Financial Results Briefing for FY2019
Key Message

Monetizing large projects to lay the groundwork for the next growth stage

November 14, 2019

ＧＭＯ Payment Gateway, Inc.
(Code: 3769; TSE-1st section)

The 59 th IR Meetinghttps://corp.gmo-pg.com/

A cautionary note about the contents of the document

The contents of this document are based on generally
recognized economic and social conditions, as well asassumptions judged to be reasonable by GMO Payment
Gateway as of November 14, 2019.
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. Wrap-Up of FY2019
2. Summary of financial results for FY2019
3. FY2020 guidance
4. Future initiatives and growth strategy
5. Financial highlights
6. Reference materials

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

3

1.

Wrap Up of FY2019

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

4

1.1

Wrap Up of FY2019

Management requirements and initiatives to reach OP ¥25bn
2005
OP¥0.2bn（Managementtarget）

2010

2015

2020

2025

¥1.0bn¥3.0bn¥10.0bn¥25.0bn＋¥0.8bn＋¥2.0bn

Focus Themes
EC Merchant acquisitions＋¥7.0bn＋¥15.0bn
Monetize large projects

Alliances & large acquisitionsof financial institutions

The 8 Management and operational requisites to generate incremental ¥15bn in the next 5 years

Management Requisites

Initiatives

Continuously monetize billion-yen businesses

1. Platform buildout for the utility sector

1. Buildout payment platform
for major industries

2. Platform buildout for the telecom sector
3. Service rollout to global majors

2. Service rollout to global major players

4. Expansion of BtoB payment business3. Innovation in FinTech domain

5. Next gen payment platform with SMCC+Visa

4. Innovation in the Cashless domain
5. Close ties with large FIs for the buildoutof next generation platform

6. Expand BtoB factoring service
7. Diverse services targeting FI’s
8. Payment services and Lending in the global market
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

2.

Summary of financial results for FY2019

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

6

2.1

Financial Results Summary （IFRS）

Revenues up 21.6% YoY, OP up 26.7% YoY; in line with guidance
FY2019Actual

FY2019 FullYear guidance%achievement
vs. guidance（mil. Yen）

FY2018ActualRevenue

26,41732,121＋21.6％

31,850100.9％

Operating
Profit

6,550

8,301

＋26.7％

8,300

100.0%

Profit attributable to ownersof parent

4,255

5,267

＋23.8％

5,106

103.2％EBITDA ※1

7,464

9,351

＋25.3％--DPS ※2

¥29

¥36

＋¥7

¥35

102.9％

Operating stores ※4(end-4Q)

KPI

※3

% YoY

TRX Volume(4Q standalone)

TRX Value(4Q standalone)

111,425店

Approx. 480mil.

Approx ¥1.1 tr.

（＋16.7％）（＋32.6％）（＋27.1％）※1 EBITDA＝Operating profit + Depreciation※2 On October 1, 2019 the company conducted a 2-1 stock split. The per share figure for FY2018 are calculated on a similar basis.
※3 Excluding offline payment . Figures in brackets () denote year on year change.
※4 Operating store figures exclude the impact of a increasing operating store from a specific large merchant. If included, the total number of operating stores
would be 228,765 stores by end-Sep 2019Q4, an increase of 123.2% YoY.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
7

2.2

Transaction volume and value trend

Continue to achieve over 25% growth in volume and value
TRX Vol.
（mil.）500

TRX Value（Yen bn）

1,2001,200

400
1,0001,000②

TRX Value① FY2019 TRX Value: Up 26.7% YoY
 Sequential increase in 4Q, despite the usual 3Q→4Q drop

TRX Volume①② FY2019 TRX Volume: Up 29.5％ YoY
 Increase in subscription and micro-payments along withordinary transactions

800 800300

600 600200

400 400100

200 200

000
14/12

15/3

15/6

15/9

15/12

16/3

16/6

16/9

16/12

17/3

17/6

17/9

17/12

18/3

18/6

18/9

18/12

19/3

19/6

19/9

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

8

2.3

Factors affecting financial results

MK slowdown offset by high-growth businesses to achieve OP
growth of 26.7% YoY（Mil. Yen.）

