Supplementary Materials
Financial results briefing for FY2021

November 12, 2021
67 th Investor Meeting

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

Our Track Record of Growth
The result of management policy focused on sustainable growth（Mil. Yen）

+25.0%

16,00014,00012,987

14,00012,00012,00010,000IFRS

Operating stores ※3,4

123,938J-GAAPJ-GAAP

Annual TRX volume ※3

Annual TRX value ※3

3.54 billion¥8.0 trillion

21/9

22/9E

20/9

19/9

18/9

17/9

16/9

21/9

IFRS

22/9E

20/9

21/9

22/9E

20/9

19/9

18/9

17/9

16/9

15/9

14/9

13/9

12/9

11/9

10/9

09/9

J-GAAP

19/9

0

18/9

0

0

17/9

2,000

16/9

2,000

15/9

4,000

14/9

4,000

13/9

6,000

12/9

6,000

11/9

8,000

10/9

10,00010,000

8,000

09/9

20,00018,39914,88915/930,000※1,2+23.6%

14/9

40,00016,00013/9

41,667

16,234 18,000

12/9+20.0％EBITDA

11/9

50,000Operating
Profit
営業利益

50,000 18,000

10/9

Revenue（Mil. Yen）
20,000

※1

09/9

※1

（Mil. Yen）

IFRS（※1）Macro Kiosk has been deconsolidated in FY ending September 2020, the revenue figures above present the continuing operations only and exclude the discontinued operations.
（※2）EBITDA under J-GAAP is calculated as the sum total of operating profit, depreciation and amortization; and EBITDA under IFRS is calculated as the sum total of operating profit
and depreciation.
（※3）Operating stores present the figures for GMO-PG and GMO-EP; transaction volume and value present figures for GMO-PG, GMO-EP, GMO-PS, GMO-FG; of this, online payment
present figures for GMO-PG, GMO-EP and GMO-PS.
The number of operating stores is at the end of September 2021. Transaction volume and transaction value are the figures from October 2020 to September 2021;
transaction volume and transaction value include the figures of GMO Financial Gate Inc.
（※4）Figures exclude a specific case and the operating stores related to a major delivery service operator. If included, the number of operating stores is 311,477 stores as of end of
September 2021 (down 3.9 YoY).

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

2

Consolidated management
Realize Group-wide stable growth through sound business
operation that agilely responds to the businessenvironments at the major Group companies.
Unified Commerce Strategy

Expand payment
method offerings
Share customer baseWide customer
coverage

Sharing of management principles, corporate culture andgroup-wide resource allocation
GMO-PG

GMO-EP

GMO-PS

GMO-FG

Major
business

Online payment
processing business

Online payment
processing business

BNPL business

Offline payment
processing business

Customer

Large corporates(non-merchandize,and merchandize)

Small operators(mainlymerchandize)Merchandize/Nonmerchandize
operators, individual
consumers

Offline stores,
Unattended
machines

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

3

Three Business Segments
Sustain an over 25% OP growth from the expansion of mainstay
payment processing business and its peripheral businesses
Payment Enhancement
決済活性化事業
Business

Revenue
Breakdown
売上収益構成比Online Advertising Service
SSL Service
Delivery Service「Medical Kakumei byGMO」

Operating Profit
営業利益構成比Breakdown（Actual data for FY2021)

1%
12%

2％

etc.

24％

87%
87%

74％
Money Service Business (MSB)

Payment Processing
Business「GMO Payment After Delivery」/「GMO B2B Pay On Credit」
Remittance Service/※2「Instant Salary byGMO」
Overseas Lending
Early Payment Service
B2B Factoring
etc.
Transaction Lending

Online Payment ※1
Offline Payment ※1「Ginko Pay」/Processing
System Developmentetc.

※1 Online payment includes pay-as-you-go and recurring payment and Z.com Payment (overseas payment service).
※2 Instant Salary byGMO commenced service on on July 7, 2021.

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

4

Our Business Eco-system
An eco-system of our value-added services complementing our main
business to achieve mutual growth
Increase inpayment processing

Payment processing(Gross margin 85％)

Payment
Processing
Business

Money Service
Business
Payment
Enhancement
Business

Customer growth
Main Business

Value-added business that contributeto growth of the main business

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

5

Business segment and value proposition
Businesses and services to comprehensively cater tocustomer’s needs
Issues & Needs

Value Proposition

Payment
Processing
Business

・Cumbersome implementation work
・Time consuming payment admin work,
Merchant
less time for main business・Concerns over system troubles

・Package of diverse payment methods
with centralized management
・Cut cost and payment/invoicing work
・Advanced system with customer support

