Financial Results Briefing for FY2023
Strengthening the business foundation tosustain operating profit CAGR growth of 25%

November 14, 2023
75th Investor MeetingSafe Harbor Statement for Forward Looking Statements

The contents of this document is based on generally recognizedeconomic and social conditions, as well as certain assumptions judged
to reasonable by GMO Payment Gateway as of November 14, 2023.
Please note that the contents are subject to change without prior noticein the event of changes in the business environment, etc.
Abbreviations used in this documents are as follows:
GMO-PG
GMO-EP
GMO-MR
GMO-PS
GMO-FG
GMO-CAS
Merchandise EC
Non-merchandise EC

PF
MSB
BaaS

: GMO Payment Gateway: GMO Epsilon: GMO Medical Reservation Technology: GMO Payment Service: GMO Financial Gate
: GMO Card System: Apparel, food/beverage, cosmetic/health food, delivery/newspaper,
daily goods/office supplies and C2C, etc.
: Digital content/telecommunication, utility, travel/ticket, insurance,
membership fees/services, etc.
: Platform: Money Service Business: Banking as a Service

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

2

Agenda1. Summary of Financial Results for FY2023

2. Earnings Guidance for FY2024
3. Growth Strategy and Initiatives in Focus Areas
4. Sustainability

5. Financial Highlights and Reference Materials

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

3

1. Summary of Financial Results for FY2023

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,41.1 Summary of Consolidated Results
Exceeded 25% growth by monetizing and acquiring projects that were initiallyunconfirmed at the start of the FY（¥ mil）

FY2022

FY2023

FY2023 Guidance（Achievement %)% YoYRevenue

50,298

63,119+25.5%

59,100(106.8%)Gross Profit

33,63539,985+18.9%－

Operating Profit

16,24920,312+25.0%

Pre-tax Profit

34,756

20,636-40.6%

Pre-tax profit excl. special factors*1

16,802

Profit24,152

13,475-44.2%

18,40322,731+23.5%－

Ordinary dividends

¥79

¥89

+¥10

¥81
¥160

－
¥89

－
-¥71

(¥7 above plans)Special dividends
Total

attributable to owners of parent

EBITDA*2
DPS(¥/shr)Operating Stores*3*4
Operating terminals*3(end-FY2023)
KPI (% YoY)

146,539 (+11.0%)
298,818 (+49.8%)

Q4 FY2023(% YoY)20,311(100.0%)18,837(109.6%)
12,368(109.0%)+22.8%

16,118(+20.8%)
10,204(+15.2%)4,290(+24.0%)4,681(+10.0%)2,959(-2.1%)
4,932(+22.0%)Consol. TRX Volume(Q4 FY2023)*3*5

Consol. TRX Value(Q4 FY2023)*4

Approx. 1.67 billion(+25.8%)

Approx. ¥3.9 trillion(+28.9%)ーo.w., online approx. 1.50 bn (+22.9%) o.w., online approx. ¥2.6 trn (+19.2%)*1 Special factors are gain on sale of affiliate accounted for using equity method of ¥16,932 mil and foreign exchange gains of ¥1,022 mil. *2 Sum total of operating profit and depreciation. *3 The figure for operating stores is for GMO-PG and GMOEP, and the figures for operating terminals are for GMO-FG. Consolidated TRX volume and value figures are the sum totals for GMO-PG, GMO-EP, GMO-PS and GMO-FG. The online payment figures are the sum totals for GMO-PG, GMO-EP and
GMO-PS. *4 The standards for recognition of the number of operating stores has been revised from Q4 FY2023. Figures exclude a specific case and fincode byGMO. If figures for the specific case is included, the number of operating stores for thesame period would be 579,164 stores, up 23.2% YoY. *5 TRX volume is calculated based on fee revenue standards, which in the case of online consists of multiple (1 to 3) transactions per payment including authorization and actual proceedamount. Offline transaction volume is based on one transaction per payment.

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

5

1.2 Overview of FY2023
Progress in laying groundwork for a high and sustainable growth
while tackling challenges
Highlights
Consol.

Challenges and responses

・Achieved plans with revenue up 25% YoY, OP up 25% YoY ・Merchandise EC transaction value growth stalled at 8.6％
(revenue excl. initial is up 20.4％ YoY)→Strengthen expansion into non-merchandise and partner
・Consol. TRX value approx. ¥15 trn (+31.8% YoY)
strategy

・Implemented Open API for mainstay payment service*1
・Progress in industry-specific and shift towards large
customer・Made foothold in B2E domain
・Overseas lending grew 36.3％ *2 YoY led by India and US

・Booked one-time expense due to system trouble in Q2,
received insurance payment in Q3. Net impact of -¥424 mil→ Determined the cause and ensured non-recurrence・H2 online payment revenue grew only 16.5% YoY→initiatives under to fill in gaps between projectmonetization

GMO-EP・Gradually progressing in customer acquisitions withrollout of payment service targeting start-ups and nonmerchandise domain*3

・Revenue from SME domain only grew 0.7% YoY*5→ Targeting acquisition of anchor customers in each nonmerchandise vertical
Updating revenue model

GMO-PS

・Revenue growth accelerated from acquisition of newlarge-scale merchant(revenue 1H: 21.4% YoY, 2H: 28.0% YoY)

・Delay in rolling out new BNPL service
・Rise in credit cost
→ Improving H2 trend from credit optimization

GMO-FG・Operating terminals up approx. 100K units or 49.8% YoY,
thanks to large projects such as Japan Post Co., Ltd.
・Recurring-model revenue *4 grew 54.6％ with increase intransactions

・ Expanding human resource base for medium-to-longterm business expansion→ Strengthen recruitment and talent development

GMO-PG*1 Refers to PG Multi-payment service. *2 Calculated by excluding a one-time revenue recorded in previous fiscal year. If included, the revenue growth would be 28.9% YoY.*3 Refers to fincode byGMO.
*4 Figures for recurring-model revenue is after consolidated eliminations at GMO-FG. Recurring-model revenue is defined as the sum total of stock, fee and spread revenues and excludes initial revenues that mainlycomprised of payment terminal sales. *5 Figures are for GMO-EP non-consolidated.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

1.3 Waterfall Chart of Consol. TRX Value (Annual)

Online transaction value grew 21.1% YoY from normalizing
growth rates in utilities
Offlinepayment

Online payment

GMO-PG
Market*1+21.1%+8.7%

Consol. +31.8%（% YoY）（¥ trn)

GMO-PG
Market*1+68.6%+14.7%

Non-merchandise EC+28.9%+21.0%

Merchandise EC
+8.6%
+1.0%
¥15.0 trn*3

15.0

GMO-PS
Merchandise*4

GMO-EP

Other nonmerchandise

14.0

Utility
Impacted by local govt. project and electricity
rate reductions (small revenue impact)
13.0

