Financial Results Briefing for Q2 FY2021
Progress on developing DX platforms to sustain above 25% growth

May 13, 2021
65 th Investor Meeting

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

Agenda1. Summary of Financial Results for Q2 FY2021
2. Progress of Priority Initiatives
3. Growth Strategies and Initiatives
4. Financial Highlights

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 May 13, 2021.
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 Q2 FY2021

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

4

1.1.1

Earnings Summary

Sustained over 25% growth in a COVID-19 like-for-likebasis; progress ratio of over 50%
Progress on 1H
Guidance(vs. Full Yr)

FY2021Q2 standalone（% YoY）+28.4%+104.0%10,121（+50.0％）（+28.2%）

6,593+40.6%+101.6%3,470（+50.8％）（＋34.4％）

5,248

6,638

+26.5%+106.4%

3,599（+53.4%）（+44.6％）

3,408

4,169

＋22.3%＋108.1%

2,464（+52.6％）（+46.8％）

5,398

7,499

+38.9%--FY20201H

FY2021
1H

Revenue

15,494

19,888Operating
Profit

4,688

Pre-tax
ProfitIFRS（¥ Mil.）ProfitAttributable to
Owners of Parent

EBITDA

KPI（% YoY)% YoY

Operating Stores(End-Q2)

Consol. TRX Volume(Q2 standalone)

Consol. TRX Value(Q2 standalone)

184,355（＋50.7％）

Approx. 820 mil.
(+38.3%)

Approx. ¥1.8 tr.
(+34.0%)o.w., online 790 mil.（＋37.0％）

o.w., online ¥1.6 tr. (＋31.5%)※ Due to the deconsolidation of MACROKIOSK in FY2020, the above figures fore revenues, operating profit and pre-tax profit present the amounts for continued operations only andexclude the discontinued operations. ※ 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.
※ Operating stores exclude new merchants acquired for a certain project. If included, operating stores would be 244,356 stores (down 13.2% YoY).

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

5

1.1.2

Quarterly Growth Trend of Revenue

Both Q1 (hard comps against pre-COVID) and Q2 (like-forlike comps during COVID) posted over 28% growth（¥ Mil.）

Pre-COVID vsDuring COVID

During COVID
like-for-like＋28.5％＋28.2％■ FY2019

10,000＋29.5％
8,000①＋9.8％■FY2020■F2021＋31.0％＋21.0％

6,000

4,000

2,000

0

1Q

2Q

3Q

4Q

①: Special factors that occurred from Q2 FY2019 onwards※ Due to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

6

1.1.3Growth Trend of OP (Q2 standalone)

Both Q1 (hard comps against pre-COVID) and Q2 (similarcomps during COVID) posted over 34% growth
Pre-COVID vsDuring COVID（¥ Mil.）＋48.3％

During COVID
like-for-like■ FY2019＋34.4％■FY2020■F20213,500＋20.3％
3,000③ －0.8％＋17.1％
2,500②－2.4％

2,000

1,500

1,000

500

0

1Q

2Q

②: Increase in provision for doubtful
accounts and office relocation expenses, etc.

3Q

4Q③: Uplift of FY2019 OP from IFRS standards※ Due to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

7

1.1.4 Growth Drivers of TRX Volume and Value (Q2 Standalone)

Separating out the uplift from one-offs and seasonality andorganic growth
Quarterly TRX Volume Trend＋37.0% YoY
Excl. special factors +45.7% YoY

TRX Volume
Special factors (④)（Mil. trx）
900

③

800
700

1,800

④

500
400

②

1,400
1,200

①

800

300

600

200

400

100

200

0

③

1,600

1,000

①

TRX Value＋31.5% YoY（¥ Bn.）②

600

Quarterly TRX Value Trend

0
19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q

19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q①: Organic growth rate of approx. 30%①: Organic growth rate of approx. 25%②: COVID impact: increase in micropayments
due to EC acceleration②: Contribution from new Priority Initiatives
Global Major Player (GMP), Utility③: Seasonality in Q1 FY2021
Digital content, hometown tax, etc.

③: Seasonality in Q1 FY2021
Hometown tax, GoTo Travel, Property tax, etc.

