Member of Financial Accounting Standards Foundation

Summary of Consolidated Financial Statements for the Term Ended September 30, 2017
November 2, 2017
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 for the holding of the ordinary
general shareholders’ meeting

December 17, 2017

Scheduled date of commencementfor dividend payment

December 18, 2017

Scheduled submission date of securities report

December 18, 2017

Supplemental materials prepared for financial
results:Yes

Information meeting arranged related tofinancial results:Yes (for institutional investors and analysts)

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

1.

Consolidated Financial Statements for the Term Ended September 2017
(From October 1, 2016 to September 30, 2017)(1) Consolidated Financial Statements(Percentages represent year-on-year % change)
Revenue
FY2017FY2016

Operating profit

Million yen
21,794
12,113

%
79.9
34.1

Million yen
5,015
3,819

Ordinary profit

%
31.3
28.3

(Note) Comprehensive income: FY2017: 3,490 million yen (31.8%)

FY 2017
FY 2016

Net profit per share
Yen
79.36
78.36

Diluted net profit
per share
Yen
－
78.36

Million yen
4,739
3,780

%
25.4
26.0

Profit attributable toowners of parent
Million yen
%
2,948
1.3
2,910
57.1

FY2016: 2,649 million yen (40.5%)

Return on equity
%
15.2
17.0

Reference: Equity in earnings of affiliates: FY 2017: △352 million yen

Return on assets
%
6.9
7.8

Operating profit
ratio on net sales
%
23.0
31.5

FY 2016: △15 million yen(Note)In order to appropriately disclose the net profit per share, in regard to the stock attributed to the directors’ remuneration board incentive plan trust, it has the right to a claim ofdividend, and is therefore, not included in treasury stock.

(2) Consolidated Financial Position

FY2017FY2016

Total assets
Million yen
83,12555,186

Net assets
Million yen
21,686
19,269Reference: Equity: FY2017: 20,593 million yen(3) Consolidated Cash FlowsFY 2017
FY 2016

2.

Cash flow from operating
activities
Million yen
1,749
△748

Equity ratio
%
24.8
32.9

Net assets per shareYen
554.35488.88Cash flow from financing
activities
Million yen
2,635
△654

Closing balance of cash
and cash equivalents
Million yen
27,57525,187FY2016: 18,160 million yen
Cash flow from investing
activities
Million yen△1,984△3,415

Dividends
Dividends per share

FY 2016
FY 2017
FY 2018 (forecast)

3.

1Q
Yen
0.00
0.00
0.00

2Q
Yen
0.00
0.00
0.00

3Q
Yen
0.00
0.00
0.00

Year-end
Yen
27.00
40.00
49.00

Total
Yen
27.00
40.00
49.00

Amount ofdividends(total)Million yen
1,002
1,485

Dividends
Ratio of dividends topayout ratio
net assets(consolidated)(consolidated)
%
%
34.5
5.8
50.4
7.7
50.1

Consolidated Financial Forecast for the Fiscal Year Ending September 2018
(From October 1, 2017 to September 30, 2018)(Full year % represents previous term comparison; Interim % represents year-on-year change)
Revenue
Million yen
2Q of FY 2017
(cumulative)
Full year%

Operating profit
Million yen%

Ordinary profit
Million yen%

Profit attributable toowners of parent
Million yen%

Net profit per
share
Yen

12,638

26.5

2,944

16.1

2,835

19.6

1,770

63.3

47.66

27,283

25.2

6,269

25.0

6,033

27.3

3,635

23.3

97.87

1

Notices:
(1)
(2)

(3)

Changes of important subsidiaries during the period (change of specific subsidiaries that lead to a change in thescope of consolidation): 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 in accounting policy other than [1]: No[3] Changes in accounting estimations: No[4] Restatement of corrections: No
Number of shares issued (common stock)
FY2017: 37,150,500
FY 2016: 37,150,500[1] Number of shares issued at the end of the term(including treasury stock)
FY 2016: 2,500[2] Number of treasury shares at the end of the term FY2017: 2,500
FY2017: 37,148,000
FY2016: 37,146,617[3] Average number of shares during the term
(Note) In order to appropriately disclose the number of treasury shares at the end of the term and average number of shares
during the term, 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.

(Reference) Summary of Non-consolidated Statements
Non-consolidated Financial Statements for the Term Ended September 2017
(From October 1, 2016 to September 30, 2017)(1) Non-consolidated Financial Statements(Percentages denote the increase or decrease from the previous period)
Revenue
Operating profit
Ordinary profit
Net profit
FY 2017
FY 2016

Million yen
11,613
9,144

%
27.0
35.5

Million yen
3,468
2,397

Net profit per share

%
44.7
29.7

Million yen
4,087
2,777

%
47.2
25.5

Million yen
2,973
2,100

%
41.6
40.1

Diluted net profit per share

Yen
80.04
56.54

Yen
－
FY 201756.53
FY 2016(Note) In order to appropriately disclose the net profit per share and diluted net profit per share, in regard to the stock attributed to thedirectors’ remuneration board incentive plan trust, it has the right to a claim of dividend, and is therefore, not included in treasury stock.

(2) Non-consolidated Financial Position

FY 2017
FY 2016
Reference:

Total assets
Million yen
54,86739,251

Net assets
Million yen
17,967
15,748

Shareholders’ equity: FY 2017: 17,967 million yen

Equity ratio
%
32.7
40.1

Net assets per shareYen
483.68423.93

FY 2016: 15,748 million yen* These quarterly financial statements are not subject to the quarterly review procedures.
* Notes regarding the appropriate use of financial forecast 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 in using financial forecasts, please refer to“(5) Outlook” under “1. Status of consolidated
operating results” on page 8 of the attachment.
2) Results Presentation for Investors and Analysts: November 6, 2017. Supporting materials and a video of the presentation will be madeavailable on the company's website after the event.

