Member of Financial Accounting Standards Foundation

Summary of Consolidated Financial Statements for the Third Quarter, FY2015
July 29, 2015
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:

Issei Ainoura

President &Representative Director

Contact:

Ryu Muramatsu

Executive Vice President

Tel: +81-3-3464-0182

Scheduled date of submission ofquarterly reportAugust 12, 2015

Scheduled date ofcommencement ofdividend payment-

Supplemental materials preparedfor financial results

Yes

Information meeting arranged
related to financial resultsYes (for institutional investors andanalysts)

URL: http://corp.gmo-pg.com/(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the Third Quarter, FY2015(From October 1, 2014 to June 30, 2015)(1) Consolidated Financial Statements (Percentages denote the increase or decrease from the previous period)
Net sales
Operating income
Ordinary income
Net income
3Q FY2015
3Q FY2014

Million yen
6,427
5,313

%
21.0
26.5

Million yen
2,300
1,915

%
20.1
21.5

(Note) Comprehensive income: 3Q FY2015: 1,523 million yen (32.8%)

3Q FY2015
3Q FY2014

Net income per share
Yen
42.04
32.66

Million yen
2,317
1,927

%
20.2
21.9

Million yen
1,454
1,126

%
29.1
19.0

3Q FY2014: 1,146 million yen (20.4%)

Diluted net income per share
Yen
42.02
32.61

(Note)
1) In October 1, 2014, our company executed a 2-1 stock split. The values for the FY2014 are calculated on thesame base.
2) In order to appropriately display the net income per share, in regard to the stock attributed to the directors’
remuneration board incentive plan trust, it has the right to a claim of dividend, and is therefore, not included intreasury stock.
3) Our company issued 2,587,300 shares of common stock through a third-party allotment with a payment dateof June 25, 2015.
(2) Consolidated Financial Position

3Q FY2015
FY2014

Total assets
Million yen
42,89824,613

Net assets
Million yen
15,8236,815

Equity ratio
%
36.9
27.7

Net assets per share
Yen
426.03
197.15

Reference: Equity: 3Q FY2015: 15,821 million yen
FY2014: 6,808 million yen(Note)
1) In October 1, 2014, our company executed a 2-1 stock split. The values for the FY2014 are calculated on thesame base.
2) Our company issued 2,587,300 shares of common stock through a third-party allotment with a payment dateof June 25, 2015.
2.

Dividends
1Q

FY 2014
FY 2015
FY 2015 (forecast)

2Q
Yen
—
—

Yen
0.00
0.00

Yearly dividends
3Q
Fiscal Year end
Yen
Yen
—
30.00
—
18.00

(Note) Revision of the most recently released dividend forecast: No

Total
Yen
30.00
18.00

In October 1, 2014, our company executed a 2-1 stock split. The values for the FY2015 (forecast) are calculatedon the same base.
3.

Consolidated Financial Forecast for the Fiscal Year Ending September 2015
(From October 1, 2014 to September 30, 2015)(Percentages denote an increase or decrease as compared with the previous period.)

Full year

Net sales
Million yen
%
8,656
20.1

Operating income
Million yen
%
2,974
20.1

Ordinary income
Million yen
%
2,985
18.1

Net income
Million yen
%
1,797
18.6

Net income per
share
Yen
51.00

(Note) Revision of the most recently released financial forecast: No

Notices:
(1)

(2)
(3)

(4)

Changes of important subsidiaries during the period (change of specific subsidiaries that lead to a change
in the scope of consolidation): No
Number of new subsidiaries: - (Name:), number of excluded subsidiaries: - (Name:)
Application of special accounting procedures for the execution of the financial statements: No
Changes in the accounting policy / changes in the accounting estimation / restatement of corrections[1] Changes associated with the revision of accounting policy, etc.: No[2] Changes other than [1]: No[3] Changes in accounting estimations: No[4] Restatement of corrections: No
Number of shares issued (common stock)[1] Number of shares issued at the end of
the term (including treasury stock)[2] Number of treasury stocks at the end of
the term[3] Average number of shares

3Q FY2015: 37,138,900

FY 2014: 34,538,400

3Q FY2015: 2,500

FY 2014: 2,278

3Q FY2015: 34,596,463

3Q FY2014: 34,507,316

1) In October 1, 2014, our company executed a 2-1 stock split. The number of shares issued at the end of the term,
the number of treasury stocks at the end of the term, and the average number of shares during the period are
calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.
2) In order to appropriately display the number of treasury stocks at the end of the term and average number ofshares, in regard to the stock attributed to the directors’ remuneration board incentive plan trust, it has the right to aclaim of dividend, and is therefore, not included in treasury stock.
3) Our company issued 2,587,300 shares of common stock through a third-party allotment with a payment date ofJune 25, 2015.

