Financial Results Briefing for Q2 FY2024
Tackle urgent issues and strengthen profit generation by building up
projects in the new domains

May 13, 2024
77th Investor MeetingSafe Harbor Statement for Forward Looking Statements
The contents of this document is based on generally recognizedeconomic and social conditions, as well as certain assumptions judged
to reasonable by GMO Payment Gateway as of May 13, 2024.
Please note that the contents are subject to change without prior noticein the event of changes in the business environment, etc.
Abbreviations used in this documents are as follows:
GMO-PG
GMO-EP
GMO-MR
GMO-PS
GMO-FG
GMO-CAS
Merchandise EC
Non-merchandise EC
PF
CP
MSB
BaaS

: GMO Payment Gateway: GMO Epsilon: GMO Medical Reservation Technology: GMO Payment Service: GMO Financial Gate
: GMO Card System: Apparel, food/beverage, cosmetic/health food, delivery/newspaper,
daily goods/office supplies and C2C, etc.
: Digital content/telecommunication, utility, travel/ticket, insurance,
membership fees/services, etc.
: Platform: Stands for Card Present transaction and refers to payments made at bricks-and-mortar storesby physically presenting a credit card or other non-cash devices.
: Money Service Business: Banking as a Service

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

2

Agenda1. Summary of Financial Results for Q2 FY2024

2. Growth Strategy and Initiatives in Focus Areas
3. Sustainability
4. Financial Highlights and Reference Materials

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

3

1. Summary of Financial Results for Q2 FY2024

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

4

1.1 Summary of consolidated results

Both revenue and OP outperformed 1H plans（¥ mil）

1H FY2023

1H FY2024% YoY

1H FY2024
Guidance(Progress ratio)

Revenue

30,45436,099+18.5%

35,341(102.1%)Gross Profit

19,60923,267+18.7%－

Operating Profit

10,35012,652+22.2%

Pre-tax Profit

9,856

13,118+33.1%

Profit

6,129

8,328

+35.9%

11,50914,226+23.6%

Attributable to owners of parent

EBITDA*1

Operating Stores*2*3
Operating terminals*2
End-Q2 F2024

KPI (% YoY)

153,336 stores (+9.0%)
344,564 units (+47.3%)

12,470(101.5%)
11,970(109.6%)
7,495(111.1%)－Q2 FY2024(% YoY)18,313(+17.1%)
11,720(+19.4%)
6,822(+29.7%)
7,198(+39.3%)4,880(+32.6%)
7,632(+30.4%)

Consol. TRX Volume(Q2 FY2024)*2*4

Consol. TRX Value
Q2 FY2024*2

Approx. 1.77 billion(+19.8%)

Approx. ¥4.6 trillion(+25.8%)o.w., online approx. 1.55 bn (+14.9%) o.w., online approx. ¥3.0 trn (+13.4%)

Refer to slide 4.8.2*1 Sum total of operating profit and depreciation.
*2 The figure for operating stores is for GMO-PG and GMO-EP, and the figures for operating terminals are for GMO-FG. Consolidated TRX volume and value figures are the sum totals for GMO-PG, GMO-EP, GMO-PS and GMO-FG. The online
payment figures are the sum totals for GMO-PG, GMO-EP and GMO-PS.
*3 The standards for recognition of the number of operating stores has been revised from Q4 FY2023. Figures exclude a specific case and fincode byGMO. If included, the number of operating stores for the same period would be 634,831 stores, up
17.8% YoY.
*4 TRX volume is calculated based on fee revenue standards, which in the case of online consists of multiple (1 to 3) transactions per payment including authorization (tentative sales proceeds) and actual sales proceeds. CP transaction volume isbased on one transaction per payment.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

1.2.1 Waterfall chart of consol. revenue (cumulative)
CP Payment continues to be solid, Payment After Delivery andoverseas business outperformed plans to contribute to revenue（% YoY）（¥ bn）

GMO-FG
Consol.*1*2

GMO-PG*3

Cumu. 2Q Plan
Cumu. 2Q Actual+26.7%+27.2%+14.5%+14.3%

Overseas
GMO-PS*3 GMO-EP
Consol.*1*3 Business*3+16.4%+19.8%

+6.1%
+9.3%

+41.1%+95.8%

Consol.

+16.0%+18.5%¥36.0 bn
Other

35

Payment After Delivery
Start of large-size project
MSB +7.7%

33

BaaS Support +30.3%

31¥30.4 bn

29

0Merchandise EC +11.4%
Non-merchandise EC +14.4%
Utility (+30.3%)
Growth hiatus due to large-size projects
Recurring-model revenue*4 +48.9%
Operating terminals and expanding inbound demand
Initial +18.2%
Progress on track

Cumu. 2Q
FY2023Cumu. 2Q
FY2024*1 GMO-FG consolidated is comprised of GMO-FG, GMO-CAS. GMO-EP consolidated is comprised of GMO-EP, GMO-MR.
*2 Figures present consolidated financial results of GMO-FG. *3 Figures of each company are before the eliminations from consolidating into GMO-PG.
*4 Recurring-model revenue consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

1.2.2 Waterfall chart for consol. OP and pre-tax profit (cumulative)
OP grew 29.7% in 2Q and 22.2% in 1H; decline of one-off expense
booked in the previous term and decline in credit costs
OP Waterfall Chart% YoY:

Pre-tax Profit Waterfall Chart（¥ mil）

1H +22.2%
2Q +29.7%
GP
increase+3,658

SGA
Other
Other
increaserevenue expense-1,414increase decrease+28+28% YoY:

Financial Equity
Financial expense method profit
incomeOPdecrease increase+148 13,118
increase increase
+687
+123
+2,302

12,652（profit impact）

10,3509,856・Personnel cost increase-1,730 mil
・Outsourcing expense
increase-198 mil・Prov. for doubtful accounts
decrease+113 mil・Decrease in one time costin 2Q FY2023+749 mil（profit impact）

・FX loss decrease +526 mil
・Increase in appraisal loss on
inv. Securities-20 mil・Decrease in losses on inv.
Partnerships+199 mil（profit impact）（profit impact）

