Financial Results Briefing for Q1 FY2022
Business expansion accelerates from customized strategy by customer segment

February 10, 2022
68 th Investor Meeting

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

Agenda1. Summary of Financial Results for Q1 FY2022
2. Growth Strategy
3. Initiatives on Focus Areas

4. Financial Highlights and Reference Materials

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

2

Safe Harbor Statement

The contents of this document are based on generally
recognized economic and social conditions, as well asassumptions judged to be reasonable by GMO Payment
Gateway as of February 10, 2022.
Please note that the contents are subject to change
without prior notice in the event of changes in thebusiness environment or other unforeseen occurrences.

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

3

1. Summary of Financial Results for Q1 FY2022

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

4

1.1.1

Earnings Summary

Revenue and OP off to a strong start towards full year guidance
IFRS(¥ Mil)Q1 FY2021

Q1 FY2022% YoY

1H FY2022
Guidance

Achievement vs.
1H Guidance(%)

Revenue

9,767

11,857+21.4%

23,438+50.6％

Operating Profit

3,122

4,116

+31.8%

8,117+50.7％

Pre-tax Profit

3,038

4,299

＋41.5%（Page 26）

7,738+55.6％

1,704

2,517

+47.6%

4,795+52.5％

3,569

4,612

＋29.2％

ーー

ProfitAttributable to Ownersof Parent

EBITDA

Operating stores at end of
Dec. 2021
KPI (% YoY)

129,659（＋16.1％）*See 4.2

Consol. TRX Volume(Oct. 2021 ～ Dec. 2021)

Consol. TRX Value(Oct. 2021 ～ Dec. 2021)

Approx. 1.12 bn（＋33.3％） Approx. ¥2.6 trn (+33.8％）
o.w., online approx. 1.04 bn (+28.1％)

o.w., online aprox. ¥2.1 trn（＋20.3％）※ EBITDA=Operating Profit + Depreciation.
※ Operating stores figure is for GMO-PG and GMO Epsilon (EP). Consolidated TRX volume and value figures are the sum totals for GMO-PG, GMO-EP, GMO Payment Service (GMO-PS)
and GMO Financial Gate (GMO-FG). The online payment figures are the sum totals for GMO-PG, GMO-EP and GMO-PS.
※ Operating stores exclude a certain merchant and exclude stores related to a major delivery company. If included, operating stores would be 360,275 stores (up 68.0% YoY).

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

5

1.1.2Growth Trend of Revenue and OP

Revenue grew 21%, OP grew 31% during the ‘With-Corona’ phase
Revenue

Operating Profit(¥ Mil)(¥ Mil)With vs With

12,000＋21.4％
10,000With vs With

4,000

Pre vs With

＋31.8％

3,500＋28.5％Pre vs With
3,000

＋48.3％

8,000
2,500
6,000

2,000

1,500

4,000

1,000
2,000
500

0

0
20/1Q

21/1Q

22/1Q

20/1Q

21/1Q

22/1Q

※ Due to the deconsolidated of MACROKIOSK in FY ending September 2020, the above figures present the amounts for continued operations only and exclude discontinued
operations.

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

6

1.2

Revenue by Business Model (Q1)

Revenue grown on a recovery trend from contribution ofvarious priority initiatives
Initial

Stock

Fee

Spread
5,371
4,808

3,149

3,450

3,646

2,559

1,851

1,484
659

（¥ Mil）

876

1,179

1,359

1,906 1,937

1,522

389
19/1Q 20/1Q
21/1Q 22/1Q
イニシャル

19/1Q 20/1Q
21/1Q 22/1Q
ストック

19/1Q 20/1Q
21/1Q 22/1Q
フィー

19/1Q 20/1Q
21/1Q 22/1Q
スプレッド

3-yr CAGR+69.4％+56.2％＋21.6％＋16.2％＋23.1％＋18.2％＋11.7％＋15.9％

Major
factors

Sales of payment
terminals foroffline payment

Expansion of BaaS

% YoY

Growth of GMO-MR

Launch of the
defensive utility PF

Impact from specificmerchant

Growth of offline
payment

Excl. this +19.7％※ GMO-MR: GMO Medical Reservation Technologies Co. Ltd. Due to the deconsolidation of MACROKIOSK in FY ending September 2020, he above figures present amounts forcontinued business only and exclude the discontinued business.

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

7

1.3

Segment Results

Steady progress in all segments despite the uplift fromCOVID-19 related demand last term
Segment Revenue

Consol. ＋21.4％ YoY(¥ Mil)Segment Profit

Consol. ＋31.8％ YoY(¥ Mil)12,000225＋37.8％ YoY

5,000

51 ＋156.3％ YoY＋ Strong GMO-MR＋ Growth of online advertising

10,000

163
2,483

8,000

6,000

2,772

＋11.7％ YoY＋ Strong Early Payment+ Growth in overseas lending－ Hard comps for GMO Payment
After Delivery－ Hard comps for remittance

4,116
20

4,000

3,122

630

7,122

4,000

＋28.9％ YoY＋ Strong Early Payment＋ Growth in overseas lending

489

3,000

4,260

8,866 ＋24.5％ YoY＋ Growth of online payment＋ Expansion of offline payment＋ Strong GMO-MR＋ Growth of online advertising

2,000

3,411

＋24.9％ YoY＋ Growth in online payment＋ Expansion of offline payment

1,000

2,000

0

0
Q1 FY2021

Q1 FY2022

Payment Processing Business

Q1 FY2021

Money Service Business (MSB)

Q2 FY2022

Payment Enhancement Business

Operating Profit※ GMO-MR: GMO Medical Reservations Technologies Co. Ltd.

