Supplementary Materials
Financial results briefing for Q1 FY2021

February 12, 2021
64 th Investor Meeting

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

Our Track Record of Growth
The result of management policy focused on sustainable growth（Mil. Yen）

（Mil. Yen）

Revenue※1

40,00039,792+20.4％

35,00014,00030,000EBITDA

14,00014,719※2+24.3%

12,00010,38810,00025,00012,985+25.0%

12,00033,046

（Mil.
Yen）
（百万円）

Operating Profit

11,83910,000

8,000

8,000

6,000

6,000

4,000

4,000

5,000

2,000

2,000

0

0

0

J-GAAPJ-GAAP

IFRS
※3,4

IFRS

J-GAAP

20/9

21/9E

19/9

18/9

17/9

16/9

15/9

14/9

13/9

12/9

11/9

10/9

09/9

08/9

20/9

21/9E

19/9

18/9

17/9

16/9

15/9

14/9

13/9

12/9

11/9

10/9

20/9

21/9E

19/9

18/9

17/9

16/9

15/9

14/9

13/9

12/9

11/9

10/9

09/9

08/9

10,00009/9

15,00008/9

20,000IFRS※3Operating stores

Annual TRX Volume※3

Annual TRX Value

160,535

2.86 bn¥6.4 trillion（※1） Macro Kiosk has been deconsolidated in May 2020 and the revenue figures above present the continuing operations only and exclude the discontinued operations.
（※2） EBITDA under J-GAAP is calculated as the sum total of operating profit, depreciation and amortization; and EBITDA under IFRS is calculated as sum total of operating profit
and depreciation.
（※3） The number of operating stores is at the end of December 2020. Transaction volume and transaction value are the figures from January 2020 to December 2020; transaction
volume and transaction value include the figures of GMO Financial Gate Group.
（※4） Figures exclude a significant increase in operating stores from a specific merchant. If included, the number of operating stores is 214,404 stores as of end of December 2020.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

2

Three Business Segments
Sustain an over 25% OP growth from the expansion of mainstay
payment processing business and its peripheral businesses
Payment Enhancement
Business

Revenue
Breakdown

2％

Online Advertising Service
SSL Service
Delivery Service
etc.

Operating Profit
Breakdown（Actual data for Q1 FY2021)

1%

12%
25％
73％

87%

Money Service Business(MSB)

Payment Processing
Business

GMO Payment after Delivery/
GMO Kake-Barai
Remittance Service
Overseas Lending
Early Payment Service
B2B Factoring
Transaction Lendingetc.

Online Payment※※
Offline Payment (GMO-FG)
Ginko Pay/Processing
System Developmentetc.

※ Online payment includes pay-as-you-go and recurring payment and Z.com Payment (overseas payment service).
GMO-FG stands for GMO Financial Gate consolidated subsidiaries.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

3

Our Business Eco-system
An eco-system of our value-added services complementing our main
business to achieve mutual growth
Increase inpayment processing

Payment processing(Gross margin 85％)

Payment
Processing
Business

Money Service
Business
Payment
Enhancement
Business

Customer growth
Main Business

Value-added business that contributeto growth of the main business

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

4

Payment Processing Business: Business scope of the
major consolidated subsidiaries
Connecting merchants and payment companies through ‘contracts,’‘payment information,’ and ‘money flow’.
Consumer

Merchant※１

160,535 stores(End of December 2020)

EC
B2B・B2C・C2C

OnlinePayment

PC

OfflinePayment

Taxes, Dues, Utility
NHK, National Tax
Agency, Automobile Tax
Municipalities (e.g. Tokyo)

40+ Credit cardcompanies

Account Transfer
Carrier billing
Bank transfer
E-money
Cash on Delivery

Service/Commerce
Digital content
Donation, Travel,
Insurance

GMO Payment
After Delivery
QR code※2

80,686 terminals(End of December 2020)

Payment Service
ProvidersConvenience store

Subscription
Video streaming
Software, Apparel
Smartphone

GMO-PG consolidated
subsidiaries

ID-based payment
Multi-currency
Pre-paid

Payment Terminal

etc.