32,000+21.6％

30,00028,00026,000

Revenue（＋）Robust growth of online and offline payments（＋）Strong trends of GMO Payment After Delivery, Global Lending & Factoring（＋）Expansion of businesses to financial institutions (Ginko Pay etc.)（－）Deceleration of MACROKIOSK due to lack of sales ability（－）Phased scaling back of finance lease

24,00022,000Operating Profit（+）Contribution of high-margin online payment（+）Margin improvement of Money Service Business and a ¥0.7bn one-off profit uplift（－）Phased scaling back of finance lease（－）Impairment loss due to push-out of business plant at MACROKIOSK (¥0.9bn)

20,00018,00016,00014,00012,000+26.7％

10,0008,000+23.8％

6,000
4,000
2,000

Profit attributable to owners oparent（＋）Decline in equity method losses（－）Decrease in financial income（－）Increase in financial expense

0

Revenue
FY2018OP

Profit attributable toFY2019owners of parent
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

2.4

FY2019 Revenue by business model

Mainstay business is strong; the sluggish fee revenue already addressed
Spread ＋23.3％ YoY（Mil. Yen）

30,00013,69425,000（+）Strong online payment（+）Growth of GMO Payment After Delivery（+）Expansion of global lending（－）Phased scaling back of finance leaseFee
11,10520,00012,101

10,36415,000＋16.8％ YoY

Challenge #1（－）Contract termination in 2Q of a large merchant（－）Change in remittance service to major client（－）Adverse EMS business at MACROKIOSK ※1

Stock ＋42.7％ YoY ※2(Adj. ＋22.5％）
4,916

10,000（+）Robust trend of banking businesses

3,445

Initial － 6.1％ YoY ※2（Adj.＋45.5％）

5,000

1,501

1,409

0
FY2018FY 2018
Initial

FY2019FY 2019
Stock

Fee

Spread（+）Strong terminal sales in offline market※1 EMS business: Authentication and notification service on SMS※2 With the adoption of IFRS 15, software development revenue isrecognized as prorated over the service period. The adjusted growthrate below excludes the impact of IFRS 15.
Adjustment amount to Initial revenue: ＋¥774 mil. (4Q Cumulative)
Adjustment amount to Stock revenue: -¥709 mil. (4Q Cumulative)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

2.5

FY2019 Revenue and OP by segment

Payment Processing and MSB strong; offsets Payment Enhancement weakness■Operating Profit by segment■Revenue by segment
Total:+21.6％
5,832 （+8.8％）（Mil. Yen）

30,00025,000

Challenge#2（－）Impact of EMS service of
MACROKIOSK（－）Impact of Online
Advertising, Delivery and
SSL service

5,361

6,254

1,972 （＋43.2％）（Mil. Yen）

10,5001,377（＋）Growth in TRX of GMO Payment
After Delivery
6,500（＋）Expanding global lending（－）Phased scaling back of finance
lease

8,064

7,478（+19.6％）

15,000(after adjustments/eliminations)

8,500

20,0004,500
10,00018,811（+27.1％）
14,801

5,000

2,500
（＋）Growth in online payment（＋）Expanding Ginko Pay etc.
（＋）Contribution from bulk salesof offline terminals

-177

0

FY2019Payment Processing(1,500)

Money Service（＋）Margin improvement in
GMO Payment After Delivery（＋）Change in provision rate insome transactions (＋¥0.7bn)（＋）Expanding global lending（－）Phased scaling back offinance lease
10,031（+24.4％）（＋）Growth of online payment（＋）Revenue growth of Ginko
Pay（＋）Bulk sales contribution ofoffline payment terminals－1,151（－）

500

FY2018（）：% YoY

Consol. OP ＋26.7％

FY2018

Challenge#2（－）Impairment loss of ¥0.9bn
on MACROKIOSK’s delay ofbusiness plan（－）Impact of Delivery service

FY2019Payment Enhancement
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

11

3.