*

Indication of the implementation status of quarterly review procedures
These quarterly financial statements are not subject to the quarterly review procedures of the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial statements, the quarterly
financial statement review procedures of the Financial Instruments and Exchange Act had not been completed.

*

Explanation of the proper use of financial forecasts and other important notes
1) The above forecasts are outlooks based on information currently available, and include various uncertain
factors. Actual performance may differ substantially from the forecasts due to changes in business conditions
and other factors. For the assumption on which financial forecasts are based and matters to be considered inusing financial forecasts, please refer to“(3) Review of consolidated earnings forecasts and other forecasts”
under“1. Qualitative Information on Consolidated Financial Statements for the Quarter” on page 4 of theattachment.
2) Our company issued 2,587,300 shares of common stock through a third-party allotment with a payment dateof June 25, 2015.

*

Table of contents of attachment
1. Qualitative Information on Consolidated Financial Statements for the Quarter(1) Qualitative information on consolidated operating results(2) Qualitative information on the consolidated financial condition(3) Review of consolidated earnings forecasts and other forecasts
2. Items concerning summary information (Notes)(1) Changes of important subsidiaries(2) Application of special accounting procedures for the execution of
the financial statements(3) Changes in the accounting policy/ changes in the accounting
estimation / restatement of corrections
3. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheet

2
2
3
4
4
4
4
4
5
5

(2) Consolidated quarterly statements of income and consolidated quarterly
statement of comprehensive income

7(3) Consolidated statements of cash flows

9(4) Notes to consolidated quarterly financial statement

10(Notes regarding the premise for continuance)(Note when there is a significant fluctuation in the amount of shareholders’ equity)

－

1 －

10
10

1. Qualitative Information on Consolidated Financial Statements for the
Quarter(1)

Qualitative information on consolidated operating results
Regarding the economic environment in Japan during the period under review, the economy is gradually on the mend,
with the economic and fiscal policy of the government and the monetary easing policy of the Bank of Japan as a
background.
In regard to our core business, the BtoC EC market continues to grow thanks to a favorable external environment such asbroader use of smartphones as well as reforms in logistics, and e-commerce is also spreading in the market of sales of
non-goods items such as services, as seen in new areas such as BtoB EC and CtoC EC.
In regard to the credit card field, credit card shopping is steadily growing, and people tend to make more purchases via theInternet. Also, the non-face-to-face use of credit cards in the field of payment for everyday living expenses continues toexpand, such as payments for rent and medical costs, as well as utility charges and public funds. It is a certainty that
opportunities to use credit cards will continue to increase.
Under such circumstances, the Board of Directors meeting held on June 9 2015, agreed to form a business and capital
partnership with GMO Internet, Inc, Sumitomo Mitsui Financial Group and Sumitomo Mitsui Baking Corporation. At thesame time, it was resolved to issue new shares to Sumitomo Mitsui Banking Corporation and parent company GMO
Internet, Inc. The business and capital partnership agreement as of June 9 2015 had been concluded and the issuance of
new shares through a third-party allotment was completed on June 25 2015.
The group has pressed on with its businesses in order to expand the scale of operations described below.
The Group consists of GMO Payment Gateway, Inc. and its consolidated subsidiaries, GMO Epsilon, Inc. , GMO
PAYMENT SERVICE, Inc., GMO PAYMENT GATEWAY PTE. LTD. etc, and provides credit card payment processing
services and all related operations as a consolidated subsidiary of GMO Internet, Inc.
Our company and our subsidiary GMO Epsilon, Inc. provides companies that sell products on a non-face-to-face basiswith a payment processing service and related to the payment-processing business, the means through which payment
processing by credit cards and other methods can be efficiently made.
The Group offers a broad range of services such as online payment and recurring payment services that respond to ourcustomers’ business category, size and payment type.
The number of merchants during the third quarter of the current consolidated fiscal year increased by 7,844 to 57,569
compared to the end of the previous consolidated fiscal year. The number and amount of processed payments steadily
increased.
Changes in number of operating stores
End of September

