Summary of Consolidated Financial Statements for FY2020 (IFRS)
November 11, 2020
Exchange: First Section of Tokyo Stock Exchange
Name of listed company:

GMO Payment Gateway, Inc.

Stock code:

3769

Representative:
Contact:

URL:
Issei Ainoura
Ryu Muramatsu

Scheduled date for the holding of theordinary general shareholders’ meetinghttps://www.gmo-pg.com/en/corp/

President & Chief Executive Officer
Director, Executive Vice President

December 20, 2020

Tel:

Scheduled date of commencementfor dividend payment

Scheduled submission date of securities report

December 21, 2020

Supplemental materials prepared for financial
results:Yes

Information meeting arranged related tofinancial results:Yes (for institutional investors and analysts)+81-3-3464-0182
December 21, 2020

(Amounts rounded down to the nearest one million yen)

1.

Consolidated Financial Statements for the FY2020 (From October 1, 2019 to September 30, 2020)(1) Consolidated Financial Statements
Revenue

FY 2020
FY 2019

Mil. Yen
33,04626,922(Percentages represent year-on-year change)

Operating profit

Profit before
income taxes

Mil. Yen %10,388 8.6
9,562-

Mil. Yen %10,989 18.2
9,297
-

%
22.7
-

Profit attributableTotal
to owners ofcomprehensive
parentincomeMil. Yen % Mil. Yen% Mil. Yen%
7,693 52.3
7,624 44.7 8,258
86.6
5,052 19.0
5,267 23.8 4,426 △27.3

Profit after tax

Return on equity
Return on Assets
using Profit
using profit before
attributable toincome taxes
owners of parent
Yen%%
101.04
26.2
6.6
70.09
20.5
7.2

Basic earnings per Diluted earnings
share
per share
FY 2020
FY 2019

Yen
103.62
71.61

Reference: Equity in earnings of affiliates:

FY2020517

Million yen

FY2019Operating profit
margin%31.4
35.5△19 Million yen(Note)
Macro Kiosk Berhad has been deconsolidated from of Fiscal Year Ending September 2020 and has been reclassified as
discontinued operations. As a result, revenue, operating profit and profit before income taxes exclude discontinued operations andpresent the amounts for continuing operations only. The corresponding figures in the previous year of FY2019 have been similarly
restated, and the year-on-year percentage figures for FY2019 not shown for this reason.
The FY2020 operating profit of ¥10,388 mil. is a growth rate of 25.1% when compared to the previous term’s operating profit of ¥8,301
mil. that was announced in the “Summary of Consolidated Financial Statement for Fiscal Year Ending September 2019” on November
12, 2019. For details, please refer to page 27, “⑨Discontinued operations” found in “(6) Notes regarding condensed consolidated
financial statements,” under “4. Condensed consolidated financial statements and major notes”.

(2) Consolidated Financial Position
Total assets

FY 2020
FY 2019

Mil. Yen
192,022
139,990

Total equity
Total equity
Total equity
attributable toattributable toTotal equity
attributable toowners of parent to owners of parent
owners of parent
per share
total assets
Mil. Yen
Mil. Yen%
Yen
33,45331,73416.5
431.2527,53926,49418.9
360.17(2) Consolidated Cash Flows
Cash flow fromoperating activities
Mil. Yen
FY 2020
49,188FY 2019
1,311
2.

Cash flow frominvesting activities
Mil. Yen△4,493858

Cash flow from
Closing balance of cash
financing activities
and cash equivalents
Mil. Yen
Mil. Yen
95,830△785
7,959
52,013

Dividends
Full-year dividend
End of Q1 End of Q2 End of Q3

FY 2019
FY 2020
FY 2021 (forecast)Year-end

Yen

Yen

Yen

Yen

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

36.00
52.00
54.00

―1―

Ratio of
Total
Dividend
dividends to
Dividend Payout ratio
net assets
Amount (consolidated)Total(consolidated)
Million
Yen
%
%
yen
36.00
2,674
50.3
10.3
52.00
3,863
50.2
13.1
54.00
50.1

3.

Consolidated Financial Forecast for the FY2021 (From October 1, 2020 to September 30, 2021)(Percentages represent year-on-year change)

Revenue
Mil. Yen
2Q of FY2021(cumulative)
Full Year
Note:

Operating profit% Mil. Yen

Profitattributable to Basic earnings
Profit after tax
owners ofper share
parent% Mil. Yen% Mil. Yen%
YenProfit before
income taxes% Mil. Yen

19,115

23.4

6,492

38.5

6,240

18.9

3,899

12.9

3,856

13.1

52.41

39,792

20.4

12,98525.0

12,426

13.1

8,042

4.5

7,930

4.0

107.78The revenue, operating profit and profit before income taxes present the continuing operations only and the year-on-year
percentages are computed by restating the corresponding previous term’s figures on a similar basis.

―2―

Notices:(1) Changes of important subsidiaries during the period (change of specific subsidiaries that leads to a change in thescope of consolidation): No
Number of new subsidiaries: - (Name:),

Number of excluded subsidiaries: - (Name:)(2)

Changes in the accounting policy / changes in the accounting estimation[1] Changes in accounting policy required by IFRS.: Yes[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No
Note: For details please refer to page ③Significant accounting policies” found under “(6) Notes regarding theconsolidated financial statement.”(3)

Number of shares issued (common stock)
FY2020: 74,301,000
FY 2019: 74,301,000[1] Number of shares issued at the end of the term(including treasury stock)
FY 2019: 739,281[2] Number of treasury shares at the end of the term FY2020: 714,781[3] Average number of shares during the term
FY2020: 73,579,725
FY2019: 73,562,191(quarterly average)(Note) Number of treasury shares at the end of the term includes the shares attributed to the directors’
remuneration board incentive plan (BIP) trust and J-ESOP: 734,205 shares for FY2019 and 709,705 sharesfor FY2020.

Reference:1.