Travel/ticket
Increased outings and travelling

Digital content/telecom
Growth in major telecom carrier

12.0

GMO-PG¥11.4 trn*3
GMO-FG*2

11.0
0

FY2022

Increased transaction from strong terminal sales and increasingtransactions from normalization of economic activities

FY2023*1 Offline market is based on Ministry of Economy, Trade and Industry’s “Survey of Selected Service Industries. Figures for offline market show the % YoY growth for the sum of October 2022 to August 2023, as
September 2023 data is not available as of this writing. EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income and Expenditure Survey,” figures are categorized into merchandise andnon-merchandise according to the Company’s standards using the Internet expenditure amount per household.
*2 Excludes GMO-PG’s offline payment (GMO Cashless Platform) *3 Rounded off to nearest trillion of yen. *4 Utility-linked financial institutions.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

7

1.4.1 Waterfall Chart for Consol. Revenue (Annual)

Growth of 25.5% from offline and BNPL offsetting the low
growth of merchandise EC(% YoY)（¥ bil）

GMO-FG Consol.*1*2+54.5%

GMO-PG*3

GMO-PS*3+18.2%+24.6%

GMO-EP
Consol.*1*3+3.8%

Consol.
+25.5%¥63.1 bn
Other

60

GMO Payment After
DeliveryMSB+17.0%BaaS
Support Commission rate change andacquisition of large merchant+12.6%

55

Merchandise EC +11.4%
Large merchants and Food/beverage were strong

Non-merchandise EC +22.5%¥50.2 bn

Utility (+27.7%), travel/ticket (+44.7%), growth of GMP*5 etc.,50

H2 grew 19.9% due to hiatus caused by enlarging project size

Recurring-model revenue*4 +54.6%
Operating terminals and pickup in offline consumption
45

Initial +55.2%
Strong offline terminal sales including large clients0
FY2023

FY2022*1 GMO-FG consolidated is comprised of GMO-FG, GMO-CAS. GMO-EP consolidated is comprised of GMO-EP, GMO-MR. *2 Figures present consolidated financial results of GMO-FG.
*3 Figures of each company are before the eliminations from consolidating into GMO-PG.
*4 Recurring-model revenue consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales. *5 GMP stands for global major players.

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

8

1.4.2 Waterfall Chart for Consol. OP and Pre-tax Profit (Annual)OP grew 25.0% from revenue growth offsetting the increase in some SG&A items
OP Waterfall Chart

Pre-tax Profit Waterfall Chart（¥ mil）

Up 25.0% YoY
GPincrease+6,349

SGA
increase-2,287Other
Other
revenue
expenseincreaseincrease+24-23（¥ mil）

Down 43.2% YoY

EquityFinancial Financial methodOPincomeexpense profit
increase decrease increase
decrease+4,063 -599
-574
-76

20,312

Decline in gain onsale of equity
method affiliate-16,932

34,756・Interest
payments -¥52 mil

16,249・FX loss・Personnel cost-¥474 mil-¥427 mil・Increase in prov. for
doubtful accounts-¥657 mil・One-time expense-¥424 mil・Interest on overseas
deposits+¥949 mil

20,636・FX loss/gain recorded in(partial reversal in Q3 ofprevious FY

one-time expense ¥750 mil,-¥1,022 mil

・Gains on inv. partnerships

booked in Q2)

recorded in previous FY -¥371 mil

・CoS ratio increase・recorded gain on sale from-¥2,223 mil・Revenue increase +¥8,573 miltransfer of all shares of 2C2P
in previous FY

22/累3QOPFY2022

営業利益

粗利（増減）

販管費（増減）その他の収益（増減）その他の費用（増減）23/累3Q OP
FY2023

営業利益

FY2022Pre-tax Profit

FY2023Pre-tax Profit* The “+” and “-” sign denote the direction of the impact to operating profit and pretax profit.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

91.5.1 GMO-PG Non-consolidated Performance

Revenue grew 14.2% from hiatus caused by large-scale projects
GMO-PG Non-consolidated Revenue & OP*1（¥ mil）

Over 25% YoY

MSB revenue (left axis)% YoY

BaaS Support revenue (left axis)
6,000

Merchandise EC revenue (left axis)
7,000

OP (right axis)
5,000

4,000

4,000
3,000

3,000
2,000
2,000

1,000
1,000

0

Q3 FY23Q4 FY23+23.6%+17.2%+14.2%

Online payment+19.1%
Merchandise EC+9.5%
Apparel+4.4%
Food/beverage+13.8%
Cosmetic, Health food +3.8%
Non-merchandise EC +25.5%
Digital content/telecom +16.9%
Utility+11.3%
Travel/ticket+53.6%
Sales agent, other +34.9%+17.9%+11.8%+0.9%+20.6%+7.3%+21.2%+20.0%+27.1%+44.4%+17.6%+15.2%+9.9%+2.3%+17.8%+8.7%+18.3%+18.7%+28.6%+36.9%+ 9.3%BaaS Support*2+43.0%

+5.3%

+2.1%

MSB
+20.9%
Remittance service+13.5%
Early Payment service +23.0%
Overseas lending+37.0%+13.0%+14.6%+15.7%+41.4%+10.8%+18.2%+16.1%+47.1%*3

Revenue*1

6,000

5,000

Q4 FY22百万

百万

Non-merchandise EC revenue (left axis)

0
21/4Q
22/1Q
22/2Q
22/3Q
22/4Q
23/1Q
23/2Q
23/3Q
23/4Q
*1 Figures for revenue and operating profit are before consolidated eliminations. *2 Figures for BaaS Support is the sum total of Ginko Pay and Processing PF.
*3 Figures show the consolidated revenue for overseas lending. Calculated by excluding one-time revenues recorded before the previous term. PG non-consol. would be up 2.2% YoY for Q4 FY2022 and down 19.7%
for Q3 FY2023, and down 22.1% for Q4 FY2023.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

1.5.2 Performance of GMO-EP, GMO-PS and GMO-FG
FY2023 snapshot: EP earnings bottomed out, PS earnings improving andFG’s high growth continues
Consol. GMO-EP*1*2(% YoY)

RevenueOP(¥ mil)

GMO-PS*2Q4 FY22Q4 FY23

+0.7%
-0.1%

+7.8%
+5.3%
(stores)

Revenue (left axis)
Operating stores (right axis)*460,000

RevenueOP(¥ mil)Consol. GMO-FG*1*3
Q4 FY22Q4 FY23+10.5%－+25.4%－

Revenue (left axis)

2,500

RevenueOP(stores) (¥ mil)

