Summary of Consolidated Financial Statements for Q3 FY2024 (IFRS)
August 8, 2024
Name of listed company:
GMO Payment Gateway, Inc.
Exchange: Tokyo Stock Exchange
Stock code:
URL: https://www.gmo-pg.com/en/ir/
3769
Representative:
Issei Ainoura
President & Chief Executive Officer
Contact:
Ryu Muramatsu
Director, Executive Vice President
Tel: +81-3-3464-0182
Scheduled date of commencement for dividend payment: －Supplemental materials prepared for financial results:
Yes
Information meeting arranged related to financial results:(for institutional investors and analysts)
Yes(Amounts rounded down to the nearest million yen)

１．Consolidated Financial Statements for Q3 FY2024 (From October 1, 2023 to June 30, 2024)(1) Consolidated Financial Statements (Cumulative)
OperatingprofitRevenue％ Mil Yen

Mil Yen(Percentages represent year-on-year change)

Profit before
income taxes％ Mil Yen

Profit attributableTotal
to owners of comprehensive
parentincomeProfit％ Mil Yen％

54,196 15.3 19,518 21.8 21,878 37.1 14,690 36.1
47,000 27.2 16,022 25.3 15,954 △47.7 10,795 △49.3

Q3 FY2024
Q3 FY2023

Basic earnings per
share
Q3 FY2024
Q3 FY2023％ Mil Yen

Mil Yen％

14,249 35.5 18,995
42.3
10,515 △50.2 13,348 △57.8

Diluted earnings per
share

Yen

Yen

187.87138.65185.74137.23(2) Consolidated Financial Position
Total assets
Q3 FY2024
FY2023

Total equity
Ratio of total equity
attributable to owners attributable to owners ofof parent
parent to total assets

Total equity

Mil Yen

Mil Yen

Mil Yen%333,983
292,346

106,905
94,804

104,061
92,274

31.2
31.6

２．Dividends
Annual dividend
End of Q1
FY2023
FY2024FY2024 (forecast)(Note)End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00
0.00

0.00
0.00

0.00
0.00

89.00

89.00

103.00103.00

Revision to the most recently released dividend forecast:No

３．Consolidated Financial Forecast for the Fiscal Year Ending September 2024
(From October 1, 2023 to September 30, 2024)(% represents year-on-year change)

Revenue
FY2024(Note)

Operating profit

Profit before
income taxes

Profitattributable to Basic earnings
owners of parent per share

ProfitMil Yen%

Mil Yen%

Mil Yen%

Mil Yen%

Mil Yen%Yen

73,28616.1

25,00023.1

23,90415.8

15,961

15.5

15,52315.2

204.68

Revision to the most recently released financial results forecast:

―1―

No

※
(1)

NoticesSignificant changes in the scope of consolidation during the period: 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.: No[2] Changes in accounting policy other than [1]: No[3] Changes in accounting estimations: No(2)

Number of shares issued (common stock)[1] Number of shares issued at the end of the term(including treasury stock)[2] Number of treasury shares at the end of the term
[3] Average number of shares during the term※)

Q3 FY2024: 76,557,545

FY 2023: 76,557,545

Q3 FY2024:
709,841
Q3 FY2024: 75,845,528

FY 2023:
715,071
Q3 FY2023: 75,842,486(Note) Number of treasury shares at the end of the term above include the shares attributed to the directors’
remuneration board incentive plan trust and J-ESOP (709,705 shares for FY2023; 704,305 shares for Q3
FY2024.)
Review of the Japanese-language originals of the attached consolidated quarterly financial
Yes (voluntary)statements by certified public accountants or audit firm:※

Notes regarding the proper use of financial forecast and other special matters.

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 otherfactors. For the assumption on which financial forecasts are based and matters to be considered in using financial
forecasts, please refer to “(3) Earnings Forecast” under “1. Qualitative Information on Consolidated Financial
Statements for the Quarter” on page 9 of the attachment.
Results Presentation for investors and analysts to be held on August 9, 2024. Supporting materials and a video ofthe presentation will be made available promptly on the company's website after the event.

2.

―2―

Table of contents of attachments
１．Overview of Operating Results and Others………………………………………………………….…..................

4（１）Overview of operating results……………………………………………………………………………..……….

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

8（３）Earnings forecast………...………………………………………………………………………………………...

9

2．Condensed Consolidated Financial Statements and Major Notes….…………………………...…………….…….. 10（１）Condensed consolidated balance sheet…………………………………………..………….………..………...

10（２）Condensed consolidated statement of income and consolidated statement of comprehensive income….

12（３）Condensed consolidated statement of changes in equity………………………………………………..…….. 14（４）Condensed consolidated statement of cash flows………………………………………………………...…….