・Limited number of payment methods

・Broad range of payment methods offered・Concerns over payment security

・Safe and smooth payment experience

Consumer

Money Service
Business・Long lead time to deposit (longcash cycle)
Merchant
・Difficulty in recruiting personnel

・Early salary payment service offered

Payment
Enhancement
Business・Cannot chose the timing of payment

・ Flexible payment timing with GMO
Payment After Delivery

・Need to grow revenue

・Support revenue growth throughonline ad placements

・Long waits at medical institutions

・Reservation system for medical
institution that enables seamlessservice from reservation to payment

Consumer

Merchant

Consumer・Improve cash flow cycle with early
payment of sales proceeds

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

6

Revenue Trend by Segment
3 segments of Payment Processing Business, Money Service Business and,
Payment Enhancement Business
J-GAAP（Mil. Yen）
50,000IFRS

Payment
Enhanceme
nt Business

45,000

Money Service
Business

40,00035,00030,00025,000

Payment
Processing
Business

20,00015,00010,000

5,000
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 22/2E
2008
2011
2013
2014
2015
2016
2021
2010
2020
2018
Launched Launched Launched
Launched Launched Revamped Launched
Consolidation Deconsolid ※ Buffort
services
Early
Online※Payment TransactionEarly
becomes a
Offlinetargeting banks of GMO MRT ation of MK
Payment
Advertising
After
Lending
Payment
subsidiary
Payment
GMO-FG/MK
Service
Service
DeliveryServicebecomesubsidiaries※ There was only one segment of Payment Processing Business until September 2015; segment information disclosure began from FY ending September 2016.
GMO-FG stands for GMO Financial Gate. GMO-MRT stands for GMO Medical Reservations Technology, MK stands for MACROKIOSK.
※ Due to the deconsolidation of MACROKIOSK from FY2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

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

7

Positioning of GMO-PG group
Connecting merchants and payment companies through ‘contracts,’‘payment information,’ and ‘money flow’.
Consumer

Merchant
123,938 stores ※１(As of end-Sept 2021)

PC

OnlinePayment

Smartphone/Tablet

OfflinePayment

EC
B2B・B2C・C2C
Taxes, Dues, Utility
NHK, Electricity bill,
Municipalities (e.g. Tokyo)
National Tax Agency,
Automobile Tax
Subscription
Video streaming
Software, ApparelService/Commerce
Digital content
Donation, Insurance,
Travel※2

130,227 terminals(As of end-Sept 2021)
Payment Terminal

GMO-PG consolidated
subsidiaries

Payment
Companies

40+ Credit cardcompanies
Convenience store
Account Transfer
Carrier billing
Bank transfer

E-money
Cash on Delivery
GMO Payment
After Delivery
QR codeID-based payment
Multi-currency
Pre-paid※1 Figures exclude a specific case and the operating stores related to a major delivery service operator. If included, the number of operating stores is 311,477 stores as of end of
September 2021 (down 3.9 YoY).
※2 Operating payment terminals: Starting from FY2021 the figure presents the combined number of payment terminals sold through sales partner and embedded-type payment
terminals. (up 72.0% YoY)

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

etc.

8

Payment Processing Business:
Revenue model of credit card payment processing
Revenue model determined by merchant size and type
■ Four revenue types (i.e. business models)■Revenues by merchant type/size

Initial (Initial revenue)①②

Terminal Sales
Coefficient: Number of terminals (units)
Revenue: Terminal sales (units)
× _Yen; paid at implementation

Municipalities
Enterprise② ③

Sales of
Payment
Terminals①

Stock (Fixed revenue)
Fixed Monthly Revenue
Coefficient: Number of merchants
Revenue： Operating merchants × _Yen

Large and middle-sized
merchants② ③ ④③

Fee (Transaction processing revenue)
Fee based on transaction volume
Coefficient: Number of payments processed
Revenue： Number of payments processed× _YenStart-ups
Small businesses

Spread (Merchant acquiring service revenue)④

Spread of the transaction value
Coefficient: Value of transaction
Revenue： Value of transaction ×_%④

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

9

Payment Processing: Two types of merchant contracts
Created the Representative Contract and effectively changed theflow of revenue proceeds
Payment
Processing

Payment
Processing

Direct contract

Revenue type

GMO-PG consolidated
subsidiaries

A

Flow of Revenue and charges

2.8% Merchant Discount Rate (MDR)

CreditCard
Company

②

Stock

③

Fee

②

Stock

③

Fee

④

SpreadRevenue proceeds
Payment
Company

Merchant

Mainly large companies
and municipalities

Representative
contract

0.5% Spread(Merchant acquiring revenue)

3.0％ charge

2.5％ charge
GMO-PG consolidated
subsidiaries

B

3.2% MDR

CreditCard
Company(If merchant has direct contract with payment company)

Payment
Company

Merchant

Mainly SMEs, but may
include large companies※ Figures included are for illustration and reference purposes only.
※ This illustration represents the contracts for credit card. GMO Epsilon revenues are only derived from spreads (See page 9).