2

○Table of contents of attachment
１．Status of Operating Results ……………………………………………………………………………………………

4（１）Status of consolidated operating results…………………………………………………………………………

4（２）Status of consolidated financial position…………………………………………………………………………

6（３）Status of consolidated cash flows ………………………………………………………………………………f7（４）Basic policy on profit sharing and distribution for the current and next term ………………………………

7（５）Outlook………………………………………………………………………………………………………………

8

２．Management Policy ……………………………………………………………………………………………………

9（１）Basic management policy of the Company ……………………………………………………………………

9（２）Target management index …………………………………………………………………………………………

9（３）Challenges to be addressed by the Company …………………………………………………………………

9

3．Basic Stance on Accounting Standard Selection ……………………………………………………………………

11

4．Consolidated Financial Statements and Major Notes ………………………………………………………………… 12（１）Consolidated balance sheet ………………………………………………………………………………………

12（２）Consolidated statement of income and statement of comprehensive income ………………………………

14（３）Consolidated statement of changes in equity …………………………………………………………………… 16（４）Consolidated statement of cash flows ……………………………………………………………………………

18（５）Notes regarding the consolidated financial statement…………………………………………………………

20(Notes regarding the going concern assumption) …………………………………………………………………

20(Additional information)………………………………………………………………………………………………

20(Notes for the consolidated quarterly profit and loss statement) ………………………………………………… 20(Segment information and others)……………………………………………………………………………………

21(Per share data) ………………………………………………………………………………………………………

24(Significant subsequent events) ……………………………………………………………………………………

24

5．Others ……………………………………………………………………………………………………………………

25

Changes of directors …………………………………………………………………………………………………

25

－

3 －

1. Status on Operating Results(1) Status of consolidated operating results①Operating results for the current period
Regarding the economic environment in Japan during the period under review, Japan’s economic recovery
remained mild due to uncertainties surrounding foreign economies and mounting geopolitical risks despite thebenefit of the government’s economic and fiscal policies as well as Bank of Japan’s monetary easing program
showing in continued recovery of corporate earnings, employment and income.
The group’s core business is positioned in Ecommerce market in Japan. Japan’s B2C Ecommerce formerchandizing continues to grow rapidly, helped by favorable changes in the group’s external environment such as
spreading smartphone usage and logistic reforms. At the same time, horizon of Ecommerce market is broadening,
represented by enlarging B2B and C2C Ecommerce. Payment activities have been shifting online, not just in nonmerchandizing, service Ecommerce space but also in non-Ecommerce space as represented by public dues (utility
payments and taxes) as well as medical expenses and other areas closely related to everyday life. GMO Financial
Gate, Inc., which became our consolidated subsidiary in the previous period, is positioned in card-present market.
Card-present market in Japan is enjoying solid credit card shopping and is expected to accelerated growth with thegovernment’s initiatives to promote cashless payments ahead of the upcoming 2020 Olympics and Paralympics.
Such trend is estimated to generate new business opportunities and to enlarge the group’s business fields.
With regard to overseas business, we established subsidiaries and other entities in Southeast Asia to provide“Z.com Payment”, a compilation of necessary payment methods to Japanese merchants advanced in the local
area. At the same time, we are enlarging investment activities through “GMO Global Payment Fund” to form capitalalliances with promising, local payment-processing companies, which also showed robust performance. With aview to incorporate huge growth potential of Southeast Asia, the world’s growth center, into the group’s mid-to-longterm business, we have been taking various measures delivering group synergies. During the previous accounting
period, we acquired a substantial stake in Macro Kiosk Berhad, a leading, enterprise mobility solution enabler
based in Malaysia offering comprehensive services on mobile payment, authentication and notification.
Given the expansion of payment processing service with improved transaction volume and value, acquisition oflarge businesses, acquisition of’ a major merchant by GMO Payment Service, Inc. and consolidation benefit ofMacro Kiosk and GMO Financial Gate, Inc., the group has recognized a revenue of 21,794,783 thousand yen(79.9％ year-on-year increase) for the fiscal year under review.
Concerning cost of revenue, solid performance of high cost-ratio products such as “GMO-PG Remittance Service”,“GMO payment after delivery” and sales of payment terminals by GMO Financial Gate, Inc. pushed up group-wide
cost of revenue ratio despite the scale of economy advantages. As a result, cost of revenue amounted to 6,687,176
thousand yen (141.5% year-on-year increase). Selling, general and administrative expenses came to 10,092,156
thousand yen (increase of 82.7% on a year-on-year basis) due to the increase of MSB related selling cost andincrease in personnel expenses that came with resource expansion. The operating profit grew 31.3% year-on-year
to 5,015,450 thousand yen.
With regard to non-operating income and expenses, equity method investment loss of 352,599 thousand yen has
been posted, which put ordinary profit at 4,739,954 thousand yen (increase of 25.4% on a year-on-year basis).
Under extraordinary loss, we posted loss on changes of equity of 187,345 thousand yen. For income taxes, income
taxes adjustment was 984,104 thousand yen after recording deferred tax assets related to surged temporary
difference that transaction volume expansion by GMO Payment Service, Inc., etc. brought about.
As a result, profit attributable to owners of parent came in at 2,948,230 thousand yen (increase of 1.3% on a yearon-year basis) ahead of our initial plan.
② Results by segment
Performance by reportable segment is explained below.
From the fiscal year under review, business segment categorization methodology has changed, and several
business segments previously included in “Other” have been aggregated as “Payment Enhancement Business”
which was added on as a new reporting segment. And Macro Kiosk Berhad, which started being included in the
consolidated profit and loss statement from this fiscal year, is also included in Payment Enhancement Business－ 4 －category.
Segment

Previous consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)

8,632,192
5,066,667

11,914,433
6,579,818

38.0
29.9

2,242,795
216,883

5,801,797
226,080

158.7
4.2

1,239,088
159,485

4,078,552
508,382

229.2
218.8

△212
△1,623,529－△2,298,830－－

12,113,864
3,819,506

21,794,783
5,015,450

79.9
31.3

Payment Processing Business
Revenue (thousand yen)
Operating profit (thousand yen)
Money Service Business
Revenue (thousand yen)
Operating profit (thousand yen)
Payment Enhancement Business
Revenue (thousand yen)
Operating profit (thousand yen)
Adjustments
Revenue (thousand yen)
Operating profit (thousand yen)
Total
Revenue (thousand yen)
Operating profit (thousand yen)

Rate ofchange (%)

a. Payment processing business
For the online space of payment processing business, the Ecommerce market expanded its size and horizon while
the Company also received system development business from large operators.
The group has been attempting to develop recurring payment field as represented by public dues (utility payments
and taxes) as well as other monthly services closely connected with everyday life by enabling the usage of credit
cards. The group has been providing processing services to public institutions such as local municipalities
throughout Japan (as represented by “Metropolitan Tax Credit Card Payment Site” for Tokyo metropolitan
government) and National Tax Agency (national tax credit card payment site).
The number of operating merchants at the end of the current consolidated fiscal year increased by 5,093 to 82,349
compared to the same time last year. Transaction volume and value both steadily increased.
We decided during the period under review to offer a system platform of “smartphone payment service linked withbank accounts” to Bank of Fukuoka, Ltd. We also reached a basic agreement with Bank of Yokohama, Ltd. andAlmex Inc. to enter into discussion on smartphone payment integration and cash out service.
Changes in number of operating stores
End of September

End of September End of September

End of September

End of September

2013

2014

2016

2017

2015

Number of operating

44,32849,72559,55977,256
82,349storesNote: Number of operating stores is the number of IDs assigned to stores to use the service. It shows the number of stores(merchants) which have an agreement with the group, are connected to the system, and in principle are able to process
payments at any time, though the number does not include the stores which use non-payment processing services (GMO
Payment after delivery service, Online Advertising service, etc.) or the number of operating terminals provided by GMO
Financial Gate, Inc.