15（５）Notes regarding the going concern assumptions……………………………………………………….……….

17（６）Notes regarding condensed quarterly consolidated financial statements…………………………….……....

17➀

Basis of preparation……………………..…….……………………………………………………………..

➁

Segment Information…………………...……………..………...…………….………..…..……………….. 17③

Cash and cash equivalents……………………..…….……………………………………………………..

19④

Trade and other receivables…………………...……………..………...……………..…..………………..

19⑤

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

19⑥

Gain on sale of investments accounted for using equity method…………..………...………………..

19⑦

Related party transactions……………………………………………………………..……………………. 20

―3―

17

１．Overview of Operating Results and Others（１）Overview of operating results
Forward-looking statements in the document are based on the judgement of GMO Payment Gateway, Inc. (GMO-PG
or the Company) and its consolidated subsidiaries at the end of the quarter under review.
Consolidated operating results①

Cumulative financial results for the consolidated third quarter 2024 (October 1, 2023 to June 30, 2024) as follows.
(Unit: Thousand Yen)
Q3 FY2023(From October 1, 2022
to June 30, 2023)

Q3 FY2024(From October 1, 2023
to June 30, 2024)

Rate of change (%)

Revenue

47,000,632

54,196,361

15.3

Operating profit

16,022,020

19,518,669

21.8

Profit before income taxes

15,954,566

21,878,194

37.1

10,515,637

14,249,170

35.5

Profit attributable to owners ofparentａ. Revenue

Revenue reached ¥54,196 mil, up 15.3% YoY. The sum total of online billing, recurring billing, Card Present (CP)payment and GMO Payment After Delivery’s transaction volume increased by 19.6% YoY and transaction value
by 25.3% YoY. As a result, the Payment Processing Business revenue reached ¥41,016 mil (up 14.6% YoY),
Money Service Business (MSB) revenue was ¥12,198 mil (up 17.4% YoY) and Payment Enhancement Businessrevenue was ¥1,063 mil (up 27.7% YoY). For details, please refer to page 5 of “② Results by segment” foundunder “(1) Overview of operating results” of “1. Overview of Operating Results and Others”.
Revenue breakdown by business model is as follows. The stock, fee and spread revenues are trending favorably,
while initial revenue was impacted by hard comps from the large-scale project in the CP domain recorded in theprevious fiscal year.
(Unit: Thousand Yen)
Business model

Q3 FY2023(From October 1, 2022
to June 30, 2023)

Q3 FY2024(From October 1, 2023
to June 30, 2024)

Rate of change(%)

Initial(Initial revenue)

8,812,192

9,035,171

2.5

Stock
(Fixed revenue)
Fee(Transaction processing
revenue)
Spread(Merchant acquiring service
revenue)

6,934,834

8,406,765

21.2

12,999,067

15,653,326

20.4

18,254,537

21,101,098

15.6

47,000,632

54,196,361

15.3

Total

―4―

ｂ. Operating profit
Operating profit reached ¥19,518 mil, up by 21.8% YoY, making steady progress towards achieving the full year
earnings forecast for the fiscal year ending September 2024 (FY2024).
By segment, Payment Processing Business segment profit (operating profit) was ¥19,138 mil, up 19.5% YoY;
Money Service Business segment profit (operating profit) stood at ¥3,252 mil, up 43.2% YoY; Payment
Enhancement Business segment profit (operating profit) of ¥278 mil (up 34.3% YoY). For details, please refer topage 5 of “② Results by segment” found under “(1) Overview of operating results” of “1. Overview of Operating
Results and Other”.
ｃ. Profit before income taxes
Profit before income taxes reached ¥21,878 mil, up 37.1% YoY. The reason for the third quarter pre-tax profit toincrease by 37.1% YoY compared to the operating profit growth rate of 21.8% YoY is due to recording gains onsale of investments accounted for using equity method of ¥1,624 mil. For details, please refer to page 19 of “⑥Gain on sales of investments accounted for using equity method”, found under “(6) Notes regarding condensed
consolidated financial statement” of “2. Condensed Consolidated Financial Statements and Major Notes.”②

Results by segment
Performance by reportable segment is explained below.
(Unit: Thousand Yen)
Segment
Payment Processing Business
Revenue
Segment profit (△=loss)

Q3 FY2023(From October 1, 2022
to June 30, 2023)

Q3 FY2024(From October 1, 2023
to June 30, 2024)

Rate of change(%)

35,792,321
16,012,960

41,016,105
19,138,838

14.6
19.5

10,393,189
2,270,585

12,198,396
3,252,284

17.4
43.2

Money Service Business
Revenue
Segment profit (△=loss)
Payment Enhancement
Business
Revenue
Segment profit (△=loss)
Adjustments
Revenue
Segment profit (△=loss)