Summary of Non-consolidated Financial Statements

Consolidated Financial Statements for the FY2020 (From October 1, 2019 to September 30, 2020)(1) Non-consolidated Financial Statements
Revenue
FY 2020
FY 2019(Percentages represent year-on-year % change)

Operating profit

Mil. Yen
18,885
16,348

%
15.5
15.6

Basic earnings per
share

Mil. Yen
6,781
5,867

%
15.6
51.6

Net Profit

Mil. Yen
7,936
6,700

Mil. Yen
5,323
4,416

%
18.5
42.7

%
20.6
11.7

Diluted earnings per
share

Yen
72.36
60.04

FY 2020
FY 2019

Ordinary Profit

Yen
69.27
57.32

(2) Non-consolidated Financial Position
Total assets
Mil. Yen
134,678
97,261

FY 2020
FY 2019
Reference

Note:

Total equity

Owner’s equity

FY2020Equity ratio

Mil. Yen
25,856
22,40925,856

Mil. yen

Total equity per share
%
19.2
23.0

FY2019Yen
351.37304.64
22,409Mil. yen

Non-consolidated financial results are based on J-GAAP standards.

* These financial statements are not subject to the 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) Forecasts” under “1. Qualitative Information on Consolidated Financial Statements for the Fiscal
Year” on page 13 of the attachment.
2. Results Presentation Meeting for Institutional Investors and Analysts to be held on November 12, 2020. Supporting
materials and a video of the presentation will be made available on the company's website after the event.

―3―

○Table of contents of attachments
１．Qualitative Information on Consolidated Financial Statements for the Fiscal Year…………………...................

5（１）Consolidated operating results…………………………………………………………………………………….

5（２）Status of consolidated financial position…………………………………………………………………………

10（３）Status of consolidated cash flows ………………………………………………………………………...……… 11（４）Basic policy on profit distribution and dividends for current and next fiscal year…………………….………

12（５）Forecasts…………………………………………………………………………………………………………….. 13
２．Management Policy………………………………………………………………………………………………………

14（１）Basic policy on corporate management…………………………………………………………………………..

14（２）Targeted management performance indicators……………………………………………………………..…... 14（３）Priority issues to be addressed……………………………………………………………………………………. 15
３．Basic stance on accounting standard selection……...……………………………………………………………….. 15
４．Consolidated Financial Statements and Major Notes ……………………………………………………………….. 16（１）Consolidated balance sheet ………………………………………………………………………………………

16（２）Consolidated statement of income and statement of comprehensive income ………………………………

18（３）Consolidated statement of changes in equity …………………………………………………………………… 20（４）Consolidated statement of cash flows ……………………………………………………………………………

21（５）Notes regarding the going concern assumptions………………………………………………………………..

23（６）Notes regarding the consolidated financial statement…………………………………………………………..

23➀ Reporting Entity…………………………………………………………………………………………………. 23③ Significant Accounting Policies………………………………………………………………………………... 23④ Cash and cash equivalents…………………………………………………………………………………….

24⑤ Operating and other receivables………………………………………………………………………………

24⑥ Deposits to subsidiaries and affiliates………………………………………………………………………...

24⑦ Segment information……………………………………………………………………………………………

24⑧ Per share information…………………………………………………………………………………………... 26⑨ Discontinued operations………………………………………………………………………………………..

―4―

27

1. Qualitative Information on Consolidated Financial Statements for the Fiscal Year
(1) Consolidated operating results
Forward-looking statements in the document are based on the judgement of the Group at the end of the fiscal year
under review.
Macro Kiosk Berhad has been deconsolidated and has been reclassified as discontinued operation from the third
quarter of Fiscal Year Ending September 2020 in the condensed quarterly financial statements. As a result, revenue,
operating profit and profit before income taxes exclude the discontinued operation and present the amounts forcontinuing operations only. The corresponding figures for Fiscal Year Ending September 2019 are also restated andpresented on a similar basis.
① Consolidated operating results
The Group announces its earnings results for the consolidated fiscal year 2020 (October 1, 2019 to September
30, 2020) as follows.
(Unit: Thousand yen)
FY2019(From October 1, 2018
To September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Rate of change (%)

Revenue

26,922,718

33,046,404

22.7

Operating profit

9,562,791

10,388,667

8.6

Profit before income taxes

9,297,105

10,989,321

18.2

5,267,465

7,624,148

44.7

Profit attributable toowners of parent

a. Revenue
The Group’s revenue was ¥33,046 mil., up by 22.7% YoY. Overall impact from the COVID-19 pandemic waslimited, as transactions trended favorably due to nesting demand despite the decline in transactions at somemerchants, such as travel and ticket sales that were adversely affected by COVID-19.
The Payment Processing Business revenue grew, led by steady growth of E-Commerce (EC) market for online
and recurring payments coupled with the expansion of the Group’s services to the offline market. The Money
Service Business (MSB) revenue grew from the favorable trends seen in GMO Payment After Delivery
transactions, a type of deferred payment service. Payment Processing Business revenue was ¥23,037 mil. (up22.5% YoY), Money Service Business (MSB) revenue was ¥9,416 mil. (up 25.9% YoY) and Payment
Enhancement Business revenue was ¥602 mil. (down 4.9% YoY). For details, please refer to page 7 of “②Results by segment” found under “(1) Consolidated operating results” of “1. Qualitative Information on
Consolidated Financial Statements”.
The impact of COVID-19 to forecasts is stated under “(5) Forecasts” of “1. Qualitative Information on
Consolidated Financial Statements.”―5―

Revenue breakdown by business model (segment) is as follows:(Unit: Thousand JPY)
Business model

FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Rate of change (%)

1,392,018

2,380,734

71.0

4,899,278

5,709,969

16.5

7,391,633

8,931,712

20.8

13,239,788

16,023,987

21.0

26,922,718

33,046,404

22.7

Initial(Initial revenue)
Stock(Monthly revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring
service revenue)
Total

b. Operating profit
The Group’s operating profit reached ¥10,388 mil., up by 8.6% YoY, which was higher than the Group’s
consolidated fiscal year forecast. The FY2020 operating profit growth rate is 25.1% when compared to theprevious term’s operating profit of ¥8,301 mil. that was announced in the “Summary of Consolidated Financial
Statement for Fiscal Year Ending September 2019” on November 12, 2019, thus achieving the managementtarget to achieve 25% operating profit growth.
By segment, Payment Processing Business segment profit (operating profit) was ¥11,581 mil., up by 15.4%
YoY; Money Service Business segment profit stood at ¥1,799 mil., down by 8.8% YoY; and, Payment
Enhancement Business segment profit of ¥77 mil., down by 29.8% YoY.
With the spread of COVID-19, business activities have been conducted by teleworking system of remote
workstyle, and there has been no notable decline in productivity and efficiency and therefore no material impact
on operating profit.
c. Profit before income taxes
Pre-tax profit was ¥10,989 mil. up by 18.2% YoY, a higher growth rate than the consolidated operating profit
growth rate of 8.6% YoY. This is due to gains on investment partnerships of ¥301mil. that increased thefinancial income to ¥336 mil. (versus ¥43mil. in the previous term) and equity method investment gains of ¥517
mil. (versus an equity method loss of ¥19mil. in the previous term).
In addition to the reasons stated in a.to c. above, the loss from discontinued operations for this consolidated
year under review was ¥179 mil (versus ¥1,200 mil. in the previous term). Details are presented on page 27,“⑨ Discontinued operations” found in “(6) Notes regarding condensed consolidated financial statements,”
under “4. Condensed consolidated financial statements and major notes”.

