Supplementary Materials
Financial results briefing for Q3 FY2021

August 11, 2021
66 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※1（Mil. Yen）

Revenue

40,00014,000+20.4％

35,000Operating Profit

39,792（Mil. Yen）

+25.0%

12,00033,04630,000EBITDA+24.3%

12,00010,38810,00025,00012,985

14,719※2（Mil. Yen）
14,00011,83910,000

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

※3

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

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

09/9

08/9

10,000

10/9

15,00009/9

20,000IFRS※3Operating stores

Annual TRX Volume

Annual TRX Value

119,440

3.31 billion¥7.4 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 June 2021. Transaction volume and transaction value are the figures from July 2020 to June 2021;
transaction volume and transaction value include the figures of GMO Financial Gate Inc.
（※4） Figures exclude a significant increase in operating stores from a specific merchant. The figures exclude the number of stores related to a delivery company from Q1
FY2017. If included, the number of operating stores is 270,389 stores as of end of June 2021.

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
決済活性化事業
Business

Revenue
Breakdown
売上収益構成比Operating Profit
営業利益構成比Breakdown

2％

1%

Online Advertising Service
SSL Service
Delivery Service
Medical Kakumei byGMO（Actual data for Q3 FY2021)

12%

etc.

23％
75％

87%

Money Service Business(MSB)
Payment Processing
Business ※GMO Payment after Delivery/
GMO B2B Pay On Credit
Remittance Service/
Sokkyu byGMO ※2 NEW
Overseas Lending
Early Payment Service
B2B Factoring
etc.
Transaction Lending※

Online Payment ※1

Offline Payment (GMO-FG)※1
Ginko Pay/Processing
System Development
etc.
etc.

※1 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.
※2 Sokkyu byGMO is a new service launched on July 7, 2021.

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

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

J-GAAP

40,00038,00036,000IFRS

Payment
Enhancement
Business

34,000

Money Service
Business

32,00030,00028,00026,00024,00022,00020,00018,000

Payment
Processing
Business

16,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
04/9

05/9
TSE
Listing

06/9

07/9

08/9
09/9
2008
Launched
Early
Payment
Service

10/9
11/9
12/9
2011
2010
Launched Launched
OnlineOfflinePayment AdvertisingService

13/9
14/9
15/9
16/9
17/9
18/9
19/9
20/9
21/9E
2020
2016
2013
2015
2014
2018
Launched Launched Revamped Launched
Consolidation of Deconsolidation
servicesof MK ※
Payment TransactionEarly
targeting banksGMO Medical
After
Payment
Lending
GMO-FG/MK※ Reservation
DeliveryServiceTechnology Co.
becomesubsidiaries※ 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.

5

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

Merchant
119,440 stores ※１(As of end-June 2021)

PC

OnlinePayment

Smartphone

OfflinePayment
Payment TerminalEC
B2B・B2C・C2C
Taxes, Dues, Utility
NHK, Electricity bill,
Municipalities (e.g. Tokyo)
National Tax Agency,
Automobile Tax
Subscription
Video streaming
Software, ApparelService/Commerce
Digital content
Donation, Travel,
Insurance※2

110,598 terminals(As of end-June 2021)

GMO-PG consolidated
subsidiaries

Payment Service
Providers
40+ Credit cardcompanies
Convenience store
Account Transfer
Carrier billing
Bank transfer
E-money
Cash on Delivery
GMO Payment
After Delivery
QR codeID-based payment
Multi-currency
Pre-paid※1 Figures exclude a significant increase in operating stores caused by a specific merchant. Figures exclude merchants related to a major delivery company from Q1 FY2017.
If included, the number of operating stores is 270,389 stores as of end of June 2021.
※２ Operating payment terminals: Starting from FY2021 the figure presents the combined number of payment terminals and embedded-type payment terminals that are also soldthrough sales partners.(up 40.9% YoY)

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

etc.

6

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

Initial (Initial revenue)①②

Terminal Sales
Coefficient: Number of terminals (units)
Revenue: Terminal sales (units)
× _Yen / at implementation

Payment
Terminal

Municipalities
Enterprise② ③①

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

Large and middle-sized
merchants② 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.