Q4 FY23+26.5%+44.1%+37.1%-18.7%

Revenue (left axis)

5,000
2,500

2,000

2,000

1,500

1,500

(units)400,000

Operating terminals (right axis)

Operating stores (right axis)

1,500

Q4 FY224,000
300,000

40,0001,000

3,000
200,000

500

1,000

1,000

2,000

500

500

1,000

0

0

20,000100,000

00

Progress in new acquisitions of start-ups
Negatively impacted by merchandise EC
market conditions（GMO-EP non consol. +2.6%/MR+76.1%）

Revenue increased from commission rate
revision and ramp up of major merchantControlled increase in credit cost
Q4 losses shrunk securing a positive profit
for the full year00

Q4 actual exceeded plans
Recurring-model revenue *5 up +49.4%
Full year OP up +51.3%*1 GMO-EP consol. includes GMO-EP and GMO-MR. GMO-FG consol. includes GMO-FG and GMO-CAS. *2 Figures are before GMO-PG consolidated eliminations. *3 Figures are taken from GMO-FG’s consolidated financial
results. *4 Figures exclude fincode byGMO. *5 Recurring-model revenue is the sum total of stock, fee and spread and excludes initial which mostly consists of terminal sales). consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

11

1.6 Revenue by Business Model (Annual)Fee revenue grew 30.1% and initial grew 55.5% from expansion of offline domain
Factors*% YoY(¥ mil)63,19960,00050,00040,00050,298FY2022

FY2023

Spread

+13.1%+14.7%＋ Online payment（PG）＋ Overseas lending－ Online payment（EP）－ GMO Payment After Delivery

Fee+25.8%+30.1%＋ Offline payment* Special factor: rate revision of
GMO Payment After Delivery

Stock+20.4%+19.0%＋ Offline payment－ BaaS Support－ Online marketing service

Initial+38.0%+55.5%＋ Terminal sales expanded fromlarge-scale project

24,52021,381

30,00017,772

13,66320,000

9,422
10,0007,916
11,4037,335
0FY2022

InitialFY2023Stock

Fee

Spread* The “+” signs indicate services with growth rates that are higher than 25% or if the growth rate is higher than that of the business model; the “-” indicates growth rates that are lower.

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

12

1.7 Segment Results (Annual)

MSB profit grew only 11.6% due to higher credit cost, etc.,
despite revenue increase in all segments
Segment Profit

Segment Revenue
% YoY

% YoY
(¥ mil)(¥ mil)FY2022

FY2023

63,119+20.7%+25.5%

14,088 1,149+31.3%+21.9%FY2022

FY2023+25.1%+25.0%

288 Positive+65.6%

profit+ GMO-MR+17.8%+11.6%+21.6%+20.3%

20,31225,00060,00050,298+ GMO-MR+47.3%

50,000942
11,402+12.3%

40,0002,751
16,249174

20,0002,466+23.6%+ Overseas lending15,000+ GMO Payment
After Delivery

30,00010,00047,91320,00021,10137,978+23.3%+ Offline payment+ Non-merchandiseEC

10,00017,539+26.2%
5,000+ Offline payment+ Non-merchandise EC
ｰ Grew 22.7% excl.
one-time expense in Q2

00
22/累4QFY2022

FY2022

23/累4QFY2023■ Payment
Processing
Business
Money Service
Business
Payment
Processing Business■ Payment
Enhancement
Business■ Money Service Business

FY2023■■決済代行事業
Payment Processing■ 金融関連事業
Business ■ Money Service Business
Payment
Enhancement
Business■■決済活性化事業
Payment Enhancement
Business

Operating Profit (before eliminations)

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

13

2. Earnings Guidance for FY2024

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,142.1 Earnings Forecast for FY2024

OP target for FY2024 is ¥25.0 bn
Earnings forecast for FY2024（¥ mil）

FY2023

FY2024 Forecast% YoY

Revenue

63,11973,286+16.1%

Gross Profit

39,98545,496+13.8%

Operating Profit

20,31225,000+23.1%

Pre-tax Profit

20,63623,904+15.8%

Profit13,477

15,523+15.2%

¥89

¥103

+¥14

attributable to owners of parent

DPS (¥/shr)

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

15

2.2 Explanation of Revenue Guidance

Growth rate of 16.1% reflects hard comps and an uncertain
market environment
Uncertain business environment assumptions

Revenue: forecast and actual・Merchandise EC market/Sluggish SMEs

+XX%(¥ mil)Forecast

Actual

80,000

ActualInitial forecast+25.5%+16.1%

・Persistent inflation/decline in real wages
・Chane in business environment of start-ups

Initial forecast

70,000

Revenue growth assumption by company+17.5%
60,00011,403

Initialrevenue

50,00040,00073,28630,00059,10063,133% YoY% Shr.

GMO-PG＋18%

52%

Consol. GMO-EP

＋6%

8%

GMO-PS＋15%

14%

Consol. GMO-FG ＋21%

26%

50,29820,00010,0000

FY2022
ActualForecast

FY2023
ActualForecast

FY2024
ActualForecast

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

16

2.3 Post FY2024 Policy

Target OP CAGR of 25% after strengthening business foundations
Image of revenue trend and basic policy
Strengthen businessfoundation

Medium term management target

OP CAGR 25%
Min. 20% growth on a single year basis
New projects
Image of revenue trend・Monetize large-scale projects
・Advance sales structure andproject management
・Strengthen product scalability
・New business creation(incl. joining group)

Trend line ofrevenue growth atcruising speeda : Project sizeb : Project lead timeab

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

17

3. Growth Strategy and Initiatives in Focus Areas

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,18

3.1 Our Track Record of Growth

OP growth rate accelerated together with the expansion ofbusiness domains
Operating profit actual and targets; Incremental OP increase*1*2（¥ bil）
30

3 years+10.0(approx. ¥3.3bn/year)
20.3
20

5 years+7.0(approx. ¥1.4bn/year) 10.3
10

5 years
5 years

+1.8

+0.8
0.3

(approx. ¥0.16bn/year) 1.1(approx. ¥0.36bn/year) 2.9

0
2005
2005

2006

2007

2008

2009

2010
2010

2011

2012

Entered SME domain
Establishedglobal locations

2013

2014

2015
2015

Launched
BNPL
MSB
launched

2016

2017

2018

2019

Commenced
BaaS Support
Commenced
offlinepayment

2020
2020

2021

2022

2023
2023

2024

2025
2025

Entered B2E domain

Commenced overseas lending
Commenced medical sector DX support*1 Adopted IFRS standards from FY2018. Figures for FY2017 have been restated accordingly.
*2 Due to the deconsolidation of MACROKIOSK in FY2020, the figures present are for continuing business only and exclude discontinued business.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