―6―

② Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand JPY)
Segment
Payment Processing Business
Revenue
Segment profit (△=loss)
Money Service Business
Revenue
Segment profit (△=loss)
Payment Enhancement
Business
Revenue
Segment profit (△=loss)
Adjustments
Revenue
Segment profit (△=loss)
Total
Revenue
Segment profit (△=loss)

FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

18,811,705
10,031,752

23,037,620
11,581,232

22.5
15.4

7,478,106
1,972,558

9,416,169
1,799,806

25.9
△8.8

632,906
110,392

602,024
77,496

△4.9
△29.8

－
△2,551,911△9,410△3,069,868－－

26,922,718
9,562,791

33,046,404
10,388,667

22.7
8.6

Year on Year (%)

a. Payment Processing Business
The main focus areas of the Payment Processing Business are online payment, recurring billing services, offline
payment processing service and, support services to financial institutions and financial service providers.
In the online payment and recurring payment domain, we focused our efforts to acquire large merchants andexpand the Group’s services to non-EC operators given the backdrop of a steadily expanding EC market.
The spread of COVID-19 caused delays in new projects slated to be monetized during the year under review,
as well as affecting transaction value growth to be 22.6% YoY due to the adverse impact on some merchants inthe travel and ticket sales sector where per-transaction-value is relatively high. On the other hand, transaction
volume growth of 43.2% YoY exceeded the transaction value growth due to the increase in micropaymenttransactions on the back of expanding EC market coupled with the revenue contribution from the increase in
online transactions of household items, digital content and public dues and taxes driven by nesting demand.
The offline market is on a gradual recovery trend after the lifting of the State of Emergency on May 25, 2020,
although consumption at offline stores can be impacted from the increasing spread of COVID-19. Despite this,sales of payment terminals trended favorably by capturing the replacement demand for IC-chip enabled
terminals on the back of the Installment Sales Act amendment, as well as steady order wins for projects related
to the Unattended Market (UM) such as ticket machines and fare adjustment machines, which is one of thetarget markets.
As a result, segment revenue reached ¥23,037 mil., up 22.5% YoY and segment profit (operating profit) was¥11,581 mil., up 15.4% YoY.

―7―

b. Money Service Business
Money Service Business (MSB) consists of Early Payment Service to help merchants improve their cash flowby receiving sales proceeds earlier according to the merchant’s cash cycle needs; Transaction Lending Service
to lend growth capital to merchants based on their payment and other related data; Lending service to overseas
operators; Remittance Service; and GMO Payment After Delivery offered by the consolidated subsidiary GMO
Payment Service, Inc. GMO Payment After Delivery showed a steady trend thanks to nesting demand, althoughsome merchants were adversely affected by COVID-19. Lending service to overseas operators, GMO B2B
Early Payment and GMO B2B AR Guarantee also grew. Remittance service grew on the back of the increased
demand for tickets refunds for cancellations caused by COVID-19, and Early Payment service revenues also
increased YoY during the fiscal year under review.
As a result, segment revenue reached ¥9,416 mil., up 25.9% YoY and segment profit (operating profit) reached¥1,799 mil., a decline of 8.8% YoY due to unfavorable comps against the previous year which benefited from a
one-off decline in expenses related to lower credit risks resulting from various corporate efforts and efforts tocontrol expense levels after this one-off expense reduction.

c. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service to support our merchants’ growth byanalytics and advertisement management service based on sales trends of products, and “Medical Kakumei
byGMO,” a reservation management system to enable operational efficiency offered exclusively to medical
institutions by our consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
While online advertising service revenues exceeded internal plans from the increased online advertisingdemand from expanding EC market driven by COVID-19.
As a result of the above, segment revenue was ¥602 mil., down 4.9% YoY and segment profit (operating profit)
was ¥77 mil., down 29.8% YoY.
With the transfer of all the shares of Macro Kiosk on May 18, 2020, its business has been classified as
discontinued operation in the consolidated financial statements. Therefore, the segment revenue and profit(operating profit) present only the continuing operations, and year-on-year percentages are computed bysimilarly restating the previous term’s figures.
Details are presented on page 27, “⑨ Discontinued operations” found in “(6) Notes regarding condensed
consolidated financial statements,” under “4. Condensed consolidated financial statements and major notes”.

―8―Please see below for the table of the major businesses and companies providing these businesses by segment.
Segment

Major service

Major companies of the service

Payment processing service
Payment
Processing
Business(Online payment and recurring billing)

GMO Payment Gateway, Inc.
GMO Epsilon, Inc. (consolidated subsidiary)

Payment processing service
GMO Financial Gate, Inc. (consolidated subsidiary)(Offline payment)
GMO Payment after delivery

GMO Payment Service, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Money Service

Remittance service

GMO Epsilon, Inc. (consolidated subsidiary)Business

GMO Payment Gateway, Inc.
Transaction lending

GMO Epsilon, Inc. (consolidated subsidiary)
GMO Payment Gateway, Inc.

Early payment service

GMO Epsilon, Inc. (consolidated subsidiary)

Payment
Enhancement

Online advertising

GMO Payment Gateway, Inc.

