Supplementary Information
Financial results briefing for the Q3 of FY2020

August 13, 2020
GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange First Section)

https://www.gmo-pg.com/en/corp/

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

Our Track Record of Growth
FY2020 Revenue guidance of ¥31.4bn, OP guidance of ¥10.3bn(Mil. Yen)

Revenue※1

35,00031,418+16.7％(Mil. Yen)
10,00030,000 ■MACROKIOSK Revenue■Revenue excl. MK

25,000Operating
Profit10,376

8.5%(+25.0%)8,000

26,922(Mil. Yen)

※1

※1

12,188

EBITDA ※3

12,000+30.3%
10,000

9,351

9,562

8,000

6,000

20,000

6,000
4,000

15,0004,000

10,000

2,000
2,000

IFRS

Operating Stores ※4,5

129,404

J-GAAPIFRS

TRX Volume

TRX Value

23.3bn¥5.5 trillion

2019/92018/92017/92016/92020/9E

J-GAAP

2015/92014/92013/92012/92011/92010/90
2009/92019/92020/9E

2018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92019/92020/9E

2018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92008/9J-GAAP

2008/900

2008/9

5,000

IFRS

（※1）The earnings guidance for Fiscal Year Ending September 2020 (initially announced on November 12, 2019) has been revised on August 7, 2020.
The revised operating profit growth is 8.5% YoY when compared to the previous term’s operating profit, but the growth rate would be 25.0% YoY when compared to theprevious term’s operating profit including discontinued operations.
（※2）Macro Kiosk’s earnings has been reclassified as discontinued operations with it’s deconsolidation in May 2020, and presented separately from the continuing operations as “Profit/Lossfrom Discontinued Operations”, as per IFRS accounting standards. The revenue, operating profit and profit before incomes taxes present the figures for continuing operations onlyand exclude the discontinued operations.
（※3）EBITDA under J-GAAP is calculated as the sum total of operating profit, depreciation and amortization; and EBITDA under IFRS is calculated as sum total of operating profit
and depreciation.
（※4）The number of operating stores is at the end of June 2019. Transaction volume and transaction value are the figures from July 2019 to June 2020; transaction
volume and transaction value include the figures of GMO Financial Gate Group.
（※5）Figures exclude a significant increase in operating stores from a specific merchant. If included, the number of operating stores is 305,004 stores as of end of June 2020.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

2

Three business segments
Sustain an over 25% OP growth from the expansion of mainstay
payment processing business and its peripheral businesses(Actual data for Q3 FY2020)

Payment Enhancement
Business
Online Advertising Service
SSL Service
Delivery Service

Revenuebreakdown

2％

Operating Profit
breakdown

1％

etc.

13%
28％

Money Service Business
(MSB)

70％

86%
Payment Processing
Business

GMO Payment after Delivery
Remittance Service
Overseas Lending
Early Payment Service
B2B Factoring
Transaction Lending

Online Payment ※※Offline Payment (GMO-FG)
Ginko Pay/Processing
System Development

etc.

etc.

※ Online payment includes pay-as-you-go and recurring payment and, Z.com Payment (overseas payment service)
GMO-FG stands for GMO Financial Gate consolidated subsidiaries

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

3

Our Business Eco-system
An eco-system of our value-added services complementing our main
business to achieve mutual growth

Increase in TRX processing

Payment processing(Gross margin 85％)

Payment
Processing
Business

Money Service
Business
Payment
Enhancement
Business

Customer growth
Main Business

Value-added business that contributeto growth of the main business

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

4

Payment Processing Business: Business scope of the
major consolidated subsidiaries
Connecting merchants and payment companies through‘contracts,’ ‘payment information,’ and ‘money flow’.
Consumer

Merchant
129,404 stores ※(end of June 2020)

PC

OnlinePayment

Public money

Account Transfer

NHK,
Municipalities

Carrier billing(e.g. Tokyo Met. Gov.),

Bank transfer
E-money

Video streaming
Software, Apparel

Cash on Delivery

Service commerce

GMO Payment
After Delivery

Digital goods, Donation,
Travel, Insurance

Payment Terminal

40+ Credit cardcompanies
Convenience store

Subscription

OfflinePayment

Payment Service
ProvidersEC
BtoB・BtoC・CtoC

NTA, Automobile tax

Smartphone

GMO-PG consolidated
subsidiaries

40,392 terminals(end of June 2020)

QR codeID-based payment
Multi-currency
Pre-paidetc.

