Integrated Report
29th Fiscal Year
2021.10.1–2022.9.30

Payment With Innovation
Management Philosophy

We pursue both spiritual and material
prosperity by contributing to theadvancement and progress of society.
We contribute to the progress of our society
with a strong intention to create and develop markets,with transparency in expanding businesses.
We define our partners as a group of people whom we can trust.
This group includes our employees, clients and business partners.
Our employees possess richness of spirit,
advanced problem-solving abilities and a high level of professionalism.
They pursue richness of spirit through exchanging values with our clients.

GlobalLeadership

Business
Model

OwnershipModel

A company that
leads Japan with
its high aspirations
and presents
new value
to the world.

A company withoutstanding potential and a
30-year growth trajectorythat is highly acclaimed byprofessional global
investors.

A company that canachieve phenomenal
growth through delegationand instilling a sense ofownership to younger
partners who seek newchallenges.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

01

Preface on GMO Payment Gateway 29th Integrated Report
The 29th Integrated Report aims to be the source for our stakeholders toContents

deepen their understanding and as a venue for further dialogue by explaining
both financial and non-financial information on the various initiatives to raise theCompany’s corporate value.
This report contains concrete strategies to achieve the target of ¥25.0 bn by
Ryu Muramatsu
Director, Executive Vice President
General Manager of Corporate
Value Creation Strategy Division

The Value Creation Story

Foundations of Value Creation

2025 by expanding our businesses within the enormous addressable market.
In addition, we have strived to clarify the focus areas both qualitatively andquantitatively, as well as to present the voices of our partners, external directors
and the management of our value creation as the Company endeavors toachieve its targets. Finally, the Company will continue to provide disclosure of
relevant information to our stakeholders.

Editorial Policy
The 29th Integrated Report is edited to coherently present ourTrade and Industry’s “Guidance for Collaborative Value Creation”.

value creation process, by comprehensively describing both finan-

Lastly, please refer to the Sustainability section of the Company’s

cial information such as financial results, business overview andwebsite for further details on ESG related information.

management strategy, as well as non-financial information related

https://www.gmo-pg.com/en/corp/sustainability/04

Message from the President

34	Roundtable Meeting of External Directors

08

Track Record of Value Creation

38

Sustainability Management

10

Value Creation Model

40

Environment

12

Our Four Strengths

42

Human Resource Strategy

14

Major Business/Business Portfolio

44

Voices of Our Partners

16

Services and Focus Areas

46

Governance18

At a Glance48	Board of Directors and Management

20

Business Environment

Committee Members

to the “invisible” assets of Environment, Society and Governance(ESG) that are the bedrock of sustainable growth. We hope thisCautionary note on forward-looking statements

report further deepens the understanding of shareholders, inves-

Information contained in this report that are not historical facts

tors and stakeholders of how the Company is working to realize a

include views and decisions based on information available at thesustainable society by creating long-term corporate value. The

time of writing and represent future forecasts and plans. Suchcompilation of this report references the International Integrated

forward-looking statements contain certain risks and uncertainties

Reporting Framework recommended by the Internationalthat may result in actual performance or results to differ from

Integrated Reporting Council (IIRC) and the Ministry of Economy,statements made in the report.

Disclosure

Financial Information
Company website: Information for Investors
https://www.gmo-pg.com/en/corp/ir/

Integrated Report
PDF version
https://www.gmo-pg.com/en/corp/
newsroom/ir/integrated-report/t/

Data

Business Strategy

22

Overall Strategy		

24 GMO Payment Gateway		

30 GMO Epsilon		

31 GMO Payment Service		

32 GMO Financial Gate

50	Consolidated Financial Highlights
51	Consolidated Financial Statements
54

Company Information

Non-financial Information
Company website: Sustainability
https://www.gmo-pg.com/en/corp/sustainability/

Abbreviations used in the reportCompany: Refers to GMO-PG and its consolidated group of companies, comprising of the three companies listed below and equity-method affiliates
GMO-PG: GMO Payment Gateway, Inc; GMO-EP: GMO Epsilon, Inc. GMO-PS: GMO Payment Service, Inc. and GMO-FG: GMO Financial Gate, Inc.
Partners: The Company refers to employees as “partners” to express respect towards them.

02

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

03

The Value Creation Story

Messagefrom the President

Supporting Social Innovation Beginningwith Payment
Creating value for our stakeholders by resolvingsocial challenges while achieving sustainable growthby leveraging our organizational strength toovercome changes in the business environment
Issei Ainoura

President & Chief Executive Officer

and to major domestic and overseas companies.

Achieved 17 consecutive terms ofr­evenue and profit increase

In addition, while duly responding to heightened
credit risk, we worked to expand lending to overseas companies and the Buy Now Pay Later(BNPL) business. Furthermore, new services were04

GMO Payment Gateway, Inc.

We faced significant changes in the external busi-

created to accelerate growth rates from FY2023

ness environment during the fiscal year ending

onwards. As a result, we have achieved 17 consec-

September 2022 (FY2022). As economic activities

utive years of higher revenues and profits. Gains

gradually normalized with the lifting of COVID-19

from the transfer of shares of around ¥16.0 billion

prevention measures, cashless penetration pro-were recorded from the full divestment of shares ofgressed and online shopping is now an accepted

2C2P Pte. Ltd., a former equity-method affiliate pro-part of everyday life. On the other hand, uncertainty

viding payment processing services primarily inlingers over the economic outlook due to rapid

Thailand. This further strengthened the Company’schanges in the Japanese yen and inflation affecting

capital base in view of the uncertain outlook. Due toprivate consumption. Despite this difficult business

this, and in recognition of the significant benefits

environment, the Payment Processing Businessfrom 10 years of global expansion, a special divi-

performed strongly bringing the Company’s trans-

dend will be distributed. I would like to express myaction value to over ¥11 trillion, thanks to services

deepest gratitude to our stakeholders for their con-that provide payment systems to our focus markets

tinued support.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

05

The Value Creation Story

Message from the President

Advances in EC and Cashless Payment
EC Penetration Rates in Japan, Europe and US(Unit: %)

31.0

30

20

Japan14.6

0beyond the payment function by addressing

Sustainable growth from expansionof business domains

offered to the diverse client base garnered from thedeploying these applications within each sector/

100

less payment market continues to expand from theute to client’s growth will be launched, such as abuildout of Internet infrastructure and government

new BNPL service that offers long-duration install-policies, providing the tailwind that the Company

ment payment and offline BNPL. Also, looking backleverages to expand its businesses. The Company

on our history, M&A has generated very significant

seeks to exceed the market’s growth rate and has

benefits as a means of expanding the business

continuously achieved a 25% operating profit growthdomain. More concretely, entry into small-scaleby pioneering into new business domains as well as

business operator market from 2005 and the offline

further expanding market share. In particular, themarket from 2010 was the result of acquiring

Company has supported the Digital Transformation

GMO-EP and GMO-FG, respectively. As such, we(DX) of client’s business operations by offering

will aggressively pursue M&A as an effective

applications that resolve their challenges and going

method for creating new businesses.

11

12

13

14

15

16

17

18

19

20

21 (CY)Japan’s Cashless Payment Market/Cashless Penetration in Japan (Ratio to Private Final Consumption)120

industry. In the FinTech field, services that contrib-

10(Unit: ¥ tr)payment service. We intend to expand further byJapan’s E-Commerce (EC) market and the cash-

People determine the Company:
fostering talent to strengthen
the organization(Unit: %)

32.5

35
30
25

80

20
60
15
40

10

20
0

5

14

15

16

17

18

19

20

21 (CY)

0

Credit card
QR codeDebit card

E-moneyCashless penetration* Cabinet Office “System of National Accounts”
Japan Consumer Credit Association’s Credit Card
Statistics
Bank of Japan’s “Payment and Settlement Statistics”
Payments Japan Association’s Code Payment Statistics

innovation in payment and financial technology toPromoting sustainability
management

resolve societal challenges, the Company can
expand its business opportunities as well as contribute to society. Communicating such initiatives isresulting in a gradual improvement in the evaluation

constraints on on-the-job-training (OJT) and in-person training under COVID-19 restrictions. It is cru-

The Company operates businesses that contributeby external parties on sustainability management.

cially important to build a resilient organization thatto decarbonization and reduction of environmental

The Company will continue to strive to improve cor-

can withstand changes in the business environment.

burden through DX support of economic activities,

porate value by expanding our businesses throughTo this end, all partners must foster their new recruits

such as EC migration and paperless adoption in

supporting the digitalization of our client’s services

Having welcomed over 100 new colleagues on- the source of our sustainable growth. This is acommercial transactions. In addition, the Company

and, at the same time, contributing to the advance-board, we are steadfastly strengthening the organi-medium-term priority issue to which much of mypursues initiatives to realize financial inclusion byment and realization of a sustainable society. We

zational capability. On the other hand, the growth oftime is allocated.

offering better financial access and diverse pay-would like to express our sincerest gratitude for thement methods. By supporting the creation ofcontinued support of our stakeholders.

the younger generation has lagged due to06

broader areas, including invoices and remittances

09

UK

* Ministry of Economy, Trade and Industry’s “FY2020 Global
Survey Concerning Integrated Domestic and External
Economic Growth Strategy Business (E-Commercemarket survey)”
U.S. Bureau of the Census, “The 2nd Quarter 2022 Retail
E-Commerce Sales Report”
Office for National Statistics, “Retail Sales Index internet
sales, October 2022”

8.8

10

USA

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

07

The Value Creation Story¥100.0 bn

Track Record of Value Creation(Target)1,000¥25.0 bn
2021

The Company started out as a dedi-

Globalcated credit card payment processing

2012

company and expanded to the cur-2018

Overseas lending

Offline/IoT¥25.0 billion in 2025 and ¥100.0 billion

2010

Launched offline payment

250

Expand globallyrent five focus areas we are forging
into. The Company aims to achieve(Target)Impact finance to FinTech
companies engaged infinancial inclusion

2019

GMO Cashless Platform2019

 o-developed ‘stera’ the next generation payment platform
C
together with Sumitomo Mitsui Card Company Co. Ltd.
and Visa Worldwide Japan Co. Ltd.

200

Entry into the Unattended Market (UM)by 2030 in operating profit and to

BaaS Banking as a Service An organization holding a banking license that offers financial services through an API

continuously create new values.

2017

Launches Ginko Pay Base system

2017

GMO-PG Processing Platform

2019

Enterprise-version Pay
2021

Commence collaboration with JFR Card Co. Ltd.

2021

Instant Salary byGMO

150

2018 Rollout of B2B finance-related service
2015

Operating Profit

2014(Unit: ¥ bn)

Remittance service

Transaction Lending
2022

FinTech2007

Exclusive credit card payment
processing service

2005/92006/9Condo Pay byGMO, GMO B2B Pay On Credit

2020

LaunchLaunch of SMS Choice Of Payment to
TEPCO Energy Partner, Incorporated

50

Taxes and utility payment service
PG Multi-Payment service

2008

2007/920202015 
Expand functionality of Early Payment service

Shift From Merchandise to Non-merchandise:
Expand to services, digital contents and subscription services

E-Commerce

1995

GMO Payment After Delivery

Early Payment service

2008

1995

2013

100

 igned Basic Agreement to provide BNPL serviceS
with Sumitomo Mitsui Card Company Co. Ltd.

2008/92009/92010/92022

2011/92012/92013/92014/92015/92016/92017/92018/92019/92020/92021/9fincode byGMO

2022/92025/92030/90(Fiscal Year)

Support transition to decarbonization

Value Proposition to Society and Our Responsibility

DX Support

Support EC/Online migration
Major
SocialEvents

1997

2008

2011

2014

2019

2020

2022

Consumption

Lehman ShockGreat East Japan

Consumption

Consumption

COVID-19 pandemic

Easing of border restriction

Earthquaketax 5%→8%

tax 8%→10%

tax 3%→5%related to infection control

History
1995 Established Card Call Service, predecessor of the Company

2010 GMO Financial Gate joins the Group2012 Established Asia regional headquarters in Singapore

2000 Mr. Issei Ainoura appointed President
2004 Joins GMO Internet Group, Inc.; integrated into Payment One
2008 Listing transferred to TSE First Section

GMO Payment Gateway, Inc.