Number of operating
storesEnd of September End of September

End of September

2011

2012

2013

2014

32,062

38,94944,32849,725End of June 2015

57,569Note: Number of operating stores means the number of IDs assigned to each store to use the service. It shows thenumber of stores (merchants) which have an agreement with the Group, are connected to the system, and areable to process payments at any time in principle.
For online payment field, payment-processing service grew steadily and the business of GMO Epsilon, Inc. which provides“Multi-Payment Service” to the merchants grew steadily, too. During the period under review, our company has started
providing the multi-currency credit card payment service in the “PG Multi-Payment Service” with which even overseas
purchasers can make credit card payments at the local currency price since May 1, 2015.
For recurring payment field, we have continued to attempt to develop this field to enable using credit card for paying utility
charges, public funds and other monthly services closely connected with everyday life. We provide payment methods topublic institutions, such as the Japan Pension Service, and local governments, such as the Tokyo Metropolitan
government (TMG). During the period under review, we started to conduct the payment operation in credit card payment
for all taxation items for the Tokyo Metropolitan Government and the operation of the “Metropolitan Tax Credit Card
Payment Site” (https://zei.tokyo) which the TMG has started since April 1, 2015.
Our subsidiary GMO Payment Service Inc. provides a “GMO Payment after delivery” service that allows the user to pay
after receiving the goods. The “GMO Payment after delivery” service has been adopted by an increasing number ofmerchants as a payment service with high level of consumers’ needs and has continued to perform favorably since its
introduction in May 2013.
As a value-added service making the best of the Group’s merchant base, we have made steady efforts to expand services－

2 －in areas related to the payment-processing business, such as the Online Advertising Service, providing SSL server
certifications, shipping services and early payment services.
During the period under review, we have started a new credit card payment service using a token (which is a string
randomly consisting of alphabets and numbers) since April 15 2015. Also we launched the “GMO-PG Remittance Service”,
a refund and remittance service for e-commerce operators, on April 28, 2015. And on May 21 2015, we launched theInbound Marketing service that supports inbound business (business targeting international visitors to Japan).
With regard to overseas business, we established five oversea entity to provide GMO-PG Global Payment solutions toJapanese non-face-to-face businesses with a local presence and targeting local markets in South East Asia.
We have continued to promote funding activities through the “GMO Global Payment Fund” to form capital alliances withprospective payment-related businesses; in addition, the financial results of local payment processing companies in which
we invest our fund have performed steadily. With a view to incorporating the huge growth potential of South East Asia,
which is the center of global growth, into our Group’s mid-to-long-term business growth, we will continue to introduce newmeasures while creating a synergistic effect between “GMO-PG Global Payment” and “GMO Global Payment Fund.”During the period under review, we determined to carry out an additional payment of 2 million U.S. dollars (approximately
240 million yen) in order to further strengthen partnership with 2C2P Pte., Ltd
Consequently, the Group’s operating results for the cumulative third quarter of the current consolidated fiscal year were as
follows: Net sales amounted to 6,427,681,000 yen (an increase of 21.0% on a year-on-year basis); operating income grew
20.1% on a year-on-year basis to 2,300,189,000 yen; ordinary income amounted to 2,317,947,000 yen (an increase of
20.2% on a year-on-year basis); and net income reached 1,454,467,000 yen (increase of 29.1% on a year-on-year basis).
Net sales consisted of an initial revenue of 375,746,000 yen (decrease of 10.5% on a year-on-year basis), running
revenue of 3,536,330,000 yen (increase of 19.8% on a year-on-year basis) and merchant acquiring service revenue of
2,515,604,000 yen (increase of 29.5% on a year-on-year basis)
Concerning operating expenses, while the solid performance of “GMO Payment after delivery” service saw a hike in costof sales, we were able to take advantage of the scale merit of the revenue growth and reduce our burden of parallel
operation by completing the transfer of our data center to strengthen our payment processing capacity since September
2012. As a result, cost of sales amounted to 1,366,038,000 yen (a 27.9% increase on a year-on-year basis). Selling,
general and administrative expenses came to 2,761,453,000 (a 18.5% increase on a year-on-year basis).
With regard to non-operating income and loss, while non-operating income of 87,077,000 yen has been posted due toreasons such as exchange gains and the occurrence of investment return with the equity method by the enhancement of
performance of GMO Financial Gate which is an affiliate accounted for using the equity method, non-operating expense of
69,318,000 yen have been recorded due to reasons including attorney’s fee related to the issuance of new shares forcapital increase by way of third-party allotment, resulting in marking a ratio of ordinary profit to net sales of 36.1%.
Because of satisfactory performances of GMO Financial Gate, it has invested to major venture capitals, etc. during thisconsolidated cumulative third quarter for expanding its operations, and our company has made an additional investment of
63,000,000 yen equivalent to our equity shares. GMO Financial Gate changed its corporate name from Consumer Open
Center as of April 10, 2015.
In an effort to enhancement of collaboration-type business, we have promoted capital and business alliance by obtaining apart of shares of important affiliated stores and important business partners. However, we sold some of the shares due tothe fact that some of the business partners were purchased by the listed company. We posted an extraordinary income of
30,766,000 by selling a part of the shares and of 26,196,000 on change in equity.

