Supplementary Materials
Financial results briefing for Q1 FY2022

February 10, 2022
68 th Investor Meeting

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

Our Track Record of Growth
The result of management policy focused on sustainable growth
50,000 18,000
16,000+25.0%

16,00014,00012,987

14,00012,00012,00010,000J-GAAP

IFRS
※3,4

IFRS
※3

J-GAAP

21/9

22/9E

20/9

19/9

18/9

17/9

16/9

15/9

14/9

21/9

22/9E

20/9

21/9

22/9E

20/9

19/9

18/9

17/9

16/9

15/9

14/9

13/9

12/9

11/9

10/9

09/9

J-GAAP

19/9

0

18/9

0

0

17/9

2,000

16/9

2,000

15/9

4,000

14/9

4,000

13/9

6,000

12/9

6,000

11/9

8,000

10/9

10,00010,000

8,000

09/9

20,00014,88913/930,00018,399+23.6%

12/9

40,000

16,234 18,000

11/9

41,667※1,2

EBITDA

10/9+20.0％

Operating Profit

20,000※1

09/9

Revenue

50,000（Mil Yen）（Mil Yen）※1（Mil Yen）

IFRS※3

Operating stores

Annual TRX volume

Annual TRX value

129,659

3.82 billion¥8.7 trillion（※1）Macro Kiosk has been deconsolidated in FY ending September 2020, the revenue figures above present the continuing operations only and exclude the discontinued operations.
（※2）EBITDA under J-GAAP is calculated as the sum total of operating profit, depreciation and amortization; and EBITDA under IFRS is calculated as the sum total of operating profit
and depreciation.
（※3）Operating stores present the figures for GMO-PG and GMO-EP; transaction volume and value present figures for GMO-PG, GMO-EP, GMO-PS, GMO-FG; of this, online payment
present figures for GMO-PG, GMO-EP and GMO-PS.
The number of operating stores is at the end of December 2021. Annual transaction volume and transaction value are the figures from January 2021 to December 2021;
transaction volume and transaction value include the figures of GMO Financial Gate Inc.
（※4）Figures exclude a specific case and the operating stores related to a major delivery service operator. If included, the number of operating stores is 360,275 stores as of end of
December 2021 (up 68.0% YoY).

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

2

Characteristic of Payment Business: Cross-Industry
Payment is a required action for any purchase and is a highly
sticky application

Finance

Taxes

Water Supply

MedicalApparelPublishing

Manufacturing

EnergyLogistics

Education

Utility Bill

DigitalContent

Payment is a requisite action
Effective for customer consolidation

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

3

Consolidated management
Realize Group-wide stable growth through sound business
operation that agilely responds to the businessenvironments at the major Group companies.
Omni-channel Strategy

Expand payment
method offerings
Share customer base

Diverse customer
coverage

Sharing of management principles, corporate culture andgroup-wide resource allocation
GMO-PG

GMO-EP

GMO-PS

GMO-FG

Major
business

Online payment
processing business

Online payment
processing business

BNPL business

Offline payment
processing business

Customer

Large corporates(non-merchandise,and merchandise)

Small operators(mainlymerchandise)

Merchandise/Nonmerchandise
operators, individual
consumers

Offline stores,
Unattended
machines

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

4

Three Business Segments
Sustain an over 25% OP growth from the expansion of mainstay
payment processing business and its peripheral businesses
Revenue
Breakdown

Payment Enhancement
Business
Online Advertising Service
SSL Service
Delivery Service
Medical Kakumei byGMO

Operating Profit
Breakdown（Actual data for Q1 FY2022)

1%
13%

2％

etc.

23％

87%
86%

75％

Payment Processing
Business

Money Service Business (MSB)
GMO Payment After Delivery/
GMO B2B Pay On Credit
Remittance Service/
Instant Salary byGMO ※2
Overseas Lending
Early Payment Service
B2B Factoring
Transaction Lending

Online Payment ※1
Offline Payment
Ginko Pay/Processing
System Development
etc.

etc.

※1 Online payment includes pay-as-you-go and recurring payment and Z.com Payment (overseas payment service).
※2 Instant Salary byGMO commenced service on on July 7, 2021.