For card-present field, GMO Financial Gate, Inc. that became a consolidated subsidiary in the previous fiscal year
made significant contribution through its payment processing service.
These factors have resulted in segment revenue of 11,914,433 thousand yen (up by 38.0% year-on-year) andsegment operating profit of 6,579,818 thousand yen (up by 29.9% year-on-year).
b. Money Service Business
Money Service Business (MSB) includes “early payment service” to help merchants receive sales proceeds earlier
and improve their cash flow, “transaction lending service” to provide loans that give merchants capital they need toboost sales, and “GMO-PG Remittance Service”. In addition, our subsidiary GMO Payment Service, Inc. provides“GMO Payment after delivery” service that allows users to pay after receiving goods. The highly-demanded “GMO
Payment after delivery” service has been adopted by an increasing number of merchants and has performed
favorably since its introduction in May 2013.
Revenue was 5,801,797 thousand yen (increase of 158.7% on a year-on-year basis) and profit for the segment－

5 －(operating profit) was 226,080 thousand yen (4.2% year-on-year increase).
c. Payment Enhancement Business
Payment Enhancement Business includes services of mobile payment, authentication and notification
comprehensively provided by Macro Kiosk Berhad, “GMO-PG Online Advertising Service” intended to boost
merchant sales, SSL server certifications, and shipping services. During the consolidated year, services of Macro
Kiosk Berhad and “GMO-PG Online Advertising Service” showed solid growth.
Revenue was 4,078,552 thousand yen (increase of 229.2% on a year-on-year basis) and profit for the segment(operating profit) was 508,382 thousand yen (increase of 218.8% on a year-on-year basis).
③ Results by revenue model
Performance by revenue model is explained below.
Starting from the consolidated accounting period under review, we have changed the segmentation of our revenue
models and split "running revenue" into "stock (monthly revenue)" and "fee (transaction processing revenue)". We
have also resegmented items included per revenue model to communicate more accurate management indicators.
In line with these changes, part of the commissions received in “GMO payment after delivery,” which is the revenue
computed by transaction value times a certain rate, has moved from fee (transaction processing revenue) to spread(merchant acquiring service revenue.) Accordingly, in the comparison below, figures from the previous fiscal year
have been restated to reflect the changes.

Business modelPrevious consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)

Rate ofchange (%)

640,111

1,366,011

113.4

2,926,798

3,692,436

26.2

2,935,426

6,735,698

129.5

5,611,527

10,000,636

78.2

12,113,864

21,794,783

79.9

Initial(thousand yen)
(Initial revenue)
Stock(thousand yen)(Monthly revenue)
Fee(thousand yen)
(Transaction processing revenue)
Spread (thousand yen)
(Merchant acquiring service revenue)
Total (thousand yen)
(2) Status of consolidated financial position
Assets, liabilities and net assets（Assets）

The balance of total assets at the end of the current consolidated fiscal year was 83,125,601 thousand yen, up
27,938,859 thousand yen as compared with the same time last year. This increase was mainly due to an increase of
cash and deposits (+2,391,943 thousand yen), an increase of advance payments-trade (+10,417,266 thousand yen),
an increase of accounts receivable-other (+12,935,964 thousand yen) and an increase of allowance for doubtful
accounts (+2,065,900 thousand yen). It is the expansion of “GMO payment after delivery” service that mainly
accounts for the increase in accounts receivable-other.
（Liabilities）
The balance of liabilities at the end of the current consolidated fiscal year was 61,439,408 thousand yen, up
25,521,784 thousand yen as compared with same time last year. This increase was mainly caused by an increase inaccounts payable-other (+9,774,178 thousand yen), an increase in deposits received of 9,772,464 thousand yen andan increase in long-term borrowings (+2,969,350 thousand yen). The increase in accounts payable-other mainly
came from increased “GMO payment after delivery” transaction, and the increase in deposits received mainly camefrom the surge in deposits from merchants under representative merchant agreement.
（Net assets）
The balance of net assets at the end of the current consolidated fiscal year was 21,686,192 thousand yen, up
2,417,074 thousand yen as compared with same time last year. The increase was mainly caused by recording profit
attributable to owners of parent of 2,948,230 thousand yen offset by a decrease of 1,002,996 thousand yen as aresult of a distribution of surplus as dividends.

－

6 －(3) Status of consolidated cash flows
At the end of the current consolidated fiscal year, cash and cash equivalents (the “Funds”) for the fiscal year underreview totaled 27,575,173 thousand yen, up 2,387,637 thousand yen when compared with the balance at the
beginning of the current period. Cash flows for the current consolidated fiscal year are as follows.
（Cash flow from operating activities）
The Funds gained as a result of operating activities for the fiscal year under review were 1,749,955 thousand yen(748,659 thousand yen was used for the same period of the previous year). This was mainly due to recording
4,470,554 thousand yen as profit before income taxes, an increase of allowance (+1,996,147 thousand yen), a
decrease in lease receivables of 864,612 thousand yen, an increase in accounts payable-other (+9,796,639
thousand yen) and 9,772,464 thousand yen of increase in deposits despite an increase in accounts receivable(+2,106,873 thousand yen), an increase of advance payments-trade (+10,417,266 thousand yen), an increase ofaccounts receivable-other (+12,775,948 thousand yen).
（Cash flow from investing activities）
The Funds used as a result of investing activities for the current consolidated fiscal year were 1,984,622 thousandyen (3,415,138 thousand yen was used for the same period of the previous year). This was mainly due to thepurchase of intangible assets (1,065,087 thousand yen), purchase of investment securities (221,236 thousand yen)and purchase of stocks of subsidiaries and affiliates (466,122 thousand yen).
（Cash flow from financing activities）
The Funds obtained as a result of financing activities totaled 2,635,568 thousand yen during this fiscal year
(654,646 thousand yen was used in the previous fiscal year). This was mainly due to proceeds from long-termborrowings for 4,000,000 thousand yen despite cash dividends paid for 1,001,247 thousand yen, repayment oflong-term borrowings for 264,739 thousand yen.
The trend of the group’s cash flow indices is as follows.
Equity ratio (%)
Equity ratio on a market value basis (%)
Interest-bearing debt to cash flows ratio (%)
Interest coverage ratio (times)

Notes: 1.

