Financial Results Briefing for Q2 FY2022
Solid progress in earnings irrespective of externalities; making
progress in growth initiatives for next year and beyond

May 13, 2022
69 th Investor Meeting

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

Agenda1. Summary of Financial Results for Q2 FY2022
2. Growth Strategy and Initiatives in Focus Areas
3. 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 May 13, 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 Q2 FY2022

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

4

1.1

Earnings Summary

Q2 was in line with plans, 1H exceeded guidance
IFRS(¥ Mil)1H FY2021

1H FY2022% YoY

Revenue

19,88824,059+21.0%

Operating
Profit

6,593

8,276

+25.5%

Pre-tax Profit

6,638

8,691

＋30.9%

4,169

5,518

+32.4%

7,499

9,300

＋24.0％

ProfitAttributable to
Owners of Parent

EBITDA

Operating Stores at endof March 2022
KPI (% YoY)

Consol. TRX Volume(Jan. 2022 ～ Mar. 2022)

1H FY2022
Guidance（Achievement %)Q2 FY2022（% YoY）

23,438

12,201(102.7％)(+20.6％)

8,117

4,159

(102.0％)(+19.9％)

7,738

4,392

(112.3％)(+22.0%)

4,795

3,001

(115.1％)(+21.8%)ーーConsol. TRX Value(Jan. 2022 ～ Mar. 2022)

134,096（＋12.8％） Approx. 1.15 bn（+39.7％） Approx. ¥2.7 trn（+44.2％）
o.w., online approx. 1.07 bn（＋34.8％） o.w., online approx. ¥2.1 trn (+31.8％)※ 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.
※ The standards for calculation the number of operating stores has been revised from Q2 FY2022. Figures exclude a specific case and the operating store related to a major delivery
service operator. If included, the number of operating stores is 397,670 stores as of end of March 2022 (up 59.9% YoY).

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

5

1.2

Waterfall chart for TRX ValueTRX value increased from growth in offline payments andincreasing transactions from large-sized merchants

TRX Value of offline and by sector: % YoY (unit: % YoY)
Offline Payments
Online Payments（¥ Tri）＋118.6％＋31.8％
3.0

十億ApparelImpact from a certain merchant
Other
Other
sectorsectorMembership/Service
Growth of new mobility sector merchant2.5※2Travel & Ticket
Recovery trend in travel

2.0

Digital Content
Major telco transaction increased, solid trend in video
streaming

1.5

Utility
Expansion in services to major EPCO
Offline ※1
Acquisition of new large-sized
merchants; additional terminals
used at existing merchants

1.0

0

Total
＋44.2％Q2 FY2022

Q2 FY2021※1 Excludes GMO-PG’s offline payment (GMO Cashless Platform).

※2 Financial institution linked utility.

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

6

1.3

Revenue by Business Model (Q2 FY2022)

Solid performance by stock revenue from processing platform
expansion（Q1 FY2022)（¥ Mil）

Spread12,201
12,00010,00010,121

5,296

3,278
6,000

2,713

1,947

4,000

1,610
2,000

1,678

1,131
0
Q2 FY2021

InitialStock＋ Online payment excl. a certain merchant＋22.1％ YoY ＋21.5％ YoY＋ Overseas lending－ GMO Payment After Delivery＋20.8％ YoY ＋23.1％ YoY

Fee

4,665

8,000

Q2 FY2022

Fee

＋
＋
－
－

Online payment
Offline payment
Hard comps for remittance from COVID windfall
GMO Payment After Delivery

Stock
＋
＋
＋
＋

※ GMO-MR stands for GMO Medical Reservations Technologies Co. Ltd.

＋21.0％ YoY ＋21.6％ YoYProcessing platform
Offline payment
GMO-MR
Online advertising service

InitialSpread＋13.5％ YoY ＋11.7％ YoY＋48.3％ YoY ＋69.4％ YoY＋ Offline payment terminal sales※ The “+” signs indicate growth rates higher than the revenue by business model andthe “-” indicates growth rates that are lower.

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

7

1.4

Segment Results (Q2)

Each segment making steady progress towards full year guidance
Segment Revenue

Consol. ＋20.6％ YoY

231

12,00049＋28.4％ YoY＋ Strong GMO-MR＋ Growth of online advertising

38

2,609

2,896

＋11.0％ YoY+ Growth in overseas lending－ Hard comps from COVID windfall（GMO Payment After Delivery,
Remittance service)

8,000

6,000

4,000

4,159
817

3,470

7,334

＋23.9％ YoY＋21.9％ YoY＋ Growth in overseas lending

670
3,000

4,542
9,084

＋28.3％ YoY＋ Strong GMO-MR＋ Growth of online advertising

5,000

180

10,000＋19.9％ YoY（after consol. adjustments)（¥ Mil）（¥ Mil）

4,000

Segment Profit

3,804

2,000

＋19.4％ YoY＋ Growth of online payment＋ Expansion of offline payment＋ Growth of online payment＋ Expansion of offline payment
1,000

2,000

0

0
Q2
FY2021
21/2Q

Q2
FY2022
22/2Q

Payment Processing Business

Q221/2Q
FY2021

Money Service BusinessQ222/2Q
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

1.5.1 GMO-PG Non-consolidated performance:(Quarterly trend)
Non-merchandise continues to grow over 25%
GMO-PG Non-consolidated Revenue and OP（¥ Mil）
Revenue from a certain merchant (left axis)

3,500

Merchandise revenue (left axis)
6,000

Non-merchandise revenue (left axis)