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

5

Our Business Eco-system
An eco-system of our value-added services complementing our main
business to achieve mutual growth
Increase inpayment processing

Payment processing(Gross margin 85％)

Payment
Processing
Business

Money Service
Business
Payment
Enhancement
Business

Customer growth
Main Business

Value-added business that contributeto growth of the main business

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

6

Business segment and value proposition
Businesses and services to comprehensively cater tocustomer’s needs
Issues & Needs

Value Proposition

Payment
Processing
Business

・Cumbersome implementation work
・Time consuming payment admin work,
Merchant
less time for main business・Concerns over system troubles

・Package of diverse payment methods
with centralized management
・Cut cost and payment/invoicing work
・Advanced system and customer support

・Limited number of payment methods

・Broad range of payment methods offered・Concerns over payment security

・Safe and smooth payment experience

Consumer

Money Service
Business・Long lead time to deposit (longcash cycle)
Merchant
・Difficulty in recruiting personnel

・Salary prepayment service offered

Payment
Enhancement
Business・Cannot chose the timing of payment

・ Flexible payment timing with GMO
Payment After Delivery

・Need to grow revenue

・Support revenue growth throughonline ad placements

・Long waits at medical institutions

・Reservation system for medical
institution that enables seamlessservice from reservation to payment

Consumer

Merchant

Consumer・Improve cash flow cycle with early
payment of sales proceeds

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

7 7

Revenue Trend by Segment
3 segments of Payment Processing Business, Money Service Business and,
Payment Enhancement Business
J-GAAP（Mil Yen）
50,000IFRS

Payment
Enhanceme
nt Business

45,000

Money Service
Business

40,00035,00030,00025,000

Payment
Processing
Business

20,00015,00010,000

5,000
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 22/2E
2008
2011
2013
2014
2015
2016
2021
2010
2020
2018
Launched Launched Launched
Launched Launched Revamped Launched
Consolidation Deconsolid ※ Buffort
services
Early
Online※Payment TransactionEarly
becomes a
Offlinetargeting banks of GMO MRT ation of MK
Payment
Advertising
After
Lending
Payment
subsidiary
Payment
GMO-FG/MK※
Service
Service
DeliveryServicebecomesubsidiaries※ There was only one segment of Payment Processing Business until September 2015; segment information disclosure began from FY ending September 2016.
GMO-FG stands for GMO Financial Gate. GMO-MRT stands for GMO Medical Reservations Technology, MK stands for MACROKIOSK.
※ Due to the deconsolidation of MACROKIOSK from FY2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

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

8

Positioning of GMO-PG group
Connecting merchants and payment companies through ‘contracts,’‘payment information,’ and ‘money flow’.
Consumer

Merchant
129,659 stores ※１(As of end-Dec 2021)

PC

OnlinePayment

Smartphone/Tablet

OfflinePayment

EC
B2B・B2C・C2C
Taxes, Dues, Utility
NHK, Electricity bill,
Municipalities (e.g. Tokyo)
National Tax Agency,
Automobile Tax
Subscription
Video streaming
Software, ApparelService/Commerce
Digital content
Donation, Insurance,
Travel※2

149,140 terminals(As of end-Dec 2021)
Payment Terminal

GMO-PG consolidated
subsidiaries

Payment
Companies
40+ Credit cardcompanies
Convenience store
Account Transfer
Carrier billing
Bank transfer

E-money
Cash on Delivery
GMO Payment
After Delivery
QR codeID-based payment
Multi-currency
Pre-paid※1 Figures exclude a specific case and the operating stores related to a major delivery service operator. If included, the number of operating stores is 360,275 stores as of end of
December 2021 (up 68.0% YoY).
※2 Operating payment terminals: Starting from FY2021 the figure presents the combined number of payment terminals sold through sales partner and embedded-type payment
terminals. (up 72.0% YoY)

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

etc.

9

Payment Processing Business:
Revenue model of credit card payment processing
Revenue model determined by merchant size and type
■ Four revenue types (i.e. business models)■Revenues by merchant type/size

Initial (Initial revenue)①②

Terminal Sales
Coefficient: Number of terminals (units)
Revenue: Terminal sales (units)
× _Yen; paid at start of service

Municipalities
Large Enterprise② ③

Sales of
Payment
Terminals①

Stock (Fixed revenue)
Fixed Monthly Revenue
Coefficient: Number of operating stores
Revenue： Operating stores × _Yen

Large and middle-sized
merchants② ③ ④③

Fee (Transaction processing revenue)
Fee based on transaction volume
Coefficient: Number of payments processed
Revenue： Number of payments processed× _YenStart-ups
Small businesses

Spread (Merchant acquiring service revenue)④

Spread on the transaction value
Coefficient: Value of transaction
Revenue： Value of transaction ×_%④

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

10

Payment Processing: Two types of merchant contracts
Created the Representative Contract and effectively changed theflow of revenue proceeds
Payment
Processing

Payment
Processing

Direct contract

Revenue type

GMO-PG consolidated
subsidiaries

A

Flow of Revenue and charges

2.8% Merchant Discount Rate (MDR)