3.2 Medium Term Targets and Growth Strategy

Achieve medium term target by deploying strategies for largecustomer and mass-market segments
Operating profit trend and target; Growth strategy*1*2(¥ bil)80

70

Large customers
Enablers of social transformation
・Enterprise/financial
institutions/local government
・Global corporates

Mass market
Companies/Individuals facing
challenges to growth・SME/start-ups
・Consumer/workers

CAGR 25% growthMin. growth ofover 20% on
single year basis

60

Problem solving/Low ASPHigh value add/High ASP
50Operating profit (actual)
営業利益（実績）

20%
Strengthen businessfoundation

営業利益目標イメージ
Image of OP target
最低20%ライン
40

Guidance
30

25.0

20

25% growth every year
10

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

*1 Adopted IFRS standards from FY2018. Figures for FY2017 have been restated accordingly.
*2 Due to the deconsolidation of MACROKIOSK in FY2020, the figures present are for continuing business only and exclude discontinued business.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

3.3 Sources of GrowthOne-stop support of merchant’s growth through productscalability (resulting in enlarging project size)
Value proposition to merchants/users: examples of products offered

Strengthen online sales
Reduce payment operation burden
Create new UI/UX

Onlinepayment

SMS
Complete payment on
Choice ofsmartphone

Stimulate demand Online
marketingof customers
3.7

Convenient payment
at physical stores
Tackle labor shortage

3.4

GMO-EP

3.5

Global

3.8

TL*1

BaaS
supportDrive customers’ proprietarycashless business*1 TL stands for transaction lending.

Salaryprepayment

BNPL
Invoicing operational
efficiency

Secure growth
funds

BNPL/
Pay oncreditOfflinepayment

QR code payment at
physical stores“Re-bundling” payment function from themerchant’s perspective

GMO-PS

Merchant

GMO
Cashless
Platform

Examples of supporting merchant’s growth

Early
Improve cash flow
Payment

payment

GMO-FG

GMO-PG

Remittance

Pay after
receiving goods

Makingremittance andrefunds easy

Alleviate labor shortage

3.6

TL*1

BaaS Support
Strengthen eco-systemthrough cashless business
Remittance
Responding to user’s remittance/cash
withdrawal needs

Online payment

Building track record with regional banks,
restaurant chains, apparel,utility, high-growth start-ups, etc.

*2 Re-bundling refers to the unbundling of each function of financial services and recombining (re-bundling) it according to the user’s perspective.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

3.4 GMO-PG Non-consolidated

Accelerate industry strategy by leveraging external environment
Requirement for sustaining revenue growthSize of target market and GMV target for FY2028
FY2023Market size
¥63 trn

・Enlarge project size
・Improve efficiency of acquiring new high-growth customers

FY2028Market size (forecast) ¥102 trn
GMV target
Merchandise

Image of revenue target in 5 years*1

Nonmercha
ndise

GMV

Base Growth

B2B
B2E

Approx. 3.1x

Existing domain
Inside sales
New B2B

Initiatives for medium-term revenue growth

New industry strategy
合計（グラフ用）+25%
trend line

Guidance based+18%

・Accelerate industry-specific platform rollout

Large・Launch new B2B biz, formed dedicated sales team

Large

・Partner collaboration/Sales efficiency/
Buildout customer data base

Mass・Expand existing domains with mainstay payment service*2

Large
Mass

Progress of initiatives
FY2023
Co. BCo. C① Co. D①

FY2024
Co. E

FY2025
Co. C②

Co. D②

Utility
Co. H Co. D

GMP*3
Co. A Co. B

Real estate
FY2023

FY2024*1 Excludes Instant Salary byGMO.

FY2025

FY2026FY2027

FY2028Processing PF

Co. A

Co. C

Co. A

Co. D Co. E Co. F①

Co. F②

Co. B① Co. C Co. E① Co. F Co. B② Co. E②
Co. D*2 Refers to PG Multi-payment service *3 GMP stands for global major players.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

3.5 Consol. GMO-EP: SME Domain

Improved growth rate with new business pillar
Requirement for sustaining revenue growthSize of target market and GMV target for FY2028

・Expand from merchandise to non-merchandise domain
・Expand transaction share
・Acquire high-growth merchants
・Expand/foster businesses into new profit contributors

FY2023

FY2028Market size
¥14.4 trn

Market size (forecast) ¥17.1 trn
GMV target
RetailHealthcare/WelfareAccommodation/
RestaurantHouseholdservices
Digital content

GMV
Image of revenue target in 5 years

Approx. 4.5x

Existing domain
GMO-MR
Financial service
Payment services for start-ups*+25%
trend line

Initiatives for medium-term revenue growth・Accelerate leads into potential anchor customers in eachindustry through payment services for start-ups/nonMass
merchandise sectors*

合計（グラフ用）

Guidance based+6%・Expand financial service

Mass

・Drive healthcare DX/paperless operations, deploy
healthcare partner strategy

Mass・Reform earnings model (shift to fixed-cost model)

Mass

Progress of initiatives

FY2023
FY2023

FY2024FY2025

FY2026FY2027

FY2028

fincode byGMO

Co. B

FY2024FY2025

Co. C Co. D Co. E Co. F* fincode byGMO
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

3.6 GMO-PS： BNPL

Improve growth and profitability by expanding business model
Requirement for sustaining revenue growthSize of target market and GMV target for FY2028
FY2023Market size
B2C BNPL ¥1.4 trn

・Inroads into new domains
・Expand business model・Transform earnings structure
・Advancement of credit control

FY2028Market size (forecast)
B2C BNPL approx. ¥2.4 trn
B2B
GMV target

Offline

GMV

Approx. 2.5x

Image of revenue target in 5 years
合計（グラフ用）
New domains (BNPL, B2B, etc.)
Existing domain+25%
trend line

Initiatives for medium-term revenue growth・Expand into new business domains incl. new BNPL service
Mass

Non-merchandise/merchandise
Guidance based+15%

・Expand OEM model

Large

・Drive services in B2B domain

Mass・Update commission model

Mass・Full operation of proprietary credit screening system

Mass

Progress of initiatives
FY2023

FY2024

Co. ACo. B Co. C Co. D

FY2025

Co. E

BNPL
Co. A

Co. B Co. C

Pay on Credit
FY2023

FY2024FY2025

FY2026FY2027

FY2028

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

24

3.7 Consol. GMO-FG：Offline payment

Continue growth by driving new businesses in a growing market
Requirement for sustaining revenue growthSize of target market and GMV target for FY2028
FY2023Market size ¥88 trn

・Expand recurring-model revenue
・Expand market share in large markets
・Foster new businesses

GMV target ¥15 trn plus
GMV
¥4.1 trn

Image of revenue target in 5 years
Base trend
1. Business DX support
2. Transit
3.Tap to Pay/SME
4. Large commercial facilities/SC
5.IoT alliance
合計

FY2028Market size (forecast) ¥125 trn

Approx. 3.6x
and higher
Initiatives for medium-term revenue growth+25%
trend line

Guidance based+21%・stera: acquire growth customers, expand industry
footprint (e.g. large commercial facilities, etc.)