※１ Figures exclude a significant increase in operating stores caused by a specific merchant. If included, the number of operating stores is 214,404 stores as of end of December 2020.
※２ Operating payment terminals: starting from FY2021 the figure presents the combined number of payment terminals and embedded-type payment terminals, sold through sales
partners.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

Payment Processing Business:
Revenue model of credit card payment processing
Revenue model determined by merchant size and type
■ Four Revenue Streams (i.e. Business Models)■Revenues by merchant type/size

Initial (Initial revenue)①②

Initial introduction fees
Coefficient: Number of new merchants acquired
Revenue: Number of new merchants acquired
× _Yen (paid once at acquisition)

Municipalities
Enterprise① ② ③

Stock (Fixed revenue)
Fixed Monthly Revenue
Coefficient: Number of merchants
Revenue： Operating merchants × _Yen

Large and middle-sized
merchants① ② ③ ④③

Fee (Transaction processing revenue)
Fee based on transaction volume
Coefficient: Number of payments processed
Revenue： Number of payments processed× _YenStart-ups
Small businesses

Spread (Merchant acquiring service revenue)④

Fee based on transaction value
Coefficient: Amount of payments processed
Revenue： Amount of payments processed× _%④

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

Payment Processing: Two types of merchant contracts
Created the Representative Contract and effectively changed theflow of revenue proceeds
Payment
Processing

Payment
Processing

Direct contract
Applies to some large companies
and municipalities

GMO-PG consolidated
subsidiaries

A

2.8% Merchant Discount Rate (MDR)

CreditCard
Company

Revenue type①

Initial

②

Stock

③

Fee

①

Initial

②

Stock

③

Fee

④

SpreadRevenue proceeds
Payment
Company

Merchant

Representative
contract

Spread(Merchant acquiring revenue)

3.0％ charge

Mainly for SME’s but also covers
some large companies

2.5％ charge
GMO-PG consolidated
subsidiaries

B

3.2% MDR

CreditCard
Company(MDR applied for direct contract withpayment company)

Payment
Company

Merchant※ Figures included are for illustration and reference purposes only.
※ This illustration represents the contracts for credit card. GMO Epsilon revenues are only derived from spreads (See page 6).

Flow of Revenue and charges

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

7

Revenue Breakdown by Business Model
Aiming for a balanced revenue growth by pursuing various initiatives（Mil. Yen）
40,000J-GAAP

IFRS

38,00036,00034,00032,000Spread30,00028,00026,00024,00022,00020,00018,000Fee

16,00014,00012,00010,000
8,000

Stock

6,000
4,000
2,000

Initial

0
04/9

05/9

06/9

07/9

08/9
09/9
10/9
11/9
12/9
13/9
14/9
15/9
16/9
17/9
18/9
19/9
20/9
21/9E
2020
2008
2015
2016
2011
2013
2014
TSE
Deconsolidation
Launched
Launched
Launched Launched Revamped Launched
Listingof MK ※
Early
services
OnlinePayment Transaction Early
Payment
Payment targeting banks
Advertising
After
Lending※Service
Service
Service
Delivery
GMO-FG and MK※GMO-FG：GMO Financial Gate, Inc.; MK：MACROKIOSK
become subsidiaries※ Due to adoption of IFRS accounting standards, the online marketing service (stock) and finance lease (spread) revenue recognition standard is converted from gross basis to net
basis starting from Fiscal Year ending September 2018.
Due to the deconsolidation of MACROKIOSK from May 2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

8

Revenue Trend by Segment
3 segments of Payment Processing Business, Money Service Business and,
Payment Enhancement Business（Mil. Yen）
40,000