④: Special impact from change in payment
processing method to some merchants※

EC acceleration due to COVID was offset against
decline in high-ticket travel payments

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

8

1.2

Segment Results (Q2 Cumulative)

Profit growth significantly outperformed segment revenue
growth in all segments
Segment revenue（¥ Mil.）＋28.4％ YoY (consol. )（¥ Mil.）20,000343

277

14,00012,000

4,364

10,0008,000＋24.0％ YoY

After consol. eliminations ＋40.6％ YoY
58 +51.1% YoY

8,000＋ Contribution from GMO
Medical Reservations Technology

18,00016,000(Unit: ¥ Mil.)

Segment operating profit

5,092＋16.7％ YoY

7,000

38

6,000

829

＋ Remittance, Early Payment
growth5,000＋ GMO Payment After Delivery
growth－ Conservative operations on
4,000
global lending given COVID-19

6,593＋ Contribution from GMO
Medical Reservations Technology

1,160 ＋39.9％ YoY＋ Remittance, Early Payment
growth＋ Increase in high-margin
services＋ Control f provisions for
doubtful accounts at GMO-PS

4,688

5,380
14,456 ＋33.1％ YoY

10,8586,000＋ Online payment growth＋ Offline payment expanded

3,000

7,215 ＋34.1％ YoY

2,000＋ Online payment growth＋ Offline payment expanded

4,000
1,000
2,000
0

0
FY2020 Q2 Cumu.

FY2021 Q2 Cumu.

Payment Processing Business

Money Service Business (MSB)

FY2020

FY2021Q2 Cumu.

Q2 Cumu.

Payment Enhancemnet Business

Operating Profit※ Due to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

91.3.1 GMO-PG Non-consolidated Performance (Q2 Standalone)

Growth of online payments and MSB from nesting demandtaking root, etc.
百万(¥ Mil.)百万

GMO-PG standalone: merchandize and nonmerchandize EC revenue and OP
4,000
Non-merchandize EC revenue (LHS)

6,000

Merchandize EC revenue (LHS)

5,000

3,000

2,500

4,000

2,000
3,000
1,500
2,000
1,000

1,000

500

0

0
20/3Q

20/4Q

21/1Q

＋29.0％ YoY

OP＋31.3％ YoY

3,500

OP (RHS)

20/2Q

Revenue

21/2Q

Major breakdown of revenue:
Online payment＋33.1％
Merchandize EC＋35.4％
Apparel＋21.1％
Food & Beverage＋53.2％
Cosmetic, Health foods ＋25.7%
Non-merchandize EC ＋27.8％
Digital content＋49.8％
Utility＋55.4％
Travel & Ticket－ 7.7%
Money Service Business
Remittance service＋38.5％└Remittance revenue from local
governments increased

Early Payment service＋38.6％※ GMO-PG stands for GMO Payment Gateway

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

10

1.3.2

Performance of GMO-EP, GMO-PS and GMO-FG(Q2 Standalone)

EP and FG exceed plans, PS focusing on future growth initiatives
Revenue and OP by company
GMO-EP(¥ Mil.)1,600

Revenue ＋36.6％
OP＋25.5％

1,400

GMOｰPS(¥ Mil.)
1,400
1,200

2,000

1,000

1,000
800

Revenue ＋ 9.3％
OP
＋ 46.1％ 400

1,800

600
600
400

400

200

0

0
20/2Q 20/3Q 20/4Q 21/1Q 21/2Q

・New merchant acquisitions
Mar-2021 over 1,000
・GMV for new and existing
merchants in pharma, food,daily goods sectors grew

1,600

300
1,400

1,200

1,200

1,000
200

RevenueOP＋44.2％＋ 5.5％
300

200

800

800
600

600
100
400

200

(¥ Mil.)

1,400

1,000

800

（％: % YoY)
GMO-FG

1,600
1,200

OP (RHS)

Revenue (LHS)

100
400
200

200
0

0
20/2Q 20/3Q 20/4Q 21/1Q 21/2Q

00
20/2Q 20/3Q 20/4Q 21/1Q 21/2Q

・Decline after the year-end sales and・Increase in cashless payment
COVID impact on Payment Afterterminals, etc.
Delivery users
FG initial revenues ＋62.3％→Focus on existing business, control
・Growth of high cost-of-sales
credit cost, focus on new merchantstera terminals and SG&A increaseacquisitions and expanding businesscaused the OP to grow only +5.5%
・Control credit costs to a certain amount※ GMO-EP: GMO Epsilon and GMO Medical Reservations Technology. GMO-PS: GMO Payment Service, GMO-FG: GMO Financial Gate and GCS.

