Financial Results Briefing for FY2021
Growth returns to cruising speed; Expanding business scale for post-2025 growth

November 12, 2021
67 th Investor Meeting

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

Agenda1. Summary of Financial Results for FY2021
2. FY2022 Forecast
3. Growth Strategy
4. Initiatives in Focus Areas
5. Financial Highlights and Reference Materials

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 November 12, 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 FY2021

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

4

1.1

Earnings Summary

Revenue & OP grew over 25%; DPS raised ¥7 vs. previous year
IFRS（¥ Mil.）FY2021 Guidance(% YoY)FY2020

Achievement
vs. Guidance(%)

FY 2021 Results(% YoY)

Revenue

33,046

39,792(+20.4%)

41,667(+26.1％)104.7%

Operating
Profit10,38812,985(+25.0%)12,987(+25.0％)100.0%

Pre-tax Profit

10,98912,426(+13.1%)

13,285(+20.9％)106.9%

7,624

7,930

(+4.0%)

8,818(+15.7％)111.2%

11,839--14,889(+25.8％)

-

¥52

¥54

(+¥2)

¥59

(+¥7)

-

ProfitAttributable to
Owners of Parent

EBITDADPS (¥/shr)

Operating stores at
end of Sep. 2021

KPI(%YoY)

123,938（＋16.4％）

Consol. TRX Volume(Oct. 2020 ～ Sep. 2021）

Consol. TRX Value(Oct. 2020 ～ Sep. 2021）

Approx. 3.54 bn (+36.9％) Approx. ¥8.0 tr. (+36.3％)
o.w. online approx. 3.39 bn (+34.7％) o.w. online approx. ¥6.8 tr. (+29.7％)※ Due to the deconsolidation of MACROKIOSK in September 2020, the above figures for revenues, operating profit, pre-tax profit and EBITDA in FY2020 present the amounts forcontinued operations only and exclude 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 a certain merchant and exclude stores related to a major delivery company. If included, operating stores would be 311,477 stores (down 3.9% YoY).

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

5

1.2 Revenue by business model (Q4 cumulative)
Payment related services grew strongly despite the hardcomps from last year’s strong nesting demand
Spread41,667（¥ Mil.)40,00035,00033,046

18,913＋＋＋－30,00016,02325,00010,86520,00015,000

6,573

8,931

Online payment (PG and EP) ＋24.4％ YoY
Early Payment
Overseas lending
Tighter credit control for
GMO Payment After Delivery etc.

Fee
＋21.7％ YoY＋ Online payment (PG and EP) ＋31.5％ YoY＋ Offline payment－ Backlash from COVID-related special
demand for remittanceStock

10,000

5,709

5,000

5,314

2,380

InitialStock

Q4 Cumu. FY2021

Fee－＋15.1％ YoY

Delays in Financial Institution businessdue to COVID

Initial+123.2％ YoY＋ Strong terminal sales in offline payment

0
Q4 Cumu. FY2020＋18.0％ YoY

Spread※ 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

1.3

Segment results (Q4 cumulative)

Payment Processing Business grew 33.7% from robust online
payment and offline terminal sales
Segment OP

Segment revenue（¥ Mil.）Up 26.1％ YoY (Consol.)

45,000（¥ Mil.）717＋19.2％ YoY

13,50035,000

10,151602

25,000＋7.8％ YoY

9,416

30,812

11,50023,037

15,000＋33.7％ YoY

11,581＋ Growth of online payment＋ Expansion of offline payment

5,500

o.w. online payment+ 23.0%

-106

3,500

5,000

1,500

（ー）
－ Impairment of GMO-MRT due
to recent business conditions
and underperformance fromplans(500) Q4 Cumu.
20/累4Q

Q4 Cumu.
FY2021

21/累4Q

Payment Processing Business

14,424 ＋24.6％ YoY

7,500

10,000Q4 Cumu.
20/累4QFY202010,3889,500＋ Growth of online payment＋ Expanding of offline payment

20,0002,093 ＋16.3％ YoY＋ Strong Early Payment service＋ Control of provision for
doubtful accounts
12,9871,799＋ Growth in Early Payment－ Tighter credit control ofdomestic MSB

30,000077

15,500＋ Strong GMO-MRT－ Sluggish SSL service

40,000Up 25.0％ YoY (after consol. adjustments)

FY2020

Money Service Busines (MSB)

Q4 Cumu.
21/累4QFY2021

Payment Enhancement Business

Operating Profit※ GMO-MRT: GMO Medical Reservation Technologies Co Ltd.
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

1.4.1 GMO-PG non-consolidated performance(quarterly trend)
Growth sustained at 20% cruise speed level despite falloff of
COVID special demand% YoY
2-yr CAGR
GMO-PG non-consolidated: merchandize and nonmerchandize EC revenue and OP
6,000

Merchandize revenue from a certain merchant (LHS)
Revenue excl. a certain merchant (LHS)
Non-merchandize revenue (LHS)

3,500

OP (RHS)
5,000

3,000

2,500

4,000

＋12.8％ ＋ 19.8%

4,000

百万

百万

(¥ Mil.)Revenue

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

Revenue breakdown of major items:
Online payment＋14.6％ ＋ 18.6%

Merchandize EC
ApparelFood & Beverage＋ 1.4%－45.1％＋48.8％
Cosmetic, Health foods ＋10.8%＋ 11.2%－10.1％＋42.5％＋18.8%

Non-merchandize EC ＋23.8％
Digital content＋39.4％
Utility＋52.2％
Travel & Ticket＋22.7%＋ 20.1%+37.3％＋27.7％－10.5%

1,000

Money Service Business

1,000

500

0

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

Remittance service－ 6.0％
Early Payment service ＋76.1％
Overseas Lending＋64.8％＋ 26.9%＋ 3.3%－ 6.1%※ GMO-PG stands for GMO Payment Gateway, Inc.