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

8

1.4.1 GMO-PG Non-consolidated performance(Quarterly Trend)
Non-merchandise returns to 25% growth trajectory; Overall
performance outperformed plans
GMO-PG Non-Consolidated Revenue and OP% YoY

Revenue（¥ Mil）
Revenue from a certain merchant (Left axis)

3,500

百万

百万

7,000

Merchandise revenue excl. a certain merchant (Left axis)
6,000

Non-merchandise revenue (Left axis)

3,000Operating profit (Right axis)
5,000

2,500

4,000

2,000

3,000

1,500

2,000

1,000

Online payment＋16.5％＋17.2％

Merchandise EC＋ 0.9%－44.9％
Apparel＋35.6％
Food & Beverage
Cosmetics, Health food ＋12.4%
Non-merchandise EC
Digital content
Utility
Travel & Ticket＋26.1％＋37.8％＋47.1％＋30.5%

Money Service Business ＋10.1％
1,000

500

0

0

Remittance service ＋ 5.1％
Early Payment＋58.4％
Overseas Lending ＋46.2％

Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022※ Revenues figures present amounts before eliminations and adjustments. Online payment revenue figures are after elimination and adjustments. GMO-PG stands for GMO Payment
Gateway.

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

91.4.2 Performance of GMO-EP, GMO-PS and GMO-FG(Quarterly Trend)※1

EP/PS on a recovery trend despite high COVID-19 related
demand last term, GMO-FG continues strong performance
Revenue (Right axis)

GMO-EP Consol.

GMO-PSKPI (Left axis)

GMO-FG Consol.

Revenue＋ 7.9％ YoY
Revenue＋ 5.6％ YoY
Revenue＋66.5％ YoY(2-yr CAGR) ＋47.0％(2-yr CAGR) +11.8％(2-yr CAGR) ＋23.3％
KPI: new merchant acquisitions KPI: new merchant acquisitions KPI: Operating terminals＋73.1％
Run rate 1,000/mnth level
maintain its pace（¥ Mil）（trx）（¥ Mil）

（trx）

1,500

4,000

2,000

200

（¥ Mil）（Units）
140,000

2,000
120,000
3,000

1,500

150

2,000

1,000

100

1,000

1,000

500

50

500

1,000

100,000

1,500

80,00060,000500

40,00020,000

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

0

20/2Q

0

20/1Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

0

20/2Q

0

20/1Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

0

20/1Q

0

※2
Hard comps against last
Stock-type revenue up 55.8% fromyear’s windfall demand
recovery in offline consumption
andtightercreditcontrol※1 The figures for all the companies stated above are amounts before eliminations and consolidated adjustments. GMO-EP Consol. includes GMO Epsilon andMerchandise EC demand in
the SME sector cycles through

GMO Medical Reservations Technology. GMO-PS: GMO Payment Service, GMO-FG Consol. includes GMO Financial Gate and GMO Card System.
※2 FG consolidated initial revenue is and excerpt from GMO-FG’s disclosed financial results and stock-type revenue is the sum total of stock, fee, and spread revenues.

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

10

2.

Growth Strategy

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

11

2.1

Growth Acceleration

Supporting core businesses of large clients leading to growth
rates exceeding forecasts at FY2015
Consol. TRX value

Energy sector DX anddecarbonization
support(¥ trillion)

Offline payment (GMO-FG consol.)

8

Other online payment (GMO-EP, GMO-PS, etc.)
Online payment (GMO-PG non-consol.)

7

連結決済処理金額
ActualPromoteindustry
specific DX PFCurrent forecast

6

ActualOver 30％

GMO-FG
Lists on TSE
Mothers

Forecast as of FY2015
5Forecasts at
FY20154

3

2

Established
GMO-PS

Consolidate
GMO-FG
Capital alliancewith SMFG¥4 trillion

1

0
10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

※ Capital alliance with SMFG refers to Sumitomo Mitsui Financial Group, Inc. and Sumitomo Mitsui Banking Corporation and GMO Internet, Inc.
GMO-PS stands for GMO Payment Service, GMO-FG stands for GMO Financial Gate.