7

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

Payment
Processing

Revenue type

Direct contract
Applies to some large companies
and municipalities

GMO-PG consolidated
subsidiaries

A

2.8% Merchant Discount Rate (MDR)

CreditCard
Company

②

Stock

③

Fee

②

Stock

③

Fee

④

SpreadRevenue proceeds
Payment
Company

Merchant

Representative
contract

0.5% 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 with payment company)

Payment
Company

Merchant

Flow of Revenue and charges※ 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).

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

8

Revenue Breakdown by Business Model
Aiming for a balanced revenue growth by pursuing various initiatives（Mil. Yen）

J-GAAP

40,000IFRS

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
2008
Launched
Early
Payment
Service

10/9
11/9
12/9
2011
2010
Launched Launched
OnlineOfflinePayment AdvertisingService

13/9
14/9
15/9
16/9
17/9
18/9
19/9
20/9
21/9E
2016
2013
2020
2018
2014
2015
TSE
Launched Launched
Consolidation of Deconsolidation
Revamped Launched
Listing
services
Payment Transaction Early
of MK ※
GMO Medical
After
Lending
Payment targeting banks Reservation
Delivery
GMO-FG/MK ※ Technology Co.
Servicebecome※GMO-FG：GMO Financial Gate, Inc.; MK：MACROKIOSK
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.

9

Summary Table of Segments, Business Model and Services
Reporting in 3 Segments and 4 business models■Business Model
Initial（Initial revenue)■ Segment
Online Payment ※SSL Service

Online Payment
Offline Payment (GMO-FG)

Stock(Fixed revenue)

Online Payment ※Offline Payment (GMO-FG) ※Payment Processing
Business

Ginko Pay/Processing

Medical Kakumei byGMO

Remittance Service
Sokkyu byGMO NEW

Online Payment

Money Service
Business (MSB)

Early Payment Service
B2B Factoring

Transaction Lending

Early Payment Service

Transaction Lending

Online Payment

Spread(Merchant acquiring
service revenue )Overseas Lending

B2B Factoring

Medical Kakumei byGMO
Offline Payment (GMO-FG)
GMO Payment After Delivery
GMO B2B Pay On Credit
Overseas Lending

Ginko Pay/Processing

GMO Payment After Delivery
GMO B2B Pay On Credit

Online advertising service

Fee(Transaction
processing revenue)※

System Development

System Development

Offline Payment (GMO-FG)
GMO Payment After Delivery
GMO B2B Pay On Credit
Remittance Service
Sokkyu byGMO NEW
Delivery service

Offline Payment (GMO-FG)

Online advertising service

Payment
Enhancement
Business

SSL service
Delivery service
Medical Kakumei byGMO※ Online Payment includes pay-as-you-go payment, recurring payment, 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.

10

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(pg. 12-14)(pg. 15-17)(pg. 18)(pg. 19-20)

TAM（¥ trn）

2020

2025

20

45

（B2C EC）

352

408~

（B2B EC）

GMV（¥ trn）

OP（¥ bn）

Priority
Initiatives

5

13

7.5

18
~22

2020

1

2025

3

（Deferred payment)

8

2.5（Early Payment,
Transaction Lending）

200
－

200~
－

(Salary bank transfer）

1.8

3~

Platform

FinTechGMP

B2B payment service

B2B payment service

Sokkyu byGMO

Global(pg. 21)

2020

2025

2020

2025

2020

2025

2

2~

87

118

50

50~

（IT investment by
Financial Institutions

－

－

0.5

1~

Platform（Offline cashless market）

1

0.5

5

2~

(Overseas lending）

－

－

※2

－

3~

Offline Payment (IoT)

GlobalFinTechFinTech※1 Figures for TAM, GMV, OP (operating profit) are our estimates and targets. Figures are estimates and are rounded up to the nearest whole number. There is some overlap in the OP
figures for FinTech and Global. Offline OP includes companies other than GMO Financial Gate consolidated subsidiaries. TAM: Total Addressable Market, BaaS: Bank as a Service,
GMV: transaction value.
※2 The OP figure for Global is included in FinTech for FY2020.
※3 Global Major Players (GMP): large corporates that provide IT-utilizing services globally.