Business―9―(2) Status of consolidated financial position①Assets, liabilities and net assets
a. Assets
Total assets at the end of the consolidated fiscal year under review increased by ¥52,032 mil. from the end of theprevious fiscal year end to reach ¥192,022 mil. This is mainly due to an increase in cash and cash equivalents of¥43,817 mil., an increase in accrued revenues of ¥2,018 mil., an increase of tangible fixed assets of ¥3,197 mil.
and an increase in other financial assets ¥2,906 mil.
The Group has ¥950 mil. deposits to subsidiaries and affiliated companies included in the balance of cash andcash equivalents at the end of the consolidated fiscal year under review, as stated in “④ Cash and cash
equivalents” of (6) Notes regarding condensed consolidated financial statements. Together with the ¥5,000 mil. of
deposits to subsidiaries and affiliated companies stated in the condensed consolidated balance sheet, the totalbalance of the Group’s deposits to subsidiaries and affiliated companies stands at ¥5,950 mil. These deposits are
GMO Internet’s Group-wide cash on hand that is deposited under the cash management system (CMS)
implemented and managed by GMO Internet. This allows the Group to withdraw funds when necessary without
the need to wait until the preset CMS repayment date, by registering a request by taking into account the numberof days required for application.
b. Liabilities
Balance of liabilities at the end of the consolidated fiscal year under review stood at ¥158,569 mil., an increase of¥46,117 mil. from the end of the previous consolidated fiscal year, mainly due to an increase accrued expenses of¥3,267 mil., an increase in deposits received due to the increase in transaction value during this fiscal year underreview of ¥36,224 mil., an increase in borrowings of ¥1,732 mil. and an increase in other financial liabilities of¥3,081 mil.
c. Equity
Equity balance at the end of the consolidated fiscal year under review was ¥33,453 mil., an increase of ¥5,914
mil. from the end of the previous consolidated fiscal year, mainly due to net profits of ¥7,693 mil. and othercomprehensive income of ¥565 mil., which was partially offset by dividend paid out of retained earnings of ¥2,648
mil.

―10―

(3) Status of consolidated cash flows
Cash and cash equivalents (“funds”) at the end of the consolidated fiscal year under review increased by ¥43,817 mil.
versus the balance at the start of the term, to reach ¥95,830 mil. The state of cash flows over the fiscal year underreview is discussed below.
a. Cash flow from operating activities
Net funds provided by operating activities in the consolidated fiscal year under review amounted to ¥49,188 mil.,compared to ¥1,311 mil in the same period of previous year. This resulted from cash outflows of (i) increases ininventory of ¥1,233 mil., (ii) increase in accrued revenues ¥2,019 mil., (iii) income tax payment of ¥3,041 mil. thatwas netted against the cash inflows of (i) profit before tax of ¥10,989 mil., (ii) increase in accrued expenses of¥3,429 mil. and (iii) increase in deposits received ¥ 36,225 mil.
b. Cash flow from investing activities
Net funds used by investing activities during the consolidated fiscal year under review totaled ¥4,493 mil., which
compares to a net funds provided of ¥858 mil. in the same period of the previous year. This is due to cash outflows
from (i) acquisition of intangible assets of ¥1,508 mil., (ii) payment for acquisition of other financial assets of ¥1,153
mil. and (iv) payment due to sale of subsidiary shares resulting in a change in the scope of consolidation of ¥968
mil.
c. Cash flow from financing activities
Net funds used by financing activities during the consolidated fiscal year under review was a ¥785 mil., which
compares to net funds provided of ¥7,959 mil. in the same period of the previous year. This is due to cash outflows
from repayments of long-term borrowings of ¥1,267 mil., dividend payouts of ¥2,648 mil., which was partially offset
by net inflows from the net increase in short term borrowings of ¥3,000 mil.

―11―

(4) Basic Policy on Profit Distribution and Dividends for Current and Next Fiscal Year
GMO Payment Gateway, Inc. places management priority on sustainably securing the necessary retained earnings
for the purpose of future business expansion and for strengthening the organization, as well as to sustain a stablelevel of shareholder returns.
The year-end dividend is was initially forecast at ¥42 per share as announced in the “Summary of Consolidated
Financial Statement for Fiscal Year Ending September 2019” on November 12, 2019. However, given the outlook forthis current fiscal year’s earnings likely to exceed the forecast and in light of profit distributions to shareholders, thedividend is planned to be revised to ¥52 per share, an increase of ¥10 per share compared to the initial dividend
forecast. (see Note)
The next fiscal year’s dividend is planned at ¥54 per share, continuing the trend of dividend increase since thedividend payments commenced and based on the favorable business plans and with a view to continuously raise themedium-term enterprise value by enhancing shareholder’s returns.
Retained earnings will continue to be used for strengthening the corporate organization as well as aggressive
deployment for business expansion.
The revision to dividends is summarized in the table below.
Full-year dividend
End of Q1
Previous plan
（November 12,
2019）

End of Q2

End of Q3

Year End

Total

Yen
0.00

Yen
0.00

Yen
0.00

Yen
42.00

Yen
42.00

Revised plan

-

-

-

52.00

52.00

Current Year

0.00

0.00

0.00

0.00

0.00

0.00

36.00

36.00

Previous Year
（Fiscal Year ending
September 2019）

Note :

This will be discussed at the Board of Director’s meeting to be held November 24, 2020.

―12―

(5) Forecasts
The Group’s core business is positioned within the E-Commerce market in Japan, and Japan’s B2C E-Commerce formerchandizing continues to grow very rapidly, helped by favorable externalities such as the increased penetration ofsmartphones and logistic/distribution industry reforms. In addition, the realm of EC itself is expanding from thedigitalization of B2B and C2C transactions and the steady progress in online adoption of payments for nonmerchandise services, public dues and taxes, medical expenses and other sectors closely tied to daily life.
Furthermore, the scope of business is also set to expand from the emerging business opportunities at ourconsolidated subsidiary GMO Financial Gate, Inc. which addresses the offline market, as the offline market benefits
from the rising penetration of cashless payments of credit cards and other payment methods.
For the fiscal year ending September 2021, the possibility of being adversely affected from depressed consumption
due to the resurgence of COVID-19 cannot be ruled out. However, its impact is likely to be minimal to the Group’s
revenues, given the business exposure to a wide variety of merchants and industries and the shift towards online
payment and cashless payment that it entails. We forecast revenue growth in all segments through our efforts toacquire large and high-growth merchants and financial institutions, make large project wins, expand DX platform
services platform and early monetization of new services such as stera, the next generation payment platform.
The earnings forecast for consolidated fiscal year ending September 2021 are as follows: revenue of ¥39,792 mil.
(up 20.4% YoY), operating profit of ¥12,985 mil. (up 25.0% YoY), profit before tax of ¥12,426 mil. (up 13.1% YoY),
profit of ¥8,042 mil. (up 4.5% YoY), and profit attributable to owners of parent company of ¥7,930 mil. (up 4.0% YoY).

