Financial results briefing for the 1Q of FY2014（ O c t o b e r

1 ,2 0 1 3 - D e c e m b e r

3 1 ,2 0 1 3 ）Theme：Support the evolution and expansion of the EC market
in order to achieve strong, sustainable growth

February

6,

2014

GMO Payment Gateway, Inc.
(3769: Tokyo Stock Exchange section-1)

h t t p : / / c o r p . g m o - p g . c o m /A Cautionary Note About the Contents of this Document

The contents of this document are based on generally
recognized economic and social conditions, as well as
premises judged to be reasonable by GMO Payment
Gateway as of February 6th , 2014.
However, please note that they 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.

2

Agenda1. Conclusion and summary
2. Financial highlights
3. Present status/Future growth strategy
4. Results forecast for the term ending September 2014

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

3

1.

Conclusion and summary

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

4

1.1 Conclusion and summary (1)Net sales increased more than 25% due to the growth andexpansion of the EC market■ Actual results for the 1Q of FY2014 (October 2013 to December 2013)(consolidated)

S

a

e

s

（y-o-y）：

1,645Million yen

1,311Million yen+25.5％

Operating income：

577Million yen

479Million yen+20.5％

Ordinary

601Million yen

480Million yen+25.2％：

355Million yen

284Million yen+25.1％

Ordinary income ratio：
R
O
E
：

36.6％
25.2％

36.6％
22.9％

N e t

l

(previous corresponding period)

income：i n c o m e※ROE=（Net income/92days×365days）/Beginning and ending balance average shareholders’ equity■ Key points from the business results for the 1Q of FY2014
1. As the number and amount of processed payments have increased with the expansion of the existing EC
market and the cultivation of new EC markets, our payment processing business is progressing steadily.
Net sales increased as the revenue of our merchant increased in light of the recovery trend in consumer
spending.
Results of our sales strengthening activities focused on growing merchant in the new EC field.
2. “Online advertising service” and the “GMO Payment Later” service have been doing well and surpassing
projections, and these services realized a synergy effect with the payment processing service.
3. Operating income made steady progress, Ordinary income increased 25.2% year on year due to an increasein non-operating income.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

1.2 Conclusion and summary (2)Results forecast and premises for FY 2014
■ Result forecast for the period ending September 30, 2014
Full year (Forecast)
Cumulative consolidated
financial statements forthe six months ending
March 31, 2014（％ year-on-year change）[Sales][Operating income]
6,934
2,475
(20.3％)(20.8％)
Million yen
Million yen[Ordinary income]
2,460(20.1％)
Million yen[Net income]
1,421(16.8％)
Million yen

3,286
Million yen

1,190
Million yen

680
Million yen(20.3％)

1,201
Million yen(18.3％)(16.6％)(11.2％)■ Premises for the results forecast/Tasks and measures
Tasks
Measures（Short term）
・Strengthening relationships with large
merchants, endeavor to acquire newmerchant.
・Strengthening our stock-type revenue base.
・Create and provide our own high-valueadded service.
（Long term）
・Build a merchant-oriented business model・Alliances with overseas partners, MA・ Building a more efficient sales organization,
providing highly value-added services.
・Strengthen the alliance with our partners, etc.
・Endeavor to acquire new merchant in new EC
market or related to new EC service.
・Maximize synergetic effect between our corebusiness and value-added service.
・Using new service/technology/application.
・Continuous recruiting of qualified personnel.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

2. Financial highlights

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

7

2.1 Summary of the consolidated results
Both sales and gross income marked solid growth, and Ordinary income
achieved a 25.2% growth rate due to non-operating income（Million yen）

1Q of FY2013

Compared to the resultsfor previous corresponding period

Results

GrowthCompared to the results for
Compared to the
cumulated forecast for the previous corresponding
2Q, FY2014
periodGrowth rate