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

11

2.

Progress of Priority Initiatives

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

122.1 Progress on Priority Initiatives and New Projects
Steady progress on existing projects and adding new
projects for next fiscal year
FY2021
F2022
Launched
Priority Initiative and new projects※1

Broader
EC

BaaS

1H

2H

1H

2H

To contribute beyond 2H

Utility Co. A

Launched after 2 mnth delay

Utility Co. B

To start in Q3 as planned

Retail platform

New service to begin in Oct.

Real Estate platform

To contribute to Q4 revenue

Telecom platform

Plan revised to launch in Q4

SME/UI&UX upgrade/New services

New service to begin in Q3

GMP Co. A ※2

To expand to other services in June

GMP Co. B

Contract signed

GMP Co. C

Nego to sign contract this FY

Ginko Pay

Progress according to plan

Issuing/Acquiring

Delayed due to COVID

Variety of existing services

Working towards launch

Offline Unattended Market
Payment stera full launch（IoT） SMBC GMO PAYMENT offline entry

Progress according to planOrg. reform in April completed

Financial services to B2B

Implementing sales drive

New services

Adjusting service mix

Engineer BUFFORT Inc. integration

To contribute from April

FinTech※1 Consists of projects with estimated annual revenue over ¥100 mil. based on plans. Bold letters denote projects with 5-year sales of over ¥1 bn.
※2 GMP (global major player) denotes large corporates offering IT-related services globally

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

13

2.2

Status of Priority Initiatives

Priority Initiatives begins contributing from this FY, expect
further expansion in 2H and next FY
Progress of Priority Initiatives

Utility revenue
Launched after 2-month delay
70% progress against
end-Sep. 2021 estimate
Up 2.2x QoQ

GMP revenue ※1
100% progressagainst 1H plans
Up 2.4x QoQ

FG terminals (incl. stera)※2（’000 units）

Progressing in line with plans＋61.7％ YoY

93,09357,575

21/1Q

21/2Q

Service launch from Q1
Aiming for revenue expansion
from Q3 through horizontal
deployment within the sector

21/1Q

21/2Q

Service launch from Q1
Rollout of second/third phase tosame client in 2H and next FY※1 GMP (global major player) denotes large corporates offering IT-related services globally

End-Q2 FY2020

End-Q2 FY2021

Strong trend of stera terminal
sales※2 FG: GMO Financial Gate and GCS

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

14

3.

Growth Strategies and Initiatives

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

15

3.1

Mid-term Management Targets

As of May 13, 2021

Target OP ¥25bn from expanding business scope within the¥600+ tr. market※1
TAM（¥ Tr.）2020

B2C ECB2B EC

2025

2020

2025

2025

（Frcst）（Act.）（Plan as of 2019）

20
352

45
408～

7.5

16.0
～20.0

18.0
Reinforcement of systemcapability with
～22.0 development
integration of Buffort

2

2～

0.5

1.0～

1.0～

87

（Plan as of 2021）

Reason for revision（Act.）IT investment
by FIsSupport for DX business andnesting demand

※2

118

0.5

2.0～

2.0～

3
8

1.8

3.0～

3.0～

50

50～

ー※3

5.0～

3.0～ Delays due to COVID

514

634～

10.3

25.0
～31.0

25.0
～31.0

OfflineCashless1
Early Payment/TL 2.5

Deferred Payment

Overseas Lending

TotalOP(¥ Bn.)※1 TAM (Total Addressable Market) figures are GMO-PG forecast.
※3 Global OP in FY2020 is included in FinTech.

Total※2 Offline/IoT OP target includes GMO Financial Gate consolidated subsidiaries and others.

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

16

3.2.1

Broader EC

Marketing to merchandize/Non-merchandize EC operators,
focus on SME sector（Act.）（Plan as of 2021）

Merchandize and non-merchandize EC revenues
at GMO-PG non-consolidated

7.5

18.0～22.0（¥ Mil.）OP (¥ Bn.)