FY2020 Forecast

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

12

3.1

Consolidated Financial Forecasts (IFRS)

Sustain over 25% CAGR OP growth■ FY2020 Consolidated Financial forecast (IFRS)FY2019 Act.
Revenue

32,121（Unit: Mil. Yen, % YoY）

FY2020
Guidance
36,618% YoY
Challenge#3＋14.0％（Adj. +19.3％ YoY excl. MK and
GMO Payment After Delivery

Operating Profit

8,301

10,376＋25.0％

Pre-tax Profit

8,039

9,867

＋22.8％Net Profit

5,052

6,216

+23.0%

Profit Attributableto Owners of
Parent

5,267

6,110

＋16.0％

¥36

¥42

+¥6

Dividend per
share

※

※ Growth rate of Profit Attributable to Owners of Parent is lower than the Net Profit due to the uplift to Profit Attributable to Owners of
Parent in FY2019, which is in turn due to the allocation to non-controlling interests of the impairment losses of MACROKIOSK

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

13

3.2

Revenue growth rate by company

Target topline growth rate of CAGR above 25%
Revenue

GMO-PG（Payment
Processing）

GMO-PG（Money Service）

GMO-EP
GMO-PS（GMO Payment
After Delivery）

GMO-FGGCS
MACROKIOSKFY2019FY2020 Guidance Measures in place

Above＋20％

Above ＋20％

Above＋25％

Above＋25％

Above＋10％±0％

Above＋10％

Above ＋10％

Above＋25％

Above ＋25%

Above＋10％±0％

FY2021 Target

Change of President
to strengthen organization

Challenge#4

Expand scope of business※ In consideration of major customer① Enhance merchantacquisition ability② Shift to CPaaS and highgrowth economies③Diversity business portfolio

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

Challenge
#2

14

3.3

The 4 challenges and its improvement measures

Drastic measures in place to address the challenges werecognized during the previous fiscal year
Challenge

Improvement
Measures

Reference
page:
4.2

Challenge#1

Sluggish fee revenue（FY2019 ＋16.8％ YoY）

Addressed
Period: Sep. 2021 onwards～
Action: PF business to utility sector

Challenge#2

Pace of growth at
MACROKIOSK

4.6.2
In progress
Period: Sep. 2022 onwards ～Action：① Enhance merchant acquiring② Shift to CPaaS/high growth economies③ Diversification of global business

Challenge#3

FY2020 Consol. Revenue
growth rate

In progress
Period: Sep. 2021 onwards ～Action: Commence the new 8 initiatives

4.2～4.6

Challenge#4

Sluggish growth rate at
GMO-Epsilon

In progress
Period: Sep. 2021 onwards～
Action: ① Strengthen financial related
business and collaboration with partner② Develop new businesses

4.2

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

15

3.4

Revenue image for this fiscal year

Multiple factors affecting revenue growth rates but stable OP
growth■ Factors affecting revenue growth
1. Skewing effect by longer lead time fordevelopment and service start-up as
project sizes scales up
2016 2017

2018

2019

2020

2021

2022

Lengthening of lead time

2. Payment After Delivery（Charge rate/loss rate)

Revenue

25％ growth

GMV
Loss rate

OP

RevenueOP

Charge rate
3. Impact of loan balance of lending business
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

4.

Future Initiatives and Growth Strategy

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

17

4.1

Management Targets

Target above-market growth from 2020 onwards
2010

2015

BtoC EC Mrkt
EC penetration

2.4％

≒ 2x

BtoC EC Mrkt

Mrkt size¥7.7 tr.

≒ 2x

TRX Value¥0.8 tr.

≒ 2xOP¥1.1bn≒ 2.5x

2020

4.7％

≒ 2x

≒15％

¥13.7 tr. ≒ 1.5x ≒¥2.2 tr.

≒ 2x≒¥45 tr.

