Financial Results Briefing for Q3 FY2022
Growing above expectation thanks to a business portfolio
re sil i ent against macro f luctuations

August 10, 2022
70 th Investor Meeting

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

Agenda1. Summary of Financial Results Q3 FY2022
2. Growth Strategy and Initiatives in Focus Areas

3. Sustainability
4. Financial Highlights and Reference Materials

Following abbreviations are used in this material.
GMO-PG: GMO Payment Gateway; GMO-EP: GMO Epsilon; GMO-MR: GMO Medical Reservation Technology; GMO-PS: GMO Payment
Service; GMO-FG: GMO Financial Gate; GMO-CAS: GMO Card System
PF: Platform

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

2

Safe Harbor Statement

The contents of this document are based on generally
recognized economic and social conditions, as well asassumptions judged to be reasonable by GMO Payment
Gateway as of August 10, 2022.
Please note that the contents are subject to change
without prior notice in the event of changes in thebusiness environment or other unforeseen occurrences.

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

3

1. Summary of Financial Results for Q3 FY2022

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

4

1.1

Earnings Summary

Steady progress towards achieving full year guidance, Net
Profit increased by 204.6% due to share divestment
IFRS（¥ Mil）

FY2021 Q3Cumulative

FY2022 Q3Cumulative% YoY

FY2022
Guidance（Achievement %）50,00012,897(73.9％)(+21.1％)

16,2344,511(78.8％)(+24.3％)*Refer

31,53821,8094.2.2(96.7％)(+460.9%)

20,86015,610(101.3％)(+464.0%)ーー

Revenue

30,53536,956+21.0%

Operating
Profit10,222

12,788+25.1%

Pre-tax Profit

10,52630,500＋189.8% to slide

6,937

21,129+204.6%

11,614

14,360＋23.6％

ProfitAttributable to
Owners of Parent

EBITDA

Operating Stores(end-Q3 FY2022)
KPI (% YoY)

138,119 (+14.9％)

FY2022 Q3standalone（% YoY）

Consol. TRX Volume(Q3 standalone)

Consol. TRX Value(Q3 standalone)

Approx. 1.25 bn(+39.3％)

Approx. ¥2.9 trn (+42.8％)

o.w., online approx. approx. 1.15 bn (+34.6％） o.w., online approx. ¥2.2 trn (+28.9％)※ EBITDA=Operating Profit + Depreciation.
※ Operating stores figure is for GMO-PG and GMO Epsilon (EP). Consolidated TRX volume and value figures are the sum totals for GMO-PG, GMO-EP, GMO Payment Service (GMO-PS)
and GMO Financial Gate (GMO-FG). The online payment figures are the sum totals for GMO-PG, GMO-EP and GMO-PS.
※ The standards for calculation the number of operating stores has been revised from Q2 FY2022. Figures exclude a specific case and the operating store related to a major delivery
service operator. If included, the number of operating stores is 427,446 stores (up 56.6% YoY).

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

5

1.2

Waterfall Chart for Consol. TRX Value(Q3 standalone)

Achieved above-market growth rate from increase in offline
and non-merchandise payments（％ YoY）
Online payment total ＋28.9%

Offline payment（¥ trn）

Outperform

Company ＋111.9%
Market ※1+18.7%

＋93.2

十億

3.0

Non-merchandise EC+53.1%＋10.3+42.8%

Consol. ＋42.8%
Merchandise EC
+8.9%
＋8.2
+0.7%

GMO-PS
Merchandise
Other nonmerchandise※3

2.5

GMO-EP

Travel & Ticket
Increased outings that entail travel

Digital Content・Telecom
Major telcos, growth of GMP, etc.※4

Utility
2.0

Expansion of service
to major EPCOs

GMO-PG

GMO-FG ※2
Growth of new and existing merchants
Increase in offline consumption from reopening

1.5
0

Q3 FY2021

Q3 FY2022※1 Offline market: METI’s “Survey of Selected Service Industries”. The offline market figures show the YoY change for April to May as the June figure is undisclosed as of this writing.
EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income and Expenditure Survey,” figures are categorized into merchandise and non-merchandise
according to the Company’s standards using the Internet expenditure amount (22 items) per household.
※2 Excludes GMO-PG’s offline payment (GMO Cashless Platform) GMO-PG ※3 Financial institution-linked utility ※4 GMP stands for Global Major Players

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

6

1.3 Revenue by Business Model (Q3 standalone)
Robust fee revenue from increase in offline payments, etc.
% YoY（¥ Mil）
14,00012,000Spread12,897
10,646

5,297

10,000

4,707
8,000

3,395

6,000

2,669

2,037

4,000

1,717
2,000

2,166

1,552
Q3 FY2021

InitialStock

Q3 FY2022

Fee

Q3 FY2022＋9.7％＋12.5％＋＋＋－－

Offline payment
Early Payment service
Overseas Lending
Online payment
GMO Payment After Delivery

Fee＋12.0％＋27.2％＋17.6％＋18.6％＋ Offline payment＋ Online payment

Stock＋ Processing Platform＋ Offline payment＋ GMO-MR
Initial0

Q3 FY2021＋216.8％＋39.6％＋ Payment terminal sales of offline payment
Spread※ The “+” signs indicate services with growth rates that are higher than 25% or if the growthrate is higher than that of the business model; the “-” indicates growth rates that are lower.

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

7

1.4

Segment Results (Q3 standalone)

Each segment making steady progress towards full year guidance
Segment Revenue＋19.9％ YoY

Segment Profit

Consol. ＋21.1％ YoY（after consol. adjustments)（¥ Mil）（¥ Mil）

12,897259

12,00010,646
10,000＋38.2％ YoY＋ Strong GMO-MR＋ Growth of online advertising

187
2,465

2,745

4,511
28
4,000

612

3,629

3,000

4,721
9,895

7,997

4,000

＋23.7％ YoY

2,000＋15.8％ YoY+ Growth of overseas lending－ Hard comps from COVID windfall for
GMO Payment After Delivery－ Cost increase from raising credit limit

528

6,000

＋144.9％ YoY＋ Strong GMO-MR＋ Growth of online advertising

5,000＋11.3％ YoY+ Growth in overseas lending－ Hard comps from COVID windfall
for GMO Payment After Delivery

8,000

70

＋23.3％ YoY＋ Expansion of offline payment＋ Growth of non-merchandise domain

3,830＋ Expansion of offline payment＋ Growth of non-merchandise domain
1,000

2,000

0

0
Q321/3Q
FY2021Q3
FY2022
22/3Q

Payment Processing Business

Q3
FY2021
21/3Q

Money Service Business

Q3
FY2022
22/3Q

Payment Enhancement Business

Operating Profit

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

8

1.5.1

GMO-PG Non-consolidated Performance:(Quarterly Trend)

Revenue up 19.2%; non-merchandise up by 20% despite thehard comps against last fiscal year’s high growth% YoY
Q3 FY2021 Q3 FY2022