2020 GMO Financial Gate lists on TSE Mothers market (currently the Growth Market)

2013 Established GMO Payment Service

2005 Company name changed to GMO Payment Gateway. Listing on TSE Mothers market. GMO Epsilon joins the Group.

08

2018 GMO Medical Reservations Technology joins the Group. Established U.S. office.

2015 Established joint venture company SMBC GMO Payment, Inc.
2016 Southeast Asia’s major payment company 2C2P Pte. Ltd. becomes an equity method affiliate

2021 BUFFORT Inc. joins the Group
2022 
Merger by absorption of BUFFORT Inc. Listing reclassified to TSE Prime Market.
Transfer of all the shares of 2C2P Pte. Ltd.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

09

The Value Creation Story

Value Creation Model
Value Creation

Management Philosophy

We pursue both spiritual and material
prosperity by contributing to the advancement
and progress of society
Business
Environment
P.20–21

Operating Stores

142,396stores*
142,396

As of end-September 2022

Stakeholders
Consolidated Transaction Volume

Strengths
P.12–13

Approx. 4.86 bn
48.6transactions

Focus Areas

Business ModelFY2022

P.16–17

P.14–15

Consumers

Sales andMarketingCashlessadoption nline (EC)O
migration
EC hange inCconsumption
behavior andpurchasing
methods
DX
DX

AIIoT

 dvances in AI
A
(IoT)

COVID-19
COVID-19
pandemic
Population
declineLeverage the organizational and proposal
capabilities in each specialized industry teamto create innovation
together with our clients

SystemDevelopment
In-house high quality
system development andoperations, enablingtransformation of theclient’s business
operations

Consolidated Transaction Value
DigitalContent

Education

Public Utility

Globalization

Publishing

Manufacturing

ApparelApprox. ¥11.3 tr

Finance

Water Utility

EC

Taxes

FY2022Merchants
Provide payment infrastructure – an indispensable part of commercial transactions –various industries

Increase in payment processing

FY2022

Payment
Processing
Business

Payment
processing

Payment­providers/Business
partners

BaaS

Money Service
Business
Payment
Enhancement
Business

Operating Profit¥16.2 bn

FinTechA continuously expanding ecosystem from the feedback loop
between value-added services and the mainline business

Revenue and profit increase

17 consecutive terms
since listing

Offline/IoT

Partners(Employees)

Client’s
growthMain focus
Value-added services
that contribute to themainline business

Mainline businessMacroeconomic
changeClimatechange

Retail/Distribution

Client Support
Provide outstanding
client-focused support
by in-housing the client
support function

EnergyHealthcare& Welfare

GlobalLocal
government

Sustainability Management
Investment
Create new businesses
and corporate value by
supporting exceptional
start-up companies

P.34–49

DigitalInclusion

Financial
Inclusion

Contribution
to theEnvironment

Community
and society
Contribution
to Human
CapitalPractice ofSoundManagement* 455,958* The number of operating stores would be455,958 stores if adjusted for a particularcase for the same period.

10

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

11

The Value Creation Story

Our FourStrengths

Enhance our Key Four Strengths - the Source ofCompetitive Differentiation - to Achieve 25%
Operating Profit Growth
Significant human resources are deployed into industry-specific sales

Sales andMarketing
Capability

ClientSupportCapability

structures, making it possible to offer proposals that capture the trends and

The Company tirelessly works to improve service offerings that help
resolve client’s issues by in-housing client support. The Company
believes that the collaboration between sales, system development andclient support is crucial to provide an integrated value proposition that
contributes to the client’s growth. As a result, the Company’s customer
support has been awarded the highest evaluation by external organizations. In addition, enhancing our strengths by organically involving otherissues in each industry. In addition, by accompanying our client’s (mer-departments such as Accounting/Finance, Legal, HR and General Affairs

chants) journey from service launch to post-sales support, the Company

enables us to secure stability in expanding business.

supports clients’ efforts to enhance their growth prospects. Additionally, byleveraging client’s accord and trust, the Company strives to build a win-win

Diagram of Support Structure

relationship by developing strategic initiatives such as new payment platforms together with the leading companies of each industry.

DigitalContent

Education

PublicUtility

Leverage the organizational
and proposal capabilities ineach specialized industry
team to create innovation
together with clients

EnergyPublishing

Retail/Manufacturing
Distribution

Healthcare& Welfare

ApparelSales Personnel
Approx.

40 persons(As of end-September 2011)

Approx.

Water
Utility

ClientFinance

Taxes

Provide outstanding
client-focused support byin-housing client support
function

350 persons

tion of shares. 2C2P Pte. Ltd. has steadily expanded its business andearnings primarily in Southeast Asia. After receiving a proposal from a

projects from the development stage to help respond to the client’s

Chinese company to acquire the shares and, based on the decision that

advancing needs to transform their business operations.

In-house high quality systemdevelopment and operations,enabling transformations of
the client’s business
operations

the offer price was reasonable, the Company transferred all the sharesof 2C2P Pte. Ltd. in June 2022 and recorded a gain on sale of invest-

450 persons

ments of around ¥16.0 billion.
(Details available here: https://www.gmo-pg.com/en/corp/newsroom/
pdf/20220405_gmo_pg_ir_kaiji_en.pdf)(As of end-September 2022)*

2014 
Commenced buildout, operation andmaintenance of the B2B dedicatedpayment system Visa Business Pay
Development of new smartphone-based
payment service app

2017 
Launch of GMO-PG Processing Platform
to financial institutions

2016 
Joint development of Ginko Pay together
with The Bank of Yokohama, Ltd.

2020 
Launch of SMS Choice of Payment to
TEPCO Energy Partner, Co. Ltd.

primarily in the ASEAN region by investing and fostering a relationshipmade this company an equity method affiliate through additional acquisi-

and system functionality. In recent years, the Company has undertaken

Major system development projects

Company is supporting the growth of the No. 1 payment service provider

ment processing company focused on Thailand in January 2013, andcontinue to provide a high level of quality, capacity, availability, security

Approx.

ation of existing and new services at the Company. In addition, thebusiness. For example, the Company invested in 2C2P Pte. Ltd., a pay-market and technology trends and respond to market’s needs in order to30 persons

only support the growth of the investee, but also the evolution and cre-as a partner, with the eventual aim of establishing our overseas payment

which carries out development, strives to preemptively grasp the latest(As of end-September 2011)

Contribute to client’s growth from the
proposal stage to operational stage

technologies and concepts to transform society. These investments notment and the operation of high-quality systems. The Systems Division,

Approx.

Development

ance with excellent global FinTech startups that are introducing new(As of end-September 2022)

Investment
Capability

Number of Engineers

SupportThe Company forges strategic equity investment and/or business alli-

The Company’s sustainable growth is supported by in-housing develop-

SystemDevelopment
CapabilityAwarded 5-star certification
twice consecutively by thecertification body, HDI, thefirst ever in the payment
processing industry

Sales

Clients Across a diverse Range of Industries/Sectors

AwardsCreate new business andcorporate value by supporting
exceptional start-up
companies

Overseas offices and investees
GMO-PG overseas officesInvestees of GMO-PG and GMO Global
Payment Fund*

Hong Kong
India

ThailandUSA

TaiwanVietnam
Malaysia

Indonesia* Venture capital (VC) funds jointly operated by the Company as a
General Partner (GP) .

GMO Payment Gateway, Inc.

Approx.
20 times

Singapore* The number includes employees of the Company and external collaborators.

12

Investments by GMO
Global Payment Fund

Initial Market Value
investment as of endamount September
2022

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

13

The Value Creation Story

Major Businesses

Business Portfolio

The Company provides value added services (Money Service Business and Payment Enhancement

Diverse businesses across a wide domain centered on payment

Business) to merchants using the payment processing services, all of which contribute to expand
the merchant’s revenue. This establishes a feedback loop of increasing transactions at the merchant

GMO Payment Gateway consolidated group of subsidiaries

which complements the Company’s core business.

Payment Processing Business

Omni-channel* strategy

Provides a comprehensive payment system to merchants toenable the consumer to select their method of payment suchas credit card and BNPL.

Scheme of Payment Processing Service

Expand payment methods
Sharing of client base

Coverage of a diverse client baseMerchant

Consumer

Payment Processing Company

Online payment: 142,396 stores

Online payment

Offline payment: 196,608 terminals(method of payment)
Credit card companies(over 40 companies)

CVS payment

As of end-September 2022.

Order received

Payment Provider

Credit assessment/
revenue booked

Network

Revise credit card
information

Revenueprocessing

Offline payment

Account transfer

Sharing of corporate culture and management philosophy;

Carrier billing

resource allocation across the entire group of consolidated subsidiaries

Bank transfer

Name of company

E-money

Transmission of­revenue data

BNPL

Payment Processing Business

Major business

OnlineQR codeConfirmation of proceeds data
(data matching)ID-based payment

Deposit of proceeds

Local government, large to
mid-size companies
Non-merchandise,merchandise

Major clients

Multi-currency

Invoice/billing of purchase amount

OfflineSME
Primarily merchandiseOnline Payment: Sales Structure by Merchant Size

Money Service Business and Payment Enhancement Businessthat contribute to the merchant’s growth and diversification of

Large andmid-sized
merchants

payment methods.

SMEList of Major MSB Services and Payment Enhancement Services

Servicecontent

14

Payment of proceeds
before the deposit by
the purchaser

GMO Payment Gateway, Inc.

Remittance service

Enables efficient andsecure remittances andrefund processing

OnlineOffline store, unattended
equipment providers
Non-merchandise,merchandise

EC operators, consumers
Primarily merchandise

Scheme of GMO Payment After Delivery

Local government
Some large
enterprises

Provides payment-enhancing services and financial services

 MO Payment AfterG
Delivery/GMO B2B
Pay on Credit

BNPL businessPre-paid

Debit the proceed amount

Name ofservice* Integration of offline and online

 verseas lending/O
Transaction lending arly Payment
E
serviceMarketing
Support services

Lending of growth funds

Improve cashflow bybringing forward thedeposit date

Online marketing management and analytics
to support revenue
growth at the merchant

Number of stores

EC website

Shipment anddelivery of productCreditassessment

Payment of
invoiceOrderplacement

Post mailing of invoice(payment slip)

Convenience store,
post office, bank

Users

Payment of invoice

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

15

The Value Creation Story

Services and Focus Areas

The Company’s Services are Used
Throughout the Consumers’ Daily Life
Subscription
Payment forhome deliveryof drinking water,
fixed charges forweb services, etc.

Delivery
Payment for fooddelivery toresidences andoffices

Self-checkout
Unmannedpayment atoffline stores

Digital content
Payments forcontent services
such as streaming
video, e-books,
games, etc.
Taxes andutility bills
Tax payment,
regular payment
for electricity andwater utility bills

Focus areas

EC

FinTechEC
Broader EC
Support DX at companies by providing

Cashless
Non-cashpayment atoffline stores

Usage fees forvarious services
Payment for travel
tickets, car rental

Services embedded

Services usedin everyday life

during outings

FinTechFinTechProvide payment services that lever-payment solutions to diverse indus-

ages financial technology to contributetries, ranging from non-merchandise

to the merchant’s revenue growth as

sectors such as travel, digital content,

well as value-added services thattaxes and utility bills, to merchandise

support cost reduction efforts andsectors such as daily goods.

improvement of cashflow.

BaaS*

Offline/IoT

GlobalBaaS

Offline/IoT

GlobalProvide base systems and expertise

Provide next generation payment

Acquire the latest expertise in global

at a lower cost and speedy completion

platform, embedded solutions andmarkets and benefit from the invest-

to financial institutions and businesspayment center function to respondee’s growth through investments andoperators to launch their proprietary

to the growing needs for labor-saving,lending to leading FinTech companies

financial or payment service.

unmanned operations and cashless

in India and the Pacific region, regions* Banking as a Service: An organization holding
a banking license that offers financial services
through an API.

adoption at offline stores.

that are at the confluence of economic
growth and DX acceleration.

BaaS

Offline/IoT
Global16

GMO Payment Gateway, Inc.

Shopping on smartphone
A convenient and diverse choice of
payment methods available anywhere,anytime.

Payment using GMO Payment After
Delivery
Pay after receiving goods without using
a credit card

Base system of Ginko Pay
Payment using smartphone-based appsthat enable instant debit from a bankaccount.

Tap ‘n’ pay using an all-in-one payment terminal

Establish offices in North America,
Southeast Asia and India

One payment terminal that covers all
types of payment methods

Absorb expertise from global FinTech
companies through investments and loans

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

17

The Value Creation Story

At a Glance
The Company deploys businesses across diverse domains through our four major subsidiaries and targets the following
five focus areas to expand our business.

EC

FinTechGMO Payment After Delivery

PG Multi-Payment Service
Pay-as-you-go (merchandise, digital content, etc.)
Recurring billing (taxes, utility fees, etc.)

GMO B2B Pay on Credit

Online advertising service
SSL Service

Delivery service

FinTechInstant Salary byGMO

The payment processing service focuses on online billingGMO B2B Early Payment

and recurring billing provided to large and mid-sized com-

Early Payment service

panies and local governments, as well as expanding BaaS
support to financial institutions and business operators.
In FY2022, the easing of COVID-19 travel restriction and

Ginko Pay base system

digital content, public utilities and taxes. In the BaaS

underway thanks to initiatives to strengthen alliances with

tions, and GMO B2B Pay on Credit for B2B transactions.

partners. Scheduled to launch a new BNPL service jointly

In FY2022, the easing of COVID-19 travel restriction andwith Sumitomo Mitsui Card Company Co. Ltd., GMO-PG

advances in preventative measures caused nestingand GMO-PS from Spring 2023.

demand to pull back. However, a recovery trend isOffline/IoT

Offline/IoT

Offline payment
Manned payment
Unmanned (IoT) payment

GMO Cashless Platform

internet usage during the nesting consumption period
increased online payments in such areas as daily goods,

Focusses on BNPL payment service for B2C EC transac-

GMO-PG Processing Platformticket payments recover from increased travel, whilefrom the cycling through of nesting demand. In addition,

Transaction lending

BaaS

advances in preventative measures helped the travel anddepressing the growth rates at some merchandise sectors

Remittance service

GlobalZ.com Payment (overseas payment service)support domain, GMO-PG Processing Platform service

Overseas lending

expanded and contributed to accelerating growth bycapturing DX needs and cashless payments.