3,000Operting Profit (right axis)
5,000

2,500

4,000

2,000

3,000

1,500

2,000

1,000

1,000

500

0

0

20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q 22/2Q＋17.6％＋22.6％＋16.5％＋23.8％

Online payment＋17.2％
Excl. a certain merchant ＋23.8％
Merchandise EC＋3.0％
Excl. a certain merchant ＋18.3％
Apparel－38.9％
Excl. a certain merchant＋10.1％
Food & Beverage＋28.1％
Cosmetics, Health food
＋8.5%

＋16.6％+25.7%＋ 0.9％＋21.4％－44.9％＋12.6％＋35.8％＋12.4%

Revenue
Excl. a certain merchant
百万

百万

7,000

% YoY
Q2
Q1
FY2022
FY2022＋25.2％＋28.4％＋30.6％＋47.7%＋26.1％＋37.8％＋47.1％＋30.5%BaaS Support＋40.6％＋26.7％

Money Service Business
Remittance service
Early Payment
Overseas Lending＋11.3％＋8.0％＋40.3％＋40.2％＋10.1％＋ 5.1％＋58.4％＋46.2％

Non-merchandise EC
Digital content
Utility
Travel & Ticket※ Revenues figures present amounts before eliminations and adjustments. Online payment revenue figures are after elimination and adjustments. The figures for BaaS Support is thesum total for Ginko Pay and processing platform. GMO-PG stands for GMO Payment Gateway.

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

91.5.2

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

EP/PS accelerates initiatives to return to the growthtrajectory, GMO-FG continues strong performance

Revenue (Right axis)

GMO-EP Consol.

GMO-PSKPI (Left axis)

GMO-FG Consol.

Revenue+7.7％ YoY Revenue＋7.9％ YoY
Revenue＋52.0％ YoY(2-yr CAGR) ＋48.0％(2-yr CAGR) ＋8.6％（2-yr CAGR) ＋21.3％
KPI: new merchant acquisitions KPI: new merchant acquisitionsKPI: Operating terminals（¥ Mil）（trx）（¥ Mil）

（trx）

1,500

4,000

2,000

200

（¥ Mil）（Units）
160,000

2,000
3,000

1,500

140,000
120,000

150
1,500

1,000
2,000

1,000

100

100,000
80,0001,000

60,000
500
1,000

500

50

40,000500

20,000

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

0

20/3Q

0

20/2Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

0

20/3Q

Functions expands from new
payment services
Purse non-merchandise partner
strategy

0

20/2Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

0

20/2Q

0

※2

Expand product lineup;
focusing on B2B services

Stock-type revenue up 56.4% fromincreased transactions thanks toexpanding terminal footprint※1 The figures for all the companies stated above are amounts before eliminations and consolidated adjustments. GMO-EP Consol. includes GMO Epsilon and
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 an 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1.6.1

Transfer of Shares of 2C2P

Gains from investment to strengthen BS, continue to focus
on overseas by accelerating growth investments
Expand overseas businesses including Payment Processing and Money Service
Business in the Asian region
2C2P Operates payment processing business mainly in Thailand (share of voting rights: 29.34%)
To be excluded as an equity method affiliate
Became an equity
Contract ofJune 2022 (Planned)
method affiliate ontransfer of
Closing: When preconditions of transfer are
Aug-2016
shares; Apr-2022
fulfilled such as regulatory approvals
Implication
Shares to betransferred

All shares held in 2C2P

Counterparty

ADVANCED NEW TECHNOLOGIES (SINGAPORE)
HOLDING PTE.LTD.

Transfer Price

Not disclosed (Full amount in cash)

Reasons fortransfer

Received offer and began deliberations.
After comprehensively considering the price of transfer,acquiror’s policy, business environment, andconcluded that this reconciles with future growth of
GMO-PG

Gain (est.)

Approx. ¥16.0 bn against an investment BV of¥2.0bn (FY2022) and approx. ¥1.0bn (by FY2024)※

Results ofinvestment
capability

Reallocate
management
resources
Strengthen BS

Accelerate
growthinvestments, etc.
such a global
lending

Secure funds for
growthinvestment※ Figures are as of this writing and may vary in actuality. Figures assume a foreign exchange rate of 1USD＝122.41 JPY (a of March 31, 2022).

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

111.6.2

Revision to FY2022 Guidance

FY2022 full year guidance is revised to reflect the estimatedgains from transfer of shares of 2C2P
・No change to revenue and OP guidance・Year end dividend forecast also unchanged at ¥66 per share
Revision to FY2022 Consolidated Financial Forecast (announced on April 18, 2022)（Reference）
FY2021（Reference）% YoY of
Revised
Forecast-

41,667＋20.0％--

12,987＋25.0％

31,53816,000103.0%

13,285＋137.4％

10,04821,04811,000109.5%

8,982＋134.3％

ProfitAttributable to
Owners of Parent

9,860

20,86011,000111.6％

8,818＋136.5％

Basic Earnings per
share Profit¥130.01¥275.04--¥117.98＋133.1％IFRS（¥ Mil）

FY2022Previous
Forecast (A)FY2022
Revised
Forecast (B)Revenue

50,00050,000-

16,234

16,234

15,538Operating
ProfitPre-tax
ProfitProfitChange（B-A）% Change(B/A)

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

12

2. Growth Strategy and Initiatives in Focus Areas

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

13

2.1.1

Expanding Scope of Business

Promote DX with digital payment as payment shifts fromanalog to the digital
Business scope expands fromniche to core
Analog payment

Digital payment

DX Support
Paperless/
SMS payment

OnlineEC migration/
Multi-payment

Delivery
Subscription

OfflineCard/Contactless
Cashless
Mobility

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

14

2.1.2

Expanding Scope of Business

Sustain high growth from expanding service line-up andentering into new domains
2018