2025

Merchandise EC

百万

2020

50,000Growth scenario
1）Inroads to non-merchandise andmerchandise EC
2）Payment p/f to industry leaders3）Approach to GMP (Global Major Players)
FY2021
1H
2H

FY2022
1H
2H

Non-merchandise EC

Non-merchandise EC＋30.3％＋α（3-yr CAGR）

40,00030,000

GMP Co. C
GMP Co. B
Real Estate PF

Merchandise EC＋23.3％＋α

20,000

Telecom PF（3-yr CAGR）

Utility Co. B
Retail PF

10,000

GMP Co. A
Utility Co. A
SMEs

0
17/9

18/9

19/9

20/9

21/9E

22/9E

23/9E

24/9E

25/9E

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

17

3.2.2

Initiatives to SMEs

UI/UX enhancement, focus on new businesses, aim toacquire 1,000 new merchants at EP
Initiatives to achieve 1,000 new acquisitions
1) UI/UX enhancement
Leverage synergy with GMO Internet Group・Relaunch with an improved UX as
official payment service provider on
MakeShop・Launch new services2) New business
Expand Cycle business (business card), etc.

GMO-EP: Quarterly trend of TRX Value andnew merchant acquisitions＋49.2％ YoY

TRX Value (LHS)（¥ Mil.）60,000New merchants (RHS)

50,000March 2021 exceeded
1,000 new merchantsacquisitions（Stores）
3,000

2,500

40,0002,000
30,000Top 5 sectors of high TRX Value growth ※

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

20/1Q

19/4Q

＋103.6％

1,000

19/3Q

Food

0

19/2Q

＋112.3％

19/1Q

Digital content

18/4Q＋124.2％
18/3Q

Beverage

10,00018/2Q＋135.8％18/1Q

Travel/ticket

1,500

17/4Q

＋160.3％

17/3Q

Pharma20,00017/2Q

Q2 standalone
FY2021

17/1Q

Sector※ This list compiles the top 5 sectors with the highest % YoY growth of TRX value at GMO Epsilon during Q2 (Jan. – Mar. 2021).

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

18

3.3

BaaS

※

Target OP of ¥1 bn from horizontal deployment within the
sector and service diversification
2020

OP (¥ Bn.)

2025

（Act.）（Plan as of 2021）

0.5

1.0～

Q2 standalone stock revenue from services to FIs■ Ginko Pay■ Issuing/Acquiring■ Other

Growth scenario1）PF buildout that caters to the needs ofa particular client2）Horizontal deployment within the sector＋19.0％ YoY

Ginko Pay

＋36.5％ YoY3）Expansion to other sectors andservice diversification
Progress on Priority Initiatives and new projects
FY2021
1H
2H

FY2022
1H
2H

Issuing/acquiring＋8.7％ YoY

Varying existing service
Ginko Pay
Issuing/Acquiring

Other※ BaaS：Bank as a Service

Q2 standalone

Q2 standalone

FY2020

FY2021

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

19

3.4

Offline/IoT

Capture the gigantic offline market by leveraging the synergy between
IoT+EC business and stera
GMO-FG: Annual trend of operating payment
2020（Act.）※1

0.5

OP（¥ Bn.）

2025

terminals and TRX value（Plan as of 2021）

2.0～（Units）（¥ Bn.）
Operating terminals (LHS)

180,000

8,000

TRX Value (RHS)

Growth scenario
1) Accelerated acquisition of large
merchant thanks to stera2) Business reorganization and enhanced
collaboration at SMBC GMO PAYMENT3) Synergy with EC (O2O, Omni-channel)
4) Inroads into Unattended Market

160,000

140,000

6,000

2025 target

FY2021¥5 tr.
Increase in stera terminals
Major restaurant chain operator¥100 shop, etc.

120,000

100,000

Progress on Priority Initiatives and new projects
FY2021
1H
2H

7,000

FY2022
1H
2H※2

SGP offline entry
Stera fully launched
Unattended
Market4,000
80,0003,000
60,0002,000

40,0001,000

20,0000

0
17/9※1 The OP target for 2025 includes GMO Financial Gate consolidated subsidiaries and others.

5,000

18/9

19/9

20/9

21/9E 22/9E 23/9E 24/9E 25/9E※2 SGP: SMBC GMO PAYMENT

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20

3.5

FinTechAim for profitability improvement through introduction ofhigh-margin service and control of credit related cost
2020

（Act.）

OP(¥ Bn)

1.8

2025（Plan as of 2021）

3.0～

Q2 standalone: segment profit, provision for
doubtful accounts, ROA (profit/total asset)(¥ Mil.）900

Growth scenario2) Expand GMO Payment After Delivery
and merchant acquisitions
3) Expand sales of B2B financial services
GMO B2B Pay on credit, B2B Payment Guarantee, etc.