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

8

1.4.2

Performance of GMO-EP, GMO-PS and
GMO-FG (quarterly trend)

EP/PS affected by hard comps from peak COVID demand inprevious Q4; strong terminal sales at FG
GMOｰPS

GMO-FG Consol.

Revenue＋10.0％ YoY(2-yr CAGR) ＋22.4％

Revenue＋ 1.0％ YoY(2-yr CAGR) ＋22.7％
Run rate 1,000/mnth acquisitions New merchant+9.4％
acquisitions(¥ Mil.)1,500（trx.）(¥ Mil.)

4,000

2,000

KPI (RHS)

Revenue (LHS)

Revenue and major KPI’s by company
GMO-EP Consol.

Revenue(2-yr CAGR)＋163.0％ YoY＋88.2％

Operating terminals ＋69.4％（trx.） (¥ Mil.)（Unit）

200

140,000
2,000

3,000
1,000

120,000
1,500

150
100,000

1,500
2,000

1,000

100

80,0001,000

60,000

500
1,000

500

50

40,000500

20,000

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

0

20/1Q

Backlash from windfall demandlast year and tighter credit
control to reflect macro
conditions

0

19/4Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

0

20/1Q

Merchandize EC demand in the
SME sector cycles through

0

19/4Q

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

20/1Q

0

19/4Q

0

Cashless terminal sales
increases
FG’s initial revenue ＋261.7％※ FG consolidated initial revenue is and excerpt from GMO-FG’s disclosed financial results.
GMO-EP: GMO Epsilon, GMO-Med: GMO Medical Reservations Technology. GMO-PS: GMO Payment Service, GMO-FG: GMO Financial Gate and GMO Card Sysem

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

9

1.5

FY2021 Takeaways

Execute on midterm growth initiatives; agile groupmanagement thanks to diversification and 25% OP growth
Medium tolong term

Short term

Business

Organization

Financial•

Fully commenced rollout of payment platform to industry leaders•

Furthering collaboration with major business partner•

Sustain 25% OP growth despite tighter credit control•

Expand BNPL payment service•

EC usage in the “New normal” lifestyle is here to stay•

Strong terminal sales to lay the groundwork of future offline payment•

GMO-PS and GMO-EP seeking to return to growth after the last year’s windfall•

Over 25% growth in revenue, transaction volume and value•

Continued strengthening sales capability through management hirings and reorganization•

Strengthened development capability with Buffort becoming part of the Group•

Capital increased from CB conversion, equity ratio uplifted by 7.9％ ※•Raised ¥21.1bn from new CB issue※ Calculated by using total assets as of end September 2021 as denominator, and the increase in equity dur to CB conversion as numerator.

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

10

2.

FY2022 Forecast

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

11

2.1 Positioning of FY2022 for achieving 2025 targets
Create over 2x prospective projects by moving from initiatives
to concrete projects■ OP plans and target for prospective project amounts (¥ bn.)
OP (Actual and Plan)

Prospective projects

Current prospective projectamount for 2025 target

FY2025 target
amount(TO BE basis)

FY2023targetamount（As-Is 2021/11/12）

25.0

23.0
12.9

FY2021

16.2

FY2022

FY2023

FY2024FY2025

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

12

2.2

Consolidated forecast

Guidance for revenue growth of 20%. OP growth 25%
FY2022 Consolidated Earnings Forecasts
IFRS(¥ Mil.)FY2021
ActualFY2022
Forecast% YoY

Revenue

41,66750,000+20.0%

OP12,987

16,234+25.0%

Pre-tax

13,285

15,538+17.0%Net Profit

8,982

10,048＋11.9%

8,818

9,860

＋11.8%

¥59

¥66

＋¥7

ProfitAttributable to Owners of
ParentDPS (¥/shr)

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

13

売上収益…

2,000

Oct-2019

Jul-2020

Jan-2022

Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
Sep-2022

Aug-2022

Jul-2022

Jun-2022

May-2022

Apr-2022

Mar-2022

Feb-2022

Act.

Dec-2021

Plan ＋20.4％

Nov-2021＋26.1％

Oct-2021

Consolidated revenue (monthly trend)

Sep-2021

FY2021

Aug-2021

Jul-2021

Jun-2021

May-2021

Apr-2021

Mar-2021

Feb-2021

Jan-2021

Dec-2020

Nov-2020

Oct-2020

Sep-2020Act.