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

10

Revenue Breakdown by Business Model
Aiming for a balanced revenue growth by pursuing various initiatives
IFRS

J-GAAP（Mil. Yen）
50,00045,000Spread40,00035,00030,00025,000Fee

20,00015,00010,000

Stock

5,000

Initial

0
04/9
05/9
TSE
Listing

06/9

07/9

08/9

09/9

2008
Launched
Early
Payment
Service

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

2011
2010
Launched Launched
OnlineOfflinePayment AdvertisingService

2013
2014
2015
2016
2021
2020
2018
Launched Launched Revamped Launched
Consolidation Deconsolid ※ Buffort
services※
Payment TransactionEarly
becomes atargeting banks of GMO MRT ation of MK
After
Lending
Payment
subsidiary
GMO-FG/MK
DeliveryServicebecomesubsidiaries※ GMO-FG stands for GMO Financial Gate. GMO-MRT stands for GMO Medical Reservations Technology, MK stands for MACROKIOSK.
※Due to adoption of IFRS accounting standards, the online marketing service (stock) and finance lease (spread) revenue recognition standard is converted from gross basis to net
basis starting from fiscal year ending September 2018.
Due to the deconsolidation of MACROKIOSK from FY2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

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

11Summary Table of Segments, Business Model and Services
Reporting in 3 Segments and 4 business models■Business Model
Initial（Initial revenue)■ Segment
Online Payment ※Offline Payment
SSL Service

Online Payment
Offline Payment

Stock(Fixed revenue)

Online Payment ※※Payment Processing
Business「Ginko Pay」/Processing「Medical Kakumei byGMO」

Remittance Service「Instant Salary byGMO」

Online Payment

Money Service
Business (MSB)

Early Payment Service
B2B Factoring

Transaction Lending

Early Payment Service

Transaction Lending

Online Payment

Spread(Merchant acquiring
service revenue )Overseas Lending

B2B Factoring「Medical Kakumei byGMO」
Offline Payment「GMO Payment After Delivery」「GMO B2B Pay On Credit」
Overseas Lending「Ginko Pay」/Processing「GMO Payment After Delivery」「GMO B2B Pay On Credit」

Online advertising service

Fee(Transaction
processing revenue)※

System Development

System Development

Offline Payment「GMO Payment After Delivery」「GMO B2B Pay On Credit」
Remittance Service「Instant Salary byGMO」
Delivery service

Offline Payment

Online advertising service

Payment
Enhancement
Business

SSL service
Delivery service「Medical Kakumei byGMO」※ Online Payment includes pay-as-you-go payment, recurring payment, Z.com Payment (overseas payment service). GMO-FG stands for GMO Financial Gate consolidated subsidiaries. .

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

12

Expansion of TAM and Profit Targets
Expand scope of business in the enormous market to achieve2025 OP target of ¥25 bn■ TAM by market segment, GMV, OP target and Priority Initiatives
MarketBaaSBroader EC
FinTechOfflineP.21
Segment(pg. 14-16)(pg. 17-20)(pg. 22-23)
Cashless
2020
2025
2020
2025
2020
2025
2020
2025

TAM
（¥ trn）

20

45（B2C EC）

352

408~

（B2B EC）

GMV（¥ trn）

OP（¥ bn）

Priority
Initiatives

5

13

7.5

18
~22

1

3

（BNPL)

8

2.5（Early Payment,
Transaction Lending）

200
－

200~
－

(Salary bank transfer）

1.8

3~

DX Platform

FinTech

GMP※2

B2B payment service2~2（IT investment by
Financial Institutions

－

－

0.5

1~

DX Platform

87

118

（Offline cashless market）

1

5

0.5

2~

Global(pg. 24)

2020

2025

50

50~

(Overseas lending）

－

－

※2

－

Offline Payment (IoT)

GlobalFinTechFinTech3~

B2B payment service 「Instant Salary byGMO」※1 Figures for TAM, GMV, OP (operating profit) are our estimates and targets. Figures are estimates and are rounded up to the nearest whole number. There is some overlap in the OP
figures for FinTech and Global. Offline OP includes companies other than GMO Financial Gate consolidated subsidiaries. TAM: Total Addressable Market, BaaS: Bank as a Service,
GMV: transaction value.
※2 The OP figure for Global is included in FinTech for FY2020. Global Major Players (GMP): large corporates that provide IT-utilizing services globally.