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

11

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
（％）

27.8

UK

■ Cashless penetration in Japan(ratio to private final consumption) （％）（¥ trillion)
29.7
Cashless penetration

80

クレジットカード
Credit card

70

電子マネー
E-money

デビットカード
Debit card

USA

25.0

Japan

19.1

20.0

QRコード
QR code

60

17.9

15.0
10.4
10.0
6.0
5.0

13.6
13.6

12.5

3.6

7.0
4.1

7.6
4.6

1.8

2.1

2.5

08

09

10

8.2
5.0

11.3

5.4

5.8

2.8

3.1

3.7

11

12

13

6.4
4.4

7.3
4.8

8.2
5.4

8.8

5.8

9.6

6.2

21.3

8.1

17.1

50

30

6.8

0
16

17

18

20
0.2

15
0.15

10
0.1

20

0.0
15

25
0.25

13.9

10

14

30
0.3

20.1

40

10.7

9.2

24.1

18.4

16.2
14.5

26.9

19

20

※Figures are GMO-PG estimates.
Sources：METI “FY2020 Global Survey Project Concerning Integrated Domestic
and External Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 1st Quarter 2021 Retail E-Commerce Sales Report”;
Office for National Statistics ”Retail Sales Index internet sales, June 2021”

5
0.05

0

13
14
15
16
17
18
19
20
※ 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 based on : 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.

12

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

B2B

B2C

C2C

Enormous market
potential¥1,000tr

Narrowly-defined
B2C EC market

Expansion phase

OfflinePayment
CAGR: 9.8%

¥19.3 trillion
EC ratio: 6.8%

Merchandise EC

OnlinePayment
CAGR: 8.6%

EC ratio (%)
Mrkt Size

B2B
Credit card
payment¥1.75 trillion

Public dues/Utility
・Local tax¥38tr
・National tax ¥61tr

2020
8.1
¥19.2tr

2025
14
¥40tr

Service, commerce
Subscription

Flea Market
App

Sharing Economy

Omni-channel

Broader EC
Consumer spending¥300trFlea Market※References：METI’s “FY2020 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)”※Payments Japan Association’s “Cashless Roadmap 2019”; Yano Research Institute’s “Online Payment/Settlement Service Providers 2018.”

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

13

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 FY2020:
17.5% (Up ＋0.6％ YoY)
TEPCO
EnergyPartner

Supporting digitalization of electric bill
payment to realize significant shift towards
paperless operations. Making progress inlateral deployment of service.

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

※Japan Broadcasting Corporation “Business Report for FY2020”

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

14

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

MSB-related assets

GMO Payment
Pay the sales proceed ahead of
After Delivery
the deposit from the consumer
GMO B2B Pay On Credit

Accrued revenues

Remittance service
Sokkyu byGMO NEW

Efficient and secure refund andremittance processing

Advances paid
※ reimbursement-type
Sokkyu byGMO

Overseas Lending/Transaction Lending

Lending of growth capital

Accounts receivable-trade(short term loans)

Early Payment
service

Improves cash flows by bringing
forward the payment date

Advances paid

B2B Factoring

Early cash conversion of accounts
receivable

Accrued revenues

Business Model
③

Fee

④

Spread③

Fee④

Spread④

Spread④

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

15

FinTech: GMO Payment After Delivery
Deferred payment provided by GMO Payment Service Inc.
■Market size of deferred payment■GMO Payment After Delivery/
GMO B2B Pay On Credit
Buyer can pay at a post office or CVS store after
receiving the goods
Payment term (deadline) is 2 weeks.

Robust growth of the Deferred Payment market.
Market size in FY2020 estimated at ¥882.0 billion.
Forecast to reach approx. ¥1.9 trillion in FY2024.

