March 25, 2020

Company Name:

GMO Internet, Inc.
(TSE First Section, Code: 9449)

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, Founder, Chairman and Group CEO

Contact:

Masashi Yasuda, Executive Vice President and CFO, Head ofGroup Management Division

Telephone:+81 3 5456 2555

URL:

https://www.gmo.jp/en

Announcement of Approval of Listing of GMO Financial Gate, Inc. Shares
GMO Internet, Inc. (“GMO Internet”) announces that the listing of common stock of GMO Financial Gate, Inc.
(“GMO-FG”), a consolidated subsidiary (second-tier subsidiary) of GMO Internet, on the Mothers (TokyoStock Exchange) was approved by Tokyo Stock Exchange, Inc. today as described below.

1. Listing of GMO Financial Gate, Inc.
(1) The positioning of GMO-FG in the GMO Internet Group
Starting with the launch of the provider service in 1995, GMO Internet Group has launched the Internet
business under the corporate slogan “Internet for Everyone.” As of today, GMO Internet Group is growing intoa business group that comprehensively develops Internet Infrastructure, Online Advertising & Media, InternetFinance, and Cryptocurrency businesses.
GMO Internet consolidated subsidiary GMO Payment Gateway, Inc. (“GMO-PG”), which operates payment
and finance-related services, is the company at the core of the Payment business of the InternetInfrastructure segment. GMO-FG, a consolidated subsidiary and second-tier subsidiary of GMO-PG and
GMO Internet, respectively, offers payment processing services for offline payment, such as credit card anddebit card.

(2) Purpose of the listing
The business opportunities in the offline market in which GMO-FG operates is expanding significantly, thanks
to the government’s move to tackle the issues of improving the security of cashless payments and to increase
cashless penetration.
The listing of GMO-FG would not only raise their social recognition and credibility but also enhance theservice and system development capability through the capital procured, thereby enabling GMO-FG’s
1medium to long term sustainable business growth and its ability to fulfill vital roles and responsibilities as partof the offline payment infrastructure.

(3) The policy of ownership of GMO-FG shares
GMO-PG owns the shares in GMO-FG as described below.
According to GMO-PG, “The business opportunities for both GMO-PG and GMO-FG are expanding as theonline and offline payment markets dynamically evolve and become increasingly integrated, driven by therising penetration of cashless payments and digitalization.
As each corporate entity aims to grow their businesses in their respective addressable markets, GMO-PG will
also endeavor to maximize group-wide synergies that not only contributes to the overall group’s growth but
also to accelerate GMO-FG’s growth itself.
For this purpose, GMO-PG will maintain majority ownership of the common shares of GMO-FG after its listing,as GMO-PG believes that pursuing group-wide synergies to promote their business will be conducive toraising overall corporate value.
While GMO-FG is intended to remain as a consolidated subsidiary, their independent management will behonored and the support provided for the management to be self-reliant. Additionally, through the listing,
GMO-PG expects to enhance the corporate value of GMO-FG through more direct engagements with various
stakeholders.”
GMO Internet supports GMO-PG’s holding in GMO-FG.

2. Consolidated subsidiary (second-tier subsidiary)(1)Company NameGMO Financial Gate, Inc.

(2)

Representative

Kentaro Sugiyama, President & CEO(3)

Address

1-14-6, Dogenzaka, Shibuya-ku, Tokyo(4)

Establishment

September 1999

(5)

Capital¥1,173.3 million (as of September 30, 2019)(6)

Business Description

Payment processing services for offline transactions including credit cards, debitcards, etc.

3. Summary of offering and new share issue
(1)
(2)
(3)

Public offering of new shares
Underwritten offering
Offering via Overallotment option

240,000 shares
209,800 shares
67,400 shares2(maximum)4. Numbers and ownership ratio of shares of GMO-FG held by GMO Internet(1)(2)

Before listing
2,332,590 shares(Ownership ratio: 64.8%, Total Shares Outstanding: 3,595,170 shares)
After listing and new shares issued
2,332,590 shares(Ownership ratio: 60.8%, Estimated Total Shares Outstanding: 3,835,170 shares)* GMO Internet owns GMO-FG indirectly via GMO-PG.
* The change in the ownership ratio is due to the dilution caused by issuing new shares for the purpose oflisting.
* Estimated total shares outstanding does not include the shares offered via the overallotment option(maximum of 67,400 shares).

5. Our policy on the listing of subsidiaries on stock markets
As for the listing of subsidiaries on stock markets, the Company believes that the decision-making shall beleft to the group companies as each group company is independently operated. This is also the case for
GMO-FG.
Under the Venture Spirit Declaration, which embodies the spirit in which the Company was founded, webelieve "Companies should make members, shareholders, customers, and all stakeholders happy. Smilingfaces are our barometer." On this assumption, we will maintain the listing of a given subsidiary on a stock
market if we expect that the subsidiary can: enhance the visibility and the public confidence in theorganization and gather advanced partners through the listing on the stock market; improve the group
enterprise value by generating benefits as a result of bringing smiles to their customers through their No. 1services; and properly return value to minority shareholders.
As of now, there are no further plans to list our subsidiaries besides GMO-FG.

6. Future outlook
The impact of this listing on the consolidated business performance is insignificant as GMO-FG will remain aconsolidated subsidiary (second-tier subsidiary) of GMO Internet after the listing of its common stock.

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