Consolidated subsidiaries revenue by service（¥ Bil）
40

30

Joined GroupM&A Strategy (majority investment)• Expand TAM through M&A in payment and
FinTech sectors

Global
BaaS

2017

2.7
2.6

Offline/
IoT

2.5

FinTech

2.4.1

BNPL

2.4.2

SME

2.3.3

Broader
EC

2.3.1
2.3.2

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

15

BaaS Support service
launched (GMO-PG）

2016• Accelerate post-investment growth throughsharing of strategy formulation, personnel
talent and management capability

Becomes a consolidated
subsidiary

2015
Full scale launch of
MSB (GMO-PG）

20

2013
Established

2012
10

Global site established

2005
Joins Group

0
2005
2006
2007
2008
2009
2010
2011
※ Figures present amounts before eliminations and adjustments.

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2.2

Progress of Priority Initiatives

Further buildup of project pipeline to secure 25% growthnext FY and beyond
Estimated rollout timeOP (¥ bil)
2021
2025

（Act.）FY2022
2H

Initiatives and Progress（Target as of 2021）

UtilityCo. B

FY2023
1H

2H

SMS Choice of Payment

Co. C SMS Choice of Payment NEW

Tax payment using smartphone

BroaderEC

FinTech9.5

2.0

18.0～22.0

3.0～

GMP

Co. B

Foreign
Corporates

Co. C In negotiation for nest FY contracting
Support Japan business of NEW
multiple companies

Telecom

Rollout of 2nd phase

Real Estate

Rent, deposit amount, e-contract

SME

New payment service launched

B2B BNPL

Promote
GMO B2B Pay On Credit
Expand nos. of partners

BNPL

1st phase launchedNEW

New initiatives NEW

Offline・
IoT

0.58

2.0～

BaaS

0.6

1.0～

Global-3.0～

stera・Unattended Market penetration

New service add-ons on GMO-PG processing platformNEW
Expand services to payment customers
Overseas lending Strengthen organization;
Expand pipeline
Test launch of products in overseas markets NEW※ GMP stands for Global Major Players, the Offline/IoT includes companies other than GMO Financial Gate, GMO Card System.

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

16

2.3.1

Broader EC: Evolving customer base2025 OP Target¥18.0～¥22.0bn

Pursue diversified and large customers through targeted
initiatives by customer segment

Top 50 customer companies: Revenue by customer and cumulative proportion: FY2018 vs FY2021（¥ Mil）
1,200

FY2018 Proportion of Revenue
FY2021 Proportion of Revenue
FY2021 Revenue by customer

1,000

Revenue
proportion of60%
Top 50FY2018 Revenue by customer

53%

Revenue
proportion of
Top 20

50%

43%

48%

800

40%

Customer
Diversification
34%

600

30%

Shift towards larger-sized customers
Proportion of Top 50 increased to approx. 60% of revenue

400

20%

200

10%

0

0%

10

20

30

40

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

50

17

2.3.2

Broader EC: Competitive advantage of core productContribute to customer’s growth by expanding the value
proposition
GMO-PG
Multi-payment
Service

Product

No. of payment
methods
Onboarding
payment
methods

Sales
Capability

Sales forceOP
Per employee

Development Engineers
Capability
Large scale
development

Current（End of March 2022）

１

Over 30
Multi-payment

Credit card only（※ Prior to 2005）

Feb. 2022
Late Sep. 2022

au Pay NEW
Online direct debit payment NEW

Approx. 40

Approx. 300
Industry specific sales

Approx. ¥9 mil

Approx. ¥18 mil

Approx. 30

Approx. 400（※ as of FY2021）

2014 Visa Business Pay
2016 Ginko Pay for Bank of Yokohama
2017 GMO-PG Processing Platform
2020 SMS Choice of Payment for TEPCO Energy Partner

Ann. TRX Value

Approx. ¥0.9 trn

Approx. ¥9.5 trn

Operating stores

Approx. 26K

Approx. 134K

ｃ ｃ
ｖ ｖ

Credibility

Past(End of September 2011）

3 Star rating from HDI-Japan for Customer Support for 5
consecutive years※ The figures for sales force and engineers include the number of partners of GMO-PG consolidated subsidiaries and external collaborators.

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

18

2.3.3

Broader EC: SME Sector

Aim for revenue to return to 25% growth trajectory throughnew initiatives and entering into new domains
Revenue from SME sector and growth trajectory (quarterly)（¥ Mil）

COVID
windfall andits reversal■ GMO Medical Reservations Technology■ GMO Epsilon

25％ Growth trend

1,500

Aim to acquire 1,500 new merchants
per month to return to 25% growth

Slump

Initiatives① Target start-ups with new payment service

1,000② Non-merchandise: Industry partners
Food/Beverage: Takeout x payment
Construction: Construction tech x payment
Education: Membership management x payment
Real Estate: Real Estate tech x payment
Medical: Telemedicine x payment, hospital DX

500③ B2B for SME sector
22/1Q

21/3Q

21/1Q

20/3Q

20/1Q

19/3Q

19/1Q

18/3Q

18/1Q

17/3Q

17/1Q

16/3Q

16/1Q

15/3Q

15/1Q

14/3Q

14/1Q

13/3Q

13/1Q

12/3Q

12/1Q

11/3Q

11/1Q

0

Accounting DX
Order system
Accounting system

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

192.4.1

FinTech2025 OP Target¥3.0 bn ～Expand service to achieve strategic goals while paying
attention to financial environment