Forecast

3,286

Growth rate

Sales

1,645

1,311

333

25.5％

Cost of sales

317

231

86

37.1%

Gross income

1,327

1,079

247

23.0％

SG&A

750

600

149

24.9%

Operatingincome

577

479

98

20.5％

1,201

+48.1％

Ordinary
income

601

480

121

25.2％

1,190

+50.6％Net income

355

284

71

25.1％

680

+52.3％

20.62

16.55

-

-

39.43

Net income
per share(Yen)+50.1%

Non-operating
income such as commissions
received, exchange- earnings on earnings,
investment in silent
partnership,
etc.
-

-

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

8

2.2 Summary of the consolidated balance sheets
No major changes
Results for
1Q, FY2013

Change（Million yen）

Results for
1Q, FY2014

22,422

16,927

5,494

Current liabilities

Cash and deposits

20,94815,996

4,952

Deposits

Advance payments

393

262

131

Other current assets

1,108

693

414

（Million yen）

Results for
1Q, FY2014

Current assets

Allowance for
doubtful accounts

△28

△24

△4

Fixed assets

1,851

1,128

723

282

223

59

Tangible fixed assets
Intangible fixed
assets

722

502

219

Software

543

380

163

Investments andother assets

846

402

444

Bonds of affiliates

11

11

0

24,27418,056

6,217

Total assets

Other current
liabilities

Results for
1Q, FY2013

Change18,525

13,064

5,461

17,575

12,491

5,083

950

572

377

Deposits from the merchants under the“Merchant acquiring service agreement”

Non-current liabilities

160

67

93

Shareholders’ equity

5,552

4,905

646

Valuation andtranslation
adjustments

27

1

25

Subscription rights
to shares

7

16

△8

5,587

4,924

662

24,27418,056

6,217

Total net assets
Total of liabilities and net
assetsCopyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

2.3 Sales/Ordinary income (Quarterly changes)
1Q sales and ordinary income both marked more than +25% y-o-y■Sales■ Ordinary income
Compared to last 1Q（1,000yen）

Compared to last 1Q（1,000yen）+25.5％

1,645,144+25.2％

1,600,000

1,563,063
1,469,820

601,701

600,000

1,420,034
1,400,000

540,382

1,311,166

1,307,506

1,200,000

1,162,012

1,047,704
952,847

465,565

475,402465,943

433,440

1,061,787
1,000,000

480,414500,000

1,176,791

560,812

Non-operating income,such as commissions
received, exchangeearnings, earnings on
investment in silent
partnership, etc.

396,884

400,000

969,793895,971

400,593389,917333,673

800,000

300,240

300,000

600,000
200,000
400,000
100,000

200,000

00

1Q
FY 20112Q
FY 2012

3Q

4Q

FY 2013

FY 2014

1Q

2Q

FY 2011

FY 2012

3Q

4Q

FY 2013

FY 2014

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

10

2.4 Cost of sales ratio/SG&A ratio（Quarterly changes）
The cost of sales ratio ameliorated due to an increase in
the sales of value-added services that exceeded the initial plan
（1,000yen）
1,800,000

70.0%
1,645,144
1,563,063

1,600,000
53.2%

58.5%

1,400,000

46.9%

47.0%
1,162,012

45.5%

44.0%

1,000,000

969,793

952,847

51.6%

50.0%
1,176,791

45.9%

1,061,787

60.0%

1,469,820

1,311,166

1,307,506
1,200,000

1,420,034

44.4%

43.9%

45.6%

45.8%

1,047,704

44.0%
40.0%

895,971806,331800,000

750,260

696,122498,728
420,657
14.8%

132,598

533,740

441,423

418,782

400,000

200,000

600,491

613,394

600,000

13.4%

13.0%

16.9%

13.9%
132,247

130,075

135,922

142,583

166,050

647,175

517,179
15.3%

14.3%

13.4%

630,407

179,489

220,44217.7%
231,643

30.0%

17.8%

17.8%

253,353

261,235

20.0%
19.3%

18.2%
284,580

317,675

0

10.0%

0.0%
10/12 (1Q) 11/3 (2Q)

11/6 (3Q)Sales

11/9 (4Q) 11/12 (1Q) 12/3 (2Q)

Sales-cost

SG&A

12/6 (3Q)

12/9 (4Q) 12/12 (1Q) 13/3 (2Q)

Sales-cost ratio

13/6 (3Q)

