Financial Results Briefing for Q3 FY2023
Progressing Towards Achieving FY2023 Guidance andAddressing Challenges to Ensure Growth Beyond This Year

August 10, 2023
74th Investor MeetingSafe Harbor Statement for Forward Looking Statements

The contents of this document is based on generally recognizedeconomic and social conditions, as well as certain assumptions judged
to reasonable by GMO Payment Gateway as of August 10, 2023.
Please note that the contents are subject to change without prior noticein the event of changes in the business environment, etc.

Abbreviations used in this documents are as follows:
GMO-PG
GMO-EP
GMO-MR
GMO-PS
GMO-FG
GMO-CAS
Merchandise EC
Non-merchandise EC
PF
MSB
BaaS

: GMO Payment Gateway: GMO Epsilon: GMO Medical Reservation Technology: GMO Payment Service: GMO Financial Gate
: GMO Card System: Apparel, food & beverage, cosmetic & health food, delivery & newspaper,
daily good & office supplies and CtoC, etc.
: Digital content & telecommunication, utility, travel & ticket, insurance,
membership fees & services, etc.
: Platform: Money Service Business: Banking as a Service

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

2

Agenda1. Summary of Financial Results for Q3 FY2023

2. Growth Strategy and Initiatives in Focus Areas
3. Sustainability
4. Financial Highlights and Reference Materials

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

3

1. Summary of Financial Results for Q3 FY2023

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,41.1 Summary of Consolidated Results
Earnings outperformed plans with the offline domain driving topline growth（¥ mil）

Q3 FY2022
Cumulative

Q3 FY2023
Cumulative% YoY

FY2023
Guidance(Achievement %)Q3 FY2023
Standalone(% YoY)

Revenue

36,95647,000+27.2%

59,100(79.5%)

Gross Profit

24,781

29,780+20.2%－

Operating
Profit12,78816,022+25.3%

20,311(78.9%)

5,671(+25.7%)Pre-tax Profit

30,50015,954-47.7%

18,837(84.7%)

6,098(-72.0%)21,12910,515-50.2%

12,368(85.0%)

4,386(-71.9%)14,36017,798+23.9%－

6,288(+24.3%)

Profitattributable to ownersof parent

EBITDA*1

Operating Stores*2*3
Operating terminals*2(end-Q3 FY2023)

KPI (% YoY)

155,598 stores (+12.7%)
273,298 units (+48.7%)

16,546(+28.3%)
10,171(+20.7%)

Consol. TRX Volume(Q3 FY2023 Standalone)*2*4

Consol. TRX Value(Q3 FY2023 Standalone)*2

Approx. 1.58 bn (+26.4%)

Approx. ¥3.7 trn (+28.4%)

o.w., online approx. 1.42 bn (+23.6%)

o.w., online approx. ¥2.5 trn (+17.3%)*1 Sum total of operating profit and depreciation. *2 The figure for operating stores is for GMO-PG and GMO-EP, and the figures for operating terminals are for GMO-FG. Consolidated TRX volume and value figures are the sum totals for GMO-PG,
GMO-EP, GMO-PS and GMO-FG. The online payment figures are the sum totals for GMO-PG, GMO-EP and GMO-PS. *3 The standards for recognition of the number of operating stores has been revised from Q3 FY2023. Figures exclude a
specific case and fincode byGMO. If figures for the specific case is included, the number of operating stores for the same period would be 562,598 stores, up 31.6% YoY. *4 TRX volume is calculated based on fee revenue standards, which in thecase of online consist of multiple (1 to 3) transactions per payment of a single authorization or actual proceed amount, and one transaction per payment in the case of offline.

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

5

1.2 Waterfall Chart of Consol. TRX Value (Q3 standalone)
Online payment grew 17.3% from the impact of electricity rate reductions
and local government projects（% YoY）（¥ trn)Offlinepayment

GMO-PG
Market*1+62.9%+13.5%

Online payment

GMO-PG
Market*1+17.3%+8.9%

Consol. +28.4%

Merchandise EC+11.1%+1.9%

Non-merchandise EC+21.3%+19.1%¥3.7 trn
GMO-PS
Merchandise

GMO-EP

Other
Utility non-merchandise

3.5

Declined QoQ due to local govt. project and electricity rate
reductions (small revenue impact)

Travel & Ticket
Increased outings and travelling
3.0¥2.9 trn*3

Digital content/telecom
Growth in major telecom carrier

GMO-PG
GMO-FG*2
Increased transaction from strong terminal
sales and increasing transactions fromnormalization of economic activities

2.50

Q3 FY2023

Q3 FY2022*1 Figures for offline market show the % YoY growth for the sum of April and May, as June 2023 data is not available as of this writing.
EC Market: Based on Ministry of Internal Affairs and Communication’s “Family Income and Expenditure Survey,” figures are categorized into merchandise and non-merchandise according to the Company’s
standards using the Internet expenditure amount per household.
*2 Excludes GMO-PG’s offline payment (GMO Cashless Platform) *3 Rounded off to nearest trillion of yen.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

1.3.1 Waterfall Chart for Consol. Revenue (Q3 standalone)

28.3% growth driven by offline terminals despite temporary
slowdown in non-merchandise EC(% YoY)（¥ bn）

GMO-PG*3+17.2%

Consol. GMO-FG*1*2+59.1%

GMO-PS*3 Consol. GMO-EP*1*3 Consol.
+30.6%+5.9%+28.3%

17

Other¥16.5 bn

16

GMO Payment After
BaaS
MSB
Support Delivery
Commission rate change and+13.0% +5.3%
acquisition of large merchant
Merchandise EC +11.8%

15

14

13

Large merchants and Food &Beverage were strong¥12.8 bn

Non-merchandise EC +21.2%
12

11

Utility (up 27.1%), travel/ticket (up 44.4%), growth of
GMP*5 etc.; lower than Q2 due to cycling through of
growth-driving large merchants

Recurring revenue*4 +53.6%
Operating terminals and pickup in offline consumption

10

Initial revenue*4 +62.0%
Strong offline terminal sales including large clients0
Q3 FY2022*1 GMO-FG consolidated is comprised of GMO-FG, GMO-CAS. GMO Epsilon consolidated is comprised of GMO-EP, GMO-MR. *2 Figures present financial results of GMO-FG consolidated.
*3 Figures of each company are before the eliminations from consolidating into GMO-PG.
*4 Figures for initial and recurring revenue (consists of stock, spread and fee revenue and excludes initial revenue that mainly consists of payment terminal sales) are after eliminations.
*5 GMP stands for Global Major Players.