Money Service Business performance (% YoY)（¥ Mil）

Revenue＋11.0％

Major service% YoY（below 25%）

Remittance+7.9％

Funding method

ー （No funding needed）

2,500

GMO Payment
After Delivery

2,000

1,500

1,000

Profit＋21.9％+7.9%

Cash on hand, borrowing

Early Payment＋6.1％

Deposits received in payment
processing
CB funds (zero coupon)

Overseas
lending＋67.7％

500

Domestic
lending0

Q2 FY2021

Q2 FY2022＋8.1％

Strategic purpose/policy• Respond to flexible fundingneeds such as refunds• Cross-sell with payment
service• Full line-up of payment
methods• Increase customer revenue• Acquire large merchants under
representative contract• Cross-sell with payment
service

CB funds (zero coupon)• Capture high overseas growth
Funds from gains on investment • Acquire leading edge businessknow-how to create new
businesses
CB funds (zero coupon)• Acquire merchants under
representative contract• Cross-sell with payment
service

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

20

2.4.2

FinTech: Domestic SMB sector’s potential

Preparing multiple medium-term initiatives in the promising BNPL
Domestic MSB segment profit and target (image)

Domestic MSB

BNPL business (GMO-PS)

BNPL

OP target of¥3.0bn+ incl.
overseas
MSB

FY2021

列1

列2

列3

Strategy ①

New initiative (to be launched)

Strategy ②

Penetrate into non-merchandise
sector (e.g. entertainment, education, home equipment and reform)

Strategy ③

Provide BNPL to B2B platformers•
B2B wholesale mall “Netsea”•
Cloud commerce platform “ebisumart”•
Cloud sales management system forapparel “One’sCloset”

Strategy ④

Raised credit line to several merchants

FY2025
Bottom up
profit amount

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

21

2.5.1

Offline and IoT

2025 OP Target ※1¥2.0bn ～Growth of KPI and stock-type revenue by acquiring large
merchants to drive terminal sales※2

GMO-FG & GMO-CAS Revenue by business model ※3（¥ Mil） (quarterly)
1,800

KPI

Q2 FY2022

Q2 FY2021

1,600

TRX Volume＋126.8%＋85.7%

1,400

TRX Value＋118.6%＋53.9%

700

600

500
1,200

400

300

1,000

■ Initial (right axis)＋50.7％＋62.3％

800■ Stock (left axis)＋33.3%＋19.3%

600■ Fee (left axis)＋166.6％＋32.4％

400■ Spread (left axis)＋17.3％

＋1.0％

200

100

0

Revenue200

0※1 The figures for 2025 OP target includes companies other than GMO Financial Gate and GMO Card System.
※2 Stock-type revenue is the sum total of stock, fee and spread revenues.
※3 Figures present GMO-PG’s earnings (after eliminations and adjustment).

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

22

2.5.2

Offline and IoT

Accelerate growth through diverse strategies
Growth strategy ①
strengths

Merchant acquisition leveraging company’s•

Acquire large merchants by leveraging the collaboration with SMCC
and the advantage of owning payment centers•

Of the Top 30 GMV contributors, 13 were newly acquired within ayear and/or merchants whose GMV increased

Growth strategy ②•

Q2 FY2022 Share of GMV of Top 30 merchants(Total GMV: ¥116.3bn)

29%■Existing merchants

71%■New merchants

Private sector
merchants

Expand scope of cashless support

Customer base expanding with payment terminals being
deployed in mobility area and government offices

Cashlessneeds

Police Dept./
License center

Public transport

Municipal offices
Growth strategy ③••

Offline and Online customers

Leverage Group synergy

Provide cashless payment infrastructure through PG+FG for
omni-channel (online+offline) needs
Collaboration with restaurant platformer and GMO OMAKASE

Coffee chain store

Entertainment

English lessons

Bookstore/ Publisher

Gym

TicketApparelHealth Food

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

23

2.6.1

BaaS

2025 OP Target¥1.0bn ～（Embedded Finance）

Expand BaaS/Embedded Finance by further strengthening
the product and sales structure
Revenue of Ginko Pay & Processing platform (quarterly) ※1■ Issuing (Processing PF)■ Acquiring (Processing PF)■ Ginko Pay

External environment/Needs
Q2 FY2022% YoY

Expand BaaS/
Embedded Finance

Processing PF ※2＋57.6％
Reduce systemdevelopment load

Processing PF ※2
Expand functions
Expandcustomer

Co. A

Co. D

23/4Q

23/3Q

23/2Q

※3 Expect rollout to several start-ups

23/1Q＋40.6％

22/4Q

Total

22/3Q

22/2Q

22/1Q

Respond to tighter
security

Add-on Issuing gateway NEW
Function Network service NEW
NEW
FEP service

GMO-PG Processing platform
Co. B Co. C

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

20/1Q

19/4Q

19/3Q

19/2Q

19/1Q

18/4Q

18/3Q

18/2Q

18/1Q

17/4Q

17/3Q

17/2Q

17/1Q

Ginko Pay ＋20.7％

Co. E

Co. F

23/1Q
Co. G

24/1Q
Co. H

…

※1 Includes revenues from non-financial institutions for Ginko Pay and processing platform.
※2 PF stands for platform.
※3 Cycle byGMO: Revenue linked business card.