4) Expand TAM from new service development
Progress on Priority Initiatives and new projects
FY2021
1H
2H
GMO B2B Payment
Guarantee
GMO B2B Pay on credit

5.0%

Provision for doubtful accounts at GMO-PS
ROA (excl. Early Payment service)1) Asset shift to high margin services※1

New service

Segment profit ※2

FY2022
1H
2H

800
4.0%
700

＋36.1％ YoY

600

3.0%

500
400

2.0%

－18.9％

300
200

1.0%

100
0

0.0%
Q2 FY2020

Q2 FY2021※1 High margin services is defined as service where the ROIC exceeds the WACC: Payment after delivery, overseas lending, B2B factoring (B2B early payment, invoice early payment),
B2B AR guarantee, etc.
※2 Segment profit in Money Service Business includes global lending, early payment service, GMO payment after delivery, remittance service, B2B factoring, B2B AR guarantee, Kondo
Barai and finance lease.

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

21

3.6

GlobalAscertain differences in economic recovery of each country,buildout a stable foundation for future expansion
2020

※1

OP（¥ Bn.）

2025（Act.）（Plan as of 2021）

-

3.0～

Payment processing
TRX value

MSB revenue（% YoY）（% YoY）＋4.0%＋46.9%

Rebuilding
portfolio

Strategy going forward
Indonesia➢ Continue to enhance support for prime
existing customers
India➢ Secure new lenders, prepare for full
ramp-up post-COVID.
US➢ Continue to develop stable business by
diversifying loan portfolio※1 Global OP in FY2020 is included in FinTech.
※2 Indexed 2019 to 100 and referenced the IMF ”World Economic Outlook, April 2021.”

Q2

Q2

FY2020

FY2021Q2 FY2020 Q2 FY2021

Market entry strategy by country ※２
Global GDP growth forecast (indexed)
ASEAN
China
India

（％）
120

USA

Japan

115
110

Phase3105

Phase2100
95

Phase1

90
2019

2020

2021

Current

2022

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22

4.

Financial Highlights

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23

4.1

Balance Sheet Changes

Financial strength improves as equity reaches ¥43.7bn fromof Euro-yen CB conversion
Asset（¥ Mil.）198,048

192,022200,000

150,000

139,990

90,72895,830150,000

16,63086,751

93,02418,021

18,657
7,575
16,531

16,814

16,74550,000
Prov. For53,530 doubtful

accounts－1,968End-Sep 2019※1

100,000

31,703

28,822

27,171

Inv. Related

139,990

198,048

46,752100,000

7,275

192,022200,000

52,0130Liability/Equity（¥ Mil.）For
57,778 Prov.
doubtfulaccounts

66,134 Prov. For
9,481

End-Sep 2020

End-Mar 2021

※2

Other

Cash & Equivalents

18,05033,453

27,539－2,613

9,590

18,931

17,19915,123

doubtfulaccounts－2,574MSB Related

50,00018,47543,7840
End-Sep 2019

End-Sep 2020

End-Mar 2021

EquityMSB Related ※2

Borrowings

Corp. Bonds

Other

Merchant Depostis※3※1 Securities classified under investment securities and equity-method affiliates.
※2 MSB Related Asset = Lease assets, Short term loans, Advance payment, Accrued revenue (net of provision for doubtful accounts).
MSB Related Liabilities = Accrued expenses※3 Deposits received from merchants under the Representative Contract. ※4 Some figures are shown in net amounts of financial assets and liabilities.

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

24

4.2

OP and Pre-tax Profit Growth (Q2 Cumulative)

FG’s revenue growth offset the cost-of-sales increase;continuing to control credit related cost
OP YoY: waterfall chart（+ 40.6% YoY）（¥ Mil.）

SGA increase
GP increase＋2,815－959

Otherrevenueincrease

＋28

Other
expenses
increase

Pre-tax profit YoY: waterfall chart（+ 26.5% YoY）
EquityFinancialincomeOP increase decrease＋1,904－30（¥ Mil.)Financial method
expense income
increase decrease

－2

－482

6,638

＋20 6,593

5,248
4,688

・Personnel cost
＋1,126・Ad expense＋156
・Provision for doubtful
accounts at GMO-PS －111
・Provision for one-off factors－184