1,880（Unit: ¥ bn)

1,572
1,310

EC site

1,077③Goods delivery & receipt②Credit check⑤ Deposit

882①Order

（Est.）＋28.4％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 B2B Pay On Credit for B2Btransactions.

※ Source: “Online Payment/Settlement Service
Providers 2021” andNEW“Domestic Cashless Payment Market 2019” issued by Yano ResearchInstitute Ltd.
Figures for FY2020 are estimates and figures for 2021～2024 are forecasts.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

FinTech: Sokkyu byGMO
To be the de facto digital and seamless service provider in the¥220 trillion salary market
Collaboration with SMFG
2015

2016

2017

2018

2019

Growth Trend (image)
2020

2021

Positive BusinessprofitReorganization
Capital/Business alliance andThird-party placement

Target market

Service expansion（※）

Prepaid salary users
Approx. 2 mil.

Salary banktransfer market
Approx.
¥220 tr.

Launched
in July

Acceleration of new customer acquisitions（※）Major sectors: Logistics & transport, delivery, relocation services
Employment type: full-time, part-time, etc.

An establishedsalaryprepayment(“sokkyu”)
service

Expertise inpayment andremittanceEntered the enormous salary market
that still depends on old-fashioned
cash handouts and analog processes

2021

2007
SMBC Group launches Sokkyu※ SMFG: Sumitomo Mitsui Financial Group, Inc. SMBC Group: Sumitomo Mitsui Banking Corporation group (including Sakura Information System Co. Ltd.)

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

17

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

The Hiroshima Bank

Sumitomo Mitsui
Banking Corporation

Japan Post Bank

The Bank of Fukuoka

Ginko Pay
The Kumamoto Bank

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

GMO
Cashless
Platform

Bank of Yokohama

The Juhachi-Shinwa Bank Bank of Okinawa■ Cash-out (withdrawal) service※（As of June 30, 2021）

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)■ Processing Platform
A one-stop package of various payment solutions for
issuing and acquiring businesses, offered to banks,
credit card companies and general businesses.

■ Cash-in (deposit) service ※※ not available at certain stations of Tokyu Line.

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

18

IoT: Offline Payment Market
Further expanding the scope of business through cashless
migration and alliance strategy■Offline payment
GMO Financial Gate offers payment terminals for payments made 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 changing externalities such as
new lifestyles

Target: Unattended Market
Vending(Goods)TicketCoffee Machine

Fare Adjustment(Golf, hotel)

Vending(Beverage/Food)

EV Charging Stn.
Parking Fee

Self Check-out

Coin Laundry

Capsule toy
machineEmbedded-type EMV terminal ※with PIN

with PIN

with PIN

without PIN■steraRollout of a new payment platform to provide a onestop service that handles variety 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.

19

IoT: Offline Payment Market
SMBC GMO PAYMENT: Business reorganization andreinforcing the allianceBusiness reorganization (change in equity interest)
Large
Enterprise

SMBC
GMO-PG
SMCC

Before

After

51％
49％
0％

10％
40％
50％

SMBC stands for Sumitomo Mitsui Banking Corporation.
SMCC stands for Sumitomo Mitsui Card Company.

Service
ChargeStart-Ups
Small Enterprise

Terminal
Cost

Large～Medium size
EnterpriseCommission
Rate (%)

Rollout of “stera pack,” a solution service for SMEs

Visa/Mastercard: 2.70～2.90% (※)
Union Pay, E-money, QR/Bar Code: 3.25％※ First year is a flat rate of 2.80%. Second year onwards is arange on 2.70~2.90% based on Visa/Mastercard’s GMV in theprevious year.

