Financial Results Briefing for FY2020
Achieve 25% sustainable growth by solidifying position as a platformer

November 12, 2020

The 63 rd IR Meeting

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange First Section)

https://www.gmo-pg.com/corp/

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

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, 2020.
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.

2

Agenda1. Milestone
2. Summary of Financial Results for FY2020
3. Guidance for FY2021
4. Key Initiatives and Growth Strategies
5. Financial Highlights

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

3

1.

Milestone

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

4

1.1

Progress towards 2025 target OP of ¥25bn

Since 2015 profits from new businesses have exceeded plans
OP portfolio (breakdown) as of FY2015 (plan)

FY2020 Actual OP portfolio■ Online payment processing & peripheral services■ Payment After Delivery（FinTech）■ Domestic Transaction Lending etc. （FinTech）■ Overseas（Global)■ Offline Payment（IoT）■ Financial Institution services (Cashless)

営業利益 103億円
Operating
Profit ¥10.3bn（Excerpt from FY2015 presentation materials)※TL：Transaction Lending

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

5

1.2

Background for change in FY2020 OP portfolio

Acceleration of business expansion and optimizing earnings
structure to the changes in business environment■ Actual and Plan of FY2020 Operating Profit portfolio※1
20152020 (plan)2020 Act.

Factors① Lower than expected growth ofB2C EC market（as of 2015)

Rapid expansion of C2C market（Not included in METI statistics)
Macro-economic factors, but COVID-19
accelerated trends③② Outperformed initial plan for GMV
Sector-specific strategy (focus on nonmerchandise)

Operatingprofit

¥3 bn

GMV※2

¥2 trnB2C EC¥13 trn

Market＋15％
growthEC4％penetration②①¥10.0 bn

¥10.3 bn

¥4 trn¥6 trn¥30 trn¥20 trn

＋15％

＋10％

10％

7％

Non-merchandise
ratio ※3

2015

2020

57％

69％

Focused on acquiring large merchants andprojects
Large retailer, digital content, financial, C2C, etc.
※4（5 yr CAGR）

TRX Volume
TRX Value

2015

2020

＋26％ ＋29％＋14％ ＋27％③FinTech（Money Service Business)
Expanded→ 1.4※1 Figures on this page are estimates. The B2C EC market growth and EC penetration are our estimates based on the market’s performance one year before the estimates were compiled in 2015.
※2 GMV: Figures are estimates and includes offline transaction. ※3 Non-merchandise ratio of TRX value of PG Multi-payment service ※4 5-yr CAGR excluding offline TRX volume and value.

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

6

1.3

OP portfolio plan for 2025

Achieve target by expanding the existing business andcreating new services※1■Operating Profit plan for 2025

2020

2025

■ Online payment processing & peripheral services■ Payment After Delivery■ FinTech（Excl. Payment After Deliver) ※2■ Global ※2■ Offline Payment (IoT)■ Cashless

Operatingprofit¥10.3 bn¥25.0 bn～※3

¥6 trn¥18 trn

B2C EC¥20 trn¥45 trn ※4

GMVEC
penetration

15％

7％

※1 Figures on this slide are estimates. ※2 There is some overlap in operating profit from FinTech（excl. Payment After Delivery) and Global.
※3 GMV: Figures are estimates of consolidated TRX value including offline payment.
※4 Figures are our estimates based on METI’s statistics on B2C EC market and other online payment markets.

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

7

1.4

Progress of FinTech Business

Improve profitability by shifting assets to high-margin
services and expanding these services■ Trend of Money Service Business segment profit (operating profit) and ROA
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Capital alliance with SMFG
Establishment of SGP

ROAROA (excl. Early Payment) ※2020

SGP makes a profit

Private Placement Euro-yen CB issued¥8.0bn¥17.5bn

Impact of change in provisioning rate

7.3%

Segment profit excl. above factors

5.7%

5.5%
4.1%

2008/92009/92010/92011/92012/92013/92025E

2014/92015/9

1.4%

0.9%

0.9%

0.3%

2016/92017/93.2%

3.4%

2018/92019/92020/9 2021/9E 2022/9E 2023/9E 2024/9E 2025/9E

Segment profit (¥ bn)

0.21 0.22

1.37 1.97 1.79

MSB-related asset (¥ bn)

15.5 36.5

43.6 53.5 57.7

Timing of launching FinTech services
Remittance service
Transaction Lending
GMO Payment After Delivery

30.0～

New services
Kondo Barai (Pay Later)
B2B financial service
Overseas lending

Launch of Tsuke-Barai

Early Payment service※ROA (excl. Early Payment) is computed by dividing the segment profit (excl. Early Payment) andthe MSB-related assets (excl. Early Payment); MSB-related asset is the average of the opening and closing balance of the year. SGP：SMBC GMO PAYMENT