・CoS ratio rises
・Revenue increase

1H FY2020
OP・Decline in gains on inv.
partnerships－41
・Increase in forex gains ＋16

・Equity method income －67
・Decrease in gains from change ininterest of affiliate－414（gain recorded for 2C2P in the prev.
term）

－319
＋3,134

1H FY2021
OP

1H FY2020
Pre-tax Profit

1H FY2021
Pre-tax Profit

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

25

4.3.1 Revenue by Business Model (Q2 Cumulative)
Fee and spread revenues grew from strong online payment
at PG and EP（¥ Mil.）19,88820,0009,473

15,49415,000

7,318
5,273

10,000

4,020

3,133

5,000

+ 29.4％ YoY
Spread＋ Strong online payment＋ Growth of early payment service－ Conservative operation of global lending
during COVID+ 31.1％ YoY
Fee＋＋Strong online and offline payment
Increase in remittance service

Stock
－

+ 13.1％ YoY

Delays in FI business due to COVID

2,770
2,008

1,384

Initial＋0
1H FY2020

InitialStock

1H FY2021

Fee+ 45.1％ YoYStrong payment terminal sales foroffline market

SpreadDue to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

26

4.3.2

Revenue by Business Model (Q2 Standalone)

Strong online payment (fee, spread), high levels of payment
terminal sales（¥ Mil.）10,121

10,000

7,891

4,665

3,672
2,713

5,000

+ 27.1％ YoY
Spread＋ Strong online payment＋ Growth of early payment service－ Conservative operation of global lending
during COVID
Fee+ 30.3％ YoY＋＋Strong online and offline payment
Increase in remittance service

Stock

2,083
1,610

－

1,131

Initial+ 14.1％ YoY

Delays in FI business due to COVID

1,411
725

＋

0
Q2 FY2020

InitialStock

Q2 FY2021

Fee+ 56.1％ YoYStrong payment terminal sales for theoffline market

SpreadDue to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

27

4.3.3 Quarterly Trend of Revenue by Business ModelIFRS

J-GAAP（¥ Mil.）
5,000

4,808

4,500

4,290

4,000
3,646

3,450

3,500

4,414

3,672

3,289 3,365
3,136

3,000
2,558 2,671
2,500

2,291

2,433

2,816
2,532

2,383

2,057
2,000

1,227 1,259

1,527

1,406
1,120 1,192 1,266

1,520

612

630

565

594

127

150

724
749
667
786
748
728
663

142

161

1,662

1,767

151

185

687
344

713

723

451
236

749
324

1,907 1,847
1,813
1,180 1,222 1,236

1,026
794

959

1,000

1,383 1,441

2,527 2,559

2,713

2,083

1,876

1,500

500

4,665

791

828
386

248

889

1,261

1,359 1,411 1,461

659
390

316

323

1,478 1,522 1,610
1,131

920
562

297

1,825

1,937

876

725
490

506

362

0
15/3Q 15/4Q 16/1Q 16/2Q 16/3Q 16/4Q 17/1Q 17/2Q 17/3Q 17/4Q 18/1Q 18/2Q 18/3Q 18/4Q 19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q
Initial

Stock

Fee

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

28

4.3.4

Revenue Trend by Business Model (Annual)（¥ Mil.）IFRSJ-GAAP

42,00040,00038,00036,00034,00032,00030,000Spread28,00026,00024,00022,00020,00018,00016,000Fee

14,00012,00010,000
8,000
6,000

Stock

4,000
2,000

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

21/9E

※ 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.

29

4.4

Segment Results (Q2 Standalone)

Payment processing remains favorable, MSB profit
significantly increased from controlling credit related costs（¥ Mil.）Up 28.2％ YoY (consol.)（¥ Mil.）＋ Contribution of GMO Medical
Reservations Technology

138

6,000

4,000

7,334 + 33.5％ YoY＋ Growth of online payment＋ Expansion of offline payment

2,000

3,470

3,500

＋ Growth of remittance andearly payment service＋ Growth of GMO Payment
After Delivery－ Conservative operation of global
lending due to COVID

5,494

38

－5.5% YoY

4,000

2,609 + 15.4％ YoY

2,261

Up 34.4％ YoY (after consol. eliminations)

