Supplementary Materials
Financial results briefing for FY2020

November 12, 2020
GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange First Section)

https://www.gmo-pg.com/corp/

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

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

（Mil. Yen）

Revenue

40,000■MACROKIOSK Revenue+20.4％■Revenue excl. MK

33,046※1

35,000Operating Profit

39,792

14,000+24.3%

12,00010,38810,00014,719

EBITDA ※2

12,985 14,000+25.0%

12,00030,000（Mil. Yen）

11,83910,00025,000
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

Operating stores

TRX Volume

TRX Value※3

141,573

2.57 bn¥5.8 trillion

2020/92021/9E

2019/92018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92008/92020/92021/9E

2019/92018/92017/92016/92015/92014/92013/92012/92011/92010/92020/92021/9E

2019/92018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92008/910,0002009/915,0002008/920,000IFRS（※1） Macro Kiosk’s earnings has been reclassified as discontinued operations with it’s deconsolidation in May 2020 and presented separately from the continuing operations as“Profit/Loss from Discontinued Operations”, as per IFRS accounting standards. The revenue, operating profit and profit before incomes taxes present the figures for 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 September 2020. Transaction volume and transaction value are the figures from October 2019 to September 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 324,062 stores as of end of September 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

Operating Profit
Breakdown（Actual data for FY2020)

1%

13%

etc.

28％
70％

86%

Money Service Business(MSB)

Payment Processing
Business

GMO Payment after Delivery
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※

141,573 stores(End of September 2020)

EC
B2B・B2C・C2C
PC

OnlinePayment

Taxes, Dues, Utility
NHK, National Tax Agency,
Automobile Tax
Municipalities (e.g. Tokyo)
Subscription
Video streaming
Software, Apparel

Smartphone

OfflinePayment
Payment Terminal

Service/Commerce
Digital content
Donation, Travel,
Insurance

41,317 terminals(End of September 2020)

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-paidetc.

※ Figures exclude a significant increase in operating stores from a specific merchant. If included, the number of operating stores is 324,062 stores as of end of September 2020.

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)Initial (Initial revenue)

①

②

③

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

Fee (Transaction processing revenue)

Large and middle-sized
merchants① ② ③ ④

Fee based on transaction volume
Coefficient: Number of payments processed
Revenue： Number of payments processed× _YenSpread (Merchant acquiring service revenue)④■Revenues by merchant type/size

Fee based on transaction value
Coefficient: Amount of payments processed
Revenue： Amount of payments processed× _%Start-ups④

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
the flow of revenue proceeds
Direct contract
Applies to some large companies
and municipalities

Payment
Processing

Payment
Processing
GMO-PG consolidated
subsidiaries

2.8% Merchant Discount Rate (MDR)

Merchant

CreditCard
Company

Revenue proceeds

Revenue type①

Initial

②

Stock

③

Fee

①

Initial

②

Stock

③

Fee

④

SpreadPayment
Company

0.5％ Spread(Merchant acquiring revenue)
Representative
contract

2.5％ charge

3.0％ charge

Mainly for SME’s but also
covers some large companies

GMO-PG consolidated
subsidiaries

3.2% MDR
Merchant

CreditCard
Company(MDR applied for direct contract withpayment company)※ 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)

Payment
Company
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）

J-GAAP

40,00038,00036,000MacroKiosk Revenue

IFRS

※

34,00032,00030,00028,000Spread26,00024,00022,00020,00018,00016,00014,000Fee

12,00010,000
8,000
6,000

Stock

4,000
2,000

Initial0
2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9
2008
2011
TSE
Launched
Launched
Listing
Early
OnlinePayment
AdvertisingService
Service※ GMO-FG stands for GMO Financial Gate. MK stands for MACROKIOSK.

2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9 2021/9E
2020
2016
2013
2014
2015
Deconsolidation
Launched Launched
Revamped Launchedof MK ※
services
Payment Transaction Early
After
Lending
Payment targeting banks
DeliveryService
GMO-FG and MK ※become subsidiaries

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

8

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

J-GAAP

40,00038,00036,000MacroKiosk Revenue※

34,000IFRS

Payment
Enhancement
Business
Money Service
Business

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
2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9
2011
2008
TSE
Launched
Launched
Listing
OnlineEarly
Advertising
Payment
Service
Service2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9 2021/9E
2014
2016
2013
2015
2020
Launched Launched
Revamped Launched
Deconsolidation
services
Payment Transaction Early
of MK ※
Lending
After
Payment targeting banks ※GMO-FG and MK
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.