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

24

2.6.2

BaaS: Acquiring large customers（Embedded Finance）

Acquired multiple large customers over the past few years
with strategic deployment of BaaS support services
FY2021 Revenue of Top 50 customer（¥ Mil）
1,200

FY2021

Revenue by customer

FY2021 Revenue of BaaS customers

1,000(acquired after FY2019)

800

600

BaaS
400

200

BaaS

BaaS

BaaS

BaaS

0
5

20

24

30

44

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

25

2.7.1

Global2025 OP Target¥3.0 bn～

Expand FinTech loans in the rapidly growing credit markets
of India and Singapore
SingaporeUSA※2・Population: Approx. 1.45 bn (2025)New
market+725.6%・Smartphone/Internet users: 2 nd globally※3
rd・No. of unicorns: 81 companies, 3 globally (end 2021)

・Govt. led DX promotions accelerate with COVID※2■UPI Usage ※4－13.3%+11.9% （¥ trn）
End 2Q FY

End 2Q FY

2021

2022

■Executed loan to a key Indian FinTech unicorn
・Issue VISA card (digital/physical) for young generation
・Exceeded registered users of 10 mil. by leveraging
strong design capability
Expand pipeline by strengthening organization(offices/personnel, etc.)

115

120

104

100

Jpan’s cashless payment GMV

2Q FY 2021 2Q FY 2022

■Population pyramid (2020)

80
60
40

235%
CAGR

20
0
17

18

19

20

21

10%

0-24 age bracket: 44.2%

8%

Pop. growth+1.0%/year

6%
4%
2%
0%

90-94

−12.1%

75-79＋30.6%＋83.1%※1・Nominal GDP: Approx. ¥516 trn（2025）

60-64+45.9%

Indonesia
India

45-49

USA MSB■Growth potential of Indian market

30-34＋61.5%

Asia MSB■Loan balance (% YoY)

15-19

Asia
payment

0-4■Revenue (% YoY)

※1 Figures from IMF. ※2 United Nation’s ”Population Division“. ※3 VENTURE INTELLIGENCE、※4 National Payment Corporation of India (NPCI).
※UPI：United Payments Interface and is the largest, government-led digital payment method, where C2C payments are free of cost and offers instant remittance function. Only abank account and smartphone is needed to use this payment method.

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

26

2.7.2Global: Overseas Investment Strategy

Maximize investment returns by deploying optimal strategies
that captures the trends
Overseas investment

SEE page 46（¥100 Mil）
200

Completeddivestment inApril (partial)：Direct Investment

80

Expected closure in June

Completed divestment
in March：Fund Participation
60

Pursue investment
return from both
perspectives

40

Strategic:
Strengthenbusiness (P/L)

20

Financial:
Strengthen BS

Investment recovery period from 2013 to 2016

Cash in from investment returns

0-20

Cash out from executing investment

2013

2014

2015

Investment environment$3.0 trn. USD$3.8bn USD

2016

2017

2018

2019

2020

2021

2022

※

FRB’s balance sheet $8.7 trn

Excess liquidity$131.5 bn USD

Global FinTech
invesment

Rise of FinTech※ FRB balance sheet: Board of Governors of the Federal Reserve System. Global FinTech investment figure is based on CB Insights’ “State of FinTech” and “FinTech Trends to Watch”.

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

27

3. Financial Highlights and Reference Materials

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

28

3.1.1

Balance Sheet Changes

Financial strength improved from investment returns
Liabilities/Equity

Asset（¥ Mil）

252,257

250,000

250,000

FY2021

215,455

215,455
200,000

192,022200,000

192,022

104,523

86,751
25,741

100,000

30,59928,821

9,590

9,852

16,314End Q4 FY2020

End Q4 FY2021

End Q2 FY2022

0

Investment related※1
Other

50,0000

MSB related

EquityCash & Equivalent

Bonds

19,636

19,59318,021

19,50015,15818,89016,814

Prov. forProv. for 78,195 Prov. for
doubtful 70,479doubtful
doubtful
57,779accounts
accounts
accounts－2,574－2,722－3,03150,000

Valuation gain
(post-tax) of
Coda Payment(incl. otheritems of equity)+4,81627,42446,540100,000

Dividend−4,47478,251150,000

95,830

Profit+5,61599,087111,206

150,000

Major changes

252,257 vs. End Q4（¥ Mil）

18,931
18,050Equity33,453 ratio
16.5%
End Q4 FY2020

Gain on sale ofTaulia (post-tax,
incl. in retained
earnings)＋1,017

20,99457,820 Equity 65,613 Equity ※4
ratio
25.9%

End Q4 FY2021

ratio
25.2%

End Q2 FY2022

MSB related ※2

Borrowings

Other※2

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.

29

3.1.2Major Financial Indicators

Strengthened equity base with the expansion of MSB
J-GAAP

IFRS（¥ Mil）
300,000

45%

Third party allotment
Raised ¥8.0bn

40%Euro Yen CB Due2026
Raised ¥21.1 bn

35%

250,000

Euro Yen CB Due 2023
Fully converted

30%

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

25%

200,000

25.9%
150,000

ROE baseline
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.

30

3.2

OP and Pre-tax Profit Waterfall Chart (Q2 Cumu.)

Pre-tax profit grew 30.9% from profit contribution from forex gains
related to overseas investments/loans and gains on investment
OP YoY: waterfall chart（+25.5% YoY）（¥ Mil）

Pre-tax profit YoY: waterfall chart（+30.9% YoY）（¥ Mil）

EquityFinancial Financial method
profitincome expense
OP increase increase increase
increase ＋339
＋37 8,691－6＋1,683

SGA
GP
Other
Other
increase increaserevenue expense＋2,452 －789increasedecrease＋6 8,276
＋13

6,593

6,638
・Ad expense－148
・Increase in PS’s prov. for
doubtful accounts－250
・Cost increase from other biz
expansion・Decrease in equity
method loss
－37
・Increase in gains on inv.
Partnerships＋65※from US, India FinTech
・FX gain increase＋238
・Interest income increase ＋35

・CoS ratio increase－464
・Revenue increase ＋2,916

Q2 Cumu.
FY2021 OP

Q2 Cumu.
FY2022 OP

Q2 Cumu. FY2021
Pretax Profit

Q2 Cumu. 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.