GMO-PG Non-consolidated Revenue and OP ※1（¥ Mil）
Revenue at a certain merchant (left axis)

4,000

Merchandise Revenue (left axis)
6,000

Non-merchandise revenue (left axis)

3,500

Operating Profit (right axis)
3,000
5,000
2,500
4,000
2,000
3,000
1,500
2,000
1,000

1,000

0

500

0

＋13.6％＋19.2％＋16.9％＋17.8％＋0.0％
Merchandise EC
Apparel－43.4％
Food & Beverage＋39.9％
Cosmetics, Health food ＋9.3%

＋9.7％
－3.6％
＋21.4％＋2.6%

Non-merchandise EC＋29.6％
Digital content・Telecom＋21.4％
Utility＋70.4％
Travel & Ticket＋42.9%＋20.6％＋13.8％＋3.9％＋54.6%BaaS Support＋23.5％＋45.9％

Money Service Business －5.0％
Remittance service－16.2％
Early Payment＋58.0％
Overseas lending ※2＋74.8％＋16.4％＋13.6％＋26.1％＋7.2％

Revenue

百万

百万

7,000

Online payment

20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q 22/2Q 22/3Q※1 Revenue figures are after elimination and adjustments. The figures for BaaS Support is the sum total for Ginko Pay and processing platform.
※2 Excludes overseas lending revenues recognized at the local corporate entity. On a consolidated basis, the growth rates would be up 22.1％ YoY for Q3 FY2022 and up 40.9％ YoY
for Q3 FY2021.

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

91.5.2

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

EP/PS merchant acquisitions increasing from progress on
initiatives, GMO-FG continues strong performance

KPI (left axis)

Revenue (right axis)

GMO-EP Consol.

GMO-PS

Revenue＋4.6％ YoY
（2-yr CAGR） ＋7.1％
KPI: new merchant acquisitions

Revenue＋8.4％ YoY Revenue＋47.2％ YoY（２-yr CAGR） ＋94.8％（2-yr CAGR） ＋2.7％
KPI: new merchant acquisitions KPI: Operating terminals（¥ Mil）（trx）（¥ Mil）（trx）（¥ Mil）

1,500

4,000

2,000

200

3,000

GMO-FG Consol.

（Units）
200,000

2,500
3,000

1,500

150

150,000

2,000

1,000
2,000

1,000

100

1,000

500

50

1,500

100,000

1,000

500

50,000500

Return to growth trajectory driven by
pickup in new merchant acquisitions fromlaunch of fincode byGMO, etc.

B2B Pay On Credit gradually contributing
to revenue. Preparing to launch new
BNPL next fiscal year

22/3Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

0

20/4Q

0

20/3Q

22/3Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

0

20/4Q

0

20/3Q

22/3Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

0

20/3Q

0

Stock-type revenue up 66.3% fromincreased offline consumption due toreopening ※2※1 The figures for all the companies stated above are amounts before eliminations and consolidated adjustments. GMO-EP Consol. includes GMO Epsilon and GMO Medical
Reservations Technology. GMO-PS: GMO Payment Service, GMO-FG Consol. includes GMO Financial Gate and GMO Card System.
※2 FG consolidated initial revenue is an excerpt from GMO-FG’s disclosed financial results and stock-type revenue is the sum-total of stock, fee, and spread revenues.

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

101.6.1

Review of Pre-COVID Priority Initiatives

Strategies formulated pre-COVID are progressing as expected
Results Briefing material for FY2019
Priority Initiatives（As of Nov. 14, 2019)

Evaluation
criteria

Plan realized andtargets achieved
Targets unachieved
Recovery Plan

Review and evaluation（As of Aug. 10, 2022)① Industry-specific platform

Provision of SMS Choice of Payment to TEPCOEnergy Partners② Telecom industry platform

Provided platform to major telco company
GMV of largest merchant +78.0％ (vs Q3 FY2021)③ Services to global majors

Acquisition of GMP Co. A and GMV+87.5％（vs. Cumu.
Q3 FY2021) ※1④ Expand B2B payment businessCorporate operational improvement requires time
Expand financial services line-up⑤ Next generation payment
platform (stera)

Rolled out stera
Stock-type revenue+66.3％ (vs. Q3 FY2021) ※2⑥ B2B Factoring service

Sudden changes at client’s businesses due to COVID-19
Expand other financial services where demandis increasing⑦ Diverse service rollout tofinancial institutions

Provide to business operators in addition to financial
institution; Processing PF revenue +64.4％ (vs. Q3 FY2021)⑧ Global payment & lending

Exceeded plans due to strong FinTech lending *Refer toslide 2.9.3
Total revenue +32.4% (vs. Q3 FY2021)※1 GMP stands for Global Major Players.
※2 FG consolidated initial revenue is an excerpt from GMO-FG’s disclosed financial results and stock-type revenue is the sum-total of stock, fee, and spread revenues.

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

111.6.2

Transformation of Business Structure

Achieved above-market growth from strengthening offline
and non-merchandise domains

Q3 standalone GMV of offline & online payment(merchandise+non-merchandise)（¥ trn）2.5% YoY

Online payment (merchandise)
Online payment (non-merchandise)

2.0

Offline payment
GMO-FG Consol.

+111.9%Market +18.7%

Offline payment※

Online payment(non-merchandise)
GMO-PG+123.3%

1.5+53.1%
Market +42.8%+77.8%+46.2%

1.0+27.6%
0.5+0.3%+49.9％

MarketOnline payment(merchandise)
GMO-PG
GMO-EP Consol.
GMO-PS

+8.9%
+0.7%

0.0

19/3Q

Pre-COVID
Buildout a business structure
resilient against the post-Olympics
macro decline
Utility, recurring billing

20/3Q

21/3Q

During COVID
Strengthen the non-merchandise
and the enormous offline market
during the temporary accelerationin the merchandise EC market

22/3Q

Currrent～Future
Growth driven by offline and nonmerchandise without relying on EC
market that is affected by COVID※ Offline market: METI’s “Survey of Selected Service Industries”. The offline market figures show the YoY change for April to May as the data for June is undisclosed as of this writing.
EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income and Expenditure Survey,” figures are categorized into merchandise and non-merchandise
according to the Company’s standards using the Internet expenditure amount (22 items) per household.