2.
3.

4.

5.

FY 2013
26.4
216.2
1.8
960.3

FY 2014
27.7
348.0
4.5
1,843.7

FY 2015
38.7
408.4
3.0
2,058.7

FY 2016
32.9
354.1
－
－

FY 2017
24.8
314.6
232.0
60.7

Method of computing the abovementioned indices
Equity ratio: shareholders’ equity ÷ total assets
Equity ratio on a market value basis: total market capitalization ÷ total assets
Interest-bearing debt to cash flows ratio: interest-bearing debt ÷ operating cash flows
Interest coverage ratio: operating cash flows ÷ interest payments
Each index was computed based on consolidated financial values.
The total market capitalization was computed by multiplying the closing share price at the endof the term by the number of outstanding shares at the end of the term (excluding treasury
stock)
As for operating cash flows and interest payments, “net cash provided by (used in) operating
activities” and “interest expenses paid” recorded in the consolidated statements of cash flows
were used.
The interest-bearing debt to cash flows ratio and interest coverage ratio are omitted for the
FY2016, because that fiscal year’s operating cash flow was negative.

(4) Basic policy on profit sharing and distribution for the current and next term
We consider that returning stable profit to our shareholders while continuing to secure retained earnings necessary
to expand business and to reinforce corporate robustness is our major management mission. We are planning to
pay 40 yen per share as dividend for the fiscal year under review.
As for the dividend for the next term, considering the strong expectations for our business expansion, we areplanning a dividend payout of 49 yen per share in a bid to further strengthen shareholder returns by continuing theconsecutive dividend increase and to enhance corporate value in the medium-to-long term.
We are committed to continue to effectively use our retained earnings for further enhancement of our corporate
strength and proactive business expansion.

－

7 －(5) Outlook
The group’s core business is positioned in Ecommerce market in Japan. Japan’s B2C Ecommerce formerchandizing continues to grow rapidly, helped by favorable changes in the group’s external environment such as
spreading smartphone usage and logistic reforms. At the same time, horizon of Ecommerce market is broadening,
represented by enlarging B2B and C2C Ecommerce.
For the accounting period ending September 2018, the group forecasts expansion in all its segments of payment
processing business, money service business and payment enhancement business by acquiring large and growing
merchants or financial institutions, acquiring large businesses, expansion of “GMO payment after delivery” andfurther growth of Macro Kiosk Berhad.
Consequently, our earnings forecast for consolidated accounting period ending September 30, 2018 are as follows:
revenue 27,283 million yen (25.2% year-on-year increase); operating profit 6,269 million yen (25.0% year-on-yearincrease); ordinary profit 6,033 million yen (27.3% year-on-year increase); profit attributable to owners of the parent
3,635 million yen (23.3% year-on-year increase).
(Reference) Consolidated earnings forecast (IFRS)Fiscal year ending September 30, 2018
Second quarter (cumulative)

Full year

Revenue

11.9 billion yen

26.1 billion yen

Operating profit

3 billion yen

6.4 billion yen

Profit attributable to ownersof the parent

1.8 billion yen

4.1 billion yen－

8 －2．Management Policy(1) Basic management policy of the Company
The management principle of the group is to “pursue both spiritual and material prosperity for our partners bycontributing to society.”■We contribute to the progress of our society with a strong intention to create and develop markets, and withtransparency in expanding businesses.
■We define our partners as our employees of high morals, customers and business partners.
■Our employees possess richness of spirit, advanced problem-solving abilities, and a high level ofprofessionalism. They always pursue richness of spirit when they exchange values with our customers.
Based on the management principle, our mission is to become the best payment infrastructure in Japan and tocontribute to safe and easy use of payment processing services for merchants and consumers. We are expanding
our businesses according to the following management policy:●Be responsive to society’s diverse and changing needs
Spirit of innovation： We strive to maintain/support technical superiority of our products
Flexibility： Our project proposals are appropriate for the growing market’s speed.
●Establish the value of existence
Uniqueness： We strive to maintain the value of our company's existence through customer-oriented services.
Profitability： We surpass competitors by pursuing revenue growth, and establish an unwavering position in the
Industry.
Independence / Education: Our training program is designed to cultivate business people with a high level of selfsufficiency who will become model employees in all aspects: performance results, attitude, and mindset.
●Pursue all possible conditions for making profit
Sociability： With a focus on healthy business, we will continue to actively develop untapped markets in the areaof various payment processing solutions.
Rationality： We always make business judgments quickly and impartially considering important economic
rationality.
●Be responsible to shareholders
We strive to maximize the shareholder value by considering capital efficiency.
In actively conducting IR activities we always provide our shareholders with appropriate information.
(2) Target management index
The group’s main management goal is a 25% growth in operating profit.
After the investments necessary to maintain a 25% CAGR in the medium-to long-term, operating profit increased 31%
in the fiscal year ended September 30, 2017. We forecast operating profit to grow 25% in the fiscal year ending
September 30, 2018.
The group will continue to deliver online payment infrastructure, contributing to the creation of a more convenient andsecure Ecommerce environment and improvement of Japan’s Ecommerce ratio. We will also endeavor to expand ouroperations by developing new businesses, capital/ business tie-ups with partners, founding new subsidiaries, andexpanding services globally.
*In line with its expanding operation, from the fiscal year under review, the group has decided to use operating profit
growth rate instead of ordinary profit growth rate as its new management index in an attempt to manage its businessreturn more appropriately. In addition, we will be monitoring EBITDA (operating profit + depreciation + amortization of
goodwill) growth rate.
(3) Challenges to be addressed by the Company①Strengthening the information security
We provide credit card payment processing services, and process and manage material information such as credit
card numbers. As part of the process to strengthen risk management system and prevention of information leaks,
we obtained certifications of ISO/IEC 27001:2013 (Japanese Standards, JIS Q27001: 2014), the global standards
for information security management, for all of our business offices for the first time as a listed payment processing－