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

8

1.5

Our Track Record of Growth

The product of management policy focused on sustainable growth
Operating Profit

Revenue（Mil. Yen）

（Mil. Yen）
40,000※3

EBITDA■MACROKIOSK Revenue ※1■+20.4％■ Revenue excl. MK

40.0%

39,792 14,000

ROE ※235.0%

12,00035,000+25.0%

33,04630.0%

30,00014,719（Mil. Yen）

12,985

Operating Profit

14,000+24.3%
12,00011,83910,388 26.2％

10,00025.0%

25,00010,0008,000
20.0% 8,000

20,0006,000

15.0% 6,000

15,0004,000

J-GAAPJ-GAAPIFRSJ-GAAP

2020/92021/9E

2019/92018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92020/92021/9E

2019/92018/92017/92016/92015/92014/90

2013/90.0%

2012/90

2011/92,000

2010/95.0%

2009/92020/9IFRS

2021/9E

2019/92018/92017/92016/92015/92014/92013/92012/92011/92010/92009/92008/902,000

2008/95,000

2008/910.0% 4,000

10,000IFRS※1 Macro Kiosk’s earnings has been reclassified as discontinued operations with it’s deconsolidation in May 2020 and presented separately from the continuing operations as“Profit/Loss from Discontinued Operations”, as per IFRS accounting standards. The revenue, operating profit and profit before incomes taxes present the figures for continuing
operations only and exclude the discontinued operations.
※2 ROE: The ratio of Profit to Equity ratio is used for J-GAAP and the ratio of Profit to Equity Attributable to Owners of Parent is used for IFRS.
※3 EBITDA: The sum total of operating profit and depreciation and amortization is used for J-GAAP; the sum total of operating profit and depreciation is used for IFRS.

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

9

2.

Summary of Financial Results for FY2020

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

10

2.1

Financial Results Summary（IFRS）

Outperformed Guidance, increased dividends and reclassified
MK as discontinued business from Q3（Mil. Yen）

FY2019ActualFY2020
Guidance

FY2020
ActualRevenue

26,922

31,418Operating Profit

9,562

Pre-tax Profit% Achievement
vs. GuidanceYear-on-Year

33,046105.2%＋22.7％

10,376

10,388100.1%

＋8.6％

9,297

9,867

10,989111.4％＋18.2％

ProfitAttributable to
Owners of Parent

5,267

6,110

7,624

124.8%＋44.7％EBITDA ※1

10,458-

11,839-＋13.2％DPS (Yen/shr)

¥36

¥42

¥52

Operating Stores(End-4Q)※2

KPI

141,573 stores（％: YoY）（＋27.1％）TRX Volume(4Q standalone)¥16 increase YoY
TRX Value(4Q standalone)

Approx.

Approx.

Approx.

Approx.

720 mil. (＋47.5％)740 mil. incl. offline (＋48.6％)¥1.3 trn (+22.6％)¥1.5 trn incl. offline(+28.6％)※1 EBITDA＝Operating Profit + Depreciation.
※2 Figures exclude the recent increase in operating stores from a specific merchant. If included, the number of operating stores is 324,062 stores (up ＋41.7％ YoY)
for the same period.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

11

2.2

Operating Profit GrowthPrevious year’s OP was uplifted due to IFRS standards; OP
growth rate of 25% if compared to initial OP plan(%: YoY)■ FY2020 Earnings and YoY (Mil. Yen)
Initial Plan※1
Revenue

Operating profit＋14.0％＋22.7％
32,121MK Impact－5,199 26,922

MK Impactand others

33,046FY2019FY20202019年９月期
2019年９月期
2020年９月期
FY2019（Before applying(Reclassifying
discontinued
operations)（旧基準数値）（非継続事業区分）（非継続事業区分）※3
standards)※2+25.1%＋8.6％
10,3889,562

MK Impact
8,301 +1,261

FY20192019年９月期
2019年９月期
2020年９月期
2019年９月期
2019年９月期
2020年９月期
FY2020FY2019（Beforeapplying※3 （非継続事業区分） （非継続事業区分）（前期基準）（旧基準）（非継続事業区分）discontinued（非継続事業区分）(Reclassifying
operations)standards)

With the deconsolidation of MACROKIOSK in May 2020 the profit or loss from MK is
reclassified as discontinued operations and presented separately from continued
operations. The figures for revenues, operating profit and pre-tax profit for FY2020 and
FY2019 present continued operations only and exclude the discontinued operations.
※1
※2
※3

Figure shows the FY2020 revenue YoY change compared to previous year’s amount before reclassifying discontinued operations which was announced on November 12, 2019at the FY2019 results announcement.
Figure shows the FY2020 OP YoY change compared to FY2019 amount before reclassifying discontinued operations.
Figure shows the FY2019 amount before reclassifying discontinued operations, which as announced on November 12, 2019 at the FY2019 results announcement.