Aug-2020

4,500

Jun-2020

4,000

May-2020

Apr-2020

Mar-2020

Feb-2020

Jan-2020

Dec-2019

5,000

Nov-2019(¥ Mil.)Sep-2019Act.

Aug-2019

Jul-2019

Jun-2019

3,500

May-2019

Apr-2019

Mar-2019

Feb-2019

Jan-2019

Dec-2018

Nov-2018

Oct-2018

2.3
Topline guidance explained

Return to 25% growth trend, but guidance is conservative tofactor in various risks
FY2022？ %Plan ＋20.0％

25％ growth trendline

FY2020＋22.7％

Plan ＋14.0％

3,000

2,500

State of Emergency

During COVID

14

2.4

Scenario to achieve revenue guidance

Projects underway amount to 3x the “gap” (= difference
between revenue plan and organic revenue amount)■ How the revenue plan, the “gap” and various initiatives all tie in(¥ Mil.)Actual +26.1％

55,000Plan+20.0％

Initiatives toclose the Gap

50,00045,0005,000

Gap

35,0003,561

Organic growth

10,050Organic growth

30,00025,00041,66720,00015,00010,800Gap

2x GapPlan+20.4％

40,000Initiatives toclose the Gap
3x Gap33,046

34,792

FY2020 Act.

FY2021 Plan

46,43910,0005,000
0FY2021 Act.

FY2022 Plan

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

15

3.

Growth Strategy

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

16

3.1

Acceleration of OP growth

The incremental OP amount has increased by expanding scopeof the business
2005
2010
2015
2020 2021
2025
TRX Value (¥ tr.)
0.3

0.8

x2.5
Operating Profit

2.0

5.8

8.0

20～25

x2.5

x3

x3.5～

2025

¥25 bn¥10bn in 20 years

OP increment of¥6bn in 2 years

2022¥16.2 bn2020

¥10.3 bn2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

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

17

3.2

Factors for sustainable growth

Aim for higher enterprise value and sustainable growth byensuring execution of the 3 factors
2000

Payment-centricbusiness expansion

2015

2021

Financial strategy andbusiness investments for
new value creation

Creating and fostering
new businesses(incl. Group co.)Payment-centricbusiness expansion
Create an application
platform

Secure personnel recruits and talent development

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

18

3.3.1Business expansion strategy

Digitalize payment aspect of core businesses of large companies“Mandatory”

Core

Actual use case

Value proposition
Transforms into core business
Application platform

Industry specific platform

Digitalization of payment,
invoice, remittance, salary

Issuing/Acquiring

Margins

Scale

High

Large

Low

Small

SMS Choice of Payment

BNPL
Inv. into cutting edge
Fintech/Payment companies

Main

EC business becomes mainstay
systemRevenue expansion; cost
reduction

Niche

PG Multi-Payment Service
Money Service Business
Online advertising service

Cashflow improvement

Inv. into domestic start-up tostrengthen payment business

EC adoption as a secondary
systemCredit card payment business“Nice to have”
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

3.3.2

Application infrastructure

Provide DX platform to the core businesses of various
sectors/industries
Niche

Main

Application infrastructure to transform the core business
Acquiring support to JFR Card
Payment platform to global major players
D2C support to large food & beverage companies
Reservation system for hospitals & clinics

Creditcard
payment

Payment
×
FinTechDX

Payment platform to a major carrier
Promoting e-contract and cashless contracting,
Payment solution with biometric authentication
Paperless and digitalization of invoicing process
System infrastructure for FI’s cashless service
Ginko Pay, Issuing/Acquiring
Enterprise-version Pay provided to Toyota Group
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

3.4.1

Investment and Financial strategy

Accelerate the investment/growth cycle to scale up business(¥ Bn.)
70
60

(Yen)
Equity(LHS)

Investment balance(LHS)

DPS (\/shr)
(RHS)

70

Procurement

60

50

50

40

40

30

30

20

20

10

10

0

0

Considering fund procurement for MSB
expansion
1.
2.

2005
IPO
+¥1.2 bn

2015

2018

Investment

4.

2021

CB issue CB conversion/
New CB issue+¥8.0bn +¥17.5bn +¥21.1bn

3.

Create and foster new businesses witha long-term view
Create synergy through strategic
minority stakes in start-ups
Create business opportunities throughCVCs
Target M&A are payment/fintech
space in Asia and NAmerica where we
can oversee. Be selective and maintaininvestment and financial discipline

TPA

Stock option,
Director’s BIP, J-ESOP

Share based
compensation

GrowthShareholder
returns

Sustain 25% OP growth

Continue stable dividends while keeping acertain payout level and securing internalfunds for growth※ Figures before 2016 are based on J-GAAP, figures after 2017 are based on IFRS.
Investment balance is the sum total of investment securities and securities account by equity method
DPS adjusted for stock split carried out in October 1, 2014 of 1:2 and in October 1, 2018 of 1:2.

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

21

3.4.2Creation and expansion of new business

Scale up newly created businesses through action plans
during the Growth phase2013

Revenue(¥ Bn.)

2021

Revenue(¥ Bn.)

5.0～

GMO-PS GMO-FG GMO-EP

5.0～

Several projects in
preparation phase
Cycle byGMO
Condo Pay
GMO B2B Pay On Credit
Instant Salary byGMO etc.