・CoS ratio decline+23 mil・Revenue increase +3,634 mil
23/累2Q
Cumu.
2Q
営業利益
FY2023OP（¥ mil）

1H +33.1%
2Q +39.3%

粗利（増減）

販管費（増減）その他の収益（増減）その他の費用（増減）24/累2Q2Q
Cumu.
営業利益
FY2024OP

Cumu. 2Q FY2023
Pre-tax Profit

・Increase in interest income+145 mil・Increase in appraisal gains
on inv. Securities-23 milCumu. 2Q FY2024
Pre-tax Profit* The “+” and “-” sign denote the direction of the impact to operating profit and pretax profit.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

7

1.3.1 GMO-PG non-consolidated performance
Bottoming out of online payment growth rates; revenue up 15.6%
GMO-PG non-consolidated revenue & OP *1（¥ mil）

Merchandise EC revenue

百万

Non-merchandise EC revenue
10,000BaaS Support revenue
MSB revenue

9,000

% YoY

Revenue
2-yr
CAGR

Q2 FY2023 Q1 FY2024 Q2 FY2024
Revenue*1+20.1%
Online payment+19.7%
Merchandise EC+11.1%
Apparel+2.5%
Food/beverage+23.2%
Cosmetic, Health food +3.9%
Other+13.1%
Non-merchandise EC +24.9%
Digital content/telecom +15.1%
Utility+30.1%
Travel/ticket+57.8%
Other+27.0%+17.6%

Other revenue
OP

8,000

7,000

6,000

5,000

4,000

+13.1%+13.0%+10.9%+2.4%+15.3%+7.1%+13.6%+14.3%+12.4%+33.9%+13.8%+11.5%+15.6%+13.5%+11.8%+7.8%+13.6%+10.2%+13.1%+14.4%+8.8%+27.3%+23.9%+13.6%+10.4%+27.2%+33.6%

MSB+21.2%
Remittance service+20.3%
Early Payment service +18.3%
Overseas lending (parent)*3 -8.8%
Instant Salary byGMO*4 +166.3%
Other+65.3%+6.1%+6.3%+17.5%-20.6%+35.5%-10.7%+9.0%+9.8%+20.4%-24.5%+57.0%-11.9%BaaS Support*2

3,000

2,000

1,000

0
22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

*1 Figures for revenue and operating profit are before consolidated eliminations. *2 Figures for BaaS Support present the sum total of Ginko Pay and Processing PF.
*3 Figures show the overseas lending revenues recorded at GMO-PG non-consolidated and do not include revenues occurring at USA, India and Singapore corporates.
Consolidated overseas lending revenue was +46.4% YoY for Q2 FY2024, +25.8% YoY for Q2 FY2023 (calculated by excluding a one-time revenue booked in Q2 FY2022, if included the growth rate would be +25.5% YoY).
*4 The revenue figures for some of the scheme is presented on a gross basis and not on a net basis. The % YoY figures are calculated excluding this impact.

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

8

1.3.2 Performance of GMO-EP, GMO-PS and GMO-FG

All 3 companies outperformed plans thanks to revenueexpanding initiatives
Consol. GMO-EP*1*2(% YoY）

+0.3%
-0.4%

Revenue (left axis)

Operating stores (right axis)*4

+9.1%
-0.1%

Consol. GMO-FG*1*3
Q2 FY2023 Q2 FY2024

Q2 FY2023 Q2 FY2024

RevenueOP（¥ mil）

GMO-PS*2

RevenueOP（stores） （¥ mil）

Q2 FY2023 Q2 FY2024+20.5% +19.5%-50.5% +285.8%
Revenue (left axis)

RevenueOP（stores）（¥ mil）+71.8%+119.6%+18.8%+23.8%

Revenue (left axis)

5,000
60,0003,000

Operating stores (right axis)（units）
400,000

Operating terminals (right axis)

2,500

1,500
2,500

40,000

2,000

4,000

300,000

2,000

1,000

1,500

3,000
200,000

1,500
1,000 2,000
500

20,0001,000
100,000500

00Capturing the medical sector’s DX needs
results in MR growing by 66.6%
Change of revenue model and otherinitiatives at EP non-consol. proceeding on
track resulting in growth of 3.9%

0

500

0

Revenue growth from start of operation at alarge merchantProfitability improved from credit cost
controls

1,000

0

0

Terminal sales progressing on track
Recurring-model revenue up*5 46.9%*1 GMO-EP consol. includes GMO-EP and GMO-MR. GMO-FG consol. includes GMO-FG, GMO-CAS and GMO Data. *2 Figures are before GMO-PG consolidated eliminations.
*3 Figures are taken from GMO-FG’s consolidated financial results. *4 Figures count platform-type stores as one for fincode byGMO.
*5 Recurring-model revenue is the sum total of stock, fee and spread and excludes initial which mostly consists of terminal sales). consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

1.4 Trend of revenue growth rates and full-year revenue guidanceConsol. guidance likely achievable but issue of risks in the SME domain
Trend of revenue growth rates and probability of achieving full-year revenue guidance by company
70.0%

GMO-PG

Changesover the past 1-yr

Consol. GMO-EP
GMO-PS (excl. commission rate change)
60.0%

Consol. GMO-FG recurring-model revenue

51.9%
49.4%

51.0%
46.9%

50.0%

40.0%

Consol. GMO-FG High growthrecurring-model continues
revenue*

Likely to achieve

Consol. GMO-FG In line
initial revenue

Likely to achieve

GMO-PS

Returns togrowthLikely to achieve

GMO-PG
non-consol.