Payment
Enhancement
BusinessIFRS

J-GAAP

38,00036,00034,000Money
ServiceBusiness

32,00030,00028,00026,00024,00022,00020,000

Payment
Processing
Business

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
04/9

05/9

06/9

07/9

08/9

09/9

10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

21/9E

2011
2014
2008
2020
2016
2013
2015
TSE
Launched
Launched
Launched
Deconsolidation
Launched
Revamped Launched
Listing
services
OnlineEarlyof MK ※
Payment Transaction Early
targeting banks
Advertising
Lending
Payment
After
Payment GMO-FG and MK ※Service
Service
DeliveryServicebecome subsidiaries※ There was only one segment of Payment Processing Business until September 2015; segment information disclosure began from FY ending September 2016.
※ GMO-FG stands for GMO Financial Gate. MK stands for MACROKIOSK.
Due to the deconsolidation of MACROKIOSK from May 2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

Summary Table of Segments, Business Model and Services

Reporting in 3 Segments and 4 business models■Business Model■ Segment
Online Payment

Initial（Initial revenue）

Payment Processing

Offline Payment (GMO-FG)
System Development
SSL Service

Payment Processing
Business

Online Payment

Stock(Fixed revenue)

Offline Payment (GMO-FG)

Online Payment

Money Service
Business

Early Payment Service
B2B Factoring

Overseas Lending
Early Payment Service
B2B Factoring

Online Payment

Spread(Merchant acquiring
service revenue )Ginko Pay/Processing

Remittance Service

Delivery service
Offline Payment (GMO-FG)
GMO Payment After Delivery/
GMO Kake-Barai
Overseas Lending※

GMO Payment After Delivery

Online advertising service

Fee(Transaction
processing revenue)

Offline Payment (GMO-FG)

System Development

Ginko Pay/Processing

Offline Payment (GMO-FG)
GMO Payment After Delivery/
GMO Kake-Barai
Remittance Service※

Transaction Lending

Payment
Enhancement
Business

Transaction Lending

Online advertising service
SSL service
Delivery service※ Online Payment includes pay-as-you-go payment, recurring payment, Z.com Payment (overseas payment service).
GMO-FG stands for GMO Financial Gate.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

Our Position in the socio-economic New Normal
DX support services that improves client’s PL & BS
■Customer needs & PL/BS changes
PL

Online shop, Utility bills
Multiple payment methods
Paperless (lowered postal cost)
CF improvement service

Revenue
CoS/COGS
SG&A

Personnel
Rent
Communication

OP
Asset
Cash

BS

Receivables
Provisions for
doubtful accounts
Fixed assets

Liabilities
PayablesNet Assets

Use cases

Payment arrears

Improve collection rate
Prevent suspicioustransactions

Our DX support services
PG Multi-Payment service
TEPCO EP “SMS Payment
Choice”
Cycle byGMO
GMO BtoB Early Payment
Invoice Smartphone
Payment
Fraud prevention
service (Sift)

Restaurants
Delivery sales
Online sales support
Cashless implementation
GMO Cashless Platform
Reduced headcount (lower
personnel cost)
Store closures (lower rent expense)
Electronic Invoice Early Payment
CF improvement service
GMO B2B AR Guarantee
Event, Ticket Sales
Merchandise sale
Online sales support
Refund demand
Remittance service (for(lower postal cost)
refunds)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

Expansion of TAM and Profit Targets
Expand scope of business in the enormous market to achieve2025 OP target of ¥25 bn■ TAM by market segment, GMV, OP target and Priority Initiatives
MarketBroader EC
FinTechBaaSOfflineSegment
2020
2025 20202025
20202025 2020
2025
TAM（¥ trn）

20

45（BtoC EC）

1

3

X

payment
352 times352x （Deferredmarket)87

118（Cashless market）

Global2020

2025

2 X times2x

50 X times 50x（IT investment by
Financial Institutions（Lending in US/Asia）（B2B EC）

GMV（¥ trn）

OP（¥ bn）

Priority
Initiatives

5

13

－

－

7.5

18.0 1.8

1

5

－

－

－

－

3.0 0.5

2.0

0.5

1.0 0.5

5.0

Platform

FinTechOffline Payment (IoT)

Global major
players

B2B payment service

FinTechPlatform

GlobalFinTechB2B payment service※ Figures for TAM, GMV, OP (operating profit) are our estimates and targets. Figures are estimates and are rounded down to the nearest whole number. There is some overlap in OP
for the FinTech and OP figures. Offline OP includes companies other than GMO Financial Gate.
TAM: Total Addressable Market, BaaS: Bank as a Service, GMV: transaction (TRX) value.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

12

The 5 Focus Areas
Expanding business in the 5 focus areas to achievesustainable growth
５ Focus Areas

Narrowlydefined EC;
Broader EC(Page No.)

