Notice Concerning the Acquisition of Shares of Epsilon Corporation (subsidiary)

May 13, 17
GMO Payment Gateway

The Company hereby announces that at the Board of Directors meeting held today (May 13, 2017), the Company has resolved to acquire 1,960 shares (100% ownership) of Epsilon Co., Ltd. and convert it into subsidiary.

Reasons for the share acquisition

Epsilon Co., Ltd. provides various payment services such as Credit card payment, CVS Payment, prepaid card payment, and online banking payment to approximately 300 merchants. The acquisition of shares in the company will enable us to expand our number of merchants and increase the added value of our services by providing a variety of payment processing services to our existing merchants.

Outline of the company to be transferred (Epsilon Corporation)

Company Name: Epsilon Corporation
Representative: President & Chief Executive Officer Shinichi Nishikubo
Location: 1-30-5 Hamamatsucho, Minato-ku, Tokyo
Date of establishment: September 26, 14
Principal Businesses
payment processing company of online sales, payment collection agency, and incidental thereto
Provision of various payment services for the business.
We support a wide range of payment methods, including credit cards, more than 31,000 convenience stores nationwide, prepaid cards, and online bank.
(6) Fiscal year-end: March
(7) Number of employees: 1 (as of March 31, 17)
Main Offices: Tokyo
Amount of capital: 98 million yen
Total number of shares issued: 1,960 shares
Shareholder composition and ownership ratio: Skymark Airlines Co., Ltd. 100%
performance Trends in the Recent Fiscal Year

(Unit: 1,000 yen)

	March 16	March 17
sales	9,587	17,807
gross profit	6,519	5,289
operating profit	▲23,239	▲4,001
Ordinary Income	▲23,238	▲3,995
net income	▲23,418	▲4,175
Total assets	86,139	661,574
Shareholders' Equity	72,892	68,716
dividend per share	0	0

Acquisition of shares

We will acquire all of the shares held by Skymark Airlines Co., Ltd.

Company Name: Skymark Airlines Co., Ltd.
Representative: President & Chief Executive Officer Shinichi Nishikubo
Head office location: 1-30-5 Hamamatsucho, Minato-ku, Tokyo
Principal Business: Scheduled Air Transportation Business
Relationship with the Company None

Number of shares acquired, acquisition price, and status of shares held after acquisition

Number of shares held before transfer: 1,960 shares (0% ownership) (Number of voting rights: 0 shares)
Number of shares acquired: 1,960 shares (Acquisition price: 118 million yen) (Number of voting rights: 1,960 shares)
Number of shares held after transfer: 1,960 shares (100% ownership) (Number of voting rights: 1,960 shares)