¥1.6 tr.

≒ 3x≒¥18 tr.

≒ 1.5x¥2.9bn≒ 3.5x≒ 3.5x≒7％2025≒¥6 tr.
¥10.0bn※≒ 2.5x¥25.0bn※o.w., ¥5bn+ to be generated from overseas businesses（Reference）The EC penetration and Market size figures reference METI’s “E-Commerce Market Survey” for FY2005 and FY2015. Figures for year 2020and beyond are based on our projections
Note: TRX value, OP and figures for year 2020 and beyond and the company’s targets and projections.

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

18

4.2

Broader EC

Resolving challenges and the implementing the 5 initiatives torealize above ¥18bn OP in 2025
■Initiatives to expand of non-merchandise andmerchandise EC

OP growth image

Merch. EC

Non-merch. EC

2025
2019

¥18 bn～FY2019 Non-merchandise
EC +36.7％ YoYExpand revs
Response to
Implement
Challenges
1～5 initiatives #1 and #3¥7bn
Merchandise EC +17.9％ YoY
Measure to expand
Acquire D2C-EC merchants

Expand into new online payment incl. merchandise EC

Initiatives Underway

Response to
Challenges #1 and #3

1. Buildout payment platform for utility sector
2. Buildout platform for telecom sector
3. Service rollout to global major players
4. BtoB payment business expansion
5. SMCC・VISA next generation payment platform

19/9

19/6

19/3

18/12

18/9

18/6

18/3

17/9

17/12

17/6

17/3

16/12

Target large and/or high growth companies

16/9

Basic Policy※ Graphs only shows GMO-PG’s online payment (multi-payment service) TRX value.
※ D2C（Direct to Consumer): Business model of direct sales by manufacturer.

■GMO Epsilon’s revenue enhancement measures① Strengthening financial related business
New initiatives with offline partners
Transaction lending to cart partners

Response to
Challenge #4② New business
Issuing service to self-employed businesses
New OEM payment method offerings to cart partners

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

19

4.3

FinTechRealize above ¥3bn OP contribution from expanding
Payment After Delivery, Factoring and global Lending■Revenue trend of major services （％: change vs. FY2018）

OP Growth Image

Domestic Lending ＋31.4％
Overseas Lending＋1479.5％

2025¥3.0bnFactoring＋2402.3％＋46.3％PaD*（2 wk period）
PaD: Payment After Delivery

2019 ※¥1.2bn※FY2019 OP is adjusted to exclude the impact of changes in theprovision rate on some of the transactions.

Basic Policy
Expand GMO Payment After Delivery
Expand Global Lending

Initiatives

Response to Challenge #3

Service rollout to Info Mart
from Jan. 2020

6. Expand factoring service
2018/92019/92020/9E

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

20

4.4

Cashless

Realize over ¥1bn OP contribution in 2025 from standardizing
PFs for Financial Institutions■ Expanding Stock Revenue to financial institutions
by quarter

OP growth image

Total＋87.7％ YoY

2025

YoY
＋153.2％

¥1bn～
2019

¥0.3bnBasic Policy

YoY＋70.7％（As of November 14, 2019）

Increase bank adoption of Ginko Pay└Diversify revenue from joining up services└rollout to non financial institutions
Expand the processing platform

Initiatives

Response to Challenge #3

7. Diversify service offerings to financial institutions

Ginko Pay

Processing

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

21

4.5

IoT

Realize over ¥2bn OP contribution in 2025 from unattended
markets
OP growth image■Unattended Markets
Food & Beverage
Vending machines2025 ※
2019¥2bn～

Mrkt Size¥2.083 tr.

TicketMachines

Fare
Adjustment

Office Coffee
Machine¥1 tr.

¥446.4 bn¥1.826 tr.