Large

・MaaS domain (mobility payment)/Tap to Pay

Large・Broaden alliances in QR & rewards, etc.

Large

・Raise ARPU by strengthening payment center functions

Large

・Make inroads in small-operator segment across industries Mass
Progress of initiatives
FY2023Co. A
FY2023

FY2024FY2025

FY2026FY2027

FY2028

stera
Mobility

Co. B

FY2024
Co. C Co. D

FY2025

Co. E
Scheduled to start pilot testat Tokyo Metro Co., Ltd.

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

25

3.8.1 Global
Expand investments and lending for medium-to-long term overseas FinTechbusiness expansion
Requirement for sustaining revenue growth

Initiatives for medium-to-long term revenue growth・Strengthen local corporate structure for long term growth・Advance credit management for lending
・Continue search for 2ndand 3rd business seeds for ourbusiness expansion

・Accelerate buildout of outstanding portfolio in key countries
strengthen presence in India and US
Strengthen collaboration with external partners anproprietary deals

Image of revenue target in 5 years (existing business only)・Expand procedures and personnel for screening andrisk management
・Leverage weak investment market to secure favorable
investment conditions

Revenue CAGR over 20％
OP
CAGR 25-30%

・Strengthen reach to global corporates(FY2023 ～ FY2028)

Asia FinTech Study session

US MSB
Asia MSB
Asia payment
合計（グラフ用）

FY2023

FY2024FY2025

FY2026FY2027

FY2028・Transplant overseas cutting-edge FinTech expertise into
Japan’s product development

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

26

3.8.2 Global: Financial Results Summary
Revenue up 37.2% (incl. weak yen benefit) by growing loan book fromstrengthening reach to promising companies
Revenue*1 & OP*2 (annual)

Loan balance (end-Sep)% YoY+37.2%(¥ mil)(¥ mil)14,0001,400

US MSB+43.2%

1,200

New borrowers% YoY+37.1%

Progressing towards¥14.0 bn raised from
Euro-yen CB

12,000US Loan executed for inventory lending
US
FinTech of used cars (Oct. 2023)+51.7% ・Provide inventory financing and inventory
management software to car dealers

1,000

10,000800

8,000Singapore
+4.2%

6,000

India
+88.2% India Loan executed to SMEs lending

Asia MSB+33.5%

600

OP+19.3%

400

FinTech company (Sep. 2023)
・Executes loans by analyzing vast data
sets held by credit screening organizations
and financial institutions using proprietary
Indonesia credit screening model-2.9% AUM approx. ¥121.0 bn*3

4,000

2,000

200

Asia payment+54.9%
00
FY2022

FY2023End-Sep 2022

End-Sep 2023

Continue to maintain high yield(avg. interest rate approx. 11%*4)*1 Calculated by excluding the one-time revenue recorded in previous fiscal year. If included, revenue growth would be 30.1%.
*2 Calculated by excluding the one-time revenue recorded in previous fiscal year. *3 AUM is as of June 2023, converted to Japanese yen using exchange rate as of Sep. 30, 2023 (JPY1.79/INR).
*4 Effective interest rate on entire loan book, average of Q4 FY2023.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

27

3.8.3 Global: Investment Strategy
Drive investment to promising category-creators by leveraging sluggish
investment environment

Card issuing Lending Tech market
market¥40 trn*2¥40 trn*1(2022)(2021)

Payment market¥270 trn*3(2022)
Several deals in thepipeline

KYC Tech market¥0.2 trn*2(2026)HR Tech market¥0.3 trn*2(2022)

Investment, exit and re-investment(excerpt of Q3 FY2022 IR material)
PSR

Exit

New deals executed

×30

Investment

Minority stake into Indian HR Tech (Oct. 2023)
×20
・Expanding HRMS*4 SaaS to SMEs
・Salary calculation for over 2 million or an ×10
equivalent of ¥1.4 trn*2 annually×0*1 GlobalData：total transaction value of US digital payments

Investment

Leverage market cycles,
Accelerate reinvestment into strategic domains
using proceeds from past investments
2010*2 Based on GMO-PG estimates. *3 Mordor Intelligence：card payments value

21

22

~25

~30

*4 HRMS stands for Human Resource Management System.

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

28

4. Sustainability

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,29

4.1 Sustainability Management: Review of FY2023

Contribute to realize a sustainable society by resolving social issues
with payment
Promoting sustainability management
・Identified materiality (SEE page 31)
・Selected as constituent of several FTSE ESG indices*1
・Disclosed information on climate change response based on
TCFD recommendations
・Estimated to achieve zero GHG emissions (Scope 1 & 2)*2
・Promoting supply chain management engagements to enablemeasurement and reduction of Scope 3 GHG emissions
・Received third party certification for GHG emissions (FY2022)
・Developing workplace environment that promotes health management
Business opportunities arising from social issues
Depopulation/
Labor shortage
Labor saving payment

Regional
revitaliztion
Strengthening recruitment
with salary prepayment

Smart City

Inbound

Real x Digital
integration

Promote cashless adoption at New UI/UX with digital
Ryokans
payment

Climate change/
Decarbonization

CO2 reduction throughcashless payment*3

CashCashless*1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that GMO Payment Gateway, Inc. has been independently assessed according to the criteria, and has satisfied
the requirements to become a constituent of the FTSE4Good Index Series, FTSE Blossom Japan Index and FTSE Blossom Japan Sector Relative Index.
*2 Preliminary estimate prior to accreditation by third party organizations. *3 Payments Japan Association
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

30

4.2 Materiality

Identified materiality issues to be prioritized❶ Innovation

Socialcontribution
through thesustainablegrowth ofbusiness
centered on
payment～ Social advancement and customer’s growth through creation of payment innovations～
Provide a wide array of innovations centered on payment, a necessary step in many
economic activities, that support operational efficiencies such as such as invoicing, cash
management and salary payment to enhance competitiveness, thereby contributing torealizing a more convenient and comfortable society by promoting cashless adoption.

❷ Reliability～ Sustainable operation of payment infrastructure to support society ～As a company responsible for the social infrastructure of payment, contribute tosafety and security of socioeconomic activities by securing the stability and reliabilityof our own operations.