13/9 (4Q) 13/12 (1Q)

Sales-SG&A ratio

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

11

2.5 Sales results for each segment（Quarterly changes）
Overall segment sales increased over 20%（1,000yen）
600,000

500,000

y-o-yInitial revenue+37.0％

Monthly revenue+27.9％

Transaction processing revenue+20.6％

526,214473,999

Merchant acquiring service revenue +25.3％
408,062

326,267
313,562309,391
278,531
264,470

329,121300,000

301,230

298,848

275,605
235,416

350,983
347,313341,807291,439

529,688

470,792

464,540
431,131403,729400,000
356,129582,291

568,811357,956
320,293371,745

390,290363,264

401,280
374,667

441,038
425,963464,560

396,019

336,130

303,811

243,845

200,000
125,630
100,000 83,719

81,031

82,36886,776

102,823
77,557

94,811

117,872

112,981

127,249

127,499

93,0720
10/12 (1Q)

11/3 (2Q)

11/6 (3Q)

Initial revenue

11/9 (4Q)

11/12 (1Q)

Monthly revenue

12/3 (2Q)

12/6 (3Q)

12/9 (4Q)

12/12 (1Q)

Transaction processing revenue

13/3 (2Q)

13/6 (3Q)

13/9 (4Q)

13/12 (1Q)

Merchant acquiring service revenue

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

12

2.6 Sales results for each segment (1)Balanced growth in all segments
New service

New service
Payment systemdevelopment
25％

SSL
21％

Option service of
GMO Epsilon, Inc.

New service

New service“GMO Payment
Later” service

Early payment
service1％

20％

Delivery service

Onlineadvertising
service

3％

23％

Payment
processing
service

Payment
processing
service

54％

57％

Payment
processing
service

96％

2％

Payment
processing
service98％

InitialStockTransaction

Spread（Initial revenue）（Monthly revenue）（Transaction processing revenue）（Merchant acquiring service revenue）※ Image of the revenue structure（％: Sales composition of 1Q,FY2014）

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

13

2.7 Sales results for each segment (2)Future growth strategy for merchant scale or segment• Receive order of paymentrelated system development

Initial revenue

Large-sized enterprises

Monthly revenue
Transaction processing revenue
Merchant acquiring service revenue

×

Initial revenue• Promoting BtoB EC• Business expansion

Monthly revenue

Medium-sized companies• Providing security services,
contributes to stable operationof the customer's system• Providing new service regardingtransaction data analysis

Transaction processing revenue
Merchant acquiring service revenue

××

Initial revenue

Small businesses(Long-tale)

Monthly revenue
Transaction processing revenue• Cultivate new EC market(small-BtoC, CtoC, etc.)• Promoting links with a social
networking service

Merchant acquiring service revenue
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

14

2.8 Transition of the major factors (Quarterly changes)
The number of operating stores increased as planned, andthe number of processed payments grew immensely
Number of operating stores 46,108/ Amount of processed payments 330 billion yen/ Number of processed payments 148 million
Number ofoperating
50,000storesAmount ofprocessed payments（100 million yen）

Number of processed
payments (10,000 trx)

16,0003,000
45,00040,0002,000

14,000Share of the merchantacquiring service
revenuein the settlement
amount: 15%(Dec. 2010)

35,0001,000

12,00030,000025,00010,000Share of the merchantacquiring service
revenuein the settlement
amount: 30%

20,000

8,000

6,000

15,0004,000
10,000
2,000

5,000

0

0
.

08/12

09/3

09/6

Recurring payment

09/9

09/12

10/3

10/6

Online payment

10/9

10/12

11/3

11/6

11/9

11/12

Number of operating stores

12/3

12/6

12/9

12/12

13/3

13/6

13/9

13/12

Amount of processed payments(The number of operating stores is calculated at the end of the quarter, the amount/number of processed payments are the results for each quarter)

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

15

3. Present status/ Future growth strategy

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

16

3.1 Potential of the EC market
Compared with major countries, the EC ratio in Japan is very low
Broad sense EC market？Trillion yen

EC ratecomparison

Country

USA（2013）

5.7％ *

UK（2013）

10.4％

China

（2012）

6.2％ **

Taiwan（2012）

7.5％

Japan

（2012）

3.1％*Adjusted, preliminary estimate.