※ Figures exclude a significant increase in operating stores from a specific merchant. If included, the number of operating stores is 305,004 stores as of end of June 2019.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

Payment Processing Business:
Revenue model of credit card payment processing
Revenue model determined by merchant size and type
■ Four Revenue Streams (i.e. Business Models)Initial (Initial revenue)

①

②

③

Initial introduction fees
Coefficient: Number of new merchants acquired
Revenue: Number of new merchants acquired
× _Yen (paid once at acquisition)

Municipalities
Enterprise① ② ③

Stock (Fixed revenue)
Fixed Monthly Revenue
Coefficient: Number of merchants
Revenue： Operating merchants × _Yen

Fee (Transaction processing revenue)

Large and middle-sized
merchants① ② ③ ④

Fee based on transaction volume
Coefficient: Number of payments processed
Revenue： Number of payments processed× _YenSpread (Merchant acquiring service revenue)④■Revenues by merchant type/size

Fee based on transaction value
Coefficient: Amount of payments processed
Revenue： Amount of payments processed× _%Start-ups④

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

Payment Processing: Two types of merchant contracts
Created the Representative Contract and effectively changed
the flow of revenue proceeds
Direct contract
Applies to some large companies
and municipalities

Payment
Processing

Payment
Processing
GMO-PG consolidated
subsidiaries

2.8% Merchant Discount Rate (MDR)

Merchant

Revenue proceeds

CreditCard
Company

Revenue type①

Initial

②

Stock

③

Fee

①

Initial

②

Stock

③

Fee

④

SpreadPayment
Company

0.5％ Spread(Merchant acquiring revenue)
Representative
contract

2.5％ charge

3.0％ charge

Mainly for SME’s but also
covers some large companies

GMO-PG consolidated
subsidiaries

3.2% MDR
Merchant(MDR applied for direct contract withpayment company)※ Figures included are for illustration and reference purposes only.
※ This illustration represents the contracts for credit card. GMO Epsilon revenues are only derived from spreads (See page 6)

CreditCard
Company

Payment
Company
Flow of Revenue and charges

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

7

Revenue breakdown by business model
Aiming for a balanced revenue growth(Mil. Yen)

38,000J-GAAP

IFRS

36,00034,000

MACROKIOSK

32,00030,00028,00026,00024,000Spread22,00020,00018,00016,00014,00012,000Fee

10,000
8,000
6,000
4,000
2,000
0

Stock
Initial

2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9E
2020
2008
2011
2013
2014
2015
2016
TSE
Deconsolidation
Launched
Launched
Launched
Launched
Revamped
Launched
Listingof MK ※
Early
OnlinePayment Transaction Early
services
Payment
Advertising
After
Lending
Payment targeting banks
Service
Service
DeliveryService
GMO-FG and MK※※ GMO-FG stands for GMO Financial Gate. MK stands for MACROKIOSK.
become subsidiaries

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

8

Revenue trend by segment
3 segments of Payment Processing Business, Money Service Business and,
Payment Enhancement Business（Mil. Yen）

40,00038,00036,00034,00032,00030,00028,00026,00024,000J-GAAPIFRS
MACROKIOSKPayment
Enhancement
Business
Money Service
Business

22,00020,00018,00016,00014,00012,000

Payment
Processing
Business

10,000
8,000
6,000
4,000
2,000
0
2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9E
2016
2020
2008
2011
2013
2014
2015
TSE
Launched services
Deconsolidation
Launched
Launched
Launched
Launched
Revamped
Listingtargeting banksof MK ※
Early
OnlinePayment Transaction Early
Payment
Advertising
After
Lending
Payment
GMO-FG and MK ※Service
Service
DeliveryServicebecome subsidiaries※ There was only one segment of Payment Processing Business until September 2015; segment information disclosure began from FY ending September 2016.
※ GMO-FG stands for GMO Financial Gate. MK stands for MACROKIOSK.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

Summary chart of Segments, Business Model and Services
Reporting in 3 Segments and in 4 business models■Business Model■ Segment
Online Payment

Initial（Initial revenue）

Offline Payment (GMO-FG)
System Development
SSL Service
Online Payment

Stock(Fixed revenue)※

Payment Processing

Payment Processing
Business

Offline Payment (GMO-FG)

GMO Payment After Delivery

Online Payment

Remittance Service

Offline Payment (GMO-FG)
GMO Payment After Delivery
Remittance Service
Delivery service