21/9

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

12

2.2

Expanding Support of Core Businesses

Business scale is enlarging yearly from providing digitalization
support of core businesses
Digitalization support for core businesses※1

GMO-PG non-consol. revenue by year of contract (FY)

12

10

8

Accelerated to over 30% CAGR by
expanding support from niche areas tomain businesses and further to corebusinesses

Mega 5clients※2(¥ bn)
14(excerpt) ※3

FY2021
FY2020FY2019FY2018

NonTax payment (consumption tax,
merchan corporate tax, income tax, etc.)
dise
Payment PF for large telco carrier
Hometown tax website
Reservation platform forleisure/excursions
Major regional EPCO
Global major players

C2C fashion platform
FY2017
6～

Video streaming subscription

Merchan Major café chain operator
dise
C2C platform

4

Major apparel mall

2

Major delivery0～FY2010Major food subscription

18/9
19/9
20/9
21/9
17/9
18/9
19/9
20/9
21/9
※1 Revenue by year of contracting for PG Multi-payment service. ※2 Top five major clients of PG Multi-payment service in FY2019.
※3 Large projects that contributed to FY2021 business performance related to digitalization support for invoicing and payment and business operators that require online payments inthe main business.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

2.3 Revenue Expansion Strategy by Customer
Segment
Raise sales productivity through customized strategy bycustomers scale and speed up acquisitions
Customerscale

Revenue
Potential

Growth factors,
revenue model

Digitalization of core business
Acquire new large clients
Launch new businesses

Large

100

Customer strategy andapproachApplication

Industry focused marketing

Industry specific payment PF

Expand and deepen coverage SMS Choice of Payment
Issuing/Acquiring
Customize to client’s
operations and needs
BNPL

Stock
Fee
Spread※Cross-sell
Up-sellMedium10

Stock

Enhance customer success

PG Multi-payment service

Expand product line-up

Money Service Business (MSB)

Fee

Online advertising service

SpreadStrengthen inside sales;
raise sales productivity

Small

1

Increase number ofclients/merchants
SpreadPG Multi-payment service※

Expand inbound sales
channels (partner strategy)

EP payment service※ SLG stands for sales-led growth and PLG stands for product-led growth.

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

14

2.4

OP Breakdown by Customer Segment

Growth accelerates from core business support andacquisitions of large clients
OP target and breakdown by customer segment ※¥25.0 bn(¥ Mil)25,000Ann. revenue size of client
Over ¥100.1 bn■ Large■ Medium
20,000From ¥1.0～¥100.0 bn
Under ¥1.0 bn■ Small

15,00030％
10,000

43％
5,000

19％
54％
27％

0
10/9

列2

15/9

27％
16/9

17/9

18/9

19/9

20/9

21/9

22/9E

23/9E

24/9E

25/9E

※ OP by customers segment is calculated by multiplying the consol. OP margin to the revenue by customer segment.

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

15

3.

Initiatives in Focus Areas

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

16

3.1

Initiatives to Achieve 2025 OP Target

Implement product strategy coupled with initiatives
customized to each customer segment
Large

MediumSmall

Reference
page

SMEs

3.2

S L G※P L G※(¥100 mil)
250

GMO-EP

200

GMO-FG

Offline payment/IoT

GMO-PS

BNPL

3.5

FinTech150

250～

Global
BaaS

100

3.4

3.3

（Embedded Finance）

162
GMO-PG

3.6

Utility
GMP ※50

Broadly defined EC

3.2

Telco
Real estate
0
22/9E

25/9E

※ SLG stands for sales-led growth and PLG stands for product-led growth. GMP stands for global major players.

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

17

3.2

Broadly Defined EC

Focus on DX promotion to acquire large clients, penetrate
into SME segment
OP (¥ bn)2025

(Act.)(Target as of 2021)

9.5

18.0～22.0

GMO-PG non-consolidated B2C EC transaction value
1,800(merchandise,non-merchandise; Quarterly trend)※2
十億

2021

(¥ bn)
1,600

Merchandise EC

Growth Scenario ※1

1）DX promotion ≒ Payment platform

Non-merchandise EC

1,4002）GX promotion ≒ Payment platform
1,2003）Penetrate deeper into GMPs

21/9

21/12

21/6

21/3

20/9

20/12

20/6

20/3

19/9

19/12

19/6

19/3

0

18/9

Q1 FY2022 Start of payment processing using
de facto renewable energy NEW

18/12

Sustainability

1,000

Co. B PF launch scheduledNEW
NEW
Smartphone app for tax payment
800
NEW
Co. A 2 nd payment service
Co. B Negotiations for launch
600
Co. C Talks for next FY launchNEW
2 nd payment service launch planned
400
Rent/guarantee payment NEW
launch planned
E-contract, cashless adoption
200
PLG: new service
NEW
Partner strategy with EC platformer

18/6

Progress on Initiatives
Q1 FY2022
Utility
Q1 FY2023
Q1 FY2022
GMP
Q3 FY2022
FY2023Telco
Q4 FY2022
Q3 FY2022
Real Estate
Q3 FY2022
Q3 FY2022
SMEs
Q1 FY2022※1 DX stands for digital transformation, GX stands for green transformation. ※2 Figures present the transaction value for B2C EC operators in merchandise sector.

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

18

3.3

BaaS and Cashless（Embedded Finance)

Provide proprietary financial function to capture structuralchanges in financial services
2021(Act.)