CreditCard
Company

②

Stock

③

Fee

②

Stock

③

Fee

④

SpreadRevenue proceeds
Payment
Company

Merchant

Mainly large companies
and municipalities

Representative
contract

0.5% Spread(Merchant acquiring revenue)

3.0％ charge

2.5％ charge
GMO-PG consolidated
subsidiaries

B

3.2% MDR

CreditCard
Company(If merchant has direct contract with payment company)

Payment
Company

Merchant

Mainly SMEs, but may
include large companies※ Figures included are for illustration and reference purposes only.
※ This illustration represents the contracts for credit card. GMO Epsilon revenues are only derived from spreads (See page 9).

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

11

Revenue Breakdown by Business Model
Aiming for a balanced revenue growth by pursuing various initiatives
IFRS

J-GAAP（Mil Yen）
50,00045,000Spread40,00035,00030,00025,000Fee

20,00015,00010,000

Stock

5,000

Initial

0
04/9
05/9
TSE
Listing

06/9

07/9

08/9

09/9

2008
Launched
Early
Payment
Service

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

2011
2010
Launched Launched
OnlineOfflinePayment AdvertisingService

2013
2014
2015
2016
2021
2020
2018
Launched Launched Revamped Launched
Consolidation Deconsolid ※ Buffort
services※
Payment TransactionEarly
becomes atargeting banks of GMO MRT ation of MK
After
Lending
Payment
subsidiary※
GMO-FG/MK
DeliveryServicebecomesubsidiaries※ GMO-FG stands for GMO Financial Gate. GMO-MRT stands for GMO Medical Reservations Technology, MK stands for MACROKIOSK.
※Due to adoption of IFRS accounting standards, the online marketing service (stock) and finance lease (spread) revenue recognition standard is changed from gross basis to net
basis from fiscal year ending September 2018.
Due to the deconsolidation of MACROKIOSK from FY2020, its business has been reclassified as a discontinued operations and is excluded from the revenue figures shown above.

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

12Summary Table of Segments, Business Model and Services
Reporting in 3 Segments and 4 business models■Business Model
Initial（Initial revenue)■ Segment
Online Payment ※Offline Payment
SSL Service

Online Payment
Offline Payment

Stock(Fixed revenue)

Online Payment ※Payment Processing
Business

Ginko Pay/Processing

GMO Payment After Delivery
GMO B2B Pay On Credit

Online advertising service
Medical Kakumei byGMO

Remittance Service
Instant Salary byGMO

Online Payment

Fee(Transaction
processing revenue)

Money Service
Business (MSB)

Early Payment Service

Early Payment Service

Transaction Lending

Online Payment

Spread(Merchant acquiring
service revenue )Overseas Lending

B2B Factoring

Medical Kakumei byGMO
Offline Payment
GMO Payment After Delivery
GMO B2B Pay On Credit
Overseas Lending

Ginko Pay/Processing

System Development

System Development

Offline Payment
GMO Payment After Delivery
GMO B2B Pay On Credit
Remittance Service
Instant Salary byGMO
Delivery service

Offline Payment

Online advertising service

Payment
Enhancement
Business

B2B Factoring

SSL service
Delivery service
Medical Kakumei byGMO

Transaction Lending※ Online Payment includes pay-as-you-go payment, recurring payment, Z.com Payment (overseas payment service).

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

13

Expansion of TAM and Profit Targets
Expand scope of business in the enormous market to achieve2025 OP target of ¥25 bn■ TAM by market segment, GMV, OP target and Priority Initiatives
MarketSegment

TAM（¥ trn）

Broader EC

FinTech(pg. 15-17)(pg. 18-21)

2020

2025

20

45

（B2C EC）

352

408~

（B2B EC）

GMV（¥ trn）

OP（¥ bn）

Priority
Initiatives

5

13

7.5

18
~22

2020

1

2025

3

（BNPL)

8

2.5（Early Payment,
Transaction Lending）

200
－

200~
－

(Salary bank transfer）

1.8

3~

DX Platform

FinTech

GMP※4

B2B payment service

B2B payment service

Instant Salary byGMO

BaaS ※2
P.22
Cashless
2020
2025

2020

2025

2020

2025

2~

87

118

50

50~

2

（IT investment by
Financial Institutions)

－

－

0.5

1~

DX Platform

OfflineGlobal(pg. 23-24)(pg. 25)（Offline cashless market）

1

5

0.5

2~

(Overseas lending）

－

－

※3

－

Offline Payment (IoT)

GlobalFinTechFinTech3~※1 Figures for TAM, GMV, OP (operating profit) are GMO-PG’s estimates and targets. Figures are estimates and are rounded up to the nearest whole number.
There is some overlap in the OP figures for FinTech and Global. Offline OP includes companies other than GMO Financial Gate consolidated subsidiaries.
TAM: Total Addressable Market, BaaS: Bank as a Service, GMV: transaction value.
※2 BaaS/Cashless includes embedded finance. ※3 The OP figure for Global is included in FinTech for FY2020.
※4 Global Major Players (GMP): large corporates that provide IT-utilizing services globally.