(2)

Qualitative information regarding the consolidated financial condition[1]

AssetsThe balance of total assets at the end of the third quarter of the current consolidated fiscal year was 42,898,828,000
yen, up 18,285,770,000 yen as compared with the end of the previous consolidated fiscal year. This increase wasmainly due to an increase of cash and deposits (+14,548,276,000 yen). The increase of cash and deposits was
mainly caused by the increase of deposits of merchants (+8,653,715,000), in accordance with the merchantacquiring service agreement, increase in capital stock (+3,999,965,000) and in capital surplus (+3,999,965,000).
The deposits of merchants will mostly be paid out on the tenth of the next month, therefore the deposit balance will
decrease with receipt of deposits.

[2]

Liabilities
The balance of liabilities at the end of the third quarter of the current consolidated fiscal year was 27,074,844,000
yen, up 9,277,165,000 yen as compared with the end of the previous consolidated fiscal year. This increase wasmainly caused by an increase in deposits received of 8,653,715,000 yen, which was an effect of the increase in－

3 －deposits received from merchants in accordance with the merchant acquiring service agreement.
[3]

Net assets
The balance of net assets at the end of the third quarter of the current consolidated fiscal year was 15,823,984,000
yen, up 9,008,604,000 yen as compared with the end of the previous consolidated fiscal year. The increase wasmainly attributable to the increase in capital stock (+3,999,965,000) and in capital surplus (+3,999,965,000).

[4]

Cash FlowsAt the end of the third quarter of the current consolidated fiscal year, cash and cash equivalents (the “Funds”) was
34,894,092,000 yen, up 14,544,782,000 yen as compared with the balance at the beginning of the period. Cashflows at the end of the cumulative third quarter of the current consolidated fiscal year are as follows.
Net cash provided by (used in) operating activities
Cash provided by operating activities during the cumulative third quarter of the current consolidated fiscal year
amounted to 8,049,258,000 yen (provided 3,505,034,000 yen for the corresponding period of the previous fiscal
year). This was mainly due to income before income taxes of 2,374,339,000 yen and an increase in deposits
received of 8,653,715,000 yen, after a payment of income taxes of 1,154,423,000 yen.
Net cash provided by (used in) investing activities
Cash used in investment activities totaled 962,460,000 yen (442,715,000 yen was used in the corresponding periodof the previous fiscal year.) This was mainly due to the acquisition of securities (778,234,000 yen).
Net cash provided by (used in) financing activities
Cash used in financing activities totaled 7,419,985,000 yen (433,163,000 yen was used in the corresponding periodof the previous fiscal year). This was primarily attributable to the issuance of common stock of 7,968,601,000 yen.