0.6

OP (¥ bn)2025

Q1 stock revenue from services to FIs※

(Target as of 2021)■ Ginko Pay

1.0～■ Issuing/Acquiring■ Others

Growth Scenario＋17.7％ YoY1）Buildout platform template and rollout acrossindustries
2）Service diversification and rollout tobusiness operators
3）Provide financial function to capture theexpanding Embedded Finance

Ginko Pay

＋18.5％ YoY

Progress on initiatives
Ginko Pay

Issuing/
Acquiring

Additional functionality to existing customers
Additional functionality to existing customers
Q1 FY2022 Launch issuing prepaid card for
major manufacturers NEW
NEW
Q4 FY2022 Service expansion to payment customers

Issuing/Acquiring＋21.8％ YoY

Q4 FY2021 White label sale of Cycle byGMO
OthersQ1 FY2021

Q1 FY2022※ FI stands for financial institution.

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

19

3.4

Offline/IoT

Increase in transactions from the recovery in offline
consumption contributing to overall performance
2021(Act.)※1

OP (¥bn)

0.58

2025

(Target as of 2021)

2.0～

Growth Scenario
1) Expansion of stock-type revenue fromacquisition of large merchants ※2
2) Strengthen collaboration and businessreorganization of SMBC GMO PAYMENT3) Extract synergy between online/offline (stera, etc.)
4) Penetrate into Unattended Market
5) Promote implementation of tap-and-pay inmobility segment
Progress on initiatives
stera

Unattended
MarketMobility
Terminal-freepayment

Revenue by business model for GMO-FG and
GMO-CAS (quarterly trend) ※3(¥ Mil)700% YoY■ Initial (Right)

20/1Q

21/1Q

22/1Q

＋78.4％ ＋36.3％＋72.5％■ Stock (Left)＋45.5% ＋25.5%＋27.8%■ Fee (Left)＋100.0％ ＋26.0％ ＋163.2％■ Spread (Left)＋13.1％＋8.5％＋21.4％ 1,800
1,600

600
1,400
500

1,200

400

1,000

Growth of major clients of GMS and drugstores
300
Recovery in transactions at restaurants and leisure segments
Stock-type revenue up 55.8％ ※3

Q1 FY2022 Implement IoT terminals tosmart stores and SAs NEW
Q1 FY2022 Launch of JCB tap-and-pay NEW
Promote initiatives for terminal-freepayment such as Tap to phone NEW

800
600

200
400
100

200
0

0

※1 OP target for 2025 includes GMO Financial Gate and GMO Card System. ※2 Stock-type revenue is the sum total of stock, fee, and spread revenues.
amounts according to GMO-PG’s financial performance (after eliminations and consolidated adjustments).

※3 Figures present

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

20

3.5

FinTechRevenue only grew 11.7％ but profit grew 28.9% fromgrowth of high-margin products
2021(Act.)

2025

2.0

OP (¥bn)

Q1 FinTech Service performance(Target as of 2021)

3.0～(% YoY)

Revenue＋11.7％

Growth Scenario
1) Asset shift to high margin services ※■B2B Factoring■Remittance service2) Expand GMO Payment After Delivery
by new merchant acquisitions－48.5％+5.0％

3) Expand sales of B2B financial services
GMO B2B Pay On Credit, B2B Payment Guarantee, etc.
4) Financial inclusion such as Instant Salary byGMO,
GMO Payment After Delivery■GMO Payment
After Delivery

Progress on initiatives
GMO-PG MSB

Cross-selling to large customers NEW
Instant Salary byGMO outperforms plans

B2C BNPL

Q1 FY2022 Trial of credit easing tosome merchants NEW

B2B BNPL

Strengthening partner strategy with B2B
EC operators to promote GMO B2B Pay On
Credit NEW+5.6%

Segment
profit＋28.9％＋47.4％■Lending (overseas) +146.0％■Lending (domestic) ＋18.1％■Early Payment

Q1 FY2021

Q1 FY2022※ High margin services is defined as services where the ROIC exceeds the WACC and consists of GMO Payment After Delivery, overseas lending, B2B factoring (Invoice Early
Payment and B2B Early Payment), B2B AR Guarantee, etc.

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

21

3.6

GlobalEntered expansionary phase from COVID-19 reopening ahead of Japan■ Market environment and business policy・Overseas is transitioning to post-COVID phase. Asia in aggressive expansion phase,
US assessing competitive environment to turn aggressive
・Tailwind for financial business and margins from tapering moves■Strategy fine-tuned to each environment ※Global GDP growth rates
8

Gain on sales of warrants

DeteriorationRecoveryWith-COVID

Post-COVID

6

USA MSB： + 417.8% Phase2＋129.5%Phase3└Aggressive expansion
High growth expectedfrom deals prepared
during With-COVID

42

Phase20└Turn aggressive

-2

Asia
USA
EuropeJapan-4Phase1-6└Cautious① Monitor existing borrowers② build pipeline of new borrowers-8■Revenue from global (% YoY)

NOW
2020 2021 2022E 2023E 2024E 2025E※ IMF：World Economic Outlook Update, January 2022, DataMapper

・Gain of sales of borrower’s warrants
・Expand portfolio（Loan balance ＋191.7%）

Asia MSB： ＋ 65.4% Phase3
・Expand portfolio（loan balance ＋76.9%）
・Expand loan pipeline to Fintech companies① PSP, SME loans② Digital cash loan
③ Digital credit card issuer

Asia payment:－4.7%
Q1 FY2021Q1 FY2022※ Significant increase in equity
income from 2C2P

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

22

4.