Money Service
Business

Online Payment

Overseas Lending
B2B Factoring
Transaction Lending

Early Payment Service

Transaction Lending

GMO Payment After Delivery
Early Payment Service

Overseas Lending

B2B Factoring

Offline Payment (GMO-FG)

Spread(Merchant acquiring
service revenue )Ginko Pay/Processing
System Development

Ginko Pay/Processing
Online advertising service

Fee(Transaction
processing revenue)※

Offline Payment (GMO-FG)

Payment
Enhancement
Business

Online advertising service
SSL service
Delivery service※ Online Payment includes pay-as-you-go payment, recurring payment, Z.com Payment (overseas payment service).
GMO-FG stands for GMO Financial Gate.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

The 5 Focus Areas
Expanding business in the 5 focus areas to achieve sustainable growth
５ Focus Areas

Narrowlydefined EC;
Broader EC(Page No.)

（P.12）（P.13～14）

Payment Processing Business

Payment Enhancement Business
Online advertising service

Online Payment(Pay-as-you-go/Recurring)

SSL service
Shipping service
GMO Payment After B2B Factoring
DeliveryTransaction Lending
Remittance Service
Early Payment Service

FinTech（P.15～16）

Cashless（P.17）

IoT（P.18）

Offline Payment (GMO-FG)（P.19～20）

Z.com Payment(Overseas payment service)

GlobalMoney Service Business

Ginko Pay
Processing Platform

Overseas Lending※ GMO-FG stands for GMO Financial Gate.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

11

Narrowly-defined EC: B2C EC Market
Low penetration rate of cashless relative to US/European countries and highproportion of cash payment■EC Penetration Rates in Developed Markets

19.1

（％）
17.9

UK

（2016)

Credit Card
usage rate

Debit card

Credit+Debit usage
to private final
consumption
expenditure rate※

South Korea

76 ％

19 ％

95 ％

UK

12 ％

55 ％

67 ％

Australia

30 ％

25 ％

55 ％

US

25 ％

19 ％

44 ％

Japan

18％

-

18 ％

16.2

USA
14.5

Japan

15.0

■ Card usage rate to private final consumption expenditure

12.5
11.3
10.4
9.2

10.0
7.0

7.6

8.2

3.6
1.8

4.1
2.1

4.6
2.5

8.2

5.0
2.8

5.4

3.1

5.8
3.7

6.4
4.4

4.8

5.4

10.9

8.8

7.3

6.0
5.0

9.9

5.8

6.2

6.8

0.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Figures are GMO-PG estimates.
Sources：METI. “FY2019 Global Survey Project Concerning Integrated Domestic andExternal Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 1st Quarter 2020 Retail E-Commerce Sales Report”;
Office for National Statistics ”Retail Sales Index internet sales, July 2020”※ Card usage rate= (Amount handled by CC or DC) / Private final consumption
expenditure※ GMO-PG Estimates by referencing CPSS Red Book “Statistics on payment, clearing
and settlement systems in the CPMI countries - Figures for 2016”
THE WORLD BANK ”Household final consumption expenditure (current USD)”

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

12

Broader EC: Expanding Scope of Cashless Business
The migration towards cashless payment is our growth accelerator

B2B

B2C

C2C

Enormous market
potential¥1,000 trillion

Narrowly-defined
B2C EC market

Developing market¥19.3 trillion
EC ratio: 6.8% (approx. 10% CAGR)

Merchandise EC

OnlinePayment

OfflinePayment¥1 trillion

2018 2020
EC ratio (%) 6.2
7
Mrkt Size ¥17.9tr ¥22tr

B2B
Credit card
payment

Public dues/Utility
・Local tax¥40tr
・National tax ¥66tr

2025
15
¥45tr

Flea Market
App

Service commerce
Subscription
Omni-channel

Broader EC

Consumer spending¥300trFlea Market*References：METI’s “FY2019 Global Survey Project Concerning Integrated Domestic and External Economic Growth Strategy Building (E-Commerce market survey)”. Figures 2020 and after are ourestimates.
*MIAC “Breakdown of national tax and local tax revenue (FY2019 Budget and Local Government Finance Plan)”*THE WORLD BANK ”Household final consumption expenditure (current USD)”

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

Broader EC: Public Dues and Utility Payments
Introducing card payments for public dues and taxes since theamendment of the Local Autonomy Law in 2006

Sapporocity

Local
Local Taxes (automobile tax, light vehicle tax,
governments, fixed assets tax, etc.)
etc.
Water bill, gas bill, hometown tax
National tax credit card payment website
NHK

National broadcasting subscription fee
Credit card usage rate at the end of FY2019:16.9% (Up ＋1.0％ YoY)
Tokyo

Expansion expected to continue
Maintenance fee, cram school tuition fee
parking fee, school meal charge, etc.