**EC ratio of BtoC and CtoC

Narrow sense EC market

9.5 Trillion yen（2012）※References：METI, [Market report in regard to EC 2013] , American Bureau of the Census「QUARTERLY RETAIL E-COMMERCE SALES 3rd Quarter 2013」
Office for National Statistics ｢RSI Tables December 2013」、iresearch, estimated by GMO-PG.

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

17

3.2 Forecasts and strategy
GMO-PG aims to expand its share in growing EC markets and achievesustainable, high growth

EC market scale

2014

Around 2020

Growth potential¥10 Trillion

Around ¥25 Trillion

2.5times[1] Acquire large-scale merchants[2] Increase ARPU by cross-selling, creating new business model[3] Gain over 50% market share and develop new business models in new EC markets[4] Pioneer the overlapping domains between face-to-face and non-face-to-face payment

Market share(GMO-PG Group)

13％

Amount of processed
payments(GMO-PG Group)¥1.3 Trillion

Ordinary income of
GMO-PG¥2.5 billion（Forecast: FY2014）20％¥5 Trillion

×
1.5times[5] New service creationin payment-related Fields+α＝ More than
4timesAround ¥10 billion（Forecast: 2014）※References：METI, [Market report in regard to EC 2013] , NRI[IT market navigator 2014], estimated by GMO-PG.

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

18

3.3 Strategy by merchant segment
Create a new business and rebuild the business model according to thescale of the merchant

Large-sized

Payment processing
businessenterprises

Payment processing+αMedium-sized companies

Acquire large-scale merchantsand develop strong relationships
with them[1]

Contribute to merchant growth[2]＜services we are providing now＞
• Early payment service• Online Advertising Service• Option services of GMO Epsilon（mail for notifying settlement approval, chargeback
guarantee, etc.）

Planning new services, expanding the services
we currently provide, providing new services
with regard to transaction data analysis
Small businesses(Long-tale)

Payment processing+αCultivate new EC market(small-BtoC, CtoC, etc.)[3]• Promoting links with a social networking service
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

3.4 The next driving force of the EC market
Strategic moves for a new/growing fields in the EC market• 2014: Large enterprises expanded their EC business,
After 2015: Expand the “Micro-commerce” (Small-BtoC,
CtoC) market“Micro-commerce”[3](Small-BtoC, CtoC)• 2014 will be the first year of credit card payment in the
BtoB-EC market[1]Large-sizedenterprises

Medium-sized companies
Small businesses(Long-tale)

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

20

3.5 The rise of “Micro-commerce” (Small-BtoC, CtoC)
The strategy to capture the EC market which has been expanding to
the individual field
Speed/Easiness[3]

the service of selling
one’s knowledge/skills
at a lower priceFlea
markettype

Skillselling
type

InstantEC

the interpersonal transaction services
on a network like a flea market

the service to create
an online store
easilyServices

Goods
Crowd
-funding
type

the service to finance small businessfunds via the Internet

Crowd-sourcing
type

Industry-specific
typeindustry-specific flea market

the service of getting work by matching
the needs via the Internet

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

21

3.6 Business reinforcement of the service commerce field
In a narrow sense, new fields beyond the EC market are expanding
Non face-to-face field

Face-to-face field
Service commerce･Wi-Fi･Tuition fees
･Deposit for
rent
･JAF

Narrow sense EC
9.5trillion yen
Mail order（FY2012）(catalog, TV)･Donation･Pay webservices

290 trillion yen market
Public money/
Public utility charges

Contents

The market is flattening out
but the credit card payment
rate is forecasted to increase

Of which, a 49 trillion yen
share is attributed to thecredit card payment
market

O2O

CtoC

[4]

The market is forecasted toboom to a 50 trillion market by
2017･Rental car reservation･Skill/Education related･Lunch box reservation, delivery･Beauty salon reservation