Q3 FY2023

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

7

1.3.2 Change in Consolidated Revenue Mix

Revenue Excluding Initial growth rate increased by 9.4% pts.
since Q3 FY2021
Consolidated revenue breakdown and YoY growth (quarterly)(¥ mil)Initial revenue (left axis)

20,000Initial revenue =revenue fromterminal sales

Revenue excl. initial (left axis)
Consol. revenue growth rate (right axis)

Payment processing revenue
50%
on the terminals arecontinuously generated

Revenue excl. initial growth rate (right axis)
15,00040%

Q3 FY2023 % YoY
30%

Consol. revenue

10,000+28.3%
Revenue excl. initial
20%(Sum total of stock, fee and spread)
18.0%+21.2%

5,000

10%

11.8%

0

0%
21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

23/4Q

24/1Q

24/2Q

24/3Q

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

8

1.3.3 Waterfall Chart for Consol. OP and Pre-tax Profit (Q3 Cumulative)
OP grew 25.3% as gross profit increased on the back of revenue growth that
offset the increase in SG&A
OP Waterfall Chart

Pre-tax Profit Waterfall Chart

Up 25.3% YoY
GPincrease+4,999（¥ mil）

SGA
increase Other-1,788 revenue
increase+22

Other
expenseincrease±0

16,022

Decline in gain
Financial Financial Equity
methodon sales ofOPincome expense
profitequity method
increase decrease
increase decreaseaffiliate+3,233
-547
-682
-130
-16,41930,500・FX loss - ¥483 mil
・Loss on inv.
partnerships- ¥154 mil

12,788・Personnel cost- ¥566 mil
・Increase in provision for
doubtful accounts - ¥381 mil
・One-time expense - ¥424 mil(partial reversal of one-time
expense of ¥750 mil booked
in Q2)・CoS ratio increase
・Revenue increase

22/累2Q FY22
Q3 Cumu.
営業利益OP（¥ mil）

Down 49.3% YoY

粗利（増減）

販管費（増減）・Interest income+ ¥623 mil
Due to recording interest income
from overseas offices of ¥671 mil・Decrease in FX gains- ¥769 mil
・Gains of inv. partnerships recordedin the previous term
- ¥426 mil

15,954- ¥1,735 mil+ ¥6,734 mil

その他の収益（増減）その他の費用（増減）Q3 Cumu.
23/累2Q
FY23
営業利益

OP

Q3 Cumu. FY22
Pre-tax Profit

・recorded gain on salefrom transferring all
shares of 2C2P inprevious fiscal year

Q3 Cumu. FY23
Pre-tax Profit* The “+” and “-” sign denote the direction of the impact to operating profit and pretax profit.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

1.4.1 GMO-PG Non-consolidated Performance

Revenue grew 17.2% from cycling through of major project that
accelerated growth over the past year
GMO-PG Non-consolidated Revenue & OP（¥ mil）

Over 25% YoY

MSB revenue (left axis)

% YoY
6,000

百万

Non-merchandise EC revenue (left axis)
Merchandise EC revenue (left axis)

7,000

OP (right axis)
5,000
6,000

5,000

4,000

4,000
3,000

3,000

百万

BaaS Support revenue (left axis)

Q2 FY23Q3 FY23+20.1%+19.5%+10.1%-2.1%+22.5%+4.3%+25.5%+16.5%+35.2%+55.9%+17.2%+17.6%+11.8%+0.9%+20.6%+7.0%+21.2%+19.9%+27.1%+44.4%BaaS Support*2+10.4%+5.3%

MSB
Remittance service
Early Payment service
Overseas lending*3+21.2%+20.3%+18.3%+25.8%+13.0%+14.6%+15.7%+41.4%+32.4%+24.6%

Revenue*1
Online payment
Merchandise EC
ApparelFood & Beverage
Cosmetic, Health foodNon-merchandise EC
Digital content/Telecom
Utility
Travel & Ticket

2,000
2,000

1,000
1,000

0

0
21/3Q

21/4Q

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

Operating Profit*1*1 Figures for revenue and operating profit are before consolidated eliminations. *2 Figures for BaaS Support is the sum total of Ginko Pay and Processing PF.
*3 Figures show the consolidated revenue for overseas lending. Calculated by excluding one-time revenues recorded before the previous term. PG non-consol. would be down 8.8% YoY for Q2 FY2023 and down 19.7%
for Q3 FY2023.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

1.4.2 Performance of GMO-EP, GMO-PS and GMO-FG
Growth rate improves from April onwards at GMO-EP and GMO-PS;
GMO-FG continues is high growth
Consol. GMO-EP*1*2(% YoY)

RevenueOP(¥ mil)

GMO-PS*2Q2 FY23Q3 FY23

+0.3%
-0.4%

+5.9%
+7.2%

Revenue (left axis)

RevenueOP(stores) (¥ mil)Consol. GMO-FG*1*3
Q2 FY23Q3 FY23+20.5%-50.5%+30.6%+215.3%

Revenue (left axis)(stores)

RevenueOP(¥ mil)Q2 FY23Q3 FY23+71.8%+119.6%+59.1%+76.9%

Revenue (left axis)

5,000Operating stores (right axis) *4

60,0002,500

Nos. of new merchants (right axis)

200

Nos. of operating terminals (right axis)(units)300,000

1,500
4,000

2,000
150

200,000

40,000

1,000

3,000

1,500
100

2,000

1,000
500

100,000

20,000
50
1,000

500

0

0

One-time uplift leads to revenue growth,(or up 3.3% excl. this factor)
GMO-MR grew +40.1%

00Revenue increased fromcommission rate revision and ramp
up of major merchant; credit costs
still undergoing adjustments

00

Rollout of stera terminal to Japan Post
(full year est. approx. 26K units);recurring revenue*5 +53.6%*1 GMO-EP consol. includes GMO-EP and GMO-MR. GMO-FG consol. includes GMO-FG and GMO-CAS. *2 Figures are before GMO-PG consolidated eliminations. *3 Figures are taken from GMO-FG’s consolidated financial results.
*4 Figures present the number of B2C EC merchants. *5 Recurring revenue (sum total of stock, fee and spread and excludes initial which mostly consists of terminal sales) is after GMO-PG consolidated eliminations.

