July 15 2021

GMO Financial Gate, Inc.

ESG initiatives in GMO Financial Gate GroupThe GMO Financial Gate Group provides cashless payment services to create highly
efficient and convenient societies based on our mission to leverage our expertise inhelping customers create value.
We contribute to the wider acceptance of cashless payments in Japan through secureand convenient payment infrastructure, striving to become the No.1 cashless platformer
and a force for transforming society.
Based on the concept that a company is its people, we support the growth of ourexecutives and employees as human beings through human resources development andwelfare programs. We strive to create an organization that moves forward together toachieve our business goals.

Environment
Creating an Eco-Friendly Society
The GMO Financial Gate Group provides eco-friendly, cashless solutions in offline
payment markets, as opposed to traditional cash payments. Our solutions solve
difficulties in society and in business enterprises, contributing to the growth of both.
The role of cashless payment in offline markets has become even more important due
to the spread of COVID-19. In response to this situation, we continue to invest in
businesses that will further the penetration of cashless payments in Japan and establish
an eco-friendly society.

In addition to encouraging the adoption of cashless payments, we provide several ecofriendly solutions through our offline payment platform, including the benefits below.
・Use of recycled paper as receipts when physical receipts are required
・Use of eco-friendly components in payment terminals

1SocialHuman Resources
We believe the source of our corporate value is a diverse base of human resources. byhiring skillful employees and providing education through variety of programs, we aim tosolve social problems, raise enterprise value, and achieve continuous growth.

Vocational Training/Welfare Programs(Career Design Program)
A system in which each employee declares their own ideas and approach to their futurecareer.
(360-Degree Feedback Program)A program by which employees evaluate their bosses anonymously.
(Initiatives to Combat the Declining Birthrate in Japan)
We offer financial support, flexible work systems, and a number of other support
programs for employees, beginning at the marriage stage and continuing through theraising of families.

Work-Style Reform
We believe a company is a place to foster people. Based on this believe we strive forwork-style reform in Japan, offering training and welfare programs as part of becoming agroup in which employees can maximize their potential. We endeavor to share this vision
among all employees to achieve business and corporate growth.

As an example, we encourage work-from-home systems for employee safety,
pregnancy/maternity leavy, short-time work for childcare, re-employment afterretirement, etc.

2Governance
Basic Principles
The GMO Financial Gate Group strives for fair and transparent business operations. To
this end, we focus on establishing positive relationship with shareholders, customers,
local communities, employees, and other stakeholders to enhance company value
through business activities oriented toward the longer term.
We believe efficiency, integrity, and transparency in corporate management arenecessary to enhance corporate value. These are crucial and basic factors that make up
corporate governance, and we place significant importance on these factors for stablecorporate management.
In this way, we strive for stable corporate governance through positive relationship withall stakeholders based on compliance. We have also established a speedy and accurate
decision-making system capable of handling sudden changes in business environment. At
the same time, we pursue fair and transparent business operations in our efforts toachieve strong corporate governance.

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Board of Directors
The GMO Financial Gate board of directors consists of seven directors including one
outside director. As a rule, board meetings are held monthly and when necessary formaking decisions about important matters.
The three members of the Audit and Supervisory Board attend board of directors toobserve and monitor the process of board decision-making.
The company’s articles of incorporation provide for eleven or fewer directors.

Executive Officer Meeting
The board of directors is the primary decision-making body of the company. The board
meets monthly to decide basic management policies and other important matters
stipulated in the Companies Act.
In addition to board of directors, the company holds executive officer meetings, which
consists of all directors and executive officers. Meetings occur every Friday to ensure
speedy decision-making and flexible operations.

Audit and Supervisory Board
GMO Financial Gate has adopted a system that includes an Audit and Supervisory
Board. The following are the bodies stipulated in Companies Act:・Audit and Supervisory Board: Audit function
・Board of directors: Decision-making function/supervisory function
・Representative director: execution function
The Audit and Supervisory Board consists of three members, including two externalmembers. Meetings are held monthly as a forum for members to discuss issues related
to compliance and observations related to the operation of board of director meetings.
The Audit and Supervisory Board cooperates with internal auditors and accounting
auditors (CPA) to share information and experience supporting efficient audit processes.

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Director Compensation
We define the role of directors as enhancing corporate value by designing groupmanagement policies and strategies, and by advising and supervising employees.
Director compensation is determined in board of directors based on individual
contribution to the company, length of service, contribution to business performance,etc.
Compensation for members of the Audit and Supervisory Board consists of a fixedamount determined by the Audit and Supervisory Board. We ensure the independence ofmembers of the Audit and Supervisory board through fixed compensation which does notfluctuate based on business performance.

Investor Relations
We strive to conduct transparent and fair investor relations activities via timely
disclosure and announcements to investors, endeavoring to achieve the purpose ofcorporate governance.
We hold information meetings related to financial results on a quarterly basis after wepublish our financial results. We also upload financial report presentation materials on
TDnet and our own website to ensure access to financial results information for all
interested parties on a timely basis.
We disclose information fairly and actively through investor relations meetings (oneon-one meetings and small meetings) with sell-side analysts and institutional investors
after our disclosure of financial results.

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