GMO-EP（2005～）BaaS

GMO-FG

Overseas lending
GMO-MRT

GMO-PS （2010～）（2013～）
010～

Preparation phase

Years since
establishment

Ramp up phase

Years since0

10～ establishment

Growth phase

Profit contribution phase※ Operating margins differ by business and is in the range of 10 ～ 50％.
GMO-EP：GMO Epsilon, GMO-PS：GMO Payment Service, GMO-FG：GMO Financial Gate, GMO-MRT：GMO Medical Reservation Technology

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

22

3.4.3 Strategic investment (Minority stake into
start-ups)
Create strategic synergies while also securing investment returns
Strategic investment(Japan)Strategic equity stake(Overseas)

9.5x(¥ Bn.)

2.0x

IRR
59.2％

4.2x

IRR
10.9％

Market price + Sellout
value (End Sep. 2021)

・Expand revenue and remittance as
the business part to the investee

IRR
26.3％

9
Companies

13
Companies
Investment Amount

GMO Global Payment Fund

Investment AmountMarket price + Sellout
value (End Sep. 2021)

・Build partnerships with investees
to expand overseas business13
companies
Investment AmountMarket price + Sellout
value (End Sep. 2021)

・8 year into investment, ourinvestees are riding the Fintech
megatrend and expanding earnings

・Expand revenue through lending to ・Profit contribution from investment
investees in the GMO-VP CVC fundfrom GMO-VP, etc.
(2020 approx. ¥0.3bn,※ GMO Global Payment Fund: A CVC fund where GMO-PG acts as the General Partner (GP).
2021 approx. ¥0.4bn)
Equity method affiliates; GMO-VP stands for GMO Venture Partners
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

4.

Initiatives in Focus Areas

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

24

4.1

Broader EC

Targeting large merchandize/non-merchandize EC operators,
Quarterly trend of GMO-PG nonfocus on SME sector
consolidated TRX value for B2C EC sector
OP (¥ bn.)

※

2025

(Act.)(Plan as of 2021)

9.5

18.0～22.0

1,600

Growth scenario
1）Inroads to non-merchandise andmerchandise EC
2）Payment p/f to industry leaders3）Approach GMPs (Global Major Players) andtarget domestic/global large merchantsthrough partnerships with GMPs
FY2021
2H

FY2022

1H※（¥ Bn.）(incl. merchandize and non-merchandize)
十億

2021

Merchandize EC
Non-merchandize EC

1,400

1,200

1,000

800

2H

GMP Co. C

600

SME sector
GMP Co. B
Real Estate PF

400

21/9

21/6

21/3

20/12

20/9

※ Figures show the transaction value of B2C EC merchants that use the PG Multi-Payment service

20/6

0

20/3

GMV steadily increasing from Nov. 2020

19/12

TEPCO EP

19/9

Revenue contribution from Q1 FY2021
19/6

GMP Co. A

200

19/3

Commenced partial services NEW

18/12

Utility Co. B

18/9

First phase started in end Sept.NEW

18/6

Telecom PF

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

25

4.2 BaaS & Cashless（Embedded Finance）

Target OP ¥1.0 bn in 2025 by service diversification andlateral expansion within the sector
2021(Act.)

0.6

OP (¥ Bn.)

Stock revenue from services to financial institutions(Q4 standalone)2025(Plan as of 2021)

1.0～■ Ginko Pay■ Issuing/Acquiring

Growth scenario1）Platform customized to specific customers■ Other＋20.8％ YoY2）Lateral expansion within sector incl. large
companies
3）Service diversification and approach toother operators including retailers

Ginko Pay

＋23.8％ YoY

Progress on Priority Initiatives and new projects
FY2021
2H

FY2022
1H

2H
Issuing/Acquiring

Large B2B operator＋23.5％ YoY

JFR Group
Ginko Pay
Issuing/
Acquiring

Other
Q4 FY2020

Q4 FY2021

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

26

4.3

Offline & IoT

Capture the gigantic offline market by leveraging the synergy between
IoT & EC business and stera
Quarterly trend GMO-FG & GMO-CAS’s ※3
2021(Act.)

0.58

700

2.0～

600

Growth scenario
1) Accelerated acquisition of large
500
merchant thanks to stera2) Business reorganization and enhanced
collaboration at SMBC GMO PAYMENT
4003) Synergy between online/offline (e.g. stera)4) Inroads into Unattended Market
3005) Tap-and-Pay implementation in Mobility domain
Progress on Priority Initiatives and new projects
FY20212H

1,800＋261.7％■Stock (LHS)＋38.1%■Fee (LHS)＋130.3％

1,600

1,400

＋13.2％
1,200

1,000

800

600
200

FY2022
1H

400

2H

100
200

Marketing activities underway sinceApril through collaboration with SGP ※2
0

21/4Q

21/3Q

21/2Q

21/1Q

20/4Q

20/3Q

20/2Q

20/1Q

19/4Q

19/3Q

19/2Q

19/1Q

0

18/2Q

Unattended
Market■Initial (RHS)■Spread (LHS)

18/1Q

stera

(¥ Mil.)

