GA technologies : Summary of Consolidated Financial Results for the Nine Months Ended July 31, 2020(Based on Japanese GAAP)

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 Nine Months Ended July 31, 2020 (Based on Japanese GAAP)

			September 14, 2020
Company name:	GA technologies Co., Ltd.	Stock exchange listing:	Tokyo Stock Exchange
Stock code:	3491	URL:	http://www.ga-tech.co.jp/
Representative:	RYO HIGUCHI, President and Chief Executive Officer
Contact person:	TAKEO HASHIMOTO, Executive Officer and Chief Accounting Officer	TEL：[phone]
Scheduled date to file Quarterly Securities Report:	September 14, 2020

Scheduled date to commence dividend payments:

Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results meeting:

-

Yes

Yes (for institutional investors and analysts, in Japanese)

											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended July 31, 2020 (November 1, 2019 to July 31, 2020)
(1) Consolidated operating results (cumulative)					(Percentage figures are the changes from the same period prior year)
		Net sales				Operating profit		Ordinary profit		Profit attributable to
								owners of parent
		Million yen		%			Million yen		%		Million yen		%			Million yen		%
Nine months ended July 31, 2020		39,790		53.8		684		50.9			522		73.0			142		30.3
Nine months ended July 31, 2019		25,878		-		453		-			301		-			109		-
(NOTE) Comprehensive income: Nine months ended July 31, 2020		132 million yen (25.0 %)
	Nine months ended July 31, 2019		105 million yen (-%)
		Earnings per share		Diluted earnings per share
						Yen							Yen
Nine months ended July 31, 2020				14.87							13.99
Nine months ended July 31, 2019				12.45							11.29
(2) Consolidated financial position
		Total assets					Net assets			Equity ratio
		Million yen			Million yen					%
As of July 31, 2020		15,625						6,350					40.6
As of October 31, 2019		11,839						5,757					48.6
(REFERENCE) Shareholders' equity:As of July 31, 2020		6,350 million yen
	As of October 31, 2019		5,754 million yen
2. Cash dividends
								Annual dividends per share
		1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
		Yen			Yen				Yen					Yen			Yen
Year ended October 31, 2019				-			0.00					-				0.00			0.00
Year ending October 31, 2020				-			0.00					-
Year ending October 31, 2020 (Forecast)																-			-

(NOTE) Revision of dividend forecast from recently announced figures: Not applicable

The dividend forecast for the year ending October 31, 2020 has not yet been determined.

1

3. Forecast of consolidated financial results for the fiscal year ending October 31, 2020 (November 1, 2019 to October 31, 2020) (Percentage figures are the changes from the same period prior year)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

61,000

55.3

1,800

50.9

1,530

50.0

770

50.9

80.41

(NOTE) Revisions to the forecast of financial results from recently announced figures: Not applicable

4. Notes

(1) Changes in significant subsidiaries during the nine months ended July 31, 2020

Not applicable

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(2) Application of special accounting methods for the preparation of quarterly consolidated

Applicable

financial statements:

(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:

Not applicable

Changes in accounting policies due to other reasons:

Applicable

Changes in accounting estimates:

Applicable

Restatement of prior period financial statements:

Not applicable

(4) Number of issued shares (common stock)

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

	As of July 31, 2020	9,690,225	shares	As of October 31, 2019	9,432,855	shares
Total number of treasury shares at the end of the period:
	As of July 31, 2020	207	shares	As of October 31, 2019	99	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year):
	Nine months ended July 31, 2020	9,604,136	shares	Nine months ended July 31, 2019	8,799,541	shares

2

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

			(Million yen)
		As of October 31, 2019	As of July 31, 2020
Assets
Current assets
Cash and deposits	4,279	3,911
Accounts receivable - trade	37	115
Real estate for sale	682	2,369
Costs on uncompleted construction contracts	3	9
Supplies	22	27
Advance payments - trade	203	240
Prepaid expenses	198	242
Other	127	154
Allowance for doubtful accounts	(42)	(88)
Total current assets	5,512	6,982
Non-current assets
Property, plant and equipment	1,072	1,029
Intangible assets
Goodwill	1,707	2,802
Software	241	2,395
Software in progress	1,648	120
Customer Relationship	724	881
Other	8	6
Total intangible assets	4,330	6,207
Investments and other assets	923	1,405
Total non-current assets	6,327	8,642
Total assets	11,839	15,625
Liabilities
Current liabilities
Short-term loans payable	100	300
Current portion of long-term loans payable	734	967
Current portion of bonds	40	40
Accounts payable - other	640	710
Income taxes payable	378	186
Accrued consumption taxes	134	180
Provision	27	26
Other	668	1,195
Total current liabilities	2,724	3,607
Non-current liabilities
Bonds payable	150	2,120
Long-term loans payable	2,179	2,505
Deferred tax liabilities	239	295
Provision	63	60
Asset retirement obligations	301	301
Other	424	384
Total non-current liabilities	3,358	5,666
Total liabilities		6,082	9,274

3

			(Million yen)
		As of October 31, 2019	As of July 31, 2020
Net assets
Shareholders' equity
Capital stock	1,156	1,168
Capital surplus	3,466	3,918
Retained earnings	1,135	1,278
Treasury shares	(0)	(0)
Total shareholders' equity	5,758	6,364
Accumulated other comprehensive income
Valuation difference on available-for-sale	(3)	(14)
securities
Total accumulated other comprehensive income	(3)	(14)
Share acquisition rights	2	0
Total net assets	5,757	6,350
Total liabilities and net assets		11,839	15,625

4

Quarterly Consolidated Statements of Income (cumulative) and Comprehensive Income (cumulative) Quarterly Consolidated Statements of Income (cumulative)

			(Million yen)
		Nine months ended	Nine months ended
		July 31, 2019	July 31, 2020
Net sales	25,878	39,790
Cost of sales	21,194	33,360
Gross profit	4,683	6,429
Selling, general and administrative expenses	4,230	5,745
Operating profit	453	684
Non-operating income
Interest income	0	0
Other	7	10
Total non-operating income	7	11
Non-operating expenses
Interest expenses	43	48
Commission fee	104	88
Bond issue expenses	4	21
Other	6	15
Total non-operating expenses	159	173
Ordinary profit	301	522
Extraordinary losses
Impairment loss	67	53
Loss on sales and retirement of non-current assets	3	0
Loss on cancellation of rental contracts	42	-
Other	7	-
Total extraordinary losses	121	53
Profit before income taxes	180	468
Income taxes	70	325
Profit	109	142
Profit attributable to owners of parent		109	142

5

Quarterly Consolidated Statements of Comprehensive Income (cumulative)

		(Million yen)
	Nine months ended	Nine months ended
	July 31, 2019	July 31, 2020
Profit	109	142
Other comprehensive income
Valuation difference on available-for-sale securities	(3)	(10)
Total other comprehensive income	(3)	(10)
Comprehensive income	105	132
Comprehensive income attributable to
Comprehensive income attributable to owners of	105	132
parent

6