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

122.3.1

Transaction volume and value

Return to baseline growth trajectory next FY, after the
temporary blip caused by COVID-19■ Trend forecast of online TRX volume and value (image)Baseline growth

TRX Volume
TRX Value

TRX Volume
Temporary growth acceleration
due to growth of micropayments
such as digital contents

TRX Value
Temporary growth deceleration
due to high ticket-valuetransactions such as travel
～2019

2020

2021

2022

※ Above figures exclude offline payments.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

13

2.3.2

Revenues and Operating Profit

Revenue growth rate accelerated each quarter as planned■Quarterly trend of revenues (%: YoY)

■Quarterly trend of operating profit (%: YoY)

Full Year +22.7％

Full Year＋8.6％(Mil. Yen)
10,000(Mil. Yen)
3,500

2019/92020/9

8,000

＋9.8％

＋29.5％＋31.0％

2019/9＋20.3％

2020/93,000＋21.0％－0.8％＋17.1％
2,500

－2.4％
6,000

2,000

1,500
4,000

1,000
2,000
500

0

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

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

14

2.4

Summary

Expect growth to outperform plans despite the unforeseen changes
in business environment■ COVID-19 Impact
Positive

One-off

Surge in new online restaurants

Growth trendline (image)

Remittance increases on refund
demandStructural

Accelerated adoption of corporate DX
Online and Cashless payment the norm

InitialPlan＋

Multi-payment terminal, expansion of UM(Unattended Market), increase inPayment After Delivery

2021～

Current

One-off

Outcome

Structural

Plan

Nesting consumption, indoor entertainment
Digital content, apparent, food, deliveries,
etc.

Negative

One-off

Plunge in travel (domestic) and ticket sales

One-off

Decline in payments at offline stores
Delays in large projects
stera

ー

Structural

Platform development
FI’s, Utilities, Telecom, Retail

Structural

Decline in overseas business and leisure travel

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

15

3.

FY2021 Guidance

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

16

3.1

Guidance for Consolidated FY2021 (IFRS)Plan to achieve revenue growth of 20% and OP growth of 25%■Consolidated FY2021 Guidance (IFRS)FY2020 Initial
Plan ※FY2020
Actual(Mil. Yen, % are YoY changes)

FY202
Guidance(Reference)

YoY

2020年9月期
Vs. FY2020
予算比
Initial Plan

Revenues

31,41833,046

39,792＋20.4％+26.7％

Operating
Profit10,376

10,38812,985＋25.0％+25.1％

Pre-tax
Profit9,867

10,98912,426＋13.1％+25.9％

Profit

6,216

7,693

8,042

+4.5%

+29.4％

6,110

7,624

7,930

+4.0%

+29.8％

¥42

¥52

¥54

+¥2

+¥12

Profit Attributable to
Owners of Parent
Dividend per share※ Figures shows the revised guidance amounts as announced on August 7, 2020.

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

17

3.2

Initial plan of achieving targets

Planned to achieve targets by executing on priority initiatives
to generate incremental revenues of ¥10 bn■FY2021 Revenue target and priority
initiatives (Mil. Yen)
InternalPlan＋20.4％

1Q

2Q

10,050Organic
growthFinTech4Q

Utility Phase I

Service add-ons
Telco
X
Y

Offline Payment (IoT)
Unattended Market（UM)stera full-scale launch

OfflinePayment（IoT）

Global major players
Phase I

Platform※ Incl.
financial
institution
services

FY2020Act.
2020/9実績

3Q

Platform

5,000

33,046
Global

39,792

Priority initiatives and timing of contribution to
FY2021 earnings

FinTechService add-ons
X

Payment services in new domains

FY2021
Target2021/9目標
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

3.3

Operating Profit Forecast by Company

Sustain high growth on consolidated basis while deploying
upfront investments to secure medium to long-term growth■Revenue size and OP growth rate by company: Drivers of FY2021 growth
FY2020 Actuual

FY2021 forecast＋40％

Revenue size (image)

Growth Drivers
Plan to install 300K stera terminals in 5 yrs
Unattended Market: 4.5 mil. units※FG current share: 41K of a 4 mil. unit market

OP Growth Rate

Sep.～ Global major players
Nov.～ Utility (TEPCO Energy Partners)
Rollout of large projects starts
Expect contribution from GoTo campaign and
COVID-19 related demand
Achieve org. structure that can sustain 25% growth
New payment solution for small operators
Investment phase
Medium/long term
growth driverMarket growth of 30％ (Deferred Payment)
Service start in new domains (upfront
investments required)＋10％

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

19

4.