Financial Highlights and Reference Materials

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

23

4.1.1

Balance Sheet Changes

Increase in MSB related asset and deposits received
Liabilities/Equity

Asset(¥ Mil)243,997

243,997(¥ Mil)215,455

215,455
200,000

192,022200,000

99,040102,459
104,253

150,000

192,022
78,251150,000

95,83086,751

48,197100,000

100,000

30,59928,82150,000070,479 Prov. For
doubtfulaccounts－2,722

9,590

9,852

End Q4 FY2020

End Q4 FY2021※1

Investment related※2

MSB related

Other

83,25810,082

Prov. For
doubtfulaccounts－2,99850,0000

End Q1 FY2022

Cash & equivalent

18,021

18,52515,15826,06318,89018,931
18,050Equity33,453 ratio
16.5%
End Q4 FY2020

EquityBonds

19,614

19,593

16,814

Prov. For
57,779 doubtful
accounts－2,574

24,83325,741

57,820 Equity

ratio
25.9%

End Q4 FY2021
MSB related※2

Other55,920 Equity

ratio※422.1%

End Q1 FY2022

Borrowings
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 rate 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.

24

4.1.2Major Financial Indicators

Strengthened equity base in order to expands MSB segment
J-GAAP

IFRS(¥ Mil)45%

300,000

Euro Yen CB Due2026
Raised ¥21.1 bn

Third party allotment
Raised ¥8.0 bn

40%

250,000

Euro Yen CB Due 2023
Fully converted

35%

30%

200,000

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

25%

25.9%
150,000

20%

20.1%
15%

100,000

10%
50,000
5%

6.5%

0%

0
End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Total assets

Pretax profit to total assets (ROA)

Return on equity using profit attributable to owners of parent (ROE)

Total equity attributable to owners of parent to total assets (Equity ratio)※ 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 toowners 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.
※ Adopted IFRS accounting standards from FY ending September 2018. The figures for FY ending September 2017 are restated on the same basis.

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

25

4.2

OP and Pre-tax Profit Waterfall Chart

Pre-tax profit grew 41.5% from profit contribution fromoverseas FinTech investment and lending activities
OP YoY: waterfall chart（+31.8% YoY）(¥ Mil)Pre-tax profit YoY: waterfall chart（+41.5% YoY）

EquityFinancial Financial method
income expense income
increase decrease increase＋44 4,299
OP increase ＋208
＋14
＋993

GP
SGA Other Other
increase increase revenue expense＋1,223 －236 increase increase＋10－3 4,116

3,122

3,038
・Personnel cost
＋159
・Ad expense－99
・Increase in profit for PS’s
allowance for doubtful accounts－135
・Cost increase from biz expansion

・Decrease in loss frominv. Partnerships ＋12

・Increase in gains on inv.
Partnerships＋152※ from US, India FinTech
・FX gain increase＋38
・Interest income increase ＋16

・CoS ratio increase－269
・Revenue increase ＋1,492

Q1 FY2021 OP(¥ Mil)Q1 FY2022 OP

Q1 FY2021
Pretax Profit

・This FY:
increase in equity method
income from 2C2P, etc.
22・Last FY
Equity method loss
21

Q1 FY2022
Pretax 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.

26

4.3.1

Revenue by Business Model (Q1 FY2022)

Steady progress of online payments and strong offline terminal
sales(¥ Mil)9,767

10,000Spread11,857

12,000

8,000

5,371

3,149

6,000

2,559

1,851

1,522

2,000

Early Payment Service
Overseas lending
GMO Payment After Delivery
Impact from a merchant on online payment

Fee

4,808

4,000

＋
＋
－
－

1,484

876
Q1 FY2021

InitialStock

Q1 FY2022

Fee＋23.1％ YoY＋ Online payment＋ Offline payment－ Hard comps for remittance from COVID windfall
Stock＋21.6％ YoY＋ Offline payment＋ GMO-MR＋ Online advertising service

Initial0＋11.7％ YoY+69.4％ YoY＋ Strong offline payment terminal sales
Spread※ GMO-MR stands for GMO Medical Reservations Technologies Co. Ltd.