(3)

Review of consolidated earnings forecasts and other forecasts
In regard to our core business, the BtoC EC market continues to grow thanks to a favorable external environment such asbroader use of smartphones as well as reforms in logistics, and EC (e-commerce) is also spreading in the market of salesof non-goods items such as services, as seen in new areas such as BtoB EC and CtoC EC.
For the term ending September 2015, we expect initial revenue, running revenue and merchant acquiring service revenue
to increase steadily. We believe this will be achieved by accelerating the acquisition pace of new merchants, strengthening
the development of large-scale merchants through the provision of higher quality services, and increasing revenue per
merchant through providing services that increase added value associated with the merchants' use of the Group.
In regard to costs, we keep forecast for increase in sales cost ratio due to the sales growth of “Online Advertising Service"and “GMO Payment after delivery”, which has a high sales-cost ratio. We also forecast investment cost on the subsidiarycompanies, overseas businesses, and other investment on new businesses. We expect 18.1% growth in ordinary income
and 34.5% ordinary income ratio.
Regarding the business and capital partnership agreement concluded on June 9, 2015 with Sumitomo Mitsui Financial
Group, Sumitomo Mitsui Banking Corporation and GMO internet, we consider it as what contributes to the improvement ofour company’s corporate value and shareholder value, but it is not reflected in this business forecast because its influenceon the business forecast is not known at this point.

2. Items concerning summary information (Notes)(1)

Changes of important subsidiaries : N/A(2)

Application of special accounting procedures for the execution of the financial statements :
N/A

(3)

Changes in the accounting policy/ changes in the accounting estimation/ restatement ofcorrections : N/A－

4 －3. Consolidated quarterly financial statements(1)

Consolidated quarterly balance sheet(Unit: Thousand yen)

Summary of balance sheet at
End of the third quarter of thethe end of the previous
current consolidated fiscal year
consolidated fiscal year
(June 30, 2015)(September 30, 2014)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Tangible assets
Buildings, net
Tools, furniture and fixtures, net
Other
Total tangible assets
Intangible assets
Goodwill
Right of trademark
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Bonds of subsidiaries and affiliates
Investments in other securities ofsubsidiaries and affiliates
Long-term loans receivable from directors
and employees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets－

5 －20,386,175
792,588
2,165
531
585,395
58,823150,097504,077
52,343△56,177
22,476,019

34,934,452
981,616653
643
1,567,216
82,94576,937998,914
1,384,435△159,609
39,868,205

57,29861,075
113,573
231,947

75,96554,881
87,253218,099

30,694272
661,723
71,778764,469

25,357157
664,255
171,241
861,012650,7392,507
11,0001,224,529
135,509－

264,442

348,326

1,910

1,561

12,434

18,314

7,722
149,210
51,384△10,729
1,140,621
2,137,039
24,613,058

3,640
185,951
51,992△18,314
1,951,511
3,030,623
42,898,828

(Unit: Thousand yen)
Summary of balance sheet at
End of the third quarter of thethe end of the previous
current consolidated fiscal year
consolidated fiscal year
(June 30 2015)(September 30, 2014)
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Other provisions
Other
Total current liabilities
Noncurrent liabilities
Provision for directors’ remuneration Board
Incentive Plan Trust
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total Accumulated other comprehensive
incomeSubscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets－

6 －229,278
692,310644,375
171,628
7,850
15,589,857
206,137
34,84048,061
17,624,339

298,091
1,763,749
354,923
75,35927,922
24,243,572
53,961
29,50048,507
26,895,587

70,000107,500

103,339
173,339
17,797,678

71,757179,257
27,074,844

708,118
968,040
5,315,707△264,723
6,727,143

4,710,634
4,970,556
6,252,132△265,236
15,668,087

64,821

105,745

16,68547,32781,506

153,073

3,774
2,956
6,815,379
24,613,058

2,343
480
15,823,984
42,898,828

(2) Consolidated quarterly statements of income and consolidated quarterly
statement of comprehensive income(Consolidated quarterly statements of income)(Cumulative third quarter of the consolidated fiscal year)(Unit: Thousand yen)First nine months of theFirst nine months of the current
previous consolidated
consolidated
fiscal year
fiscal year
(From October 1, 2013
(From October 1, 2014
to June 30, 2014)
to June 30, 2015)
5,313,512
6,427,681
1,067,942
1,366,038
4,245,569
5,061,642
2,330,408
2,761,453
1,915,161
2,300,189

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity income of affiliates
Investment returns from anonymous associations
Earnings on reversal of dividends payable
Rent income
Commissions received
Exchange earnings
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Loss on investment in silent partnership
Loss on investment in partnership
Rent expenses
Stock issue expense
Other
Total non-operating expense
Ordinary income
Extraordinary income
Income from securities sold
Change in equity
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary loss
Income before income taxes
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interest in loss(△)
Net income