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

11

1.5 Revenue by Business Model (Q3 Cumulative)
Fee revenue grew 32.3% from increased TRX volume for offline payment
Factors*% YoY(¥ mil)Q3 Cumu.
FY22

Q3 Cumu.
FY23

Spread

+12.6%+14.3%＋ Online payment（PG）＋ Overseas lending－ Online payment（EP）－ GMO Payment After DeliveryFee+23.7%+32.3%＋ Offline payment* Special factor: rate revision of
GMO Payment After Delivery

Stock+20.3%+18.8%＋ Offline payment＋ Development for online payment－ BaaS Support－ Online marketing service

Initial+49.7%+65.3%＋ Terminal sales expanded fromlarge-scale project

47,00045,00040,00036,956

18,25435,00030,00015,96625,00012,99920,00015,000

9,823
6,934

10,000

5,836
5,000

8,812
5,329

0
Q3 cumu. FY2022

InitialStock

Q3 cumu. FY2023

Fee

Spread* The “+” signs indicate services with growth rates that are higher than 25% or if the growth rate is higher than that of the business model; the “-” indicates growth rates that are lower.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

12

1.6 Segment Results (Q3 Cumulative)
Each segment making solid progress towards achieving full year guidance
Segment Revenue

Segment Profit% YoY(¥ mil)Q3 Cumu.
FY22

Q3 Cumu.
FY23

50,000+21.0%

47,000% YoY(¥ mil)Q3 Cumu.
FY22

20,000+27.2%

16,022Q3 Cumu.
FY23+25.1%+25.3%+96.2%+21.4%

18,0002,270
40,000

10,393832

36,956+34.8%+16.2%+ GMO-MR+37.0%

716
8,414+11.3%

30,000+23.5%

16,00014,00012,788207

170+ GMO-MR

2,061+22.0%

12,000+ Overseas lending+ GMO Payment 10,000
After Delivery+ Overseas lending- Higher credit cost for
GMO Payment After
Delivery

8,000

20,00035,792+24.0%+28.5%

16,0126,000+ Offline payment+ Non-merchandise EC

27,846+22.4%+18.4%+ Offline payment+ Non-merchandise EC
ｰ Grew 21.5% excl.
one-time expense in Q2

13,5244,000

10,000+10.2%

2,000

00Q3 cumu. FY22

Q3 cumu. FY22

Q3 cumu. FY23

■ Payment
Processing
Business
決済代行事業
金融関連事業
決済活性化事業■ Payment
Enhancement Business■ Money Service BusinessQ3 cumu. FY23

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

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

13

2. Growth Strategy and Initiatives in Focus Areas

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,142.1.1 Snapshot of Major Business Portfolio
Challenges and responses of consolidated subsidiaries’ revenue
growth rates
Challenges and responses for each companies’ growth potential% YoY
Q3 FY22

GMO-PG

Challenges/Factors

GMO-PS+19.2%+17.2%

+4.6%

+5.9%
Flat

+8.4%

+30.6%
Improving

Consol.
GMO-FG*+47.4%

GrowthInitiatives

Q3 FY23

Temporary slowdown

Consol.
GMO-EP*

Response+59.1%

・Project delays
・Improved project profitability
・External factors

・Strengthen PM capability
・Thorough management of
profitability

2.3.1
2.4

・Weak SME merchandise・Measures in growing
domains falls behind・High dependency on
existing partners

・Further penetrating nonmerchandise domain
・Strengthen product andsales system
・Acquire anchor merchantwith new sales partner

2.3.2

・Delay in new BNPL
・Improved margins
・Enroute to optimize
credit cost・Strengthen PM capability
・Improvement credit assessment
accuracy・Measures to maintain highgrowth of terminal sales
・Cross-sell services

・Develop major clients andbusiness partners
・Improve value-added and
ARPU of merchants

Improving

2.6

2.5

* GMO-EP consol. includes GMO-EP and GMO-MR. GMO-FG consol. includes GMO-FG and GMO-CAS.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

15

2.1.2 Reason for Sluggish Revenue Growth
Measures in place to fill the temporary lull before the contribution fromnew projects
Image of revenue and startup of new projects
In order to sustain high growth, it is necessary to expand revenue and profit size per contract
However, the larger the project, (a) the longer the lead time and (b) raises the bar on maintaining
high growth on a yearly basis

New project

Growth trajectoryat cruising speed

Temporary deceleration

Image of revenue trendab

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

16

2.2 Initiatives in Each Focus Areas
Generating and launching large projects to return to high growth;raising efficiency of new acquisitions
Basic strategy
1. Generate large-scale projects with high gross margins and achieve on-schedule launch
2. Improve yield rates by efficiently acquiring new customers that use simplified payment services
Building pipeline of new large-scale projects in various verticals
Focus Areas
City halls,
stera launched toJapan Post

Broader EC★

FinTechBaaS

Projects are described★ in slide 2.3 to 2.7

Offline payment

JTB Payment PF for
accommodation
facilities

Commercial facilities/
Train station facilities★

Digital local currency

Issuing support

Credit card issuing

Payment after Delivery/
Pay On Credit

Salary DX

Expand to fee andspread model

Unmanned terminals(parking, etc.)