Focuses on payment processing service in the offline

increased thanks to the strong sales of stera terminals,

domain. FY2022 saw a recovery in transaction volume

the next generation payment platform. In addition, steady

Epsilon payment service

and value at merchants adversely affected during the

progress was made in winning projects in the focus areas

fincode byGMO

COVID-19 pandemic. Given the backdrop of expandingof the Unattended Market (UM), such as automaticoffline cashless market, transaction volume and value

payment machines and ticket machines.

EC

Medical Kakumei byGMO
Delivery service
FinTechCycle byGMO
Focusses mainly on payment processing services foronline billing and recurring billing for small and mediumsized enterprises (SMEs). In FY2022, the easing of
COVID-19 travel restriction and advances in countermea-

GMO B2B Early Payment
Transaction lending

Major Subsidiaries: Revenue Trend*
GMO-PG¥50.2 bn

GMO-EP
GMO-PS
GMO-FG

20%

Remittance service
Early Payment service¥21.7 bnsures caused nesting demand to pull back and decelerate
revenue growth. Initiatives to return to growth are underway
by reaccelerating the pace of new merchant acquisitions, by¥4.7 bn

15%

55%

10%

expanding into non-merchandise sectors and deploying
partner strategies. In addition, fincode byGMO, an online
payment infrastructure for startup firms, was launched in
May 2022.

18

GMO Payment Gateway, Inc.

FY2012FY2017

FY2022(Fiscal Year)*1 Presents the consolidated revenue figures for each account term
*2 G
 MO Financial Gate, Inc. became a consolidated subsidiary in September 2016 from an equity method affiliate (current a consolidated subsidiary).

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

19

The Value Creation Story

Business Environment

Support the Transformation of
Clients as They Tackle Societal
Changes and Challenges

Cross-industry

Application
InfrastructureSMS Choice Of Payment enables
paperless adoption for invoicing operations

The Company aims for sustainable growth by converting challenges into opportunities given the dynamicchanges in the business environment and the diverse challenges facing society. The Company provides application infrastructure to support the necessary reforms at clients tackling challenges and undergoing transforma-

Electric powerand gasPaperless payment

Broadcast andtelecommunication

Self-checkout

Healthcare
and welfare

Next generation
payment, automatedpayment

Digital content

Onlinemedical reservationand payment

Labor-saving store operations bydigitalizing payment and accounting
such as self-checkout countertion. Leveraging the diverse client base and solutions will enable the Company to capture the huge
medium-to-long term growth opportunities.

Opportunities and Initiatives

Realize smart cities by implementing
biometric authentication
Promote telemedicine by migration toSocial Challenges

Climate change

Societal Changes to 2030

Decarbonization

Pandemic
Population decline/
Aging society/
Rural depopulation/
Labor shortage
Inflation/
Economic fluctuation

Resource conservation/
Renewable energy
Real x Digital
integration

Borderless-ness/
Inbound tourism

Smart city/Regional
revitalization

Capture inbound demand by implementing
cashless payment at hotels and tourist
facilities
Support decarbonization by driving DX
and cashless

TravelResource depletion

online reservation and payment

Cross-border
payment

Revitalizing communities by promoting
cashless payment for public transport andlocal government

GlobalCashlessReform commercial transactions to suitthe modern society by the digital visualizationof legacy commercial practices andLocal government/
Transportation

BNPL

Real estate

FinTechloans/support

transactions
Respond to diversifying consumption bydigitalizing payment for online EC anddelivery services
Extend impact finance to FinTech
companies that are promoting financial

Disparity/Poverty

Financial inclusion

Legacy values andcustoms (commercial)

Value diversification/
Individualism

Finance

Salary prepayment

inclusionEnhance recruitment to address labor

Retail/Distribution

Utilization of
payment data

shortage by offering Instant Salary byGMO
Personalized marketing by utilizing
payment data

20

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

21

Business Strategy

Overall Strategy

GMO-FG Growth Model Based on Expanding
Business Domains
The Company achieves sustainable growth by continuously
expanding its business domains and forging new businesswithin the vast payment domain. The Company initiallyIn the Footsteps of GMO-PG:
Subsidiaries are Expanding Their
Business Domains

Unmanned (IoT) payment, public
institutions, value-added services

started off as pure-play credit card payment processor andlater expanded to become a multi-payment processing
company by onboarding various payment methods while
GMO-PG

further expanding into payment processing for taxes andutility charges. In addition, new domains such as BNPL and
offline payment were addressed through consolidated
subsidiaries. In recent years, the Company is accelerating

P.32-33

its global business and DX support for payment by leveraging its expertise in payment and FinTech and aims to continuously achieve 25% operating profit growth by expanding
the business domains at the parent company and each of

Offline payment

the consolidated subsidiaries.

GMO-EP

GMO-PSDX support,
BaaS support, Global

Non-merchandise EC,
B2B-EC

GMO-PG

P.30

Long duration installment/
Offline, B2B-EC

P.31

MSB
SME sector

BNPL

GMO-PG

Revenue by Business Domain
Multi-payment, non-merchandise EC(Unit: ¥ bn)

2018

50

40

P.24–29

Credit card payment

Sustain high growthby entering into
new domains through M&A
and other means
22

GMO Payment Gateway, Inc.

Offline/IoT

FinTechBecomes a consolidated subsidiary
2015
Full scale launch of MSB(GMO-PG)

2013

20

BaaS

Joins the Group2017
Commenced BaaS
support service (GMO-PG)

2016

30

Growth domains

GlobalBNPL

SME sector

Establishment
2012
Established global office

2005

10

EC

Joins the Group

0
05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

(Fiscal Year)* Figures are before eliminations and adjustments.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

23

Business Strategy

GMO Payment Gateway

Business Model

VisionThe Company’s revenues (commissions) consist of:

Be the innovation
partner that contributes
to the growth and successof domestic and overseas
clients by supporting theirDX-centered online payment

 onsolidated Revenue Breakdown by
C
Business Model•O ne-time revenue received at service installation (initial
revenue)•P eriodic and fixed revenue (stock revenue)(Unit: ¥ mil)•R evenue received according to transaction volume (fee50,000revenue)

40,000•R evenue received as a percentage of transaction value(spread revenue)

30,000

These revenue streams form the four business models. In
particular, spread revenue is received from merchants under

20,000

the Representative Contract, where the Company carries out
the merchant acquisition. The spread revenue is the growth

10,000driver and accounts for 40% of consolidated revenue.
The Company has established a ‘feedback model’, where018merchants that use the core payment processing (in the

Tatsuya Koide

Payment Processing Business) are also offered finance-

Chief Managing Executive Officer
General Manager of Innovation Partners Division

19

Initial

20

Stock

21

Fee

22 (Fiscal Year)

Spreadrelated and payment enhancement services that contribute to
the merchant's revenues, thereby expanding the transaction
volume and value of merchants the Company transacts with.

Implementing a High Value/High Volume Strategy

Scaling Up Merchant Size and Diversifying Merchant BaseAs the transaction value exceeded ¥11 trillion by scaling up

cycling through of COVID-19 windfall demand in merchandisebusinesses, the Company formulated sales strategies andEC, and inflation and interest rate hikes depressing private

KPIs to build a sustainable structure to achieve high growth

consumption. However, it is in such challenging times that weand efficient sales activities at the Innovation Partners

need to stand alongside the client as they tackle challenges

Division, the profit center, in order to pursue both the quantity

as well as strengthen our organization and sales capability inand quality of profits as we head towards the ¥25.0 billion

order to continuously be the partner of choice to our clients.

operating profit target. The sales strategy for large enterproblem-solving sales activities under the industry-specificcations that act as solutions to each industry’s issues, we
intend to expand adoption within the industry starting with theindustry leader as well as drive adoption in adjacent industries by expanding the line-up of applications. Through this,
we aim to achieve 40% of revenue generated from large
enterprises by 2025. Under the merchant acquisition strategy(High Volume strategy), we will pursue efficiency in merchant

Sales Strategy for Large Enterprises (High Value Strategy)

Promote proposal-based problem-solving sales activities for• Expand proportion of large enterprises: Achieve 40%

revenue proportion by 2025

• Increase in proposal-based projects: Achieve 50% of

total projects

requests for sales brochures), order intake and delivery as

Merchant Acquisition Strategy (High Volume Strategy)

well as diversify the merchant base by setting internal KPIs.

Raise sales productivity by 30% through specialization andchanges in the socio-economic environment such as the24

GMO Payment Gateway, Inc.

(i.e., client diversification). Going forward, by pursuing thethe scaling up of client size. As a result, the cumulative rev-

High Value/High Volume strategy, we intend to achieve busi-

enues from the top 50 clients increased by 90% in FY2022

ness scale expansion and revenue stabilization.

(i.e., shift to large clients) compared to FY2018 while the

Cumulative Revenue by Client in FY2022 vs. FY2018 (top 50 clients)
Cumulative revenue proportionof top 50 merchants

1,200

53%

Cumulative revenue proportionof top 20 merchants

division of work

60

43%

1,000

50

each industry

acquisitions by shortening the lead time from inquiries (e.g.

This fiscal year is marked by an uncertain outlook andproportion of total revenue they account for declined to 47%

and company size, in order to pursue client diversification and(Unit: ¥ mil, %)prises (the High Value strategy) will pursue proposal-based,sales structure. By developing payment platforms and appli-

The Company has organized its sales structure by industry

47%

800

600

Diversification ofclient base

33%

30

Scaling up client size
Revenue of top 50 merchants increased by around 90%

400

200

0

10

20

30

40

40

50

 Y2022 Revenue by clientF(left axis)

20

 Y2018 Revenue by clientF(left axis)

10

 Y2018 Revenue by clientF(right axis)0 Y2022 cumulative proF
portion (right axis)

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

25

Business Strategy

GMO Payment GatewayEC
Business Expands In Line with the Advancement in Japan’s Cashless Penetration
B2B

Sustain Above-Market Growth Rates by Driving EC Migration of Service Sectors
such as Taxes/Utilities(Inter-company transactions)

B2C(Transactions between companies andindividuals/general consumer)
Narrowly-defined B2C: EC¥20.7 tr*1

Business Environment and Growth Strategy
The B2B EC market, which is the core of the broader EC

EC penetration 8.8%

above-market growth rates by contributing to the resolution of

domain with a market size of ¥20.7 trillion in 2021, is forecastsocial challenges through the development of industry-

to continue to grow thanks to the improved convenience of

optimized applications and the proposal of solutions thatsmartphones and advances in logistics reforms. In addition,

respond to various merchant needs, such as expanding

the online migration of payments in the non-merchandise

payment methods offered, strengthening security, reducing

domain such as services, taxes and public dues/utility bills

costs and transforming our business model through DX

are progressing steadily, which is not captured in the B2B EC

deployment. In particular, the Company focuses on EC migra-

statistics. Furthermore, there is large potential for businesstion and DX support for the insurance, real estate, medical

expansion in the B2B EC market (market size of ¥372.7 trillion

sectors, as well as sectors that have not yet migrated online.

in 2021). Recent years have seen progress in the digitalization of various service sectors driven by the acceleratingsocial trend of DX and cashless adoption. Under this* Ministry of Economy, Trade and Industry’s “FY2021 Global Survey Project
Concerning Integrated Domestic and External Economic Growth Strategy
Building (E-Commerce market survey)”business environment, the Company aims to sustain

Number of Operating Stores*1

Consolidated Transaction (TRX) Value*1

6,837 stores

End-September 2004 

C2C(Inter-consumer transactions)

Online payment*1

Enormous market

CAGR*5¥1,000 tr market

6.4%

EC penetration (%)

2021
8.8

2025
14

Market size (¥ tr)

20.7

40

Public dues/Utilities*

 ervice, CommerceSSubscription
Omni channel

2• Local tax¥41 tr• National tax ¥70 tr

Private final consumption expenditure*3

CAGR*5

Expansion phase¥1.95 tr market
Sharing
economyBroader EC

Credit card payment

Offline payment*4

Flea market app¥300 tr

9.8%

Flea market*1 Ministry of Economy, Trade and Industry’s “FY2021 Global Survey Project Concerning Integrated Domestic and External Economic Growth Strategy
Building (E-Commerce market survey)”. Figures for 2025 are our estimates.
*2Ministry of Internal Affairs and Communications’ “Breakdown of national tax and local tax revenue (FY2022 Budget and Local Government Finance Plan)”*3 THE WORLD BANK “Household final consumption expenditure (current USD)”*4 Payments Japan Association’s “Cashless Roadmap 2019”; Yano Research Institute’s “Domestic Cashless Settlement Market 2022”*5 CAGR refers to the 5-year compound average growth rate from 2017 to 2021

TOPIC

37 mil trx.

FY2004Merchandise

Provide a new smartphone payment service for the tax, public dues and utility sectors

Games &
Music

Consolidated Transaction (TRX) Volume*onboarded enabling EC operators using the PG Multi-

methods and functions on a single screen, but also to

Payment service a greater variety of payment methods

integrate the settlement and deposit dates which can

to be offered on their websites.
B to B 決済サービス

FY2022
元 font 名：
ＤＦＧ華藝体 /W4
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青上 ...Ｃ80Ｍ20Ｙ60Ｋ0
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11.3 tr

¥

スペック

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��� ��� �� � ������� � ��� ��
��

GMO Payment Gateway, Inc.