Key Initiatives and Growth Strategies

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

20

4.1

Our position in a New Normal

DX support services that improves client’s PL & BS
■Customer needs & PL/BS changes
PL

ExamplesOur DX support services

Revenue

Online shop, Utility bills

CoS/COGS

Multiple payment methods

SG&A

Paperless (lowered postal cost)

NEW TEPCO EP “SMS Payment Choice”

CF improvement service

NEW Cycle byGMO

Personnel

PG Multi-Payment service

GMO BtoB Early Payment

Rent
Communication

Improve collection rate

NEW Invoice Smartphone Payment

Prevent suspicious transactions

NEW Fraud prevention service (Sift)OP
Restaurants
BS

Asset

Delivery sales

NEW Online sales support

Cashless implementation

NEW GMO Cashless Platform

Cash

Reduced headcount (lower personnel cost)

Receivables

Store closures (lower rent expense)

Provisions for
doubtful accounts

CF improvement service

Fixed assets

Liabilities
PayablesGMO B2B AR Guarantee

Event, Ticket Sales
Merchandise sale

Payment arrears

NEW Electronic Invoice Early Payment

Refund demand (lower postal cost)

NEW Online sales support
Remittance service (for refunds)

Net Assets※NEW = Press release made during FY2020
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

4.2

Expansion of TAM and Profit Targets

Expand scope of business in the enormous market to achieve2025 OP target of ¥25 bn■ TAM by market segment, GMV, OP target and Priority Initiatives
MarketBroader EC
FinTechOfflineBaaS
Segment
2020
2025
2020
2025
2020
2025
2020
2025
TAM
（¥ trn）

20

45（B2C EC）

352times 352x
X

（B2B EC）

GMV（¥ trn）

OP（¥ bn）

Priority
Initiatives

1

3（Deferred payment
market)Global
2020

2025

118

2 X times 2x

50X times50x（Cashless market）（IT investment by
Financial Institutions（Lending in US/Asia）

87

5

13

－

－

1

5

－

－

－

－

7.5

18.0

1.8

3.0

0.5

2.0

0.5

1.0

0.5

5.0

Platform

FinTechOffline Payment (IoT)

Global major
players

B2B payment service

FinTechPlatform

GlobalFinTechB2B payment service※Figures for TAM, GMV, OP (operating profit) are our estimates and targets. Figures are estimates and are rounded down to the nearest whole number.
There is some overlap in OP for the FinTech and OP figures. Offline OP includes companies other than GMO Financial Gate.
TAM: Total Addressable Market, BaaS: Bank as a Service, GMV: transaction (TRX) value.

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

22

4.3

Platform: Broader EC

Launch of phase I of platform to enable paperless and lowercost※

OP potential of broader EC
2020
TAM

（¥ trn）

OP（¥ bn）■ Fee and spread revenue in online payment（Mil. Yen）
3,000

2025

20
352

X times

7.5

2～2.7x

2.3x

45 （B2C EC）
352x （B2B EC）

Fee
SpreadSpread＋27.4％ YoY

2,500

16.0～20.0
2,000■ Customer needs
Paperless and lower cost of payment

1,500

Payment service to global operators
Quick & cheaper payment implementation at SMEs

1,000

Fee
＋30.0％ YoY■ Priority Initiatives
Industry specific platform

500

Service launch in November to
NEW
TEPCO Energy Partners
Omni-channel
Global major players
Strengthen position in SME spaceNEW0

17/12 18/3 18/6 18/9 18/12 19/3 19/6 19/9 19/12 20/3 20/6 20/9

■GMO-EP TRX value and acquisition of new merchants
Q4 standalone TRX value＋62.0％ YoY

Q4 standalone new merchant acquisitions ＋62.4％ YoY
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

4.4

Platform to Financial Institutions

Increase number of services to FI’s to expand stock revenue
OP Potential of Financial institution platform
2020
TAM

2

X times

0.5

2x～（¥ trn）

OP（¥ bn）

2025

2x（IT system
investment
by FIs)1.0～■Customer needs■Quarterly trend of stock revenue from financial
institution businesses

Total＋36.7％ YoY
Ginko Pay
＋51.2％ YoY

Need to realize cashless initiatives
Low cost and high security needs■Growth strategy and progress to date

Issuing/Acquiring＋32.1％ YoY

Platform to financial institutions
Ginko Pay
Issuing/Acquiring※GCP：GMO Cashless Platform
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

4.5

FinTechExpand Payment After Delivery and high-margin services,
improve revenue growth rates and capital efficiency
OP potential of FinTech
2020■Segment revenues andprofit (Q4 standalone)

