Financial Results Briefing
for Q2 FY2023

Solid Growth Driven by Advancing Our Strategies
with a View to Normalization of Economic Activities

May 12, 2023
73rd Investor MeetingSafe Harbor Statement

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 12, 2023.
Please note that the contents are subject to change without priornotice in 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
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 good & office supplies and CtoC, etc.
: Digital content & telecommunication, utility, travel & ticket, insurance,
membership fees & services, etc.
: Platform: Money Service Business: Banking as a Service

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

2

アジェンダ1 Summary of Financial Results for Q2 FY2023
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 FY2023

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

4

1-1 Summary of Consolidated Results
Outperformed plans from balanced business mix and expense control（¥ Mil）

H1 FY2022
ActualH1 FY2023
Actual% YoY

H1 FY2023
Guidance(Achievement %)Q2 FY2023
Standalone(% YoY)

Revenue

24,05930,454＋26.6%

28,491(106.9%)Gross Profit

16,353

19,609＋19.9%－

Operating
Profit8,276

10,350＋25.1%

10,330(100.2%)5,260(＋26.4%)Pre-tax
Profit

8,691

9,856

＋13.4%

9,648(102.2%)

5,169(＋17.7%)

5,518

6,129

＋11.1%

5,952(103.0%)3,681(＋22.7%)9,300

11,509＋23.8%－

5,852(＋24.8%)

Profitattributable toowners of parent

EBITDA*1

Operating Stores(end-Q2 FY2023)*2*3

KPI (% YoY)

160,721 (＋19.9%)

15,641(＋28.2%)
9,818(＋20.0%)Consol. TRX Volume(Q2 FY2023 Standalone)*2*4

Consol. TRX Value(Q2 FY2023 Standalone)*2

Approx. 1.48 bn (＋28.7%)

Approx. ¥3.6 trn (＋36.3%)

o.w., online approx. 1.35bn (＋25.7%）

o.w., online approx. ¥2.7 trn(＋24.6%)*1 Sum total of operating profit and depreciation. *2 Operating stores figure is for GMO-PG and GMO-EP. 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 calculation the number of operating stores has been revised from Q1 FY2023. Figures
exclude a specific case and fincode byGMO. If figures for the specific case is included, the number of operating stores for the same period would be 539,093 stores, up 35.6% YoY. *4 TRX 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 or actual proceed amount, and one transaction per payment in thecase of offline.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

1-2-1 Waterfall Chart of Consol. Revenue (Q2 standalone)
Non-merchandise and offline grew 28.2%, but merchandise domain
headwinds continue
Consol.
GMO-PS*1 GMO-EP*1＋20.5%＋0.3%（% YoY）

GMO-PG*1＋20.1%

Consol. GMO-FG*1＋72.0%（¥ bn)

Consol.
revenue＋28.2%
Other

16¥15.6 bn

15

Payment After Delivery
Rate revision, large merchantacquisition, etc.

14

MSB ＋21.2%
BaaS Support +10.4%

13

Merchandise EC ＋10.1%
Strong growth at large merchant andfood & beverage, etc.

¥12.2 bn

Non-merchandise EC ＋25.4%

12Growth of utilities, GMP*3 , travel/ticket, etc.

Stock-type*2 ＋61.8%

11

Operating terminals and pickup ofoffline consumption, etc.

Initial*2 ＋76.8%

10Strong payment terminal salesincl. to large customers

0
Q2 FY2022

Q2 FY2023*1 The figures for all the companies stated above are amounts before eliminations and consolidated adjustments. GMO-FG Consol. includes GMO-FG and GMO-CAS. GMO-EP Consol. includes GMO EP and
GMO-MR.
*2 Initial and stock-type revenue (sum total of stock, fee and spread) is after consolidated eliminations. *3 GMP stands for Global Major Player.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

1-2-2 Waterfall Chart for Consol. OP and Pre-tax Profit (Q2 Cumulative)

OP grew 25.1% from controlling expenses despite a one-time expense
and increase in provisions for doubtful accounts
Pre-tax Profit Waterfall Chart (+13.4% YoY)

OP Waterfall Chart (+25.1% YoY)
GP
SGA
increase increase Other
Other＋3,255 －1,177 revenue expense
increase increase－19＋15（¥ Mil）

10,350（¥ Mil）

Financial Financial
Equityincome expense
methodOP increase decrease increase－841 profit＋2,074－88
decrease
＋21