February 2022, au PAY (online payment version) was

an integrated dashboard to manage multiple payment

Taxes

1 The number of operating stores would be 455,958 stores if adjusted for a particular case for the same period.
2 The number of operating stores refers to GMO-PG and GMO-EP; consolidated
transaction volume and value are figures for GMO-PG, GMO-EP, GMO-PS and
GMO-FG.

26

of confirming deposit and debit management. From

ods including credit card. This service not only enables��� �����

Water utility

service that provides a diverse range of payment meth-�� ����

DVD/CD

120.0 bndiffer by payment method, thereby reducing the workload��� ���

Apparel¥PG Multi-Payment service is a comprehensive payment�� ����

Automobiletax

Onboard au PAY (online payment version) to PG Multi-Payment service1

FY2004

Agency which was launched in December 2022.

��� ���

Ticketincludes six payment methods for the National Tax

Government. Initiatives to expand smartphone services����E-books

4.86 bn trx.

such as the smartphone-based payment website thatfor the Bureau of Waterworks and Tokyo Metropolitan��� ��� �� � ��� �������� ����

Food

FY2022� ��� � ��� ��� �� ���� ��� ��� �� ���� ��� ����� ���� ��� ��� �� ���� ��� ��� �� ���� ��� ��� �� ���� ��� ��� �� ���� ��� ���
��
��
��

Books

142,396 storesin the tax, public dues and utility sectors are progressing,

PayPay, au PAY, LINE Pay and FamiPay were launched���End-September 2022*2 

From October 2022, four new payment methods ofIntegrated Report 29th Fiscal Year 2021.10.1–2022.9.30

27

Business Strategy

GMO Payment Gateway

Ryu Muramatsu

BaaS

Director, Executive Vice President
General Manager of Corporate
Value Creation Strategy Division

GlobalExpand Lineup of Infrastructure that Support Financial Institutions' Services
Business Environment and Growth Strategy
VisionFinancial institutions such as banks and credit card compa-

The Company will contribute further to the advancement ofnies are enhancing their BaaS initiatives to rollout financial

cashless society by supporting the BaaS initiatives of finan-

services. In response, the Company provides the GMO-PG

cial institutions and business operators going forward.

Processing Platform as part of the BaaS support since 2017.
In addition, business operators trying to enhance, or are newly
launching, their cashless service to their customer base face sig-

BaaS Support Service Revenue

Total (YoY)+39.3%

nificant investment burden, system development requirement for

Ginko Paybase system+14.5%

security features, and be quick to rollout the service. Given
these needs, the Company improved the functionalities of
GMO-PG Processing Platform from April 2022, which has
reduced the cost to clients of launching their financial service.

79

In addition, through the collaboration of four companies, the

GMO-PG
Processing
Platform+59.5%

Company plans to revolutionize the current credit card issuingsystem from October 2023 with a low-cost and speedy card
issuing ASP (Application Service Provider) service.

18

19

20

21

22 (Fiscal Year)

GMO-PG Processing Platform (Acquiring)
GMO-PG Processing Platform (Issuing)

Ginko Pay Base system

FinTechSupporting Client Growth by Responding to Diverse Needs for Funds
and Fund Transfers

Business Environment and Growth Strategy
Within the expanding global EC market, growth is accelerat-

In FY2022, financial services in Asia grew 66.3% thanks to

ing in the Asian region, including Southeast Asia and India,

new loans executed, which drove overall global business rev-

which has an economic size of US$5.5 trillion. The market

enue to increase by 51.7% and operating profit by 227.5% YoY.

has significantly evolved from the initial phase of high growth

Investment activities are decided on a 10-year outlook ofof B2C-EC players and online payment processing compa-

market conditions and recovery. In FY2022, we recorded

nies that support them. We believe the following decade will

¥166.9 billion in gains from the sale of overseas investments

see larger B2B-EC operators and credit providers gain impor-from the divestment of the former equity method affiliate

tance, leading to the rapid growth in businesses related to

2C2P Pte. Ltd. Given the uncertainty over economic condi-

credit assessment, lending and supply-chain financing. In

tions, we will deploy lending, minority or majority investment

other words, the frontline of FinTech service is forecast to

flexibly by taking into consideration the valuations of target

accelerate the shift towards credit function and away from thecompanies. The loan and investment portfolio is likely to

payment function in order to support the foundation of anincrease threefold from current levels given the pipeline vis-

expanding EC market. The Company has carried out invest-

ibility for loans and investments into promising new startups,

ment and lending to support the growth of leading FinTech

especially in Singapore and India. In the future, we aim tostartups in USA and Asia countries. Lending business begins

increase the number of Asian FinTech unicorns supported byby providing small loans to new borrowers after which thethe Company several fold versus current levels, by leveraging

loan is increased to medium and larger amounts depending

our track record in overseas business over the past decadeon the performance, yielding a return of over 10% per annum.

and improved recognition of the Company.

TOPIC

Business Environment and Growth Strategy

28 Promote financial inclusion by supporting the growth of promising
FinTech startups in India, Southeast Asia and North America throughinvestment and lending

The Company offers a variety of FinTech services thatbuyer, who faced heightened risk of non-payment during theaddress funding and fund transfer needs largely unaddressed

COVID-19 period. In order to expand our FinTech services,by conventional financial services, primarily for merchants of

the Company raised ¥8.0 billion from third party allotment inour payment processing services. This includes services such

2015, followed by two new issues of Euro-Yen Convertible

as Early Payment and Lending that improves cashflow;

Bonds with Stock Acquisition Rights that raised ¥17.5 billion

Remittance Service, which executes bank transfers to indi-

in 2018 and ¥21.0 billion in 2021, respectively. These pro-vidual accounts and refunds; and Instant Salary byGMO,

ceeds will be used to create services that support our client’s

which is a salary prepayment service. In particular, Early

growth and to respond to merchant’s needs under an infla-

Payment is becoming a required function and having the fundtionary macroeconomic environment, as well as drive thecapacity to fulfill the funding requirement is becoming a pre-Company’s asset shift towards high profitability services. In

condition to be selected by many merchants. In addition, in

FY2022, revenue growth of Instant Salary byGMO grew 4.5xthat provides fund raising methods based on revenues

order to establish a foothold for the payment business within

YoY, marking a strong start, as

for small EC operators. We aim to further strengthen

the enormous B2B market, the Company has strategicallythis service responds to compa-

our revenue base by expanding loans and investments

expanded financial services for inter-company transactions,nies needs to strengthen their

to high-growth FinTech startups that are addressing thesuch as GMO B2B Early Payment, GMO B2B AR Guarantee

recruitment amidst the backdrop

fund supply gap and financial inclusion issues.

for the seller and GMO B2B Payment Guarantee for theof labor shortages.

GMO Payment Gateway, Inc.

The emergence of high-growth FinTech companies isincreasing in Southeast Asia and India thanks to theacceleration of economic growth and digitalization.
The Company has established an office in India tostrengthen local activities and will continue to support
micro-finance. The Company also executed new loans
in FY2022 to an agricultural sector FinTech company
that supports farmers in Indonesia with working capitalloans by leveraging technology and agricultural technology as well as to a lending platform company in India

Borrowers
and Investees

Payment Service
ProviderCredit Provider
A necessary foundation of EC
for the next decadeIntegrated Report 29th Fiscal Year 2021.10.1–2022.9.30

29

Business Strategy

GMO Payment Gateway

VisionVision

GMO Epsilon aims to evolve
into an innovator that
astounds SMEs businesses in
the web-service sector
through ‘payment’

From payment processing
to payment business;from conventional deferredpayment to BNPL. Expand
BNPL to a wider domainbeyond merchandise EC.

Kazunari Taguchi

Katsunari Mukai

GMO Epsilon, Inc.
President and CEO

GMO Payment Service, Inc.
President and CEO

Business Environment and Growth Strategy

Business Environment and Growth Strategy

GMO-EP provides a simple and quick implementation ofdiversifying new merchant acquisition to platform services

Since its service launch in 2013, GMO Payment Afterof GMO Payment After Delivery to evolve into a full-fledged

online payment services, free of any upfront charges,

and subscription service providers. To this end, GMO-EP is

Delivery has been used by many merchants and consumers.

BNPL payment service much like the US/Europe version, thisexclusively to SMEs that want to start EC business given the

pursuing new businesses that respond to the various needs

BNPL payment is a popular payment method among consum-

new service will enable merchants to improve UI/UX andwidespread use of EC. In recent years, the EC market grewof merchants and to strengthen its partner strategy. GMO-EP

ers that are non-cardholders or prefer not to use credit cards,

thereby maximize their revenue potential. GMO-PS aims tosignificantly from nesting demand but is currently experienc-

launched fincode byGMO in May 2022, an online payment

enabling operators to expand their reach to consumers unad-

expand its revenue base by addressing the non-merchandise

ing sluggishness due to the cycling through of nesting

infrastructure with high flexibility and scalability targeting

dressed by conventional payment methods. BNPL is posi-

EC domains such as digital content and services, compareddemand particularly in the merchandise sector. In order tostartups and will continue to support the innovations by cli-tioned as a highly convenient, cash alternative method ofwith the conventional merchandise EC merchants. GMO-PS

return to a growth trajectory and to build an earnings structureents in the payment domain.

payment with considerable growth potential. Given this back-will continue to contribute to client’s growth by providing pay-

drop, a new BNPL service will be launched in Spring 2023 toment services that respond to the merchant’s needs.

that is resilient to market volatility, GMO-EP is focusing on

further strengthen our lineup. By expanding the functionality

TOPIC

TOPIC

A new online payment infrastructure ‘fincode byGMO’ was

A new BNPL service is scheduled to be launched in

payments and offline BNPL by utilizing stera’s payment

launched in May 2022, targeting startups. This service

Spring 2023, in collaboration with Sumitomo Mitsui

platform with an aim to be the No.1 BNPL service pro-

responds to issues faced by startups and enables a shorter

Card Company Co. Ltd., GMO-PG and GMO-PS.

vider in Japan.

lead time for implementing a payment function with its

This new service will provide a novel BNPL service

engineer-focused design, a wide array of development sup-by leveraging the expertise garnered from Payment

porting content and backup provided by teams well versed in

After Delivery and its base system as well as Sumitomo

the client’s business and development. Going forward, we will

Mitsui Card Company Co. Ltd.’s know-how in credit

carry out frequent updates to the development assets to reflectassessment and installment payment. More concretely,

prevailing trends while aggressively incorporating user’s

the new service plans to offer long duration installment

feedback.

30

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

31

Business Strategy

GMO Payment Gateway

Business Model

Vision

GMO-FG addresses the offline market and conducts busi-

Lateral and vertical expansion
to acquire merchants andavoid concentration in any
single industry/sector

ness in the Offline/IoT domain, one of the five focus areas.

Building a positive feedback
loop where establishing asolid track record enhances
the ability to acquire newmerchants

transaction (fee)

3,000

7,000

•R
 evenue based on a fixed charge on the number of

2,500

6,000
5,000

2,000

4,000
1,500

(spread)

3,000

1,000

models. The current revenue mix consists of 70% initial revenue

2,000

500

and 30% stock-type revenue (the sum total of stock, fee and0spread). However, in FY2022, the growth rate of transaction-

1,000
18

19

20

0
22 (Fiscal Year)21

based revenue is increasing due to the reopening effect, with

Initial (right axis)

Stock (left axis)

stock-type revenue growing 62.9% YoY and initial revenue

Fee (left axis)

Spread (left axis)

growing 38.6% YoY.

TOPIC
payment compatibility with house reward schemes. In orderhigh growth of offline payment market and the government’s

to respond to and realize these needs, GMO-FG has devel-

promotion of cashless adoption. In addition, the progress of

oped a high-retention platform that leverages our engineering

IoT, which connects various appliances to the internet, andcapability. We intend to drive offline cashless market expan-

the expansion of the Unattended Market (e.g. vending

sion by leveraging these solution assets and expanding later-

machines and automatic service machines) is expanding theally to other industries and merchants. Furthermore, theaddressable offline cashless market size to an estimatedpayment platform stera, which was developed in collaboration¥128 trillion in 2025.*

between Sumitomo Mitsui Card Company Co. Ltd., Visa

Despite the number of new cases of COVID-19 hover-various travel and hotel related merchants. Although

ing at an elevated level in Japan, sectors that werethe current expectation is centered on recovery inadversely affected from COVID-19, such as travel anddomestic demand to drive transaction growth, the weakaccommodation, are gradually recovering. GMO-FG’s

yen and alleviating COVID-19 situation is expected tomerchant portfolio is not concentrated in any particularlead to a recovery in inbound demand to further drive

sector and provides the cashless payment platform totransaction growth.