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

12

2. Growth Strategy and Initiatives
in the Focus Areas

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

13

2.1 Expansion of GMV = Growth of Client’s Business
Achieved GMV of over ¥10 trn more than a year ahead ofplans; aim to achieve GMV of over ¥20 trn by 2025（¥ trn）
20

2025 Target＝ Mediating transactions as apayment platformer

Consol.
GMV Value

GMV
OP＝ Supporting the client’s
business domains

2022～
Intra-industry penetration,
expand the focus sectors

Offline payment

15¥20 trn～¥25.0 bn～

Online payment

2019～2022

Consol. TRX value

Capture offline payment,
expand applicable domains

CAGR+35％
Launch industry-specificplatforms
Expand footprint ofoffline payment

102015～2019

CAGR＋27％5

2010～2015

CAGR＋16％

0
10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

21/9

22/9

23/9

24/9

25/9

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

14

2.2

Driving Social Innovation

Support innovation for client’s tackling social issues andtransformations
Social Issues

ClimateChangeSocialtransformation
Decarboup to 2030
nization

Pandemic

Real x Digitalconvergence

Resource
conservation/
Renewable

Inequality/
Poverty

Old Values/
Customs(commercial)

Borderless/Inbound

Smart
City/Regional
Revitalization

Financial
Inclusion

Diversifying values/
Individualization

・RetailFinTechLending/
Support

Logistics

BNPL

Financial

Cashless※

Real Estate

Crossborderpayment

Transportation

payment

Onlinemedicalreservation/payment

Inflation/Macrofluctuation

GlobalNext Gen

Application PaperlessSelfpayment/
Infrastructure payment checkout Automatic

Depopulation/
Aging Society/Labor
Shortage/Rural
depopulation

Travel・

Digital Content

・

Healthcare
Welfare・

BroadcastCommunication

Electric PowerGas

Cross-industry

Resource
Depletion

Salaryprepayment

Utilizing
payment
data※ Refer to slide nos. 4.9 titled “New Business Model and Issues in the Retail Sector”

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

15

2.3.1Business Portfolio

Sustain medium-to-long-term growth by selection and focus on
businesses that help achieve management targets
Growth phase distribution of each product(revenue up to cumulative period to Q3 FY2022)
Seeding phase
Business development tocapture future mega-TAMs
110%
Instant Salary100%
byGMO ※

Size of circle = revenue size

Expansion phaseRe-acceleration phase

Stable growth phase

Promote strategy to
expand footprint inemergent growth markets

Midterm initiatives toreturn to growth; entry
into new domains

Sustained growth bydeploying industry-specificDX support platforms

Revenue growth rate

Online medical
reservation

90%
80%

(GMO-MR）

Overseas
lending

70%

60%

2.9

Offline Payment
Processing PF
Ginko Pay 2.7

50%
40%

（GMO-FG） 2.8（BaaS）

30%

20～25％ growth rate threshold

20%（GMO-PS） 2.6.1

0%
0
-10%

2.6.2

BNPL payment

10%5

fincode byGMO

BNPL service

10

SME domain
payment

MSB

2.5.2

Online 2.5.1
payment(GMO-EP）
15

20

25

Nos. of years since launch※ Instant Salary byGMO was not launched a year ago, hence the period since the launch has been divided into two parts to calculate the rate of change.

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

16

2.3.2 Business Portfolio: Domestic Investment
Strategy
Improve enterprise value by enhancing management’s execution capability by
pursuing proprietary PMI; expand investment when opportunity arises
Timing of Group-Join and image of increase in post-succession corporate value
Group Join
・Business succession

Revenue Size

Instant SalarybyGMO

GMO Medical Reservation Technology

Nos. years since launch (12 years since commercialization)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

17

2.4

Progress of Priority Initiatives

Robust progress on projects already operating, making steady progress on
pipeline projects that contributes to revenue from next fiscal year onwards
OP (¥bn)

Priority Initiatives
Utility TEPCO Energy Partner

2021（Act.）

BroaderEC

2025（2021 Target）

9.5 18.0～22.0

On track to commence in Q1 2023

Co. C

On track to commence in Q1 2023

Cumu. Q3 GMV ＋87.5％ YoY

Co. B

Negotiating for launch part 2 and 3

Co. C

Negotiating to close deal next fiscal year onwards
GMV increased approx. 8x QoQ thanks to adoption bymultiple companies

Telecom

2.0

3.0～

Under system development, to be launch Q1 2023

Co. A

Foreign-owned company

FinTechLaunched SMS Choice of Payment, GMV surging

Co. B
Tax payment smartphone app

GMP

Progress/Achievements

Scheduled launch of part 2 in Q4 2022

Real Estate

Steady progress in implementation to several companies

SME Domain

Official launch of fincode byGMO in May

B2B Pay On Credit

GMO B2B Pay On Credit gradually contributing torevenue
Signed MoU with SMCC on new BNPL service

BNPL

Acquisition of large merchant, payment terminal
implemented
Operating IoT terminals up ＋32.7% YoY

stera

Offline・
IoT

0.58

2.0～

BaaS

0.6

1.0～

GMO-PG Processing Platform

Scheduled launch in Q1 2023 and Q1 2024 fromacquiring new merchants

Global

-3.0～

FinTech Lending

Loan book up ＋38.2％ YoY, pipeline also building up

Unattended Market※ GMP stands for Global Major Players; SMCC stands for Sumitomo Mitsui Card Company, Limited.
The 2025 OP target for Offline・IoT includes companies/services other than GMO-FG and GMO-CAS

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

18

2.5.1 Broader EC:
Strengthening Sales Capability

Broader EC
2025 OP Target¥18.0～¥22.0 bn

Promote a qualitative and quantitative sales strategy; raise
proportion of large clients to 40% of revenue by 2025
KPI・Targets

High Value Strategy
GMO-PG

Strengthen industry-exclusive sales structure,value proposition-type sales

Consol. Sales
personnel ※1

Provide industry-specific solution/platform
Bundled electronification of payment workflow/DX
support such as strengthening CRM ※2

2021
Large clients
Revenue proportion 30％

Approx. 300
2025

40％

High Volume Strategy
GMO-PG

Implement inside sales: improve productivity throughdivision of labor and specialization
Partner strategy

Sales
productivity

30％ improvement

No. of newclientacquisitions

50/month

No. of newclientacquisitions

1,500/month

Cross Sell/Up Sell
Partner strategy

GMO-PS

BNPL/GMO B2B Pay On Credit

Partner strategy

GMO-EP

fincode byGMO※1 Figures are GMO-PG’s consolidated sales personnel as of end of June 2022. ※2 CRM stands for Customer Relationship Management.

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

19

2.5.2 Broader EC: Positioning of “fincode byGMO”
Return to growth trajectory by penetrating into growing
markets and non-merchandise domains
Large

Client’s business scale

PG Multi-Payment service
Merchandise/Non-merchandise
SLG
EC (Enterprise sales)

Epsilon payment service
PLG
Merchandise EC(mainly shopping cart link)

Tech start-ups
Non-merchandise EC (including
subscription/platform
PLG
business)Engineer FirstHigh※ SLG stands for Sales-Led Growth; PLG stands for Product-Led Growth.