Bottom out

New pipeline projects
are in line
Risk of decelerationin SME domain

30.0%

20.0%
20.0%

FY2024 guidance

17.2%
14.1%

14.2%

13.1%

19.5%
15.6%

9.9%
10.0%

5.9%

7.8%

9.4%

9.1%

24/1Q

24/2Q

Consol. GMO-EP On recovery
path

Likely to achieve

0.0%
23/3Q

23/4Q

* Recurring-model revenue consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

2. Growth Strategy and Initiatives in Focus Areas

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

11

2.1 Strategy and assumptions to achieve OP CAGR 25%

Accelerate strategy that was revised ahead of the businessenvironment’s changes since 2020
Trend of revenue by service（¥ mil）
60,000

2020

Payment processing (online)
Domestic MSB
Payment after Delivery
CP Payment
Overseas MSB
Payment Enhancement

50,00040,0002018
Commence
overseas MSB
GMO-MR
joins group30,0002013
Established
GMO-PS(Payment after
Delivery)

20,0002008
Commenced
domestic MSB

10,000

Paymentrelated

2016
GMO-FG
becomesa consolidated
subsidiary

Payment
processing(online)

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

～2020

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2020～
Accelerate strategy based on customer segment after reorganizing sales toalign with changes taking place

Components of
the OP 25% growth
Strategy

EC*

Payment-relatedEC*

Payment-related

20％

5％

~10％

25%~

・Multipayment
・Financial/
・Non-merchandise Payment after
Delivery・CP Payment
・Global

Revenue growth target +15%

Revenue growth target +35%

・Productivity and strengthen CP sales

・Relationship model・Expand multi-payment service

・Provide “payment +α” rebundling・Expand line-up of value-added services

service to respond to industry-

・Partner collaboration

specific issues* EC：payment processing (online)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

122.2 Growth drivers of GMO-PG’s revenue

Pursue 25% revenue growth by stacking up projects in new
domains on the foundation of existing business
Revenue growth image of GMO-PG non-consol.
Pursue growth by capturing new large-sized projects that
respond to complex issues and needs
Potential scale

25% revenue growth■ Payment-related■ Payment processing (online)of business

Focus areas
Pursue highgrowthAdoption with the public sector/utility ofexisting payment models

Online/CP payment collaborative model
B2B CF reforms through collaboration withfinancial institutions

New business for inter-corporate payments
Expand cooperation with global players

Promote regional revitalization and regional DX

Existing
business

Secure stable
growthUpgrades of processing service

Secure growth by focusing on growth areas throughproductivity improvements
Merchant size*

・Focused support by CP sales force
・Collaboration with partners addressing new
domains

L
M

S
2024

2025

2026

2027

2028

Initiatives

・Strengthen functionality of Multi-Payment
service・Strengthen support through inside sales* L refers to GMV of ¥3.0 bn and above; M refers to GMV of ¥0.5 bn and above; S refers to GMV of up to ¥0.5 bn
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

2.3.1 Strengthen generation of consolidated profits

Strengthen generation of consolidated profit by improving
payment-related services
OP trend by service in Q2*1 and profitability improving initiatives（¥ mil）
10,000

Payment Processing (online)

OP margin*2

Domestic MSB
9,000

Consol OP
CAGR 25%

Payment after Delivery
CP Payment

8,000

Payment-related

25.0%

Overseas MSB

Payment Enhancement

Payment Enhancement

・Drive partner strategy to scale-up given that
GMO-MR is in a positive-profit phase

Payment-related
5-yr CAGR 27.4%

7,000

Overseas MSB

56.6%

・Build up pipeline/strengthen credit control
systems

6,000

5,000

CP payments*3

9.2%

・Expand high-margin recurring revenues

Payment
processing (online)
5-yr CAGR 23.0%

4,000

3,000

Payment after Delivery

16.3%

・Acquire large merchants and improvecredit screening accuracy

2,000

Payment processing (online)
1,000

0
19/2Q

20/2Q

21/2Q

22/2Q

23/2Q

24/2Q

*1 Figures are before consolidated eliminations. *2 Figures show values for Q2 FY2024.

68.3%

・Stable profit generation due to high GP margin・Pursue scaling-up of profit through topline
growth*3 Figures for OP margin for CP payments are based on consolidated GMO-FG’S financial results
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

14

2.3.2 Profitability improvement of payment processing (online)

Strengthen profit generation by leveraging scale benefit ofrevenue growth
Trend of Payment processing (online) OP margin (Quarterly)（¥ mil）

Revenue
10,000100.0%

OP
OP margin

9,000

90.0%

OP margin 1-yr trailing average

Source of fund
8,000

80.0%

64.2%

7,000

59.1%
6,000

57.8%

59.6%

generation for

new businesses
70.0%

60.1%
60.0%

5,000

50.0%

4,000

40.0%

3,000

30.0%

2,000

20.0%

1,000

10.0%

0

0.0%
19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q 24/1Q 24/2Q

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

15

2.4.1 GMO-PG non-consol.: Broader EC

Completed building up pipeline to achieve full year guidance
GMO-PG non-consol. revenue and targets (1H/2H)

Examples of new projects contributing to revenues in 2H（¥ mil）

Utility% YoY+21.5%

ActualTargetLocal government DX support

Entertainment

Large-scale leisure facility
Collaboration with FinTech
Fan club

Digital content

Multiple sports streaming apps

Travel/Ticket

Travel TechBusiness hotel chain

Insurance

Domestic insurance company

Real estate

Rent guarantee (Co. I)

Pipeline+14.3%(provided estimate)

20,000Delta¥1.67 bn
Incremental increase¥1.82 bn

Deceleration
risk in SME
domain

GMP

Overseas FinTech provider (Co. I)
Cross-border EC

RetailDrugstore (QR code payment)
Apparel (QR code issuing system)

B2B

BPSP

15,000Progress of initiatives (Additions since Q1 FY2024)
FY2023
Co.B Co.C① Co.D①

FY2024
Co.E

Utility
Co.H

GMP
Co.A Co.B Co.C

10,000
22/1H

22/2H

23/1H

23/2H

24/1H

24/2H
TargetReal Estate

Co.D

Co.C②

FY2025
Co.F Co.C③

Co.D②
Co.I Co.A

Co.D Co.E Co.H
Co.G Co.I

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

16

2.4.2 RetailTech×FinTech

Expanding RetailTech services that resolve issues at storesand service facilities
Solutions provided to retail business operators (incl. collaboration with RetailTech merchants) and customer use-case
GCP*1 revenue
Major issues for store operations
Labor shortage
Increase of store operation costs
Diversifying consumption behavior% YoY

Multi QR code
payment
Drugstore

Self checkout

Self-orderMulti-payment
terminals

Parking, fitness gym

Delivery ＆Takeout

RetailTech

Restaurant chain

Retail/Services

FinTech

EC channel

Parking, hotel

BNPL

Café, fast food

Retail/Services

OMO

23/3Q

23/4Q

24/1Q

24/2Q

Unattended terminals(units)+25.8%

Unattended
payment machine

Mobile order

×

23/2Q

Supermarket

Restaurant chain
Reservation
management SaaS

+46.4%

23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

Instant Salary byGMO
revenue*2

Salaryprepayment+57.0%
23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

*1 GMO Cashless Platform *2 The revenue recognition for some of the scheme has been changed to gross method from net method from Q1 FY2024.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

17

2.4.3 Succession of acquiring function

Expected to take over the acquiring function of GMO Aozora
Net Bank
Current(up to June 30, 2024)

Post effective date(July 1, 2024 onwards)

International brand（VISA/Mastercard）

International brand（VISA/Mastercard）

Acquire license

GMO Aozora Net Bank, Ltd.