High inbound demand

Worldwide Japan Co. Ltd. and the Company, is steadily

payment terminal, payment processing center and payment

expanding from the reopening effect and contributing to cash-

processing service, offered to a diverse range of merchants

less adoption in the offline market.

labor cost, realizing unmanned operations, and achieving•P eriodic and fixed rate revenue (stock)

The above revenues are classified as the four business

GMO-FG’s business opportunity is expanding thanks to thesystem and GMO-FG’s payment processing center, reducing

8,000

•R
 evenue based on a percentage of transaction value

Business Environment and Growth Strategy

needs such as data linkage between the merchant’s in-house

3,500

•R
 evenue from sale of payment terminal (initial)

GMO Financial Gate, Inc.
President and CEO

across industries. Large merchants in particular have various(Unit: ¥ mil)payment terminal sales and commissions) are as follows:

Kentaro Sugiyama

The offline cashless payment platform consists of a

GMO-FG and CAS Revenue by Business Model

The revenue generation from this domain (i.e., revenue from* Figures are the Company’s estimates based on Payments Japan Association’s“Cashless Roadmap 2019”; Yano Research Institute’s “Domestic Cashless
Settlement Market 2022.”

COVID headwind

COVID tailwind

NeutralLarge merchant
Dollar shops

Restaurant chains

Supermarkets (GMS)
Drugstore

Public transport(rail, bus, etc.),

Parking

Hotel/Travel
Apparel/Sports goods(drugs/cosmetics, etc.)

Home appliance retailers

IoT mobility

Public institutions(municipals, police dept.,
driving license center, etc.)Lowticketvalue

loT
Vending machine

Educational institutions(kiosks in universities,
senior high schools, etc.)

Sole proprietor restaurant/
retail shops(small value items)• Self-checkout implementation• IoT POS/Center linkage• Mass market solutions• Provide DX services tocollaborators• POS point reward linkage• Provide DX services tocollaborators• Sales strategy by industry/sector
and individual companies• Joint proposals with collaborators
Service/LeisureHigh end retailer/
Department stores

Comprehensive proposal initiatives
with alliance partners

Highticketvalue

Sole proprietor
restaurant(incl. high end restaurants)

Healthcare/Clinics

High end retail(merchandise,apparel)Small merchant

32

GMO Payment Gateway, Inc.

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33

Foundations of Value Creation

Roundtable Meeting of External Directors

Grow sustainably and exercise governancethat enhances corporate value over the
medium-to-long term

Yoshida I have worked at hardware/software manufacturers, system integrators (SIers) and now I oversee anapplication and service platformer, which is what the

Please elaborate your views on
the Company’s strength and yourexpectations going forward.

Company is - a platformer. Based on this career, I think a

Kazutaka Yoshida
External Director

Kazuhiko Okamoto

Yumi Hokazono

Fumio Kai

External Director

External Director

External Director

platformer’s strength is in its business model and talent

Okamoto The difference between a platformer and an

development. On the other hand, there are some areas

SIer, is that an SIer is a hunter-gatherer, to use an anal-that require attention. First is the operation and buildout ofogy, based on their style of generating large profits fromIT management. In addition to proprietary on-premise

winning large projects. Compared to this, a platformer is aplatforms and systems, additional governance perspec-

sedentary agricultural tribe. The major strength of antives need to be addressed for cloud-based systems. The

agricultural tribe lies in continuously cultivating services,second point is strengthening cyber security measures. It

supporting the client’s efficiencies and enhancing value inis necessary to closely verify the management’s perspec-

order to reap the harvest every year, in other words, totives on these issues. The third point is maintaining

build a sustainable revenue base. The hunter-gatherer

system quality/integrity and reducing the number of mate-aims to capture the biggest prey that makes it difficult torial incidents. While the number of incidents is declining

have an agricultural mindset.

yearly, we must still remain vigilant. In recent years, project management is a new area of focus. Further businessYoshida Indeed. SIer’s business is based on project

expansion will require new and customized systems which

units which carries the risk of losing a bid or booking

will make project management skills increasingly impor-losses on a project. A platformer can generate revenues

tant. It will be crucial to maintain QCD (quality, cost andover the medium-to-long term by offering services fromdelivery), talent and skill development.

development all the way to operation. Conversely, an SIer
will therefore foster a heightened sense of vigilance over

It has been one year since the new governance structure was put in place. The External Directors andAudit and Supervisory Committee members have assembled to discuss governance and theCompany’s strong points.

Kai During my Bank of Japan tenure, I was involved inproject management. I see the need to foster a similar

economic analysis, financial market operations and mone-mentality and a sense of vigilance in managing projects.

tary policy related positions. In addition, I was involved inrevising the organization, remuneration and humanKai I think the Company has very high aspirations toFirstly, please elaborate on how you
perceive your role as External Director
and your perspective in carrying out
management oversight.

resources with the amendment to the Bank of Japan Act

expand further, going from its origin as a dedicated credit

other hand, the difficulty in securing good talent given theand oversaw the payment clearing network Zengin

card payment processing company to a platformer, andrapid growth of the FinTech industry is an issue for sus-

system. In addition, from a position of examining financial

not resting on its laurels by still vying to advance to thetainable growth. These are the points I raise based on myinstitutions, I have become familiar with the management

next stage. Of special note is the achievement of continu-

experience of managing payment services companies.

of a wide array of ‘personalities’ in financial institutions

ously growing operating profit by 25% amidst the heavy

ranging from credit associations to mega banks. After that,social responsibility placed on the Company in terms of

Okamoto The phrase I use when introducing myself at

Hokazono

I experienced being an External Director and Auditor

compliance and providing uninterrupted payment services,

the General Shareholder’s Meeting is “to take the position

importance of risk management such as the J-SOX Act,

when corporate governance initiatives were progressing inwhich form an important part of the social infrastructure.

of a non-controlling shareholder.” It is important for an

the Three Lines of Defense (a structure where businesssociety. I would like to contribute my expertise in financial

While a number of companies delegate decisions to theExternal Director, especially as a member of the Audit andexecuting divisions, managerial divisions and internal audit

operations given that the Company undertakes financial

executive officers for individual projects, the Company

Supervisory Committee, to ensure the executive branch isdivisions each play their respective role in risk manage-functions such as credit facility and overseas lending,deliberates on them not only at the Management

not adopting policies that might impair the interest of non-ment) and the management of affiliates. Transitioning from

especially given the fact that the size of funds managed

Committee but with each director, including the president,

controlling shareholders. The Company undertakes pay-a Board of Audit to an Audit and Supervisory Committee

and raised is increasing. In addition, I intend to deepen

making pertinent arguments from their respective areas ofment business, which is a critical infrastructure of theimplies that verifying the structures in place to strengthen

discussions with the executive branch to ensure that theexpertise both from a defensive and offensive perspective

economy. Disruption of this platform would have serious

statutory disclosures, such as the Annual Securities

internal control structure is commensurate with the rapid

for each and every important project. Achieving 25%

consequences for consumer and corporate activities. My

Report, is a primary focus from a CPA perspective.

growth in the business scale and domains.

growth while fortifying its defenses and fulfilling the

As a certified public account, I convey the

stance is to thoroughly supervise these points. On the34

GMO Payment Gateway, Inc.

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35

Foundation of Value Creation

Roundtable Meeting of External Directors

Kazutaka Yoshida

Kazuhiko Okamoto

External Director, Chairman of Audit and Supervisory
Committee
Chairman of Nomination and Remuneration Committee

External Director, Audit and Supervisory Committee,
Nomination and Remuneration Committee

Appointed as External Director in December 2021, previously
External Auditor from December 2016. Previous positions
included Executive Officer of IBM Japan, Inc. and Senior
Executive Office and General Manager of Technology Divisionof JSOL Corporation.

commitment to shareholders is a testament to the organization’s overall controls and it is the Company’s notablestrength to have high aspiration towards growth that

Lastly, please elaborate on areas thatneed to be strengthened to achievesustainable growth.

should be treasured.
Yoshida The important point is how the internal control

Previously held positions include Vice President in chargeof Japan and South Korea of GNES division of American
Express Japan Co. Ltd., Deputy Representative Director andRepresentative Director of Visa Worldwide Japan Ltd.
Appointed as External Auditor in June 2017 and became
External Director from December 2021.

Okamoto I agree. Especially for security measures, itagainst the societal trend to utilize external directors. The

is important for a platformer to respond preemptively toCompany has transitioned to the Audit and Supervisorydemands from government. It is necessary to assess

Committee structure and increased the number of external

what needs to be done, as the best precaution is to be

directors, making it possible for Audit and Supervisory

preemptive.

Committee members that are external directors to participate in the decision-making process of the Board. The

Hokazono The organization has made steady progressstructure is developed and operated. The development

in developing its organizational strength with the increase

and operation of internal control systems is based on three

Hokazono From an internal control standpoint, the scalerequired work is to effectively match the Company’s inter-in the number of professionals such as accountants andconcepts. First, is the overall management by internalof the Company allows the management to oversee thenal values with those of the external directors’ views. With

attorneys assigned to the Accounting Division and Legal

control. Second, is the overall company risk management

details and exercise governance. However, continuing to

the help of explanatory meetings held prior to Board meet-

Department. This is possible thanks to the new human cap-

as represented by the Risk Management Committee.

grow 25% will further scale up the organization. Therefore,

ings and discussions with executive officers, external

ital as well as the accumulated expertise from the past.

Third, is the Three Lines of Defense. The important

I would like to further discuss how to a have a more lay-

directors are able to deepen their understanding of thechallenge is to raise the effectiveness of such an internal

ered and stratified organizational structure in order toCompany and industry and contribute to fruitful discus-

Okamoto From a macro perspective, the business

control structure. For example, from a risk coverage per-increase the checks and balances between the frontline

sions from their respective area of expertise. I believe thatdomains addressed by the Company have significant

spective, close attention must be paid to how the specificand management.

the Company is in this stage of deepening communica-

growth potential. Japan’s cashless penetration is justrisks of each division are captured in the overall

around 30% compared to South Korea 90%. Japan’sCompany’s risk assessment and how internal control is

Kai I feel the Company is at an important juncture toernance function. I look forward to the Company

cashless penetration is rising but most of the market is still

incorporated into decision-making bodies. For the System

consider the optimal organization, given the speed ofchallenging itself to even loftier goals through activities toa blue ocean if one assumes that penetration rates will

Division, it is important to have proactive management

growth and changes underway. There are cases else-

further refine the organizational operations.

increase to 80%~90%. If the Company can continue tothat preemptively takes measures to constantly verify

where where suboptimal decisions are made to tackle

pioneer into this blue ocean and maintain its position in

responses when/if an incident occurs and how to examine

issues based only the company’s values, which goesbusiness development, I am optimistic on the outlook.

the possibility of incidents that occur at other companies

tions and is making steady progress to strengthen its gov-

happening at the Company.

Yumi Hokazono
External Director, Audit and Supervisory Committee,
Nomination and Remuneration Committee

External Director, Audit and Supervisory Committee

Appointed as External Director in December 2021, previously
External Auditor from December 2018.

Previously held positions include Associate Director-Generalof Institute for Monetary and Economic Studies of Bank ofJapan; General Manager of Akita Branch of Bank of Japan,
General Manager of Deposit Insurance Department of Deposit
Insurance Corporation of Japan. Currently the Outside Directorof FIDEA Holdings Co. Ltd. Appointed as External Director in
December 2021.

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

Representative of Yumi Hokazono Certified Public Accountant
Office since July 213, after working at Showa Ota & Co.
(predecessor of Ernst & Young ShinNihon LLC).

36

Fumio Kai

37

Foundation of Value Creation

Sustainability Management

Driving the Progress and Advancement of Society
by Supporting DX and Decarbonization.
Promote Social Inclusion through "Credit x Digital."*

Focus areas for the realization of sustainability
The Company focusses on the following areas stated below for
the realization of a sustainable society, reflecting the opinions ofstakeholders and business considerations. Going forward, theCompany will identify the relevant materiality issues that should
be prioritized from a medium-to-long term perspective in order

Based on the management principle to “pursue both material and spiritual prosperity through our contributions to the progress andto advance its sustainability management.

development of society,” the Company engages in SDG (Sustainable Development Goals) initiatives by driving social innovations
in payment and financial technology, as well as providing services centered on payment that support DX, paperless, cashless andonline migration. In addition, the Company will contribute to social inclusion where everybody participates and embraces diversity.