9 －services company. Consequently, our information security management system has been objectively assessed tobe appropriate and safe in compliance with strict international standards.
With regards to PCI DSS which was jointly established by five international credit card companies: JCB; American
Express; Discover; MasterCard; and VISA, after obtaining the first certification in December 2008, we have passed
annual recertification review eight times and have obtained the latest certification in December 2016.
Meanwhile, with respect to the handling of personal information, we obtained the privacy mark that certifies thecompanies which have improved the system for taking appropriate protection measures for personal information incompliance with the Japanese Industrial Standards “JIS Q 15001:2006 Personal Information Protection
Management System – Requirements.” We have independently established and operate the personal information
protection management system at a high level of protection in a manner that goes beyond mere compliance withthe laws.
Despite the fact that we have handled our information security as above, between 8th and 9th March 2017,
unauthorized external accesses exploiting vulnerability of Apache Struts 2 that is the application framework havebeen confirmed in two websites of our consignment merchants, and occurrence of incidents resulting in leakage ofcredit card information as well as personal information of users of the websites have been confirmed.
We have concluded that objective, professional, fair and transparent investigation, examination and determination
would be required for ascertaining factual situations, investigation into causes of incidents, and setting out
countermeasures for recurrence prevention of this matter; Recurrence Prevention Committee, which includes
external experts, was established on 14th March 2017, and a report was published on 1st May, 2017, regarding
findings from investigations carried out up to 30th April 2017. For further details, please refer to “Notice of theInvestigation Report of the Recurrence Prevention Committee” that was announced on 1st May, 2017.
We will continue to take note of findings by Recurrence Prevention Committee and will endeavor to recover trusts
from our customers, by promoting security enhancement through steady, all-out implementation of technical andorganizational enhancements across the entire company.
②Strengthening the system development capabilities
The group’s business fields are deeply related to the Internet and we recognize that to provide customers withcompetitive products, it is important to adopt competitive technologies and services in a timely manner.
At present, our internal personnel incorporate changes in the system environment or requests from customers into
our system designs and outsource programming work to provide efficient and quality services. We will try tocontinue to secure highly-skilled developers and further strengthen system development capabilities and services.
③Strengthening the collaboration business
We recognize that to ensure stable growth, it is essential to establish mutually-beneficial business collaborations
with corporations covering many merchants, payment companies or Ecommerce website builders to efficiently
acquire new merchants.
The Company is fond of employing the above-mentioned business style, and it will continue to seek more of suchbusiness collaborations, which are and will be tracked by its management team.
④Expansion of business portfolio
As its management strategy, the group has always strived to expand its business domains; we have stretched
online payment fields of our coverage from mainly in B2C Ecommerce to public dues, utility charges, service
commerce, B2B and C2C market space; we have also started a new type of payment service with the founding of
GMO Payment Service Inc. In the previous fiscal year, we strengthened our overseas operations by acquiring
Macro Kiosk Berhad, and expanded offline payment business by turning GMO Financial Gate Inc. into our
subsidiary. We will continue to stretch our multifaceted business portfolio with its core being payment processing
service, and strive to consecutively boost profits.

－

10 －

3．Basic Stance on Accounting Standard Selection
The group plans to voluntarily adopt International Financial Reporting Standards (IFRS) from the first quarter of the
fiscal year ending September 30, 2018 considering its engagement in global business expansion. Migration to IFRS
should improve convenience on the part of our various stakeholders including domestic/overseas shareholders andinvestors, making comparison of our financial data with overseas peers easier and allowing for more expandeddisclosure.

－

11 －

4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Unit: Thousand yen)

Summary of balance sheet atthe end of the previous
consolidated fiscal year
(September 30, 2016)

End of the current
consolidated fiscal year
(September 30, 2017)25,231,522
3,924,904
7,291,439
38,377972
6,388,955
118,723
300,169
1,742,612
839,372△327,887
45,549,162

27,623,466
6,254,193
6,426,827
93,720757
16,806,222
173,200
1,251,001
14,678,576
1,433,354△2,393,788
72,347,531

144,694△61,551
83,143504,090△381,308
122,782306,340△159,985
146,354352,280

190,942△112,435
78,507516,282△390,584
125,698
362,164△166,781
195,382399,588

1,686,682
17,450212
1,079,334
1,360,069
4,143,749

1,619,708
25,719153
1,586,738
1,273,310
4,505,631

2,251,124
2,203,234

2,704,216
2,318,656

309,174

420,998

962

467

31,46849,3598,285
231,035
57,29480,437△31,468
5,141,549
9,637,579
55,186,742

6,907
325,555
16,84879,200△49,359
5,872,850
10,778,069
83,125,601

AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Lease receivables
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
Cumulative depreciation
Buildings, net
Tools, furniture and fixtures
Cumulative depreciation
Tools, furniture and fixtures, net
Lease assets
Cumulative depreciation
Lease assets, net
Total tangible assets
Intangible assets
Goodwill
Lease assets
Right of trademark
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Investments in other securities of subsidiaries
and affiliates
Long-term loans receivable from directors andemployees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

－

12 －

(Unit: Thousand yen)

Summary of balance sheet atthe end of the previous
consolidated fiscal year
(September 30, 2016)
Liabilities
Current liabilities
Accounts payable-trade
Lease payable
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Unearned revenue
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Noncurrent liabilities
Long-term borrowings
Lease payable
Long-term lease and guarantee deposited
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

－

13 －

End of the current
consolidated fiscal year
(September 30, 2017)

2,726,492
64,8462,784,175
901,767
78,482447,442
27,634,302
62
478,808
125,000
89,36935,330,748

3,521,081
74,91812,558,354
1,693,502
711,427
491,722
37,406,767
11,886410,197
57,900882,799
57,820,557

30,150115,984
7,397

2,999,500
158,075－

170,000

210,495

263,343586,876
35,917,624

250,780
3,618,851
61,439,408

4,712,900
4,964,712
8,893,549△265,236
18,305,926

4,712,900
4,933,388
10,838,783△256,269
20,228,802△48,004

185,078△97,162

179,265△145,167

364,344

1,066
1,107,292
19,269,118
55,186,742

923
1,092,121
21,686,192
83,125,601

(2) Consolidated statement of income and consolidated statement of comprehensive income(Unit: Thousand yen)