31

3.3.1

Revenue by Business Model (Q2 Cumulative)

Solid stock revenue from expansion of processing platform（¥ Mil）

24,05925,00020,00019,888Spread10,6689,473

15,000

6,428
10,000

5,273

2,008

Initial

Stock

Fee

＋21.9％ YoY

＋
＋
－
－

Online payment
Offline payment
Hard comps for remittance from COVID windfall
GMO Payment After Delivery

3,163

＋
＋
＋
＋

Spread※ GMO-MR stands for GMO Medical Reservations Technologies Co. Ltd.

＋21.3％ YoYProcessing platform
Offline payment
GMO-MR
Online advertising service

InitialQ2 Cumu. FY2022

Fee

Online payment excl. a certain merchant＋21.8％
Overseas lending
Early Payment service
GMO Payment After Delivery

Stock

0
Q2 Cumu. FY2021

＋
＋
＋
－

3,799

3,133

5,000

＋12.6％ YoY＋57.5％ YoY＋ Strong offline payment terminal sales※ The “+” signs indicate growth rates higher than the revenue by business model andthe “－” indicates growth rates that are lower.

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

32

3.3.2

Quarterly Trend of Revenue by Business Model

J-GAAP

IFRS（¥ Mil）
5,500

5,371

5,000

4,808
4,665

4,500

3,646
3,450

3,500

3,135
3,000
2,500

2,291

2,432

1,406
1,191

1,265

723
500
235

749
324

791

3,364

3,289

3,149

2,382
1,906

1,520

828

1,846

1,812

1,937

1,825

889

1,236

247

1,723

1,261

1,359

1,411

1,460

1,478

1,610 1,552

1,522

1,851

1,754

1,678

1,484

1,131
876

919

296

1,947

2,083

1,661
1,221

2,669

2,559

1,717

659

561

386

2,527

3,278

2,922

2,713

2,532

1,179
1,000

3,672

2,815

1,767

2,000
1,500

2,557

2,671

4,731

4,414

4,290

4,000

4,707

5,296

389

316

323

362

19/1Q

19/2Q

19/3Q

19/4Q

725
489

506

0
17/3Q

17/4Q

18/1Q

18/2Q

18/3Q

18/4Q

Initial

Stock

20/1Q
Fee

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

21/3Q

21/4Q

22/1Q

22/2Q

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.

33

3.3.3

Revenue Trend by Business Model (Annual)（¥ Mil）

IFRS

J-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.

34

3.4

Segment Results (Q2 Cumulative)

Steady progress in all segments towards full year guidance
Segment Revenue

Consol. ＋21.0％ YoY（¥ Mil）

Segment Profit＋25.5％ YoY（after consol. adjustments)（¥ Mil）
11,00025,000＋32.9％ YoY

457＋ Strong GMO-MR＋ Growth of online advertising
20,000100

10,0009,000

58 8,276

343＋11.3％ YoY

5,669

5,092

8,000

15,00017,951

10,000＋24.2％ YoY＋ Growth in online payment＋ Expansion of offline payment

14,456＋ Strong GMO-MR＋ Growth of online advertising

1,448＋ Strong Early Payment
7,000 6,593+ Growth in overseas lending－ Hard comps from COVID windfall
6,000（GMO Payment After Delivery,
remittance)

1,160＋24.8％ YoY＋ Strong Early Payment＋ Growth in overseas lending

8,803

5,000

＋22.0％ YoY＋ Growth in online payment＋ Expansion of offline payment

7,215

4,000

＋72.2％ YoY

3,000
5,000

2,000
1,000

0

0

Q221/2Q
Cumu.
FY2021

Q221/2Q
Cumu.
FY2021

Q222/2Q
Cumu.
FY2022

Payment Processing Business

Money Service Business (MSB)

Q222/2Q
Cumu.
FY2022

Payment Enhancement Business

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

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

35

3.5.1

FinTech: Assets & Profit Growth (Q2 FY2022)

Steady profit trend from expansion of high margin services
MSB related assets (end-Mar.)（¥ Mil)+17.7％

80,000

Segment revenue

Segment profit（¥ Mil)（¥ Mil)－17.5％＋11.0％－32.9％（% YoY)+21.9％

800

+7.9％

2,500

＋16.9％

600

60,000

2,000

1,500

40,000+7.9%＋17.2％

400

1,000

20,000200500＋30.6％+8.5%

0
End Q2 FY2021

End Q2 FY2022＋6.1％+67.7％＋8.1％

0
Q2 FY2021

Q2 FY2022

0
Q2 FY2021

Q2 FY2022

Lending (domestic)

Lending (overseas)

Early Payment

GMO Payment After Delivery

RemittanceB2B Factoring※2
Finance Lease※2
B2B AR Guarntee

Condo Pay※2

Instant Salary byGMO※2※1 Figures for GMO Payment After Delivery relatd 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.