2025

TAM

1

3x

3

OP

1.8

1.5x～

3.0～

（¥ trn）（¥ bn）（Deferred
payment market)+47.3％ YoY

New services ※＋70.1％

Finance Lease
B2B Factoring■Customer needs
Non-credit card payment methods

Remittance Serivce

Refunds for travel and event cancellations

GMO Payment After Delivery

The ‘funding gap’ faced by SMEs

Early Payment494■ Growth strategy and progress to date462

+121.5％
Segment profit※1

B2B financial services, expand Payment After Delivery
Creation of new services－6.5％+49.1％

Lending

Shift assets to high margin services－11.7％＋209.7％※Impact fromchange ofprovisioning
rate for sometransactions

Q4 FY2019＋37.8％+11.5％Q4 FY2020※1 Services where ROIC exceeds WACC: Payment After Delivery, overseas Lending, B2B Factoring (Invoice Early Payment, B2B Early Payment), B2B AR Guarantee.
（ROIC = Annual estimated NOPAT ÷ monthly average BS balance)※2 The YoY figures are not available for B2B AR Guarantee (launched May 2018) and Kondo Barai (“Pay Later”, launched June 2020) .

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

25

4.6

Offline Payment / IoT

Cashless adoption accelerates with cashier-less payment
technologies and omni-channel shift

OP potential of offline payment (IoT)
2020
TAM

（¥ trn）

OP（¥ bn.）

87
0.5■ Quarterly trend of TRX volume and value of GMO-FG（Mil. Yen）

2025
3x
4.5x～

TRX Value

118■Customer needs(Thousand trx)

Full scale rolloutof stera in FY2021（Cashless market)（Incl. companies
than GMO-FG
2～ othergroup)TRX Volume200,000

20,000Vol. ＋115.7％ YoYVal. +104.2% YoY
150,000

Cashless and unmanned payment

Start of operations atseveral large clients

15,000

Cost reduction
100,000

10,00050,0005,000■Growth strategy and progress to date
Unattended Market (UM)Full scale rollout of stera NEW
Sales expansion of next generation multipayment terminal
O2O, Omni-channel strategy (group synergy)00Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

26

4.7.1

Global: Business Portfolio

2C2P turns profitable; profit expansion from a sound asset
base that can withstand a crisis

Global’s OP potential■ Global’s business areas

2020
TAM

50

OP

0.5

（¥ trn）（¥ bn.）

2025
X times

USA MSB
India MSB

50x（US/Asia Lending)Indonesia MSB

5 （overall Global OP)

Loan balance
FY2019FY2020■Global business earnings and related BS items(¥ Mil.)①

Payment Processing
Business

Money Service
Business

Sum Total

19/9

20/9

YoY

19/9

20/9

YoY

19/9

20/9

YoY

Revenue

42

53

＋26％

387

575

＋48％

429

630

＋45％

OP

－

－

－

－

－

－

117

235

＋100％

－19

514

－

98

749

－

2,900

4,204

＋44％

2,198

2,198

－

Equity income
from 2C2P②

Profit incl.
equity income

Asset
EquityAvg. lending balance

2C2P cumulative equity
investments

2,198

2,198

2,900

4,204

－

－

※ There has been no occurrence of payment in arrears, irrecoverable for the global lending service.

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

27

4.7.2Global: FinTech supporting MSB services (Lending)

Developing pipeline towards Phase 2 adjusted to the timing ofrecovery in each country■ Current environment■Country-specific strategies ※ (GDP growth rate forecasts)

USA MSB➢ Gradual recovery, infection cases continue➢ Intensifying competition in loan market （％）

Deteriora
tion

Recovery“With Corona”“After Corona”
Phase3

８

Asia MSB
Indonesia➢ Gradual recovery, infections cases continue➢ Slowing down of competition
India➢ On recovery path, infection cases continue➢ Low visibility of loan market

４

0

①

Asia

Phase2-４

USA■ Current stance②

Continuation of Phase I
Building up pipeline towards Phase 2,
but continue to take a cautious stanceon extending credit

EuropePhase1

Japan

-８
2020
2021
Current

2022

2023

2024

2025

※Referenced IMF’s ”World Economic Outlook, October 2020: A Long and Difficult Ascent”,
figures for 2022 and onward are our estimates.

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

28

5.