Customer-related
business operation DX

BNPL OEMPF for major banks

Payment after Delivery/
Pay On Credit

National Tax Agency’s
smartphone app

Pay On Credit for
Restaurant PF

Processing PF

SMS Choice ofPayment

Proprietary brandpayment method

Credit card payment

Utility★

Mobility payment
fincode byGMO
Early Payment
service★
★

Digital gift voucher★

RE-related business
operation DX

Remittance service ★
Services for customer’s
to major Chinese
eco-system
corporate★
New BNPL with SMCC

Leasing/Guarantee
DX

Expand payment
methods

Vending machine

BPSP

e-contract

OpenAPI-type
implemented

Retail/Merchandise

Finance

Real Estate

GMP*1*1 GMP stands for Global Major Players.

BPSP★ Cashless payment of
insurance premiums

Other
non-merchandise*2*2 Other non-merchandise includes insurance, digital content, broadcast and telecom, travel and transport.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

172.3.1 Broader EC: Large Merchant Strategy

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

Accelerate approach to global large customers by improving
competitiveness of major products
GMO-PG/GMO-EP Revenue trend by merchant size
Annual revenue sizeof merchant■ Large

Over ¥100 bn■ Other

Under ¥100 bn

・Enterprises
・Global companies

Large+34.5％FY2020* Based on GMO-PG research.

・Acquisition of large-sized merchants・Rollout of industry-specific PF

Major update of PG Multi-payment Service
CAGR

FY2019Growth initiatives

FY2021

May 2023
Implemented advanced “OpenAPI-type” ★
(specification according to global standard)・Cut lead time for onboarding additional payment
method to one-tenth*・Easy onboarding of Japan-originated payment method

FY2022

Explaining the advantages to EC operators at a press briefing
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

2.3.2 Broader EC: Return to Growth in Small Operator Segment
Expand services and focus on target domains to return to growth
Consol. GMO-EP revenue & GMV growth rate

Growth initiatives（¥ mil）
Revenue (left axis)
Merchandise EC market growth (right axis) *1
GMV growth (right axis)
1,500

GMV growth excl. one-offs (right axis)% YoY
Revenue

+5.9％

ｘ
25.0%
ｘ

・Drill down into non-merchandise domain
Acquire merchants across verticals by providing
industry-specific PFs
fincode byGMO★
・Expand financial services
Target market (SME EC) *2

15.0%

1,000

Medical & Welfare
Telemedicine

Digital content
Digital assets

GMV+10.9％

GMO-EP GMV
Accomodation/Restaurant
Mobile order
5.0%

500

Merchandise EC
market*1

+1.0％
0

-5.0%

Lifestyle services
NurserySports SaaS

Retail＝Approx. 90%
of existing
merchants

21/3Q 21/4Q 22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q*1 Ministry of Internal Affairs and Communication, “Annual report on the survey of household economy.”*2 Company estimate.

Figures are categorized into merchandise and non-merchandise according to expenses made using the internet.

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

19

2.4

BaaS
BaaS2025営業利益目標
OP target:

BaaS/EF*1

2025 10
¥1.0
bn～
億円～

Return to growth next fiscal year from contribution of large-scale projects,
and expand the revenue model
Ginko Pay/Processing PF revenue*2 (Q3 standalone)■ Ginko Pay■ Issuing（Processing PF)■ Acquiring (Processing PF)ｘ
ｘ

Growth initiatives
・Expand issuing PF・Service offered to business operators other than banks
・Expand revenue model% YoY
Progress on projects

Total

+5.3%
Ginko Pay

-3.9%

Ginko Pay
・Contract extension at several banks from FY2023 to FY2024
・Add-on functionality

Link to “COTRA tax public fund service” from April 2023
Due to change inrevenue recognition ofmonthly revenues ofcontract renewals forlarge customers

Processing PF

Unified QR code for local govt. taxes to enable payment oflocal taxes

Processing PF ★
Co. Y 24/1Q+10.9%Co. Z

Launch of credit card issuing system
function that utilizes H-ALIS ★
24/3Q

Co. A

24/4Q

Q3
FY18 19/単3Q
Q3 FY19 Q3
FY20 Q3
FY21 Q3
FY22 Q3
FY23
18/単3Q
20/単3Q
21/単3Q
22/単3Q
23/単3Q*1 EF stands for Embedded Finance.

*2 Includes revenues for Ginko Pay and Processing PF received from business operators other than banks/financial institutions.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

Offline OP target:
2025 ¥2.0bn~*1

2.5 Offline Payment

Focusing on new domains to secure medium-to-long term high growth
GMO-FG/CAS revenue by business model*2 (Quarterly)
Stera terminals rolled out to Japan Post ★
(full year est. 26K units)% YoY

Recurring *3

Initial(¥ mil)＋62.0% 1,200

3,500

% YoY

＋53.6%
Spread3,000＋21.0%

1,000

2,500

Growth initiatives
・Enter into new domains
Public transport/Large commercial facilities/
Inbound/SMEs, etc.
・Value-added services and new business creation to
improve merchant ARPU

Expanding TRX volume in the mobility domain
Increase in mobility payments in metropolitan areas with
the increase in inbound tourists
PoC test to comment for Tokyo Metro from FY2024 ★

800

Fee

2,000

＋79.7%600% YoY

Approx. 12x

1,500
400
1,000

Stock

200

500

＋48.4%00
Q3 FY22Q3 FY23Q3 FY22Q3 FY23Q4 FY21■ Initial■ Stock ■ Fee ■ Spread

Q1 FY22Q2 FY22

Kyushu public transport Co. B

Q3 FY22Q4 FY22Q1 FY23Q2 FY23

Kansai public transport Co. A

Q3 FY23

Other*1 The operating profit target for 2025 includes companies other than GMO-FG and GMO-CAS. *2 Figures are after GMO-PG consolidated eliminations.
*3 Recurring revenue is the sum total of stock, fee and spread and excludes initial which mostly consists of terminal sales.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