Acquiring function(merchant management)
Acquiring system(provided by company)

Acquiring function(merchant management)

Payment processing

Payment processing

Merchant

Merchant* The company split is subject to acquisition of the necessary permits and approvals from the relevant authorities, as well as necessary conclusion of contracts for operation of the business. Please refer to the press
release titled “Notice Regarding Succession of Rights and Obligations Due to Company Split (Simplified Adsorption-type Company Split)” released on March 28, 2024.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

2.4.4 GMO-PG non-consol.: BaaS support and EF*1

Large-size project contributes to high growth; successive
launch of projects expected from 2H onwards
Revenue of BaaS Support service*2（Q2）■ Ginko Pay Base system■ Issuing support (Processing PF)■ Acquiring support (Processing PF)

Progress of Processing PF projects% YoY

Start of revenue contribution is brought forward (orscheduled to be) for several projects
Continuing to work on expanding stock revenue
Revenue size
(image, in 3-steps)

Total

FY2024+33.6%
Ginko Pay

-22.0%

1H

Co. B

Due to change in monthly
revenue recognition caused

Co. C

2H

FY2025~

Launched in Oct. 2023

Launched in Jan~Jun 2024

by contract extension atlarge merchant

Co. D

Processing PF

Co. E

Launched in Feb. 2024
(brought forward from Q3 to Q2)

Launched in Sep. 2023
NEW Launch in Jan. 2024

+61.5%

Launch in Apr. 2024
(brought forward from Q4 to Q3)

Co. F
Co. G
17/2Q 18/2Q 19/2Q 20/2Q 21/2Q 22/2Q 23/2Q 24/2Q*1 EF stands for Embedded Finance.

NEW To be launched in Sep. 2024

Co. H

*2 Includes revenues for Ginko Pay and Processing PF received from business operators as well as financial institutions.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

2.5 Consol. GMO-EP: Broader EC (SME domain)

Progressing with initiatives to change revenue model andexpand into new business domains
Consol. GMO-EP revenue (quarterly trend)

Progress of initiatives（¥ mil）

GMO-EP・Change of revenue model
Progress on track to convert rate structure ofexisting merchants
Q2 (6-month) progress ratio: 110.8%
・Make inroads into non-merchandise domain
Payment services to start-ups
Acquiring platformers in each industry

% YoY

+9.1％
1,500

Pipeline of fincode byGMO
FY20231,000

FY2024
Co. A

RetailCo. B

Co. C Co. D Co. F② Co. G

Service

Co. F①
Co. E
Co. A

Accomodation/Beverage

Co. A

Medical/Welfare

500

Co.A

Co.B Co. C

Digital content

GMO-MR(Estimated
系列 1image)0
22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q 24/1Q 24/2Q

・Partner strategy
Maintaining high growth thanks to favorable
trend of delivery of orders
Cumulative Q2 revenue: Up 66.6% YoY
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

2.6 GMO-PS：FinTech

Continued growth from building up new projects while
improving profitability
GMO-PS: Revenue and OP (Q2)（¥ mil）

Revenue trend by new and existing merchant■ New merchants (start of operation from Q3 FY2023～Q2 FY2024)

Other revenue (left axis)

3,000

Revenue from existing domain (left axis)

% YoY

600

■ Existing merchants (start of operation by Q2 FY2023)+19.5%OP (right axis)

Several growth-oriented
merchants in focus areas
expected to start operations

Other
2,500

500
+666.7%

OP

Areas of strength+285.8%2,000・Improved
credit cost・Apparel (incl. overseas): Start in Q2
・Cosmetic/Health:
Expected start in Q3/Q4400

New growth areas
・Medical services, etc.:
Expected start in Q3
・Pay on Credit:
Marketing to major companies
・Atokara: Marketing to several merchants
Maintain cautious operations

300

1,500

Existing domain+12.0%
200

1,000

Trend of default rates
Continued improvement
in default rates

100

500

0

0
Q2 FY2023

Q2 FY2024

・In-housing of credit screening
・Raising credit screening
accuracy・Strengthen predictive
management
・Strengthen credit collection
operations
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

2.7 GMO-FG: CP payment

Further expansion of recurring-model revenue and building up
pipeline of large customers
Consol. GMO-FG revenue by business model*1(quarterly) Expanding pipeline of large customers（¥ mil）（’000 units） Difficulty Size of circle: size of profit contribution (image)
Shade of circle: visibility of pipeline
High

% YoY

400

Initial+8.2%
Recurring-model*2 +46.9%+52.1%
Stock+56.1%
Fee+22.9%
Spread3,000

Commercial
facility D

High

4,000

NEW
Householdgoods store A
Commercial
facility A

300

258

NEW
Book
store

Commercial
facility C

Commercial
facility B
Household goods
store B

Restaurant A
Restaurant B

Supermarket
Media
shop

Restaurant C

Apparel A
FY2024FY2026～FY2025200

2,000Service adoption in the public transportation sector
Implemented by major private 100 operators
railway operators in the Tokyo（27 prefectures）
metropolitan region(No. ofoperators)
100
100

1,000

NEW
Seibu railway
Co., Ltd.

80

Keio
Corporation

60

40

Tokyu
Corporation

0

0
22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

23/4Q

24/1Q

Left axis： ■ Initial ■ Stock ■ Fee ■ Spread
Right axis：
No. of operating terminals (manned)

24/2Q

Tokyo Metro
Co., Ltd.

