April 18, 2022

Company Name:

GMO Internet, Inc.
(TSE Prime Market, Code: 9449)

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, Founder, Chairman and Group CEO

Contact:

Masashi Yasuda, Executive Vice President and Group CFO,
Deputy to Group CEO, Head of Group Management Division

Telephone:+81 3 5456 2555

URL:

https://www.gmo.jp/en

Notice Regarding Change in Equity Method Affiliate and Gain on Sale from Transferof Shares
GMO Internet, Inc. (the Company) hereby announces that its consolidated subsidiary, GMO Payment
Gateway, Inc. (TSE Prime Market: 3769; hereinafter, "GMO-PG") has resolved at the Board meeting held
today to transfer all of the shares of its equity method affiliate 2C2P Pte. Ltd. (2C2P) owned by thesubsidiary GMO-Z.COM PAYMENT GATEWAY PTE. LTD. (GMO-Z PG SG).
In addition, the transfer of shares will result in the exclusion of 2C2P as an equity method affiliate.
1.

Reasons for the Transfer of Shares
In order to expand the payment processing business in the Asian region, GMO-PG, which develops
comprehensive payment-related services and financial-related services in the Internet Infrastructure
segment, acquired shares of 2C2P, a company providing payment processing business mainly inThailand, through the consolidated subsidiary GMO-Z PG SG and made 2C2P an equity method
affiliate in August 2016. 2C2P has steadily improved its business performance in Southeast Asia, andGMO-PG has recently received an offer from a global payment processing company based in China toacquire the shares owned in 2C2P.
GMO-PG has agreed to the sale and executed an agreement for the transfer of shares based on thedecision that the transfer would be beneficial for the future growth of GMO-PG as well as 2C2P and by
taking a comprehensive view that the price of the share transfer is valid and reasonable, and that theacquiror’s policy is to further enhance 2C2P by making it a subsidiary. The transfer of shares will becompleted once all the preconditions and terms are fulfilled (estimated timing of closure is June 2022).
GMO-PG will continue its policy to expand the Payment Processing Business and the Money ServiceBusiness overseas, particularly in Southeast Asia. The funds received from the share transfer willstrengthen the financial soundness of GMO-PG as well as be used for growth investments including
overseas lending operations in order to further our efforts to achieve sustainable growth and enhance
the corporate value.

2.

Name of equity method affiliate to be transfered
2C2P Pte. Ltd.

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3.

Schedule of share transfer
June 2022 (planned)

4.

Name of the counterparty in the share transfer
ADVANCED NEW TECHNOLOGIES (SINGAPORE) HOLDING PTE.LTD.

5.
(1)
(2)
(3)

Number of shares to be transferred and the percentage of shareholding before and after the transferShares owned before
the change
Number of shares to betransferred

3,292,272(ownership of voting rights:29.34％)

shares3,292,272
sharesShares owned after the0 shares (ownership of voting rights: 0％)transfer(Note): The amount of the transfer price is not disclosed due to non-diclosure obligations agreed tobetween the parties. Note that the transfer price will not be identical to the amount calculated by
dividing the gain on sale from share transfer with the ownership proportion of voting rights.
6.

OutlookDue to the transfer of shares, the fiscal year ending December 2022 is estimated to record a gain on
sales of investments in securities of ¥17.0bn. Part of the transfer value is stored in an escrow accountas set forth in the share transfer agreement, and the Company expects to post a gain on sale, etc. of
approximately ¥1.0bn by the fiscal year ending December 2024, when conditions are met. Note thatthe transfer price, etc. are estimates as of this writing and the actual amounts may vary. The foreignexchange rate assumed is 1 USD = 122.41JPY (as of March 31, 2022). The difference in gain on sales
between GMO-PG's press release "Notice Regarding Change in Equity Method Affiliate, Gain on Sale
from Transfer of Shares, and Revision of Financial Earnings Forecast" published today and the current
press release is because of different investment book value due to the difference in accounting
standards between GMO-PG and the Company.
We are closely assessing the impact of this share transfer on the consolidated business performanceof the Company for the year ending December 31, 2022. The Company will promptly disclose any
further important information which has come to light.

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