―13―

2. Management Policy(1)

Basic policy of the corporate management

The management principle of the group is to “pursue both spiritual and material prosperity for our partners bycontributing to society.”■ We contribute to the advancement and progress of our society with a strong intention to create and develop markets,and to uphold integrity, fairness and transparency in expanding business.
■ 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 of professionalism.
They always pursue richness of spirit when they exchange values with our customers.
Based on this 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 ourbusinesses according to the following management policy:
・Be adaptive to the changing times
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 our raison d’etre
Uniqueness: We strive to maintain the value of our existence through customer-oriented services.
Profitability: We surpass competitors by pursuing revenue growth and establish an unwavering position in theindustry.
・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 judgements quickly and impartially considering important economic rationality.
・Be responsible to shareholders
We strive to maximize the shareholder value by considering capital efficiency.
By actively conducting IR activities we always provide our shareholders with appropriate information.

(2) Targeted Management Performance Indicators
The Group emphasizes an operating profit growth rate of 25% as a management performance indicator.
The Group continues to invest in order to achieve the 25% operating profit growth rate in the medium term. The
FY2020 operating profit of ¥10,388 mil. is a growth rate of 25.1% when compared to the previous term’s operating profitof ¥8,301 mil. that was announced in the “Summary of Consolidated Financial Statement for Fiscal Year Ending
September 2019” on November 12, 2019As a Group involved in providing the online payment infrastructure to the E-Commerce market, we will continue tocontribute to expand the EC market in the regions and countries where we operate and EC penetration by enhancing
the security and convenience of the EC environment. In addition, the Group will continue its efforts to scale up thebusiness by launching into new businesses, forging alliances with other partner operators, establishing subsidiaries andthrough overseas expansion.

―14―

(3) Priority issues to be addressed① Strengthening 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
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 nine times and have obtained the latest certification in December 2017.
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.
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 andstrive to consecutively boost profits.

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

―15―

4. Condensed Consolidated Financial Statements and Major Notes(1) Condensed consolidated balance sheet(Unit: Thousand Yen)
Notes
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Advances paid
Accrued revenue
Inventories
Deposits to subsidiaries and affiliates
Other financial assets
Other current assets

End of FY2019(September 30, 2019)④⑤

52,013,447
13,663,112
32,496,862
21,566,393
207,280⑥－
165,584
956,398

95,830,807
10,782,296
31,039,748
23,585,142
1,440,999
5,000,000
1,163,608
537,329

121,069,081

169,379,933

517,5094,359,129

3,714,793
4,854,253

3,001,692

3,740,933－
5,000,000
4,803,089
1,124,014
116,082

1,975,100

Total current assets
Noncurrent assets
Tangible assets
Goodwill and other intangible assets
Investments accounted using equity
MethodOperating and other receivables
Deposits to subsidiaries and affiliates
Other financial assets
Deferred tax assets
Other noncurrent assets

End FY2020(September 30, 2020)③⑤⑥

Total noncurrent assets
Total assets―16―－
6,711,766
1,530,494
115,346

18,921,518

22,642,689

139,990,599

192,022,622

(Unit: Thousand Yen)
Notes

End of FY2019(September 30, 2019)

End of FY2020(September 30, 2020)

Liabilities and equity
Liabilities
Current liabilities
Operating and other payables
Accrued expenses
Deposits received
Borrowings
Other financial liabilities
Income taxes payable, etc.
Provisions
Other current liabilities

4,688,856
16,118,112
50,834,374
15,800,400
108,534
1,569,616
396,6312,229,923

4,296,647
19,385,695
87,059,213
18,800,400
400,217
2,491,098
352,8123,383,652

Total current liabilities

91,746,449

136,169,737

Noncurrent liabilities
Corporate bonds
Borrowings
Other financial liabilities
Provision
Deferred tax liabilities
Other noncurrent liabilities

16,745,648
1,398,700
223,363
35,84885,6042,215,686

16,814,650
131,400
3,013,338
260,843
54,1702,124,966

20,704,851

22,399,369

112,451,301

158,569,106

4,712,900
5,847,480
15,884,444

4,712,900
5,675,561
20,725,465△1,181,846
1,231,655△1,149,341
1,769,560

26,494,633

31,734,145③③

Total noncurrent liabilities
Total liabilities
EquityCapital stock
Capital surplus
Retained earnings
Treasury stock
Other items of equity
Total equity attributable to owners ofparentMinority interests③③

Total equity
Total liabilities and equity―17―

1,044,664

1,719,369

27,539,297

33,453,515

139,990,599

192,022,622

(2) Condensed consolidated statement of income and consolidated statement of comprehensive income
Condensed consolidated statement of income

Notes

FY2019(From October 1, 2018
to September 30, 2019)(Unit: Thousand yen)
FY2020(From October 1, 2019
to September 30, 2020)

Continuing Operations
Revenue

26,922,718

33,046,404

Cost of revenue△7,652,228△9,199,819

Gross profit

19,270,490

23,846,584

152,339

159,805△9,764,485△13,424,141△95,552△193,581

Operating profit

9,562,791

10,388,667

Financial income

43,062

336,467

Financial expense△289,494△253,029

Equity method investment gains or loss

△19,255

517,217

Profit before income taxes

9,297,105

10,989,321△3,044,095△3,116,722

6,253,009

7,872,598△1,200,593△179,198

5,052,416

7,693,400

Owners of parent

5,267,465

7,624,148

Non-controlling interests△215,049

69,252

Profit

5,052,416

7,693,400

Continuing operations

84.74

105.94

Discontinuing operations△13.13

△2.32

71.61

103.62

Continuing operations

82.84

103.29

Discontinuing operations△12.74

△2.25

70.09

101.04

Other income
Selling, general and administrative
expenses
Other expense

Income tax expenses
Profit from continuing operations

Discontinued Operations
Profit/Loss from discontinued operations(△=loss)
Profit⑨

Profit attributable toEarnings per share (Yen per share)
Basic earnings per share (yen) (△=loss)