20

0
20/07

20/11

21/03

21/07

21/11

22/03

22/07

22/11

23/03

23/07

23/11

24/03

*1 Based on financial results of consolidated GMO-FG.
*2 Recurring-model revenue consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

2.8.1 Global: earnings summary
Solid progress in new loans provided in Asia, revenue continues to grow 50%
primarily from North America
Revenue/OP（¥ mil）

Loan balance (end-Mar)
RevenueOP% YoY+49.9%（¥ mil）

Earnings highlight
High growth from building up
new and add-on loans in past
year following organizational
enhancements% YoY+25.3%

16,000US MSB+121.1%400

US+73.7%

14,000Asia
Remittance service to Big Tech
payment continues favorably
New loans executed (from Q2 FY2024)

12,000（Feb. 2024）

300

Singapore
Commercial rickshaw loan FinTech-100.0% ・Track vehicles using IoT

10,000Asia MSB+18.6%

200

8,000（Mar. 2024）
India
Motorbike loan FinTech+34.4% ・Quick UX using WhatsApp

6,000

OP
+56.1%（Apr. 2024）

4,000
100

Asia
payment+112.1%

023/単2Q
Q2 FY2023

Q224/単2Q
FY2024

BNPL・Cash loan FinTech
Indonesia
・Stable and profitable business operation-17.1%and management

2,000

0
End-Q2 FY2023

End-Q2 FY2024

・Promoting regional diversification ofborrowers and first-time borrowers givenhigh economic growth in the Philippines

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

23

2.8.2 Global: investment strategy
Investing in B2B FinTech by leveraging “Loan×Investment” synergy
Investments in the past one year
Total investment amount

Approx. ¥3.5 bn

NewJun. 2023

Oct. 2023

Jan. 2024

Apr. 2024

KYC Tech
KYC Tech market
TAM：¥0.2 trn*1

HR TechHR Tech market
TAM：¥0.3 trn*1

Payment FinTech
Bill Payment market
TAM：¥529 trn*2

Trade FinTech
Trade payment market
TAM：¥68 trn*3

Investment and loans provided to Drip Capital
2016/4
2019/42021/3
Group VC
Investment
PG

Loan

・Provide trade finance primarily for US-India trades
・Digitalization/automation using AI for credit screening
process on SMEs

2024/4Add-on loan

Pursue synergy

Investment
・Track business progress based on internal information ・Minority stake executed at the opportune time・Build credible relationship with management team・Acquired insight into technology-leveraging B2B payment*1 Based on GMO-PG estimates. *2 Based on PayNearMe estimates. *3 India’s total export value based as of 2022 as announced by Directorate General of Commercial Intelligence and Statistics (DGCI&S).
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

3. Sustainability

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

25

3.1 Sustainability: decarbonization initiatives

Achieved carbon neutrality, promoting initiatives to reduce
Scope 3 emissions
FY2022
3Q

FY2023

4Q

1Q

2Q

3Q

Done

Long-term
initiatives

1Q

2Q

3Q

PlannedNon-fossil certificate(for 2H FY2023)

Done
Done
① Achieved zero GHG① Achieved carbon neutral for Scope 1 & 2
emission of data centers② Third party certified (for FY2023)② Third party certified③ Compiled Scope 3 reduction target(for FY2022)

4Q

PlannedNon-fossil certificate(for 1H FY2024)

Non-fossil certificate(for 2H FY2024)

Planned① SBT（Science-Based Target）certified② Third party certified (for FY2024)

Initiated dialogue toward reducing Scope 3 emission with partner companies such as payment terminal
manufacturers and system development companies
Scope 3 (indirect emissions that occur in the value chain related to the activities of the reporting company) is comprised of
Category 1 (purchased goods and services), Category 2 (capital goods) and Category 11 (Use of sold products) and others.

Upstream

Coverage ofeach Scope
level

4Q

Done

Non-fossil certificate(for 1H FY2023)

Schedule

FY2024Company

Downstream

Scope 3

Scope 1

Scope 2

Scope 3

Procurement/Manufacturing/Distribution

Fuel combustion

Electricity usage

Use and Disposal

Procurement of
payment terminal

Not applicable

Offices, data centers

Procurement of registerrolled-paper

Use ofpayment
terminal

Systemdevelopment

Disposal of
payment
terminal* Non-fossil certificate are certificates for electricity generated from non-fossil power generation sources such as renewable energy including solar power, wind power, etc..
Company can indirectly reduce CO2 emission of its electricity consumption by purchasing non-fossil certificates.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

26

3.2 Sustainability: external accreditation

Received A- score in CDP Climate Change report
CDP Score (released in Feb. 2024)

ESG Indices

Previous（2022）

Current（2023）CA－

One notch below the 109 companies
with an A score; of a total of 1,984
companies in Japan

Received A- (leadership level) score for a company with bestpractices for environmental management by CDP, an

External accreditationinternational not-for-profit organization.

•

CDP is a not-for-profit charity that runs the global
disclosure system for investors, companies, cities, states
and regions to manage their environmental impacts.

•

Responding companies are assessed and scored acrossfour consecutive levels of disclosure, awareness,management and leadership and is ascribed a score from
A to D-.

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

27

4. Financial Highlights and Reference Materials

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

28

4.1.1 Consolidated balance sheet changes

Increase in merchant deposits and MSB related assets due toscaling up of business
AssetsLiabilities and Equity
Cashcorresponding todeposits received 334,497
from merchants
292,346(¥ mil)350,000

300,000(¥ mil)350,000

334,497292,346

300,000

273,407273,407
166,910250,000

250,000

91,071
85,562

133,658

113,967

122,779

200,000

200,000

34,78434,36435,252150,000

40,782

40,63959,603150,000

50,0000100,000

Prov. fordoubtful
86,965accounts-3,33912,870End-Q4 FY2022*1
Investment related

19,67823,000100,000

110,582

103,132

50,000-3,886-5,132

14,916

16,222End-Q4 FY2023

End-Q2 FY2024*2
MSB related

Other

Cash & Equivalent

19,806

19,76333,52529,35020,65322,992Equity*489,260 ratio
31.9%(46.4%)

94,80426,35097,251
31.6%(45.8%)

28.3%(44.7%)

0
End-Q4 FY2022

EquityEnd-Q4 FY2023*2
MSB related Borrowings

Bonds

End-Q2 FY2024

Other

*3
Merchant deposits*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 presents the equity attributable to owners of parent ratio and is calculated by dividing total assets with equity attributable to owners of parent.
The figures in the parentheses present the adjusted equity attributable to owners of parent ratio and is calculated by dividing total assets less deposits received with equity attributable to owners of parent.
*5 Some figures are shown in net amounts of financial assets and liabilities.