❸ Decarbonization～Contribute to the Earth’s environment through cashless adoption～
Focus on CO2 emissions reductions through the transformation of paper-basedand cash-based processes❹ PeopleManagementfoundation to
supportsustainablegrowth～Pursue organizational capability that embraces challenge and the commitment to 25%
growth ～Focus on expanding the critically important human capital base as the highest priority
organizational undertaking to achieve sustainable growth that can overcome changes inthe environment❺ Governance～ Institute a sound and responsible management ～Strengthen governance structure to enhance oversight from external bodies
and risk-taking, in order to sustain a sound and high level of growth
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

31

5. Financial Highlights and Reference Materials

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,32

5.1.1 Consolidated Balance Sheet Changes

Increase in deposits received and MSB related assets
AssetsLiabilities and Equity(¥ mil)(¥ mil)292,346

300,000

292,346

300,000

273,407273,407250,000

250,000

215,455

91,071

113,967

85,562

215,455

133,658

200,000

200,000

34,36478,25135,252

104,523
150,000

50,000030,599Prov. fordoubtful
70,479 account-2,722

86,965

9,852

12,87014,916End-Q4 FY2021

End-Q4 FY2022

End-Q4 FY2023

Investment related *1*2

25,741

23,000100,000

19,59315,15818,89020,65350,000Equity57,820 ratio*4
25.9%

89,260103,132-3,339MSB related

19,67840,63959,603100,000

19,763150,000

Other-3,886

Cash & Equivalent

29,35022,992

94,804
31.9%

31.6%

0
End-Q4 FY2021

EquityMSB related

End-Q4 FY2022

Borrowings

Bonds

End-Q4 FY2023

Other

Merchant deposits*3*1 Securities classified under investment securities and investment accounted for under the equity method.
*2 MSB Related Asset: Lease assets, Short term loans, Advances paid, Accrued revenue (net of provision for doubtful accounts). MSB Related Liabilities: Accrued expenses.
*3 Deposits received from merchants under the Representative Contract.
*4 Equity ratio is total equity attributable to owners of parent divided by total assets. *5 Some figures are shown in net amounts of financial assets and liabilities.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

33

5.1.2 Major Consolidated Financial Indicators (Annual Trend)

Strengthened equity base with the expansion of MSB
IFRS

J-GAAP
Third party allotment
Raised ¥8.0bn
45%

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

Euro Yen CB Due 2026
Raised ¥21.1 bn（¥ bil）
300

Euro Yen CB Due 2023
Fully converted

40%
250
35%

32.2%

30%

31.6%

200

25%
150
20%

ROE baseline
15%

100

15.0%
10%
50

7.3%

5%

0%

0
End-Q4 FY2012 End-Q4 FY2013 End-Q4 FY2014 End-Q4 FY2015 End-Q4 FY2016 End-Q4 FY2017 End-Q4 FY2018 End-Q4 FY2019 End-Q4 FY2020 End-Q4 FY2021 End-Q4 FY2022 End-Q4 FY2023

Total assets
Return on equity using profit attributable to owners of parent (ROE)
Operating profit margin

Return on assets using pretax profit (ROA)
Total equity attributable to woners of parent to total assets (equity ratio)* Figures from FY2018 are based on IFRS standards. For figures before FY ending September 2017 are based on J-GAAP standards. As such, total assets refers to assets, equity refers to net assets and total
equity attributable to owners of parent to total assets refers to equity ratio, return on total assets using profit attributable to owners of parent refers to ordinary profit to assets ratio, and return on equity using profit
attributable to owners of parent (ROE) refers to net profit to equity ratio.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

34

5.2 Consolidated Revenue and Operating Profit (Quarterly)
Consol. revenue

Consol. operating profit（¥ mil）（¥ mil）

20,000

7,000

6,000

15,0005,000

4,000
10,000
3,000

2,000
5,000

1,000

0

FY2021
FY2022
FY2023
FY2024

1Q
9,767
11,857
14,813
17,341
FY2021

2Q
10,121
12,201
15,641
17,999FY2022

3Q
10,646
12,897
16,546
18,734FY2023

FY2024

4Q
11,132
13,341
16,11819,2100

FY2021
FY2022
FY2023
FY2024

1Q
3,122
4,116
5,090
5,762
FY2021

2Q
3,470
4,159
5,260
6,708
FY2022

3Q
3,629
4,511
5,671
6,865
FY2023

4Q
2,764
3,461
4,290
5,664

FY2024

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

35

5.3 Waterfall Chart for Consol. Revenue (Q4 standalone)

20.9% growth from offline and BNPL offsetting the low growthof merchandise EC
Consol.
(% YoY)（¥ bn）

GMO-PG*3+14.2%

Consol.GMO-FG*1*2+37.1%

GMO-PS*3 GMO-EP*1*3+25.4% +7.8%

Consol.
+20.9%¥16.1bn
16

Other
GMO Payment After
Delivery15

BaaS
Support Commission rate change andacquisition of large merchant
+2.1%

MSB
+10.8%
Merchandise EC +9.9%

14Large merchants and food/beverage were strong¥13.3bn

Non-merchandise EC +18.3%
Utility (+28.6%), travel/ticket (+36.9%), growth of GMP*5 etc.,

13

hiatus caused by enlarging project size

Recurring revenue*4 +50.8%
Operating terminals and pickup in offline consumption

Initial revenue +31.2%

12Strong offline terminal sales
0
Q4 FY2023

Q4 FY2022*1 GMO-FG consolidated is comprised of GMO-FG, GMO-CAS. GMO EP consolidated is comprised of GMO-EP, GMO-MR.
*2 Figures present financial results of GMO-FG consolidated. *3 Figures of each company are before the eliminations from consolidating into GMO-PG.
*4 Figures for initial and recurring-model revenue (consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales) are after eliminations.
*5 GMP stands for global major players.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

36

5.4 BaaS Support and Offline Payment Revenue (Annual Trend)
Ginko Pay/Processing PF revenue*1

GMO-FG/CAS Revenue by business model*2% YoY

Q1 FY2024 Large project starts （¥ mil）

% YoY

Recurring-model*3

Initial12,000＋53.0%+55.2% 5,000

FY2023 % YoY
SpreadTotal

10,000＋21.2%

4,000+12.6%
Ginko Pay

-3.6%

8,000
3,000

Fee

＋82.0%

6,000

2,000

Processing PF

4,000+22.1%
1,000
2,000

Stock

＋43.7%FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Acquiring

Issuing

Ginko Pay00
FY2022

FY2023

FY2022

FY2023■ Initial ■ Stock ■ Fee ■ Spread*1 Includes revenues for Ginko Pay and Processing PF received from business operators other than banks/financial institutions.
*2 Figures are GMO-FG’s consolidated financial results. *3 Recurring revenue is the sum total of stock, fee and spread and excludes initial which mostly consists of terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