⑧

Total

Diluted earnings per share (yen) (△=loss)

⑧

Total

―18―

Condensed consolidated statement of comprehensive income(Unit: Thousand Yen)
Notes
Profit

FY2019(from October 1, 2018 toSeptember 30, 2019)
5,052,416

FY2020(From October 1, 2019
to September 30, 2020)△522,171

570,848△4,912

248,757△527,083

819,605△11,968△279,897△87,187

25,696△99,156△254,201△626,239

565,404

4,426,176

8,258,805

4,630,496

Other comprehensive income
Items that will not be reclassified to profit
or loss
Fair value of financial assets measured
through other comprehensive income
Share of other comprehensive incomeof equity method affiliates
Total of Items that will not be reclassified
to profit or loss
Items that will be reclassified to profit orloss
Exchange differences on translation offoreign operations
Share of other comprehensive incomeof equity method affiliates
Total of items that will be reclassified to
profit or loss
Other comprehensive income after income
taxes
Comprehensive income

7,693,400

Comprehensive income attributable to
Owners of parent
Non-controlling interests△204,320

8,187,844
70,960Total

4,426,176

8,258,805―19―

(3) Condensed consolidated statement of changes in equity
FY2019 (From October 1, 2018 to September 30, 2019)

Notes
Balance as of October 1,
2018
Cumulative effects ofaccounting changes
Restated Balance
ProfitOther comprehensive
incomeComprehensive income
Purchase of treasury
stock
Dividend
Transfer fromaccumulated othercomprehensive income
to retained earnings
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Total transactions withownersBalance as of September
30, 2019

Capitalstock

CapitalsurplusRetained Treasury
earnings
stock

4,712,900

5,758,448 12,875,446(Unit: Thousand yen)
Total equity
Other
attributable Minority
Total
items ofto owners of interests
assetsequityparent△491,893

1,941,305△195,085－－

5,758,448 12,680,361－－

24,796,206 1,223,811

26,020,018△195,085－△195,085△491,893

1,941,305

24,601,121 1,223,811

25,824,933－－

5,267,465－－

5,267,465 △215,049

5,052,416

－

－

－

－

△636,968△636,968

10,728△626,239－－

5,267,465－△636,968

4,630,496 △204,320

4,426,176－－－△689,952－△689,952－△689,952－－ △2,136,041－－△2,136,041－△2,136,041－－

72,658－△72,658

－

－

－

－

97,243－－△22

97,22025,172

122,393－△8,211－－－△8,211－△8,211－89,032 △2,063,382△689,952△72,681△2,736,984

25,172△2,711,811

5,847,480 15,884,444 △1,181,846

1,231,655

26,494,633 1,044,664

27,539,297

4,712,900

4,712,900

FY2020 (From October 1, 2019 to September 30, 2020)

Notes
Balance as of October 1,
2019
Cumulative effects ofchanges in accountingchanges
Restated Balance③

Capitalstock

Capitalsurplus4,712,900

5,847,480 15,884,444 △1,181,846－
4,712,900

Retained Treasury
earnings
stock(Unit: Thousand yen)
Total equity
Other
attributable Minority
Total
items ofto owners of interests assets
equityparent1,231,655

26,494,633

1,044,664

27,539,297－－△97,243△38,971△136,214

5,847,480 15,787,200 △1,181,846－△97,243

1,231,655

26,397,389

1,005,692

27,403,082

ProfitOther Comprehensive
incomeComprehensive income－－

7,624,148－－

7,624,148

69,252

7,693,400

－

－

－

－

563,696563,696

1,707

565,404－－

7,624,148－

563,696

8,187,844

70,9608,258,805

Sale of treasury stock
Dividends
Transfer fromaccumulated othercomprehensive income
to retained earnings
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Change from sales of
consolidated subsidiary
Other
Total transactions withownersBalance as of September
30, 2020－

33,085－32,504－65,590－65,590－－ △2,648,221－－△2,648,221－－

25,454－△25,454

－

－

－

－

136,503－－△22

136,480

19,480155,960－△32,573－－－△32,573454,713422,139－△308,934－－－△308,934

168,522△140,412－－△63,115－△313△63,429－△63,429△171,919 △2,685,882

32,504△25,791△2,851,088

5,675,561 20,725,465 △1,149,341

1,769,560

31,734,145⑨－
4,712,900―20―－ △2,648,221

642,716 △2,208,372
1,719,369

33,453,515

(4) Condensed consolidated statement of cash flows

Notes
Net cash provided by (used in) operating
activities
Profit before income taxes
Profit before income taxes fromdiscontinued operations (△=loss)
Depreciation & Amortization⑨

Impairment Loss
Gain/Loss from sale of subsidiary(Unit: Thousand yen)
FY2020(From October 1, 2019
to September 30, 2020)

FY2019(From October 1, 2018
to September 30, 2019)⑨

Financial income and expense
Equity method investment gain/loss(△=increase)
Increase/decrease in inventories(△=increase)
Increase/decrease in operating andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
Accrued revenues (△=increase)
In/Decrease in operating payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in provisions(△=decrease)
In/Decrease in other current liabilities
Other
SubtotalInterest and dividends received

9,297,105

10,989,321△1,258,028△158,338

1,113,513

1,520,087

992,503

115,793－

172,466

242,889△65,801

19,255△517,217△142,743△1,233,718△516,681△530,571△10,229,117

1,457,114△5,848,540△2,019,481

131,3021,379,751

278,295

3,429,921

9,605,582

36,225,413

361,036

87,179△169,536

1,272,825

312,985

266,551

4,189,822

52,391,298

48,811

38,529Interest paid

△65,436△169,235

Payment from deposit refunds

3,000,060－△3,120,000△30,000

Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payment from time deposits
Purchase of property, plants andequipment
Purchase of intangible assets△2,741,613△3,041,766

1,311,644

49,188,824

689,374－△156,181△428,158△1,356,617△1,508,408

Purchase of investment securities
Proceeds from sale of investment
securities
Purchase of investments accounted
for using equity method
Proceeds
fromredemptionofinvestments partnerships
Payment into deposits to subsidiaries
and affiliates
Proceeds from withdrawal of deposits
to subsidiaries and affiliates
Purchase of other financial assets
Proceeds from sales of other financial
assetsPayment for sale of subsidiary shares
resulting in change in the scope of△204,284△884,250