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

14

Narrowly-defined EC: B2C EC Market
Low cashless and EC penetration compared to US/European countries■EC Penetration Rates in Developed Markets（％）
UK■ Cashless penetration in Japan(ratio to private final consumption)（¥ trillion)
（％）
29.7
27.9
Cashless penetration

Japan

電子マネー
E-money

70

19.1

20.0

QRコード
QR code

60

17.9
14.5

15.0
10.4

6.0
5.0

13.6
13.6

12.5

3.6

7.0
4.1

7.6
4.6

1.8

2.1

2.5

08

09

10

8.2
5.0

11.3

5.4

5.8

2.8

3.1

3.7

11

12

13

6.4
4.4

7.3
4.8

8.2
5.4

8.8

5.8

9.6

6.2

8.1

17.1

50

30

6.8

0
16

17

18

15
0.15

10
0.1

20

0.0
15

20
0.2

13.9

10

14

25
0.25

20.1

40

10.7

9.2

21.3

30
0.3

18.4

16.2

10.0

24.1

デビットカード
Debit card

US

25.0

26.9

クレジットカード
Credit card

80

19

20

※METI “FY2020 Global Survey Project Concerning Integrated Domestic and External
Economic Growth Strategy Building (E-Commerce market survey)”
U.S. Bureau of the Census “The 3rd Quarter 2021 Retail E-Commerce Sales Report”;
Office for National Statistics ”Retail Sales Index internet sales, January 2022”

5
0.05

0

13
14
15
16
17
18
19
20
※ Cashless Penetration = Sum of credit card usage amount, debit card usage
amount, e-money usage amount, QR-code usage amounted divided by private
final consumption expenditure※ Cabinet Office “System of National Accounts”
Japan Consumer Credit Association’s Credit Card Statistics
Bank Of Japan’s Payment and Settlement Statistics
Payments Japan Association’s Code Payment Statistics

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

15

Broader EC: Expanding Scope of Cashless BusinessJapan’s migration towards cashless payment is contributing to
GMO-PG group’s growth acceleration

B2B

B2C

C2C

Narrowly-defined
B2C EC market¥19.3 trillion

OnlinePayment
CAGR: 6.2%

EC ratio: 8.1%

Enormous market¥1,000tr

OfflinePayment
CAGR: 9.8%

B2B
Credit card
payment

EC ratio (%)
Mrkt Size

2020
8.1¥19.3trPublic dues/Utility
・Local tax¥38 tr・National tax ¥61 tr

2025
14
¥40tr

Service, Commerce
Subscription
Omni-channel

Broader EC
Consumer spending¥300trFlea Market
App
Expansion phase¥1.95 trillion
Sharing
EconomyFlea Market※References：METI’s “FY2020 Global Survey Project Concerning Integrated Domestic and External Economic Growth Strategy Building (E-Commerce market survey)”. Figures for 2025 are our estimates.
※MIAC “Breakdown of national tax and local tax revenue (FY2020 Budget and Local Government Finance Plan)”※THE WORLD BANK ”Household final consumption expenditure (current USD)”※Payments Japan Association’s “Cashless Roadmap 2019”; Yano Research Institute’s “Online Payment/Settlement Service Providers 2018.”

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

16

Broader EC: Public Dues and Utility Bills
Introducing card payments for public dues and taxes since theamendment of the Local Autonomy Law in 2006
Local
Local Taxes (automobile tax, light vehicle tax,
governments fixed assets tax, etc.)
Water bill, gas bill, hometown tax
National tax credit card payment website
Broadcasting subscription fee
NHKCredit card usage rate at the end of FY2020:
17.5% (Up ＋0.6％ YoY)
TEPCO
EnergyPartner

Supporting digitalization of electric bill
payment to realize significant shift towards
paperless operations. Making progress incross-industry deployment of service.

Expansion expected to continue:
Maintenance fee, cram school tuition fee
parking fee, school meal charge, etc.