■Initial revenues in offline market¥0.3bnInitial revenue

Terminal sales＋97.2％ YoY※ Excluding contribution from next generation platform

Next Gen Payment PF“stera” terminal

Unattended
Markets

Basic Policy

User-facing
display

Strengthen marketing to Unattended Markets

Initiatives

etc.

o.w., Unattended
Markets

Response to Challenge #3＋176.8％ YoY

5. Next gen payment platform with SMCC+VISA
FY2018Merchantfacing display

FY2019Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

4.6.1

Global: Focus markets are India, Indonesia and US

Expand lending asset by establishing offices and collaboratingwith local top-tier FinTech companies■ Investment Portfolio and Revenue size by business

Focus Market②

Payment processing
Lending（FY2018）
Lending (FY2019)

Focus
Market③
Focus Market①

Growth strategies for 2025

Focus Market①※ Minority stakes by GMO-PG and Global Payment Fund.
※are corporates with a track record of lending Collaborate with top VCs and FIs in
IN/ID/US└Around 100 candidate investees incl.
minority investments
 Strengthen organization (exclusive
team/dept., establish corporates) Method: In-house business, investment,
lending or M&A└Depends on macro and timing
IoT

2025
¥5.0bn～FinTech（¥3～¥4bn）

2019

FinTech※ The circles represent the OP sizes of the focus areas in the years 2019 and 2025.

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

23

4.6.2Global: MACROKIOSK

Revamp business in Malaysia and neighboring countries andstrengthen new services■ MACROKIOSK: analyzing challenges using logic tree
Business

RegionClientChallenges and Initiatives

Established collaboration
with SE Asian telco
Stricter regulation on carriers;
Decline in TRX value from technology
carriers
advancements
2,000 merchants

MPS Biz（10％ of Ttl. Rev）

Revenue growth
FY2018 －14.0%
FY2019 －14.2%

StrengthMarket saturation (late-stage mobile

Bank

Malaysia
Domestic

Corporations

Approx. 95% share of banking penetration, bank coverage)
major banks
Action: Shift to CPaaS Response #2

Clients include major
ridesharing app,
major retailer

Accelerate further; nos. ofcustomers up 16% to 2,000 stores
Action: Strengthen merchant acq.
Response to challenge #2

EMS Biz（90％ of Ttl. Rev）

Revenue growth
FY2018 +28.0%
FY2019 +13.9%

Revenue growth
FY2018 +37.3%
FY2019 +17.4%

Overseas
MalaysiaBank（VN・ID・PH）

Nos. of customers up 12% at 900 in

Corporations

CPaaS（New service）

Response#2

Local mid-size banks Margin improvement pushout due
to delay in sales/implementation
customer wins
Acquiring clients esp. end-Sep 2019 but margin recovery lags
FinTech firms
Action：Diversify biz portfolio
Response to challenge #2

Tie-up with WhatsApp Revenue and service pushouts(Facebook), service
launched※MPS business： Mobile Payment Service
EMS business： Authentication/Notifications on SMS
CPaaS：Communications Platform as a Service

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

24

5.

Financial Highlights

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

25

5.1

Revenue by business model

Quarterly trend of revenue by business modelIFRS

J-GAAP※

3,595（Mil. Yen）

3,500

3,379

3,468

3,250
3,072

3,000
2,773
2,653

2,946
2,861
2,691 2,8012,705
2,666

2,471

2,500

3,059
2,971 2,997

2,436
2,360

2,101

2,000

1,809

1,500
1,227 1,259
931

1,000

500

0

959

612
733
601
630
713
680
663
532
512
584 496501594
468
528 565516
501
499
464 483
182

108

147

105

142

127

150

142

2,004

1,527
1,184

749

667

804

127

1,383

1,441

1,895

724
748
728

794
786

1,026
875

906

929

980
795

161

151

237

185

893

923
563

457
343

832

1,226 1,240 1,264

327

388
251

298

393

319

328

367

14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q 16/2Q 16/3Q 16/4Q 17/1Q 17/2Q 17/3Q 17/4Q 18/1Q 18/2Q 18/3Q 18/4Q 19/1Q 19/2Q 19/3Q 19/4Q