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

20

2.6.1 FinTech: GMO Payment After Delivery,
GMO B2B Pay On Credit

FinTech2025 OP Target¥3.0 bn～

Initiatives leading to increasing trend of GMO B2B Pay On
Credit and merchant acquisitions
Trend of GMO B2B Pay On Credit: Actual
vs. Plans/Forecast

Trend of new merchant acquisitions andreferral cases(cases)Current
Fiscal Year

Referral cases

Initial Plan
Actual and Forecast

New merchant acquisitions
150

100

50
21/1Q

21/2Q

21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

Pace of new merchant acquisitions acceleratingfrom the increase in referral cases

22/1Q

22/2Q

22/3Q

22/4Q

Likely to catch-up with initial plans thanks to the initiatives① Early contracting and operation of large projects② Synergy with GMO-PG③ Strengthening alliance with partners
Link with EC website creating package software “ecbeing BtoB”
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

2.6.2

FinTech: Expansion of BNPL Domain

Aim for No.1 market share by expanding domain into longterm installment and offline transactions
BNPL market share and expansion of business domain(Actual and image) ※
Act.

50%
No.1
Share

Now

Forecast (image)App
Co-deployment of BNPL with
OfflineSumitomo Mitsui Card Company NEW
payment
LT installWhy GMO-PG
ment
B2B
Nearly a decade of BNPL know-how

40%Market Share

Scheduled launch of
New BNPL service

30%

Service
Existing
domainMerchandise

20％
20%

B2C
Short term

10%

OnlinePaper

Core system already developed
Development capability for additional
system development

Timeline
May 2022

Basic agreement forbusiness allianceSpring 2023

Commercial launch

35/9E

34/9E

33/9E

32/9E

31/9E

30/9E

29/9E

28/9E

27/9E

26/9E

25/9E

24/9E

23/9E

22/9E

21/9E

20/9

19/9

18/9

17/9

16/9

15/9

14/9

13/9

0%

Credit assessment using AI andmachine learning※ Market share figures for Sep. 2014～Sep. 2020 is calculated based on BNPL market size (please refer to below footnote) and GMO-PS’s GMV value.
Figures for BNPL market size in FY2021 are estimates, and figures for FY2022～FY2025 are forecasts.
Data used: Yano Research Institute Ltd.’s “Online Payment/Settlement Service Providers 2022” and “Domestic Cashless Settlement Market 2019.”

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

22

2.7

BaaS

BaaS
2025 OP Target¥1.0 bn～（Embedded Finance）

Growth acceleration from Processing PF service that plays
into the client’s needs※

Quarterly Trend of Ginko Pay・Processing PF Revenue

Promote credit card issuing,
growth acceleration fromalliance strategy■ Issuing (Processing PF)■ Acquiring (Processing PF)■ Ginko Pay

Q3 FY2022% YoY

Driven by Acquiring・Debit
Issuing・Ginko Pay

Processing PF＋64.4％

Value proposition of ASP service
Rapid provisionof functions

Cost
minimization

Security enabled

Functional
scalability

Financial institution
Support the agile deployment ofservices
Business operator

GinkoPay＋23.2％
Total

Support entry into financial businessby leverage data

＋45.9％

22/3Q

22/2Q

22/1Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

20/1Q

19/4Q

19/3Q

19/2Q

19/1Q

18/4Q

18/3Q

18/2Q

18/1Q

17/4Q

17/3Q

17/2Q

17/1Q

Credit card industry
Improveefficiency/reinvigoration

Expanding client bases of Processing PF
FI Co.AFI Co. C
FI Co. B

Co. D

Credit Card Co. E
23/1Q～
Credit Card Co. F Co. G

24/1Q～Co. H※ Figures for Ginko Pay and Processing PF revenue include revenue from non-financial institutions.

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

23

2.8.1

Offline・IoT

Offline・IoT
2025 OP Target¥2.0 bn～ ※1

Stock-type revenue growth exceeds initial revenue growth rate
Quarterly Trend of GMO-FG/CAS Revenue by※2
Business Model% YoY（¥ Mil）
900

800■ Initial (right axis) ＋41.4％■ Stock (left axis)＋34.1%■ Fee (left axis)＋145.4％700 ■ Spread (left axis) ＋32.5％

600

Transactions increasing from reopening;providing cashless support
Merchant X（Restaurant） Merchant Y（Travel)

TRX volume＋114.0%

TRX value＋111.9%2,500

Lifted1

Stock-typerevenue＋66.3％

1

1

1

1

2,000

Quasi SoE

1

0

1

0

0

0

0

1,500

0
0

Quasi SoE

0
0
0

0

0

0
22/1 22/2 22/3 22/4 22/5 22/6

400

0

0

0

500

Lifted1

0022/1 22/2 22/3 22/4 22/5 22/6

1,000
300

200

500

100

0

0

Provide infrastructure for both online andoffline; support improving UI/UX
GMO-PG/FG common merchant sectors
Coffeechainstore

Supermarket

TicketDrugstore

Fitness Gym

Apparel※1 FG consolidated initial revenue is an excerpt from GMO-FG’s disclosed financial results. ※12 Stock-type revenue is the sum-total of stock, fee, and spread revenues.

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

24

2.8.2

Offline・IoT

IoT payments such as
merchandise and beveragevending machines, parking fee
payment

Mobility payment

Use of payment data for DX/marketing

Hotel bill payment machine/
Self-checkout machines atretail stores/Unattended
payment machine such as‘smart stores’

Labor-saving by reducing payment related workflow

Cashless

Improve convenience by expanding cashless use cases

Drive society advancement and development through cashlessand IoT
Depopulation/
Aging Society/Labor
Shortage/Rural
depopulation

Decarbonisation

Inbound

Smart
City/Regional
Revitalization

Real x Digitalconvergence

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

25

Global2025 OP Target¥3.0 bn～2.9.1 Global: Overseas Investment Strategy

Respond to changes in external environment, balance
investment, purpose and returns
CapitalTrend of FinTech startup valuation
PSR

Divestmentcompleted in（¥ Bil）
March
100

Divestmentcompleted in
April (partial
ownership)

Equity ratio ※ 31.2%

25.2%

80

22.1%
60

Divestmentcompleted in
June

Divestment

×30

a-

35%
×20

Divestment
impact30%
upto cumu. Q3
Cash increase ≒¥24.3 bn
25%on saleGain≒¥16.4 bn
Increase in retained
earnings≒¥14.9 bn
20%

Investment

×10

×0

2010

5%

Retained Earnings

22

Equity

Debt

~25

~30

Biz
Alliancea - High

20

End Q1End Q2
FY2022
FY2022
Non-controlling interest

21

15%

10%

0

cCapital use
Pursue investment into growthdomains while emphasizing
capital efficiency

Policy on Invesment Approach
Valuation

40b-b - Mid

Minorityc - Low Super minority
Majority0%
End Q3
FY2022Other items of equity
Capital/Capital Surplus/Treasury StockStrengthen business (PL)Strengthen BS (BS）Non-financial assets of innovation and ESG※ Equity ratio = Equity attributable to owners of parent ÷ Total asset.