37

5.5 Consolidated Revenue by Business Model (Quarterly)（¥ mil）

6,265
6,057

6,171

6,025

6,000

5,415

5,371

5,000

4,808

4,773

4,731

4,707

4,665

5,297

5,296

4,414
4,290

4,257

4,000

4,311

4,430

3,840
3,536

3,672

3,646

2,408

3,395
3,278

3,015

3,149
2,288

2,922

3,000
2,713
2,527

2,559

2,487

2,669
2,037

2,382
2,083
2,000

1,937

1,359

1,717

1,411

2,1…

1,723

1,460

1,478

1,522

1,610

1,552

1,947

1,851
1,754

2,080

2,591

2,237
2,260

2,005

1,678
1,484

1,131
876

1,000
659

725

489

506

0

20/1Q

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

21/3Q

21/4Q

Initial

Stock

22/1Q

Fee

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

23/4Q

Spread* The figures for revenues by business model present the continuing operations only and exclude MACROKIOSK, due to its deconsolidation in May 2020.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

38

5.6 Segment Results (Q4 standalone)

All segments grew revenues
Segment Revenue

Segment Profit% YoY(¥ mil)% YoY(¥ mil)Q4 FY2022

Q4 FY2023

Q4 FY2022

Q4 FY2023+25.2%+24.0%

6,000+19.8%

16,1184,290+20.8%

481
15,000

5,000

3,695

13,341316+21.5%+ GMO-MR+76.2%

225
2,987+15.2%

4,000

81
3,461
405

3

Positive +2,034.1%+ GMO-MR
profit+0.4%+23.7%+ Overseas lending+ GMO Payment 3,000
After Delivery

10,00012,121
5,000+40.2%+21.2%+19.6%+ Remittance－Preventative
provision of someoverseas borrowers

5,088
2,000

+ Offline payment

10,131+18.6%+18.8%+26.7%+ Offline payment

4,014
1,000

0

0
22/単4Q
Q4
FY2022

Q423/単4Q
FY2023

決済代行事業
金融関連事業■ Payment Processing Business■ Money Service Business
決済活性化事業■ Payment Enhancement Business

Q4
Q4 FY2022
FY2022Q4 FY2023
FY2023
Q4■■決済代行事業
Payment Processing■ 金融関連事業
Business
決済活性化事業■■決済活性化事業
Payment Enhancement Business■ Money Service Business
Operating profit (after elimination)

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

39

5.7.1 FinTech Related Asset
FinTech related asset (quarterly)（¥ mil）
100,000% YoY+11.6%

80,00060,000+19.3%

40,00020,000+35.9%
0
End-Q1
FY2020End-Q2
FY2020End-Q3
FY2020End-Q4FY2020End-Q1
FY2021

Lending (Japan/Overseas)

End-Q2
FY2021End-Q3
FY2021End-Q4FY2021End-Q1
FY2022

Early Payment service

End-Q2
FY2022End-Q3
FY2022End-Q4FY2022End-Q1
FY2023

GMO Payment After Delivery *1

End-Q2
FY2023End-Q3
FY2023End-Q4FY2023

Other *2

*1 The figures for GMO Payment After Delivery related assets (accrued revenue) are after deduction of provisions for doubtful accounts.
*2 The figures for “Other” is the sum total of B2B factoring, finance lease, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

40

5.7.2 FinTech Revenue and Profit (Quarterly)
FinTech segment revenue and profit（¥ mil）
3,500

% YoY
＋18.2%

3,000

2,500

2,000

＋25.4%
1,500

1,000

＋18.6%＋5.9%

500＋44.3%
0
20/1Q

20/2Q

20/3Q

20/4Q

Lending (Japan/Overseas)

21/1Q

21/2Q

21/3Q

Early Payment service

21/4Q

22/1Q

22/2Q

22/3Q

GMO Payment After Delivery*1

22/4Q

Other*2

23/1Q

23/2Q

Remittance

23/3Q

23/4Q

Segment Profit*1 Includes the impact of commission rate revisions to reflect the increase in CVS payment agency cost for GMO Payment after Delivery from FY2022.
*2 The figures for “Other” is the sum total of B2B factoring, finance lease, B2B AR Guarantee, B2B Payment Guarantee, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

41

5.8.1 Consolidated CoS and SG&A Ratio (Quarterly)

Cost of sales ratio fluctuates depending on revenue mix*(¥ mil)16,546
16,11815,641

16,00050.0%

14,81314,00013,341

42.7%

41.2%

37.5%

12,89739.6%
12,000

36.7%

35.2%

34.8%
35.2%

10,000

34.6%

27.9%

34.7%

33.9%

33.4%

35.8%
31.1%

37.0%

40.0%

36.7%

33.6%

33.0%

31.3%

8,623

38.5%
37.2%

32.6%

8,927

8,000

33.8%
10,646

10,121

9,767

9,356

9,030

11,857

11,132

36.8%

40.9%

12,201

30.0%

32.0%

30.7%

29.5%

28.8%

27.6%

26.7%

5,960
6,374

5,460
6,000
4,169

3,720
3,181
4,000

3,813
3,292
3,433

3,174

2,488

3,872
2,817

3,522
3,169

3,466
3,599

3,982

4,108
3,684

4,075
4,021

3,959

4,487

5,823
4,618

4,743

4,469

5,913

20.0%

5,022
4,570

2,302
10.0%

2,000

0.0%

0
20/1Q

20/2Q

20/3Q

20/4Q

Revenue

21/1Q

21/2Q

21/3Q

Cost of Sales

21/4Q

22/1Q

SG&A

22/2Q

22/3Q

CoS ratio

22/4Q

23/1Q

23/2Q

23/3Q

23/4Q

SGA ratio* Figures only present the continuing operation from Q3 FY2020 and onwards and exclude MACROKIOSK (reclassified as discontinued operation) due to its deconsolidation in May 2020.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

42

5.8.2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly)