Showrooming・Omni-channel*Reference: Nomura Research Institute Inc. [IT market navigator 2013], Ministry of Economy, Trade and Industry [Market report concerning e-commerce 2013], GMO-PG forecast

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

22

3.7 Expansion of O2O(Online to Offline) EC areas
Expansion of the EC area through the realization of a fusion between
the online and “real” market[4]

Cooperation between the
online and “real” shop

・Stock levels check can bemade available on the web
・Order via the Internet andpick up the items in “real”
shop

The utilization oflocation information

・A coupon/information delivery
service for the user who visitedparticular shop/event by
utilizing location information
・Recognize the location andoffered services（EX）• Bookstore: Stock levels check via Internet & Order → Pick up the items in “real” shop

• Apparel shops: Stock level checks via Internet & Purchase → Pick up the items in “real” shop

• Photo print shop

: Order via Internet & Payment → Pick up the items in “real” shop

• Taxi allocation service : Allocate a taxi via Internet → Take a taxi & Payment
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

3.8 The synergy
The improvement of ARPU
[5]
Value-added
services

Customer
attraction

Advertising
Facebook

Number of processed payments increased

Smartphone
Payment related

SSL
Delivery
Early payment

Different fromcredit cardEX) Apparel shop

+130％(Average)

BeforeNov Dec Jan Feb Mar Apr May Jun

Jul Aug Sep Oct

After

Payment later
Net banking

Carrier settlement
Wallet etc.

Payment
processing
services

Cash on delivery
Bank※Advertising service start from Nov, 2012

Electronic money
Convenience store
Credit card

Number of operating stores

46,108

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

24

3.9 Overseas development strategy according to country
Through two strategic service entities,
Capital and business alliance could be promoted
Approx. $15 million
USD fund③GMO-PG Global
Payment Launches
Operation①Receives
Contribution
from Credit
Saison (Dec 20)

Our Japanese merchant

GMO-PG Global Payment
Fund ownersupporting

supporting

Business partner(Payment service venture)

Minority investment・
synergy

Minority investment・
synergy

Invested company(payment service venture)*②Dec 2013
Invested $1,000,000 USD in Coda Payments PTE LTD

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

25

3.10 The progress of new business
GMO-PG group’s new business and the status of profits■Online Advertising
Sales
Service（GMO-PG）■SAPS

Started in October,2011

Ordinary income

11/6

11/9

11/12

12/3

12/6

12/9

12/12

13/3

13/6

13/9

13/12

11/9

11/12

12/3

12/6

12/9

12/12

13/3

13/6

13/9

13/12

11/3

10/12

10/9

10/6

11/6

13/9

13/12

13/6

13/3

12/9

12/12

12/6

12/3

11/9

11/12

11/6

11/3

10/12

10/6

10/93

10/3

10/3

Established in March,2010■COC

Started in May,2013

13/5

13/6

13/7

13/8

11/3

10/12

Joined as an
Equity method ap
plication
concerned compa
ny inJanuary,2010

10/9

Ordinary income
10/3

Amount of processed payments

10/6■GMO-PS

13/9 13/10 13/11 13/12

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

26

4. Results forecast for the term ending
September 2014

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

27

4.1 Summary of the consolidated results (Forecast)Investment continues though the Ordinary profit growth rate
returns to 20%（1,000yen）

6,934,000

7,000,000

34.3%

6,000,000

36.4%

33.2%

32.8%

35.5%

37.5%

37.0%

36.5%

40%

35.5%
5,764,085¥28.505,000,000

30%

4,708,097¥24.5024.0%

4,000,000

3,866,316

22.7%¥19.5020%

3,145,901
3,000,000¥15.502,460,000

2,546,550
2,207,071

1,629,951

0645,909535,350
304,302

2006/9Sales

1,764,325

10%
1,421,000

1,431,391

¥7.50
¥6.25

192,400
295,828150,092
30,173
2004/92005/9listed on
the TSE¥10.50¥8.75

1,305,157
801,778

2,047,552¥11.75

1,945,011

2,000,000

1,000,000

By continuing theprior investment andthe sales mix(Sale of valueadded services withahigh cost price rate),
the sales amount forthe ordinary profit
rate is expected tomove sideways.