4,500

180 + 30.5％ YoY

10,0008,000（Unit:: ¥ Mil.）

Segment operating profit

Segment revenue

40

3,000

2,582
2,500

2,000

493

2,878

670

+ 36.1％ YoY＋ Strong remittance,
early payment service＋ Increase in high-margin
services＋ Controlled provisions for
doubtful account

3,804

1,500

+ 32.2％ YoY＋ Growth of online payment＋ Expansion of offline payment

1,000

500
0
Q2

Q2

FY2020

FY2021

Payment Processing Business0

Money Service Business (MSB)Q2

Q2

FY2020

FY2021

Payment Enhancement Business

Operating Profit

Due to the deconsolidation of MACROKIOSK in FY2020, the above figures present the amounts for continued operations only and exclude the discontinued operations.

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

30

4.5.1

FinTech: Assets & Profit Growth (Q2 Cumulative)

Profit increased from expansion of high-margin services andcontrol of credit-related costs（％: % YoY)
MSB related assets(end-March)+11.6％－84.9%＋19.1％

Segment revenue+16.7％－74.5％＋32.6％

Segment profit+39.9％＋32.5％－2.1％＋13.7％＋24.0％＋68.6％－9.8％＋33.7％End-Q2 FY2020
Lending (global)

End-Q2 FY2021
Early Payment

1H FY2020

1H FY2021※1

GMO Payment After Delivery

Remittance

1H FY2020
B2B Factoring

Finance Lease

1H FY2021※2

Other services※1 Figures for GMO Payment After Delivery assets (accrued revenue) are net of provision for doubtful accounts.
※2 B2B AR Guarantee (launched May 2018), “Kondo Barai” (launched June 2020). YoY figures are not displayed.

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

31

4.5.2

FinTech: Assets & Profit Growth (Q2 Standalone)

Profit increased from expansion of high-margin services andcontrol of credit-related costs
MSB related assets (end-March)+11.6％－84.9%＋19.1％

Segment revenue+15.4％－78.8％－1.7％

Segment profit（％ YoY）+36.1％＋38.3％－2.1％＋9.3％＋24.0％＋107.3％－1.5％＋33.7％End-Q2 FY2020
Lending (global)

End-Q2 FY2021
Early Payment

Q2 standalone
FY2020Q2 standalone
FY2021※1

GMO Payment After Delivery

RemittanceQ2 standalone
Q2 standalone
FY2020
FY2021※2
B2B Factoring
Finance Lease
Other services※1 Figures for GMO Payment After Delivery assets (accrued revenue) are net of provision for doubtful accounts.
※2 B2B AR Guarantee (launched May 2018), “Kondo Barai” (launched June 2020). YoY figures are not displayed.

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

32

4.6.1

Quarterly Trend of CoS and SGA Ratio

CoS ratio fluctuates with changes in revenue mix; decline
from Q3 FY2020 is due to deconsolidation of MK※IFRSJ-GAAP（¥ Mil.）10,121※47.2％
50.4%

10,000

9,767
9,030

※39.9％
43.6%

40.9%

8,246
41.1%

40.2%
36.3%
6,459

5,716

6,086

31.9%

31.9%

35.3%

33.2%

36.1%
35.4%

3,098
2,997

3,067

2,000

36.4%

1,823

1,940

35.5%

2,494

2,595

2,382

2,035

2,143

2,320

3,004

2,581

2,791
2,807

42.7%

41.2%

39.6%
36.7%

36.6%

35.9%

35.2%
33.3%

4,000

2,491

8,160

37.6%

6,563

6,098
33.4%

7,295

7,945

7,769

2,986

2,818

2,664

40.0%

36.8%
34.8%

35.2%

32.7%

2,646

50.0%

8,927

8,623

8,000

6,000

9,356

26.7%

3,720

3,433

3,181

3,292

27.9%

3,813
3,174
2,302

28.8%

3,872
2,817

31.3%
30.0%

3,522
3,169

20.0%

2,488
10.0%

0

0.0%
17/3Q

17/4Q

18/1Q

18/2Q

18/3Q

Revenue

18/4Q

19/1Q

Cost of Sales

19/2Q

19/3Q

SG&A

19/4Q

20/1Q

20/2Q

CoS ratio

20/3Q

20/4Q

21/1Q

21/2Q

SGA ratio※Figures with asterisk exclude outsourcing expense related to MSB. These outsourcing expenses are not recorded in SG&A from December 2017 (Q1) due to IFRS adoption.
※ Figures only present the continuing operation from Q3 FY2020 and onwards and exclude MACROKIOSK (reclassified as discontinued operation) due to its deconsolidationin May 2020.