8,691

8,276

・FX loss －526 mil
・Loss on inv.
partnerships－287 mil・Increase inprovision for doubtful
accounts －331 mil
・ One-time expense－750 mil・Interest income＋390 mil・Decrease in FX gains －255 mil
・Gains on inv. Partnerships
recorded in the previous term
－247 mil・CoS increase－1,099 mil・Revenue increase +4,355 mil

22/累2Q
Q2 Cumu.
FY22
営業利益
OP

9,856

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） Q2 Cumu.
23/累2QFY23
営業利益

OP

Q2 Cumu. FY22
Pre-tax Profit

Q2 Cumu. FY23
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
Revenue increased 20.1% and OP increased 32.4% from expansion of
non-merchandise EC
GMO-PG Non-consolidated Revenue & OP*1

BaaS Support revenue (left axis)
Non-merchandise EC revenue (left axis)

6,000

Q2 FY23＋17.6%＋20.1%

Merchandise EC revenue (left axis)

7,000

OP (right axis)

Online payment＋15.2%
Merchandise EC+1.7%
Apparel－38.7%
Food & Beverage＋28.1%
Cosmetics, Health food
＋8.5%
Non-merchandise EC＋25.9%
Digital content/Telecom ＋18.1%
Utility＋21.1%
Travel & Ticket＋47.7%＋19.4%＋10.1%－2.1%＋22.5%＋4.3%＋25.4%＋15.5%＋35.2%＋55.9%

5,000
6,000

5,000

4,000

4,000
3,000

BaaS Support＋40.6%＋10.4%MSB
Remittance service
Early Payment service
Overseas lending*2＋11.3%＋8.0%＋40.3%＋74.1%＋21.2%＋20.3%＋18.3%＋25.8%＋25.6%＋32.4%

Revenue
百万

百万

Q2 FY22

MSB revenue (left axis)（¥ Mil）

3,000
2,000
2,000

1,000
1,000

0

0
21/2Q

21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

Operating Profit

23/2Q*1 Figures for revenue and operating profit are before consolidated eliminations. Figures for BaaS Support is the sum total of Ginko Pay and Processing Platform.
*2 Figures show the consolidated revenue for overseas lending. Calculated by excluding one-time revenues recorded before the previous term. PG non-consol. would be +40.2% YoY for Q2 FY2022 and －8.8%
YoY for Q2 FY2023.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

8

1-3-2 Performance of GMO-EP, GMO-PS and GMO-FG
Under the sluggish merchandise EC market, GMO-FG grew strongly
while GMO-EP and GMO-PS remains challenging
Consol. GMO-EP*1*2(% YoY)Q2 FY22Q2 FY23

+7.7%
+4.2%

＋0.3%
－0.4%

RevenueOP(¥ Mil)

GMO-PS*2

Revenue

RevenueOP（stores） (¥ Mil)

Consol. GMO-FG*1*3
Q2 FY22Q2 FY23+7.9%－12.5%＋20.5%－50.5%

Revenue

Q2 FY22

RevenueOP（stores） (¥ Mil)Q2 FY23+52.0% ＋71.8%+3.0% ＋120.5%
Revenue

5,000Operating stores *460,0002,500

Operating stores

200

Operating stores

1,500（units）
300,000

4,000

2,000
150

200,000

40,000
1,000

3,000

1,500
100

2,000

1,000

500

100,000

20,000
50
1,000

500

0

0

Missed targets despite progressing on
new initiatives; high OP margin
maintained from focusing on cost
efficiencies

00

Revenue increased from commission
rate revision; acquired several large
merchants but profits declined fromhigher credit costs

00Increase in payment terminal sales tolarge clients; stock-type revenue*5
grew 61.8% from growth of TRX
volume and value*1 GMO-EP Consol. includes GMO EP and GMO MR. GMO-FG Consol. includes GMO-FG and GMO-CAS. *2 Figures are before GMO-PG consolidated eliminations. *3 Figures are taken from GMO-FG’sconsolidated financial results. *4 Figures present the number of B2C EC merchants. *5 Stock-type revenue (sum total of stock, fee and spread) is after GMO-PG consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

1-4 Revenue by Business Model (Q2 Cumulative)
Fee revenue grew 33.3% from continued growth of TRX volume in theutility and offline
Factors*% YoY
Q2 Cumu. Q2 Cumu. Q2 Cumu.
FY21
FY22
FY23

(¥ Mil)30,45430,00025,00024,059Spread ＋29.4%＋12.6% ＋13.3%＋ Online payment (PG)
－ Online payment (EP)－ GMO Payment After DeliveryFee＋31.1%＋21.9% ＋33.3%＋ Offline payment* Special factor: rate revision of
GMO Payment After Delivery

Stock＋13.1%＋21.3% ＋19.2%＋ Processing Platform＋ Offline payment＋ Development of online payment－ Online advertising service

Initial＋45.1%＋57.5% ＋66.8%＋ Terminal sales expanded fromlarge projects

12,08320,000

10,66815,0008,568

10,000

6,428
4,526

5,000

3,799
5,275

3,163
0
Q2 Cumu. FY22

InitialStock

Q2 Cumu. FY23

Fee

Spread* The “+” signs indicate services with growth rates that are higher than 25% or if the growth rate 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.

