets under Management at FinTech Asset Management

(Millions of yen)

Fiscal 2016

Assets

Fiscal 2016

First Three

Quarters

Change

Current assets 10,507,445 7,959,466 (2,547,978)

Cash and time deposits 4,617,855 1,553,425 (3,064,429)

Notes and accounts receivable,

trade237,393 64,185 (173,207)

Investments in securities,

trade1,565,930 1,356,674 (209,255)

Loans receivable, trade 761,902 793,762 31,860

Real estate for sale 1,515,740 2,080,760 565,019

Real estate for sale in progress 1,135,958 1,887,590 751,631

Deferred tax assets 4,342 6,711 2,368

Other current assets 870,335 393,769 (476,566)

Allowance for doubtful assets (202,015) (177,412) 24,602

Noncurrent assets 1,450,659 2,843,115 1,392,456

Property, plant and equipment 841,025 2,324,752 1,483,726

Intangible fixed assets 129,704 103,270 (26,434)

Investments and other assets 479,929 415,093 (64,836)

Total assets 11,958,104 10,802,582 (1,155,522)

Fiscal 2015Liabilities

Fiscal 2016

First Three

Quarters

Change

Current liabilities 3,109,925 2,221,910 (888,014)

Notes and accounts payable,

trade41,639 3,834 (37,805)

Short-term loans payable 2,372,557 1,669,876 (702,681)

Current portion of bonds 46,000 38,000 (8,000)

Current portion of long-term

loans payable163,284 208,102 44,818

Income taxes payable 41,396 10,326 (31,069)

Accrued employee bonuses 42,466 30,697 (11,769)

Other current liabilities 402,581 261,074 (141,506)

Noncurrent liabilities 968,294 1,954,272 985,977

Bonds payable 98,000 75,000 (23,000)

Long-term loans payable 691,779 1,583,295 891,516

Net defined benefit liability 105,646 103,869 (1,777)

Deferred tax liability 37,606 146,512 108,905

Other noncurrent liabilities 35,261 45,595 10,333

Total liabilities 4,078,219 4,176,182 97,963

Fiscal 2015

１

２

２

１

１


３

３

• Increase in real estate due to additional acquisition of land for Metsä project and

acquisition of real estate rental company turned into subsidiary

• Detached homes: Down, due to sales activity

• Solar power generation facilities: Up due new investment following sale of

other investment

• Self-storage: Up due to new acquisition activity

• Increase in detached home development projects through aggressive acquisition of

land

• Increase due to start of solar power facility development project

• Increase due to purchase of land for self-storage and efforts to develop property

４

４

• Executed new investment into “fintech”-related companies

• Balance down due to sale of equity holdings and exits from investment fundsNet assets

Shareholders’ equity 7,940,881 6,757,674 (1,183,207)

Common stock 4,548,138 4,548,582 444

Additional paid-in capital 2,125,950 2,122,181 (3,769)

Retained earnings 1,266,792 86,909 (1,179,883)

Accumulated other

comprehensive income(118,455) (185,877) (67,422)

Subscription rights to shares 16,729 29,028 12,299

Non-controlling interests 40,728 25,574 (15,153)

Total net assets 7,879,885 6,626,399 (1,253,485)

Total liabilities and net assets 11,958,104 10,802,582 (1,155,522)

Consolidated Balance Sheets(Thousands of yen)

Fiscal 2016

First Three QuartersChange

Revenues 3,445,881 4,954,260 1,508,378

Cost of revenues 2,066,561 3,827,978 1,761,416

Gross profit 1,379,319 1,126,282 (253,037)

Selling, general and administrative expenses 1,660,978 1,977,283 316,305

Operating income/(loss) (281,658) (851,001) (569,343)

Other income 210,734 25,613 (185,120)

Other expenses 29,677 270,915 241,238

Ordinary profit/(loss) (100,601) (1,096,303) (995,702)

Extraordinary profit 23,930 1,415 (22,514)