% YoY

18/4Q

OP（¥ bn.）revenue by business model

18/3Q

※1

2025

(Plan as of 2021)※1 The OP target for 2025 includes companies other than GMO Financial Gate and GMO Card System. ※2 SGP: SMBC GMO PAYMENT※3 Figures are taken from GMO Financial Gate’s disclosed financial statements.

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

27

4.4

FinTechAim to return to 25% growth through new merchantacquisitions for Payment After Delivery and new services
2021(Act.)

OP（¥ bn.）

2025

Q4 cumulative revenue for FinTech services(Plan as of 2021)

2.0

Instant Salary byGMO
commenced in Q4

3.0～
＋7.8％

Growth scenario
1) Asset shift to high margin services ※Remittance service
Targeting new merchants on
emerging needs at new
merchant

2) 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) Financial inclusion: Instant Salary byGMO,
GMO Payment After Delivery

GMO Payment After Delivery
Aiming to increase merchantacquisition while maintaining
tighter credit
Lending
Closely watching macro
environment to ascertain
timing to expand

Progress on Priority Initiatives and new projects
FY2021
2H

FY2022

1H

2H

Instant Salary byGMO Good progress on sales activities NEW
B2B Payment
Guarantee
GMO B2B Pay on
CreditQ4 Cumu. FY2020

Q4 Cumu. FY2021

Lending
レンディング（国内外）
GMO Payment After Delivery
GMO後払い早期入金サービス
Early Payment
送金サービスRemittanceB2B Factoring
BtoBファクタリング

ファイナンスリース
Finance lease※ 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.

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

28

4.5.1

Global: Investing & lending strategy (1)Growth acceleration from synergy between growing marketsof Asia, India and North America
2021

2025

(Act.)※1

OP（¥ bn.）(Plan as of 2021)-

3.0～
North America
Japan

Profit center

Innovation
centerSE Asia, India

Growth center

Payment Processing
transaction value＋11.9%MSB Revenue

Asia & India’s Fintech market activity increasing＋14.7%

Investment activity into
※2
Indian Fintech companies

Investment activity into
ASEAN Fintech companies ※2
USA－27.1%

4,500

3,000

Asia
＋72.7%
Q4 Cumu.

Q4 Cumu.

Q4 Cumu. Q4 Cumu.

FY2020

FY2021

FY2020

3,000

102

68

120
＋45.7%
YoY

80＋47.8%
YoY
60

90
2,000

2,393＋138.5%

1,403 ＋204.2%
40

60
1,000

1,500

20

30

FY20210020/2Q 20/3Q 20/4Q 21/1Q 21/2Q※1 Global OP in FY2020 is included in FinTech.
Total deal value（M USD）
※2 KPMG “Pulse of Fintech H1 ‘21”
Calculated be subtracting the values for China, Hong Kong, Australia and India from the ASEAN value as reported by ASPAC.

0

0
20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

Number of delas

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

29

4.5.2Global: Investing & lending strategy (2)Gain cutting edge knowledge by building portfolio of leadingedge Fintech companies
Country/
Region2022 GDP growth※1(%)

Major lending & investing /business portfolio

SE Asia

5.8

Benefit from expanding market; invest & lend topromising local companies

India

8.5

Capture expanding market; invest & lend topromising local companies

USA

5.2

Invest & lend to promising local companies,
transfer, feedback and acquire latest knowledge

Method of approach

Green Finance
SEE P.47
NEW

Leading edge Fintech companies※4

EBITDA•••

Major PSP in SE Asia focusingon Thailand（＄M）

Revenue350

CAGR
122.2%

Major BNPL provider
mainly in Indonesia

300•

Direct lending and equity
stake through GPF ※2

200•

Established strong market
position, benefiting fromhigh market growth•

Direct investment (29.3% stake)and GPF investment ※2
Acquired global major player’s
local presence and improved
sales portfolio
18/9 19/9 20/9 21/9

Executed impact loan

※3

※1 Excerpt from IMF’s “World Economic Outlook October”※2 GPF stands for GMO Global Payment Fund investment partnership※3 2C2P figures show Q3 cumulative numbers※4 Kredivo’s “INVESTOR PRESENTATION August 2021” disclosure materials for SPAC listing plan.

250

150
100
50
0

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

30

5.

Financial Highlights and Reference Materials

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

31

5.1

Balance Sheet Changes

Financial strength improves as equity reaches ¥57.8bn, an
increase of ¥17.0bn from Euro-yen CB conversion
Asset（¥ Mil.)215,455
192,022200,000

Liabilities/Equity（¥ Mil.)215,455
192,022200,000

78,251150,000

139,990

104,523

150,000

95,830100,000

18,021

16,63028,822

27,171

16,814

16,74550,000
Prov. For53,530 doubtful
accounts－1,968

For
57,778 Prov.
doubtfulaccounts

70,408 Prov. For－2,574

9,852

End-Q4 FY2019

End-Q4 FY2020

End-Q4 FY2021

※2

Other

Cash & Equivalents

18,931

17,19918,05015,123－2,6919,590

MSB Related

50,000

doubtfulaccounts

7,275※1

25,741

100,000

30,670Inv. Related

86,75146,75252,0130

139,990

33,453

27,5390
End-Q4 FY2019

End-Q4 FY2020

19,593 New
15,158

CB issue

18,890Equityincreases by
57,820 ¥17.0bn
from CBconversion
End-Q4 FY2021

EquityMSB Related ※2

Borrowings

Corp. Bonds

Other

Merchant Deposits ※3※1 Securities classified under investment securities and investment accounted for under the equity method.
※2 MSB Related Asset = Lease assets, Short term loans, 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.