Initial

Stock

Fee

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

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

26

5.2

Balance Sheet Changes

Increase in deposits received and MSB-related assets
Liabilities and Equity

Assets（Mil. Yen）

139,990

46,75252,013100,000

100,000

42,03384,33827,171
23,18560,00060,00014,49540,00040,000015,43380,00027,53320,00038,80084,33880,00036,529 Provision

for Doubtful
Accounts
7,965
5,779 ー2,255
End-Sep 2017
※1

Invetment Related

53,53043,674

Provision for
Doubtful
Accounts
ー2,003
7,275

End-Sep 2018※2

MSB Related

Other

139,990

116,858

120,000

116,858

120,000（Mil. Yen）

Provision for
20,000
Doubtful
Accounts
ー1,96814,327

16,745

16,676

17,1996,300

11,281
3,820
11,97014,732

16,32020,76926,02027,5390

End-Sep 2019

Cash&Equivalents

36,497

End-Sep 2017

End-Sep 2018

End-Sep 2019

EquityMSB Related※2

Borrowings

Bonds

Other

Merchant Deposits※3※1 Securities classified under Investment Securities and Equity-Method Affiliates※2 MSB Related Asset：Lease assets, Short term loans, Advance payment, Accrued revenue (net of provisions for doubtful accounts)
MSB related Liabilities：Accrued expenses※3 Deposits received from merchants under the Representative Contract. ※4 Some figures are shown in net amounts of financial asset and liabilities.

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

27

5.3

Major Quarterly KPIs

Group-wide annual TRX value reaches ¥4.6 trillion※1

Operating stores: 111,425 stores, TRX volume approx. 480 mil., TRX value approx. ¥1.1 trillion.
（¥100 mil.)（stores）
11,000120,000
10,000（Reference）Cumulative trailing 12-mnth TRX Value approx. ¥4.29 trillion
TRX value reaches ¥4.60 trillion including GMO-FG（10K cases）
45,0009,000
100,000

8,000
40,0007,000
6,000
80,00035,0005,000
30,0004,000

TRX value as a share ofmerchant’s aggregate
sales: ≒50%
※Annual average basis(revised in 5% increments)

60,00040,00025,00020,00015,00010,00020,0005,000
00Recurring billing

Online TRX volume

Act. Operating stores ※2

TRX Value*1 Number of operating stores is measured on an end-of-quarter basis, while TRX value and volume are the total for the respective quarter.
*2 Figure excludes a significant increase in operating stores from a specific merchant. If included, operating stores would be 228,765 outlets by end-Sep 2019 (up 123.2% YoY)

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

28

6.

Reference materials

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

29

6.1

FinTech：Assets and profit growth

Rapid growth of global lending and margin improvement of GMO PaD（％：YoY change）（Mil. Yen）
■Segment OP■Segment Revenue■MSB-related assets

1,972+21.4％+19.6％－41.8％－42.9％+24.1％

Impact fromchange inProvisions for
doubtfulaccounts＋43.2％
1,377+38.0％+12.9％＋95.7％

+9.1％

＋9.7％
+548.3％+171.3％End-Sep 2018

End-Sep 2019

Transaction Lending

FY2018
Early Payment

FY2019

GMO Payment After Delivery

FY2018Remittance

FY2019Finance Lease* Figure is net of GMO PaD assets (accrued revenue) and provision of doubtful account
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

30

6.2

Revenue trend by business model (annual)Pursue balanced growth of each business model（Mil. Yen）

J-GAAP

40,000IFRS

38,00036,00034,00032,00030,00028,000Spread26,00024,00022,00020,00018,00016,00014,000Fee

12,00010,000
8,000
6,000

Stock

4,000
2,000

Initial0

2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9E
TSE Listing

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

31

6.3.1

Quarterly trend of CoS and SGA ratio

CoS ratio fluctuates with changes in sales mix*Figures with asterisk exclude outsourcing expense related to MSB.
These outsourcing expenses are not booked in SG&A from December 2017 (Q1) due to IFRS adoption.