40,611－△102,248－

131,699

405,487△5,000,000－

7,000,000－△92,867△1,153,708

9,220

116,863－△968,256

Increase in Deposits

⑨

―21―

Notes

FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

consolidation
OthersNet cash provided by (used in)investing activities
Net cash provided by (used in) financing
activities
In/Decrease in short-term borrowings(△=decrease)
Repayment of long-term borrowings
Payment for stock buyback△100,705△72,876

858,000△4,493,307

11,699,000

3,000,000△800,400△1,267,300△689,952－△2,134,832△2,648,164

Payment from non-controlling interest－

431,668

Other
Net cash provided by (used in)financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase and decrease in cash and cash
equivalents (△=decrease)
Balance of cash and cash equivalents atthe beginning of the period
Cash and cash equivalents at the end of
period△114,795△301,311

7,959,019△785,107△148,341△93,050

9,980,323

43,817,359④

42,033,124

52,013,447④

52,013,447

95,830,807

Dividends paid―22―

(5) Notes regarding the going concern assumptions
N/A(6) Notes regarding condensed consolidated financial statements① Reporting Entity
GMO Payment Gateway, Inc. (“the Company”) is a corporation (kabushiki kaisha) domiciled in Japan and listed on
the Tokyo Stock Exchange. The registered address of its head office is 2-3 Dogenzaka 1-chome, Shibuya-ku, Tokyo,
Japan. The condensed consolidated financial statements are comprised of the Company and its subsidiaries (the“Group”) and equity interest in affiliates. The ultimate parent of the Group is GMO Payment Gateway, Inc. The
Company’s Group is engaged in the businesses of Payment Processing Business, Money Service Business andPayment Enhancement Business. (see ⑦ Segment Information).
③

Significant Accounting Policies
Significant accounting policies adopted for the consolidated financial statements for the fiscal year ended
September 2020 for the Group are the same as those adopted for the previous year’s consolidated financial
statements, excepting the for the policies explained below.
(Discontinued Operations)
A discontinued operation is a component of an entity that either has been disposed or, is classified as held for sale,and meets any one of the criteria stated below.
•

represents a separate major line of business or geographical area of operations,•is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of

operations or,•is a subsidiary acquired exclusively with a view to resale.

The post-tax profit or loss of the discontinued operation and the post-tax gain or loss recognized by the disposal of
disposal groups classified as discontinued operations, are represented as profit or loss from discontinued
operations and presented separately from continuing operations in the consolidated statement of income, anddisclosure of prior periods are re-represented in accordance.
(Changes in accounting policies)
The following standards have been adopted for the Group from the start of the current consolidated fiscal year.
Standard
IFRS 16

Name of Standard

New Standards and Interpretations

LeasesInterprets the accounting treatments of leases

Uncertainty over Income Tax Clarifies the accounting for uncertainties inTreatments
income taxes
There is no material effect on the consolidated financial statement from adoption of IFRS Standards excluding
IFRS 16, and the adoption is made in compliance with the transition regulations.

IFRIC 23

The adoption of the above policies resulted in an increase in “property, plant and equipment” of ¥2,981 mil., andincrease in “other financial liabilities” included under current liabilities of ¥315 mil. and an increase in “otherfinancial liabilities” included under noncurrent liabilities of ¥2,885 mil. in the consolidated statements of financial
position for the current fiscal year under review. Other impact of applying the above polices to profit or loss for thecurrent fiscal year under review was immaterial.

―23―

④

Cash and Cash Equivalents

Breakdown of cash and cash equivalents are as follows.
End of FY2019(September 30, 2019)(Unit: Thousand yen)
End of FY2020(September 30, 2020)

Cash and cash equivalents

49,213,447

94,880,807

Deposits to subsidiaries
and affiliates

2,800,000

950,000

52,013,447

95,830,807

Total⑤ Operating and other receivables
Breakdown of operating and other receivables are as follows.
End of FY2019(September 30, 2019)(Unit: Thousand yen)
End of FY2020(September 30, 2020)

Operating receivables

5,663,939

5,187,311

Operating loans

7,514,754

6,040,284

590,916

1,628,262△106,498△98,461

13,663,112

12,757,396

Other
Allowanceaccounts

fordoubtful

Total⑥ Deposits to subsidiaries and affiliates
Our deposits to subsidiaries and affiliates are the deposits under the CMS of the GMO Internet Group⑦

Segment Information(1) Segment Information
The reporting segments of the Group are based on operation segments for which separate financial information isavailable and which the Board of Directors regularly reviews to determine the allocation of management resourcesand evaluate its performance.
The Group has businesses and subsidiaries according to the product and/or service, and each product/service
carries out the business activities and formulates comprehensive strategies covering Japan and overseas.
Therefore, the Group is comprised of the various products and services grouped according to the explanation
above and multiple businesses are grouped and classified under the three reportable segments of Payment
Processing Business, Money Service Business and Payment Enhancement Business.
The main products and services included in the reportable segments are as shown below:
Reportable

Main products and services

Segment
Payment

Payment processing for online billing, recurring billing and for offline payments.

Processing
Business
Money

Service

GMO Payment After Delivery, Money Services such as Remittance, Transaction Lending

Businessto provide growth capital, Early Payment service to improve merchant’s cash cycle.

Payment

Online advertising service aimed at increasing revenues at merchants.