832,923
207,148

1,063,927
278,29427.7
34.3△17,801△2,468,674△82,068△3,150,747

－
－

Total
Revenue
Segment profit (△=loss)

47,000,632
16,022,020

54,196,361
19,518,669

15.3
21.8

―5―

ａ. Payment Processing Business
The Payment Processing Business focusses on expanding payment processing services for online billing,recurring billing, and CP payments, as well as providing Banking as a Service (BaaS) support to financial
institutions and business operators. In the online billing and recurring billing domain, we focused our efforts toacquire large and medium- to small-sized merchants across various industries as well as expand services to awide array of non-EC merchants, given the backdrop of the steadily expanding E-Commerce (EC) market.
During the third quarter under review, revenues in the online billing and recurring billing domains expanded
thanks to the increase in online payments in public taxes/utilities and household goods sectors, etc.
In the CP domain during the third quarter, initial revenue benefited from the steady adoption of payment terminals
led by ‘stera’ and IoT terminals such as unattended machines, driven by the need for unattended stores andlabor-saving measures despite the impact of hard comps from the large-scale project recorded in the previous
fiscal year. In addition, stock, fee and spread revenues also increased from the stable operation of payment
terminals, led primarily by fee revenue.
Furthermore, revenues for processing platform service increased from the start of revenue contribution of a largescale projects from first quarter onwards in the Banking as a Service (BaaS) support service, which is capturing
the expanding need for cashless payments and Digital Transformation (DX).
As a result, segment revenue reached ¥41,016 mil, up 14.6% YoY and segment profit (operating profit) was¥19,138 mil, up 19.5% YoY.
Note that based on the resolution reached at the Board of Directors meeting held on March 28, 2024, theCompany will be the successor of the rights and obligations related to the acquiring business operated by GMO
Aozora Net Bank, Ltd. through a company split.
ｂ. Money Service Business
Money Service Business (MSB) consists of Early Payment service to help merchants improve their cash flow;
Transaction Lending service, a loan service for merchants; Lending service to overseas FinTech operators;
Remittance service; Instant Salary byGMO, a salary prepayment service, GMO Payment After Delivery and GMO
Pay On Credit, a B2B payment-after-delivery service, provided by the consolidated subsidiary GMO Payment
Service, Inc.; and “atokara,” a BNPL payment service which caters to installment and CP transactions offered
together with Sumitomo Mitsui Card Company, Ltd.
During the third quarter under review, revenue for Payment After Delivery service increased from the continuingacquisition of large merchants despite the cycling through of commission rate revisions in the previous fiscal year.
The lending service to overseas FinTech operators also contributed to segment revenue from expanding loans
primarily in North America and India. Furthermore, the number of contracts trended steadily for Instant Salary
byGMO.
As a result, segment revenue reached ¥12,198 mil, up 17.4% YoY and segment profit (operating profit) was¥3,252 mil, an increase of 43.2% YoY thanks to the decline in default rates that enabled credit related cost to becontrolled for Payment After Delivery service as well as the growth in lending service to overseas FinTech
operators.

―6―

ｃ. Payment Enhancement Business
Payment Enhancement Business comprises of online advertising service to support the revenue growth atmerchants that the Group transacts with, and “Medical Kakumei byGMO,” a reservation management system
exclusively for medical institutions to enable operational efficiency at medical reception counters, provided by
the consolidated subsidiary GMO Medical Reservations Technology Co. Ltd.
In the third quarter under review, demand increased for services offered by GMO Medical Reservation
Technology Co. Ltd., such as smartphone-based app to make reservations, fill out medical questionnaires,complete reception and payment as well as to consolidate multiple patient registration cards from medical
institutions on the smartphone, resulting in a favorable revenue growth of 61.7% YoY as well as positively
contributing to profits. In addition, online advertising revenue also increased.
As a result of the above, segment revenue was ¥1,063 mil, up 27.7% YoY and segment profit (operating profit)
was ¥278 mil, up 34.3% YoY.
The table below shows the companies providing the various businesses/services by segment.
Segment
Payment
Processing
Business

Major service

Major companies of the service

Payment processing service(Online billing and recurring billing)

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

Payment processing service
GMO Financial Gate, Inc. (consolidated subsidiary)(CP)
GMO Payment After Delivery

GMO Payment Service, Inc.
(consolidated subsidiary)

Remittance service
Money Service
Business

Transaction Lending
Overseas Lending

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

Early Payment service

Payment

GMO Payment Gateway, Inc.

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

Instant Salary byGMO

GMO Payment Gateway, Inc.

Online Advertising service

GMO Payment Gateway, Inc.