CoS ratio trending stably for online payment business(¥ mil)
9,564
9,219

9,083

9,177

9,000

50.0%
8,498
45.2%

8,000

41.2%

41.6%
6,858

6,709

40.7%

7,122

39.7%
7,000

7,977

7,906

7,682

40.0%

6,878
36.6%

6,370

34.2% 6,110
6,000

33.3%

32.5%

5,271

5,126

32.5%

31.6%

32.9%

5,000

4,000

30.0%
30.3%

29.4%

20.9%

21.2%

22.1%
20.2%

21.0%

20.5%

21.5%

22.6%

30.3%
26.7%

3,462
20.5%
19.3%

19.5%

20.9%

20.1%
18.7%

2,932

3,000

2,649

2,665

2,319
1,800

2,000
1,069

1,117

2,286

2,495

2,177

2,755

2,603

1,235

1,373

20/4Q

21/1Q

1,517

1,478

21/2Q

21/3Q

1,609

1,483

1,616

1,553

22/2Q

22/3Q

1,711

1,696

22/4Q

23/1Q

19.6%

3,562

20.0%

2,796
2,447

2,345

1,984
1,339

19.8%

1,822

2,001

1,794

10.0%

1,000

0.0%

0
20/1Q

20/2Q

Revenue

20/3Q

Cost of Sales

SG&A

21/4Q

22/1Q

CoS ratio

SGA ratio

23/2Q

23/3Q

23/4Q

SGA ratio 1-yr moving average* Figures presented are before consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

43

5.9.1 Operating Stores, TRX Volume and Value
Consol. TRX value reaches approx. ¥14.9 trn in the past 12 months
OperatingStores*1/Terminals*2
End-Q4 FY2023

TRX Volume*2*3

TRX Value*2

Q4 FY2023

Past 12-mnth

Q4 FY2023

Past 12-mnth-1.67 bn

6.20 bn¥3.9 trn¥14.9 trn-

+25.8%+27.6%+28.9%+31.8%

146,539

1.50 bn

5.61bn¥2.6 trn¥10.6 trn

+11.0%+22.9%+24.7%+19.2%+21.1%

298,818 units

0.17 bn0.59 bn¥1.2 trn¥4.3 trn+49.8%+57.9%+62.5%+56.5%+68.3%

Consol.
% YoY

Online% YoY

Offline*2% YoY

Proportion of representative contracts in online TRX value*4： Approx. 40%*1 The standards for calculation the number of operating stores has been revised from Q4 FY2023. Figure exclude an operating stores of a specific merchant and stores using fincode byGMO.
If included, operating stores would be 579,164 (up 23.2% YoY).
*2 Payment terminals exclude GMO-PG’s offline payment (GMO Cashless Platform). Offline transaction volume and value includes GMO-PG’s offline payment (GMO Cashless Platform).
*3 Transaction volume is calculated based on fee revenue standards, which in the case of online consist of multiple (1 to 3) transactions per payment of a single authorization or actual proceed amount, and one
transaction per payment in the case of offline. *4 Annual average is shown in 5% increments.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

44

5.9.2 Waterfall Chart for Transaction Value (Q4 standalone)

Online payment grew 19.2% due to electricity rate cuts（¥ trn）

Online payment

Offlinepayment(% YoY)

GMO-PG
Market*1+58.4%+14.8%

GMO-PG
Market*1

Non-merchandise EC+24.8%+20.2%+19.2%+11.4%

Consol. +28.9%

Merchandise EC
+8.6%
+4.8%

4.0

¥3.9 trn*3
GMO-PS
Merchandise*4

GMO-EP

Other nonmerchandise
Utility
Electricity rate cuts (small revenue impact)

3.5

Travel/ticket
Increased outings and travelling

Digital content/telecom
Growth in major telecom carrier¥3.0 trn*3

GMO-PG
GMO-FG*2
Increased transaction from strong terminal sales and increasingtransactions from normalization of economic activities

3.00

Q4 FY2023

Q4 FY2022*1 Offline market is based on Ministry of Economy, Trade and Industry’s “Survey of Selected Service Industries.” Figures for offline market show the % YoY growth for the sum of July and August, as September 2023
data is not available as of this writing. EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income and Expenditure Survey,” figures are categorized into merchandise and non-merchandise
according to the Company’s standards using the Internet expenditure amount per household.
*2 Excludes GMO-PG’s offline payment (GMO Cashless Platform) *3 Rounded off to nearest trillion of yen. *4 Utility-linked financial institutions.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

45

5.9.3 Distribution of major sectors (Q4 Standalone)
Balance both stability and growth through sector diversification
Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)*(Q4 FY2023 standalone Actual)

Revenue
proportion

The size of the circle represents the TRX value

30.0%

25.0%

Digital content/
telecom
20.0%

15.0%

Memberships/
services
Cosmetic/
UtilityFood/health foodbeverage
Insurance
Daily goods/
C2C office supplies

10.0%

5.0%

ApparelHome delivery/
newspaper

Travel/ticket

0.0%
-5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

Revenue growth (% YoY)
* Composed from TRX value by sector for the PG Multi-payment service.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

46

5.10.1 Consolidated Cash Flow Statement (Annual)
FY2023 cumu. changes by item (¥ mil)（¥ mil）
50,000Operating CF：
Pretax profit
Depre. & Amort.
Trade receivables
Advances paid
Accrued revenues
Accrued expenses
Deposits received
Income taxes paid

40,00030,000+6,128+20,636+2,413-4,624-8,964-3,167+2,327+5,821-9,010Investing CF：+17,762
Deposits into restricted a/c-12,707
W/drawl from restricted a/c+24,650
Acq. of intangibles-4,098Deposits to subsids. & affiliates-5,300W/drawal from deposits
to subsidiary & affiliates+16,500

20,00010,000Financing CF：
Net increase in ST borrowings
LT borrowings
Dividends paid

0-6,419+2,900+3,450-12,127-10,000
FY2018FY2019Operating CF

FY2020

FY2021

Investing CF

Financing CF

FY2022

FY2023：+23,890

Cash & Equivalents ：133,658

FCF

FCF

Mainly Money Service Business* FCF is calculated as the sum-total of Operating CF and Investing CF. Only major items of the cash flow statement are shown on this page.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

47

5.10.2 Changes in consolidated cash flow statement
Related liabilities & assets

Impact from business expansion

Deposits received(liability)

Liability

Payment Processing Business
Sales proceeds ofmerchants under the
Representative Contract

Operating CF

Yearly fluctuations can be large as annual TRX value oftrillions of yen can be carried over to the following year

Money Service Business
Early Payment service

Advances paid
(asset)Asset

Operating CF

Payment After Delivery
service

Accrued revenue(asset)Asset

Operating CF

Accrued expense(liability)

Liability

Operating CF

Deposits to subsidiaries
and affiliates(asset)Asset

Investing CF

OtherFunds temporarily deposited in CMS of GMO-IG*, which
can be withdrawn at any time depending on cash
requirements* GMO-IG: GMO Internet Group
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

48

Thank You Very Much
GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange Prime)
For inquiries or requests for 1-on-1 interviews, please contact the IR Department,
Corporate Value Creation Strategy Division, at the telephone number below:
TEL： +81-3-3464-0182
E-mail ： ir-contact@gmo-pg.com

IR Website URL
https://www.gmo-pg.com/en/corp/

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

49