Revenue
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest received
Dividends received
Gain on investment in partnership
Gain on reversal of dividends payable
Rent received
Commissions received
Foreign exchange gain
Other
Total non-operating profit
Non-operating loss
Interest paid
Equity method investment loss
Loss on investment in partnership
Rent paid
Foreign exchange loss
Other
Total non-operating loss
Ordinary profit
Extraordinary profit
Income from securities soldInsurance reimbursement
Gain on liquidation of subsidiary
Gain on step acquisitions
Total extraordinary profit
Extraordinary loss
Loss on change in equity
Loss on retirement of noncurrent assets
Information security countermeasure expenses
Loss on disaster
Total extraordinary loss
Profit before income taxes
Corporate, inhabitant and enterprise taxes
Income taxes-deferred
Total income taxes
Profit before minority interests
Profit attributable to non-controlling interests
Profit attributable to owners of the parent－

Previous consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)
12,113,864
2,769,578
9,344,285
5,524,779
3,819,506

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)
21,794,783
6,687,176
15,107,607
10,092,156
5,015,450

5,088
6,719
12,425933
18,363
21,842－
9,683
75,056

19,492
9,977
－
1,159
1,246
20,221
47,483
10,973
110,555

4,986
15,375－18,03572,0103,274
113,6823,780,880

29,361
352,599
974
1,142
－
1,972
386,051
4,739,954

194,057－－
395,827
589,884936
160,000
27,225－
188,161

21,906
9,407
－
1,807
33,121
4,337,643
1,492,877△66,160
1,426,717
2,910,926－
2,910,926

187,345170
270,046－457,561
4,470,554
2,472,115△984,104
1,488,011
2,982,543
34,312
2,948,230

14 －(Consolidated statement of comprehensive income)(Unit: Thousand yen)

Profit before minority interests
Other comprehensive income
Other valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Amount corresponding to the equity holdings ofthe equity-method affiliates
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests－

Previous consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)
2,910,926

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)
2,982,543△182,965

225,503△78,584

92,460－190,147△261,549
2,649,376

508,1113,490,654

2,676,425

3,457,742△27,049

32,91215 －(3) Consolidated statement of changes in equity
Previous consolidated fiscal year (From October 1, 2015 to September 30, 2016)(Unit: Thousand yen)
Shareholders’ equity
Capital stock
Balance at Beginning ofcurrent period
Changes of items
during period
Issuance of newsharesCapital surplus

4,711,021

4,970,942

1,879

1,879

Retained earnings

Total shareholders’equity△265,236

6,651,114

16,067,842

3,758

Dividends of surplus
Profit attributable toowners of parent
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Treasury stock△668,491△668,491

2,910,926

2,910,926△8,109△8,1091,879△6,2302,242,434－

2,238,084

4,712,900

4,964,712

8,893,549△265,236

18,305,926

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-foradjustment
comprehensive
sales securities
incomeBalance at Beginningof current period
Changes of items
during period
Issuance of newshares134,960△18,578

116,382

Subscription
Minority interests Total net assets
rights to shares

2,126

－

3,758
△668,491

Dividends of surplus
Profit attributable toowners of parent
Net changes of
items other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

16,186,351

2,910,926△182,965△78,584△261,549△1,0601,107,292

836,573△182,965△78,584△261,549△1,0601,107,292

3,082,766△48,004△97,162△145,167

1,066

1,107,292

19,269,118

－

16 －

Current consolidated fiscal year (From October 1, 2016 to September 30, 2017)(Unit: Thousand yen)
Shareholders’ equity
Capital stock
Balance at Beginningof current period
Changes of items
during period

Capital surplus

4,712,900

Retained earnings

4,964,712

Total shareholders’equity△265,236

8,893,549

Dividends of surplus
Profit attributable toowners of parent
Disposal of treasurystock
Net changes of
items other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Treasury stock

18,305,926△1,002,996△1,002,996

2,948,230

2,948,230△1,396

8,966△29,9287,570△29,928－△31,324

1,945,234

8,966

1,922,876

4,712,900

4,933,388

10,838,783△256,269

20,228,802

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-foradjustment
comprehensive
sales securities
incomeBalance at Beginningof current period
Changes of items
during period△48,004△97,162△145,167

Subscription
Minority interests Total net assets
rights to shares

1,066

1,107,292△1,002,996

Dividends of surplus
Profit attributable toowners of parent
Disposal of treasurystock
Net changes of
items other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

19,269,118

2,948,230
7,570
233,083

276,427

509,511△142△15,170

464,269

233,083

276,427

509,511△142△15,170

2,417,074

185,078

179,265

364,344923

1,092,121

21,686,192

－

17 －

(4)

Consolidated statement of cash flows(Unit: Thousand yen)Previous consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)

4,337,643
369,1972,600
365,975△11,807
4,986
68,932
15,375△12,425△194,057－－
21,906
9,407
－
1,807
△395,827△801,433△4,997,492△2,126

4,470,554
746,653
157,104
1,996,147△29,469
29,361△26,076
352,599974△936△160,000△27,225
187,345170
270,046－－△2,106,873
864,612△55,029△4,077,361△10,417,266△566,500△12,775,948

420,883
696,391
5,463,265△25,253
694,088
5,839△4,986△350,000
370,000－△1,463,600△748,659

644,251
9,796,639
9,772,464
60,5763,750,676
20,521△28,849△20,000－△227,555△1,744,838
1,749,955

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase/decrease in provision () =decrease
Interest and dividends received
Interest paid
Foreign exchange gain and loss () =gain
Equity method investment gains and losses () =gain
Gain/loss on investment in partnership () =gain
Gain/loss on investment securities sold () =gain
Insurance reimbursement
Gain on liquidation of subsidiary () =gain
Gain/loss on change in equity () =gain
Loss on retirement of noncurrent assets
Information security countermeasure cost
Loss on disaster
Loss/gain on step acquisitions
Increase/decrease in accounts receivable () =Increase
Increase/decrease in lease receivables () =Increase
Increase/decrease in inventories () =Increase
Increase/decrease in advance payments-trade ()=Increase
Increase/decrease in accounts receivable-other ()=Increase
Increase/decrease in purchase debts () =decrease
Increase/decrease in accounts payable-other () =decrease
Increase/decrease in deposits received () =decrease
Other
SubtotalInterest and dividends income received
Interest expenses paid
Payment for deposit of guaranteed deposit money
Proceeds from returned guaranteed deposits
Payment on information security countermeasure
Income taxes paid
Net cash provided by (used in) operating activities