32

5.2 OP and Pre-tax Profit Waterfall chart (Q4Cumulative)
Strong FG revenue growth offset the cost-of-sales increase;continuing to control credit related cost
Pre-tax profit YoY: waterfall chart
Equity （¥ Mil.）(+20.9% YoY)

OP YoY: waterfall chart(+ 25.0% YoY)（¥ Mil.）SGA
Other
GP increase increase Otherexpenses＋4,251 －1,607 revenue increase
increase－149＋103
12,987

Financial Financial method
income expense income
increasedecrease decrease
OP increase－500＋50＋2,598 ＋147
13,285

10,989・FX loss decrease＋44

10,388・Personnel cost －1,563
・Ad expense －309
・One-off provision inprevious FY/reversal incurrent FY＋260

・ CoS ratio rises
・ Revenue increase－1,985＋6,237・ Increase in gains on inv.
partnerships＋114
・ FX gain increase ＋30
・Equity method income/loss－201
・Decrease in gains from change
in interest of affiliates －298

Q4 Cumu.
Q4 Cumu.
Q4 Cumu. FY2020
FY2020
FY2021
Pretax profit
OP
OP※ The “+” and “-” sign denote the direction of the impact to operating profit and pretax profit.

Q4 Cumu. FY2021
Pretax profit

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

33

5.3.1

Revenue by Business Model (Q4 standalone)

Steady progress of online payments and strong offline terminal
sales（¥ Mil.）Spread11,132

10,000

8,927

4,731

4,414
2,922
5,000

＋
＋
＋
－

Online payment in line with expectation
Early payment service
Overseas lending
Tighter credit control of
GMO Payment After Delivery etc.
＋15.6％ YoY

Fee
＋
＋
－

Online payment
Offline payment
Hard comps for remittance from COVID windfall

1,723

2,527

Stock
－

1,478

Stock

Delays in FI business due to COVID

Initial0Initial＋16.6％ YoY

1,754

506
Q4 FY2020＋7.2％ YoY＋

Q4 FY2021

Fee+246.3％ YoYStrong offline payment terminal sales

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.

34

5.3.2

Quarterly Trend of Revenue by Business Model

J-GAAP（¥ Mil.）
5,000

IFRS

4,808

4,665 4,707

4,731

4,414

4,500

4,290

4,000
3,646
3,450

3,500

3,672

3,289 3,365
3,136

3,000
2,433

2,500

2,558

2,671

2,922

2,816
2,532

2,527

2,057

1,500

1,000

2,083

1,876

1,259

1,383

1,441

500

344
142

151

185

1,520

1,662 1,767

1,120 1,192
1,026

794
749
724
667
786
748
728
687
663
161

1,266 1,406

1,527

713

723

451
236

2,669

2,383

2,291

2,000

2,559

2,713

749

791

828

889

1,907

1,847 1,813

1,717
1,610
1,552
1,461 1,478 1,522
1,359 1,411
1,261
1,180 1,222 1,236
1,131

248

386

297

1,723

876

920
659

562
324

1,754

1,825 1,937

390

316

323

362

725
490

506

0
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 21/3Q 21/4Q
Initial

Stock

Fee

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

35

5.3.3

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

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

20,00015,00010,000

Stock
5,000

Initial

0
04/9

05/9
TSE
Listing

06/9

07/9

08/9

09/9

10/9

11/9

12/9

13/9

14/9

15/9

16/9

17/9

18/9

19/9

20/9

21/9

22/9E

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

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

36

5.4

Segment Results (Q4 standalone)

Payment Processing Business revenue grew 34.2% fromrobust online payment and offline terminal sales
Segment operating profit

Segment revenue＋24.7％ YoY (Consol.)（¥ Mil.）（¥ Mil.）+5.9％ YoY (after consol. eliminations)

4,000

12,000185＋21.2％ YoY＋ Strong GMO-MRT－ Sluggish SSL service

10,000153＋1.8％ YoY
2,500
＋ Growth of early payment service－ Tighter credit control ofdomestic MSB
2,000－ Hard comps for remittance fromprev. year’s COVID windfall

2,548
6,000

8,358

＋34.2％ YoY＋ Growth of online payment＋ Expansion of offline payment

6,228

4,000

462
2,610

2,933

1,000

0
Q4

FY2020

FY2021

Payment Processing Business(500)

Money Service Business (MSB)＋15.2％ YoY＋ Growth on online payment＋ Expansion of offline payment

-193

-2

0

Q4

－12.6％ YoY－ Tighter credit control ofdomestic MSB－ Hard comps for remittanceservice from COVID windfall－ Preventative valuation loss of acertain overseas investee

3,378

1,500

500

2,000

2,764

3,000

2,593

8,000

404

3,500

Q4

Q4

FY2020

FY2021

Payment Enhancement Business（ー）－ Impairment of GMO-MRT
due to recent businessconditions andunderperformance from plans
Operating Profit

GMO-MRT stands for GMO Medical Reservation Technologies.
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.