Enhancement
Medical Kakumei byGMO

GMO Medical Reservations Technology Co., Ltd.
(consolidated subsidiary)Business―7―

（２）Status of consolidated financial position① Assets, liabilities and equity
ａ. Assets
Total assets at the end of the consolidated third quarter increased by ¥41,637 mil from the end of the previous
fiscal year to reach ¥333,983 mil. This is mainly due to the increase in cash and cash equivalents of ¥29,413 mil,trade and other receivables of ¥5,338 mil, accrued revenues of ¥3,870, inventories of ¥564 mil, other financial
assets of ¥4,527 mil and goodwill, intangible assets by ¥1,437 mil and, investment accounted using equity
method of ¥1.302 mil, despite the decline in deposits to subsidiaries and affiliated companies of ¥5,300 mil.
ｂ. Liabilities
Balance of liabilities at the end of the consolidated third quarter under review stood at ¥227,078 mil, an increaseof ¥29,536 mil from the end of the previous consolidated fiscal year. This is mainly due to the increase in accrued
expenses of ¥3,227 mil, deposits received of ¥27,497 mil and borrowings of ¥4,040 mil, despite the decrease inincome tax payables of ¥6,535 mil.
ｃ. Equity
Equity balance at the end of the consolidated third quarter under review was ¥106,905 mil, an increase of ¥12,100
mil from the end of the previous consolidated fiscal year. This was mainly due to the increase in profit of ¥14,690
mil. and other comprehensive income of ¥4,304 mil, despite the decrease in retained earnings for dividend
payment of ¥6,749 mil.
② Consolidated cash flow
Cash and cash equivalents (“funds”) at the end of the consolidated third quarter under review increased by¥29,413 mil compared to the balance at the start of the term, to reach ¥163,071 mil. The state of cash flows over
the third quarter under review is discussed below.
ａ. Cash flow from operating activities
Net funds provided by operating activities during the consolidated third quarter under review amounted to¥31,261 mil, which compares to ¥9,797 mil in net funds acquired in the same period of the previous year. This
resulted from cash outflows from (i) increase in trade and other receivables of ¥4,673 mil, (ii) an increase inaccrued revenues of ¥3,869 mil, (iii) income tax payments of ¥13,759 mil, which was offset by cash inflows of (i)profit before income tax of ¥21,878 mil, (ii) increase in accrued expenses of ¥3,008 mil, (iii) increase in deposits
received of ¥27,497 mil.
ｂ. Cash flow from investing activities
Net funds used by investing activities during the consolidated third quarter under review totaled ¥1,034 mil,compared to the net funds acquired of ¥15,386 mil during the same period of the previous year. This resulted
from cash outflows from (i) purchase of intangible assets of ¥2,989 mil, (ii) purchase of investment securities of¥4,509 mil, which was offset by cash inflows from (i) sales of investment securities of ¥1,624 mil and (ii)
withdrawal of deposits to subsidiaries and affiliated companies of ¥5,300 mil.
ｃ. Cash flow from financing activities
Net funds used by financing activities over the consolidated third quarter under review was ¥3,412 mil which
compares to net funds used of ¥6,287 mil during the same period of the previous year. This is mainly due to cash
inflows from net increase in short term borrowings of ¥3,900 mil which was offset by cash outflows from dividend
payouts of ¥6,745 mil.

―8―

（３）Earnings forecast
The businesses of GMO-PG and its consolidated subsidiaries are positioned primarily within the E-Commerce (EC)market, and the current merchandise domain of the B2C EC market is expected to continue to grow thanks to largescale business operators expanding their sales channel and changes in consumption behavior, despite somesaturation in the market segment addressed primarily by small-sized merchants. Additionally, the non-merchandise
domain, such as services closely related to daily life such as public utilities, taxes/public dues and medical expenses,
are expected to continue on a high growth from the solid progress in online migration of payments. In addition, thescope of the EC market itself is expanding driven by the online migration of inter-company transactions (B2B) andinter-consumer transactions (C2C).
The CP domain, which is addressed by the consolidated subsidiary GMO Financial Gate, Inc. is undergoing an
acceleration in cashless adoption of various payment methods including credit cards. This is leading to new business
opportunities as well as to expand the scope of businesses for GMO-PG and its consolidated subsidiaries.
The business environment for the fiscal year ending September 2024 (FY2024) faces lingering uncertainty overprivate consumption caused by uncertainties over the global state of affairs leading to volatile capital markets,
inflation and the decline in real wages, despite positive effects from an increase in inbound consumption and rising
momentum for wage increases by corporates. This is expected to have a negative impact on online payment for
GMO-PG and its consolidated subsidiaries in the near term. Given this business environment, we will work tostrengthen the business foundation to continue to grow operating profit at a compound average growth rate (CAGR)
of 25% by pursuing the priority initiatives such as acquiring large-scale and growth-oriented merchants, undertaking
large-scale projects, launching industry-specific DX platforms that offers ‘payment + α’ solutions, BaaS support
services to financial institutions and business operators and, the next generation payment platform of ‘stera’.
The consolidated earnings forecast for FY2024 is revenue ¥73,286 mil (up 16.1% YoY), operating profit of ¥25,000
mil (up 23.1% YoY), profit before income taxes of ¥23,904 mil (up 15.8% YoY) and profit of ¥15,961 mil (up 15.5%
YoY) and profit attributable to owners of parent of ¥15,523 mil (up 15.2% YoY).
Note that profit before income taxes is likely overshoot forecasts due to gain on sale of investments accounted forusing equity method of ¥1,624 mil in the third quarter.