10

1-5 Segment Results (Q2 Cumulative)
All segment revenue continued to increase, but margins declined fromone-time costs and higher credit costs
Segment Revenue

Segment Profit% YoY
Q2 Cumu.
FY22(¥ Mil)＋21.0% ＋26.6%

30,45430,000Q2 Cumu.
FY22(¥ Mil)＋25.5% ＋25.1%

10,35012,00024,059515＋32.9% ＋12.7%

8,276
10,000

1,479

113

100

1,448

＋ GMO-MR

5,669＋11.3%＋ Remittance＋ GMO Payment
After Delivery

15,00023,07010,000＋21.3%＋24.2%＋28.5%＋24.8% ＋ 2.2%

8,000

＋ Remittance－ GMO Payment After
Delivery credit cost
increase

6,000

10,3414,000＋ Offline payment＋ Non-merchandise EC

17,9510＋22.0% ＋17.5%＋ Offline payment＋ Non-merchandise EC－ Excl. one-time
cost＋26.0%

8,803

2,000

5,000

＋72.2% ＋13.4%＋ GMO-MR

457
20,000Q2 Cumu.
FY23＋ Expense control

6,879
25,000Q2 Cumu.
FY23

% YoY

0
Q2 Cumu. FY22

Q2 Cumu. FY23

■ Payment
Processing
Business
決済代行事業
金融関連事業■ Payment
Enhancement Business
決済活性化事業

Q2 Cumu. FY22

■ Money Service Business

Q2 Cumu. FY23■
■決済代行事業
Payment Processing■ 金融関連事業
Business
Payment
Enhancement
Business■■決済活性化事業
Payment Enhancement
Business■ Money Service Business
Operating Profit (after eliminations)

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

11

2 Growth Strategy and Initiatives in Focus Areas

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

12

2-1 Strategy by Customer Segment
Maximize revenue by deploying strategy that aligns with the needs ofeach customer segment
Customer segment matrix
Customer/User

Individual
Mass market

Improved
convenience
Financial inclusion

Corporate

Cashless (broader EC)

2-3

Cashless (offline)

2-5

Industry specific PF（High Value）
BaaS/EF*2

GMO Payment After
Delivery
Instant Salary byGMO

2-6

Instant Salary byGMO

2-3
2-4
2-2

Enterprise
Local governments
Financial Institutions
Reforms in businessprocesses/commercial flow

2-2

BtoE*1 ¥225 trn

GtoC*1 ¥110 trn

Strengthen eco-system
Regional revitalization

CtoC ¥2 trn

Community
Regional
revitalization

Stable coin(digital local currency)

Mobile voucher platform

BtoC ¥300 trn

SME
Sales efficiency (High Volume）
Startups
GMO B2B Pay on Credit

Revenue expansion

fincode byGMO
Global

*1 G (Government), E (Employee)

BtoB ¥ 1,000 trn

Agile business expansion
2-7*2 EF stands for Embedded Finance.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

2-2 Entered into Digital Salary Payment Domain
Develop the B2E Market to Address Huge Money Flows That Lies
Outside the B2C Market
GMO-PG’s strategy

・Promote digitalization of money flow in the B2E domain such as salary prepayment and salary remittance・Expand business by collaborating with partner companies on HR operations
Staffing
Recruit

Payroll
calculation

HR systems
Development

Employeebenefits

Evaluation

Payroll
calculation

Salarypayment

Digital money
issuers

Insurance,
Securities

Consumption/payment

Investment

Develop new business

Market opportunity
・Deregulation of digital salary payment from April 2023
IndividualCompany
BtoC: Expansion of cashless payment in consumption

B2B

BtoE: Changing money flow of salary, such as instant payment,
installment payment, etc.