Financial Highlights

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

29

5.1

Balance Sheet Changes

Increase in deposits received and MSB-related assets
Asset（Mil. Yen）

192,022200,000

160,000

160,000

139,990140,000

100,000

40,00020,000095,830116,858
52,013100,000

42,033
27,171

23,18528,822

Prov. for 40,000
Prov. for57,778
doubtful
53,530 doubtful
accounts
accounts
20,000－2,574－1,968

7,965

7,275

9,590

End-Sep 2018
※1

End-Sep 2019
※2

End-Sep 2020

Inv. Related

MSB related

Other

Cash & Equivalent

116,858

86,75146,75238,80018,021
16,63080,00060,000

Prov. for43,674 doubtful
accounts－2,003

139,990140,000
120,000

80,00060,000

192,022180,000

180,000

120,000

Liability/Equity（Mil. Yen）
200,000

16,814

14,327

16,745

16,6766,300
14,732

17,19926,02027,53933,453End-Sep 2018

End-Sep 2019
※2

End-Sep 2020

15,12318,931
18,0500EquityMSB related

Borrowings

Corporate Bonds

Other

Merchant Deposits※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.

30

5.2.1

Revenue by business model (FY2020, continuing operations)＋21.0％ YoY
Spread（+）Strong online payment excl. one-off
impact from certain customers（+）Growth of GMO Payment After Delivery（+）Growth of overseas lending（Mil. Yen）
35,00033,04630,00026,922
16,02325,00013,23920,000

8,931
7,391

15,000

5,709

10,000Fee＋20.8％ YoY（＋）Strong online payment excl. one-offs（＋）Strong offline payment（＋）Increase in remittance service fromrefunds (Q2 to Q4)
Stock＋16.5％ YoY（－）Delays in financial institution businessdue to COVID-19

4,899

5,000

2,380

1,392

InitialStock

FY2020Fee+71.0％ YoY（+）Strong trend in payment terminal
sales for the offline market

0
FY2019InitialSpreadCopyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

31

5.2.2

Quarterly trend of revenue by business modelIFRS

J-GAAP（Mil. Yen)

4,500

4,290

4,414

4,000
3,647 3,672
3,450

3,500

3,365
3,289
3,136

3,000

2,816

2,500

2,291

2,433

2,558

2,671 2,532

2,527
2,383

2,057

2,000

1,876

1,500

1,227 1,259

1,000

804
532

500

516
105

0

1,938

959

931
601

528
142

612
565

630
594

1,383 1,441

724

667 728
663

794
749
786
748

687
344

127

150

142

161

151

1,767 1,907 1,847 1,813 1,825
1,662

1,527
1,026

2,083

1,120

713

1,192
1,266

723

1,180
791

749

828

889

1,222 1,236 1,261

236

324

248

386

1,359

659
297

1,411 1,461 1,478

920
562

451

185

1,406

1,520

390

316

323

362

725
490

506

15/1Q 15/2Q 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

イニシャル
Initial

ストック
Stock

フィー
Fee

Spreadスプレッド※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.

32

5.3

Segment revenue and OP YoY (FY2020, continuing operations)■ Segment operating profit■ Segment revenue（百万円）（Mil. Yen）

35,000＋22.7％ YoY

14,000602

9,416

25,000＋ Growth of GMO
Payment After Delivery＋ Strong Remittance, Early
Payment, Overseas Lending

7,478

20,00023,037

18,811

15,00010,388＋25.9％ YoY
10,000＋22.5％ YoY－8.8％ YoY

11,581

10,031＋15.4％ YoY＋ Growth of online payment＋ Strong trend of offline payment＋ Expansion of Ginko Pay

4,000

2,000

0

FY2020

Payament Processing Business

1,799+49.0% YoY
6,000

※1

FY2019－29.8％ YoY＋ Growth GMO Payment
After Delivery＋ Strong Remittance, Early
Payment, Overseas Lending－ Excl. impact from change inprovisioning rate:

8,000

Of which, offline and like-forlike online payment(GMO-PG parent only):
Up 31.8% YoY

5,000

9,562
1,972

＋ Growth of online payment＋ Strong trend of offline payment＋ Expansion of Ginko Pay

10,00077
110

12,000632

0Up 8.6％ YoY※2(excl. one-offs and special factors: Up 18.0％ YoY)

－4.9％ YoY

30,000（mil. Yen）

Money Service Business

FY2019FY2020

Payment Enhancement Business

Total※1 Like-for-like online payment excludes: ① Contract expiration of a large merchant in the previous Q2, ② contract termination of a certain merchant in the previous Q2,③ change in contract terms to certain merchants in the current term’s Q1.
※2 Special factors: excluding the impact from the change in provisioning rate for certain transactions.

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

33

5.4

FinTech: Assets & profit growth (cumulative basis)

Expansion of high-margin services; YoY decline from reversals
of provisions booked in the previous year
■ MSB related assets(end-September)+7.9％■ Segment revenue－70.1％＋70.2％■ Segment profit－41.6％＋276.7％+25.9％－8.8％(%: % YoY)

Impact fromchange in provision
rate for doubtful
accounts for sometransactions＋26.7％+5.8％＋49.0％+24.7％＋16.1％＋8.2％+42.2％+8.8％
2019年9月期第4四半期末
2020年9月期第4四半期末
End-Sep 20192020年9月末
End-Sep
2020

Lending

Early Payment

FY2019

GMO Payment After Delivery

FY2020※1

Remittance

FY2019B2B Factoring

Finance Lease

FY2020※2

New serivces※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” (“Pay Later”, launched June 2020). YoY figures are not displayed.