Extraordinary loss 2,280 6,943 4,663

Income before income taxes (78,951) (1,101,831) (1,022,880)

Income taxes 18,359 (211) (18,570)

Profit /(loss) (97,310) (1,101,620) (1,004,309)

Profit /(loss) attributable to non-controlling

interests(9,327) (14,713) (5,385)

Profit /(loss) attributable to owners of parent (87,982) (1,082,735) (994,752)

Fiscal 2015


１

２

１

２


３

３

(Thousands of yen)

Revenues and cost of revenues were both considerably higher year-on-year, owing to the purchase and sale of assets, with an emphasis on

solar power generation facilities.

Personnel costs were up, owing to efforts to reinforce staffing levels in the investment banking business, including Metsä-related operations. Upfront investments into the Metsä project caused an increase in handling charges.

Booked ¥190 million in foreign exchange losses.

Consolidated Statements of Income

Reference Materials

11

• Quarterly Non-Consolidated Financial Statements (Balance Sheets and Statements of Income)

• Changes in Financial Indicators (Consolidated)

• Summary of Group Company Results (Non-Consolidated Basis)


(Thousands of yen)

Quarterly Non-Consolidated Balance Sheets

Assets

Fiscal 2016

First Three

Quarters

Change

Current Assets 8,092,919 5,866,687 (2,226,232)

Cash and time deposits 4,178,000 859,681 (3,318,319)

Accounts receivable, trade 160,300 17,113 (143,186)

Investment securities, trade 1,505,339 1,110,575 (394,763)

Loans receivable, trade 782,862 846,422 63,560

Short-term loans, receivable 924,050 2,064,251 1,140,201

Real estate for sale — 818,036 818,036

Real estate for sale in progress — 172,144 172,144

Other current assets 789,108 240,555 (548,552)

Allowance for doubtful assets (246,741) (262,093) (15,352)

Noncurrent assets 1,579,563 1,856,442 276,879

Property, plant and equipment 613,387 720,461 107,074

Intangible assets 9,034 19,266 10,231

Investments and other assets 957,141 1,116,714 159,573

Total assets 9,672,483 7,723,130 (1,949,353)

Fiscal 2015 Liabilities

Fiscal 2016

First Three

Quarters

Change

Current liabilities 1,559,865 662,128 (897,737)

Accounts payable-trade 35,451 1,620 (33,831)

Short-term loans payable 1,220,500 480,401 (740,099)

Current portion of long-term debt 17,268 37,248 19,980

Accounts payable-others 166,592 43,281 (123,311)

Deposits received 31,463 23,316 (8,146)

Advances received 2,978 31,742 28,763

Accrued employee bonuses 30,703 23,774 (6,929)

Others 54,908 20,744 (34,164)

Long-term liabilities 266,403 420,483 154,079

Long-term loans payable 138,929 312,778 173,849

Provision for retirement benefits 73,329 73,443 114

Others 53,776 34,262 (19,514)

Total liabilities 1,826,269 1,082,612 (743,657)

Fiscal 2015

Net Assets

Shareholders' equity 7,948,398 6,797,366 (1,151,031)

Capital stock 4,548,138 4,548,582 444

Additional paid-in capital 2,113,361 2,113,805 444

Retained earnings 1,286,898 134,978 (1,151,920)

Valuation difference on available-

for-sale securities(118,914) (185,877) (66,963)

Subscription rights to shares 16,729 29,028 12,299

Total net assets 7,846,213 6,640,517 (1,205,695)

Total liabilities and net assets 9,672,483 7,723,130 (1,949,353)


Fiscal 2016

First Three QuartersChange

Revenues 648,730 1,311,125 662,395

Cost of revenues 163,656 1,038,980 875,323

Gross profit 485,073 272,145 (212,928)

Selling，general and administrative expenses 787,422 1,127,855 340,433

Operating income/(loss) (302,348) (855,709) (553,361)

Other income 233,719 66,414 (167,305)