36

3.5.2

FinTech: Assets & Profit Growth (Q2 Cumulative)

Steady profit trend from expansion of high margin services
MSB related assets (end-Mar.)（¥ Mil)+17.7％

80,000

Segment revenue

Segment profit（¥ Mil)（¥ Mil)－17.5％＋11.3％－41.3％（% YoY)+24.8％

+6.7％

5,000

1,200

＋16.9％
60,000

4,000

800

3,000
40,000+6.7%＋17.2％

2,000
400

20,0001,000＋30.6％+8.5%

0
End Q2 FY2021

End Q2 FY2022＋23.0％+102.1％＋12.8％

0
Q2 Cumu. FY2021

Q2 Cumu. FY2022

0
Q2 Cumu. FY2021

C2 Cumu. FY2022

Lending (domestic)

Lending (overseas)

Early Payment

GMO Payment After Delivery

RemittanceB2B Factoring※2
Finance Lease※2
B2B AR Guarntee※2
Condo Pay

※2
Instant Salary byGMO※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.

37

3.6.1

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

12,00042.7%
10,000

41.1%

37.6%

36.3%
8,246
8,000
35.3%
6,563

35.4%

7,945

7,769

7,295
36.4%

35.5%

35.9%

9,030
36.6%

9,356

8,160

8,623

8,927

35.2%

39.6%
37.5%

36.7%
36.8%
35.2%

32.7%

26.7%

27.9%

34.6%

32.6%

3,720

31.3%

2,382

2,997

3,098

2,581

3,004

2,791

2,646

2,807

2,818

2,320

2,664
2,986

3,181

3,292
3,433

3,174

3,813

3,872

2,488

2,817

33.4%

40.0%

35.8%

28.8%

33.8%

31.1%

33.3%

6,000

4,000

10,121

34.8%

36.1%

50.0%

11,132

10,646
9,767

41.2%

12,201

3,522
3,169

3,466
3,599

4,169

4,108

3,982

3,684

33.0%

30.0%

4,075
4,021

20.0%

2,302

10.0%

2,000

0

0.0%
18/3Q

18/4Q

19/1Q

19/2Q

19/3Q

Revenue

19/4Q

20/1Q

Cost of sales

20/2Q

20/3Q

SG&A

20/4Q

21/1Q

21/2Q

CoS ratio

21/3Q

21/4Q

22/1Q

22/2Q

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.

38

3.6.2 CoS/SGA ratio of GMO-PG & GMO-EP(Quarterly Trend)
Cost of sales ratio for online payment business trending stably(¥ Mil)
8,000

7,682

47.4%

50.0%

45.2%

44.8%

7,000

6,370
36.5%

6,000

36.8%

36.7%
5,032

5,000

4,663

6,110

33.1%
4,816

7,906

6,709

41.6%

6,858

7,122

6,878

41.2%
39.7%

40.0%

34.2%

5,142

5,126

5,271

32.5%

33.3%

31.6%
32.5%

4,840

32.9%

4,384
4,000

24.3%

30.0%
22.1%

23.0%
20.7%

21.0%

20.9%

20.7%

20.9%

21.2%

20.2%

3,000
2,212
2,000

1,067

2,649

2,253

1,071

1,043

1,000

20.5%

1,016

1,592
1,005

1,800

1,874
1,065

1,069

1,117

22.6%

19.3%

20.5%

2,932

2,665

2,319
1,783

1,611

21.0%

21.5%

2,286

2,177

1,517

1,478

2,495

2,603

20.0%

1,984
1,235

1,339

1,373

1,609

1,483

1,616
10.0%

0

0.0%
18/3Q

18/4Q

19/1Q

19/2Q

Revenue

19/3Q

19/4Q

20/1Q

Cost of sales

20/2Q

20/3Q

SG&A

20/4Q

21/1Q

21/2Q

CoS ratio

21/3Q

21/4Q

22/1Q

22/2Q

SGA ratio

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

39

3.7.1

Operating Stores, TRX Volume and Value(Quarterly Trend)Group-wide annual TRX value reaches ¥9.5 trillion※1

Operating stores 134,096 stores, consol. TRX volume approx. 1.15 bn, consol. TRX value approx. ¥2.7 trillion※2（¥ Tri）（Stores） 2.2
140,000 2.0
1.8
1.6

14 mil（100
transactions）(Reference) online payment TRX volume approx. 1.07 bn, TRX value approx. ¥2.1 tr
Annual consol. TRX value approx. ¥9.5 tr
Excluding GMO-FG it is approx.
¥7.7 tr12

120,000 1.4
1.2

10

1.0
100,000 0.8
0.6

8

0.4

80,000 0.2
660,000

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

40,0004

20,0002

00

Recurring billing TRX volume

Pay-as-you-go billing TRX volume

Chane in payment processing 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 397,670 (up 59.9% 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.
※4 The standards for calculation the number of operating stores has been revised from Q2 FY2022. Figures from Q3 FY2015 have been retroactively adjusted on the same basis.

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

40

3.7.2

TRX volume and value (Quarterly Trend)

TRX volume and value continues its robust growth; bothoffline and online trended strongly
Consol. TRX Volume＋39.7％ YoY（¥ Mil)1,200＋44.2％ YoY（¥ Bil)Online payment
A certain merchant1,000

Consol. TRX Value

2,500

Offline payment
2,000

800
1,500

600

1,000

400

500

200

0

0
19/3Q19/4Q20/1Q20/2Q20/3Q20/4Q21/1Q21/2Q21/3Q21/4Q22/1Q22/2Q

Offline payment（GMO-FG）※
Online payment

Digital content
Utility
Travel & Ticket＋126.8%＋34.8%＋57.3%＋162.0%＋40.1%

19/3Q19/4Q20/1Q20/2Q20/3Q20/4Q21/1Q21/2Q21/3Q21/4Q22/1Q22/2Q※
Offline payment （GMO-FG）
Online payment

Digital content
Utility
Travel & Ticket＋118.6%＋31.8%＋47.6%＋167.5%＋96.9%※ Excludes the offline payment of GMO-PG (GMO Cashless Platform).