1,147,552
756,506

377,212 440,080

927,535

524,259585,206

960,761

1,217,025

Sales+20.3％

763,774

Ordinary income+20.1％
0%

2007/92008/9Ordinary income

2009/92010/9Net income

2011/92012/92013/9Ordinary income ratio

Net income+16.8％

2014/9E

Dividend

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

28

4.2 Sales for each segment (Forecast)
Planning for merchant acquiring service revenue to be +25% andTransaction processing revenue to be +23％
（1,000yen）

7,000,000※％y-o-y6,000,000+ 25％
5,000,000+ 27.6％4,000,000+ 28.4％+ 36.4％+ 23％

3,000,000+ 40.3％+ 17.3％+25.9％
2,000,000+88.4％+155.5％1,000,000

0+45.4％

listed on
the TSE+44.4％+14.2％+41.4％ +15.4％+6.4％+166.1％ -22.2％ +6.6％+4.1％+ 16.6％

+1.9％

+9.9％

In accordance with the
Economic recovery, we
forecast an increase in thetransactions of large-scale
merchants and an
Enlargement sale for
GMO-PS.

+ 14.8％+46.9％+95.0％

Because of an expansionof the ECmarket, we
forecast that merchantacquiring service revenue
is going stay in good
shape.

+ 18.1％+ 13％+ 24.6％+15.6％ + 19.4％+ 22.4％+ 21.8％+24.6％ +10.6％ + 11.5％ + 7.1％ + 20.0％ + 12.6％
2011/92005/92006/92007/92008/92009/92010/9Merchant acquiring service revenue

38,364

98,011

191,126

360,138

529,138

666,209934,441 1,274,419 1,636,774 2,089,254 2,602,029

Transaction processing revenue

327,409

476,041

687,235

784,799

816,868

897,658 1,060,123 1,235,737 1,418,822 1,663,741 2,048,178

Monthly revenue

344,083

486,490561,253

597,193608,236

702,946

839,522 1,022,263 1,251,675 1,559,914 1,763,734

Initial revenue

91,920244,613

190,336

202,880

252,828

279,735

311,813400,823

2013/9+ 15％

2004/9333,895

2012/9451,175

Settlement representation
services and the Online
Advertising Service arecontinuing to grow thoughconservative planning.

2014/9E

Cross cell andOrder of largescale development items.

520,762

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

29

4.3 Cost rate of sales/ Rate of SG&A expenses (Forecast)
Sales amount cost price rate will undergo sideways movement,
and the rate of selling for general and administrative expenses will decrease（1,000yen）
6,934,000

7,000,000

6,000,000

52.0%

50.8%

50.6%

49.0%

47.7%

5,764,085
47.7%

49.0%

48.1%

44.7%

5,000,000

60%

46.6%
4,708,097

4,000,000

40%

Rate of selling for generaland administrative
expenses• Employment of highly
talented personnel• Continuing the efforts to
reduce cost.

3,866,316
30.5%
3,145,901

3,000,000
24.0%

2,207,071
17.1%
16.4%
1,945,011
17.1%
1,629,951

2,000,000

2,245,771

1,247,407
827,385

801,778
416,874

984,589

397,698

192,223

279,287

318,497

1,513,031

1,053,821

584,130
376,997372,853

1,894,257

14.7%

14.6%

1,305,157
1,000,000

2,684,406

2,546,550

463,175

17.9%

20%

15.0%

13.7%

1,030,813
708,566

530,843

0

Cost of sales• Continuation for priorinvestment• Enforce sales of Online
Advertising Service• Increase agency fees
• The cost of Data center
parallel operation willremain the same.

0%
2004/92005/9listed on
the TSE

2006/9Sales

2007/92008/9

Sales-cost

2009/9SG&A

2010/92011/92012/9

Sales-cost ratio

2013/92014/9E

Sales-SG&A ratio

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

30

Thank you very much!

GMO Payment Gateway Inc.
(TSE:3769)
URL http://corp.gmo-pg.com/

For more information, please contact the Company Value Creation Planning Office
IR/PR Group TEL:03-3464-0182