FinTech
2025営業利益目標
FinTechOP target:

2.6 FinTech: GMO Payment After Delivery
202530¥3.0
bn~
億円～
Revenue on expanding trend, as new merchant acquisitions offsets
the impact of credit tightening
FinTech revenue and profit/loss (Quarterly)（¥ mil）

Growth initiatives
・Expanding share by broadening services
New BNPL with SMCC ★ BNPL OEM service ★
・Improve credit assessment accuracy% YoY＋28.0%

GMO Payment After Delivery: GMV by new and existing merchants

3,000＋30.6%*1■ New merchant (operational from FY2023)■ Existing merchant (operational by FY2022)

ｘｘ

2,000

Driven by several
new large-scale
project
1,000＋29.1%＋14.5%

Temporary decline due
to tightening credit＋9.4%＋39.1%
022/単3Q
Q3FY22□ Rate revision impact *2■ Payment After Delivery■ Other *3
Segment profit/loss

23/単3Q
Q3FY23■ Remittance service■ Early Payment service■ Lending (Japan/Overseas)*1 Includes the impact of commission rate revisions for Payment after Delivery. *2 Rate revision to reflect the increase in CVS payment agency cost.
*3 Others: the sum total of B2B factoring, finance lease, B2B AR Guarantee, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

2.7.1 Global Strategy
High growth of Asia payment service from acquisition of major
Chinese merchant; strengthening lending in priority regions
Asia payment business

Target markets of global lending business

・Growth driven by remittance operations for major
global Chinese merchant ★
・Leveraging① Service stability and ② Multilingual capability

・Expand mainly in the attractive markets of India
and USA while diversifying regionally andfollowing regulatory and interest rate trends

Asia payment revenue (quarterly)（¥ mil)

% YoY

25

Other
Southeast Asia

+74.8%
Remittance・Expand to major
Chinese corporates
・Cross sell to majorclients

20

15

Growthpotential
Market size

Payment
・Suspend operations in
2024 GDPcountries excl. Taiwan/
forecast*1
cost reduction
・Large-scale project expected
to come on stream

10

5Population

6.3%

5.1%

4.5%*2

1.0%

1.4bn

0.27bn0.32bn*3

0.33bn

0
22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

*1 Figures are disclosed from IMF (July 2023). Figures for Indonesia was released in April 2023. *2 ASEAN-5 *3 Philippines, Vietnam, Thailand, Malaysia, Singapore.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

2.7.2 Global: Earnings Summary
Made progress in new investments/lending and increased lending to
attractive FinTech companies in focus regions
Revenue*1・OP*2（Quarterly）（¥ mil）

Loan balance（end-Jun）% YoY+45.0%（¥ mil）

US MSB+61.4%

350% YoY+43.4%
Q3
incremental
increase

Loan extended to US Music funding
FinTech (July 2023)
・Finance based on future revenue ofUS+62.0% a music piece・Autocredit extended to artists based on
streaming data
Singapore-8.1% ・Positioned in growing streaming market

12,000300
10,000250

OP+74.5%

3Q
incremental
increase

8,000

200

Asia MSB+38.2%

150

New loans executed

India
Minority investment into Indian KYC Tech
+100.2% (June 2023)

6,000

・Provides KYC/fraud detection PF tobanks, etc.
・Acquire expertise in domain closely
related to payment

4,000

100

Indonesia+3.1% Current pipeline

2,000

50

Asia payment+74.8%

0
Q3 FY22
22/単3Q

Q3 FY23
23/単3Q

Major SME Loan FinTech

022/3Q末End-Q3FY22

23/3Q末End-Q3FY23*1 Calculated by excluding the one-time revenue recorded in previous fiscal year. If included, revenue growth would be 43.8%.
*2 Calculated by excluding the one-time revenue recorded in previous fiscal year.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

2.8 Fund Investment Strategy
Expand the reach to growth companies by reinvesting the returns fromequity investments
Fund investment and returns
13/9

Distributions/
Returns

14/9

15/9

16/9

17/9

18/9

19/9

20/9

② Secure financial returns as fund investments
reach recovery phase

21/9

22/9

23/9

24/9

25/9

26/9

④ Seek strategic returns by expanding
business opportunities with highgrowth companies

25(¥ Mil)
20
15
1,000
10
5005
00

-5
-500
-10
-1,000-15

Fund investment-20① Several seed and early-stage investments③ Continue to reinvest the returns into several funds
Contributed to domestic/overseas influential VCs
that are part of powerful communities(Japan/Overseas VCs and Debt Fund)
Total equity investment approx. ¥5.0 bn (investmentcommitment basis; overseas proportion approx. 90%)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

25

3. Sustainability

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,26

3. Sustainability: External Evaluation

Inclusion in ESG Indexes
Constituent of ESG indexes

External evaluation

The FTSE Blossom Japan Index and FTSE Blossom
Japan Sector Relative Index are indexes adopted as
the ESG benchmark for the investment of Government
Pension Investment Fund (GPIF).

Received “Eruboshi certification (3-star)” forpromoting the empowerment of women from the
Director of Tokyo Labor Bureau, Ministry of Health,
Labor and Welfare.

Major initiatives
・Promote cashless payment which has a low
environment footprint・Achieved zero GHG emissions in FY2022 for major
data centers
・Expanded disclosure of ESG information such as
responses to climate change, talent development
and compliance system, etc.