―9―

２．Condensed Consolidated Financial Statements and Major Notes（１）Condensed consolidated balance sheet
Notes

End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2024)

AssetsCurrent assets
Cash and cash equivalents③

133,658,153

163,071,597④

18,953,746

25,040,633

Advances paid

63,387,197

62,803,610

Accrued revenue

33,395,131

37,265,232

Inventories

2,405,040

2,969,494

5,300,000－

650,307927,088

Trade and other receivables

Deposits to subsidiaries and affiliates⑤

Other financial assets
Other current assets

717,719964,863

Total current assets

258,467,295

293,042,521

Property, plant and equipment

3,353,504

3,962,880

Goodwill and other intangible assets
Investments accounted for using equity
methodTrade and other receivables

9,310,325

10,747,994

9,194,822

10,497,183

Non-current assets

3,622,301

2,873,855

Other financial assets

6,615,112

10,865,529

Deferred Tax Assets

1,700,228

1,718,325

Other non-current assets

83,227

275,668

Total non-current assets

33,879,522

40,941,437

292,346,818

333,983,958④

Total assets―10―NotesEnd of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2024)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

6,555,211

6,479,069

Accrued expenses

25,371,033

28,598,612

Deposits received

97,231,797

124,729,396

Borrowings

20,395,000

24,340,000

Other financial liabilities

388,765

715,681

Income taxes payable, etc.

7,888,647

1,353,310

Provisions

320,963296,200

Other current liabilities

5,138,950

5,878,372

Total current liabilities

163,290,369

192,390,643

Corporate bonds

19,763,730

19,827,863

Borrowings

8,955,000

9,050,000

Other financial liabilities

2,128,594

2,301,276

130,854

131,109

1,221,695

1,318,722

Non-current liabilities

Provisions
Deferred tax liabilities
Other non-current liabilities

2,051,729

2,058,974

Total non-current liabilities

34,251,605

34,687,947

197,541,975

227,078,590

Capital stock

13,323,135

13,323,135

Capital surplus

15,247,534

15,193,582

Retained earnings

50,768,961

58,267,302

Treasury stock△1,153,329△1,116,374

Other items of equity
Total equity attributable toowners of parent
Non-controlling interests

14,088,034

18,393,554

92,274,336

104,061,199

2,530,506

2,844,167

Total equity

94,804,843

106,905,367

292,346,818

333,983,958

Total liabilities
EquityTotal liabilities and equity―11―（２）Condensed consolidated statement of income and consolidated statement of comprehensive
incomeCondensed consolidated statement of income

Notes(Unit: Thousand Yen)
Q3 FY2024(From October 1, 2023
to June 30, 2024)

Q3 FY2023(From October 1, 2022
to June 30, 2023)

Revenue(of which, interest income ※)Cost of revenue
Gross profit
Other income
Selling, general and administrative
expenses
Other expense
Operating profit

47,000,632

54,196,361

8,509,494

9,546,077△17,219,643△18,865,077

29,780,989

35,331,283

215,550

269,646△13,932,230△16,056,287△42,288△25,974

16,022,020

19,518,669

Financial income

731,542858,926

Financial expense△851,916△306,362

52,920182,379－

1,624,581

15,954,566

21,878,194

Income tax expenses△5,159,371△7,187,616

Quarterly profit

10,795,195

14,690,577

10,515,637

14,249,170

279,557

441,407

10,795,195

14,690,577

Basic earnings per share

138.65187.87

Diluted earnings per share137.23185.74Equity method investment gains or loss
Gain on sales investment accounted for using
equity method
Profit before income taxes⑥

Quarterly profit attributable to
Owners of parent
Non-controlling interests
Quarterly Profit
Earnings per share (Yen/share)（※）The figure present the interest income calculated using the effective interest method as per IFRS 9 Financial
Instruments.