¥3,000 per month x nos. of terminals
Only credit card payments accepted.
Free(※)※ Repaid and exchange is free (if no fault of the merchant)

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

Initialinvestment

Current market
value

FY2017FY2018FY2019FY2020Transaction value in Asia surging

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

21

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 (lower postal cost)
CF improvement service

Revenue
CoS/COGS
SG&A

Personnel
Rent
Communication

OP
BS

Asset
Cash

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’s
SMS Payment Choice
Cycle byGMO
GMO B2B 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.
22

ESG Initiatives
ESG initiatives are outlined on GMO-PG’s website and in the 27 th fiscal year
annual report.
■ GMO-PG website■Annual Report for the 27th Fiscal YearFor details, please click on the URL links below:
・GMO-PG website
https://www.gmo-pg.com/en/corp/esg/
・27th FY Annual Reporthttps://www.gmo-pg.com/en/corp/newsroom/pdf/201221_gmo_pg_en.pdf
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

Major subsidiaries and equity-method affiliates (IFRS standards)
Consolidated subsidiary

GMO Payment Gateway, Inc.

Equity method affiliate

Multi payment service（targets small-sized merchants）（FY2020）Revenue ¥3,994 mil., Ordinary income ¥2,607 mil. (J-GAAP)GMO Epsilon, Inc.

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)（As of end September 2020）equity stake: 59.6%

GMO Financial Gate, Inc.
Global Card System, Inc.

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

GMO Data, Inc.

Sumitomo Mitsui Card Company, Limited equity stake: 49.0%

Payment System Development

BUFFORT Inc.

(As of April 1, 2021) Equity stake: 100.0%

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.
Multiple payment service

SMBC GMO PAYMENT, Inc.

（As of end of Sep. 2020）equity stake 29.3％(As of April 1, 2021) Sumitomo Mitsui Card Company
Sumitomo Mitsui Banking Corporation
GMO Payment Gateway Inc.

equity stake: 50.0%
equity stake: 10.0%
equity stake: 40.0%

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

24

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

13,323 million yen

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

GMO Internet, Inc., Sumitomo Mitsui Banking Corporation, Mr. 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
Executive officer
Standing Auditor
AuditorExternal Auditor
External Auditor■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated subsidiaries

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
Katsuyoshi Sota
Kazutaka Yoshida
Takashi Iinuma
Kazuhiko Okamoto
Yumi Hokazono

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc., BUFFORT 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 June 30, 2021)

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

25

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¥1,594 million yen (As of June 30, 2021)■Major Shareholders

GMO Payment Gateway, Inc. and others■Management

President and CEO
ChairmanManaging Director
Director
Director
Director
External Director
External Auditor
External Auditor
Auditor■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated Subsidiaries

Global Card System, Inc. (Equity stake: 100%)

Kentaro Sugiyama
Akira Takano
Akio Aoyama(GM of Sales Department)
Masamitsu Ikezawa (GM of Administration Department and Corporate Planning)
Tomonaga Fukuda (GM of System Department） Yasuhiko Kimura
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)* Planning to change trade name to GMO Card System, Inc. on October 1, 2021

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 August 11, 2021)

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

26

GMO Medical Reservations Technology
Provides reservation management system to improve
operations at hospitals and clinics■Medical Kakumei byGMO■Corporate Overview

Seamless services that not only includes reservation
function, but also reception, e-medical record link※
and cashless payment function.

Corporate
name

GMO Medical Reservations Technology Co. Ltd.

Establishment April 11, 2016

① Reservation② Reception③ Consultation④ BillPayment■ Omatome Shinsatsuken by GMO
Bundle the multiple medical cards of several
hospitals and clinics onto a single app
Contributes to improving reception work efficiency
and cancellation rates

Other services also available
・Medical Kakumei byGMO for veterinary hospitals

Address Tokyo HQ: Humax Shibuya Building 7F, 1-14-6
Dogenzaka, Shibuya-ku, Tokyo
Hamamatsu Branch: Chanson Building 6F, 125
Daikumachi, Naka-ku, Hamamatsu-shi, Shizuoka
Capital¥259 million yen

Directors President and CEO Naoyuki Kumano
Director
Satoru Isozaki
Director
Takashi Mitani
Director
Kazunari Taguchi
Executive Officer Mineaki Hagita
Executive Officer Takayuki Koretomo

・Dentry byGMO※ The following services of reception machines for repeat visits, e-medical record links and payment functions are available as option services.

（As of June 30, 2021)

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

27

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.

28

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.

29