Points of evaluation
・Established of specialized consultation centers forcareers, maternity and paternity leave that enables
long-term career-building* FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that GMO Payment Gateway, Inc. has been independently assessed according to the FTSE4Good criteria and has
satisfied the requirements to become a constituent of the FTSE4Good Index Series, FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relatie Index, and this certifies that the company has been included as aconstituent of these indices.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

27

4. Financial Highlights and Reference Materials

Copyright
Gateway, Inc.
Inc. AllAll Rights
RightsReserved.
Reserved.
Copyright (C)(C) 1995
1995 GMO
GMO Payment
Payment Gateway,28

4.1.1 Consolidated Balance Sheet Changes

Increase in deposits received and MSB related assets
AssetsLiabilities and Equity(¥ mil)(¥ mil)294,874

300,000

294,874

300,000

273,407273,407250,000

250,000

134,181

215,455

100,144
85,562

215,455

113,967

200,000

200,000

78,251
104,523
150,000

100,000

50,000019,742150,000

100,000

30,599Prov. fordoubtful
70,479account-2,722
9,852
End-Q4 FY2021

Investment related*1

101,769

86,96550,000-3,339-3,805

12,87014,318End-Q4 FY2022

End-Q3 FY2023

MSB related *2

19,67844,60459,603

Other

Cash & equivalent

30,14835,252

29,35025,741

23,00019,59315,15818,89020,65325,00789,26090,481Equity*457,820 ratio
25.9%

31.9%

29.9%

0
End-Q4 FY2021

EquityMSB related

End-Q4 FY2022

Borrowings

Bonds

End-Q3 FY2023

Other

*3
Merchant deposits*1 Securities classified under investment securities and investment accounted for under the equity method.
*2 MSB Related Asset: Lease assets, Short term loans, Advances paid, Accrued revenue (net of provision for doubtful accounts). MSB Related Liabilities: Accrued expenses*3 Deposits received from merchants under the Representative Contract..
*4 Equity ratio is total equity attributable to owners of parent divided by total assets. *5 Some figures are shown in net amounts of financial assets and liabilities.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

29

4.1.2 Major Consolidated Financial Indicators (Annual Trend)

Strengthened equity base with the expansion of MSB
IFRS

J-GAAP
Third party allotment
Raised ¥8.0bn
45%

Issued Euro Yen
CB Due 2023
Raised ¥17.5 bn

Euro Yen CB Due 2026
Raised ¥21.1 bn（¥ bn）

Euro Yen CB Due 2023
Fully converted

300

40%
250

33.8%

35%

32.3%
30%

200

31.9%
25%
150

ROE baseline
20%

15%

100

14.2%

10%

50
5%

0%

0
End Q4 FY2011 End Q4 FY2012 End Q4 FY2013 End Q4 FY2014 End Q4 FY2015 End Q4 FY2016 End Q4 FY2017 End Q4 FY2018 End Q4 FY2019 End Q4 FY2020 End Q4 FY2021 End Q4 FY2022

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

Return on assets using pretax profit (ROA)
Total equity attributable to owners of parent to total assets (equity ratio)* Figures from FY2018 are based on IFRS standards. For figures before FY ending September 2017 are based on J-GAAP standards. As such, total assets refers to assets, equity refers to net assets and total equity
attributable to owners of parent to total assets refers to equity ratio, return on total assets using profit attributable to owners of parent refers to ordinary profit to assets ratio, and return on equity using profit attributable toowners of parent (ROE) refers to net profit to equity ratio.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

30

4.2 Consolidated Revenue and Operating Profit (Quarterly)
Consol. revenue

Consol. operating profit（¥ mil）（¥ mil）

18,000

6,000

% YoY
16,000+28.3%+25.7%% YoY+28.2%+23.7%+24.9%+26.4%

5,000
14,00012,0004,000

10,000

3,000
8,000

6,000

2,000

4,000
1,000
2,000

0

FY2021
FY2022
FY2023

1Q
9,767
11,857
14,813

2Q
10,121
12,201
15,641

3Q
10,646
12,897
16,546

4Q
11,132
13,3410

FY2021
FY2022
FY2023

1Q
3,122
4,116
5,090

2Q
3,470
4,159
5,260

3Q
3,629
4,511
5,671

4Q
2,764
3,461

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

31

4.3 Consolidated Revenue by Business Model (Quarterly)(¥ mil)

6,171
6,057

6,025

6,000

5,415

5,371

5,000

4,808

4,731

4,707

4,665

5,297

5,296

4,414
4,290

4,257

4,000

4,311

4,430

3,840
3,536

3,672

3,646

2,408

3,395

3,364

3,278

3,015

3,149
2,288

2,922

3,000
2,713
2,527

2,559

2,669
2,237

2,382

2,037
2,1…

2,083
2,000

1,723

1,937

1,717

1,825

1,261

1,359

1,411

1,460

1,478

1,522

1,610

1,552

1,851
1,754

2,080
2,260
2,005

1,947
1,678

1,484

1,131
876

1,000
659

725

489

506

362

0

19/4Q

20/1Q

20/2Q

20/3Q

20/4Q

21/1Q

21/2Q

21/3Q

Initial

Stock

21/4Q

Fee

22/1Q

22/2Q

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

Spread* 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.

32

4.4 Segment Results (Q3 standalone)
Both Payment Processing Business and Money Service Business segments’revenues grew by over 25%
Segment Revenue

Segment Profit% YoY(¥ mil)% YoY(¥ mil)Q3 FY22Q3 FY23Q3 FY22Q3 FY23

7,000

16,546+21.1%

5,671+28.3%

3,513

317

12,897+38.2%+22.3%+ GMO-MR+40.1%

259
2,745+11.3%+25.7%+144.9%+32.9%

790

6,000

15,000+24.3%
93

4,511
70
5,000

+ GMO-MR

612+15.8%+28.0%+ Overseas lending4,000+ GMO Payment After
Delivery

10,000+29.1%+ Overseas lending

3,000

12,7225,000+23.7%+28.6%

5,671+ Offline payment 2,000

9,895+23.3%+20.1%+ Offline payment

4,721

1,000

0

0
Q3 FY2022

Q3 FY2022

Q3 FY2023■ Payment
Processing
Business
決済代行事業
金融関連事業
決済活性化事業■ Payment
Enhancement Business■ Money Service Business

Q3 FY2023

決済活性化事業■決済代行事業
Payment Processing
Business■■ 金融関連事業
金融関連事業■決済活性化事業
Payment Enhancement Business■■ Money Service Business
Operating profit (after elimination)