―12―

Condensed consolidated statement of comprehensive income

Notes

Q3 FY2023(From October 1, 2022
to June 30, 2023)

Quarterly Profit
Other comprehensive income
Items that will not be reclassified to profit orloss
Fair value of financial assets measured
through other comprehensive income
Share of other comprehensive income ofequity 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
Total of items that will be reclassified to
profit or loss
Other comprehensive income after
income taxes
Comprehensive income(Unit: Thousand Yen)
Q3 FY2024(From October 1, 2023
to June 30, 2024)

10,795,195

14,690,577

321,057△252,559

302,981465,208

624,038

212,649

1,928,948

4,092,295

1,928,948

4,092,295

2,552,987

4,304,945

13,348,182

18,995,522

13,074,624

18,552,970

273,558

442,552

13,348,182

18,995,522

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Total

―13―

（３）Condensed consolidated statement of changes in equity
Third quarter of the previous consolidated fiscal year (from October 1, 2022 to June 30, 2023)

Notes

Balance as of October 1,
2022
Quarterly Profit
Other comprehensive
incomeQuarterlycomprehensive income
Purchase of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of June 30,2023

Capitalstock

Capitalsurplus13,323,135 15,272,474

Retainedearnings

Treasurystock(Unit: Thousand Yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent

49,424,496 △1,152,444 10,255,198

87,122,860

2,137,790

89,260,651－－

10,515,637－－

10,515,637

279,557

10,795,195

－

－

－

－

2,558,986

2,558,986△5,9992,552,987－－

10,515,637－

2,558,986

13,074,624

273,558

13,348,182

－

－

－

△884

－

△884

－

△884

－

－ △12,134,807－－ △12,134,807

－

－

－

－

－

－

△102,856△102,856－

33,231－－－

33,231－

33,231－△65,069－－－△65,069

147,384

82,315－－△4,369－－△4,369－△4,369△31,837 △12,139,177

△884

－

13,323,135 15,240,637－ △12,171,899

47,800,956 △1,153,329 12,814,184

88,025,585－ △12,134,807

44,527 △12,127,371
2,455,876

90,481,462

Third quarter of the current consolidated fiscal year (from October 1, 2023 to June 30, 2024)

Notes

Balance as of October 1,
2023
Quarterly Profit
Other comprehensive
incomeQuarterlycomprehensive income
Purchase of treasury
stock
Disposal of treasury
stock
Dividends
Dividends paid to noncontrolling interests
Transfer from othercomponents of equity toretained earnings
Share-based paymenttransaction
Changes in the interestin controlled subsidiary
Other Increase or
Decrease
Total transactions withownersBalance as of June 30,2024

Capitalstock

Capitalsurplus13,323,135 15,247,534

Retainedearnings

Treasurystock(Unit: Thousand Yen)
Total
Other
equityNonTotal
items of attributable controlling
Equityequityto owners interestsof parent

50,768,961 △1,153,329 14,088,034

92,274,336

2,530,506

94,804,843－－

14,249,170－－

14,249,170

441,407

14,690,577

－

－

－

－

4,303,800

4,303,800

1,145

4,304,945－－

14,249,170－

4,303,800

18,552,970

442,552

18,995,522

－

－

－

△1,482－△1,482－△1,482

－

△333

－

－

－

△333

－

△333

－

－ △6,749,109－－ △6,749,109

－

－

－

－

－

－

△165,227△165,227－－△4,597

－

4,597

－

－

－

－

△67,743－

38,437－△29,306－△29,306－

14,125－－－

14,12536,33650,461

－

－

2,878

－

△2,878－－－△53,951 △6,750,829

36,954－

13,323,135 15,193,582－ △6,749,109

1,719 △6,766,107△128,890 △6,894,998

58,267,302 △1,116,374 18,393,554 104,061,199

2,844,167 106,905,367―14―

（４）Condensed consolidated statement of cash flows
Notes(Unit: Thousand Yen)
Q3 FY2024(From October 1, 2023
to June 30, 2024)

Q3 FY2023(From October 1, 2022
to June 30, 2023)

Net cash provided by (used in) operating
activities
15,954,566

Profit before income taxes
Depreciation & Amortization
Financial income and expense(△=gain)
Equity method investment gain/loss(△=increase)
Gain on sales of equity method
invesetments
Increase/decrease in inventories(△=increase)
Increase/decrease in trade andother receivables (△=increase)
In/Decrease in advances paid(△=increase)
In/Decrease in accrued revenues(△=increase)
In/Decrease in trade payables(△=decrease)
In/Decrease in accrued expenses(△=decrease)
In/Decrease in deposits received(△=decrease)
In/Decrease in other current liabilities(△=decrease)
In/Decrease in other non-current
liabilities (△=decrease)
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in)operating activities
Net cash provided by (used in) investing
activities
Payments into restricted deposits
Proceeds from withdrawal of restricted
deposits
Purchase of property, plants andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment
securities
Purchase of investments accounted forusing equity method
Proceeds from distributions ofinvestments partnerships
Payments into deposits to
subsidiaries and affiliates
Proceeds from withdrawal of deposits
to subsidiaries and affiliates
OthersNet cash provided by (used in)investing activities