※Japan Broadcasting Corporation “Business Report for FY2020”

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

17

FinTech: Money Service Business (MSB)
Financial services that only a payment processing company can offer
Services

Related assets

GMO Payment After
Delivery
GMO B2B Pay On Credit

Pay the sales proceed ahead ofthe deposit from the consumer

Accrued revenues

Remittance service
Instant Salary byGMO※

Efficient and secure refund andremittance processing

Advances paid

Overseas Lending/Transaction Lending

Lending of growth funds

Accounts receivable-trade(short term loans)

Early Payment
service

Improves cash flows by bringing
forward the payment date

Advances paid

B2B Factoring

Early cash conversion of accounts
receivable

Accrued revenues

Business Model
③

Fee

④

Spread③

Fee④

Spread④

Spread④

Spread※ Instant Salary byGMO in offered in two types of deposit-type and reimbursement-type. Advances paid is recorded only for the reimbursement-type

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

18

FinTech: Japan’s BNPL market
Expand business by capturing the Japan’s unique BNPL needs
BNPL needs in Japan・Receiving goods before payment
・Cash payment
Consumer ・Manage and control spending
・Limit face time with delivery person

Outlook of Japan’s BNPL market
A growing payment method driven by the(Unit: ¥ billion)
expansion of EC and as an alternative to
1,880
cash-on-delivery and CVS payment(prepayment) and for its use together withcredit cards.
1,572

・Widen customer reach
Merchant ・Means of sales promotion
・Reduce & manage return risk

1,310

EC market breakdown by payment method(2019; by value)
Other 8.9％Pre-paid
6.8％
Carrier billing
8.9％
Cash On
Delivery
6.4％

1,077

882

Credit card
60.6％

（estimate）

Forecast to expand further＋28.4％EC Market Size
※2・3
¥19.3 tril.
EC penetration 8.1%
CAGR 10％

CVS store
10.3％
Migrate to BNPL
※1 Yano Research Institute Ltd. ”Online Payment/Settlement Service Providers 2021”※2 METI “FY2020 Global Survey Project Concerning Integrated Domestic and External
Economic Growth Strategy Building (E-Commerce market survey)”

NEW※3 Yano Research Institute Ltd. ”Online Payment/Settlement Service Providers 2021” and“Domestic Cashless Payment Market 2019”
The figure for FY2020 is an estimate, the figures for FY2021～FY2024 are forecasts.

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

19

FinTech: BNPL business of GMO-PS
Established top-tier market share and earnings base as acomprehensive payment provider
J-GAAP
Key features of our BNPL business• Apply machine learning that utilizes thelarge amount of credit data
• Lower default rate by accumulating credit
data and collection know-how• Provide all payment methods needed in
the EC market as a comprehensive
payment provider(Mil Yen)
8,000

7,000

Revenue
Net Profit

6,000

5,000

4,000

• Rollout business-use BNPL bycollaborating with B2B operators

3,000

2,000

• Stable profit generation andexpansion of transaction value• Leverage group synergy and build
top tier business foundation

1,000

0
17/9

18/9

19/9

20/9

21/9

-1,000

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

20

FinTech: Instant Salary byGMO
To be the de facto digital and seamless service provider in the¥220 trillion salary market
Collaboration with SMFG
2015

2016

2017

2018

2019

Growth Trend (image)
2020

2021

Positive BusinessprofitReorganization
Capital & Business alliance andThird-party allotment

Target market

Service expansion（※）

Prepaid salary users
Approx. 2 mil users

Salary banktransfer market
Approx.
¥220 tr.

Launched
in July

Acceleration of new customer acquisitions（※）Major sectors: Logistics & transport, delivery, relocation services
Employment type: temporary staff, part-time, etc.

An establishedsalaryprepayment(“sokkyu”)
service

Expertise inpayment andremittanceEntered the enormous salary market
that still depends on old-fashioned
cash handouts and analog processes

Jul-2021

Dec-2021
Strengthen collaboration
with SMBC
Added real time bankdeposit function

2007
SMBC Group launches “Sokkyu” service※ SMFG: Sumitomo Mitsui Financial Group, Inc. SMBC Group: Sumitomo Mitsui Banking Corporation group (including Sakura Information System Co. Ltd.)

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

21

BaaS & Cashless(Embedded Finance)

Increase Ginko Pay adopters, interlink each service to create an
infrastructure-like service■Ginko Pay■ GMO Cashless Platform

Smartphone-based payment app marketed to financial institutions
that allows for immediate debit from user’s bank account
The Hokuriku Bank

Cashless solution for offline stores which offers a packageof payments methods including QR/Bar code.
Planning to launch new cashless payment method.