J-GAAP（Mil. yen)
8,000

IFRS
※47.2％※44.5％
50.3%※42.6％※41.7％※39.8％
7,000

46.8%

45.6%

7,769

50.4%
※40.3％

7,945

50.0%

7,295

44.2%

43.6%
6,086

※37.4％
42.6%
5,645

6,459
6,098

5,716

32.1%
5,000

31.9%

6,563

31.9%

37.6%

36.3%

40.9%
33.4%

41.1%

40.2%

33.2%
35.3%

35.4%

36.4%

36.1%

35.9%

4,347
4,000

3,000

2,733

2,998

23.4%

22.6%

22.8%

22.5%

3,090

3,294

3,067
2,491

2,036

1,000

1,813

1,655
1,247

1,307

615

683

35.5%

33.3%

36.6%

32.7%

1,823

1,940

2,494

2,595

2,035

2,143

2,997

3,004

2,382
2,320

3,098

2,581

2,791
2,807

2,646
2,818

2,664

30.0%

20.0%

2,986

1,316

10.0%

1,109
700

40.0%

25.5%

2,497

2,000

8,160

※39.9％

43.6%

6,000

8,246

772

0

0.0%
15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 18/12(1Q) 19/3(2Q) 19/6(3Q) 19/9(4Q)

Revenue

Cost of Sales

SG&A

CoS ratio

SG&A ratio

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

32

6.3.2

Quarterly trend of PG and EP’s CoS and SGA ratio

CoS ratio fluctuates with changes in sales mix（Mil. Yen）

50.9%

8,000

48.8%

50.0%

47.4%
44.8%

44.9%

7,000

44.8%

45.3%

42.5%

41.3%

6,000

36.8%

33.5%
5,000

36.7%

36.7%

34.0%

4,663
4,297

4,000
21.1%
3,000

21.2%
2,827

21.1%

21.9%

3,092

2,899

22.6%

3,653

3,397

3,469

21.3%

5,032

3,712

22.2%

24.3%

23.0%
20.7%

1,509
1,203

1,197

543

599

611

677

1,785

1,525
1,225
767

778

1,180
770

20.9%

20.7%
20.0%

2,212

1,151

21.0%

22.1%

1,890

1,000

30.0%

24.2%

2,570
2,000

5,142

4,816

4,384

3,937

23.6%

33.1%
4,840

928

822

40.0%

36.5%

1,577

1,611

1,039

1,067

2,253
1,783

1,071

1,874
1,592
10.0%

1,043

1,016

1,005

1,065

0

0.0%
15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 18/12(1Q) 19/3(2Q) 19/6(3Q) 19/9(4Q)※All figures are based on J-GAAP.

Revenue

Cost of Sales

SG&A

CoS ratio

SG&A ratio

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

33

6.4

Consolidated CF Statement■FY2019 changes（Mil. Yen）

J-GAAP

20,000IFRS(Mil. Yen)

Operating CF:
Pretax profit
Chgs. in rcvbles
Advances paid
Accrued income
Chgs. In payables
Accrued expenses
Deposits received＋¥1,311+¥8,039－¥516－¥10,229－¥5,848+¥131＋¥278＋¥9,605

Investing CF:
Time deposits
Acq. Of intangibles

+¥858
＋¥689
－¥1,356-8,000Financing CF：
Chgs in ST debt
LT debt repayment
Dividend payout＋¥7,959+¥11,699－¥800－¥2,134-10,000

Free CF＋¥2,169

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
-2,000-4,000-6,000FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Operating CF

Investing CF

Financing CF：

Cash & Equivalent: ¥52,013

Free CF※ Free CF= Operating CF + Investing CF
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

34

T h a n k Yo u Ve r y M u c h

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange, Section 1)
URL： https://corp.gmo-pg.com /en /ir/
For inquiries please contact our IR team at the telephone number below:

Corporate Value Creation Strategy Division (IR Department)

TEL:+81-3-3464-0182