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

33

4.5.1 FinTech Related Asset
FinTech related asset (quarterly)（¥ mil）
100,000% YoY+21.3%

80,00060,000+24.5%

40,00020,000+41.7%
0
End Q4FY2019End Q1
FY2020End Q2
FY2020End Q3
FY2020End Q4FY2020End Q1
FY2021

Lending (Japan/Overseas)

End Q2
FY2021End Q3
FY2021End Q4FY2021

Early Payment service

End Q1
FY2022End Q2
FY2022End Q3
FY2022End Q4FY2022End Q1
FY2023

GMO Payment After Delivery *1

End Q2
FY2023End Q3
FY2023

Other *2

*1 The figures for GMO Payment After Delivery related assets (accrued revenue) are after deduction of provisions for doubtful accounts.
*2 The figures for “Other” is the sum total of B2B factoring, finance lease, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

34

4.5.2 FinTech Related Asset (Quarterly)
FinTech segment revenue and profit（¥ mil）
3,500

% YoY
＋14.5%
3,000

2,500

2,000

＋30.6%
1,500

1,000

＋29.1%
500＋9.4%＋39.1%

0
19/4Q

20/1Q

20/2Q

Lending (Japan/Overseas)

20/3Q

20/4Q

21/1Q

Early Payment service

21/2Q

21/3Q

21/4Q

22/1Q

GMO Payment After Delivery*1

22/2Q

Other*2

22/3Q

22/4Q

23/1Q

Remittance service

23/2Q

23/3Q

Segment profit*1 Includes the impact of commission rate revisions for GMO Payment after Delivery from FY2022. Rate revision to reflect the increase in CVS payment agency cost.
*2 The figures for “Other” is the sum total of B2B factoring, finance lease, Condo Pay, Instant Salary byGMO.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

35

4.6.1 Consolidated CoS and SG&A Ratio (Quarterly)
SG&A ratio declined to 27.6% from cost control and scale benefit*(¥ mil)16,546
15,641

16,00050.0%

14,81314,00013,341

42.7%

41.2%

37.5%

39.6%
12,00010,000

36.6%

36.7%

35.2%

36.8%
34.8%

32.7%

9,030

10,121

9,767

9,356

8,927

8,160

27.9%

38.5%

34.6%

33.4%

34.7%

35.8%
31.1%

33.9%
33.6%

33.0%

31.3%

30.0%

32.0%

30.7%

29.5%

28.8%

27.6%

26.7%

6,374

5,460
5,022

6,000

4,169

3,720
2,986

3,181

4,000

3,292

3,174

3,433

2,664

3,813
2,488

40.0%

37.2%

32.6%

8,623
8,000

33.8%
10,64640.9%

12,201

11,857

11,13235.2%

12,897

3,872
2,817

3,522
3,169

3,466
3,599

3,982

4,108
3,684

4,075
4,021

3,959

4,487

4,469

4,743

20.0%

5,823
4,618

4,570

2,302

10.0%

2,000

0

0.0%
19/4Q

20/1Q

20/2Q

20/3Q

Revenue

20/4Q

21/1Q

21/2Q

Cost of Sales

21/3Q

21/4Q

SG&A

22/1Q

22/2Q

CoS ratio

22/3Q

22/4Q

23/1Q

23/2Q

23/3Q

SGA ratio* Figures only present the continuing operation from Q3 FY2020 and onwards and exclude MACROKIOSK (reclassified as discontinued operation) due to its deconsolidation in May 2020.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

36

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

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

9,219

9,083

9,177

9,000

8,498
8,000

45.2%

7,906

7,682
41.6%

7,000

7,122
6,709
39.7%

6,370

6,858

40.7%

41.2%

6,878

50.0%

7,977

40.0%

6,110
6,000

34.2%

36.5%

5,271

5,126

5,142

33.3%

32.5%

31.6%

32.5%

5,000

32.9%

30.0%
30.3%

29.4%

4,000

20.7%

20.9%

21.2%

22.1%
20.2%

21.0%

20.5%

22.6%

21.5%

20.5%
19.3%

2,649

2,665

2,319

2,000

30.3%
20.1%

19.5%

3,462
18.7%

2,932

3,000

1,800

1,874

1,065

1,069

1,117

2,286

1,235

1,339

1,373

20/4Q

21/1Q

21/2Q

21/3Q

1,609

19.6%

2,755

2,603

20.0%

1,483

2,447

2,345

1,984
1,478

19.8%
2,796

2,495

2,177

1,517

26.7%

1,616

1,553

22/2Q

22/3Q

1,711

1,696

1,822

1,794
10.0%

1,000

0

0.0%
19/4Q

20/1Q

Revenue

20/2Q

20/3Q

Cost of Sales

SG&A

21/4Q

CoS ratio

22/1Q

SGA ratio

22/4Q

23/1Q

23/2Q

23/3Q

SGA ratio 1-yr moving average* Figures presented are before consolidated eliminations.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

37

4.7.1 Operating Stores, TRX Volume and Value
Consol. TRX value reaches approx. ¥14.0 trn in the past 12 months
OperatingStores*1/Terminals*2
End Q3 FY2023

TRX volume*2*3

TRX value*2

Q3 FY2023

Past 12-month

Q3 FY2023

Past 12-month-

1.58 bn

5.86 bn¥3.7 trn¥14.0 trn-

+26.4%+30.1%+28.4%+35.4%

155,598

1.42 bn

5.33 bn¥2.5 trn¥10.1 trn

+12.7%+23.6%+27.0%+17.3%+23.9%

273,298

0.15 bn0.53 bn¥1.1 trn¥3.9 trn+48.7%+59.8%+71.6%+63.6%+78.5%

Consol.
% YoY

Online% YoY

Offline*2% YoY

Proportion of representative contracts in online TRX value*4：Approx. 40%*1 The standards for calculation the number of operating stores has been revised from Q3 FY2023. Figure exclude an operating stores of a specific merchant and stores using fincode byGMO.
If included, operating stores would be 562,598 (up 31.6% YoY).
*2 Payment terminals exclude GMO-PG’s offline payment (GMO Cashless Platform). Offline TRX volume and value includes GMO-PG’s offline payment (GMO Cashless Platform).
*3 TRX volume is calculated based on fee revenue standards, which in the case of online consist of multiple (1 to 3) transactions per payment of a single authorization or actual proceed amount, and one transaction per
payment in the case of offline. *4 Annual average is shown in 5% increments.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