Focus Areas

Contribution to SDGs

Related ESGs

Digital inclusion*1

E

S

Environment

Society

Financial inclusion*2

E

S

Environment

SocietyConcrete initiatives

External evaluation

 ealize a convenient and comfortable society by promotingRcashless adoption and raising EC penetration
Support merchants with varied forms of digital sales such
as EC websites and delivery through payment services
Open innovation with numerous business partners

 rovide impact finance to FinTech companies that promotePfinancial inclusion
Instant Salary byGMO service enables salary paid at thepreferred timing
Access to EC for non-credit card holders by offering BNPL
Lending service provides loans to operators for working
capital needs
Environment
contribution

Environmental contributionESupport merchants’ decarbonization by supporting DX
initiatives such as paperless operation
Commence payment processing using what is effectively
renewable energy

Environment

G

2 年認定

る み ん
☆

Practice of sound management

202

く

て

す

子育

S

Society ontribution toChuman capitalサ

まHuman capital contribution

 tilize diverse human resources (promotion of diversity)UBased on the corporate culture that “people determine thecompany,” support personal growth through proprietaryhuman resource development programs and share in thecorporate visionBased on the idea that “a company is a place to foster
personal growth,” provide a workplace to fully unlock thepotential and capability of the workforce

ポートして

い

 evelop systems for an effective corporate governmentDDevelop a comprehensive risk management structure
Strengthen information security as the highest priority issue

Governance*1 Initiatives to realize a society where everyone enjoys the benefits of digital technology, where no one is left behind and the disparity in access to digital technology is eliminated*2 Initiatives to realize a society where everyone enjoys the benefits of financial service, where no one is left behind and the disparity in access to financial service is eliminated38

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

39

Foundation of Value Creation

Environment

Response to climate change (information disclosure based on TCFD recommendations)footprint as the Company. Through such services, we aim

migration, which has a low environmental footprint com-

to achieve the decarbonization of society and our custom-

pared to conventional payment services. In addition,ers and the transition to a carbon-free sustainable society.

financial-related services such as lending, is offered to

In addition, the Company is working to expand climate

domestic and overseas operators involved in online andchange-related information disclosure as per TCFD recom­‑

FinTech services that have a similarly low environmental

mendations.

Governance

Strategy

Risk Management

Indicators and Targets

The executive vice president bears responsibility for climate

Based on scenario analysis methods recommended by the Task

Recent years have seen a worsening of climate change

In order to contribute to realizing a sustainable society, thechange issues at the Board and to reflect/incorporate all envi-

Force on Climate Related Financial Disclosures (TCFD), theissues, and services offered by the Company may also be

Company is undertaking initiatives to reduce greenhouse gasronment related issues to the Company’s management strat-

Company identifies those potential risks and opportunities aris-

impacting the climate and natural resources through CO2(GHG) emissions related to business activities. In FY2022,

egy and management targets. The management teaming from future climate change. By referring scenarios presented

emissions from electric power consumption. To combat thisthe Company implemented what is effectively renewable

including the president and executive vice president carries

by the Intergovernmental Panel on Climate Change (IPC) andissue, the Risk Management Committee comprehensively

energy for electric power consumptions at major data centers,out deliberations on policies related to sustainability activities,

International Energy Agency (IEA), we have identified the cli-

undertakes an assessment of and response to natural disas-

which consume the bulk of business-use electricity. The

reviews the progress, evaluates plans, reports the progress tomate change related risks and opportunities based on scenarios

ter risks, including climate change. The Company convenes

Company will achieve zero GHG emissions (under Scope

the Board and compiles measures to reflect the feedback

related to changes in natural and social environments.

the Risk Management Committee once every quarter to1+2) in its operations, including offices and all other data cen-

implement measures effectively and efficiently by incorporat-

ters, by FY2023. In addition, in order to carry out supply chain

ing climate related risks into the overall risk management.

engagements, the Company has commenced discussions

Risk incidents are classified into six categories according towith payment terminal manufacturers to assess GHG emis-

the quantitative evaluation based on two metrics of monetarysions during the manufacturing process and the appropriate

impact and frequency of occurrence. The foreseeable risks

measurement of electric power consumption at the time ofand general risks are evaluated and selected across theoffline payment, in order to accurately measure GHG emis-

Company by employees above a certain position. Of those,

sions of payment terminals which constitute the bulk of Scoperisk incidents that exceed a certain threshold are designated

3 emissions. The Scope 1 and 2 GHG emissions data foras material risk, and each Division must consider and imple-

FY2022 is being verified by a third-party organization.

received. In addition, the Board receives periodic reports fromthe Risk Management Committee on its discussions, verifications and findings to help the Board monitor the responses
and impact of climate related issues on the overall Company.

Estimated scenario (1.5ºC scenario)• Rapid progress in the reduction of CO2 emissions arisingfrom the transition to a decarbonized society• Regulatory tightening from carbon pricing, etc.
• Changes in needs from heightened environmental
awareness by stakeholdersR isks and Opportunities Associated with Climate Change
Classification

Transition
risk

Risks and opportunities

Timeline

Intiatives

Policy, laws/
regulations• Increase in cost of business from
implementation of carbon tax

Medium-tolong termMarket,services• Loss of business opportunity from inability
to fulfill the client’s needs for reducing
environmental burden

Medium-tolong term

Evaluation• Increase in fund procurement cost, recruitment
cost and negative evaluation from stakeholders from being regarded as insufficiently
responding to climate change issues

Short-tomedium term

• Promote ESG-related information
disclosure• Increase in electricity cost from higher
burden on air-conditioning caused by therise in average temperatures

Medium-tolong term

• Improve efficiency at data centers• Impact to operations from spread of
infectious diseases and wind/water disasters
due to rise in average temperatures

Medium-tolong term

• Suspension of operations and services due
to personnel loss, data loss and/or damage
to data centers caused by abnormal weather
and natural disasters

Short-tomedium termMarket,services• Increase in demand for the Company’s­services that enables online, cashless andpaperless migration due to the increase insocial demand for environmentally conscious
management

Medium-tolong term

• Pursue current strategy of DX
supportEvaluation• Rise in corporate value and improved
evaluation from stakeholders fromaggressive involvement to tackle climatechange problems

Short-tomedium term

• Promote ESG-related information
disclosure

Chronic
Physical risk

Acute

Opportunity

40

The Company promotes online, cashless and paperless

GMO Payment Gateway, Inc.

• Implementation of what is
effectively renewable energy
at major data centers• Select data center locations less
impacted by natural disasters• Redundancy configuration ofsystems, dispersion andmultiplexing of data centers• Compilation of business continuity
plans (BCP)

ment responses. Consideration and response to the material
risk is further deliberated by the relevant Division after incorporating the opinions of external experts. This is examinedand debated at the Risk Management Committee andreported to the Board.

GHG Emissions(Unit: t-CO2)

Trend of GHG Emissions(Unit: t-CO2)

FY2019FY2020

FY2021

FY2022

Scope 1*1

0

0

0

0

Scope 2*2

1,559

1,736

1,883

308

Scope 3*3––

24,015Undermeasurement

Category I––

15,178–Category II

–

–

3,344

–

Other

–

–

5,493

–

(product procurement
and services)

2,000
1,600
1,200
800
400

(use of products sold)* Note: C ompiled from electric power usage at offices and data centersof major GMO-PG consolidated companies*1 Scope 1: Direct emissions from owned or controlled sources*2 Scope 2: Indirect emissions from the generation of purchased
electricity, heating and cooling, etc.
*3 Scope 3: All other indirect emissions that occur related to
the Company’s activities

0

19/9

20/9

21/9

22/9

23/9
(Target)Scope 2 (Scope 1 is zero)Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

41

Foundation of Value Creation
In order to realize sustainable growth and based on thecorporate culture that “people determine the company,”
all employees are involved in recruiting and fostering
talented individuals, as well as in improving theworking environment.

Human
Resource
Strategy

Kiyonobu Inayama
Executive Director, Executive Manager of Human
Resources Management Department

HR Strategy Meeting
A strategic meeting held once a week exclusively onhuman resources is the venue for all management toseriously think and face issues for human resources.

A diverse human resource base is the source of a company’scomprehensive capability and competitivenessBased on the slogan, “everyone participates in recruitment and talent development,”
the management team and each and every partner comes together on recruitment andtalent development. The Company adopts a scheme for referrals from partners ofpotential recruits they want to work together with, based on the view that a partner’s
personality and appeal attracts new talent much like a ‘company with magnetism’.
No.1 & STEAM Talent recruitment ~ New grad recruit annual wage ¥7.1 million program ~Human resources

Corporate growth is supported by balancing both higher productivity and scaling
up the organization, by constantly being aware of the management KPI of operating profit per employee.

Recruitment
strategy(Unit:%)

Operating profit per employee
Approx. ¥15 mil

Approx. ¥20 mil
799

800
600

20

8.1
79

200
0

19

20

10
5

0
22 (Fiscal Year)21

 os. of employeesN(left axis)
Turnover rate(right axis)

Source of Growth =“People Determine the Company”

GMO-PG health declaration “Well-being with Partners”

It is indispensable for partners to be healthy and active in order to realize the management philosophy and corporate growth. A CWO (Chief Well-being Officer) has
been appointed to develop the organizational structure to achieve this and a widearray of employee benefits and welfare based on “healing,” “diet,” “movement” and“medicine” are available to partners.

CWO

Chief Well-being Officer

Movement

GMO Internet Group Inc.’s
Health Support program
Healing

Medicine

Corporate Support Division
Health maintenance andpromotion
Human
Resources

HygieneCommittee

Health Insurance
Association

Industrial
physicianCareer design system and in-company short-term study program

Person-to-person training (OJT model)

Environment
development

President andChief Executive Officer

Design your own career
The Company adopts a Career Design System whereby all partners can apply forreassignment and job rotation based on their preference of their own medium-term
career design, once a year. In addition, an in-company short-term study program isavailable to provide alternative career experience and growth potential to partners
as well as vitalize the organizational collaboration and personnel interaction
amongst teams.

Initiatives for health maintenance and improvement andenhancement of job satisfaction

Diet

The GMO Internet Group, Inc. promotes remote
work and business operational efficiency toimprove productivity. The profit generated fromsuch activities are fed back to the Group’s partners(employees) under the project called “No. 1 inWages Project from Future Rent Reduction & RPA/
AI/robotic implementation.”* As part of this project, the Company has launched “No.1& STEAM Talent Recruit ~ New grad recruit’s annual wage of ¥7.1 mil Program” toattract talent with the highest potential among the new graduate generation.
* An initiative to raise the consolidated operating profit margin through profit growth andproductivity gains. The funds generated when margins exceed a certain threshold are returned
to partners in the form of wages.

15

400

Agenda R ecruitment, talent development, health management strategy, utilization, development ofstructures and environment for human resources

Views on recruitment

The Company’s basic view is that recruits must have high levels of capability andhumanity in order to realize the Company’s philosophy of “pursuing both spiritualand material prosperity by contributing to the advancement and progress of society.” Based on this view, in addition to business execution ability and skills, a candidate must also have high aspirations under the Company’s practices of“Everyone is the President,” “Responsibility of others is also yours” and “Integrity.”(Unit: person)

Frequency O nce weekly

All-hands-on-deck approach to recruiting and mentoring

Candidate requirement

Human resources

Participants E xecutive Vice President, Chief Managing
Executive Officer, President of GMO-EP,
President of GMO-PS, Human Resources

Development
strategyThis is a system whereby new grad recruit can select the division and colleague
they prefer to work with, by undergoing an OJT period to provide an overview of all
the operations at the Company.
Fostering the next generation leaders and management training

The Company has an aggressive HR practice to assign members of the younger
generation to key positions and aggressively appoint women to managerial positions.
The Company has a culture where opportunities are available based on ability andperformance regardless of age. In fact, a new grad recruit in their 6th year was
appointed as General Manager. In addition, there are periodic training programs ofvarious themes conducted for all managers to support leadership development.

Please refer to the Company website for details on human resources, employee benefits and welfare and talent development schemes.
https://www.gmo-pg.com/corp/sustainability/social/

42

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43

Foundation of Value Creation

Voices of Our Partners
Q As the next generation of leadership, how do you perceive the Company’s growth

Emerging next
­generation leaders

potential?

Yutaro Takahashi:
I think the work environment allows for full immersion into work regardless of age or position while receiving assistance.
There is room for personal growth as we can discuss ways to achieve “25% growth” thoroughly and receive advice andconstructive criticism. This is because the understanding that “people determine the Company” permeates the entire
Company, although this implies a certain burden. I strive to be an ideal leader which is a hybrid of living up to the expectation placed on a general manager and the leadership role models of the management that I respect.
Masako Manabe:
There is satisfaction and the opportunity for growth in being involved in a growing sector and when your efforts to makeheadway with a client or in an industry finally reap results. The Company’s unique strength is the culture where opportunity isavailable to those with ambition and a pioneering spirit, even if that person is young, and a culture where we support eachother when the going gets tough. Although only recently appointed as general manager, I aim to be a leader that can raise
Innovation Partners Division

Yutaro Takahashi

Innovation Partners Division

Masako Manabe

the morale of the team by sharing the successes and with the power to infuse the vision and convey emotions in the samethe way the president does.

QW hy did you chose to join the Company despite the choices

Global talent
recruitment

available globally?

James Eccles:
After graduating from Graduate School, I chose this Company from the other Japanese andforeign companies I approached, because of the ability to succeed even at a young age as well as
be able to launch new businesses originating from Japan. The attitude to ‘truly understand anotherperson by showing interest’ was another deciding factor. Being able to frankly state your opinion andrefute what is entrenched in Japan is one of my strengths since I come from outside Japan.
The Company’s attractive point is that no effort is spared in promoting interaction with due
consideration about the other person’s growth.

Innovation Partners Division

James Eccles

QD id the Company’s work environment and systems/programs help inyour long-term career planning and with balancing childcare and work?

Childcare leave

Kasumi Tsuchida:
It was quite natural to apply for childcare leave because I wanted to continue working at this job
and with the many seniors in the division. I had concerns about health during COVID-19 and thehandover work of a manager, but colleagues around me came to my aid. There are no doubts andconcerns on balancing work and childcare now, and I want to challenge myself with a management position in the future and aspire to become a role model for new grad recruits. The ­president
himself asked me what aspects of the childcare leave are lacking after I returned to work, and my
Systems Division

44

GMO Payment Gateway, Inc.