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

Payment Processing※

Offline Payment (GMO-FG)
System Development
SSL Service

Payment Processing
Business※※

Offline Payment (GMO-FG)※

Ginko Pay/Processing

Online Payment

Stock(Fixed revenue)

Offline Payment (GMO-FG)

System Development

Ginko Pay/Processing

GMO Payment After Delivery

Online advertising service

Fee(Transaction
processing
revenue)

Remittance Service

Online Payment
Offline Payment (GMO-FG)
GMO Payment After Delivery
Remittance Service

Money Service
Business

Delivery service

Transaction Lending

Offline Payment (GMO-FG)
GMO Payment After Delivery
Overseas Lending
Early Payment Service
B2B Factoring

Early Payment Service
B2B Factoring

Online Payment

Spread(Merchant
acquiring
servicerevenue )Overseas 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

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

Narrowlydefined EC;
Broader EC(Page No.)

（P.12）（P.13～14）

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 Delivery
B2B Factoring Transaction Lending
Remittance Service
Early Payment Service

FinTech（P.15～16）

Cashless（P.17）

IoT（P.18）

Offline Payment (GMO-FG)

Global

（P.19）

Z.com Payment(Overseas payment service)

Ginko Pay
Processing Platform

Overseas Lending※ GMO-FG stands for GMO Financial Gate.

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 highproportion of cash payment■ Japan’s cashless penetration to private final
consumption expenditure■EC Penetration Rates in Developed Markets
（％）

17.9

UK

80

Japan

10.9

11.3
10.4

7.0

7.6

8.2

5.0

3.6
1.8

4.1
2.1

2.5

5.0
2.8

5.4
3.1

5.8
3.7

6.4
4.4

4.8

5.4

5.8

QR Code

0.25
25

21.6
20.3

0.2
20

18.6

17.1
13.9

8.8

7.3

6.0
4.6

8.2

60
50

9.9

9.2

10.0

24.6

Debit Card
E-money

12.5

0.3
30

Credit Card

70

14.5

（％）

27.4

Cashless Penetration

16.2

USA
15.0

19.1 （Trillion Yen）

6.2

6.8

40

0.15
15

30

0.1
10

20
0.05
5

10
0

0.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Figures are GMO-PG estimates.
Sources：METI. “FY2019 Global Survey Project Concerning Integrated Domestic andExternal Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 2nd Quarter 2020 Retail E-Commerce Sales Report”;
Office for National Statistics ”Retail Sales Index internet sales, September 2020”02013 2014 2015 2016 2017 2018 2019

※ 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.

12

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

OfflinePayment¥1.75 trillion

2018 2020
EC ratio (%) 6.2
7
Mrkt Size ¥17.9tr ¥20tr

B2B
Credit card
payment

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

2025
14
¥40tr

Service commerce
Subscription
Omni-Channel

Flea Market
App
Sharing Economy

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 2020 and after 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.

13

Broader EC: Public Dues and Utility Payments
Introducing card payments for public dues and taxes
since the amendment of the Local Autonomy Law in 2006

Sapporocity

Local
Local Taxes
governments, (automobile tax, light vehicle tax, fixed assets tax, etc.)
etc.
Water bill, gas bill, hometown tax
National tax credit card payment website
NHK
TEPCO
EnergyPartnerNational broadcasting subscription fee
Credit card usage rate at the end of FY2019:16.9% (Up ＋1.0％ YoY)
Supporting digitalization of electric
billpayment
Tokyo

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

Fukuokacity

Osakapref./city

Aichi pref.

*Japan Broadcasting Corporation “Business Report for FY2019”

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
After Delivery

Pays sales proceed without waitingfor deposit from consumer

Accrued revenues

Remittanceservice

Efficient and secure refund andremittance processing－

Business Model
③

Fee

④

Spread③

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.

15

FinTech: GMO Payment After Delivery
Deferred payment provided by subsidiary GMO Payment Service■GMO Payment After Delivery■Market size of deferred payment

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

Robust growth of the Deferred Payment market.
Market size in FY2019 estimated at ¥755 billion.
Forecast to reach approx. ¥2 trillion in FY2023.
（Unit: Bil. Yen)

EC site2,010.8

1,583.3

1,246.7②Credit check③Goods delivery & receipt⑤ Deposit

974.0①Order755.0（Est.）＋32.0％④Mailing invoice/payment slip
Convenience store
Post officeBank⑥Payment of purchase amount

User

Payment services with over 2 weeks
payment terms are also available

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

※ 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.