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

34

5.5

Consolidated Cashflow Statement（Mil. Yen）

J-GAAP

55,000■FY2020 changes (Mil. Yen)
Operating CF:＋49,118
Pretax profit+10,989
Depr. & Amort.
＋1,520Inventory－1,233
Advances paid
+1,457
Accured income－2,019Chgs in payables＋1,379Accrued expenses＋3,429Deposits received＋36,225
Income taxes－3,041IFRS

50,00045,00040,00035,00030,00025,00020,00015,00010,0005,000
0-5,000-10,000-15,000

FY2013 FY2014 FY2015 Y2016
Operating CF

Investing CF

Y2017 FY2018 Y2019 FY2020
Financing CF

FCF

Investing CF:
Acquisition of
intangibles－4,493Financing CF:
ST borrowings
Repayment of
LT borrowings
Dividends
FCF：
Cash &:
Equivalent－785＋3,000－1,267－1,508－2,648＋44,695
95,830※ 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.

35

5.6

Major Quarterly KPIs

Group-wide annual GMV value reaches ¥5.8 trillion※1※2

Operating stores: 141,573 stores, GMV volume approx. 720 mil., GMV value approx. ¥1.3 trillion.
（¥100 Mil.）
14,000（Stores）
13,000140,000
12,00011,000(Reference 1) GMV volume incl. offline
GMV value incl. offline（10K
transactions）
80,000Approx. 740 million
Approx. ¥1.5 trillion(Reference 2）Annual consolidated GMV value: Approx. ¥5.8 trillion
GMV value excl. GMO-FG:
Approx. ¥5.2 trillion

70,00010,000120,000

9,000
8,000

60,0007,000
100,000

6,000
5,000

50,0004,000
80,00040,000

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

60,00030,00040,00020,00020,00010,0000

0

Recurring billing TRX Volume

Pay-as-you-go billing TRX Volume

Operating stores

TRX Value※1 Figure excludes a significant increase in operating stores from a specific merchant. If included, operating stores would be 324,062 outlets as of end-September 2020 (up 41.7% YoY).
※2 Operating stores are measured on an end-of-quarter basis. GMV value and volume are the total for the respective quarter and exclude GMO Financial Gate.

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

36

Thank You Ver y 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.

Reference Materials

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

38

Factors affecting OP & Pretax Profit (FY2020)
SG&A increase due to higher provisions; Pre-tax profit upliftedfrom increase in equity method income■ OP Waterfall chart (Up 8.6% YoY)（Mil. Yen）
SGA
GP
increase increase＋4,576 ＋3,659
Other
Other expenses
revenue＋98
10,388＋7■Pre-tax profit waterfall chart(Up 18.2% YoY)

（Mil. Yen）

EquityFinancialincomeFinancialincome expense ＋536 10,989
OP increase
－ 36
＋293
＋825

9,297

9,562
・Increase in provision for
doubtful accounts at PS＋1,073 mil.
・Higher rent and otherexpense from officerelocation＋318 mil.
・Higher provision for oneoff factors
Current term ＋264 mil.
Prev. term
－356 mil.
・Cost of sales improvement+185 mil.
・Revenue increase +4,390 mil.

FY2019 OP

FY2020 OP

・Increase in gains from inv.
partnerships+301 mil.
・Decline in interest &dividends received－7 mil.

・Increase in equity method
income (2C2P turns a profit)+101 mil.
・Gain on change in equity to 2C2P
+435 mil.

FY2019Pre-tax Profit

FY2020Pre-tax Profit

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

39

Quarterly trend of CoS and SGA ratio
CoS ratio fluctuates with changes in revenue mix,
deconsolidation of MK caused ratio to decline※

IFRS

J-GAAP（Mil. Yen）

9,356

※47.2％

9,030※40.3％

46.8%
8,000

8,623
8,246

※39.9％

44.2%

7,769

43.6%
40.9%

7,000
6,086
5,645

32.1%

5,000

31.9%

35.3%

33.4%

37.6%

36.3%

33.2%

5,716

42.7%

41.2%

6,563

6,098

50.0%

8,160

7,945

7,295
41.1%

40.2%
6,459

6,000

8,927

50.4%

9,000 ※41.7％

36.1%
35.5%

36.4%

35.4%

35.9%

35.2%
33.3%

31.9%

36.7%

36.6%

40.0%

36.8%

35.2%

32.7%
26.7%

27.9%

30.0%

4,347
4,000

25.5%

3,720
2,997

3,067
3,000

2,497
2,036

2,000

1,813

2,494

2,491
1,823

1,940

2,035

2,595
2,143

2,382
2,320

3,098
3,004

2,581

2,791
2,807

2,818
2,646

2,986

3,181

3,433
3,292

3,813
20.0%

3,174

2,664
2,302

2,488

10.0%

1,109
1,000

0

0.0%
16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 18/12(1Q) 19/3(2Q) 19/6(3Q) 19/9(4Q) 19/12(1Q) 20/3(2Q) 20/6(3Q) 20/9(4Q)