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

27

4.3.2 Quarterly Trend of Revenue by Business Model

J-GAAP(¥ Mil)
5,500

IFRS

5,371
4,808

5,000

4,665
4,500

4,290

4,707

4,731

4,414

4,000
3,646

3,450

3,500

3,289

3,672

3,364

3,149

3,135
3,000
2,500
2,000
1,500

2,291
1,876

1,026

500

343

2,557

1,120

1,191

1,265

2,527

2,532
1,767

1,520

2,922

2,815

2,056

2,382
1,906

712
451

723
235

749
324

1,846

1,661

1,812

1,406
1,179

1,000
687

2,432

2,671

791
247

828
386

1,221 1,236

1,825

1,261

1,937
1,359

1,411

561
296

2,669

2,559

2,083

1,717
1,460

1,478

1,522

1,610 1,552

1,754
1,723

1,851
1,484

1,131

919

889

2,713

876
659
389

316

323

725

362

489

506

0
17/1Q 17/2Q 17/3Q 17/4Q 18/1Q 18/2Q 18/3Q 18/4Q 19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q

Initial

Stock

Fee

Spread※ Online advertising service (stock) and finance lease (spread) revenues are recognized as a net amount with the IFRS adoption rather than the gross method from FY Ending September 2018
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.

28

4.3.3

Revenue Trend by Business Model (Annual)(¥ Mil)IFRSJ-GAAP

55,00050,00045,00040,000Spread35,00030,00025,000Fee

20,00015,00010,000

Stock
5,000

Initial

0
04/9

05/9
TSE
Listing

06/9

07/9

08/9

09/9

10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

21/9

22/9E

※ Online advertising service (stock) and finance lease (spread) revenues are recognized as a net amount with the IFRS adoption rather than the gross method from FY Ending September 2018
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.

29

4.4

FinTech: Assets & Profit Growth (Q1 FY2022)

Steady profit trend from expansion of high margin services
MSB related assets(end-Dec.)+18.4％－11.8％

Segment revenue＋11.7％

Segment profit－48.5％（% YoY)+28.9％+5.0％＋12.1％+5.6%＋16.1％＋47.4％+146.0％＋18.1％＋113.0％－31.9％Q1 FY2021
Lending (domestic)

Q1 FY2022
Lending (overseas)

Early Payment

Q1 FY2021

Q1 FY2022

GMO Payment After Delivery

Remittance

Q1 FY2021
B2B Factoring※2
Finance Lease

Q1 FY2022※2
B2B AR Guarantee※2
Condo Pay

※1 Figures for GMO Payment After Delivery assets (accrued revenues) is net of allowance for doubtful accounts. ※2 The % YoY figures for finance lease, B2B AR Guarantee, Condo
Pay is not displayed.

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

30

4.5.1

Quarterly Trend of CoS and SGA Ratio

CoS ratio fluctuates with changes in revenue mix; decline
from Q3 FY2020 is due to deconsolidation of
MK
※
IFRS

(¥ Mil)11,857

12,000

11,13250.0%

10,64641.1%

10,000
40.2%

8,000

6,459

42.7%

7,769

36.3%
7,295

6,563

33.2%

35.3%

41.2%
9,030
9,356

37.6%
35.9%

8,246
36.4%

7,945

8,160
36.6%
35.5%

35.2%

8,927
39.6%

8,623

36.7%

33.3%

32.7%

35.2%

26.7%

3,292

3,174

27.9%

35.8%
31.3%

32.6%

6,000

31.1%
4,169

3,720
4,000

34.6%

33.8%

28.8%

2,997
2,595
2,143

2,382
2,320

2,581

3,098

2,791

3,004

2,807

2,646
2,818

2,664

3,181

3,433

3,813
2,488

3,872
2,817

40.0%

37.5%
34.8%

36.8%

36.1%

35.4%

9,767

10,121

3,522
3,169

3,466

3,982

3,599

30.0%

4,108
3,684

20.0%

2,302

2,986

10.0%

2,000

0

0.0%
18/2Q

18/3Q

18/4Q

19/1Q

19/2Q

Revenue

19/3Q

19/4Q

Cost of sales

20/1Q

20/2Q

SG&A

20/3Q

20/4Q

21/1Q

CoS ratio

21/2Q

21/3Q

21/4Q

22/1Q

SGA ratio※Figures with asterisk exclude outsourcing expense related to MSB. These outsourcing expenses are not recorded in SG&A from December 2017 (Q1) due to change in accounting
standards.
※ 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.

31

4.5.2 CoS and SGA ratio of GMO-PG and
GMO-EP (Quarterly Trend)
Cost of sales ratio for online payment business trending stably(¥ Mil)
8,000
47.4%