38

4.7.2 Distribution of major sectors (Q3 Standalone)
Balance both stability and growth through sector diversification
Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)(Q3 FY2023 standalone Actual)

Revenue
proportion

The size of the circle represents the TRX value

30%

25%

Digital content/
telecom
20%

15%

Memberships/
Services

10%

Apparel5%

Cosmetic/
health foodInsurance

Home delivery/
newspaper

C2C

0%
-5%

5%

15%

Travel/ticket

Utility

Food &
Beverage

Daily goods/
Office supplies
25%

35%

45%

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

39

4.8.1 Consolidated Cash Flow Statement (Q3 Cumulative)
J-GAAP(¥ mil)Q3 FY2023 cumu. changes by item (¥ mil)

IFRS

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

FY2014FY2015

Operating CF

FY2016FY2017FY2018Investing CF

FY2019FY2020Financing CF

FY2021

FY2022Q3 cumu.
FY2023

FCF* FCF is calculated as the sum-total of Operating CF and Investing CF. Only major items of the cash flow statement are shown on this page.

Operating CF：
Pretax profit
Trade receivables
Advances paid
Accrued revenues
Accrued expenses
Deposits received
Income taxes paid
Investing CF：
Acquisition of intangibles
Deposits into
restricted accounts
Withdrawals fromrestricted accounts
Deposits to subsidiaries
and affiliates
Withdrawals of deposits to
subsidiaries and affiliates
Financing CF ：Net decrease in ST borrowings
LT borrowings
Dividends paid
FCF：
Cash & Equivalents ：+9,797+15,954-4,202-6,058-5,882+3,819+14,723-8,917+15,386-3,220-12,533+20,916-5,300+16,500-6,287+2,900+3,450-12,127+25,184
134,181

Mainly Money
Service Business

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

40

4.8.2 Changes in consolidated cash flow statement
Related liabilities & assets

Impact from business expansion

Deposits received(liability)

Liability

Payment Processing Business
Sales proceeds ofmerchants under the
Representative Contract

Operating CF

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

Money Service Business
Early Payment service

Advances paid
(asset)Asset

Operating CF

Payment After Delivery
service

Accrued revenue(asset)Asset

Operating CF

Accrued expense(liability)

Liability

Operating CF

Deposits to subsidiaries
and affiliates(asset)Asset

Investing CF

OtherFunds temporarily deposited in CMS of GMO-IG*, which
can be withdrawn at any time depending on cash
requirements* GMO-IG: GMO Internet Group
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

41

4.9 Broader EC: Rollout of Industry Specific Platforms
Progressing with multiple applications being adopted within various verticals
Expansion strategy of industry platforms along the triple-axes of applications, customers and sector/industry

Electric power/Gas

Expand line-up of applications
DX Support(underverification)

SMS
payment

Q1 2023

Q1 2021

Scheduled2025

Q1 2023

Scheduled2023

Credit card
payment

Q4 2019

Q1 2022

Q2 2023

Scheduled2024

Scheduled
2024

EPCO
Co. A

EPCO
Co. B

EPCO
EPCO
GASCO
Co. C
Co. D
Co. E
Lateral expansion within sector

TravelReal Estate
Insurance
Broadcast/Telecom
GlobalBank/Credit card
Digital content
Retail/Merchandise

Intra-sector penetration
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

42

4.10 Major Update of PG Multi-payment Service

Explaining the advantages to EC operators at a press briefing
New connectivity method launched by implementing “OpenAPI-type”• Technical specifications adopt global standards, thus

improving competitiveness in acquiring large
merchants and global merchants• Reduce development cost and training cost for engineers• Easy onboarding of payment methods by reducing

procedures for onboarding new payment methods by
one-tenth* versus previous* Based on GMO-PG research
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

43

4.11 Investment Strategy

Secure investment potential (incl. for financial business) bystrengthening BS with investment returns
Balance sheet trend

Significantly scaled up investment
professionals in the past year
35%（¥ mil）
Investment related *1
EquityCash & equivalents
Equity ratio*4400,000

MSB related *2
OtherMerchant deposits*3

31.9%

29.9%
30%

25.9%
300,000
25%

Deposits to subsidiaries
and affiliates (CMS)
Funds accumulated atoverseas rep. offices
Approx. ¥30.0 bn

18.9%
16.5%

200,000

20%

15%

Divestment ofoverseas investment

100,000

10%

5%

0

0%
End Q4FY2019AssetsEnd Q4FY2019Liab./Equity

End Q4FY2020AssetsEnd Q4FY2020Liab./Equity

End Q4FY2021
AssetsEnd Q4FY2021Liab./Equity

End Q4FY2022
AssetsEnd Q4FY2022
Liab./Equity

End Q3
FY2023
AssetsEnd Q3
FY2023Liab./Equity*1 Securities classified under investment securities and investment accounted for under the equity method.
*2 MSB Related Asset: Lease assets, Short term loans, Advances paid, Accrued revenue (net of provision for doubtful accounts). MSB Related Liabilities: Accrued expenses*3 Deposits received from merchants under the Representative Contract. *4 Equity ratio is total equity attributable to owners of parent divided by total assets.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

44

Thank You Very Much
GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange Prime)
For inquiries or requests for 1-on-1 interviews, please contact the IR Department, Corporate
Value Creation Strategy Division, at the telephone number below:
TEL： +81-3-3464-0182
E-mail ： ir-contact@gmo-pg.com
IR Website URL
https://www.gmo-pg.com/en/corp/

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

45