（P.14）（P.15～16）

Payment Processing Business

Money Service Business Payment Enhancement Business
Online advertising service

Online Payment(Pay-as-you-go/Recurring)

SSL service
Shipping service
GMO Payment After Early Payment Service
DeliveryB2B Factoring
GMO Kake-Barai
Transaction Lending(GMO B2B Pay On Credit)
Remittance Service
Transaction Lending

FinTech（P.17～18）

Cashless（P.19）

IoT（P.20）

Offline Payment (GMO-FG)

Global

（P.21）

Z.com Payment
Overseas Lending(Overseas payment service)

Ginko Pay
GMO-PG Processing Platform※ GMO-FG stands for GMO Financial Gate.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

Narrowly-defined EC: B2C EC Market
Low penetration rate of cashless relative to US/European countries
and high proportion of cash payment■EC Penetration Rates in Developed Markets
（％）

17.9

UK
16.2

USA
14.5

Japan

15.0

■ Cashless penetration in Japan
19.1(ratio to private final consumption) （％）（¥ trillion)
Cashless penetration
0.3
30
26.9

11.0

11.3
10.4

7.0

8.2

3.6

4.1

1.8

2.1

08

09

4.6
2.5

Debit card70

E-money

QR Code

24.1

0.25
25

8.2

5.0
2.8

5.4
3.1

5.8
3.7

6.4
4.4

4.8

5.4

60

0.2
20

18.4

8.8

5.8

20.1
17.1

50

13.9

7.3

6.0
5.0

9.9

9.2
7.6

Credit card

21.3
12.5

10.0

80

6.8

6.2

0.15
15

40
30

0.1
10

20

0.05
5
10

0.0

0

0
10

11

12

13

14

15

16

17

18

19

※Figures are GMO-PG estimates.
Sources：METI. “FY2019 Global Survey Project Concerning Integrated Domestic
and External Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 4th Quarter 2020 Retail E-Commerce Sales
Report”;
Office for National Statistics ”Retail Sales Index internet sales, December 2020”

13

14

15

16

17

18

19

※ Cashless Penetration = Sum of credit card usage amount, debit card usage amount,e-money usage amount, QR-code usage amounted divided by private final
consumption expenditure※GMO-PG estimates: Cabinet Office “System of National Accounts”
Japan Consumer Credit Association’s Credit Card Statistics
Bank Of Japan’s Payment and Settlement Statistics
Payments Japan Association’s Code Payment Statistics

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

14

Broader EC: Expanding Scope of Cashless Business
The migration towards cashless payment is our growth accelerator

B2B

B2C

C2C

Enormous market
potential¥1,000 trillion

Narrowly-defined
B2C EC market

Developing market¥19.3 trillion
EC ratio: 6.8% (approx. 10% CAGR)

Merchandise EC

OnlinePayment

2019
6.8¥19.3tr

EC ratio (%)
Mrkt Size

OfflinePayment¥1.75 trillion

B2B
Credit card
payment

Public dues/Utility
・Local tax¥41tr
・National tax ¥68tr

2025
14
¥40tr

Service commerce
Subscription

Flea Market
App
Sharing Economy

Omni-channel

Broader EC
Consumer spending¥300trFlea Market※References：METI’s “FY2019 Global Survey Project Concerning Integrated Domestic and External Economic Growth Strategy Building (E-Commerce market survey)”. Figures for 2025 are our estimates.
※MIAC “Breakdown of national tax and local tax revenue (FY2020 Budget and Local Government Finance Plan)”※THE WORLD BANK ”Household final consumption expenditure (current USD)”

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

15

Broader EC: Public Dues and Utility Payments
Introducing card payments for public dues and taxes since theamendment of the Local Autonomy Law in 2006
Local
Local Taxes (automobile tax, light vehicle tax,
governments, fixed assets tax, etc.)
etc.
Water bill, gas bill, hometown tax
National tax credit card payment website
National broadcasting subscription fee
NHKCredit card usage rate at the end of FY2019:16.9% (Up ＋1.0％ YoY)
TEPCO
EnergySupporting digitalization of electric bill payment
Partner

Expansion expected to continue
Maintenance fee, cram school tuition fee
parking fee, school meal charge, etc.