7,682

45.2%

50.0%

44.8%

7,000

6,370

6,709

41.6%
36.8%
6,000

36.7%

36.7%

33.1%

5,000
4,297
4,000

4,384

24.2%

5,126
4,840

4,663

40.0%

5,271

33.3%

24.3%
21.0%

20.9%

20.7%

20.9%

21.2%

20.2%

3,000
2,212

1,000

20.5%

21.0%
2,649

1,039

2,253
1,874

1,800

1,592
1,071

1,043

2,665

2,319
1,783

1,611
1,067

30.0%

31.6%
22.6%

20.7%

1,577

32.5%

4,816
32.5%

23.0%

2,000

41.2%

34.2%

5,142
5,032

6,878

39.7%

6,110

36.5%

6,858

7,122

1,016

1,005

1,065

1,069

1,117

22.1%

19.3%

21.5%
2,932

2,286

20.0%
2,495

2,177

1,984
1,235

1,373

1,339

1,517

1,478

1,609

1,483

0

10.0%

0.0%
18/2Q

18/3Q

18/4Q

19/1Q

Revenue

19/2Q

19/3Q

19/4Q

Cost of sales

20/1Q

20/2Q

SG&A

20/3Q

20/4Q

21/1Q

CoS ratio

21/2Q

21/3Q

21/4Q

22/1Q

SGA ratio

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

32

4.6.1

Operating Stores, TRX Volume and Value(Quarterly Trend)Group-wide annual TRX value reaches ¥8.7 trillion※1※2

Operating stores 129,659 stores, consol. TRX volume approx. 1.12 bn, consol. TRX value approx. ¥2.6 trillion(Stores) (¥100 Mil)
22,000140,000

20,00018,00016,000120,000(10,000transactions)(Reference) online payment TRX volume approx. 1.04 bn, TRX value approx. ¥2.1 tr
Annual consol. TRX value approx. ¥8.7 tr
Excluding GMO-FG it is approx.
¥7.2 tr100,000

14,00012,00010,000100,000

80,000

8,000
6,000
4,000

80,0002,000

60,00060,000

Proportion of spread revenue ≒45%
※Annual average basis (revised in
5% increments)

40,00040,00020,00020,0000

Recurring billing TRX volume0

Pay-as-you-go biling TRX volume

Change in payment processing method at a large merchantOperating stores

TRX value※1 Figure excludes a significant increase in operating stores from a specific merchant. Figures exclude the stores related to a large delivery company from Q1 FY2017. If included, operating
stores would be 360,275 (up 68.0% YoY).
※2 Operating stores are measured on an end-of-quarter basis. GMV value and volume are the total for the respective quarter. ※3 The graph is based using only online payment figures.

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

33

4.6.2

TRX volume and value (Quarterly Trend)

TRX volume growth accelerating from increase in micropayments
Quarterly trend of online payment TRX volume＋28.1% YoY
TRX volume
A certain merchant(Million)

Quarterly trend of online TRX value＋20.3% YoY

TRX value
A certain merchant(¥ Billion)

1,000
2,000

900
800
700

1,500

600
500

1,000

400
300
500

200
100
0

Digital content
Utility
Delivery0+41.5% YoY+71.9% YoY+71.8% YoYDigital content
Utility
Travel & Ticket+61.6% YoY+49.6% YoY+23.0% YoY

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

34

4.6.3

Data Book

Starting this quarter, a data book containing major financial
indicators, KPIs will be made available on the website
Data Book Q1 FY2022
URL：https://www.gmo-pg.com/en/corp/newsroom/pdf/211220_gmo_pg_ir_integrated_report_en.pdf
イメージ

Figures included in the data book:・Revenue by business model・Segment performance・Operating stores, TRX volume and TRX value
・Profit & Loss statement of consolidated subsidiaries

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

35

4.7.1

Consolidated Cashflow Statement(¥ Mil)J-GAAP

55,000Q1 FY2022 changes by item (¥ Mil)
Operating CF：＋15,996
Pretax profit+4,299Advances paid
－5,305
Accrued revenue－7,848
Accrued expense＋7,050
Deposits received＋21,713Chg. in other liabilities－1,020
Income taxes－2,812

IFRS

50,00045,00040,00035,00030,00025,00020,00015,000Investing CF：

10,000－16,840

Deporits to subsidiaries andaffiliates－16,500

5,000
0-5,000Financing CF：－1,338
Increase in ST borrowings ＋3,500
Repayment of LT borrowings －133
Dividends paid
－4,449-10,000-15,000-20,000-25,000
13/4Q

14/4Q

15/4Q

Operating CF

16/4Q

17/4Q

Investing CF

18/4Q

19/4Q

20/4Q

Financing CF

21/4Q

FCF

22/1Q

FCF

：

－844

Cash & Equivalents:

102,459※ 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.

36

4.7.2

Changes in the Consolidated CF Statement

Following factors affect operating CF other than the pretax
profitRelated Liabilities & Assets
Impact from business expansion
Payment Processing Business
Sales proceeds frommerchants under
Representative Contract

Deposits received(liability)

Liability

Operating CF

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

Money Service Business
Early Payment service

Advances paid
(asset)Asset

Operating CF

BNPL service

Accrued revenue(asset)Accrued expense(liabilities)

Asset

Operating CF

Liabilities

Operating CF

Others

Deposits to subsidiaries
and affiliates (asset)

Asset

ー

Investing CFーFunds that are temporarily deposited into the CMS of
GMO Internet Group, which can be withdrawn at any
time depending on cash requirements.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

37

4.8 Expand line-up and expand revenue per customer
Diverse value proposition to existing customers
Promote up-sell through resolving customers’ issues
Our Strengths/Value Proposition