The Hokkaido Bank

The Hiroshima Bank

Sumitomo Mitsui
Banking Corporation

Offlinestore

QR/Bar code Payment
services

Japan Post Bank

The Bank of Fukuoka

Ginko Pay
The Kumamoto Bank

GMO
Cashless
Platform

Bank of Yokohama

The Juhachi-Shinwa Bank Bank of Okinawa（As of September 30, 2021）■ GMO-PG processing platform
One-stop support of various payment solutions for theissuing/acquiring businesses at business operators, credit
card companies and banks.

Start providing acquiring support function to JFR Card
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

IoT: Offline Payment Market
Expand business scale through cashless migration and alliance strategy■Offline payment
GMO Financial Gate offers payment terminals for payments made at offline stores.

■Growth factors of the offline market•

Cashless demand from changing externalities such as
the “new normal” lifestyles
Mobile terminal

Embedded-type EMV terminal※

Target: Unattended Market
Vending(Goods)TicketCoffee Machine

Fare Adjustment(Golf, hotel)

Vending(Beverage/Food)

EV Charging Stn.
Parking Fee

Self Check-out

Coin Laundry

Capsule toy
machine■steraRollout of a new payment platform to provide a onestop service that handles variety of payment methods.

CustomerfacingMerchant
facingstera mobile※EMV: Uniform standard for IC-chip embedded credit cards formulated by Visa and MasterCard.

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

23

IoT: Offline Payment Market
SMBC GMO PAYMENT: Business reorganization andreinforcing the allianceBusiness reorganization (change in equity interest)
Large
Enterprise

SMBC
GMO-PG
SMCC

Before

After

51％
49％
0％

10％
40％
50％

SMBC stands for Sumitomo Mitsui Banking Corporation.
SMCC stands for Sumitomo Mitsui Card Co. Ltd.

Service
ChargeStart-Ups
Small Enterprise

Terminal
Cost

Large～Medium size
EnterpriseCommission
Rate (%)

Rollout of “stera pack,” a solution service for SMEs

Visa/Mastercard: 2.70～2.90% (※)
Union Pay, E-money, QR/Bar Code: 3.25％※ First year is a flat rate of 2.80%. Second year onwards is arange on 2.70~2.90% based on Visa/Mastercard’s GMV in theprevious year.

¥3,000 per month (excl. tax) x nos. of terminals

Only credit card payments acceptedFree(※)※ Repaid and exchange is free (if no fault of the merchant)

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

24

Global: Overseas Strategy
Expand customer coverage through strategic investments and assisting
Japanese companies’ forays into the Asian market■Investment target■Payment processing business

Asia: Top payment-related company

US: Innovation-focused equity stakes

Portfolios of Investments by GMO-PG and GMO Global Payment Fund

GMO Payment Gateway’s
overseas locations

India

USA

TaiwanThailand

Providing payment services to Japanesecompanies expanding into the Asianmarket (Z.com Payment)

Hong Kong

＋20％
YoY

Invest in Fintech-related or
cutting-edge payment
service companies

GMO Global Payment Fund
Vietnam
Malaysia
Singapore

Japan’s first Fintech fundtargeting payment-related
startups in Asia (AUM ¥2bn)

Approx.
4.4x

Indonesia

GDP
Approx.＄6.0T
5-6% Growth

FY2017

Initialinvestment

Market Value asof Dec 2021

FY2018FY2019FY2020

FY2021

Transaction value in Asia increasing

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

25

Payment Enhancement Business:
GMO Medical Reservations Technology
Provides reservation management system to improve
operations at hospitals and clinics■Medical Kakumei byGMO■Corporate Overview

Seamless services that not only includes reservation
function, but also reception, e-medical record link※
and cashless payment function.

① Reservation② Reception③ Consultation④ BillPayment■Omatome Shinsatsuken byGMO
Bundle multiple medical cards of several
hospitals and clinics onto a single app
Contributes to improving reception work efficiency
and cancellation rates

Corporate
name

GMO Medical Reservations Technology Co. Ltd.

Establishment April 11, 2016
Parentcompany
Address

GMO Epsilon, Inc.

（Equity stake: 100.0%）

Tokyo HQ: Humax Shibuya Building 7F, 1-14-6
Dogenzaka, Shibuya-ku, Tokyo
Hamamatsu Branch: Chanson Building 6F, 125
Daikumachi, Naka-ku, Hamamatsu-shi, Shizuoka
Revenue

CAGR＋112.5％

Other services also available
・Medical Kakumei byGMO for veterinary hospitals

・Dentry byGMO

19/9

20/9

21/9

※1 The following services of reception machines for repeat visits, e-medical record links and payment functions are available as option services.
※2 The revenue figure is based on J-GAAP.