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

26

2.9.2 Global: 20-year Trend of Overseas Investment Strategy

From payment processor to credit provider: key shift of functionin India and Pacific region
Expanding market in Southeast Asia and India

Portfolio of major overseas borrowers/investees

8%※1

Penetration
rate

GMO-PG Asia Hub

B2C EC

TAM※2¥40 trn

6%

TaiwanHong Kong¥350 trn～

B2B EC

India
GDP
Approx. ¥400 trn
7-8% growth

Thailand
Phillipines

2022

Payment Service
ProviderMalaysia
NEW

2010

2030

Credit Provider

Singapore

Southeast Asia

Indonesia

GDP
Approx. ¥400 trn
5-6% growth

Emergence of high-growth FinTech
Image of FinTech unicorns supported by GMO-PG
5 companies

NEW

25～50 companies～

・・・

・・・

※1 Calculated using the private consumption expenditure and B2C EC market penetration rates for both the regions. ※2 Estimated by GMO-PG based on GDP outlook and C2C and C2B
EC market penetration rates for both regions

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

27

2.9.3 Global
Expand FinTech lending in a market where economic growthand DX acceleration converge
Revenue (Q3 standalone)

Loan Balance (End June)（¥ Mil）（¥ Mil）＋32.4%

10,000■ Lending to promising FinTech
company (completed in May 2022)＋38.2%

250

USA MSB−16.0%

※1

USA
＋7.4%

8,000

200

150

6,000

※2

OP
＋33.3%

Asia MSB＋66.4%

Singapore• Online trading for SME sector• Credit assessment using Big
Data and algorithms• Online application process,lending executed within 3 daysIndia
+884.1%

4,000

100

■Lending to promising AgriTech
company (completed in July 2022)
2,000

Indonesia
±0.0%

50

Asia Payment－9.7%

0Q3 FY2021

Q3 FY2022• Lending platform exclusively for
agriculture• Provide fertilizers and seeds, collectfunds from harvests

0
End of Q3
FY2021

End of Q3
FY2022※1 One-time revenue only recorded in Q3 FY2021. ※2 Excluding one-time revenue only recorded in Q3 FY2021.

• Improve collection by advisory
service based on data and onsite
visitsCopyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

28

3.

Sustainability

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

29

3.1

Sustainability: Financial Inclusion

Realize financial inclusion through lending to overseas
FinTech companies
Social Issues

Microfinance company
supporting the economic
empowerment of India’s
poorest strata

In rural agricultural areas with high poverty rates, many
people are unbanked and lack access to banking services
Value Proposition

Provides unsecured microloans to microbusinesses to its
over-500K clients (99% are women). Using smartphone
apps for swift and convenient financial services.
ImpactSupport escape from poverty and socio-economic
independence
Social Issues

Despite being a major agriculture nation, the bulk of
the farmers cannot receive loans

FinTech x AgriTech company
supporting Indonesia’s farmers

Value Proposition

A unique loan business model which provides seeds
and fertilizers and collects the funds from theharvested produce. Monitored by agricultural experts
using the data registered on the app.
ImpactSupport income increase and improved productivityof small-lot farmers
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

30

3.2 Sustainability: External Evaluation andInitiatives for Decarbonisation
Selected as constituent of ESG Index adopted by GPIF
※2

Index designed to measure theperformance of Japanese companies
that demonstrate strong
Environment, Social and Government(ESG) practices in each sector;
designed by FTSE Russell.

GHG Emissions※4（t-CO2）2,000

Scope 2 (zero emissions in Scope 1)
1,883
1,736

1,600
※3

Part MSCI’s ESG index and represents theperformance of Japanese companies thatare leading in promoting and maintaining 1,200
gender diversity, selected from the top
700 Japanese companies by market
capitalization (constructed using MSCI
800
Japan IMI Top 700 Index)
And ESG index by S&P and TSE, thatmeasures performance of companies
by under/over weighting companies
based on environmental disclosure,level of carbon efficiency levels, etc.

※1

1,559

Commenced
payment processing
using de facto
renewable energy

Achieve zero Scope
1 & 2 emissions by
FY ending
September 2023

400

0
19/9
20/9
21/9
23/9E
※1 GPIF: Government Pension Investment Fund
※2 As a result of evaluation by a third party, FTSE Russell (registered trademark of FTSE International Limited and Frank Russell Company) hereby certified that GMO Payment
Gateway, Inc. satisfies the criteria for inclusion into the FTSE Blossom Japan Sector Relative Index and will be a constituent on of this index. FTSE Blossom Japan Sector RelativeIndex is widely used for sustainable investment by investment funds and for creation and evaluation of other financial products.
※3 The inclusion of GMO Payment Gateway, Inc., the use of MSCI logo, trademark and service mark is not an endorsement, support or promotion of GMO Payment Gateway, Inc.
by MSCI or it related parties. MSCI index is an exclusive intellectual property of MSCI. The use of the term MSCI Index, and its logo is the service mark or trademark of MSCI and its
related parties.
※4 Aggregate of electric power consumption at the major companies in the GMO-PG consolidated group of subsidiaries. Scope1: emission sources that are owned or controlled by
the company, Scope 2: indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling.

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

31

4. Financial Highlights and Reference Materials

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

32

4.1.1

Balance Sheet Changes

Financial soundness is strengthened from divestments
Asset（¥ Mil）

265,435（¥ Mil）

Liabilities/Equity
265,435

250,000

250,000

215,455
200,000

192,022

104,523
150,000

215,455
Divestment
117,166 impact up 200,000
to cumu. Q3＋24,360
150,000

95,83078,251

28,82150,0000Prov. forProv. for 80,966
70,479Prov. fordoubtful
57,779 doubtful
doubtfulaccounts
accounts
accounts－2,574－2,722－3,157
14,2689,590
9,852
End Q4 FY2021
End Q2 FY2022※1
Investment related
MSB related※2

50,0000

End Q4 FY2020

Other

Cash & Equivalen

19,65725,741
100,000

30,59929,98286,75153,033100,000

87,322

192,022

19,59315,15818,89018,021
16,814
18,931
18,050Equity33,453 ratio
16.5%
End Q4 FY2020

EquityBonds

21,30022,243Equity57,820 ratio
25.9%
End Q4 FY2021

MSB related
Other ※2

Divestment
impact up to
cumu. Q3
(retained
earnings)＋14,91784,930 Equity
ratio※431.2%
End Q3 FY2022

Borrowings
Merchant deposits ※3※1 Securities classified under investment securities and investment accounted for under the equity method.
※2 MSB Related Asset = Lease assets, Short term loans, Advances paid, Accrued revenue (net of provision for doubtful accounts). MSB Related Liabilities = Accrued expenses※3 Deposits received from merchants under the Representative Contract.. ※4 Equity ratio is total equity attributable to owners of parent divided by total assets.
※5 Some figures are shown in net amounts of financial assets and liabilities.