⑥

―15―

21,878,194

1,772,380

2,427,890

120,374△552,563△52,920△182,379－△1,624,581△1,209,668△564,454△4,202,945△4,673,848△6,058,855

583,586△5,882,795△3,869,674

803,581△77,292

3,819,993

3,008,315

14,723,436

27,497,242△823,058

734,277△446,621

40,378△443,838△347,005

18,073,628

44,278,083

751,755

886,680△110,678△144,196△8,917,020△13,759,062

9,797,684

31,261,503△12,533,900－

20,916,744－△378,853△244,333△3,220,550△2,989,040△708,536△4,509,153

98,106

1,624,581－△400,000

167,854494,840△5,300,000－

16,500,000

5,300,000△154,216△311,623

15,386,648△1,034,729

NotesNet cash provided by (used in) financing
activities
Net
in/decreaseinshort-termborrowings (△=decrease)
Increase in long-term borrowings
Repayment of long-term borrowings
Dividends paid
Dividends paid to non-controllinginterests
Capital contributions from noncontrolling interests
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
Balance of cash and cash equivalents at
the end of period(Unit: Thousand Yen)
Q3 FY2024(From October 1, 2023
to June 30, 2024)

Q3 FY2023(From October 1, 2022
to June 30, 2023)

2,900,000

3,900,000

3,450,000

500,000－△360,000△12,127,045△6,745,516△102,856△165,221

23,89017,495△431,705△558,939△6,287,717△3,412,181

1,317,078

2,598,851

20,213,694

29,413,444③

113,967,930

133,658,153③

134,181,625

163,071,597―16―

（５）Notes regarding the going concern assumptions
N/A（６）Notes regarding condensed quarterly consolidated financial statements① Basis of preparation
The consolidated financial statements (condensed quarterly balance sheet, condensed quarterly statement ofincome, condensed quarterly statement of comprehensive income, condensed quarterly statement of changes inequity, condensed quarterly statement of cash flows and notes) of GMO-PG and its consolidated subsidiaries havebeen prepared in accordance with the Article 5-2 of the Tokyo Sock Exchange’s standards for preparation of quarterly
financial statements (however, part of the disclosures required under Article 5-5 of the same standards have been
omitted). Parts of the disclosure and notes required under IAS 34 “Interim Financial Reporting” have also been
omitted.
② Segment Information
ａ．Overview of Reportable Segments
The reporting segments of the Group are based on operating segments for which separate financial information
are available and which the Board of Directors regularly reviews to determine the allocation of management
resources and evaluate their performance.
The Group has business units and subsidiaries according to the products and/or services, and each business unit
and subsidiaries carries out the business activities for the respective products and/or services and formulates
comprehensive strategies covering Japan and overseas.
Therefore, the Group is comprised of the products and services grouped according to the explanation above andthese business segments are further categorized by characteristics and similarity in the markets they are sold into,
to be classified under the three reportable segments of Payment Processing Business, Money Service Businessand Payment Enhancement Business.
The main products and services included in the reportable segments are as shown below:
Reportable

Main products and services

Segment
Payment

Mainly consists of payment processing for online billing, recurring billing and for Card

Processing

Present payment processing.

Business
Money

ServiceBusiness

Mainly consists of GMO Payment After Delivery, Money services such as Remittance,
Transaction Lending to provide loans for growth, overseas lending, Early Payment service
to improve merchant’s cash cycle and the salary prepayment service of Instant Salary
byGMO.

Payment

Mainly consists of online advertising service aimed at increasing revenues at merchants,

Enhancement

and Medical Kakumei byGMO, a reservation management system exclusively for medical

Business

institutions.