Company

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

14

Broader EC OP target:
2025 ¥18.0～¥22.0bn

2-3 Broader EC: Target Markets

Address each vertical in the vast white space
Merchandise/Non-merchandise
EC revenue*1 (Quarterly)% YoY(¥ Mil)6,000

Merchandise EC

Broader EC: cashless penetration by industry (credit card usage)
MerchandiseEC ¥13.2 trn

Over 25% revenue
growth*2

Narrowly-definedEC ¥20.7 trn

Non-merchandise EC

Market size by industry*3

Total＋19.4%

5,000

Broader EC¥xx trn

TravelCashless penetration*3
64%¥17 trn

Electric power, gas,water
¥15 trn

Merchandise
EC ＋10.1%

4,000

Healthcare¥5 trn32%
24%

Real estate (Rent)¥12 trn

18%

Local/national
taxes¥111 trn

16%

Insurance¥30 trn

Education¥5 trn

3,000

2,000

Non-merchandise
EC ＋25.4%
1,000

0Q2 FY2212%5%Q2 FY23*1 Figures present the revenues for merchandise and non-merchandise EC for GMO-PG non-consolidated online payment.
*2 Figures present the % YoY for Q2 FY2023 for GMO-PG non-consolidated. *3 For a list of sources, please refer to slide 37.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

15

2-4 BaaS/EF*1：Expand Revenue and Scope of Services

BaaS
BaaS2025営業利益目標
OP target:

2025 10¥1.0bn～億円～

Tap into broaden revenues by providing BaaS and EF support to customers
Ginko Pay・Processing PF*2 revenues (Q2 standalone)Role of related service providers
Current■ Ginko Pay■ Issuing (Processing PF)■ Acquiring (Processing PF)

ｘｘ

Int’l brands

Licensing

Credit Card
company

Acquiring

Going forward% YoY
Ginko Pay
－6.9%
Due to change in monthly
revenue amount from thecontract rollover by a large
customerIssuing
Payment processing

GMO-PG

Payment
processing

Processing PF＋24.6%

System development
Acquiring support
Issuing support…

Merchant

Sale

Consumer

Purchase

Total＋10.4%
2Q FY17 2Q FY18 2Q FY19 2Q FY20 2Q FY21 2Q FY22 2Q FY23

*1 EF stands for Embedded Finance. *2 Revenue from Ginko Pay and Processing PF includes revenues from business operators other than financial institutions.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

2-5 Offline Payment: Market Share Expansion Thanks to
Tailwind of Normalization of Economic Activities

Offline OP target:
2025 ¥2.0bn~*1

Amidst the growth of stock-type revenue*2, mobility positioned as
the future growth driver
GMO-FG/CAS: Revenue by business model*2 (Quarterly) Penetration of tap-and-pay in transport sector (bus, rail, etc.)
% YoY

% YoY
Stock-type*3＋61.8%

Initial＋76.8%(¥ Mil)
3,000

1,000

Spread＋22.7%

2,500

800

TRX volume of transport sector

2,000

600

Fee
＋110.6%

1,500

400
1,000

Providing transport sector NFCs operating in around half of all prefectures
Expansion plans centering on acquiring railway operators going forward

Other

YoY

Kyushu-based transport company B

Approx. 10x

Kansai-based transport company A

200

500

0

H2 2023
Service rollout toseveral transportcompanies in theTokyo metropolitan
area

Stock
＋41.0%

0
Q2 FY22Q2 FY23Q2 FY22Q2 FY23■ Initial ■ Stock ■ Fee ■ Spread

21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

*1 The 2025 OP target includes companies other than GMO-FG and GMO-CAS. *2 Figures are after consolidated eliminations. *3 Stock-type revenue excludes initial revenue from payment terminal sales andincludes stock, fee and spread revenues.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

17

2-6 FinTech: Current Status and Progress of Initiatives

FinTech2025営業利益目標
FinTechOP target:

202530¥3.0bn~億円～

Profit growth inflection from expanding remittance and overseas
despite the higher credit costs for Payment After Delivery
FinTech revenue and profit/loss(Quarterly)

Top merchants for GMO Payment After Delivery (by revenue)(¥ Mil)
4,000

% YoY
＋21.6%

As of end-Q2 FY2022

Current ranking

1 Apparel co. A

1 Apparel co. A

2 Sundry good co. B
3 Apparel co. C

3,000

4 Cosmetic co. D
5 Cosmetic co. E

Acquired several large
2 New co. F
merchants by strengthening
3 New co. G
sales and by leveraging
4 Cosmetic co. D group’s comprehensive
capabilities
5 Apparel co. C＋20.5%

Remittance service revenues (Q2 standalone)

2,000(¥ Mil)
600

＋5.7%

1,000

＋20.2%

6-yr CAGR＋21.3%

Increase in transaction bylarge-scale users and by
capturing new remittance
needs

400

＋7.6%
＋25.5%

0
Q2 FY22□ Rate revision impact
of Payment After Delivery*1■ Payment After Delivery

Q2 FY23200■ Remittance service■ Early Payment service■ Lending (Japan/Overseas)■ Other *2
Segment profit/loss*1 Rate revision to reflect the increase in CVS payment agency cost.