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

26

Our Position in the socio-economic New Normal
DX support services that improves client’s PL & BS
■Customer needs & PL/BS changes
PL

Revenue
Cost of Sales
SG&A

Rent
Communication

OP
Asset
Cash

Receivables
Provisions for
doubtful accounts
Fixed assets

Liabilities
PayablesNet Assets

EC shop, Utility bills
Multiple payment methods
Paperless (lower postal cost)
CF improvement service

PersonnelBS

Use cases

Payment arrears

Improve collection rate
Prevent suspicioustransactions
Restaurants
Delivery sales
Cashless implementation
Increase recruits(lower personnel cost)
Store closures(lower rent expense)
CF improvement service
Event, Ticket Sales
Merchandise sale
Refund demand(lower postage cost)

Our DX support services
PG Multi-Payment service
TEPCO EP’s
SMS Payment Choice
Cycle byGMO
GMO B2B Early Payment
Invoice Smartphone Payment
Fraud prevention service(Sift)

Online sales support
GMO Cashless Platform
Instant Salary byGMO

Electronic Invoice Early Payment

GMO B2B AR Guarantee
Online sales support
Remittance service(for refunds)

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
27

27

Product map
GMO-PG’s definition of payment:
what enables the digitalization of money flow
No Credit Risk

Cashless
DX support
platform

Ginko PayPG Multi-Payment Service

Processing platform

EP payment service

Payment
Service

GMO Dokodemo Cashpoint SMS Choiceof Payment
GMO Cashless Platform

GMO-PG Remittance service
Early Payment service

Medical Kakumei byGMO

Payment terminals
NEW

Not included intransaction
value

Included intransaction
value

■

GMO B2B Early Payment
GMO B2B AR Guarantee
FinTech loans

Financial
Service※ TL stands for Transaction Lending

TL（GMO-PG、GMO-EP）

Online advertising service

Embedded payment solution

Instant Salary byGMO
■

■
■
■
■
■
■
■

Services thatcomplements payment

GMO Payment After Delivery

GMO B2B Pay on Credit

Condo Pay

Credit Risk※ TL：トランザクションレンディング PF：プラットフォーム
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

28

Major subsidiaries and equity-method affiliates (IFRS standards)
Consolidated subsidiary

GMO Payment Gateway, Inc.

Equity method affiliate

Multi payment service（targets small-sized merchants）

GMO Epsilon, Inc.

FY2021 Revenue ¥4,824 mil, Ordinary income ¥3,050 mil. (J-GAAP)
GMO Medical Reservations Technology Co., Ltd.

Payment After Delivery

GMO Payment Service, Inc.

FY2021 Revenue ¥6,680 mil, Ordinary income ¥990 mil. (J-GAAP)

Offline payment (TSE Mothers: Security code 4051)

GMO Financial Gate, Inc.

（As of end September 2021）equity stake: 57.3%

GMO Card System, Inc.
(As of end September 2021) GMO Financial Gate, Inc. equity stake: 51.0%

GMO Data, Inc.

Sumitomo Mitsui Card Company, Limited equity stake: 49.0%

Payment System Development

BUFFORT Inc.

(As of end Sep 2021) Equity stake: 100.0%

Overseas（Singapore）

GMO-Z.COM PAYMENT GATEWAY PTE. LTD.
GMO-Z.com PAYMENT GATEWAY HONG KONG LIMITED（Headquartered in Hong Kong and a branch in Taiwan）

GMO Z COM PAYMENT GATEWAY MALAYSIA SDN.BHD.

（Malaysia）

GMO-Z.com PAYMENT GATEWAY (THAILAND) CO., LTD.

（Thailand）

GMO-Z.com PAYMENT GATEWAY INDIA PRIVATE LIMITED（India）

GMO-Z.com PAYMENT GATEWAY USA, Inc.

（USA）

Overseas

2C2P Pte. Ltd.
Multiple payment service

SMBC GMO PAYMENT, Inc.