Kasumi Tsuchidacolleagues have been very accommodating. I can viscerally feel that “people ­determine theCompany” is within our hearts.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

45

Foundation of Value Creation

GovernanceEvaluating the Effectiveness of the Board
The Company strives to improve the effectiveness of the Board by incorporating evaluation and analysis once a year at the Board meeting, carried out primarily by the Audit and Supervisory Committee.

Corporate governance

The Company works to ensure the Board’s effectiveness based on a broad perspective of its organizational design, nomination andBasic Views

remuneration, and the Board’s composition and operation by incorporating objective and quantifiable methods, such as questionnaires

Based on its management principle, the Company implements governance systems that can effectively and efficiently realize this prin-completed by all directors. Concurrently, the issues and problems revealed in the evaluation process are continuously addressed throughciple. The Company’s basic view on corporate governance is to implement measures and develop necessary management oversight sys-

improvement measures and its implementation in order to further enhance the Board’s functioning.

tems for sound progress while simultaneously securing the legal compliance and efficiency of management. Corporate governance

Remuneration of Directors, Nomination and Remuneration Committee

is positioned as one of the highest priority management issues.

The fixed remuneration amount (including bonus payments) for directors (excluding members of the Audit and Supervisory Committee)

Structure of Corporate Governanceis determined by the Board after due deliberation conducted by the Nomination and Remuneration Committee. The remuneration
amount for each individual director is decided by the Board, which basically aligns with the Nomination and Remuneration

General Meeting of Shareholders
Selection, dismissal

Selection, dismissal

the remuneration.

Organizational structure

Board of Directors

Collaboration

Audit and Supervisory Committee(four External Directors that are members of Audit and Supervisory Committee)

Audit andSupervision

Directors (11 Directors of which one is an External Director)

Engagement through IR Activities

Elect anddismissal

Accounting auditor

Elect, dismissal and supervision

Elect anddismissal

Representative Director
ReportCollaboration

Management
Committee

Instruction

Collaboration
Accounting
Audit

Committee’s report following the Committee’s multifaceted considerations to ensure consistency with the policies in determining

Selection, dismissal

Audit

Internal Audit Office

ReportAnswerNomination andRemuneration
Committee

Instruction

Elect anddismissal

AnswerIn order to achieve the purpose of corporate governance, theSpecialCommittee

ReportEach Division

IR Activities

Risk Management Committee

Company strives to increase the management’s transparency
through timely disclosure of management information and investor relations to shareholders and investors.

GMO Payment Gateway, Inc.

Collaboration

Consolidated group of companies

AuditorActivity arnings announcement andE
Financial Results Briefing meetings
1-on-1 meetings
Participation in broker conferences

Concurrent positions held by Directors
Information sharing and confirmation

Audit

 Y 2022 IR activities
F(October 1, 2021~September 30, 2022)
Nos. of events

4 times
Approx. 370 meetings
16 times

Risk Management
Status of Risk Management Structure

Board of Directors and Management Committee

In order to tackle the various risks associated with business operations, the Company has developed a risk management structure to

In order to appropriately respond to changes in the business environment and to strengthen the management’s supervisory function,

secure stable growth and business continuity by optimizing and deploying costs required to carry out preemptive measures on a perma-

the Company separates the supervision and execution functions. The following initiatives have been implemented:

nent basis. Specifically, the Risk Management Committee has been established, comprising the heads of divisions at GMO-PG and its

The Board of Directors makes decisions on important management matters and legal issues, supervises the execution of duties by

consolidated companies to carry out risk assessment, formulation and execution of countermeasures and monitoring. This committee

Directors, and works to ensure the fairness, efficiency and transparency of the decision-making process. Organizational structure

comprehensively evaluates and manages various risks including compliance risks, such as anti-corruption, natural disaster-related risks

In order to strengthen management oversight through the separation of supervision and execution, the Management Committee isincluding climate change and risks associated with system security and others. The Board of Directors supervise the effectiveness andcharged with the decision-making function for the execution and deliberation of/on important operational matters based on the basic

appropriateness of corporate-wide risk management based on periodic reports on the discussions and evaluations of the Committee.

policies stipulated at theBoard of Directors meeting.

Organizational structure

Note that, due to the above initiatives, there have been no scandals nor material wrongdoing during FY2022.

Organizational structure

Audit and Supervisory Committee
The Audit and Supervisory Committee consists of four external directors. Based on the Rules of the Audit and Supervisory Committee,
each member must share and conduct the task of attending the Board of Directors meetings and important meetings and operations,investigations of financial condition, etc. The Committee receives necessary reports from the Internal Audit Office and supervises the execution of duties by the Board (excluding members of the Audit and Supervisory Committee).

Organizational structure

Information Security
Basic View

Special Committee

Specifically, yearly educational and awareness raising activities are scheduled to ensure that these measures take root. Thorough educa-

The Special Committee acts as an advisory body to the Board of Directors and consists of five external directors vested with thetion is periodically conducted at the start of employment through compliance training programs to ensure a deeper understanding of pro-

responsibility to deliberate on important transactions and actions with conflict of interest between controlling and non-controlling

cedures, purpose of security rules, basic policies and rules stipulated under the information security management system (ISO 27001)

shareholders.

together with awareness raising videos on information security measures. Additionally, improvement of the effectiveness of risk assess-

Organizational structure

ment is also carried out by inviting external experts to participate in the Risk Management Committee and by assigning employees with

Continual Improvement of Governancespecialized knowledge to the Internal Audit Office.

Methods and Procedures for the Selection of Directors
The process for the selection of directors will take due consideration of directors who are equipped with the knowledge, experience andskills to effectively carry out their role and responsibilities while being mindful of achieving the appropriate size and diversity of the Board.
Candidates for directors will be selected based on these policies and following the deliberations of the Nomination and Remuneration
Committee and be formally proposed to the Board for decision.

Organizational structure

Independence Standards for External Directors
In making the decision for designating external directors as independent directors, the Company selects those who fulfill the proprietary
standards set forth in the Independence Standards and Rules for External Directors for External Auditors.

46

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

47

Foundation of Value Creation

Board of Directors and Management Committee Members
Members of Board of Directors(As of Annual Shareholder’s Meeting held on December 18, 2022)

Issei
AinouraPresident andChief Executive
Officer

Masatoshi
KumagaiRyu
Muramatsu

Chairman and
Director

Director,
Executive Vice
President

Masashi
YasudaHirofumi
Yamashita

Director

Director

Teruhiro
Arai

NorikoInagaki

Yuki
KawasakiDirector

Director

Director

SatoruIsozakiDirector,
Executive Vice
President

Members of Management Committee

ShinichiSugiyama

Tatsuya
Koide

Yuichi
HisadaSenior Managing
Executive Officer

Senior Managing
Executive Officer

Senior Managing
Director

Takashi
MitaniTomoyuki
Murakami

MasaruYoshioka

Senior Managing
Director

Managing
Executive Officer

Managing
Executive Officer

Takeshi
Yoshii

Katsunari
Mukai

Kazunari
TaguchiManaging
Executive Officer

Managing
Executive Officer

Managing
Executive Officer

Directors’ Skill Matrix

PositionTakashiShimahara

Akio Sato

Kazutaka
YoshidaDirector

External Director

External Director

KazuhikoOkamotoYumi
Hokazono

Fumio Kai

External Director

External Director

External Director

Practice of Corporate
GMO-ism*1 Management

IT
and
Security

Risk
Management

Legal
Affairs

Treasury
Payment
andProcessing
Accounting Business

Finance

GlobalAttendance
Investment
ESG andrate of Board(M&A)
Sustainability
meeting*2

Attendance rateof Audit andSupervisory
Committee*2

Attendance rate ofNomination andRemuneration
Committee*2–

Issei Ainoura

President andChief Executive Officer

100%

–

Masatoshi Kumagai

Chairman and Director

88%

–

–

Ryu Muramatsu

Director,
Executive Vice President

100%

–

–

Satoru Isozaki

Director,
Executive Vice President

100%

–

100%

Masashi Yasuda

Director

100%

–

100%

Hirofumi Yamashita

Director

94%

–

–

Teruhiro Arai

Director

92%

–

–

Noriko Inagaki

Director

100%

–

–

Yuki Kawasaki

Director

100%

–

–

Takashi Shimahara

Director

100%

–

–

Akio Sato

External Director

88%

–

–

Kazutaka Yoshida

External Director
Audit and Supervisory
Committee

100%

100%

100%

Kazuhiko Okamoto

External Director
Audit and Supervisory
Committee

100%

100%

100%

Yumi Hokazono

External Director
Audit and Supervisory
Committee

100%

100%

100%

Fumio Kai

External Director
Audit and Supervisory
Committee

92%

100%

–

*1 GMO-ism refers to GMO Internet Group, Inc.’s collective corporate motto consisting of “Venture Spirit Declaration,” “55-Year Plan,” in addition to the “Rules for Senior Manager” and “Laws ofWinning.”*2 Number of Board meetings convened: 17; Number of Audit and Supervisory Committee meetings convened: 11; Number of Nomination and Remuneration Committee meetings convened: 248

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

49

Data

Consolidated Financial Highlights

Consolidated Financial Statements

Achieved 17 consecutive terms of revenue and profit increase since listing in 2005 driven by
growth of non-merchandise EC and offline domain
Conducted a special dividend in addition to ordinary dividend by distributing the profits
from gains from overseas investment

Consolidated Statement of Profit and Loss

Revenue*

Operating Profit*(Unit: ¥ mil)(Unit: ¥ mil)Up

60,00020.7% YoY
50,29850,000Up
18,00012,00030,0009,000

20,000

6,000

10,000

3,000

0

0

10

11

12

13

14

15

16

17

18

19

20

21

22 (FY)

Total Assets, Total Equity, Ratio of Total Equity
Attributable to Owners of Parent

16,24915,00040,00009

25.1% YoY

300,000

09

10

11

12

13

14

15

16

17

18

19

20

21

22 (FY)ROA and ROE
(Unit: %)6.0% YoYUp

273,40760

250,000

50

200,000

40

FY2022
From October 1, 2021
To September 30, 2022

Revenue 1

41,66750,298

Cost of sales(13,568)(16,662)

Gross profit

28,09833,635263

278(15,031)(17,604)

Other expenses

(343

(60)

Operating profit 2

12,987

16,249Financial income

484

1,621

Financial expense

(202)

(230)

Other income Selling, general and­administrative expenses

Ratio of Total Equity Attributableto Owners of Parent(Unit: ¥ mil, %)(Unit: ¥ mil)
FY2021
From October 1, 2020
To September 30, 2021

40

33.8

 Equity method
investment gains

17

184

 Gain from sale of equity
method investment–

16,932 Profit before income
taxes 3

13,28534,756

Income tax expenses(4,302)(10,395)

Profit8,982

24,361

8,818

24,152

164

208

8,982

24,361

30

31.9
319

150,000

30

100,000

89,260 20

50,00010

Profit attributable to:
Owners of parent

20

14.2
10

0

09

10

11 12

13

Total asset (left axis)

14

15

16 17

18

19

20

21

22 (FY)

00

Profit
09

10

11

12

13

14

15

16

17

18

19

20

21

Ratio of Total Equity Attributable to Owners of Parent (right axis)

1

Revenue

Payment Processing Business revenue increased 23.3% YoY fromoffline growth coming from expansion of services and the growth of
non-merchandise online despite the deceleration seen in B2C EC
for some merchandise sectors. Money Service Business revenue
only grew 12.3% YoY due to the cycling through of nesting
demand, despite the growth in transaction for GMO Payment After
Delivery and expansion of lending to overseas FinTech operators.
Payment Enhancement Business revenue grew 31.3% YoY fromheightened demand for the Medical Kakumei byGMO service, areservation management system exclusively for medical institutions, spurred by COVID-19. As a result of the above, total revenue
reached ¥50,298 million an increase of 20.7% YoY.
2

Operating Profit

Segment profit for Payment Processing Business increased by
21.6% YoY as a result of steady growth in high-margin online
payment as well as the expansion of offline payments. Segment
profit for the Money Service Business increased by 17.8% YoYfrom Early Payment service that increased in line with the growthof Payment Processing Business despite the increase in credit
cost from increased transactions for GMO Payment After Delivery.
The Payment Enhancement Business recorded a positive profit
thanks to the shrinking losses of GMO Medical Reservations
Technology Co. Ltd. that provides Medical Kakumei byGMO andthe growth of online advertising service. As a result of the above,
total operating profit reached ¥16,249 million, up 25.1% YoY, andoperating profit margin was 32.3%.
3

Profit before Income Taxes

Profit before income taxes reached ¥34,756 million an increaseof ¥21,470 million, or 161.6% YoY, from the sale of all the shares
owned in former equity method affiliate 2C2P Pte. Ltd.