－

18 －

(Unit: Thousand yen)Previous consolidated
fiscal year
(From October 1, 2015
to September 30, 2016)

Current consolidated
fiscal year
(From October 1, 2016
to September 30, 2017)△29,109△559,159△1,519,870△99,787△1,065,087△221,236

202,318

30,947△1,727,696－－
30,328△1,212△466,122△125,000
27,22523,640△69,354△770,095－

1,056,596－△97,238△3,415,138△19,847△1,984,622

－
－
2,749
△599,399

4,000,000△264,739
250△1,001,247△8,160△26,960△49,835△654,646△107,624△71,735
2,635,568△13,263△4,926,069

2,387,637

30,113,605

25,187,536

25,187,536

27,575,173

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 and redemptions of investment
securities
Purchase of stocks of subsidiaries and affiliates
Purchase of other stocks of subsidiaries and affiliates
Gain from liquidation of subsidiary
Distributions from an investment partnership
Payment on leasehold deposits
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of common stock
Dividends paid
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
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

－

19 －

(5) Notes regarding the consolidated financial statement(Notes regarding the going concern assumption)
N/A(Additional information)(Application of Guidelines for applying recoverability of deferred tax)
The group has started to apply "Guidelines for Applying Recoverability of Deferred Tax Assets" (Business Accounting
Principles Guideline No. 26 issued on March 28, 2016) from the accounting period under review.
(Recognition basis for important provisions)
Provision for information security countermeasure
Upon leakage of information from unauthorized accesses, we have recognized estimated amounts in order to provide
for expenditures required on sending letters of apology to our customers, handling of inquiries, and investigations into
unauthorized accesses as well as information leakage.
(Notes for the consolidated quarterly profit and loss statement)
Information security countermeasure cost
We found there were unauthorized external access to the payment site of consignment merchants, Tokyo Metropolitan
Government credit card payment site for metropolitan tax and credit card payment site for group life insurance rider ofJapan Housing Finance Agency which led to information leakage.
From this, we recognized information security countermeasure cost of 270,046 thousand yen (216,224 thousand yen on
expenditures for information security countermeasure and 53,821 thousand yen on provision for information security
countermeasure) as an extraordinary expense, as payments required for sending letters of apology to our customers,
handling of inquiries and investigations into unauthorized accesses as well as information leakage under the cumulative
third quarter of the current fiscal year. Although there is no additional extraordinary expense recognition for the fourth
quarter, 12,319 thousand yen out of 53,821 thousand yen (provision for information security countermeasure) has turned
into actual debt in this fiscal year. Therefore, we have reported 270,046 thousand yen of information security
countermeasure cost (information security countermeasure cost of 228,544 thousand yen, and provision for information
security countermeasure of 41,502 thousand yen) as extraordinary expense for the fiscal year under review.
Also, for this incident, we received insurance reimbursement of 160,000 thousand yen.
With regards to those costs, while there are possibilities that the amount may vary going forward due to discovery of new
facts or occurrence of additional measures, a reasonable estimation as of now has been carried out.
In addition, we recognize occurrence of expenditures relating to reissuance of credit cards and fraudulent uses of credit
cards when we receive bills from operating bodies of the above two websites, which they do when various credit card
issuers bill the said expenditures to those operating bodies. Therefore while the likelihood of occurrences of those
expenditures is considerably high, we cannot directly ascertain the status of such occurrences. We had not been billed bycredit card companies as of the end of the third quarter, but we were during the fourth quarter by some credit cardcompanies for the said expenditures. However, for the fiscal year under review, we have recorded insurance reimbursement
and information security countermeasure expenses for the amounts same as the cumulative third quarter as the effect of
the said expenditures on the two accounting items are insignificant.

－

20 －

(Segment information and others)【Segment information】
1.

Overview of reporting segments(1) Reporting segment determination
Financial data for each component of the group’s reporting segments is available, and the group’s reporting segments
are regularly reviewed by the board of directors to decide on allocation of corporate resources as well as to assess
performance.
The group has three reporting segments: payment processing business, money service business and payment
enhancement business. Businesses included in each reporting segment are as follows.
(2) Types of products or services attributable to segments(Payment processing business)
Payment processing service that provides efficiency to merchants in online or recurring payment space as well as
system developments it involves(Money service business)
Various money service businesses (MSB) including “GMO Payment after delivery” which is an after-the-fact type of
payment service involving credit risk, “early payment service”, transaction lending, and “GMO Remittance service”(Payment enhancement business)
Macro Kiosk Berhad’s comprehensive service of mobile payment, authentication and notification, “GMO-PG Online
advertising service”, SSL server certificate, shipping service, etc.

2.

Changes in reporting segments
With the start of consolidating Macro Kiosk Berhad, we have reviewed segmentation of the group’s businesses forbetter understanding of our business results. Therefore, from the fiscal period under review, multiple businesssegments that used to be included in “Other” and Macro Kiosk Berhad’s business have been combined as “payment
enhancement business”, which is now included in our new reporting segments.
Segment information for the previous fiscal year are in accordance with our new segmentation.

3.

Accounting method for revenue, profit or loss, assets, liabilities and other items for each reporting segment
Accounting methodology used for the reporting segments is generally the same as that used for creation of
consolidated financial statements.
Operating profit figures are shown as reporting segments profits.
Assets or liabilities are not allocated in reporting segment.

4.