37

5.5.1

FinTech: Assets & Profit Growth (Q4 Cumulative)

Profit increased 16.3% from expansion of high-margin
services and control of credit-related costs（％: % YoY)
MSB related assets(end-Sept.)－17.5％+21.9％

Segment revenue
+7.8％

＋3.7％

Segment profit+16.3％

＋6.7％
＋3.2％

＋6.1%
＋33.3％＋63.2％＋61.5％End-Q4 FY2020
Lending

End-Q4 FY2021

Early Payment+8.9％
Q4 Cumu. FY2020

GMO Payment After Delivery※1

Q4 Cumu. FY2021

RemittanceB2B Factoring

Q4 Cumu. FY2020※2

Finance Lease

Q4 Cumu. FY2021※2

B2B AR Guarantee※2

Condo Pay

※1 Figures for GMO Payment After Delivery assets (accrued revenue) are net of provision for doubtful accounts.
※2 YoY figures are not displayed for Finance lease, B2B AR Guarantee, Condo Pay.

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

38

5.5.2

FinTech: Assets & Profit Growth (Q4 Standalone)

Preventative evaluation loss from a certain overseas investee
and conservative operation given the business environment
MSB related assets(end-Sept.)+21.9％－17.5％

Segment revenue+1.8％

Segment profit（％:YoY)－12.6％－33.6％
－6.0％

＋3.2％

+1.0%
＋33.3％＋52.3％＋61.5％End-Q4 FY2020

Lending

Early Payment

End-Q4 FY2021+19.9％Q4 FY2020

GMO Payment After Delivery

Remittance

Q4 FY2021
B2B Factoring

Q4 FY2020※2

Finance Lease

Q4 FY2021※2

B2B AR Guarantee※2

Condo Pay

※1 Figures for GMO Payment After Delivery assets (accrued revenue) are net of provision for doubtful accounts.
※2 YoY figures are not displayed for Finance lease, B2B AR Guarantee, Condo Pay.

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

39

5.6.1

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
IFRS（¥ Mil.）11,132
10,646

9,767
10,000

41.1%

8,246

40.9%

7,945

7,769
37.6%
35.9%

36.3%
8,000
6,098

6,459

7,295

6,563

36.4%
6,000

9,030

40.2%

33.4%

33.2%

35.3%

35.4%

8,160

35.5%

3,098

2,494

2,595

2,382

2,035

2,143

2,320

3,004

2,581

2,791
2,807

39.6%

36.8%

37.5% 40.0%
34.8%

35.2%

32.7%

2,646
2,818

2,664
2,986

3,181

33.8%
35.8%

35.2%
33.3%

2,997

42.7%

36.6%

3,720
4,000

8,623
36.7%

36.1%

50.0%

8,927

9,356

41.2%

10,121

26.7%

3,292

3,433

27.9%

3,813
3,174

2,488

28.8%
31.3%

4,169

3,872
2,817

30.0%

32.6%

3,466
3,522

3,599

3,982

20.0%

3,169

2,302

10.0%

2,000

0

0.0%
18/1Q

18/2Q

18/3Q

18/4Q

19/1Q

Revenue

19/2Q

19/3Q

Cost of Sales

19/4Q

20/1Q

SG&A

20/2Q

20/3Q

20/4Q

CoS ratio

21/1Q

21/2Q

21/3Q

21/4Q

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 change in accounting
standards.
※ 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.

40

5.6.2 Quarterly Trend of PG and EP’s CoS and
SGA ratio
Cost of sales ratio for online payment business trending stably(¥ Mil.)
7,000

47.4%

6,709

45.2%

45.3%

44.8%

36.7%

4,297

36.5%
4,816

5,032
4,840

4,663

50.0%

6,110
36.8%

5,000

5,142

5,126

41.2%

39.7%

40.0%

5,271
32.5%

31.6%

34.2%

33.1%

33.3%

4,384

3,937
23.6%

30.0%
24.2%

24.3%

21.0%

23.0%
20.7%

3,000
2,212

1,000

7,122

41.6%
36.7%

2,000

6,878

6,370

6,000

4,000

6,858

1,785

928

1,577
1,039

20.7%

1,043

20.9%

21.2%

2,649

20.2%

1,016

2,286

1,800

1,592
1,065

21.5%

1,984

1,874

1,005

22.1%

2,665

2,319
1,783

1,071

20.9%

2,253

1,611
1,067

21.0%

20.5%

1,069

1,117

1,339

1,235

1,373

22.6%

1,517

2,932
20.0%

2,177

1,478

1,609
10.0%

0

0.0%
18/1Q

18/2Q

18/3Q

18/4Q

Revenue

19/1Q

19/2Q

19/3Q

Cost of Sales

19/4Q

20/1Q

SG&A

20/2Q

20/3Q

20/4Q

CoS ratio

21/1Q

21/2Q

21/3Q

21/4Q

SGA ratio

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

41

5.7.1 Quarterly Trend of Operating Stores, TRX
Volume and Value
Group-wide annual TRX value reaches ¥8.0 trillion※1※2

Operating stores: 123,938 stores, TRX volume approx. 970 mil., TRX value approx. ¥2.0 trillion.