22 (FY)

Ratio of pretax profit to total asset (ROA)

Total equity (left axis)

Non-controlling interests

K ey Points of Consolidated Statement ofProfit and Loss

Ratio of net profit to Total Equity Attributable to Owners of Parent (ROE)

Consolidated Statement of Comprehensive Income(Unit: ¥ mil)

The Company places management priority on sustainably securing the necessary retained earnings for future business expansion and for strengthening the organization, as well as sustaining
a stable level of shareholder return. The annual ordinary dividend
for the fiscal year ending September 2022 (FY2022) is ¥79 per
share, which is ¥13 per share higher than the initial guidance as
the fiscal year’s financial results exceeded initial forecast. In addition, the Company will also pay a special dividend of ¥81 pershare to reflect the divestment of all the shares of the former
equity-method affiliate 2C2P Pte. Ltd. and to recognize the 10
years of overseas business expansion as well as to express our
gratitude to the support from our shareholders that contributed tothe overall earnings growth since GMO-PG’s listing. This brings
the total annual dividend to ¥160 per share.

Dividend(Unit: Yen)

180

160

150

81

120
90
60

79

30
0

18

Ordinary dividend

50

19

20

Special dividend

GMO Payment Gateway, Inc.

21

22

(FY)

* Titles of charts are based on IFRS standards. Figures before FY2017 arebased on J-GAAP, and assets refers to total assets, shareholders’ equity refers
to net assets, total equity attributable to owners of parent to total assets refers
to equity ratio, return on assets using profit before income taxes (ROA) refers
to ratio of ordinary income to total assets, and return on equity using profit
attributable to owners of parent (ROE) refers to return on equity.
* IFRS standards have been adopted from FY2018, and the figures for FY2017
are restated on the same basis.

ProfitOther 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 income of equity method affiliates   Total of items that will not be reclassified to profit or loss
Items that will be reclassified to profit or loss   Exchange differences on translation of foreign operations   Share of other comprehensive income of equity method affiliates   Total of items that will be reclassified to profit or loss
Other comprehensive income after income taxes
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Total

FY2021
From October 1, 2020 to
September 30, 2021

FY2022
From October 1, 2021 toSeptember 30, 2022

8,982

24,361

102
546
648

669
5,986
6,655

271
79
350
999
9,982

5,060
(186)
4,874
11,53035,891

9,814
167
9,982

35,671219
35,891

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

51

Data

Consolidated Financial Statements

Consolidated Balance Sheet

Key Points of Consolidated Balance Sheet(Unit: ¥ mil)(Unit: ¥ mil)

FY2021
FY2022(AS of September 30, 2021) (As of September 30, 2022)

FY2021
FY2022(AS of September 30, 2021) (As of September 30, 2022)

AssetsLiabilities

Current assets

Current liabilities  Cash and cash
equivalents

104,523

113,967  Trade receivables andother receivables

10,308

13,964   Advance payments

45,321

54,422   Accounts payable–trade

5,230

5,595

   Accrued expenses

20,53723,280  Deposits received

84,59391,410  Borrowings

15,13817,000   Other financial liabilities

621

1,014

   Income taxes payable, etc.

2,602

4,916

327

320

   Accrued revenues

24,89330,331  Inventories

1,664

1,532

  Deposits to affiliates andsubsidiaries

2,000

16,500  Provisions   Other financial assets

455

12,917   Other current liabilities

3,662

4,281

   Other current assets

335

620

  Non-current liabilities

132,714

147,820   Total current assets

189,503244,256

19,593

19,678Non-current assets  Property, plant andequipment

3,542

5,521

6,942

  Investments accounted forusing equity method

4,593

8,608

  Trade and otherreceivables

4,231

3,501

   Other financial assets

6,005

5,095

   Deferred tax assets

1,529

1,342

   Other non-current assets

122

117

   Total non-current assets

25,952

29,150Total assets

215,455

273,407

Total assets increased by ¥57,951 million from the end of the pre-Equity increased by ¥31,440 million from the end of the previous

vious consolidated fiscal year to reach ¥273,407 million from theconsolidated fiscal year balance to reach ¥89,260 million. This wasincrease in cash and cash equivalents, increase in advances paid

mainly due to the increase from recording a profit of ¥24,361 million

in MSB due to the expansion of Payment Processing Business andand the recognition of other comprehensive income of

the increase in other financial assets.

¥11,530 million arising mainly from fair value measurements offinancial instruments held by associates accounted for using the

Liabilities

equity method and foreign currency translation difference of over-Total liabilities increased by ¥26,511 million from the end of theseas business activities, which was partially offset by the decline inprevious consolidated fiscal year to reach ¥184,146 million fromretained earnings of ¥4,474 million from dividend payouts.

the increase in accrued expenses caused by increased transactions of GMO Payment After Delivery and the increase in borrowings of ¥7,841 million.

AssetsLiabilities and Equity(Unit: ¥ mil)(Unit: ¥ mil)

6,000

2,889

2,342

  Provisions

130

130

   Deferred tax liabilities

78

5,642

  Other non-current liabilities

2,209

2,531

   Total non-current liabilities

24,92036,326

Total liabilities

157,635

184,146

215,455

Current assets
244,256

Current assets
189,503

Non-current
assets29,150Non-current
assets25,952
FY2021(As of September 30, 2021)

FY2022(As of September 30, 2022)  Capital stock

13,323

13,323  Capital surplus

15,191

15,272Current liabilities
147,820
Non-current
liabilities
36,326

Non-current
liabilities
24,920Equity57,820Equity89,260

FY2021(As of September 30, 2021)

FY2022(As of September 30, 2022)  Retained earnings

26,54649,424   Treasury stock(1,152)(1,152)   Other items of equity

1,937

10,255  Total equity attributable toowners of parent

55,845

87,122  Non-controlling interests

1,974

2,137

Total equity

57,82089,260Total liabilities and equity

215,455

273,407

Operating cashflow amounted to ¥7,656 million. This was mainlythat was partially offset by cash inflows from proceeds from saledue to cash outflow from the increase in advances paid andof investment securities. Financing cash flow amounted toincome tax payments that was offset by the cash inflow from

¥2,635 million. This was mainly due to cash inflow from net

profit before tax. Investing cash flow amounted to –¥2,443 million.

increase in short-term borrowings and increase in long-term

This was mainly due to cash outflow of payments into deposits toborrowings that was partially offset by cash outflow fromsubsidiaries and affiliates and payments into restricted deposits

dividend payouts.
(Unit: ¥ mil)
FY2021
From October 1, 2020 to September 30, 2021

FY2022
From October 1, 2021 to September 30, 2022

(6,343)

7,656

Net cash provided by (used in) investing activities

2,230(2,443)

Net cash provided by (used in) financing activities

12,781

2,635

Net cash provided by (used in) operating activities

Increase (decrease) in cash and cash equivalents

GMO Payment Gateway, Inc.

215,455

Current liabilities
132,714

Consolidated Statement of Cash Flows

EquityTranslation differences of cash and cash equivalents

52

273,407273,40720  Borrowings   Other financial liabilities  Goodwill and intangible
assetsEquityTotal current liabilities  Corporate bonds

3,948

Assets

23

1,596

8,693

9,443

Balance of cash and cash equivalents at the beginning of the period

95,830104,523

Balance of cash and cash equivalents at the end of the period

104,523

113,967

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

53

Data

Company Information
Company Overview (As of September 30, 2022)
Name	GMO Payment Gateway, Inc
Listed exchangeTokyo Stock Exchange Prime Market(Securities code: 3769)
Establishment
Head office

March 1995
 HIBUYA FUKURAS 15F 1-2-3
S
Dogenzaka, Shibuya-ku,
Tokyo 150-0043, Japan

Consolidated
paid-in capital¥13,323 million

Consolidated
capital surplus¥15,272 million

Number of
employees

799 (Consolidated)

Stock Status (As of September 30, 2022)
Memberships	Japan Consumer Credit
Association (JCA)
Japan Multi-Payment Network Promotion
Association (JAMPA)EC Payment Forum
Japan E-Commerce Consultant
Association (JECCICA)

Number of affiliates	13 consolidated subsidiaries
4 affiliates accounted forby equity method

December 31, March 31,
June 30 and September 30

Annual meetingof shareholders

Annually in December

Shareholder
registryadministrator

Sumitomo Mitsui Trust Bank, Limited

No. of shareholders

Financial institutions

Other domestic institutions

Individuals and others

7,474

24.75% (18,946,205 shares)

40.84% (31,268,904 shares)

4.08% (3,125,951 shares)

Financial instruments business operators

Foreign institutions, etc.

0.70% (538,871 shares)

29.61% (22,672,323 shares) 0.01% (5,291 shares)

Listed exchange Tokyo Stock Exchange
Method ofThrough electronic public notices
public notices	Notices published athttps://corp.gmo-pg.com/en/ir/	(However, when electronic public notices
cannot be published due to an accident or any
other inevitable circumstances, we will publish
them in the Nihon Keizai Shimbun newspaper)

Administrator’s
Sumitomo Mitsui Trust Bank, Limited,contact
Stock Transfer Agency Businessinformation	Planning Department
8-4, Izumi 2-chome, Suginami-ku, Tokyo
0120-782-031 (toll free)Announcements
1. Points of note	(1) In principle, procedures such as change of shareholder address, bank remittance specifications for dividends and purchase requests are handled by the accountmanagement institution (securities company, etc.) where the account was opened. Please contact the securities company or other such institution at which you opened
your account. Please note that the shareholder registry administrator (Sumitomo Mitsui Trust Bank, Limited) does not handle such matters. (2) Unpaid dividends canbe received at the main branch of Sumitomo Mitsui Trust Bank.
2. Dividend calculation statements
	The “Dividend Calculation Statement” also serves as the “Notice of Payment” compiled as per regulations specified in the Act on Special Measures Concerning Taxation.
After receiving payment of the dividend, the Notice can serve as confirmation of the dividend amount and as information used when filing income taxes. Shareholders who
receive dividends through their securities accounts (pro-rated method for number of shares) should contact the securities company that performs the transactions for details.
3.	For procedures pertaining to shares registered in special accounts, please contact the institution that administers special accounts, Tokyo Securities Transfer Agent Co., Ltd. 
Mailing address and phone number
Securities Transfer Agent Co., Ltd. Business Center 2-8-4 Izumi, Suginami-ku, Tokyo 168-8522 Tokyo
0120-49-7009 (toll-free)

Treasury shares

Major Shareholders (As of September 30, 2022)
Shares owned(shares)

Stock ownership ratio(%)

GMO Internet Group, Inc

31,172,200

40.72

The Master Trust Bank of Japan, Ltd. (Trust account)

7,802,200

10.19

Custody Bank of Japan, Ltd. (Trust account)

5,821,300

7.60

Sumitomo Mitsui Banking Corporation

2,501,600

3.26

SSBTC CLIENT OMNIBUS ACCOUNT

947,178

1.23

STATE STREET BANK WEST CLIENT - TREATY 505234

893,648

1.16

The Dai-ichi Life Insurance Company, Limited

855,100

1.11

BNYM AS AGT/CLTS 10 PERCENT

853,451

1.11

Issei Ainoura

800,000

1.04

The Master Trust Bank of Japan, Ltd. (BIP trust accounts for Director’s remuneration: 75,574 accounts)

674,305

0.88

2021

2022

Name of shareholder

Notes for Shareholder

Record date ofdividends ofsurplus

Total number of shares issued 76,557,545 shares

Numbers of Shares by Shareholder category

Major subsidiaries
GMO Epsilon, Inc.
	GMO Payment Service, Inc.
GMO Financial Gate, Inc.
GMO-Z.com Payment Gateway Pte. Ltd.

Business outline	Comprehensive payment-related services
and financial services

Business year	October 1st~September 30th of thefollowing year

Total number of authorized shares 102,400,000 shares* The stock ownership ratio is calculated using total shares outstanding less treasury shares (5,291 shares)

Share Price Trend(Unit: ¥)17,50015,00012,50010,000
7,500
5,000
2,500
0

2015

2016

2017

2018

2019

2020

* A 1:2 stock split of ordinary shares was carried out effective October 1, 2018. The share price prior to this date is adjusted on the same basis.

* At the annual meeting of shareholders held on December 20, 2015, it was decided that the Board of Directors would be the decision-making body for dividends of surplus, and that the record dates for these dividends would be December 31, March 31, June 30 and September 30. As a result, we are able to distribute dividends of surplus on four occasions throughout the year. However, in order to ensure the retained earnings that our business structure requires, our plan calls for the year-end
dividend to be the single dividend of surplus distributed during the year.

54

GMO Payment Gateway, Inc.

Integrated Report 29th Fiscal Year 2021.10.1–2022.9.30

55

GMO Payment Gateway, Inc.
URL:https://www.gmo-pg.com/en_w/

Tokyo:FUKURAS Office (Head Office)
SHIBUYA FUKURAS 15F
1-2-3 Dogenzaka, Shibuya-ku, Tokyo, 150-043 JAPANTEL: +81-3-3464-2740
Humax Office
Humax Shibuya Building 7F
1-14-6 Dogenzaka, Shibuya-ku, Tokyo, 150-0043 JAPANTEL: +81-3-3464-2740

Osaka:

Grand Front Osaka Tower 23F
3-1 Ofuka-cho, Kita-ku, Osaka, 530-0011 JAPANKyushuTenjin Asahi Building 5F
3-4-7 Tenjin, Chuo-ku, Fukuoka, 810-0001 JAPANCorporate Movie | Creating the future through payment
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