Expand Product

Early Payment•

Highly scalable payment platform

GMO-PG Remittance•

Incorporates various payment methods•

Win-win model of providing value added
services that contribute to revenue/TRX•

Multiparty platform for consumer,
merchants, and payment companies

B2B Financial services
TL (GMO-PG, GMO-EP)

Instant Salary byGMO

Medical Innovation byGMO

Online advertising service

Revenue per merchantDiverse payment methods(¥ thousand)

GMO Payment After Delivery

Payment Platform

GMO B2B Pay on Credit

296

336
310

266
239

Condo PayPG Multi-payment Service
EP payment services

Online/Offline(omni-channel)

SMS Choice of Payment
stera

ExpandingPayment Methods

2017/92018/92019/92020/92021/9Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

38

4.9

BaaS and Cashless（Embedded Finance）

Deploy BaaS business by leveraging our strengths
MarketEnvironment

Strengths••••

Strategy

Potential
Market••Growing cashless and DX demand
Provide financial service embedded into main service of business operators
One-stop offering of payment know-how, money flow management, development
capability, and value
Provide functionalities and applications to FIs and business operators for theircashless business and DX implementation
Promote white label sales of proprietary products
30% of the IT investments by Japanese financial institutions of ¥2.4 tr is for new
development (as of 2021)

Value Proposition

Customers

Conventional financial service
Financial
Institution

Strengthen and optimize corebusiness with the power of IT
Processing Platform

Business
Operators

Transaction Lending

VISA
Business Card

Factoring

Salary prepayment

Peripheral financial service
Expand support
for peripheral
financial services

Ginko Pay

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

39

4.10 Offline Payment and IoT: Initiatives toterminal-free payment
Implementing initiatives for the future without payment terminals.
Strengthen initiatives in mobility and beverage vending machine sectors
Tap to Phone
2021/12～ NewStarted JCB tap-and-pay at Nagaden Bus

2020/12～Started terminal-free NFC tap-and-pay service
with Soft Space Sdn Bhd

NFC Tag Tap-ad-Pay Payment
Likely during FY2022 New
Planning service with large food manufacturer

NFC tags for vending
machines

Instant internet
link

Terminal free

No app or QR
needd

Receiving products

Complete payment

Product
selection

Pay with biometrics(Apple Pay, Google Pay, etc)

Advancedsecurity※ Tap to Phone: A mobile payment service that does not require a payment terminal nor cash register and only uses NFC enabled device for the payment service.
NFC stands for Near Field Communication, a communication protocol based on contactless IC chip that only requires a tap.
NFC tag: A tag which can operate various NFC enabled devices from an NFC enabled smartphone.

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

40

4.11

GlobalLeverage synergy with NAm investments; focus on growth in
SE Asia and India markets
Payment■Global business footprint

Processing
Business
North America

Japan

Money Service
BusinessInnovation
centerProfit center
SE Asia & India

Growth center■Global MSB investment and loan portfolio
2021/1Q

2022/1Q

Loan Balance

Loan balanceApprox.
¥3.8 bn

Approx.
¥8.1 bn■Huge potential credit needs in SE Asian andIndian markets
Unit: US$ bn
0.00%

India

Singapore

USA

0.40%

GDP

Alternative ※2
Finance Market
Volumes※1

SE Asia

0.09%

3,008

2.7

India

0.06%

2,600

1.7

20,893

73.6

USAIndonesia

0.20%

0.35%

SE Asia and India’s credit gap is 3.5 to 5 times larger than US※1 World Bank ※2 University of Cambridge”The 2nd Global Alternative Finance Market Benchmarking Report”

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

41

4.12

Sustainability

Integrated Report outlines the various initiatives torealize sustainability
28 th Integrated Report
URL：https://www.gmo-pg.com/en/corp/newsroom/pdf/211220_gmo_pg_ir_integrated_report_en.pdf

Specific initiatives (excerpt)
Realize convenient and comfortablesociety by promoting EC and cashless
adoption
Promote impact finance to financial
inclusion FinTech companies(microfinance)

Support merchant’s decarbonization
through DX support and paperless
operations
Start payment processing using de facto
renewable energy
Selected as Best Company in the Great
Place To Work survey for sevenconsecutive years
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

42

4.13

Strengthening governanceRealize medium to long term corporate value enhancement fromstrengthening supervisory function of Board of Directors
Corporate Governance Organizational Structure① Transition to company with Audit andSupervisory Committee② Proportion of External Director rises to a third①②③ Established a Special Committee
・ Comprised of five External Directors③

・Strengthen protection of interests of noncontrolling shareholders
・Deliberate on transactions and actions thatentail a conflict of interest between controllingand non-controlling shareholder and reportfindings to the Board of Directors

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

43

Thank You Very Much

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange, Section 1)
URL： https://www.gmo-pg.com/en/corp/

For inquiries, please contact our IR team at the telephone number below:
Corporate Value Creation Strategy Division (IR Department)
TEL: +81-3-3464-0182
E-mail：ir-contact@gmo-pg.com

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

44