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

29

4.1.2 Major consolidated financial indicators (annual trend)Managing business while balancing profitability, capitalefficiency and capital baseIFRS

J-GAAP
Third party allotment
Raised ¥8.0bn

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

45%Euro Yen CB Due 2026
Raised ¥21.1 bn（¥ bn）
300

Euro Yen CB Due 2023
Fully converted

40%
250
35%

32.2%

30%

31.6%

200

25%
150
20%

ROE baseline
15%

100

15.0%
10%
50

7.3%

5%

0%

0
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Total assets

Return on assets using pretax profit (ROA)

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

Total equity attributable to owners of parent to total assets (equity ratio)

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

30

4.2 Consolidated revenue and operating profit (quarterly)
Consol. revenue

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

20,000

7,000

6,000

15,0005,000

4,000
10,000
3,000

2,000
5,000

1,000

0

FY2021
FY2022
FY2023
FY2024

1Q
9,767
11,857
14,813
17,785
FY2021

2Q
10,121
12,201
15,641
18,313
FY2022

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

4Q
11,132
13,341
16,11819,210

FY20240

FY2021
FY2022
FY2023
FY2024

1Q
3,122
4,116
5,090
5,830
FY2021

2Q
3,470
4,159
5,260
6,822
FY2022

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

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

FY2024* Consol. revenue and consolidated OP for Q3 to Q4 of FY2024 is based on initial guidance.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

31

4.3 Waterfall chart of consolidated revenue (Q2)
Consol. Revenue grew 17.1% from continued growth of CP,
Payment After Delivery and overseas business（% YoY）（¥ bn）

Q2 Actual

Consol.
GMO-FG*1*2

GMO-PG*3

GMO-PS*3 Consol.
Overseas*1*3
GMO-EP
companies*3

Consol.

+18.8%+15.6%+19.5%+17.1%+9.1%+90.9%¥18.3bn
Other

18

Payment After Delivery
Start of large-sized project
BaaS Support +33.6%
MSB +9.0%

17

16¥15.6 bn

15

Merchandise EC +11.8%
Non-merchandise EC +14.4%
Utility (+27.3%)
Growth hiatus due to large-size projects
Recurring-model*4 +46.9%
Operating terminals and expanding inbound demand
Initial +8.2%
Progress on track

0
Q2 FY2023

Q2 FY2024*1 GMO-FG consolidated is comprised of GMO-FG, GMO-CAS. GMO-EP consolidated is comprised of GMO-EP, GMO-MR.
*2 Figures present consolidated financial results of GMO-FG. *3 Figures of each company are before the eliminations from consolidating into GMO-PG.
*4 Recurring-model revenue consists of stock, fee and spread revenue and excludes initial revenue that mainly consists of payment terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

32

4.4.1 Revenue by business model (cumulative)
Initial, stock and fee each grew over 20%, spread on a recovery trend
Factors*% YoY
Cumu. Q2
FY2023Cumu. Q2
FY2024

Spread+13.3%+14.9%＋ Overseas lending＋ CP payment－ Online payment (GMO-PG)－ Payment after Delivery－ Online payment (GMO-EP)

Fee+33.3%+20.9%＋ CP payment＋ Payment after Delivery－ Online payment (GMO-PG)－ Remittance service(¥ mil)36,09930,45430,00013,87812,08320,00010,360Excluding impact ofcommission rate changes +25.5%

ー

8,568
10,000Stock+19.2%+21.2%＋ BaaS Support＋ CP payment＋ Medical Innovation byGMO

Initial+66.8%+20.9%＋ GMO-PG projects－ CP payment (GMO-FG)※ In line with plans

5,484
4,526
6,376

5,275
0
Cumu. Q2 FY2023

InitialStock

Cumu. Q2 FY2024

Fee

Spread* The “+” signs indicate services with growth rates that are higher than 18.5%; the “-” indicates growth rates that are lower.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

33

4.4.2 Consolidated revenue by business model (quarterly)（¥ mil）
6,988

6,889

7,000

6,265
6,171

6,025

6,057
6,000

5,371

5,415

5,297

5,296

5,267
5,093

5,000

4,808

4,773

4,731

4,707

4,665
4,414

4,290

4,257

4,000

4,311

3,840

3,278

3,536

2,527

2,559

2,487
2,037

1,478

1,522

1,610

2,984

2,669

1,717
1,460

2,719

2,288

2,382

2,000

3,392

3,015

2,922
2,713

2,764

2,408

3,395

3,149
3,000

4,430

1,723

2,1…
1,851

1,754
1,552

1,947

2,237

2,080

2,591

2,260

2,005

1,678
1,484

1,131
876

1,000
489

506

0

Q3 FY2020 Q4 FY2020 Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024

Initial

Stock

Fee

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

34

4.5.1 Segment results (Q2 cumulative)
Revenues at all segments grew; MSB profit increased 38.1% fromcontrolling credit cost
Segment revenue*

Segment profit*% YoY(¥ mil)Cumu. Q2
FY202336,099+26.6%Cumu. Q2
FY2024+18.5%% YoY(¥ mil)Cumu. Q2
FY2023

12,652

15,0002,043

30,4548,216

30,000693+12.7%+34.6%

12,500+ GMO-MR+71.1%

515
6,879

10,350Cumu. Q2
FY2024+25.1%+22.2%+13.4%+62.2%

184

113+ GMO-MR

1,479
10,000+21.3%+ GMO Payment
After Delivery+ Overseas
lending

20,00027,241
23,070+18.1%

12,515+17.5%

10,341+ CP payment
2,500

0

0
Cumu. Q2 FY2023

Cumu. Q2 FY2023

Cumu. Q2 FY2024■■決済代行事業
Payment Processing■ 金融関連事業
Business■ Money Service BusinessCumu. Q2 FY2024+21.0%+ Decline in one-time
expense booked in
the previous Q2- SGA expense
increase from higher
personnel cost, etc.