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

13

Narrowly-defined EC: B2C EC Market
Low cashless and EC penetration compared to US/European countries■ Cashless penetration in Japan(ratio to private final consumption) （％）（¥ trillion)
キャッシュレス比率
Cashless
penetration
29.7
27.9

■EC Penetration Rates in Developed Markets
（％）
UK

80

クレジットカード
Credit70

電子マネー
E-moneycard
デビットカード
Debit card

US

25.0

Japan

19.1

20.0

QRコード
QR

15.0
10.4
10.0
6.0
5.0

13.6
13.6

12.5

3.6

7.0
4.1

7.6
4.6

1.8

2.1

2.5

08

09

10

8.2
5.0

11.3

5.4

5.8

2.8

3.1

3.7

11

12

13

6.4
4.4

7.3
4.8

8.2
5.4

8.8

5.8

9.6

6.2

17.1

50

8.1

30

6.8

0

0.0
15

16

17

18

20
0.2

15
0.15

10
0.1

20
10

14

25
0.25

13.9
40

10.7

9.2

21.3

30
0.3

18.4

16.2
14.5

24.1

20.1

code

60

17.9

26.9

19

20

※Figures are GMO-PG estimates.
Sources：
METI “FY2020 Global Survey Project Concerning Integrated Domestic and External
Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 2nd Quarter 2021 Retail E-Commerce Sales Report”;
Office for National Statistics ”Retail Sales Index internet sales, October 2021”

5
0.05

0

13
14
15
16
17
18
19
20
※ Cashless Penetration = Sum of credit card usage amount, debit card usage
amount, e-money usage amount, QR-code usage amounted divided by private
final consumption expenditure※GMO-PG estimates based on : Cabinet Office “System of National Accounts”
Japan Consumer Credit Association’s Credit Card Statistics
Bank Of Japan’s Payment and Settlement Statistics
Payments Japan Association’s Code Payment Statistics

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

14

Broader EC: Expanding Scope of Cashless Business
GMO-PG group’s growth rate to accelerate with Japan’s migration
towards cashless payment

B2B

B2C

C2C

Enormous market

Narrowly-defined
B2C EC market

Expansion phase¥1,000tr¥1.75 trillion¥19.3 trillion
EC ratio: 8.1%

Merchandise EC

OnlinePayment
CAGR: 6.2%

OfflinePayment
CAGR: 9.8%

2020
8.1
¥19.3tr

EC ratio (%)
Mrkt Size

B2B
Credit card
payment

Public dues/Utility
・Local tax¥38 tr・National tax ¥61 tr

2025
14
¥40tr

Service, Commerce
Subscription

Flea Market
App

Sharing Economy

Omni-channel

Broader EC
Consumer spending¥300trFlea Market※References：METI’s “FY2020 Global Survey Project Concerning Integrated Domestic and External Economic Growth Strategy Building (E-Commerce market survey)”. Figures for 2025 are our estimates.
※MIAC “Breakdown of national tax and local tax revenue (FY2020 Budget and Local Government Finance Plan)”※THE WORLD BANK ”Household final consumption expenditure (current USD)”※Payments Japan Association’s “Cashless Roadmap 2019”; Yano Research Institute’s “Online Payment/Settlement Service Providers 2018.”

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

15

Broader EC: Public Dues and Utility Bills
Introducing card payments for public dues and taxes since theamendment of the Local Autonomy Law in 2006
Local
Local Taxes (automobile tax, light vehicle tax,
governments fixed assets tax, etc.)
Water bill, gas bill, hometown tax
National tax credit card payment website
Broadcasting subscription fee
NHKCredit card usage rate at the end of FY2020:
17.5% (Up ＋0.6％ YoY)
TEPCO
EnergyPartner

Supporting digitalization of electric bill
payment to realize significant shift towards
paperless operations. Making progress inlateral deployment of service.

Expansion expected to continue
Maintenance fee, cram school tuition fee
parking fee, school meal charge, etc.

※Japan Broadcasting Corporation “Business Report for FY2020”

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

16

FinTech: Money Service Business (MSB)
Financial services that only a payment processing company can offer
Services

Related assets「GMO Payment
Pay the sales proceed ahead of
After Delivery」
the deposit from the consumer「GMO B2B Pay On Credit」

Accrued revenues

Remittance service
Instant Salary byGMO※

Efficient and secure refund andremittance processing

Advances paid

Overseas Lending/Transaction Lending

Lending of growth funds

Accounts receivable-trade(short term loans)

Early Payment
service

Improves cash flows by bringing
forward the payment date

Advances paid

B2B Factoring

Early cash conversion of accounts
receivable

Accrued revenues

Business Model
③

Fee

④

Spread③

Fee④

Spread④

Spread④

Spread※Instant Salary byGMO in offered in two types of deposit-type and reimbursement-type. Advances paid is recorded only for the reimbursement-type