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

33

4.1.2Major Financial Indicators

Strengthened equity base with the expansion of MSB
J-GAAP
Pretax profit to total assets (ROA)

300

Return on equity using profit attributable to owners of parent (ROE)40%（¥ Bil）

千

45%

IFRS

Third party allotment
Raised ¥8.0bn

Total assets

Euro Yen CB Due2026
Raised ¥21.1 bn

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

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

35%

250

Euro Yen CB Due 2023
Fully converted

30%

31.2%

25%

25.9%

20%

200

150

ROE Baseline

20.1%

15%

100

10%

6.5%

50

5%

0%

0
End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4FY2010FY2011FY2012FY2013
FY2014FY2015FY2016FY2017FY2018FY2019FY2020
FY2021※For figures before FY ending September 2017 are based on J-GAAP standards. As such, total assets refers to assets, equity refers to net assets and total equity attributable toowners of parent to total assets refers to equity ratio, return on total assets using profit attributable to owners of parent refers to ordinary profit to assets ratio, and return on equity
using profit attributable to owners of parent (ROE) refers to net profit to equity ratio.
※ Adopted IFRS accounting standards from FY ending September 2018. The figures for FY ending September 2017 are restated on the same basis.

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

34

4.2.1

Consol. Revenue Waterfall Chart (Q3)

Consol. revenue grew 21.1% from the increase in offline andnon-merchandise payments（¥100 Mil）

GMO-FG

GMO-PG

GMO-PS

GMO-EP

BNPL

SME
domain

億

130

120

Merchandise EC

BaaS
Support

MSB

Other

Nonmerchandise EC

110

Offlinepayment
100

90

0

Q3 standalone
FY2021Q3 standalone
FY2022
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

35

4.2.2 OP and Pre-tax Profit Waterfall Chart (Q3 Cumu.)
Pre-tax profit grew 189.8% from gain on sale ofoverseas investment activities , etc.
OP YoY: waterfall chart（+25.1% YoY）（¥ Mil）

Pre-tax profit YoY: waterfall chart（+189.8% YoY）

Gain on salesof equity
method affiliate＋16,419 30,500

SGA
GP
Other
increase increase revenue Other＋3,832 －1,281 increase expense
increase＋26－12 12,788

10,222EquityFinancial Financial method
income expense profitOPincrease increase increase－23 ＋111
increase＋900・ Ad expense－204
・ Increase in prov. for doubtful
accounts－373
・ Cost increase from other biz
expansion

・ CoS ratio increase
・Revenue increase

Q3 Cumu.
FY2021 OP（¥ Mil）＋2,565・Gain on sales pf allshares of 2C2P Pte. Ltd

10,526・ Increase in gains on inv.
partnerships＋78※ from US, India FinTech
・ FX gain increase＋756・ Interest income increase ＋ 64

－571
＋4,404Q3 Cumu.
FY2022 OP

Q3 Cumu. FY2021
Pretax Profit

Q3 Cumu. FY2022
Pretax Profit※ The “+” and “-” sign denote the direction of the impact to operating profit and pretax profit.

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

36

4.3.1

Revenue by Business Model (Q3 Cumulative)

Solid stock revenue from expansion of processing platform（¥ Mil）
40,000Spread36,95635,00030,00030,53525,00015,96614,181

9,823

20,00015,000

7,942

10,0005,836

Offline payment
Overseas lending
Early Payment service
Online payment
GMO Payment After Delivery＋23.7％ YoY＋ Online payment＋ Offline payment－ Remittance service－ GMO Payment After Delivery
Stock

4,850

5,000

＋
＋
＋
－
－
Fee

5,329

3,560

＋12.6％ YoY＋20.3％ YoY＋ Processing platform＋ Offline payment＋ GMO-MR0
Q3 cumu. FY2021

InitialStock

Q3 cumu. FY2022

Fee

InitialSpread＋＋49.7％ YoY

Offline payment terminal sales※ The “+” signs indicate services with growth rates that are higher than 25% or if thegrowth rate is higher than the business model; the “-” indicates growth rates that are lower.

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

37

4.3.2

Quarterly Trend of Revenue by Business Model

J-GAAP

IFRS（¥ Mil）
5,500

5,371

5,000

4,808

4,500

4,290

4,000
3,646
3,450

3,500

3,289

4,665

4,707

2,432

2,500

2,557

2,671

4,414

3,672

3,364

2,000
1,406
1,500

2,532
2,382

1,520 1,661

1,846

1,812

1,825

1,265

1,000
749
324

791
247

828

889

1,221

1,236

1,261

2,559

2,083

1,937

1,359

1,411

296

316

323

362

19/2Q

19/3Q

19/4Q

1,478

1,522

2,669

3,395

2,922
2,037

1,851
1,723
1,717
1,754 1,484
1,610 1,552

1,947

2,166

1,678

876

725

659
389

1,460

2,713

3,278

1,131

919
561

386

2,527

1,767

1,179

500

3,149

2,815

1,906

5,297

4,731

3,135
3,000

5,296

489

506

20/3Q

20/4Q

0
17/4Q

18/1Q

18/2Q

18/3Q

18/4Q

19/1Q

Initial

Stock

20/1Q

20/2Q
Fee

21/1Q

21/2Q

21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

Spread※ Online advertising service (stock) and finance lease (spread) revenues are recognized as a net amount with the IFRS adoption rather than the gross method from FY Ending September 2018
The figures for revenues by business model present the continuing operations only and exclude MACROKIOSK, due to its deconsolidation in May 2020.

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

38

4.3.3

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

IFRS

J-GAAP

55,00050,00045,00040,000Spread35,00030,00025,000Fee

20,00015,00010,000

Stock

5,000

Initial

0
04/9
05/9
TSE
Listing

06/9

07/9

08/9

09/9

10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

21/9

22/9E

※ Online advertising service (stock) and finance lease (spread) revenues are recognized as a net amount with the IFRS adoption rather than the gross method from FY Ending September 2018
The figures for revenues by business model present the continuing operations only and exclude MACROKIOSK, due to its deconsolidation in May 2020.