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

41

3.7.3

Scatter chart of major merchant sectors

Sector diversification achieves both stability and growth■Revenue proportion by sector (vertical axis)/Revenue growth rate (horizontal axis)
20%（Based on Q2 FY2022）

Size of circle denotes thesize of TRX value

Digitalcontent

15%

Proportion of revenue

10%

Cosmetic/
Telco
Health foodInfrastructure
ApparelUtility
Food &
Beverage

5%

C2C

Travel/Ticket
Daily goods/
Office supplies

Insurance

0%
0%

10%

20%

30%

40%

50%

Revenue Growth (% YoY)
※ Apparel excludes a certain merchant.

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

42

3.8.1

Consolidated Cashflow Statement（¥ Mil）

J-GAAP

55,000Q2 FY2022 changes by item (¥ Mil)
Operating CF：＋19,682
Pretax profit＋8,691
Depreciation+1,021
Advances paid
－3,953
Accrued revenue－3,639Accrued expense＋2,153
Deposits received＋20,430
Income taxes－2,942

IFRS

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

15,00010,0005,000
0-5,000-10,000-15,000-20,000
13/4Q

14/4Q

15/4Q

Operating CF

16/4Q

17/4Q

Investing CF

18/4Q

19/4Q

Financing CF

20/4Q

21/4Q

22/2Q

FCF

※ 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.

－12,867

Sales of inv.
＋3,519Deposits to subsidiaries andaffiliates－16,500
Financing CF：－516
Increase in ST borrowing ＋4,500
Repayment of LT borrowing －158
Dividends paid
－4,471
FCF：＋6,815
Cash & Equivalents: 111,206
Mainly Money
Service Business

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

43

3.8.2

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.

44

3.9

Potential Market

Massive business opportunity in the vast DX domain

EC
Migration※1

Proportion offood delivery
to restaurant
revenue※2

Usage rate of
fixed
subscription
charge video
streaming
service※3

Usage rateof taxi hire
app
※4

Rent
payments
using credit
card
※5

Life
insurance
premiums
paid bycredit card

Electric bills
paid bycredit card

※5※5

※1 METI “FY2020 Global Survey Project Concerning Integrated Domestic and External
Economic Growth Strategy Building (E-Commerce market survey)”※2 NPD Japan’s 2021 report on restaurant and ready-to-eat meals survey. ※3 ICT Report & Consulting’s 2021 report on “Usage trends of paying video streaming services.”※4 ICT Report & Consulting’s 2021 report on “survey report on taxi reservation app usage”. ※5 Japan Credit Card Association/Nomura Research Institute’s 2019 report on “research
report on objective assessment of consumption patterns in a cashless society”.

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

45

3.10 Divestments of overseas investments (after Q2
FY2022)
Reap the fruits of growth through investments in leading FinTech start-ups
•

•
•
•

•
•
•
•
•

•
•
•
•
•

Payment processing company operating in the main SEAsian markets of Thailand, Singapore,
Malaysia
Owns a vast payment network for online/offline, clients include mega-tech, online
marketplace operators, global companies
Announced strategic partnership with AntGroup in April 2022 and became its subsidiary
Impact to earnings: Deal close expected in June, not included in Q2 results

Major SEAsian content payment provider, headquartered in Singapore
Operates Asia’s largest game & in-game platform Codashop
Onboards over 300 diverse payment methods, service footprint covering more than 50
regions
Top tier investors such as Smash Capital, Insight Partners, GIC partially acquired frominvestors including Global Payment Fund in April 2022 ($690 mil USD)
Impact to earnings: Fair value measurement based on divestment price, leading toincrease in other items o equity

Major provider of working capital management solutions, offering supply chain finance,
AR finance
Built powerful eco-system to support fund raising with major financial institutions such
as J.P. Morgan, etc.
Fund processing GMV of over $500bn annually, with a network of over 2 million
corporates utilizing Taulia’s platform
SAP acquired majority of shares owned by investors including GMO-PG in March 2022
Impact to earnings: Gain on sale led to increase in retained earnings via othercomprehensive income
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

46

3.11

S（Society): Contributions to talent

Build an environment for each person to have highaspirations and ownership to grow※1

Acquired the “Kurumin Mark” certifying us as a company that supports childraising under the Act on Advancement of Measures to Support Raising Next
Generation Children (certified in March 2022)【Points evaluated positively】
・ Revision of staggered office hours and scheme for short working hours
・Implementation of subsidy for babysitter use※2

Selected as Best Company in the Great Place to Work survey by Great Place To
Work® Institute Japan for 7 consecutive times (selected in July 2021)【Points evaluated positively】
・Place for partners to fully exercise their potential
・Sharing vision with all partners towards organizational growth of businesses andcompany・Developed proprietary talent development system and employee benefits, etc.
Major employee welfare system
In-company nursery (GMO Bears）/ Maternity leave / Spouse pregnancy leave / Line changesystem / Childcare leave, etc.
※1 Given the rapid decline in birth rates, this Act was formulated under the joint auspices of government, municipals and corporates to promote the healthy growth of children thatwill lead the next generation. The Act was promulgated in April 2005.
※2 A specialized organization with activities in approximately 60 countries that conducts surveys and analysis of “great place to work and announces the results of thosecompanies/organizations that exceed a certain level in major media outlets.

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

47

Thank You Very Much

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange Prime)
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.

48