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

17

FinTech: Japan’s BNPL market
Expand business by capturing the Japan’s unique BNPL needs
BNPL needs in Japan・Receiving goods before payment
・Cash payment
Consumer ・Manage and control spending
・Limit face time with delivery person

Outlook of Japan’s BNPL market
A growing payment method driven by the(Unit: ¥ billion)
expansion of EC and as an alternative to
1,880
cash-on-delivery and CVS payment(prepayment) and for its use together withcredit cards.
1,572

・Widen customer reach
Merchant ・Means of sales promotion
・Reduce & manage return risk

1,310

EC market breakdown by payment method(2019; by value)
Other 8.9％Pre-paid
6.8％
Carrier billing
8.9％
Cash On
Delivery
6.4％

Credit card
60.6％

1,077

882
（estimate）

Forecast to expand further＋28.4％EC Market Size
※2・3
¥19.3 tril.
EC penetration 8.1%
CAGR 10％

CVS store
10.3％
Migrate to BNPL
※1 Yano Research Institute Ltd. ”Online Payment/Settlement Service Providers 2021”※2 METI “FY2020 Global Survey Project Concerning Integrated Domestic and External
Economic Growth Strategy Building (E-Commerce market survey)”

NEW※3 Yano Research Institute Ltd. ”Online Payment/Settlement Service Providers 2021” and“Domestic Cashless Payment Market 2019”
The figure for FY2020 is an estimate, the figures for FY2021～FY2024 are forecasts.

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

18

FinTech: BNPL business of GMO-PS
Established top-tier market share and earnings base as acomprehensive payment provider
J-GAAP
Key features of our BNPL business• Apply machine learning that utilizes thelarge amount of credit data
• Lower default rate by accumulating credit
data and collection know-how• Provide all payment methods needed in
the EC market as a comprehensive
payment provider(¥ Mil.)

8,000

7,000

Revenue
Net Profit

6,000

5,000

4,000

• Rollout business-use BNPL bycollaborating with B2B operators

3,000

2,000

• Stable profit generation andexpansion of transaction value• Leverage group synergy and build
top tier business foundation

1,000

0
17/9

18/9

19/9

20/9

21/9

-1,000

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

19

FinTech: Instant Salary byGMO
To be the de facto digital and seamless service provider in the¥220 trillion salary market
Collaboration with SMFG
2015

2016

2017

2018

2019

Growth Trend (image)
2020

2021

Positive BusinessprofitReorganization
Capital & Business alliance andThird-party allotment

Target market

Service expansion（※）

Prepaid salary users
Approx. 2 mil.

Salary banktransfer market
Approx.
¥220 tr.

Launched
in July

Acceleration of new customer acquisitions（※）Major sectors: Logistics & transport, delivery, relocation services
Employment type: temporary staff, part-time, etc.

An establishedsalaryprepayment(“sokkyu”)
service

Expertise inpayment andremittanceEntered the enormous salary market
that still depends on old-fashioned
cash handouts and analog processes

2021

2007
SMBC Group launches Instant Salary byGMO※ SMFG: Sumitomo Mitsui Financial Group, Inc. SMBC Group: Sumitomo Mitsui Banking Corporation group (including Sakura Information System Co. Ltd.)

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

20

BaaS & Cashless(Embedded Finance)

Increase Ginko Pay adopters, interlink each service to create an
infrastructure-like service■Ginko Pay■ GMO Cashless Platform

Smartphone-based payment app marketed to financial institutions
that allows for immediate debit from user’s bank account
The Hokuriku Bank

Cashless solution for offline stores which offers a packageof payments methods including QR/Bar code.
Planning to launch new cashless payment method.

The Hokkaido Bank

The Hiroshima Bank

Sumitomo Mitsui
Banking Corporation

Offlinestore

QR/Bar code Payment
services

Japan Post Bank

The Bank of Fukuoka

Ginko Pay
The Kumamoto Bank

GMO
Cashless
Platform

Bank of Yokohama

The Juhachi-Shinwa Bank Bank of Okinawa（As of September 30, 2021）■ GMO-PG processing platform
One-stop support of various payment solutions for theissuing/acquiring businesses at business operators, credit
card companies and banks.

Start providing acquiring support function to JRF Card
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

IoT: Offline Payment Market
Expand business scale through cashless migration and alliance strategy■Offline payment
GMO Financial Gate offers payment terminals for payments made at offline stores.