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

39

4.4

Segment Results (Q3 Cumulative)

Steady progress in all segments towards full year guidance
Segment Revenue＋21.0％ YoY（Consol.）（¥ Mil）

Segment Profit＋25.1％ YoY（after consol. adjustments)（¥ Mil）

36,95635,00030,53530,000＋34.8％ YoY

17015,000＋ Strong GMO-MR＋ Growth of online advertising

531
8,414

7,558

25,000716＋11.3％ YoY

86

12,78812,000+ Growth in overseas lending－ Hard comps from COVID windfall
for GMO Payment After Delivery 9,000＋ Strong GMO-MR＋ Growth of online advertising

2,061

10,222
1,689＋96.2％ YoY＋22.0％ YoY＋ Growth in overseas lending－ Hard comps from COVID windfall
for GMO Payment After Delivery

20,00027,84615,00013,524＋24.0％ YoY

11,0466,000＋ Expansion of offline payment＋ Growth of non-merchandise domain

22,454＋22.4％ YoY＋ Expansion of offline payment＋ Growth of non-merchandise domain

10,000
3,000
5,000

0

0

Q321/3Q
Cumu.
FY2021

Q322/3Q
Cumu.
FY2022

Payment Processing Business

Q321/3Q
Cumu.
FY2021

Money Service Business (MSB)

Q3 22/3Q
Cumu.
FY2022

Payment Enhancement Business

Operating Profit

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

40

4.5.1

FinTech: Assets & Profit Growth (Q3 standalone)

Steady profit trend from expansion of high margin services
MSB related assets (end-Jun.)

Segment revenue（¥ Mil）（¥ Mil）+19.6％

80,000＋8.5％＋11.4％

2,500

Segment profit－15.9％（¥ Mil）（% YoY)＋15.8％

600+13.5％＋19.3％
60,000

2,000
400
1,500

40,000+8.4%＋15.9％

1,000
200

20,000500＋38.2％+7.8%

0
End Q3 FY2021＋11.1％＋22.1％＋36.8％

0
Q3 FY2021

End Q3 FY2022

Lending (domestic)

Lending (overseas)

B2B Factoring

Finance Lease※20

Q3 FY2022

Q3 FY2021

Early Payment

GMO Payment After Delivery

B2B AR Guarntee※2

Condo Pay

※2

Q3 FY2022

Remittance※2
Instant Salary byGMO※1 Figures for GMO Payment After Delivery relatd assets (accrued revenues) is net of allowance for doubtful accounts.
※2 The % YoY figures for finance lease, B2B AR Guarantee, Condo Pay are not displayed.

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

41

4.5.2

FinTech: Assets & Profit Growth (Q3 Cumulative)

Steady profit trend from expansion of high margin services
MSB related assets (end-Jun.)（¥ Mil)+19.6％

80,000

Segment revenue（¥ Mil)＋8.5％

Segment profit＋11.3％－34.4％

8,000（% YoY)（¥ Mil)+22.0％

2,000

+8.7％
＋19.3％
60,000

1,600
6,000

1,200
40,000

+7.3%

4,000

800

＋15.9％
20,0002,000
400＋38.2％+7.8%

0
End Q3 FY2021

End Q3 FY2022＋18.7％+66.3％＋19.9％

0
Q3 Cumu. FY2021

0

Q3 Cumu. FY2022

Q3 Cumu. FY2021

Lending (domestic)

Lending (overseas)

Early Payment

GMO Payment After Delivery

B2B Factoring

Finance Lease※2

B2B AR Guarntee※2

Condo Pay

※2

Q3 Cumu. FY2022

Remittance※2
Instant Salary byGMO※1 Figures for GMO Payment After Delivery assets (accrued revenues) is net of allowance for doubtful accounts.
※2 The % YoY figures for finance lease, B2B AR Guarantee, Condo Pay is not displayed.

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

42

4.6.1

Quarterly Trend of CoS and SGA Ratio

CoS ratio fluctuates with changes in revenue mix※(¥ Mil)12,897
11,857

12,000
9,356

36.1%

10,000

35.5%
36.6%

35.4%

7,945

7,295

9,030

36.7%
8,623

8,160

8,246
8,000

42.7%

41.2%

37.6%

41.1%

7,769
36.4%

35.2%

32.7%

35.9%

9,767
8,927

26.7%

27.9%

10,646

37.5%
34.8%

40.0%
34.6%

33.8%
35.8%

28.8%
32.6%

31.3%

4,000

3,098
2,997

3,004

2,581

2,791
2,807

2,664

2,646

3,181

2,986

2,818

3,433

3,174

3,813

3,872

2,488

2,817

2,302

3,522

3,169

3,466

33.4%

31.1%

4,169
3,292

34.7%

33.0%

6,000
3,720

50.0%

11,132
10,121

36.8%

35.2%
33.3%

39.6%

12,201

3,982

3,599

30.7%
4,075

4,108
3,684

4,021

30.0%

3,959
4,469

20.0%

10.0%
2,000

0

0.0%
18/4Q

19/1Q

19/2Q

19/3Q

19/4Q

Revenue

20/1Q

20/2Q

Cost of sales

20/3Q

20/4Q

SG&A

21/1Q

21/2Q

21/3Q

CoS ratio

21/4Q

22/1Q

22/2Q

22/3Q

SGA ratio※ Figures only present the continuing operation from Q3 FY2020 and onwards and exclude MACROKIOSK (reclassified as discontinued operation) due to its deconsolidation in May 2020.

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

43

4.6.2

CoS/SGA Ratio of GMO-PG & GMO-EP(Quarterly Trend)

Cost of sales ratio for online payment business trending stably(¥ Mil)

7,906

8,000
47.4%

44.8%

7,000

45.2%

6,709

6,858

6,878

50.0%

7,122

6,370

41.2%

6,110

6,000

5,126

36.8%
5,032

5,000

7,977

7,682

5,142

33.1%

4,840

36.5%

4,816

4,663

40.0%

41.6%

5,271

39.7%
34.2%

33.3%

32.5%

4,000
23.0%
20.7%

21.0%

20.9%

20.7%

20.9%

21.2%

20.2%

21.0%

20.5%

22.1%

31.6%
21.5%

32.5%

32.9%

29.4%

19.3%

20.5%

19.5%

22.6%

2,932

3,000
2,212

2,649

2,253

2,319
1,783

2,000
1,071

1,043

1,592

1,016

1,005

1,000

1,874

1,065

2,665

1,984
1,800

1,069

1,117

1,235

1,339

1,373

20.0%
2,495

2,286

2,177

1,517

1,478

30.0%

1,609

1,483

2,603

1,616

2,345
1,553
10.0%

0

0.0%
18/4Q

19/1Q

19/2Q

19/3Q

Revenue

19/4Q

Cost of sales

20/1Q

20/2Q

SG&A

20/3Q

20/4Q

CoS ratio

21/1Q

21/2Q

21/3Q

SGA ratio

21/4Q

22/1Q

22/2Q

22/3Q

1-yr moving avg. SGA ratio※ Figures are before consolidated eliminations.