0
Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23
*2 Others: the sum total of BtoB factoring, finance lease, BtoB AR Guarantee, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

2-7-1 Global: Overseas Lending Strategy

Global OP target:
2025 ¥3.0bn~

Track record resulting in increased customer attraction in India andNorth America
Lending strategy
Diversity portfolio by increasing new small-amount borrowers. Increase loan amount to growing prime borrowers
among existing customers
Image of portfolio expansion
Large

New

15～25M USD

Increaseloan amountMid-sized 5～15M USD
Small

Increase～5M USD

Eligible borrowers and competitive landscape (USA)
Seed

Early/Middle

LaterBank/Large debt funds

svb• No direct impact from bankruptcy of Silicon Valley Bank (svb), keep close attention on operations while furthering relationship building• Business opportunity to increase from the high likelihood for provider of growth capital to shift from banks to alternative lenders• Strengthening relationships with other large debt funds (increase in referral cases)

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

19

2-7-2 Global: Earnings Summary
Increasing new borrowers and loan amount to prime borrowers;
strengthening organization and increasing headcountRevenue*1 & OP*2 (Quarterly)(¥ Mil)% YoY＋26.2%

Loan balance (end-Mar)New loans executed% YoY＋47.5%(¥ Mil)・Consumer loan Fintech startup

US MSB
＋2.2%

300

250

200

・Paperless, quick loan within 10 mins

12,000USA・Over 50 mil. app downloads＋45.5%
・Total loan balance over ¥480.0bn

10,000OP＋34.6%

8,000

Asia MSB＋36.7%

150

incremental
increase

4,000

50

2,000

Asia payment＋44.4%Q2 FY2022

Q2 FY2023

India＋150.7%

6,000

100

0

Singapore
Terminating Asia payment＋24.9%
business excl. Taiwan
2Q・Terminate payment business in Thailand,
Singapore, Malaysia and Hong Kong due todecline in Japanese corporates regional
expansion (within this year)
・Continue with growing Taiwan business
which accounts for approx. 90% of Asia
payment businessIndonesia
・OP uplift from reduction of operational cost
＋2.8%
・Focus on finding future partners for overseas
payment business through lending/investing
activities

0
Q2 FY2022

Q2 FY2023*1 Calculated by excluding the one-time revenue in the previous term. If included, the revenue growth is 25.9%.
*2 Calculated by excluding the one-time revenue in the previous term. *3 Converted using rate of 1 INR = 1.62 JPY as of March 31, 2023.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

2-8 Expanding Scope of Business
Expand scope of business to peripheral domains and strengthen existing
business through organic expansion as well as equity participation
Target domain
Considering majority/minority investments inJapan and overseas
Planning to execute two minority investments

Business applications
・Supporting
customer’s growth・Strengthen customer
touchpoints

Finance

Payment

Support the reforms ofcommercial flows and business
operations centering on
payment in the flow of money

Reservation system
SMS payment

Payment after
Delivery

Factoring
AR guarantee

Salaryprepayment

Payment
processing

Pay on credit

Salaryremittance

BtoC¥300 trn

BtoB¥1,000 trn

BtoE¥225 trn

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

21

3 Sustainability

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

22

3 GHG Emission Reduction
Promoting the improvement of carbon efficiency throughout the supply chain
Trend of GHG Emissions

GHG Emission Reduction Initiatives（t-Co2）40,000（t-Co2/¥ Mil)

0.622

GHG emission
per unit ofrevenue

Scope2
・GHG emission reduction of 80% by introducing what is
effectively renewable energy
0.600

0.453

32,000

Scope1：Zero emissions

0.450

24,0000.300
16,000

Scope3・Conducting supply chain engagement towards a suitablemeasurement and reduction plans
・Certified by third party to ensure credibility of emission
disclosure
Category 1 (purchased goods and services)
・Use of environmentally conscious materials to
manufacture payment terminals
Category 2 (capital goods): mainly arising from software
investments
・Considering advocating to supply chain

0.150

8,000

Other
0
FY2021

FY20220.000

Category 11 (use of sold products)
・Use of recycled paper for roll paper
・Offer e-storage service of sales proceed receipts in orderto reduce roll paper usage
・Reuse returned payment terminals as replacements
during repairs