Data on revenue, profit or loss by reporting segment
Previous consolidated fiscal year (From October 1, 2015 to September 30, 2016)

Reporting segments
Payment
processing
business

Money
servicebusiness

Payment
enhanceme
nt business

Total(Unit: thousand yen)Amounts on
consolidated
Adjustment
financial(Note) 1
statements(Note) 2

Revenue
Revenue to externalclients
Internal revenue acrosssegments as well astransfers
Total
Segment profit

8,632,192

2,242,795－－

8,632,192

2,242,795

5,066,667

216,883－－

12,113,864

212

△212

－

1,239,088 12,114,076△212

12,113,864△1,623,529

3,819,506

1,238,876 12,113,864
212

21 －

159,485

5,443,036

(Note)1. Segment profit adjustment is the expenses of △1,669,054 thousand yen for the entire Company not allocated toreporting segments and cancellation of 45,524 thousand yen for transactions among segments. The Companywide expenses are primarily the administrative expenses not attributable to reporting segments.
2. Segment profit figures are after adjustment with operating profit stated on consolidated income statement.
Current consolidated fiscal year (From October 1, 2016 to September 30, 2017)(Unit: thousand yen)Amounts on
Adjustme
consolidated
nt
financial(Note) 1
statements(Note) 2

Reporting segments
Payment
processing
business

Money
servicebusiness

Payment
enhanceme
nt business

Total

Revenue
Revenue to external clients

11,914,433

5,801,797

4,078,552

21,794,783－

21,794,783

－

－

－

－

－

－

11,914,433

5,801,797

4,078,552

21,794,783－

21,794,783

6,579,818

226,080

508,382

7,314,281△2,298,830

5,015,450

Internal revenue acrosssegments as well astransfers
Total
Segment profit(Note)1. Segment profit adjustment is the expenses of △2,398,199 thousand yen for the entire Company not allocated toreporting segments and cancellation of 99,369 thousand yen for transactions among segments. The Companywide expenses are primarily the administrative expenses not attributable to reporting segments.
2. Segment profit figures are after adjustment with operating profit stated on consolidated income statement.

【Relevant information】
Ⅰ．Previous consolidated fiscal year (From October 1, 2015 to September 30, 2016)
1.

Information by product or service
Description is omitted since similar information is disclosed under segment information.

2.

Information by region(1) Revenue
Description is omitted since over 90 % of revenue on consolidated income statement is from Japanese external clients.
(2) Tangible assets(Unit: thousand yen)
Japan

Asia

268,4133.

Total
83,867352,280

Information by major client
Description is omitted since no client accounts for 10% or above of the group’s consolidated revenue.

Ⅱ．Current consolidated fiscal year (From October 1, 2016 to September 30, 2017)
1.

Information by product or service
Description is omitted since similar information is disclosed under segment information.

2.

Information by region(1) Revenue(Unit: thousand yen
Japan

Asia

Total
－

22 －

19,101,081

2,693,702

21,794,783(Note) Revenue’s categorization by region/country is based on the location of customers.
(2) Tangible assets(Unit: thousand yen)
Japan

Asia

322,9813.

Total
76,606

399,588

Information by major client
Description is omitted since no client accounts for 10% or above of the group’s consolidated revenue.
【Impairment loss of noncurrent assets by reporting segment】
Previous fiscal year (from October 1, 2015 to September 30, 2016) and the Current fiscal year (from October 1, 2016
to September 30, 2017)
N/A【Goodwill amortization amount and unamortized balance by reporting segment】

Ⅰ．Previous consolidated fiscal year (From October 1, 2015 to September 30, 2016)(Unit: thousand yen)
Reporting segment

Amortized in FY
2016
Balance at theend of the term

Payment
enhancementbusiness

Whole
company orcancelled

Payment
processing
business

Money
servicebusiness

2,600

－

－

2,600

－

2,600

990,530－

696,152

1,686,682－

1,686,682

Total

Total

Ⅱ．Current consolidated fiscal year (From October 1, 2016 to September 30, 2017)(Unit: thousand yen)
Reporting segment

Amortized in FY
2017
Balance at theend of the term

Payment
enhancementbusiness

Whole
company orcancelled

Payment
processing
business

Money
servicebusiness

99,006－58,098157,104－

157,104

887,160－

732,547

1,619,708－

1,619,708

Total

Total

【Gain on negative goodwill by reporting segment】
Previous fiscal year (from October 1, 2015 to September 30, 2016) and the Current fiscal year (from October 1, 2016
to September 30, 2017)
N/A

－

23 －

(Per share data)
Previous consolidated fiscal year
(From October 1, 2015
to September 30, 2016)

Current consolidated fiscal year
(From October 1, 2016
to September 30, 2017)

Net assets per share

488.88Yen Net assets per share554.35yen

Net profit per share

78.36Yen Net profit per share

79.36yen

Diluted net profit per share

78.36yen Diluted net profit per share－(Note) 1. Diluted net profit per share is omitted since there are no residual shares with dilution effect for the fiscal year
under review.
2. To disclose accurate net profit per share as well as diluted net profit per share, shares owned by the Board
Incentive Plan Trust is not included in the number of treasury shares in computing the “number of common shares
during the period” since such shares have the right to a claim of dividend.
3. Net profit per share and diluted net profit per share are computed based on the following data.
Previous consolidated fiscal Current consolidated fiscal
year
year
(From October 1, 2015
(From October 1, 2016
to September 30, 2016)
to September 30, 2017)
Net profit per share
Profit attributable to owners of parent (thousand yen)

2,910,926

2,948,230－－

2,910,926

2,948,230

37,146,617.49

37,148,000－－

Increase in the number of common shares

1,302

－

(Subscription rights to shares included in the above)(1,302)(－)

Amount not attributable to common shareholders(thousand yen)
Profit attributable to owners of parent of commonshares (thousand yen)
Average number of shares during the term
Diluted net profit per share
Adjustment to net profit attributable to owners of theparent (thousand yen)

162 Subscription rights to
187 Subscription rights to
GMO Epsilon, Inc.
shares of GMO Epsilon, Inc.
Residual shares excluded from the calculation of diluted
5,205 Subscription rights to
230 Subscription rights to
net profit per share due to not having dilution effect
GMO Financial Gate, Inc.
shares of GMO Financial
100,000 Subscription rights
Gate, Inc.
to Macro Kiosk Berhad
4. Net assets per share is computed based on the following data.
Previous consolidated fiscal Current consolidated fiscal
year
year
(September 30, 2016)(September 30, 2017)
Total net assets (thousand yen)

19,269,118

21,686,192

Amount deducted from total net assets (thousand yen)

1,108,359

1,093,045(Subscription rights to shares included in the above)(1,066)(923)(1,107,292)(1,092,121)

Year-end net assets of common stock (thousand yen)

18,160,759

20,593,147

Year-end number of common shares used in thecalculation of net assets per share

37,148,000

37,148,000(Minority interests included in the above)(Significant subsequent events)
N/A

－

24 －

5. Others
Changes of directors①

Change of representative director
N/A②

Other changes of directors (planned to be effective December 17, 2017)
・A new director candidate
Director Takehito Kaneko
・An incumbent director to retire
Director Yasuhiko Kimura－

25 －