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

33

4.6.2

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

Cost of sales ratio for online payment business trending stably
6,709(¥ Mil.)

50.9%

6,370

47.4%
6,000

6,110

45.3%

36.7%

5,032

36.7%

34.0%
4,000

4,297
3,712

5,142

36.8%
4,840

4,663

50.0%

45.2%

44.8%

5,000

6,858

4,816

5,271

39.7%

34.2%

33.3%

32.5%

3,937
22.1%

3,469
3,000

22.2%

22.1%

23.6%

24.2%

24.3%

1,890

20.7%

1,785
1,577

770

822

17/3Q

17/4Q

928

1,039

1,067

21.0%

20.9%

1,592
1,043

21.2%

20.9%

20.2%

2,649

1,016

1,005

2,665
2,286 20.0%

1,800

1,874

1,065

30.0%

20.5%

2,319
1,783

1,071

20.7%

2,253

1,611

1,180
1,000

21.0%

23.0%

2,212
2,000

40.0%

36.5%

33.1%

4,384

41.6%

5,126

1,117

1,069

1,984
1,235

1,339

1,517
1,373
10.0%

0

0.0%
18/1Q

18/2Q

Revenue

18/3Q

18/4Q

19/1Q

Cost of Sales

19/2Q

19/3Q

SG&A

19/4Q

20/1Q

20/2Q

CoS ratio

20/3Q

20/4Q

21/1Q

21/2Q

SGA ratio

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

34

4.7 Quarterly Trend of Operating Stores, TRX
Volume and Value
Group-wide annual TRX value reaches ¥6.9 trillion※2※1

Operating stores: 184,355 stores, TRX volume approx. 820 mil., TRX value approx. ¥1.8 trillion.
（Stores）（¥100 Mil.）
180,000 18,000
16,000160,000 14,000（Reference）Online payment: TRX volume approx. 790 mil., TRX value approx. ¥1.6 tr.
Annual consolidated TRX value: approx. ¥6.9 tr.
GMV value excl. GMO-FG:
approx. ¥6.1 tr.

（10,000 trx）
90,000※480,00012,000140,000 10,000

70,0008,000
120,000 6,000

60,0004,000
100,000 2,000

50,00080,00040,00060,000

Proportion of spread revenue ≒50%
※Annual average basis (revised in
5% increments)

40,00030,00020,00020,00010,0000

0

Recurring billing TRX volume

Pay-as-you-go billing TRX volume

Operating stores

決済処理金額※1 Figure excludes a significant increase in operating stores from a specific merchant. If included, operating stores would be 244,356 (down 13.2% YoY).
※2 Operating stores are measured on an end-of-quarter basis. GMV value and volume are the total for the respective quarter.
※3 The graph is based using only online payment figures.
※4 Special factor caused by change in recognition of TRX volume for some merchants.

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

35

4.8

Consolidated Cashflow Statement（¥ Mil.）J-GAAP

55,000

FY2021 Q2 changes (¥ Mil.)
Operating CF:－2,113
Pretax profit+6,638Depreciation＋903
Operating receivables
and others－1,624
Advances paid
－11,517
Deposits received＋6,290
Income taxes－2,768IFRS

50,00045,00040,00035,00030,00025,000Investing CF:＋3,422
Deposits to subsidiaries andaffiliates－2,000W/drawals from deposits to subsidiaries and affiliates ＋5,000

20,00015,00010,0005,000
0-5,000-10,000-15,000
13/4Q

14/4Q

15/4Q

Operating CF

16/4Q

17/4Q

Investing CF

18/4Q

19/4Q

Financing CF

20/4Q
FCF

21/2Q

Financing CF:
ST borrowing
Dividend payout－6,467－2,000－3,821

FCF：＋1,308Cash &：
Equivalents

90,728※ 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.

36

Thank You Very Much

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange, Section 1)
URL： https://www.gmo-pg.com/en/corp/

For inquiries, please contact our IR team at the telephone number below:
Corporate Value Creation Strategy Division (IR Department)
TEL: +81-3-3464-0182
E-mail：ir-contact@gmo-pg.com

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

37