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

23

4 Financial Highlights and Reference Materials

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

24

4-1-1 Consolidated Balance Sheet Changes

Increase in deposits received and MSB related assets
AssetsLiabilities and Equity(¥ Mil)(¥ Mil)295,556

300,000

295,556

300,000

273,407273,407250,000

250,000

215,455

110,741

85,562

215,455

136,406
113,967

200,000

200,000

78,25135,25232,381

19,67819,72025,741

23,00027,150100,000

19,59315,15818,89020,65323,28950,000Equity57,820 ratio*4
25.9%

89,26082,272

104,523
150,000

150,000

48,80659,603100,000

50,000030,599Prov. for70,479 doubtful
account－2,722
9,852
End Q4 FY2021

Investment related*1

97,54386,965－3,339－3,796

12,87012,800End Q4 FY2022

End Q2 FY2023

MSB related*2

Other

Cash & equivalent

31.9%

27.0%

0
End Q4 FY2021

End Q4 FY2022

End Q2 FY2023

EquityMSB related

Borrowings

Bonds

Other

Merchand 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.

25

4-1-2 Major Consolidated Financial Indicators (Annual Trend)

Strengthened equity base with the expansion of MSB
IFRS

J-GAAP
Third party allotment
Raised ¥8.0bn

45%

Issued Euro Yen CB
Due 2023
Raised ¥17.5 bn

Euro Yen CB Due2026
Raised ¥21.1 bn(‘¥ bn)300

Euro Yen CB Due 2023
Fully converted

40%

33.8%

35%

250

32.3%
30%

31.9%

200

25%

ROE baseline

150

20%

15%

100

14.2%

10%

50
5%

0%

0
End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4End Q4FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Total assets
Return on equity using profit attributable to owners of parent (ROE)
OP margin

Return on total assets using pretax profit (ROA)
Total equity attributable to owners of parent to total assets (equity ratio)* 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.

26

4-2 Consolidated Revenue by Business Model (Quarterly Trend)(¥ Mil)

6,057

6,025

6,000

5,415

5,371

5,000

4,808
4,665

5,297

5,296

4,731

4,707

4,414
4,290

4,257

4,000

3,840
3,672

3,646
3,450

3,364

3,289

3,278

3,000

3,395
2,288

3,149

3,135

3,015

2,922

2,815

2,713

2,532

2,527

2,559

2,669
2,237

2,382

2,037
2,080
2,166

2,083
1,906

2,000
1,661

1,767

1,179
1,000

4,311

889

1,846

1,221

1,812

1,236

1,825

1,261

1,937

1,359

1,723

1,460

1,411

1,478

1,717 1,754
1,552

1,947

2,005

1,678
1,484

1,131

919

876
659

561
389

296

1,522

1,610

1,851

2,260

725
489

316

323

506

362

0
18/3Q

18/4Q

19/1Q

19/2Q

19/3Q

19/4Q

20/1Q

20/2Q

20/3Q

Initial

20/4Q

Stock

21/1Q

Fee

21/2Q

21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

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.

27

4-3-1 Consolidated CoS and SG&A Ratio (Quarterly Trend)

SG&A ratio declined to 29.5% from cost control and scale benefit*
15,641(¥ Mil)14,81350.0%

14,00013,341

12,897

42.7%
41.2%

35.5%
10,000

33.3%

35.2%

34.8%
9,767 10,121

8,927

9,356
8,623
26.7%

8,160

7,945

36.8%

32.7%
9,030

8,000

36.7%
35.2%

36.6%

10,646
33.8%

31.3%

27.9%

12,201

11,85739.6%

12,000

28.8%

40.9%
40.0%

11,132
37.5%

37.2%
34.6%

34.7%

33.9%

33.4%
35.8%

33.6%

32.6%
31.1%

33.0%

29.5%
32.0%

5,460

5,823

3,720

6,000

4,169
3,813

3,292
2,646
2,986

4,000
2,818

3,174
3,181

3,522

3,433
2,302

2,664

2,488

4,108

3,466

3,872

3,982
3,169

3,599

3,684

30.0%

30.7%

4,075

3,959
4,469

4,487

5,022
4,743

20.0%

4,618

4,021

2,817
10.0%

2,000

0

0.0%
19/3Q

19/4Q

20/1Q

20/2Q

Revenue

20/3Q

20/4Q

21/1Q

Cost of Sales

21/2Q

21/3Q

SG&A

21/4Q

22/1Q

CoS ratio

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

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.