Fukuokacity

Aichi pref.
Osaka pref.

*Japan Broadcasting Corporation “Business Report for FY2019”

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

14

FinTech: Money Service Business (MSB)
Financial services that only a payment processing company can offer
Services

MSB-related assets

③

Fee

④

Spread－③

Fee

Accounts receivable-trade(short term loans)④

Spread

GMO Payment
After Delivery

Pays sales proceed without waitingfor deposit from consumer

Accrued revenues

Remittanceservice

Efficient and secure refund andremittance processing

Overseas Lending/ Lending of growth capital
Transaction Lending

Business Model

Early Payment
service

Improves cash flows by bringing
forward the payment date

Accounts receivable trade (advances paid)④

SpreadB2B Factoring

Early cash conversion of accounts
receivable

Accrued revenues④

SpreadCopyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

15

FinTech: GMO Payment After Delivery
Deferred payment provided by subsidiary GMO Payment Service■GMO Payment After Delivery■Market size of deferred payment

Buyer can pay at a post office or CVS store after receiving goods
Payment term (deadline) is 2 weeks.

Robust growth of the Deferred Payment market.
Market size in FY2019 estimated at ¥755 billion.
Forecast to reach approx. ¥2 trillion in FY2023.
2,010.8（Unit: Bil. Yen)

EC site1,583.3

1,246.7②Credit check③Goods delivery & receipt⑤ Deposit

974.0①Order755.0（Est.）＋32.0％④Mailing invoice/payment slip
Convenience store
Post officeBank⑥Payment of purchase amount

User

Payment services with over 2 weeks
payment terms are also available

2013年度 2014年度 2015年度 2016年度 2017年度 2018年度 2019年度 2020年度 2021年度 2022年度 2023年度※ Source: “Online Payment/Settlement Service Providers 2020”and “Domestic Cashless Payment Market 2019” issued
by Yano Research Institute Ltd.
Figures for FY2019 are estimates and figures for 2020～2023 are forecasts.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

Cashless
Increase Ginko Pay adopters,interlink each service to create an infrastructure-like service■Ginko Pay

A smartphone app system marketed to financial institutions thatallows for immediate payments such as direct debit
The Hokuriku Bank

■ GMO Cashless Platform
Cashless solution for offline stores which offers a packageof payments methods including QR/Bar code and is scalable
to include new payment methods

The Hokkaido Bank

Sumitomo Mitsui
Banking Corporation

The Hiroshima Bank

The Bank of Fukuoka

The Kumamoto BankThe Shinwa Bank

GMO
Cashless
Platform

Japan Post Bank

銀行Pay

QR/Bar code Payment
services

OfflineBank of Yokohama■ Processing Platform

Bank of Okinawa（As of June 30, 2020)■ Cash-out (withdrawal) service
Cash withdrawal made from ticket vending machines at
Tokyu Line train stations that is based on the Ginko Pay
framework (jointly developed with Tokyu Corporation,
Bank of Yokohama and Japan Post Bank)※ not available at certain stations of Tokyu Line

A one-stop package of various payment solutions for
issuing and acquiring businesses, offered to banks,
credit card companies and general businesses.

■Cash-In Service ※NEW※ not available at certain stations of Tokyu Line.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

17

IoT: Offline Payment Market
Rollout of IoT services; capture cashless & inbound demand■Offline payment
GMO Financial Gate offers payment terminals for payments at offline stores.

■Growth factors of the offline market

Target: Unattended Market

Amendment of Installment Sales Act:
Replacement demand for IC chip equipped terminals
from conventional magnetic strips.
Tokyo Olympics and Paralympics:
Cashless payment demand to surge with the increaseof inbound tourists.
Embedded-type EMV terminal

with PIN

with PIN

with PIN※

Coffee Machine

Vending(Goods)TicketFare Adjustment(Golf, hotel)

Vending(Beverage/Food)

EV Charging Stn.
Parking Fee

Self Check-out

Coin Laundry

Capsule toy
machinewithout PIN■steraRollout of a new one-stop terminal compatible to avariety of payment methods.