Enhancement
Business―24―

(2) Segment Information
Accounting principles applied to the reportable segments are the same as that of consolidated financial statements.
Performance of segments is as shown below and income for the reportable segments is reconciled as operating profit
or loss. Intersegment transaction are based on equivalent prices at arm’s length transactions.
As stated in “⑨ Discontinued operations”, the revenues and segment profit of Macro Kiosk Berhad is not included inPayment Enhancement Business as it has been reclassified as discontinued operations due to the transfer of all theshares of Macro Kiosk Berhad held by a subsidiary.
Segment Information for FY2019 (From October 1, 2018 to September 30, 2019)(Unit: Thousand yen)
Payment
Money
Payment
Adjustments
Processing
ServiceEnhancement
Total
Consolidated(Note)
Busines
Business
Business
Revenues
Sales to external
18,811,705
7,478,106
632,906 26,922,718－ 26,922,718
customers
Intersegment revenue
－
－
－
－
－
－
18,811,705

7,478,106

632,906

26,922,718－

26,922,718

10,031,752

1,972,558

110,392

12,114,703△2,551,911

9,562,791

Financial income

－

－

－

－

－

43,062Financial expense
Equity method investment
gains (△=loss)
Profit before income taxes ofcontinuing operations
Other items

－

－

－

－

－

△289,494

－

－

－

－

－

△19,255

－

－

－

－

－

9,297,105

Depreciation & amortization

835,716

46,482

4,928

887,127

71,099958,226

－

－

－

－

－

－

Total
Segment profit (△=loss)

Impairment Loss

(Note) Adjustment of segment profit of △¥2,551 mil. consist of general corporate expenses not allocated to any
reportable segment of △¥2,647 mil. and elimination of intersegment transactions of ¥95 mil. General corporate
expenses consist of selling, general and administrative expenses not allocation to any reportable segment.

Segment Information for FY2020 (From October 1, 2019 to September 30, 2020)(Unit: Thousand yen)
Payment
Processing
Busines

Money
ServiceBusiness

Payment
Enhancement
Business

23,028,517

9,416,169

601,716

33,046,404－

33,046,404

9,102

－

307

9,410

△9,410－23,037,620

9,416,169

602,024

33,055,814△9,41033,046,404

11,581,232

1,799,806

77,496

13,458,535 △3,069,868

10,388,667

Financial income

－

－

－

－

－

336,467

Financial expense
Equity method investment
gains (△=loss)
Profit before income taxes ofcontinuing operations
Other items

－

－

－

－

－

△253,029

－

－

－

－

－

517,217

－

－

－

－

－

10,989,321

Depreciation & amortization

1,230,150

95,237

22,843

1,348,232

171,839

1,520,071

－

－

－

－

－

－

Revenues
Sales to externalcustomers
Intersegment revenue
Total
Segment profit (△=loss)

Impairment Loss

Adjustments
Consolidated(Note)

Total(Note) Adjustment of segment profit of △¥3,069 mil. consist of general corporate expenses not allocated to any―25―reportable segment of △¥3,185 mil. and elimination of intersegment transactions of ¥115 mil. General corporate
expenses consist of selling, general and administrative expenses not allocation to any reportable segment.
⑧ Per Share Information(１) Basic earnings per share
The basis for calculation basic earnings per shares is as follows.
(Unit: Thousand yen)
FY2019(From October 1, 2018
to September 30, 2019)
Profit attributable to owners of parent (△=loss)
Continuing operations
Discontinued operations
Average number of shares
Basic earnings per share (△=loss)
Continuing operations
Discontinued operations

5,267,465
6,233,679△966,214
73,562,191 shares¥71.61¥84.74△¥13.13

FY2020(From October 1, 2019
to September 30, 2020)
7,624,148
7,794,879△170,731
73,579,725 shares¥103.62¥105.94△¥2.32(２) Diluted earnings per share
The basis for calculation diluted earnings per shares is as follows.
(Unit: Thousand yen)

5,267,465
46,540

FY2020(From October 1, 2019
to September 30, 2020)
7,624,148
38,272

5,314,005

7,662,420

6,280,219△966,214
73,562,191 shares

7,833,151△170,731
73,579,725 shares

2,252,371 shares
75,814,562 shares¥70.09¥82.84△¥12.74

2,253,894 shares
75,833,619 shares¥101.04¥103.29△¥2.25FY2019(From October 1, 2018
to September 30, 2019)
Profit attributable to owners of parent (△=loss)
Adjustment to profit
Profit attributable to owners of parent after dilution (△=loss)
Continuing operations
Discontinued operations
Average number of shares
Effect of dilutive securities
Convertible bond-type bonds with subscription rights
Number of shares after effect of dilutive shares
Diluted earnings per share (△=loss)
Continuing operations
Discontinued operations―26―

⑨ Discontinued Operations
FY2020 (From October 1, 2019 to September 30, 2020)a.

Overview of discontinued operations
GMO Payment Gateway resolved at the Board of Directors meeting held of April 30, 2020 to sell all the shares
Macro Kiosk Berhad held through a subsidiary (the “Sale”) and signed the Share Transfer Agreement on the samedate. As a result of the Sale, Macro Kiosk Berhad has been deconsolidated and is reclassified as discontinued
operation from the third quarter of the condensed consolidated financial statements. The Sale was completed on
May 18, 2020.

b.

Profit/Loss from discontinued operation
Profit/Loss from discontinued operation is as follows.
(Unit: Thousand yen)

5,206,311△6,464,340

FY2020(From October 1, 2019
to September 30, 2020)
3,858,555△4,016,892△1,258,028△158,338

FY2019(From October 1, 2018
to September 30, 2019)
IncomeExpenses (see Note)
Profit/Loss before income taxes fromdiscontinued operation
Corporate tax expense (see Note)
Profit/loss from discontinued operation

57,436△20,859△1,200,593△179,198(Note) The figure for FY2020 includes ¥172 mil. in losses from sale of subsidiary shares of Macro Kiosk Berhad. There isno material impact on the corporate tax expense.
c. Cash flow from discontinued operation
Cash flow from discontinued operation is as follows.
(Unit: Thousand yen)
FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities(see Note)
Net cash provided by (used in) financing activities△232,016

431,502△118,798△33,783△11,768△62,431

Total△362,583

335,287(Note) Due to the loss of controlling interest in Macro Kiosk Berhad, the net payment for the transfer of shares, net of the
cash and cash equivalents held by the company, amounted to △¥968 mil. and is presented in “Payment for sale ofsubsidiary shares resulting in change in the scope of consolidation” found under “Net cash provided by (used in)financing activities” of the Condensed consolidated statement of cash flows.
d. Assets and liabilities from loss of controlling interest.
Assets and liabilities from loss of controlling interest is as follows.
(Unit: Thousand yen)
As of the date of completion ofshare transfer (May 18, 2020)
Cash and cash equivalents

968,256

Receivables

1,266,351

Assets other than the above

341,565△1,699,085

Payables△391,285

Liabilities other than the above
Total

485,801―27―