－

7 －

5,943
4,263
－
－
770
10,42015,325
1,457
3,196
41,3775,260
5,271
22,465
1,218
1,050
10,525
12,402
25,257
3,625
87,077

1,323
11,4883,061
2,361
10,209－414
28,8591,927,679

1,486
－
－
10,984
11,51745,317
12
69,3182,317,947

11,221－
11,221

30,76626,19656,962

9,276
9,276
1,929,625
761,756
40,983
802,739
1,126,885△14
1,126,900

570
570
2,374,339
859,700
62,846
922,546
1,451,792△2,675
1,454,467

(Consolidated quarterly statements of comprehensive income)(Cumulative third quarter of the consolidated fiscal year)(Unit: Thousand yen)First nine months of theFirst nine months of the current
previous consolidated
consolidated
fiscal year
fiscal year
(From October 1, 2013
(From October 1, 2014
to June 30, 2014)
to June 30, 2015)
1,126,885
1,451,792

Income before minority interests
Other comprehensive income
Other valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Details)
Parent company shareholders’ comprehensive
incomeMinority’s comprehensive income－

8 －16,63240,924

3,379
20,011
1,146,897

30,841
71,766
1,523,558

1,146,932

1,526,034△34△2,475(3)Consolidated statements of cash flows(Unit: Thousand yen)First nine months of theprevious consolidated
fiscal year
(From October 1, 2013
to June 30, 2014)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase and decrease in provision (△decrease)
Interest and dividends income
Interest expenses
Stock issue expense
Foreign exchange gains and losses (△gains)
Equity in gains and losses of affiliates (△gains)
Gains and losses on investments in silent partnership(△gains)
Gains and losses on investment in partnership (△gains)
Gains and losses on valuation of investment securities(△gains)
Gains and losses on changes in equity (△gains)
Loss on retirement of noncurrent assets
Increase and decrease in accounts receivable (△Increase)
Increase and decrease in inventories (△increase)
Increase and decrease in advance payments-trade(△increase)
Increase and decrease in accounts receivable-other(△increase)
Increase and decrease in purchase debts (△decrease)
Increase and decrease in accounts
payable-other(△decrease)
Increase and decrease in deposits received (△decrease)
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plants and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales or redemption of investment securities
Purchase of stocks of subsidiaries and affiliates
Purchase of other securities of subsidiaries and affiliates
Distributions from an investment partnership
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from issuance of common stock
Purchase of treasury stock
Cash dividends paid
The proceeds from minority interest
Other
Net cash provided by (used in) financing activities
Translation differences of cash and cash equivalents
Increase and decrease in cash and cash equivalents(△decrease)
Balance of cash and cash equivalents at the beginning of theperiodCash and cash equivalents at the end of period－ 9 －1,929,625
196,367
8,046△51,525△10,207
1,323－△1,461
11,488First nine months of thecurrent consolidated
fiscal year
(From October 1, 2014
to June 30, 2015)

3,061

2,374,339
215,988
5,337△8,999△10,531
1,486
45,317△25,298△22,465

2,361△1,218

10,984△11,221△30,766－
9,276△148,742△1,046△26,196570△194,649
1,505△282,060
52,821△495,563

288,592

1,035,209

2,645,243
6,398
4,408,118
6,045△1,323△907,805
3,505,034

8,653,715△1,416,524
9,198,885
6,282△1,486△1,154,423
8,049,258△9,143△229,838△86,969
14,221－△125,000－△5,984△442,715△16,606△262,501△778,234
263,159△63,000△125,000
30,092△10,370△962,460△240,222△981,820
68,465

17,333－△420,801
3,192△32,888△433,163
3,627
2,632,783

7,968,601△513△516,833－△31,268
7,419,985
37,99914,544,782

18,358,343

20,349,309

20,991,127

34,894,092

(4)Notes to the consolidated quarterly financial statement(Notes regarding the premise for continuance)
N/A(Note when there is a significant fluctuation in the amount of shareholders’ equity)
Our company received the payments for capital increase through third-party allotment from Sumitomo Mitsui
Banking Corporation and GMO Internet Group as of June 25, 2015. As a result, during this consolidated cumulative
third quarter, the capital stock had increased by 3,999,965,000 yen and the capital surplus by 3,999,965,000 yen,and, at the end of this third quarter consolidated accounting period, the capital stock was 4,710,634,000 yen and thecapital surplus 4,970,556,000 yen.

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10 －