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

Money Service Business■■決済活性化事業
Payment Enhancement Business+38.1%+ GMO Payment
After Delivery+ Overseas lending

7,500

5,000

+28.5%

10,000+2.2%+19.4%* Figures for consolidated revenue and consolidated operating profit are after inter-segment eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

35

4.5.2 Segment results (Q2)
Payment Processing profit increased 29.8% as higher personnel cost
was offset by the decline in one-time expense in the previous term
Segment revenue*

Segment profit*% YoY(¥ mil)% YoY(¥ mil)Q2 FY2023
18,313

15,641
15,0004,198+28.2%369

Q2 FY2024+17.1%

268
3,523+21.6%+37.5%

1,242

6,000

+19.2%

5,000

864+30.5%

11,854

72

4,000

6,564

2,000

Q2 FY2023

Q2 FY2024■■決済代行事業
Payment Processing■ 金融関連事業
Business■ Money Service Business■■決済代行事業
決済活性化事業
Payment Enhancement
金融関連事業Business
決済活性化事業+43.8%+11.4%+29.8%+ Decline in one-time
expense booked in
the previous Q2- SGA expense
increase from higher
personnel cost, etc.

5,058

0
Q2 FY2023+27.0%+ GMO-MR1,000

0+47.9%

92+ GMO Payment
After Delivery+ Overseas
lending+16.2%+ CP payment

5,000+29.7%

+5.7%

3,000

13,773+26.4%

5,260+ GMO-MR+66.5%+ GMO Payment
After Delivery+ Overseas
lending

10,000Q2 FY2024

6,822

8,000

7,000

+16.3%Q2 FY2023

Q2 FY2024
決済活性化事業■■決済代行事業
Payment Processing■ 金融関連事業
Business
金融関連事業■ Money Service Business

決済代行事業■■決済活性化事業
Payment Enhancement
Business
営業利益（連結調整後）

OP (after eliminations)* Figures for consolidated revenue and consolidated operating profit are after inter-segment eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

36

4.6.1 FinTech related asset (quarterly trend)
FinTech related asset（¥ mil）
120,000

100,000

% YoY
+9.1%
80,00060,000+13.5%
40,00020,000+23.2%
0
End-Q3
FY2020End-Q4FY2020End-Q1
FY2021End-Q2
FY2021

Domestic lending

End-Q3
FY2021End-Q4FY2021

Overseas lending

End-Q1
FY2022End-Q2
FY2022End-Q3
FY2022End-Q4FY2022

Early Payment service

End-Q1
FY2023End-Q2
FY2023End-Q3
FY2023End-Q4FY2023

GMO Payment After Delivery*1

End-Q1
FY2024End-Q2
FY2024

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

37

4.6.2 FinTech revenue and profits (quarterly trend)
FinTech segment revenue and profit（¥ mil）
4,000

% YoY
＋9.8%

3,500

3,000

2,500

2,000

＋18.2%

1,500＋43.8%
1,000

＋5.7%

500

＋46.4%
0
20/3Q

20/4Q

Domestic lending

21/1Q

21/2Q

Overseas lending

21/3Q

21/4Q

22/1Q

Early Payment service

22/2Q

22/3Q

22/4Q

23/1Q
*1

GMO Payment After Delivery

23/2Q

23/3Q

Remittance service

23/4Q

24/1Q
*2

Other

24/2Q

Segment profit*1 Includes the impact of commission rate revisions to reflect the increase in CVS payment agency cost for Payment after Delivery from September 2022.
*2 The figures for “Other” is the sum total of B2B factoring, finance lease, B2B AR Guarantee, B2B Payment Guarantee, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

38

4.7.1 Consolidated CoS and SG&A ratio (quarterly trend)

Cost of sales ratio fluctuates depending on revenue mix(¥ mil)18,313

17,78518,00050.0%
16,546
16,11815,641

16,000

42.7%
40.9%

39.6%
14,000

37.5%

36.8%
34.8%

33.8%

33.4%

12,89738.5%

13,341

34.7%

12,201

31.3%
27.9%

26.7%

9,767

11,132
10,646 32.6%
35.8%

10,121

35.1%

33.9%

32.6%
30.0%

32.0%

30.7%

29.5%

28.8%
8,927

8,623

36.0%

33.6%

33.0%
31.1%

40.0%

37.0%

37.2%

36.7%

12,00010,00011,85734.6%

14,813

27.6%

27.2%

8,000
5,913
6,374

5,460
6,000
3,813
3,174
4,000

2,488

4,169
3,872
2,817

2,302

3,522
3,169

3,466
3,599

3,982

4,108
3,684

4,075
4,021

3,959

4,487

5,022

5,823

5,960

6,238

6,593

20.0%

5,799
4,976

4,469

4,743

4,618

4,570
10.0%

2,000

0

0.0%
20/3Q

20/4Q

21/1Q

21/2Q

Revenue

21/3Q

21/4Q

22/1Q

Cost of Sales

22/2Q

22/3Q

SG&A

22/4Q

23/1Q

CoS ratio

23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

SGA ratio

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

39

4.7.2 CoS/SGA ratio of GMO-PG & GMO-EP (quarterly trend)

CoS ratio trending stably for online payment business(¥ mil)10,511
10,15810,000

50.0%
9,564

9,219

9,083
41.6%

8,498

41.2%

39.7%
8,000

7,977

7,906

7,682

7,122

9,177

40.7%
40.0%
36.6%

32.5%

6,858

6,709

6,878

34.1%

6,370
33.3%

6,110

32.5%

31.6%

6,000

32.9%

30.0%
30.3%

29.4%
22.1%
20.2%

21.0%

20.5%

21.5%

30.3%
26.7%

22.6%
20.5%
19.3%

4,000

19.5%

20.1%
18.7%

19.8%

2,000

2,286

2,177

1,984
1,235

1,339

1,373

20/4Q

21/1Q

2,495

1,517

1,478

21/2Q

21/3Q

1,609

1,483

2,603

2,755

1,553

22/2Q

22/3Q

1,711

1,696

22/4Q

23/1Q

20.0%

3,462

2,796

2,722
2,447

2,345

1,616

19.1%
3,501

2,932
2,665

20.9%

20.9%
19.6%

3,462
2,649

25.9%

1,822

1,794

2,192
2,001

1,936

10.0%

0

0.0%
20/3Q

Revenue

Cost of Sales

21/4Q

22/1Q

SG&A

CoS ratio

SGA ratio

23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

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

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4.8.1 Operating stores, TRX volume and value

