February 12, 2019
Company Name:

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

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, CEO and Representative Director

Contact:

Masashi Yasuda, Chief Financial Officer

Telephone:+81 3 5456 2555

URL:

http://www.gmo.jp/en

Notice of Acquisition of Treasury Shares (up to JPY 3.11 billion)(Acquisition of treasury stock pursuant to Article 459-1 of the Japanese Companies Act andthe company’s Articles of Incorporation)
GMO Internet, Inc. announces that the following has been resolved in regard to items relating to the acquisition oftreasury shares pursuant to Article 459-1 of the Japanese Companies Act and the company’s articles ofincorporation.

1. Reasons for the Acquisition of Treasury Stock
GMO Internet revised its Total Shareholder Returns Policy as of the 12/2016 fiscal year. Under the new policy,
the company aims to return 50% of the profits to shareholders. The company’s target dividend payout ratio
remains at a minimum of 33% of profit attributable to owners of parent, while we will aim to allocate the remainderof the 50% of profit attributable to owners of parent to the acquisition of treasury stock after taking into
consideration business results and financial condition, and taking a flexible approach in accordance with shareprice.
As announced in the press release "Recording Extraordinary Loss Related to The Cryptocurrency Mining
Business Restructuring" published on December 25, 2018, profit attributable to owners of the parent was JPY-20,707 million due to an extraordinary loss of JPY 35,385 million related to the cryptocurrency mining businessrestructuring in Q4 FY2018, so the acquisition of treasury stock would be JPY 0 based on the Company’s Total
Shareholder Returns Policy.
Although the gain on the sale of shares in listed subsidiaries in Q4 FY2018 was not recorded as a profit in theconsolidated profit and loss account, the Company was able to increase the capital reserve, which is the sourceof funds for dividends (c.f. the press release "Notice on Sale of Shares in Consolidated Subsidiary" published on
September 25, 2018, and "Notice on Sale of Shares in Consolidated Subsidiary" on December 17, 2018).
The Company will return the gain on the sale of shares to shareholders. The sum of profit attributable to ownersof parent and the amount of increase in capital reserve in the current term is JPY10,273 million, and 50% of thisamount is allocated to shareholder returns. A total of JPY3,395 million will be paid out in dividends and the1remaining JPY1,750 million will be allocated to the acquisition of treasury stock. GMO Internet has decided toforego the purchase of treasury stock in the fiscal year 2018, and JPY1,360 million* will be allocated to theacquisition of treasury stock in 2019.

2. Details of Acquisition(1)(2)

Type of shares to be acquired
Total number of shares to be acquired

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Total cost of share acquisition
Acquisition period

GMO Internet common shares
Up to 2,500,000 shares% of outstanding shares (excluding treasury shares): 2.17%
Up to JPY 3,110 million
February 13, 2019, through to December 30, 2019

(Reference) Treasury Share Ownership as of December 31, 2018
No. of Outstanding shares (excluding treasury shares)
Treasury shares*：

115,095,076
1,811

Consolidated net profit, as disclosed in the GMO Internet Group Financial Results statements for thefiscal year 2017 was JPY8,030 million, and 50% of this amount was allocated to shareholder returns.
A total of JPY2,656 million was paid out in dividends and the remaining JPY1,360 million was
allocated to the acquisition of treasury stock.

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