CustomerfacingMerchant
facing※EMV: uniform standards for IC-chip enabled credit cards created by Visa and MasterCard.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

Global: Overseas Strategy
Expand customer coverage through strategic investments and assisting
Japanese companies’ foray into the Asian market■Investment target■Payment processing business
Asia: Top payment-related company

US: Innovation equity stakes Providing payment services toJapanese companies expanding into
Portfolios of Investments by GMO-PG and GMO Global Payment Fundthe Asian market (Z.com Payment)
GMO Payment Gateway’s overseas locations

USA

TaiwanIndia

Hong Kong
ThailandPhilippines
Vietnam
Malaysia
Singapore

＋69％
YoY

Invest in Fintech-related or
cutting-edge payment
service companies

GMO Global Payment FundJapan’s first Fintech fundtargeting payment-related
startups in Asia (AUM ¥2bn)

NearlyTripledIndonesia

GDP
Approx.＄4.5T
5-6% Growth

FY2015Initial Investment

Current Market
Value

FY2016FY2017FY2018FY2019Transaction value in Asia surging

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

3.5.1

Global: Business portfolio after MK divestiture

Business promotion with a healthy asset base; prudently expand high-margin business■ Global business footprint
Payment Processing
Business
Money Service
Business

2C2P
・ Positive profit
・ Revenue up
63.6% YoY
・ Equity value
and market
value up 2.8x

※ Company names and logos shown are
for major investees and borrowers.

India

Hong Kong
VietnamThailandApprox.
2.8x

TaiwanUS

Equity stake 100%

Philippines

A Make-Any-Day-Pay-Day Fintech
company. Maintaining soundfinance even during COVID-19.

Equity stake 30％

Singapore
Indonesia
InitialInvestment

Deferred Payment Fintech company.
Loan balance increased 3x YoY.

Current Mrkt
Value

※ Current term % growth rates are estimates. (End of May 14th)(End of June 30th)

Global business: Previous term and outlook; BS exposure (excl. Payment Enhancement Business)
Total
Payment Processing
Money Service Business(Unit: Mil. Yen)

RevenueOP
2C2P equity
method income
Profit adj. for equity
method income

Asset
EquityFY2019 FY2020 Est. % YoY

40

50

－117

FY2019FY2020 Est.

% YoY

FY2019 FY2020 Est. % YoY

＋25％

387

533

＋38％

427

583

＋37％

－111

－

194

304

＋31％

77

143

＋86％

－19

419

－

－

308

－

＋48％

2,900

4,300

＋48％

2,198

2,198

－

136
2,198

Cumulative equity
investment into 2C2P

2,198

2C2P adj. equity
return14％

Avg. loan balance

2,900

4,300

MSB adj. asset
return 7％※ Excludes MK and other companies included in Payment Enhancement Business. No occurrence of NPL and delinquencies in interest and repayment since launchof global lending business. 2C2P adjusted equity return related to 2C2P = OP adj. for equity income ÷ Equity investment.
MSB adjusted asset return = OP of global MSB ÷ Est. avg. loan balance
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

Major subsidiaries and equity-method affiliates
GMO Payment Gateway, Inc.

Consolidated subsidiary
Equity method affiliate＜ Consolidated subsidiary＞
Multi payment service（targets small-sized merchants）（Financial results of FY2019）
Revenue：¥3,483mil, Ordinary income: ¥2,350mil (J-GAAP)GMO Epsilon, Inc.

GMO Medical Reservations Technology Co., Ltd.
Payment After Delivery

GMO Payment Service, Inc.

（Financial results of FY2019）
Revenue: ¥5,048mil, Ordinary income: ¥1,212mil (J-GAAP)

Offline payment (TSE Mothers: Security code 4051)

GMO Financial Gate, Inc.

（As of July 15, 2020）60.8％ stake

Global Card System, Inc.
GMO Data, Inc.
Overseas

GMO-Z.COM PAYMENT GATEWAY PTE. LTD.

（As of July 15, 2020）GMO Financial Gate, Inc.
Sumitomo Mitsui Card Company,Ltd.

51.0％ stake
49.0％ stake（Singapore）

GMO-Z.com PAYMENT GATEWAY HONG KONG LIMITED（Headquartered in Hong Kong and a branch in Taiwan）

GMO Z COM PAYMENT GATEWAY MALAYSIA SDN.BHD.

（Malaysia）

GMO-Z.com PAYMENT GATEWAY (THAILAND) CO., LTD.

（Thailand）

Overseas

2C2P Pte. Ltd.