■Growth factors of the offline market•

Cashless demand from changing externalities such as
the “new normal” lifestyles
Mobile terminal

Embedded-type EMV terminal※

Target: Unattended Market
Vending(Goods)TicketCoffee Machine

Fare Adjustment(Golf, hotel)

Vending(Beverage/Food)

EV Charging Stn.
Parking Fee

Self Check-out

Coin Laundry

Capsule toy
machine■steraRollout of a new payment platform to provide a onestop service that handles variety of payment methods.

CustomerfacingMerchant
facingstera mobile※EMV: uniform standards for IC-chip enabled credit cards formulated by Visa and MasterCard.

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

22

IoT: Offline Payment Market
SMBC GMO PAYMENT: Business reorganization andreinforcing the allianceBusiness reorganization (change in equity interest)
Large
Enterprise

SMBC
GMO-PG
SMCC

Before

After

51％
49％
0％

10％
40％
50％

SMBC stands for Sumitomo Mitsui Banking Corporation.
SMCC stands for Sumitomo Mitsui Card Co. Ltd.

Service
ChargeStart-Ups
Small Enterprise

Terminal
Cost

Large～Medium size
EnterpriseCommission
Rate (%)

Rollout of “stera pack,” a solution service for SMEs

Visa/Mastercard: 2.70～2.90% (※)
Union Pay, E-money, QR/Bar Code: 3.25％※ First year is a flat rate of 2.80%. Second year onwards is arange on 2.70~2.90% based on Visa/Mastercard’s GMV in theprevious year.

¥3,000 per month (excl. tax) x nos. of terminals

Only credit card payments accepted.
Free(※)※ Repaid and exchange is free (if no fault of the merchant)

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

23

Global: Overseas Strategy
Expand customer coverage through strategic investments and assisting
Japanese companies’ foray into the Asian market■Investment target■Payment processing business

Asia: Top payment-related company

US: Innovation-focused equity stakes

Portfolios of Investments by GMO-PG and GMO Global Payment Fund

GMO Payment Gateway’s
overseas locations

India

USA

TaiwanThailand

Providing payment services to Japanesecompanies expanding into the Asianmarket (Z.com Payment)

Hong Kong

＋20％
YoY

Invest in Fintech-related or
cutting-edge payment
service companies

GMO Global Payment Fund
Vietnam
Malaysia
Singapore

Japan’s first Fintech fundtargeting payment-related
startups in Asia (AUM ¥2bn)

Approx.
4.2x

Indonesia

GDP
Approx.＄5.0T
5-6% Growth

FY2017

Initialinvestment

Current market
value

FY2018FY2019FY2020

FY2021

Transaction value in Asia increasing

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

24

Payment Enhancement Business:
GMO Medical Reservations Technology
Provides reservation management system to improve
operations at hospitals and clinics■Medical Kakumei byGMO■Corporate Overview

Seamless services that not only includes reservation
function, but also reception, e-medical record link※
and cashless payment function.

Corporate
name

GMO Medical Reservations Technology Co. Ltd.

Establishment April 11, 2016

① Reservation② Reception③ Consultation④ BillPayment■ “Omatome Shinsatsuken by GMO”
Bundle multiple medical cards of several
hospitals and clinics onto a single app
Contributes to improving reception work efficiency
and cancellation rates

Other services also available
・Medical Kakumei byGMO for veterinary hospitals
・Dentry byGMO

Address Tokyo HQ: Humax Shibuya Building 7F, 1-14-6
Dogenzaka, Shibuya-ku, Tokyo
Hamamatsu Branch: Chanson Building 6F, 125
Daikumachi, Naka-ku, Hamamatsu-shi, Shizuoka
Capital¥259 million yen

Directors President and CEO Toru Kikuchi
Executive VP
Naoyuki Kumano
Director
Satoru Isozaki
Director
Takashi Mitani
Director
Kazunari Taguchi
Executive Officer Mineaki Hagita
Executive Officer Takayuki Koretomo※ The following services of reception machines for repeat visits, e-medical record links and payment functions are available as option services.

（As of October 1, 2021)

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

25

Our Position in the socio-economic New Normal
DX support services that improves client’s PL & BS
■Customer needs & PL/BS changes
PL

EC shop, Utility bills
Multiple payment methods
Paperless (lower postal cost)

Revenue
CoS/COGS
SG&A

CF improvement service

Personnel
Rent
Communication

OP
BS

Asset
Cash

Receivables
Provisions for
doubtful accounts
Fixed assets

Liabilities
PayablesNet Assets

Use cases

Payment arrears

Improve collection rate
Prevent suspicioustransactions
Restaurants
Delivery sales
Cashless implementation
Increase recruits (lower
personnel cost)
Store closures (lower rent
expense)CF improvement service
Event, Ticket Sales
Merchandise sale
Refund demand(lower postal cost)