16

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

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

Cashless solution for offline stores which offers apackage of payments methods including QR/Bar codeand is scalable to include new payment methods

The Hokkaido Bank

QR/Bar code Payment
services

OfflineThe Hiroshima Bank

Sumitomo Mitsui
Banking Corporation

The Bank of Fukuoka

GMO
Cashless
Platform

Japan Post Bank

Ginko Pay
The Kumamoto Bank

Bank of Yokohama■Processing Platform

The Juhachi-Shinwa Bank Bank of Okinawa（As of October, 1 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)

A one-stop package of various payment solutions for issuingand acquiring businesses, offered to banks, credit cardcompanies and general businesses.

■Cash-In Service ※※ not available at certain stations of Tokyu Line.

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

17

IoT: Offline Payment Market
Rollout of IoT services; capture cashless & inbound demand■Offline payment
GMO Financial Gate offers payment terminals for payments at offline stores.
Target: Unattended Market■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

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 one-stop terminal compatible toa 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.

18

Global: Overseas Strategy
Expand customer coverage through strategic investments and assisting
Japanese companies’ foray into the Asian market■Investment target
Asia: Top payment-related company■Payment processing business
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

USA

TaiwanIndia

Hong Kong
ThailandPhilippines
Vietnam
Malaysia
Singapore

＋61％
YoY

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

GMO Global Payment FundJapan’s first Fintech fundtargeting payment-related
startups in Asia (AUM ¥2bn)

NearlyTripledIndonesia

GDP
Approx.＄4.5T
5-6% Growth

FY2016

Initial Investment

Current Market
Value

FY2017FY2018FY2019FY2020Transaction value in Asia surging

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

19

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

Consolidated subsidiary
Equity method affiliate

Multi payment service（targets small-sized merchants）（Financial results of FY2019）
Revenue：¥3,483mil, Ordinary income: ¥2,350mil (J-GAAP)GMO Epsilon, Inc.

GMO Medical Reservations Technology Co., Ltd.
Payment After Delivery

GMO Payment Service, Inc.

（Financial results of FY2019）
Revenue: ¥5,048mil, Ordinary income: ¥1,212mil (J-GAAP)

Offline payment (TSE Mothers: Security code 4051)

GMO Financial Gate, Inc.

（As of July 15, 2020）60.8％ stake

Global Card System, Inc.

GMO Financial Gate, Inc. equity stake 51.0%

GMO Data

Sumitomo Mitsui Card Company, Limited equity stake 49.0%(As pf July 15, 2020)

Overseas

GMO-Z.COM PAYMENT GATEWAY PTE. LTD.

（Singapore）

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）

Overseas

2C2P Pte. Ltd.

（As of end of Sep. 2019）equity stake 33.0％

Multiple payment service

SMBC GMO PAYMENT（As of end of Sep. 2019）49.0％ stake

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

20

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

4,712 million yen

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

Masatoshi Kumagai
Issei Ainoura
Ryu Muramatsu
Satoru Isozaki
Yuichi Hisada
Masashi Yasuda
Takehito Kaneko
Hiroyuki Nishiyama
Hirofumi Yamashita
Masaya Onagi
Akio Sato
Tomoyuki Murakami
Shinichi Sugiyama
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 October 1, 2020)

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

21

GMO Financial Gate, Inc.: Overview■Name

GMO Financial Gate, Inc. (TSE Mothers, security code 4051)■Date of Establishment■Location■Capital Stock■Major Shareholders■Management

September 1999
Humax Shibuya Building 7F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo¥1,453 Mil.
GMO Payment Gateway, Inc. and others
President and CEO Kentaro Sugiyama
Chairman
Akira Takano
Managing Director Yasuhiko Kimura(General Manager of Administration Department)
Director
Junya Tokuyama(GM of System Department）
Director
Akio Aoyama(GM of Sales Department)
Director
Masaru Yoshioka(Managing Executive Officer of GMO Payment Gateway Inc.)
External Director
Nao Shimamura
External Auditor
Takayoshi Nagasawa
External Auditor
Satoru Ozawa
AuditorTakashi Iinuma(CPA; Representative of Iinuma General Accounting Firm)■Auditor■Consolidated Subsidiaries

Deloitte Touche Tohmatsu LLC
Global Card System, Inc. (100% stake as of July 15, 2020)
GMO Data, Inc. (51.0% stake as of July 15, 2020)■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 July 15, 2020)

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

22

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

Payment
company

Merchants①order 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.

23

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

Network

Real-time credit decision
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.

24