（As of end Sep. 2021）equity stake 29.3％(As of end Sep 2021) Sumitomo Mitsui Card Company
Sumitomo Mitsui Banking Corporation
GMO Payment Gateway Inc.

equity stake: 50.0%
equity stake: 10.0%
equity stake: 40.0%

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

29

Company Outline■Name

GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange First section)■Date of establishment

March 1995

■Location

FUKURAS office (Head office) SHIBUYA FUKURAS 15F, 1-2-3 Dogenzaka, Shibuya-ku, Tokyo, 150-0043 Japan
Humax Shibuya Building 7F, 1-14-6, Dogenzaka, Shibuya-ku, Tokyo Japan■Capital stock

13,323 million yen■Major shareholders

GMO Internet, Inc., Sumitomo Mitsui Banking Corporation, Mr. Issei Ainoura ,etc

■Management team

Chairman & Director
President & Chief Executive Officer
Director, Executive Vice President
Director, Executive Vice President
Director
Director
Director
Director
Director
Director
External Director
External Director, Audit & Supervisory Committee
External Director, Audit & Supervisory Committee
External Director, Audit & Supervisory Committee
External Director, Audit & Supervisory Committee
Senior Managing Executive Officer
Senior Managing Executive Officer
Senior Managing Director
Senior Managing Director
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive officer
Executive Officer
Executive Officer
Ernst & Young ShinNihon LLC■Auditor

Masatoshi Kumagai
Issei Ainoura
Ryu Muramatsu
Satoru Isozaki
Masashi Yasuda
Hirofumi Yamashita
Yuki Kawasaki
Teruhiro Arai
Noriko Inagaki
Takashi Shimabara
Akio Sato
Kazutaka Yoshida
Kazuhiko Okamoto
Yumi Hokazono
Fumio Kai
Shinichi Sugiyama
Tatsuya Koide
Yuichi Hisada
Takashi Mitani
Tomoyuki Murakami
Masaru Yoshioka
Takeshi Yoshii
Katsunari Mukai
Kazunari Taguchi
Kiyonobu Inayama
Shingo Ito
Yoshinori Inokuchi
Hirofumi Tozawa
Yasunori Hatada
Mariko Takeda
Junpei Kendo
Katsuyoshi Sota
Takeshi Yoshida
Yusuke Nakayama■Consolidated subsidiaries

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc., BUFFORT Inc.
GMO-Z.com Payment Gateway Pte. Ltd. (Singapore), etc.

■Equity affiliates

SMBC GMO Payment, Inc., GMO Data, Inc., 2C2P Pte. Ltd., etc.

（As of January 1, 2022)

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

30

GMO Financial Gate, Inc.: Overview■Name

GMO Financial Gate, Inc. (TSE Mothers, security code 4051)■Date of Establishment

September 1999

■Location

Humax Shibuya Building 7F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo■Capital Stock¥1,605 million yen (As of December 31, 2021)■Major Shareholders

GMO Payment Gateway, Inc. and others■Management

President and CEO
ChairmanManaging Director
Director
Director
External Director
External Director
Director
External Auditor
External Auditor
Auditor■Auditor

Ernst & Young ShinNihon LLC■Consolidated Subsidiaries

GMO Card System, Inc. (Equity stake: 100%)
GMO Data, Inc. (51.0% stake; Sumitomo Mitsui Card Company, Ltd. 49.0%)■Business Description

Provides cashless payment infrastructure for credit card, debit card, e-money, etc.

Stationary-type
payment terminal

Mobile payment
terminal

Kentaro Sugiyama
Akira Takano
Akio Aoyama(GM of Sales Department)
Masamitsu Ikezawa (GM of Administration Department and Corporate Planning)
Tomonaga Fukuda (GM of System Department）
Nao Shimamura
Rie Asayama
Tatsuya Koide(Managing Executive Officer of GMO Payment Gateway Inc.)
Takayoshi Nagasawa
Satoru Ozawa
Takashi Iinuma(CPA; Representative of Iinuma General Accounting Firm)

Embedded-type
payment terminal

POS terminal formerchants（As of February 10, 2022)

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

31

Business outline of payment processing company (1)Problems with online credit card payment in the early days of E-Commerce
Consumer

Payment
company

Merchant①order taking

Large volume of sales slips②Enter each
into theCAT terminal③Make sales report to eachcredit card company （sales processing）

network④Post mail sales
report to each credit
card company

Credit card company

Authorization（approval number
assigned）

Problems for merchants⚫ Duplicate order entry into CAT terminal andmerchant’s system⚫ Sorting documents/transaction for each credit
card company⑤Check whether payment
has been received
Payment⚫ Insufficient check on incoming payment⚫ Human error due to manual input
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

32

Business outline of payment processing company (2)Payment processing service realizes operational efficiency in credit card
payment operations
Consumer

Payment
company

Payment
Processing
Company

Merchants①Order taking

Updatecard data
Real-time credit decision

Network

Sales processing

Transmit
sales data
②Check whether
payment has been
received(data collation)

Payment

Credit card company

Credit・sales

In the early days of Ecommerce, credit card payment was processed offline between themerchant and the credit card company, resulting in work burden on both sides.

The establishment of payment processing companies eliminated this burden for both parties.

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

33