Consol. TRX value reaches approx. ¥16.7 trn in the past 12 months
OperatingStores*1/Terminals*2
End-Q2 FY2024

TRX Volume*2*3

TRX Value*2

Q2 FY2024

Past 12-mnth

Q2 FY2024

Past 12-mnth-1.77 bn6.80 bn¥4.6 trn¥16.7 trn-

+19.8%+23.1%+25.8%+26.5%

153,336 stores1.55 bn

6.03 bn¥3.0 trn¥11.2 trn

+9.0%

+14.9%+19.2%+13.4%+15.0%

344,564 units

0.22 bn0.77 bn¥1.5 trn¥5.5 trn+47.3%+70.1%+64.0%+59.4%+59.1%

Consolidated% YoY

Online
% YoY

CP*2
% YoY

Proportion of representative contracts in online TRX value*4： Approx. 40%*1 The standards for calculation the number of operating stores has been revised from Q4 FY2023. Figure exclude an operating stores of a specific merchant and fincode byGMO.
If included, operating stores would be 634,831 (up 17.87% YoY).
*2 Payment terminals exclude GMO-PG’s CP payment (GMO Cashless Platform). CP transaction volume and value includes GMO-PG’s CP payment (GMO Cashless Platform).
*3 Transaction volume is calculated based on fee revenue standards, which in the case of online consist of multiple (1 to 3) transactions per payment of a single authorization (tentative sales proceeds) or actual sales
proceeds, and one transaction per payment in the case of CP. *4 Annual average is shown in 5% increments.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

41

4.8.2 Waterfall chart of consol. TRX value (Q2)
Online payment grew only 13.4% due to impact of electricity rate
reductions, etc.
CP
payment（% YoY）（¥ trn）

GMO-PG
Market*1+58.8%+11.1%

Online payment

GMO-PG +13.4%
Market*1 +12.0%

Non-merchandise EC+15.5%+18.7%

Consol. +25.8%

Merchandise EC
+9.2%
+7.0%

MerchOther nonGMO-PS GMO-EP ¥4.7 trn*3
merchandise andise
4.5

4.0

¥3.7 trn*3
3.5

Utility
Electricity rate reduction
Travel/ticket （limited revenue impact）
Cycling through ofreopening effected
Excl. this impact:
Digital content/telecom
Online payment+16.3%
Growth in major
Non-merchandise EC +20.3%
telecom carrier, etc.
GCP*2
Growth of GMP, etc.
GMO-PG
GMO-FG
Increased transaction from higher
terminal sales

3.0
0

Q2 FY2024

Q2 FY2023*1 CP Payment market is based on Ministry of Economy, Trade and Industry’s “Survey of Selected Service Industries. EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income andExpenditure Survey,” figures are categorized into merchandise and non-merchandise according to the Company’s standards using the Internet expenditure amount per household.
Figures for CP Payment market show the % YoY growth for the period from January to February, as March 2024 data is not available as of this writing.
*2 Excludes GMO-PG’s CP payment (GMO Cashless Platform) *3 Rounded off to nearest trillion of yen.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

42

4.8.3 Distribution of major sectors (Q2)
Balance both stability and growth through sector diversification
Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)*
Revenue
proportion(Based on actual figures for Q2 FY2024)
The size of the circle represents the TRX value

30%

25%

Digital content/
telecom
20%

15%

10%

Memberships/
services

5%

C2C
0%
0%

ApparelFood/
Cosmetic/
beverage
health foodInsurance
Home delivery/
newspaper
10%

Utility
Travel/ticket
Daily goods/
office supplies

20%

30%

40%

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

43

Revenue growth (% YoY)
* Composed from TRX value by sector for the PG Multi-payment service.

4.9.1 Consolidated cash flow statement (cumulative)（¥ mil）
50,00040,00030,00020,00010,0000-10,000
FY2018FY2019Operating CF

FY2020

FY2021

Investing CF

FY2022Financing CF

FY2023Cumu. Q2
FY2024

FCF

Cumu. Q2 FY2024(¥ mil)Operating CF：
Pretax profit
Deprec. & Amort.
Trade and other receivables
Advances paid
Accrued revenues
Accrued expenses
Deposits received
Income taxes paid

+33,859+13,118+1,574-4,235-3,502-2,200+3,174+33,356-7,976

Investing CF：
Acquisition of intangibles
Purchase of inv. securities
W/drawal of deposits to
subsidiaries and affiliates
Financing CF：
Net increase in ST borrowings
LT borrowings
Dividends paid

+1,827-2,216-1,271+5,300-3,095+3,900+500-6,745

FCF：+35,687

Cash & Equivalents：

166,910Mainly Money Service Business* FCF is calculated as the sum-total of Operating CF and Investing CF. Only major items of the cash flow statement are shown on this page.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

44

4.9.2 Changes in consolidated cash flow statement
Related liabilities & assets

Impact from business expansion

Deposits received(liability)

Liability

Payment Processing Business
Sales proceeds ofmerchants under the
Representative Contract

Operating CF

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

Money Service Business
Early Payment service

Advances paid
(asset)Asset

Operating CF

Payment After Delivery
service

Accrued revenue(asset)Asset

Operating CF

Accrued expense(liability)

Liability

Operating CF

Deposits to subsidiaries
and affiliates(asset)Asset

Investing CF

OtherFunds temporarily deposited to GMO-IG’s* CMS(balance is zero as of end-Q2 FY2024)* GMO-IG: GMO Internet Group
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

45

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

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

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

46