Other expenses 52,262 275,065 222,802

Ordinary income/(loss) (120,891) (1,064,360) (943,468)

Extraordinary profit 269,903 1,165 (268,737)

Extraordinary loss 10,930 6,817 (4,113)

Income before income taxes 138,081 (1,070,012) (1,208,093)

Income taxes (24,699) (15,239) 9,460

Net income/(loss) 162,780 (1,054,772) (1,217,553)

Fiscal 2015


(Thousands of yen)

Quarterly Non-Consolidated Statements of Income

連結業績の推移


Net Revenue (millions of yen) 6,988 2,038 1,603 3,911 5,429 4,954

Gross profit (millions of yen) 3,509 908 1,468 2,398 2,495 1,126

Ordinary income (loss) (millions of yen) 1,220 (915) 88 684 237 (1,096)

Profit /(loss) attributable to owners

of parent(millions of yen) 1,404 (1,274) 182 923 224 (1,082)

Net assets (millions of yen) 4,870 3,632 2,716 5,534 7,879 6,626

Total assets (millions of yen) 7,682 6,417 4,770 7,452 11,958 10,802

Net assets per share (yen) 31.52 19.82 22.23 37.41 48.31 40.59

Net income (loss) per share (yen) 11.69 (10.70) 1.52 6.92 1.48 (6.69)

Diluted net income (loss) per share (yen) 11.68 － 1.52 6.89 1.47 －

Equity to total asset ratio (%) 48.9 36.8 56.4 73.9 65.4 60.8

Equity to net income ratio (%) 45.3 (41.7) 7.2 22.5 3.4 －

Price earning ratio (PER) (times) 2.6 － 21.9 9.2 84.7 －

Cash flow from operating activities (millions of yen) 1,953 959 (464) (2,208) (1,791) －

Cash flow from investing activities (millions of yen) (631) 80 85 509 (644) －

Cash flow from financing activities (millions of yen) (413) (233) (128) 2,065 4,761 －

Cash and cash quivalents at the end

of the fiscal year(millions of yen) 1,711 2,522 1,644 2,024 4,612 －

Number of employees(consolidated)

(part-time employees)(employees) 70（17） 60(19) 51(13) 109(7) 117(8) 113(17)

Number of employees(non-

consolidated)(part-time employees)(employees) 15（2） 20(3) 26(3) 24(3) 38(3) 45(7)

First three

quarters

Fiscal 2016

Fiscal 2015Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014

FGI executed a stock split on April 1, 2014, that split each share into 100 shares. Consequently, net assets per share, net income (loss) per share and net

income per share after adjustment for diluted shares have been calculated as if the aforementioned stock split had occurred at the beginning of fiscal 2011.

フィンテックグローバル証券

パブリックマネジメントコンサルティング

15Copyright© FinTech Global Incorporated

Segment: Investment Banking Business Segment: Real Estate Business

Fiscal

2016　 Fiscal 2016

1st half 2nd half Full year 1st half 2nd half Full year 3Q 　 1st half 2nd half Full year 1st half 2nd halfFull

year3Q

Revenue 1,310 313 1,623 531 932 1,464 1,311 　 Revenue 209 233 442 204 359 564 375

Gross profit 1,178 188 1,367 376 895 1,271 272 Gross profit 169 192 362 136 294 431 234

Ordinary income

(loss)790 (219) 571 28 274 303 (1,064) 　

Ordinary income

(loss)(9) 13 3 (44) 35 (9) (35)

Segment: Investment Banking Business Segment: Real Estate Business Segment: Real Estate Business

Fiscal

2016　 Fiscal 2014

Fiscal

2016Fiscal 2014

Fiscal

2016

1st half 2nd half Full year 1st half 2nd half Full year 3Q 　2nd half

(From Apr. to

Sept. 2014)

1st half 2nd half Full year 3Q

2nd half

(From Apr. to

Sept. 2014)