※Japan Broadcasting Corporation “Business Report for FY2019”

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

FinTech: Money Service Business (MSB)
Financial services that only a payment processing company can offer
Services

MSB-related assets

GMO Payment
After Delivery/
GMO Kake-Barai

Pay the sales proceed ahead ofthe deposit from consumer

Accrued revenues

Remittanceservice

Efficient and secure refund andremittance processing

Business Model
③

Fee

④

Spread－③

FeeOverseas Lending/Lending of growth capital
Transaction Lending

Accounts receivable-trade(short term loans)④

SpreadEarly Payment
service

Improves cash flows by bringing
forward the payment date

Accounts receivable trade (advances paid)④

SpreadB2B Factoring

Early cash conversion of accounts
receivable

Accrued revenues④

SpreadCopyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

17

FinTech: GMO Payment After Delivery
Deferred payment provided by subsidiary GMO Payment Service■GMO Payment After Delivery/GMO Kake-Barai■Market size of deferred payment
Robust growth of the Deferred Payment market.
Market size in FY2019 estimated at ¥755 billion.
Forecast to reach approx. ¥2 trillion in FY2023. 2,010.8

Buyer can pay at a post office or CVS store after receiving
goods
Payment term (deadline) is 2 weeks.

（Unit: ¥ bn)

EC site1,583.3②Credit check1,246.7③Goods delivery & receipt⑤ Deposit①Order974

755（Est.）＋32.0％④Mailing invoice/payment slip
Convenience store
Post officeBank⑥Payment of purchase amount

Purchaser• Payment services with over 2 weeks payment
terms are also available• Service rollout of GMO Kake-Barai from November
13, 2020 NEW

13

14

15

16

17

18

19

20

21

22

23

NEW

※ Source: “Online Payment/Settlement Service Providers 2020” and “Domestic Cashless
Payment Market 2019” issued by Yano Research Institute Ltd.
Figures for FY2019 are estimates and figures for 2020～2023 are forecasts.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

Cashless
Increase Ginko Pay adopters, interlink each service to create an
infrastructure-like service■ GMO Cashless Platform■Ginko Pay

A smartphone app system marketed to financial institutions thatallows for immediate payments such as direct debit
The Hokuriku Bank

The Hokkaido Bank
Sumitomo Mitsui
Banking Corporation

The Hiroshima Bank

The Bank of Fukuoka

Cashless solution for offline stores which offers a packageof payments methods including QR/Bar code and is scalable
to include new payment methods

Offlinestore

QR/Bar code Payment
services

Japan Post Bank

銀行Pay
The Kumamoto BankThe Juhachi-Shinwa Bank

Bank of Yokohama

GMO
Cashless
Platform

Bank of Okinawa（As of December 31, 2020）※■ Cash-out (withdrawal) service

Cash withdrawal made from ticket vending machines at
Tokyu Line train stations that is based on the Ginko Pay
framework (jointly developed with Tokyu Corporation,
Bank of Yokohama and Japan Post Bank)■ Cash-in (deposit) service※■ GMO-PG Processing Platform
A one-stop package of various payment solutions for
issuing and acquiring businesses, offered to banks,
credit card companies and general businesses.

※ not available at certain stations of Tokyu Line.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

IoT: Offline Payment Market
Further expanding the scope of business through cashless
migration and strategy of alliances■Offline payment
GMO Financial Gate offers payment terminals for payments at offline stores.