―17―ｂ．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 or loss for the reportable segments are reconciled as
operating profit or loss. Intersegment transactions are based on equivalent prices of arm’s length transactions.
Previous Q3 FY2023 (From October 1, 2022 to June 30, 2023)(Unit: Thousand yen)
Payment
Processing
Business

Money
ServiceBusiness

Payment
Enhancement
Business

35,775,276

10,393,120

832,235

47,000,632－

47,000,632

17,04468

687

17,801△17,801－

35,792,321

10,393,189

832,923

47,018,434△17,801

47,000,632

16,012,960

2,270,585

207,148

18,490,694 △2,468,674

16,022,020

Financial income

－

－

－

－

－

731,542

Financial expense

－

－

－

－

－

△851,916

Equity method investment
gains (△=loss)

－

－

－

－

－

52,920

Profit before income taxes

－

－

－

－

－

15,954,566

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

Adjustments
Consolidated(Note)

Total(Note) Adjustment of segment profit of △¥2,468 mil. consists of general corporate expenses not allocated to any
reportable segment of △¥2,602 mil. and elimination of intersegment transactions of ¥133 mil. General corporate
expenses consist of general and administrative expenses not allocated to any reportable segment.
Current Q3 FY2024 (From October 1, 2023 to June 30, 2024)(Unit: Thousand yen)
Payment
Processing
Business

Money
ServiceBusiness

Payment
Enhancement
Business

Total

40,937,643

12,198,052

1,060,665

54,196,361－

54,196,361

78,461344

3,261

82,068△82,068－

41,016,105

12,198,396

1,063,927

54,278,429△82,068

54,196,361

19,138,838

3,252,284

278,294

22,669,417△3,150,747

19,518,669

Financial income

－

－

－

－

－

858,926

Financial expense

－

－

－

－

－

△306,362

－

－

－

－

－

182,379

－

－

－

－

－

1,624,581

－

－

－

－

－

21,878,194

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

Equity method investment
gains (△=loss)
Gain on sale of equity method
investments
Profit before income taxes

Adjustments
Consolidated(Note)(Note) Adjustment of segment profit of △¥3,150 mil. consists of general corporate expenses not allocated to any
reportable segment of △¥3,270 mil. and elimination of intersegment transactions of ¥119 mil. General corporate
expenses consist of general and administrative expenses not allocated to any reportable segment.

―18―

③

Cash and cash equivalents
Breakdown of cash and cash equivalents are as follows.
End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2024)

127,578,153

163,071,597

6,080,000－

133,658,153

163,071,597

Cash and cash equivalents
Deposits to subsidiaries
and affiliates
Total

④

Trade and other receivables
Breakdown of trade and other receivables are as follows.
End of previous consolidated
fiscal year
(September 30, 2023)(Unit: Thousand Yen)
End of Q3 of current
consolidated fiscal year
(June 30, 2024)

Trade and other receivables

7,414,365

9,019,916

Operating loans

14,760,925

18,455,045

661,867

759,433△261,110△319,906

Total

22,576,047

27,914,489

Current assets

18,953,746

25,040,633

Non-current assets

3,622,301

2,873,855

22,576,047

27,914,489

Other
Provisions for doubtful
accounts

Total⑤

Deposits to subsidiaries and affiliates
The deposits to subsidiaries and affiliates are deposits made from cash-on-hand to the CMS (cash management
system) operated by GMO Internet Group, for use by the entire GMO Internet Group companies.

⑥

Gain on sale of investments accounted for using equity method
GMO-PG transferred all the shares of 2C2P Pte. Ltd. held by the consolidated subsidiary GMO-Z.COM PAYMENTGATEWAY PTE. LTD during the 29th Fiscal Year (fiscal year ending September 2022). Part of the transfer value
had been held in an escrow account as set forth in the share transfer agreement.
A gain on sales of investments accounted for using equity method of ¥1,624 mil is recorded in the third quarter inthe condensed quarterly statement of income, as certain conditions have been fulfilled that resulted in an income
from the escrow account mentioned above. Additionally, the condensed quarterly statement of cash flow also
records an income from the sales of investment securities.

―19―

⑦

Related party transactions
GMO-PG and its consolidated subsidiaries engages in the following related party transactions.
Previous Q3 FY2023 (From October 1, 2022 to June 30, 2023)
Type

Name of company

Parentcompany

GMO Internet Group,
Inc.

Description of related-party
transaction
Deposit of funds(Notes 1 and 3)(May contain defined periods)
Interest received (Note 2)

Transaction
Amount(Unit: Thousand yen)
Outstandingbalance

13,828,717

11,380,000

38,768

40

Note:
1.

Comprised of deposits made into the Cash Management System (CSM) operated by GMO Internet Group,
Inc. The transaction amount presents the term average amount.

2.

The interest rate on funds deposited is determined individually based on the deposits period andreferencing prevailing market interest rates.

3.

The balance of cash and cash equivalents at the end of the consolidated third quarter under review
includes ¥6,080 mil in deposits to subsidiaries and affiliated companies. Together with the ¥5,300 mil ofdeposits to subsidiaries and affiliated companies stated in the consolidated balance sheet, the totalbalance of deposits to subsidiaries and affiliated companies stands at ¥11,380 mil.

Current Q3 FY2024 (From October 1, 2023 to June 30, 2024)
No important related party transactions.

―20―