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

44

4.7.1

Operating Stores, TRX Volume and Value(Quarterly Trend)Group-wide annual TRX value reaches approx. ¥10.4 trillion※1

Operating stores 138,119 stores, consol. TRX volume approx. 1.25 bn, consol. TRX value approx. ¥ 2.9 trillion（Stores）
160,000（¥ Tri）
2.2
140,000

2.0
1.8

※2

14
（100 miltransactions）(Reference 1) Online payment TRX volume approx. 1.15 bn, TRX value approx. ¥2.2 tr(Reference 2) Annual consol. TRX value approx. ¥10.4 tr
Excluding GMO-FG
approx. ¥8.2 tr

12

1.6
120,000 1.4
1.2

10

1.0

100,000 0.8
0.6

8

0.4
80,000 0.2
660,000

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

40,000

4

2

20,0000

0

Recurring billing TRX Volume

Pay-as-you-go billing TRX volume

Chg in payment processing at a large merchantOperating stores

TRX Value※1 Figure exclude a operating stores of a specific merchant. Figures exclude the stores related to a large delivery company from Q1 FY2017. If included, operating stores would be427,446 (up 56.6% YoY). ※2 Operating stores are measured on an end-of-quarter basis. Figures for GMV value and volume are the total for the respective quarter. ※3 The graph isbased using only online payment figures. ※4 The standards for calculation the number of operating stores has been revised from Q2 FY2022. Figures from Q3 FY2015 have been
retroactively adjusted on the same basis.

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

45

4.7.2

TRX Volume and Value (Quarterly Trend)

TRX volume and value continues its robust growth; bothoffline and online trended strongly＋39.3％ YoYConsol. TRX Volume（Mil transactions)
1,200

Consol. TRX Value＋42.8％ YoY（¥ Bil)Online payment
Offline payment

2,500

1,000
2,000
800
1,500

600

1,000

400

500

200

0

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

Offline payment（GMO-FG）
Online payment＋114.0%＋34.6%（Breakdown）Digital content・Telecom+41.2%
Utility+134.0%Membership/Service usage +163.4%

19/4Q20/1Q20/2Q20/3Q20/4Q21/1Q21/2Q21/3Q21/4Q22/1Q22/2Q22/3Q※
Offline payment （GMO-FG）
Online payment＋111.9%＋28.9%（Breakdown）+47.7%+129.3%+128.9%

Digital content・Telecom
Utility
Travel・Ticket※ Excludes the offline payment of GMO-PG (GMO Cashless Platform).

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

46

4.7.3

Scatter Chart of Major Merchant Sectors

Sector diversification achieves both stability and growth■Revenue proportion by sector (vertical axis)/Revenue growth rate (horizontal axis)
30%

Size of circle denotes the sizeof TRX value
25%（Based on Q3 FY2022 standalone）

Proportion of revenue

Digitalcontent・
Telecom

20%

15%

Cosmetic/
10%Health foodApparel5%

Food &
Beverage

Utility
C2C

Daily goods/
Office supplies

0%
-5%

5%

Insurance

15%

25%

Delivery・Newspaper
35%

45%

Travel・
Ticket55%

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

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

47

4.8.1

Consolidated Cashflow Statement
Q3 FY2022 changes by item (¥ Mil)（¥ Mil）

J-GAAP

55,000Operating CF：＋8,591
Pretax profit+30,500
Gain on sale of equity method
affiliate−16,419
Advances paid
−5,043
Accrued revenue－5,540Accrued expense＋3,522
Deposits received＋8,146
Income taxes－5,210IFRS

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

20,000＋1,776

Sales of inv. securities ＋24,360
Deposits to subsidiaries andaffiliates－16,500

15,00010,0005,000

Financing CF：＋1,087
Increase in ST borrowing ＋6,300
Dividends paid
－4,4710-5,000-10,000-15,000
13/4Q

14/4Q

15/4Q

Operating CF

16/4Q

17/4Q

Investing CF

18/4Q

19/4Q

Financing CF

20/4Q

21/4Q
FCF

22/3Q

FCF
：
＋10,368
Cash & Equivalents: 117,166
Mainly 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.

48

4.8.2

Changes in the Consolidated CF Statement

Following factors affect operating CF other than the pretax
profitRelated Liabilities & Assets
Impact from business expansion
Payment Processing Business
Sales proceeds frommerchants under
Representative Contract

Deposits received(liability)

Liability

Operating CF

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

Money Service Business
Early Payment service

Advances paid
(asset)Asset

Operating CF

BNPL service

Accrued revenue(asset)Accrued expense(liabilities)

Asset

Operating CF

Liabilities

Operating CF

Others

Deposits to subsidiaries
and affiliates (asset)

Asset

ー

Investing CFーFunds that are temporarily deposited into the CMS of
GMO Internet Group, which can be withdrawn at any
time depending on cash requirements.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

49

4.9

New Business Model and Issues in the Retail Sector

Pursue payment support to clients seeking to transform theirbusiness model
Change in environment

IssuesMacro-economic changes

Issues surrounding themanagement themes• SC disruption/constraints• Surging energy/raw material

prices

2. Structural reform of SC
3. Business model reform• Rise in labor cost

4. DX
5. Sustainability• Entrenchment of online use• Penetration of new values• Unequitable recovery

A. Evolution of store/sales model

1. Labor saving• Deepening labor shortage

Consumer
behavior/Changes in
consumer mindset

Vector of business model transformation

Labor saving at cell-store operations
Smart payment and accounting
・Self checkout/smart checkout
・Smart shopping cart
・Grab&Go
・Auto-payment using digital pricetags
OMO of customer experience
Evolution of store experience
Capturing the last mile

Personalization by leveraging data
Optimize sales promo offers usingpurchase history
B. Structural changes in value chain
C. Acquire new revenue sources
D. Response/compliance to SDGs

※ Compiled by GMO-PG by referencing METI and BCG’s report on business related to commercial transactions and service environment optimization (survey on international trends inretail sector).

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

50

4.10

Launch of “fincode byGMO”

Support the growth of future leading companies
Background
Increase in startups fromthe expansion of online
economyIssues in the payment
domain faced by startups
Implementation takes time due
to being non-core
Lack of functionality revealed
after onboarding
Diversified payment and billing
methods

Changes in laws/regulations
and security standards
Making inroads into new domains
by leveraging GMO-PG and GMOEP’s know-how and development
capability

ああ“Start small, grow large”
Value proposition that understands thebusiness characteristics of startups
Simple procedures forservice start
Ease of onboarding

High scalability matching
the growth phase

Ample development
support assets
High frequency of
updates
Subscription/platform
management function

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

51

あThank
り が とYou
う ごVery
ざ い Muchました

GMOペイメントゲートウェイ株式会社
GMO Payment Gateway, Inc.
(3769;
Stock
Exchange
Prime)( 東 証Tokyo
プラ
イム
376
9)
IRサイトURL
https://www.gmo-pg.com/corp/
URL： https://www.gmo-pg.com/en/corp/
お問合せ・個別取材のお申込みは、企業価値創造戦略
統括本部
For inquiries, please contact our IR team at the
telephoneIR部までご連絡ください。
number below:
Corporate Value Creation
Strategy Division (IR Department)
TEL：03-3464-0182
TEL: +81-3-3464-0182
E-mail：ir-contact@gmo-pg.com
E-mail：ir-contact@gmo-pg.com

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