■Growth factors of the offline market
Amendment of Installment Sales Act:
• Replacement demand for IC chip equipped terminals
from conventional magnetic strips.
• Cashless demand from new lifestyle in the New Normal
Embedded-type EMV terminal ※with PIN■sterawith PIN

with PIN

without PIN

Target: Unattended Market
Vending(Goods)TicketCoffee Machine

Fare Adjustment(Golf, hotel)

Fare Adjustment(Golf, hotel)

EV Charging Stn.
Parking Fee

Self Check-out

Coin Laundry

Capsule toy
machineRollout of a new one-stop terminal compatible to avariety of payment methods.

CustomerfacingMerchant
facing※EMV: uniform standards for IC-chip enabled credit cards created by Visa and MasterCard.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

Global: Overseas Strategy
Expand customer coverage through strategic investments and assisting
Japanese companies’ foray into the Asian market■Investment target■Payment processing business
Asia: Top payment-related company
US: Innovation equity stakes Providing payment services toJapanese companies expanding into
Portfolios of Investments by GMO-PG and GMO Global Payment Fundthe Asian market (Z.com Payment)
GMO Payment Gateway’s overseas locations

India

TaiwanThailandHong Kong

USA
Invest in Fintech-related or
cutting-edge payment
service companies

＋61％
YoY

GMO Global Payment Fund
VietnamPhilippines

Malaysia
Singapore

Japan’s first Fintech fundtargeting payment-related
startups in Asia (AUM ¥2bn)

NearlyTripledIndonesia

GDP
Approx.＄5.0T
5-6% Growth

FY2016 FY2017 FY2018 FY2019 FY2020
Initialinvestment

Current market
valueTransaction value in Asia surging

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

ESG Initiatives
ESG initiatives for the 27 th fiscal year annual report is outlined from page
18 to page 23.

For the full publication please click the URL below：
https://www.gmo-pg.com/en/corp/newsroom/pdf/201221_gmo_pg_en.pdf
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

Major subsidiaries and equity-method affiliates (IFRS standards)
GMO Payment Gateway, Inc.

Consolidated subsidiary
Equity method affiliate＜ Consolidated subsidiary＞
Multi payment service（targets small-sized merchants）

GMO Epsilon, Inc.

（FY2020）Revenue ¥3,994 mil., Ordinary income ¥2,607 mil. (J-GAAP)
GMO Medical Reservations Technology Co., Ltd.

Payment After Delivery

GMO Payment Service, Inc.

（FY2020）Revenue ¥6,297 mil., Ordinary income ¥700 mil. (J-GAAP)

Offline payment (TSE Mothers: Security code 4051)

GMO Financial Gate, Inc.

（As of end September 2020）59.6％ stake

Global Card System, Inc.
(As of end September 2020 ）GMO Financial Gate, Inc. equity stake 51.0%

GMO Data

Sumitomo Mitsui Card Company, Limited equity stake 49.0%

Overseas（Singapore）

GMO-Z.COM PAYMENT GATEWAY PTE. LTD.
GMO-Z.com PAYMENT GATEWAY HONG KONG LIMITED（Headquartered in Hong Kong and a branch in Taiwan）

GMO Z COM PAYMENT GATEWAY MALAYSIA SDN.BHD.

（Malaysia）

GMO-Z.com PAYMENT GATEWAY (THAILAND) CO., LTD.

（Thailand）

GMO-Z.com PAYMENT GATEWAY INDIA PRIVATE LIMITED（India）

GMO-Z.com PAYMENT GATEWAY USA, Inc.

（USA）

Overseas

2C2P Pte. Ltd.