(10K transactions)
100,000（Stores）（¥100 Mil.）
18,000140,000 16,000
14,000120,000 12,000（Reference）Online payment: TRX volume approx. 920 mil., TRX value approx. ¥1.7 tr.
Annual consolidated TRX value: approx. ¥8.0 tr.
excl. GMO-FG:
approx. ¥6.8 tr.

80,00010,000100,000

8,000
6,000
60,0004,000
80,0002,000

60,00040,000

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

40,00020,00020,0000

0

Recurring billion trx volume

Pay-as-you-go billing TRX volume

Chg. In payment processing method at a large merchantOperating stores

TRX Value※1 Figure excludes a significant increase in operating stores from a specific merchant. Figures exclude the stores related to a large delivery company from Q1 FY2017. If included, operating
stores would be 311,477 (down 3.9% 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.

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

42

5.7.2

TRX volume and value (Q4 standalone)

Return to baseline growth after windfall COVID effect tapers
Quarterly trend of online payment TRX volume＋27.7% YoY
TRX Volume(Mil.
transactions)Certain merchant

Quarterly trend of online TRX value
TRX Value＋23.3% YoY(¥ Bn)

1,000

2,000

900

1,800

800

1,600

700

1,400

600

1,200

500

1,000

400

800

300

600

200

400

100

200

0

0

Digital content
DeliveryFood+45.1% YoY+82.8% YoY+51.0% YoY(Impact from certain merchant: －4.9%)

Digital content
Utility
Travel & Ticket

Certain merchant+67.9% YoY+29.3% YoY+24.4% YoY(Impact from certain merchant: －5.1%)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

43

5.7.3

Data Book

Data on major financial information and KPIs will be posted
on our website starting this Quarter.
Data Book (FY Ending September 2021)
URL：https://www.gmo-pg.com/en/corp/newsroom/pdf/211112_gmo-pg_data_en.pdf
Data Book (up to FY Ending September 2020)
URL：https://www.gmo-pg.com/en/corp/newsroom/pdf/211112_gmo-pg_data_past_en.pdf
Data Book contains:(image)・Revenue by business model・Segment information
・Operating store, TRX Volume and Value
・Summary of earnings of major consolidated subsidiaries

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

44

5.8.1

Consolidated Cashflow Statement

Operating CF turns negative from increase in advances paid
from expansion of Early Payment service（¥ Mil.）J-GAAP

55,000IFRS

50,00045,00040,00035,00030,00025,00020,00015,00010,0005,000
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

21/4Q

FY2021 changes by item (¥ Mil.)
Operating CF:－6,343
Pretax profit+13,285
Depreciation＋1,896
Receivables (operating and other)－1,504
Advances paid
－14,281
Payables＋933
Deposits received－2,471
Income taxes－4,653
Investing CF:＋2,230
Deposits to subsidiaries/affiliates－2,000W/drawals from deposits to
subsidiaries/affiliates ＋5,000
Financing CF:＋12,781
Repayment of borrowings －3,823
CB issue＋21,057
Dividend paid
－3,826
FCF：－4,112
Cash & Equivalents: 104,523※ 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.

45

5.8.2

Changes in the consolidated CF statement

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

Deposits received(Liability)

Liability

Advances paid
(Asset)Asset

Operating CF

GMO Payment After Delivery Accrued revenue(Asset)Asset

Operating CF

OthersAsset

Yearly fluctuations can be large as annual
TRX value of trillions of yen can be carriedover to following year

Money Service Business
Early Payment service

Operating CF

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

46

5.9 Promoting financial inclusion throughimpact loan
Lending to microfinance provider Satya Green Finance through Investree
B2C

Strategic angle

B2B•

Re-acceleration of global investment & lending
strategy•

Operates P2P loan platform providing factoring
services to SMEs•

A beachhead to the new growth phase of India••

Advantage through cutting edge technology•

Earnings model with attractive margins

Enables financial access through technology tosupport economic activity of SMEs and improve living
standards•

Promoting impact finance•

Executed green finance to major electric motorbike
dealer PT Gesits Bali Pratama in November 2021•

Encourages eco-friendly technology thereby
contributing to global climate change prevention

Satya MicroCapital Ltd
Established

October 2016

Locations

264 branches in India

Business

Microfinance loan

Employees

Over 2,700

Clients

Over 500K people (over 99% women)

Marketpotential

Unbanked adults 190 mil. (approx. 20%
of India’s population)

ImpactAgile and convenient financial services
Escape from poverty and socioeconomic independence
Female empowerment andentrepreneurship support

Gojo & Company, Inc.
GMO-Z.com PAYMENTGATEWAY
INDIA PRIVATE LIMITED
GMO-Z.com Payment
Gateway
India Credit Fund

Non-Convertible Debentures
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

47

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.

48