（As of end of Sep. 2019）33.0％ stake

Multiple payment service

SMBC GMO PAYMENT（As of end of Sep. 2019）49.0％ stake

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

Company Outline■Name

GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange First section)■Date of establishment

March 1995

■Location

FUKURAS office (Head office) SHIBUYA FUKURAS 15F, 1-2-3 Dogenzaka, Shibuya-ku, Tokyo, 150-0043 Japan■Capital stock

4,712 million yen

Humax Shibuya Building 7F, 1-14-6, Dogenzaka, Shibuya-ku, Tokyo Japan■Major shareholders

GMO Internet, Inc., Sumitomo Mitsui Banking Corporation, Issei Ainoura ,etc

■Management team

Chairman & Director
President & Chief Executive Officer
Director, Executive Vice President
Director, Executive Vice President
Senior Managing Director
Director
Director
Director
Director
External Director
External Director
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Standing Auditor
AuditorExternal Auditor
External Auditor

Masatoshi Kumagai
Issei Ainoura
Ryu Muramatsu
Satoru Isozaki
Yuichi Hisada
Masashi Yasuda
Takehito Kaneko
Hiroyuki Nishiyama
Hirofumi Yamashita
Masaya Onagi
Akio Sato
Tomoyuki Murakami
Shinichi Sugiyama
Masaru Yoshioka
Takeshi Yoshii
Takashi Mitani
Katsunari Mukai
Kazunari Taguchi
Yoshikazu Yanagishima
Kiyonobu Inayama
Shingo Ito
Yoshinori Inoguchi
Hirofumi Tozawa
Yasunori Hatada
Mariko Takeda
Junpei Kendo
Kazutaka Yoshida
Takashi Iinuma
Kazuhiko Okamoto
Yumi Hokazono■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated subsidiaries

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc.,
GMO-Z.com Payment Gateway Pte. Ltd. (Singapore), etc.

■Equity affiliates

SMBC GMO Payment, Inc., 2C2P Pte. Ltd., etc.

（As of March 31, 2020)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

GMO Financial Gate, Inc.: Overview■Name

GMO Financial Gate, Inc. (TSE Mothers, security code 4051)■Date of Establishment■Location■Capital Stock■Major Shareholders■Management

September
Humax Shibuya Building 7F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo¥1,453 Mil.
GMO Payment Gateway, Inc. and others
President and CEO Kentaro Sugiyama
Chairman
Akira Takano
Managing Director Yasuhiko Kimura (General Manager of Administration Department)
Director
Junya Tokuyama （GM of System Department）
Director
Akio Aoyama(GM of Sales Department)
Director
Masaru Yoshioka (Managing Executive Officer of GMO Payment Gateway Inc.)
External Director
Nao Shimamura
External Auditor
Takayoshi Nagasawa
External Auditor
Satoru Ozawa
AuditorTakashi Iinuma (CPA; Representative of Iinuma General Accounting Firm)■Auditor■Consolidated Subsidiaries

Deloitte Touche Tohmatsu LLC
Global Card System, Inc. (100% stake as of July 15, 2020)
GMO Data, Inc. (51.0% stake as of July 15, 2020)■Business Description

Stationary-type
payment terminal

Provides cashless payment infrastructure for credit card, debit card, e-money, etc.

Mobile payment
terminal

Embedded-type
payment terminal

POS terminal formerchants（As of July 15, 2020)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

Business outline of payment processing company (1)Problems with online credit card payment in the early days of E-Commerce
Consumer

Payment
company

Merchant①order taking

Large volume of sales slips②Enter each
into theCAT terminal③Make sales report to eachcredit card company （sales processing）

network④Post mail sales
report to each credit
card company

Credit card company

Authorization（approval number
assigned）

Problems for merchants⚫ Duplicate order entry into CAT terminal andmerchant’s system⚫ Sorting documents/transaction for each credit
card company⑤Check whether payment
has been received
Payment⚫ Insufficient check on incoming payment⚫ Human error due to manual input
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

Business outline of payment processing company (2)Payment processing service adds operational efficiency to credit card payment

Consumer

Payment
company

Payment
Processing
Company

Merchants①Order taking

Updatecard data
Real-time credit decision

Network

Sales processing

Transmit
sales data
②Check whether
payment has been
received(data collation)

Payment

Credit card company

Credit・sales

In the early days of Ecommerce, credit card payment was processed offline between
merchant and credit card company, resulting in work burden on both sides.
The establishment of payment processing companies eliminated this burden for both parties.

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

25