（As of end of Sep. 2020）equity stake 29.3％

Multiple payment service

SMBC GMO PAYMENT（As of end of Sep. 2020）49.0％ stake

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

Company Outline■Name

GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange First section)■Date of establishment

March 1995

■Location

FUKURAS office (Head office) SHIBUYA FUKURAS 15F, 1-2-3 Dogenzaka, Shibuya-ku, Tokyo, 150-0043 Japan■Capital stock

4,987 million yen■Major shareholders

GMO Internet, Inc., Sumitomo Mitsui Banking Corporation, Issei Ainoura ,etc

■Management team

Chairman & Director
President & Chief Executive Officer
Director, Executive Vice President
Director, Executive Vice President
Senior Managing Director
Director
Director
Director
Director
External Director
External Director
Senior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Standing Auditor
AuditorExternal Auditor
External Auditor

Humax Shibuya Building 7F, 1-14-6, Dogenzaka, Shibuya-ku, Tokyo Japan

Masatoshi Kumagai
Issei Ainoura
Ryu Muramatsu
Satoru Isozaki
Yuichi Hisada
Masashi Yasuda
Hirofumi Yamashita
Takehito Kaneko
Yuki Kawasaki
Masaya Onagi
Akio Sato
Shinichi Sugiyama
Tomoyuki Murakami
Masaru Yoshioka
Takeshi Yoshii
Takashi Mitani
Katsunari Mukai
Kazunari Taguchi
Kiyonobu Inayama
Shingo Ito
Yoshinori Inoguchi
Hirofumi Tozawa
Yasunori Hatada
Mariko Takeda
Junpei Kendo
Kazutaka Yoshida
Takashi Iinuma
Kazuhiko Okamoto
Yumi Hokazono■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated subsidiaries

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc.,
GMO-Z.com Payment Gateway Pte. Ltd. (Singapore), etc.

■Equity affiliates

SMBC GMO Payment, Inc., GMO Data, Inc., 2C2P Pte. Ltd., etc.

（As of December 31, 2020)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

GMO Financial Gate, Inc.: Overview■Name

GMO Financial Gate, Inc. (TSE Mothers, security code 4051)■Date of Establishment

September 1999

■Location

Humax Shibuya Building 7F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo■Capital Stock¥1,533 Mil.

■Major Shareholders

GMO Payment Gateway, Inc. and others■Management

ChairmanPresident and CEO
Managing Director
Director
Director
Director
External Director
External Auditor
External Auditor
Auditor■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated Subsidiaries

Global Card System, Inc. (100%)

Akira Takano
Kentaro Sugiyama
Akio Aoyama(GM of Sales Department)
Masamitsu Ikezawa (GM of Administration Department and Corporate Planning)
Tomonaga Fukuda （GM of System Department)
Masaru Yoshioka(Managing Executive Officer of GMO Payment Gateway Inc.)
Nao Shimamura
Takayoshi Nagasawa
Satoru Ozawa
Takashi Iinuma(CPA; Representative of Iinuma General Accounting Firm)

GMO Data, Inc. (51.0% stake; Sumitomo Mitsui Card Company, Ltd. 49.0%)■Business Description

Stationary-type
payment terminal

Provides cashless payment infrastructure for credit card, debit card, e-money, etc.

Mobile payment
terminal

Embedded-type
payment terminal

POS terminal formerchants（As of February 12, 2021)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

25

Business outline of payment processing company (1)Problems with online credit card payment in the early days of E-Commerce
Consumer

Payment
company

Merchant①order taking

Large volume of sales slips②Enter each
into theCAT terminal③Make sales report to eachcredit card company （sales processing）

network④Post mail sales
report to each credit
card company

Credit card company

Authorization（approval number
assigned）

Problems for merchants⚫ Duplicate order entry into CAT terminal andmerchant’s system⚫ Sorting documents/transaction for each credit
card company⑤Check whether payment
has been received
Payment⚫ Insufficient check on incoming payment⚫ Human error due to manual input
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

26

Business outline of payment processing company (2)Payment processing service adds operational efficiency to credit card payment
Consumer

Payment
company

Payment
Processing
Company

Merchants①Order taking

Updatecard data
Real-time credit decision

Network

Sales processing

Transmit
sales data
②Check whether
payment has been
received(data collation)

Payment

Credit card company

Credit・sales

In the early days of Ecommerce, credit card payment was processed offline between
merchant and credit card company, resulting in work burden on both sides.
The establishment of payment processing companies eliminated this burden for both parties.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

27