28

4-3-2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly Trend)

CoS ratio trending stably for online payment business(¥ Mil)

9,219

9,083
9,000
8,498
8,000

7,977

7,906

7,682

50.0%

45.2%
41.6%
7,000

6,858

6,709

40.7%

7,122

6,878

41.2%

40.0%

39.7%

6,370
6,110
36.5%
6,000

34.2%

33.1%

5,000

5,271

5,126

5,142

32.9%
33.3%

32.5%

31.6%

32.5%

30.0%

4,816

30.3%

29.4%

4,000

20.9%

20.7%

20.9%

21.2%

20.2%

21.0%

22.1%
20.5%

22.6%
21.5%

20.5%

19.5%

2,649

2,665

2,319
1,874

1,984

1,592
1,005

1,800
1,065

1,000

2,495
2,286

1,069

1,117

1,235

1,339

1,373

1,517

18.7%

2,603

1,478

20.0%
2,796

2,345

2,177
1,609

19.8%

2,755

2,932

3,000

2,000

20.1%
3,462

19.3%

30.3%

1,483

1,616

1,711

1,696

1,822
10.0%

1,553

0

0.0%
19/3Q

19/4Q

20/1Q

Revenue

20/2Q

20/3Q

Cost of Sales

20/4Q

21/1Q

SG&A

21/2Q

21/3Q

CoS ratio

21/4Q

22/1Q

SGA ratio

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

SG&A ratio (1-yr trailing average)* Figures are before consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

29

4-4-1 Operating Stores, TRX Volume and Value

Consol. TRX value reaches approx. ¥13.2 trn in the past 12 months
OperatingStores*1/Terminals*2
End Q2 FY2023

TRX volume*2*3

TRX value*2

Q2 FY2023

Past 12-month

Q2 FY2023

Past 12-month-

1.48 bn

5.53 bn¥3.6 trn¥13.2 trn-

＋28.7%＋33.2%＋36.3%＋39.1%

160,7211.35 bn

5.05 bn¥2.7 trn¥9.8 trn＋19.9%＋25.7%＋29.7%＋24.6%＋26.9%

223,041

0.13 bn

0.47 bn¥0.9 trn¥3.4 trn＋42.7%＋70.0%＋86.9%＋82.8%＋91.0%

Consol.
% YoY

Online% YoY

Offline*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 Q1 FY2023. Figure exclude an operating stores of a specific merchant and stores using fincode byGMO. If included,
operating stores would be 539,093 (up 35.6% YoY).
*2 Payment terminals exclude GMO-PG’s offline payment (GMO Cashless Platform). Offline TRX volume and value includes GMO-PG’s offline payment (GMO Cashless Platform).
*3 TRX 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 or actual proceed amount, and one
transaction per payment in the case of offline. *4 Annual average is shown in 5% increments.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

30

4-4-2 Waterfall Chart for Consol. TRX Value (Q2 FY2023)
Achieved above-market growth rate from increase in offline and nonmerchandise EC(% YoY)（¥ trn）

Online payment

Offlinepayment

Company
Market*1

Non-merchandise EC+36.1%+32.4%

Company ＋83.3%
Market*1+18.1%＋24.6%＋11.7%

Consol. ＋36.3%

Merchandise EC
+5.8%
+0.3%

¥3.7 trn
Merchandise
3.5

GMO-PS

GMO-EP

Other non-merchandise*3

Travel & Ticket
Increased outings and travel

Utility
Expansion of service to major EPCOs
3.0

Digital content & Telecom
Major telcos, growth of GMP*4, etc.

¥2.7 trn*5
GMO-PG
GMO-FG*2
Increase in TRX from strong
terminal sales and reopening

2.5
0

Q2 FY2023

Q2 FY2022*1 Offline market: METI’s “Survey of Selected Service Industries”. The offline market figures show the YoY change for January to February as the March 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 per household. *2 Excludes GMO-PG’s offline payment (GMO Cashless Platform) *3 Financial institution-linked utility *4 GMP stands for Global Major Players*5 Rounded off to nearest trillion of yen.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

31

4-4-3 Distribution of major sectors (Q2 FY2023 Standalone)

Balance both stability and growth through sector diversification
Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)(Q2 FY2023 standalone Actual)

Revenue
proportion

The size of the circle represents the TRX value

30%

25%

Digital content/
telecom

20%

15%

10%

Apparel5%

Cosmetic/
healthfoodHomedelivery/newspaper

Food &
Beverage
C2C

Utility

Travel/ticket

Dailygoods/ Insurance
officesupplies

0%

-5%

5%

15%

25%

35%

45%

55%

Revenue growth (% YoY)
* Composed from TRX value by sector for the PG Multi-payment service.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