Our DX support services
PG Multi-Payment service
TEPCO EP’s
SMS Payment Choice
Cycle byGMO
GMO B2B Early Payment
Invoice Smartphone Payment
Fraud prevention
service (Sift)

Online sales support
GMO Cashless Platform

Electronic Invoice Early Payment
GMO B2B AR Guarantee
Online sales support
Remittance service (forrefunds)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
26

26

Product map
GMO-PG’s definition of payment: what enables thedigitalization of money flow
No Credit Risk

Cashless
DX supporting
platform

PG Multi-Payment Service

Ginko Pay

Payment
Service

EP payment service

Processing platform
GMO Dokodemo Cashpoint

SMS Choiceof Payment
GMO Cashless Platform

GMO-PG Remittance service
Early Payment service

Medical Kakumei byGMO

Payment terminals
NEW

Not included intransaction
value

Included intransaction
value

■

GMO B2B Early Payment
GMO B2B AR Guarantee
FinTech loans

Financial
Service※ TL stands for Transaction Lending

TL（GMO-PG、GMO-EP）

Online advertising service

Embedded payment solution

Instant Salary byGMO
■

■
■
■
■
■
■
■

Services thatcomplements payment

GMO Payment After Delivery

GMO B2B Pay on Credit

Condo Pay

Credit Risk※ TL：トランザクションレンディング PF：プラットフォーム
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

27

ESG Initiatives
ESG initiatives are outlined on GMO-PG’s website and in the 27 th fiscal year
annual report.
■Q3 FY2021 Financial results briefing■ GMO-PG website

Consecutively awarded 5-star certification by HDI, theonly company to receive this accreditation in the payment
processing industry
For details, please click on the URL links below:
・GMO-PG website
https://www.gmo-pg.com/en/corp/esg/
・27th FY Annual Reporthttps://www.gmo-pg.com/en/corp/newsroom/pdf/201221_gmo_pg_en.pdf
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

28

Major subsidiaries and equity-method affiliates (IFRS standards)
Consolidated subsidiary

GMO Payment Gateway, Inc.

Equity method affiliate

Multi payment service（targets small-sized merchants）（FY2020）Revenue ¥3,994 mil., Ordinary income ¥2,607 mil. (J-GAAP)GMO Epsilon, Inc.

GMO Medical Reservations Technology Co., Ltd.
Payment After Delivery

GMO Payment Service, Inc.

（FY2020）Revenue ¥6,297 mil., Ordinary income ¥700 mil. (J-GAAP)

Offline payment (TSE Mothers: Security code 4051)（As of end September 2021）equity stake: 57.3%

GMO Financial Gate, Inc.
GMO Card System, Inc.

(As of end September 2021) GMO Financial Gate, Inc. equity stake: 51.0%

GMO Data, Inc.

Sumitomo Mitsui Card Company, Limited equity stake: 49.0%

Payment System Development

BUFFORT Inc.

(As of end Sep 2021) Equity stake: 100.0%

Overseas（Singapore）

GMO-Z.COM PAYMENT GATEWAY PTE. LTD.
GMO-Z.com PAYMENT GATEWAY HONG KONG LIMITED（Headquartered in Hong Kong and a branch in Taiwan）

GMO Z COM PAYMENT GATEWAY MALAYSIA SDN.BHD.

（Malaysia）

GMO-Z.com PAYMENT GATEWAY (THAILAND) CO., LTD.

（Thailand）

GMO-Z.com PAYMENT GATEWAY INDIA PRIVATE LIMITED（India）

GMO-Z.com PAYMENT GATEWAY USA, Inc.

（USA）

Overseas

2C2P Pte. Ltd.
Multiple payment service

SMBC GMO PAYMENT, Inc.

（As of end Sep. 2021）equity stake 29.3％(As of end Sep 2021) Sumitomo Mitsui Card Company
Sumitomo Mitsui Banking Corporation
GMO Payment Gateway Inc.

equity stake: 50.0%
equity stake: 10.0%
equity stake: 40.0%

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

29

Company Outline■Name

GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange First section)■Date of establishment

March 1995

■Location

FUKURAS office (Head office) SHIBUYA FUKURAS 15F, 1-2-3 Dogenzaka, Shibuya-ku, Tokyo, 150-0043 Japan■Capital stock

13,323 million yen（As of September 30,2021）

Humax Shibuya Building 7F, 1-14-6, Dogenzaka, Shibuya-ku, Tokyo Japan■Major shareholders