Revenue 179 86 265 30 55 85 69 　 Revenue 39 221 205 426 242 152 12 1 14 -

Gross profit 179 80 260 30 55 85 66 Gross profit 39 221 205 426 242 152 12 1 14 -

Ordinary income

(loss)105 21 126 (1) 26 25 10

Ordinary income

(loss)(63) (22) (50) (72) (6) 23 (3) (10) (14) (4)

Segment: Investment Banking Business Segment: Real Estate Business Segment: Real Estate Business

Fiscal

2016Fiscal 2014

Fiscal

2016Fiscal 2014

Fiscal

2016

3Q

2nd half

(From Apr. to

Sept. 2014)


2nd half

(From Apr. to

Sept. 2014)


Revenue 107 Revenue 20 670 1,400 2,071 2,962 321 239 173 412 -

Gross profit 90 Gross profit 17 56 89 146 252 30 8 8 16 -

Ordinary income 29Ordinary income

(loss)(11) (12) (27) (40) 29 8 6 2 9 11

Segment: Other Segment: Other Segment: Real Estate Business

Fiscal

2015

Fiscal

2016Fiscal 2015

Fiscal

2016Fiscal 2016

Full year

(From Jan. to

Sept. 2015)

3Q

Full year

(From Jan. to

Sept. 2015)

3Q

3Ｑ

(From Apr. to

Jun. 2016)

Revenue 0 0 19 14 Revenue 41

Gross profit 0 △0 19 14 Gross profit 41

Ordinary income

(loss)(95) (80) (2) (5)

Ordinary income

(loss)(3)

Under consolidation from April 2016.

Three Oak

Better Life

Property

Ordinary income

(loss)

Gross profit

Revenue

Fiscal 2015

160

95

Under consolidation from April 2014. Dissolved in September 2015.

Ordinary income

Gross profit

Revenue

FinTech Global

Fiscal 2014 Fiscal 2015Better Life

Support (BELS)

Fiscal 2014


Fiscal 2015

Ordinary income

(loss)

FinTech Asset

Management

(FAM)

Fiscal 2014 Fiscal 2015

Unihouse

Fiscal 2015

Fiscal 2015, ended September 30, 2015, was 15 months long (second half lasting nine months), due to a

change in fiscal year-end.

Jonan Development

On June 30, 2014, changed corporate name from Unihouse to Jonan Kaihatsu.

Under consolidation from January 2015.

Fiscal 2015

In June 2014, Unihouse Holdings undertook a business transfer, including

transfer of corporate name, from Jonan Kaihatsu (old Unihouse) and

subsequently changed its name to Unihouse

FinTech Global

Trading

Fiscal 2015

Better Life House

Fiscal 2015

Full year

(From Jan. to Sept. 2015)

171

Completed liquidation in February 2016.

Moomin

Monogatari


Adacotech

Revenue

Gross profit

Under consolidation from January 2015. Under consolidation from April 2014.

Dissolved in September 2015.

Summary of Group Company Results (Non-Consolidated Basis)

(Millions of yen)

16

Disclaimer The firm of innovative finance

Certain statements made in these materials, including some management targets, may contain forward-

looking statements which reflect management's views and assumptions. Management targets represent

goals that management will strive to achieve through the successful implementation of business

strategies for the FGI Group. The Group may not be successful in implementing its business strategies,

and management may fail to achieve its targets. Management targets and other forward-looking

statements involve current assumptions of future events as well as risks and uncertainties that could

significantly affect expected results, including adverse economic conditions in Japan, the United States

or other countries; declining real estate and/or stock prices; additional corporate bankruptcies or

additional problems in business sectors to which Group companies lend; difficulties or delays in

integrating businesses and achieving desired cost savings; increased competitive pressures; changes in

laws and regulations applicable to the Group’s businesses; and adverse changes in Japanese economic

policies.

To the extent materials containing forward-looking statements remain in available documents, we have

no obligation nor the intent to update such forward-looking statements.

results for first three quarters of fiscal 2016, ending ...• due to progress on the sales front,...

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