32

4-5-1 Consolidated Cash Flow Statement (Q2 Cumulative)
Q2 FY2023 changes by item (¥ Mil)(¥ Mil)J-GAAP

IFRS

50,00040,00030,00020,00010,0000-10,000
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022Q2 cumu.
FY2023Operating CF

Investing CF

Financing CF

Operating CF：
Pretax profit
Trade receivables
and other receivables
Advances paid
Accrued revenues
Accrued expenses
Deposits received
Income taxes paid
Investing CF：
Deposits into
restricted accounts
Withdrawals fromrestricted accounts
Deposits to subsidiaries
and affiliates
Withdrawals of deposits to
subsidiaries and affiliates＋18,625+9,856

Financing CF：
LT borrowings
Dividends paid

－8,338＋2,450－12,121

FCF：
Cash & Equivalents：＋31,529
136,406－5,059－5,349－2,675＋2,232＋25,186－5,310＋12,904－9,088＋13,763－5,300+16,500

Mainly Money
Service Business

FCF* 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.

33

4-5-2 Changes in consolidated cash flow statement

Following factors affect operating CF other than pretax profit
Related liabilities & assets Impact from business expansion

Payment Processing Business
Sales proceeds frommerchants under the
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 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 in CMS of GMO Internet Group,
which can be withdrawn at nay time depending on cash
requirements

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

34

4-6 Our Target Market
Expanding the scope of business by addressing the money flows between
individual, corporates and government
Money Flow
C2C
（inter-individualtransactions）
Individual¥2 trnPayment function
provided to C2C platforms

Credit card
payment ofG2C
public（Tax payment, etc.）
dues/taxes,
smartphone app*1
for National tax
Agency¥110 trn～

B2C(Consumption)¥300 trn

B：Business
C：Consumer

G：Government
E：Employee
CompanyEC, offline, GMO Payment After Delivery,
industry-specific PFs

Instant Salary byGMO

B2E（Payroll）

B2B（inter-company
transactions)¥

1,000 trn

AR Guarantee
GMO B2B Pay
On Credit¥225 trn*2

Government

Company*1 Ministry of Internal Affairs and Communication’s breakdown of national and local taxes (Local Public Finance 2022)*2 National Tax Agency’s ‘Statistical Survey of Actual Status for Salary in the Private Sector 2021’
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

35

4-7 Path of Cashless Penetration

Social challenges acts as a backdrop to drive cashless penetration
Cashless penetration*1
Implementation

Propagation

Permeation

Advanced use

94%
83%

64%
36%
（2022）

13%（2010）

56%
Drivers are problem-solving and future
creation

Data usage, decarbonisation

Labor shortage, regional revitalization
EC migration (during COVID-19), public hygeine
Fraud prevention, increasing convenience, inbound tourism*1 Ministry of Economy, Trade and Industry’s Study Group on the Future Direction of Cashless Payment.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

36

4-8 Broader EC：List of sources for market size and cashlesspenetration by industry
Market Size
TravelPrepared using Japan Tourism Agency’s National Tourism Survey for 2022.

Healthcare

Ministry of Health, Labour and Welfare, ‘Overview of Estimates of National Medical
Care Expenditure 2020’

Real Estate (Rent)

Zenkoku Chintai Jutaku Shinbum article on rental residential market’s challenges
and market structure as seen from data; Rental Housing Management Business
Association’s survey on national housing rent trends March 2023. Calculated bymultiplying private sector rental housing units with average rent.

Local and National taxes

Ministry of Internal Affairs and Communication’s breakdown of national and local
taxes (Local Public Finance 2022)
The Life Insurance Association of Japan, ‘Life Insurance Fact Book 2021’, referencing
insurance premiums in 2020
National Institute of Population and Social Security Research’s Population Statistics;
MIAC’s Annual Report on the Family Income and Expenditure. Estimated bymultiplying expenditure amount of the relevant item with the number of household.

Insurance

Electric Power, Gas,
Water, Education
Cashless Penetration
Cashless penetration
by industry

Japan Credit Card Association and Nomura Research Institute, Ltd.’s ‘Objective
Assessment of Consumption Towards the Realization of a Cashless Society.’
Ministry of Economy, Trade and Industry’s ‘Result of Analysis National Survey of
Family Income and Expenditure (Summary)’ for credit card usage rates.

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

37

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.

38