GMO Internet, Inc., Sumitomo Mitsui Banking Corporation, Mr. Issei Ainoura ,etc

■Management team

Chairman & Director
President & Chief Executive Officer
Director, Executive Vice President
Director, Executive Vice President
Senior Managing Director
Director
Director
Director
Director
External Director
External Director
Senior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Senior Executive Officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Standing Auditor
AuditorExternal Auditor
External Auditor
Deloitte Touche Tohmatsu LLC■Auditor■Consolidated subsidiaries

Masatoshi Kumagai
Issei Ainoura
Ryu Muramatsu
Satoru Isozaki
Yuichi Hisada
Masashi Yasuda
Hirofumi Yamashita
Takehito Kaneko
Yuki Kawasaki
Masaya Onagi
Akio Sato
Shinichi Sugiyama
Tomoyuki Murakami
Masaru Yoshioka
Takeshi Yoshii
Takashi Mitani
Katsunari Mukai
Kazunari Taguchi
Tatsuya Koide
Kiyonobu Inayama
Shingo Ito
Yoshinori Inoguchi
Hirofumi Tozawa
Yasunori Hatada
Mariko Takeda
Junpei Kendo
Katsuyoshi Sota
Kazutaka Yoshida
Takashi Iinuma
Kazuhiko Okamoto
Yumi Hokazono

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc., BUFFORT Inc.
GMO-Z.com Payment Gateway Pte. Ltd. (Singapore), etc.

■Equity affiliates

SMBC GMO Payment, Inc., GMO Data, Inc., 2C2P Pte. Ltd., etc.

（As of October 1, 2021)

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

30

GMO Financial Gate, Inc.: Overview■Name

GMO Financial Gate, Inc. (TSE Mothers, security code 4051)■Date of Establishment

September 1999

■Location

Humax Shibuya Building 7F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo■Capital Stock¥1,605 million yen (As of September 30, 2021)■Major Shareholders

GMO Payment Gateway, Inc. and others■Management

President and CEO
ChairmanManaging Director
Director
Director
Director
External Director
External Auditor
External Auditor
Auditor■Auditor

Deloitte Touche Tohmatsu LLC■Consolidated Subsidiaries

GMO Card System, Inc. (Equity stake: 100%)

Kentaro Sugiyama
Akira Takano
Akio Aoyama(GM of Sales Department)
Masamitsu Ikezawa (GM of Administration Department and Corporate Planning)
Tomonaga Fukuda (GM of System Department）
Masaru Yoshioka （Managing Executive Officer of GMO Payment Gateway Inc.)
Nao Shimamura
Takayoshi Nagasawa
Satoru Ozawa
Takashi Iinuma(CPA; Representative of Iinuma General Accounting Firm)

GMO Data, Inc. (51.0% stake; Sumitomo Mitsui Card Company, Ltd. 49.0%)■Business Description

Stationary-type
payment terminal

Provides cashless payment infrastructure for credit card, debit card, e-money, etc.

Mobile payment
terminal

Embedded-type
payment terminal

POS terminal formerchants（As of November 12, 2021)

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

31

Business outline of payment processing company (1)Problems with online credit card payment in the early days of E-Commerce
Consumer

Payment
company

Merchant①order taking

Large volume of sales slips②Enter each
into theCAT terminal③Make sales report to eachcredit card company （sales processing）

network④Post mail sales
report to each credit
card company

Credit card company

Authorization（approval number
assigned）

Problems for merchants⚫ Duplicate order entry into CAT terminal andmerchant’s system⚫ Sorting documents/transaction for each credit
card company⑤Check whether payment
has been received
Payment⚫ Insufficient check on incoming payment⚫ Human error due to manual input
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

32

Business outline of payment processing company (2)Payment processing service realizes operational efficiency in credit card
payment operations
Consumer

Payment
company

Payment
Processing
Company

Merchants①Order taking

Updatecard data
Real-time credit decision

Network

Sales processing

Transmit
sales data
②Check whether
payment has been
received(data collation)

Payment

Credit card company

Credit・sales

In the early days of Ecommerce, credit card payment was processed offline between themerchant and the credit card company, resulting in work burden on both sides.

The establishment of payment processing companies eliminated this burden for both parties.

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

33

Earnings structure of players in the credit card industry■Take rates of the MDR by player■The flow of MDR

Merchant discount rates levied on
the merchant’s sales proceeds

MDR

3.2%
IssuerMerchant

2.7%
Interchange fee

3.2%

Approx. 2.0%
Approx. 2.5%

Acquirer

IssuerNetwork usage
fee 0.2%

Acquirer
Sales proceeds of themerchant
GMOPG
0.5%
Int’l Brands
Approx. 0.2%

International
Brand※ The above is compiled by GMO-PG with reference to METI materials on “Takeaways from discussion during 4th session, analysis of interchange fee and initiatives towards paperless”

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

34