Revenue

Cost of Sales

SGA

Cost of Sales ratio

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 toits deconsolidation in May 2020.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

40

Quarterly trend of PG and EP’s CoS and SGA ratio
CoS ratio of online payment business remains stable（Mil. Yen）
6,370

50.9%

6,110

6,000
44.9%

5,032
4,663
4,297
3,937

3,653
3,397

22.6%

36.7%

2,000

24.2%

24.3%

778

770

822

1,039

20.9%

20.7%

20.9%

21.2%

2,319

2,253

1,611

1,067

1,783

1,071

30.0%

2,649
21.0%

1,043

1,016

21.0%
20.0%

1,800

1,592
1,005

20.2%
1,984

1,874

1,785

928

32.5%

23.0%
20.7%

1,577
1,180

40.0%
36.5%

34.2%

22.1%

1,525
1,225

41.6%

33.1%

23.6%
22.2%

5,271

36.7%

3,469

21.3%

5,126

4,816

3,712

1,890

767

4,840

36.8%

2,212

1,000

5,142

4,384

34.0%

33.5%

4,000

45.2%

44.8%

5,000

3,000

50.0%

47.4%

45.3%

1,065

1,069

1,117

1,235

1,339

0

10.0%

0.0%
16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 18/12(1Q) 19/3(2Q) 19/6(3Q) 19/9(4Q) 19/12(1Q) 20/3(2Q) 20/6(3Q) 20/9(4Q)

Revenue

Cost of Sales

SGA

Cost of Sales ratio

SGA ratio※Based on J-GAAP

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

41

Revenue by business model (Q4 standalone, continuing operations)（Mil. Yen）

Spread

8,927

9,000

8,000

7,000

6,814

4,414

6,000

3,364

5,000

2,527

4,000

＋31.2％ YoY（+）Strong online payment excl. one-off
impact from certain customers（+）Growth of GMO Payment After Delivery（+）Growth of overseas lendingFee＋38.5％ YoY（＋）Strong online payment excl. one-offs（＋）Strong offline payment（＋）Increase in remittance service fromrefunds

1,825

Stock

3,000

1,478
1,261

2,000

1,000

506

362

InitialStock

Q4 FY2020

Fee（－）Delays in financial institution businessdue to COVID-19
Initial+39.8％ YoY（+）Strong trend in payment terminal
sales for the offline market

0
Q4 FY2019＋17.2％ YoY

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

42

Revenue trend by business model (annual)（Mil. Yen）

J-GAAP

42,000IFRS

40,00038,00036,00034,00032,00030,000Spread28,00026,00024,00022,00020,00018,00016,000Fee

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

Stock

4,000
2,000

Initial0

2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9 2021/9E
TSE
Listing※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 on May 2020.

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

43

Segment revenue and OP YoY (Q4 standalone, continuing operations）■ Segment revenue（Mil. Yen）

Up 31.0％ YoY（Mil. Yen）

9,000

153

＋13.3％ YoYConsolidated
Down 0.8％ YoY※2（excl. special factors ＋11.3％ YoY）

3,400

462

8,000

7,000

135

6,000

1,733

＋47.0％ YoY

2,900＋ Growth of GMO
Payment After Delivery＋ Strong Remittance, Early
Payment, Overseas Lending

2,400

2,548

5,000

6,228
4,000

4,945

3,000

（Mil. Yen)

■ Segment operating profit＋25.9％ YoY＋ Growth of online payment＋ Strong trend of offline payment＋ Expansion of Ginko Pay

2,630

2,610
494

＋ Growth GMO Payment
After Delivery＋ Strong Remittance, Early
Payment, Global Lending－ Excl. impact from change inprovisions+121.5% YoY＋9.5％ YoY

2,933

1,900

1,400

－6.5％ YoY

＋ Growth of online payment＋ Strong trend of offline payment＋ Expansion of Ginko Pay

2,679

※1

Of which, offline and like-forlike online payment(GMO-PG parent only):
Up 30.3% YoY

2,000

1,000

0

Q4 FY2019

Money Service Business

-2

-9

400

(100)

Q4 FY2020

Payment Processing Business

900

Q4 FY2019－

Q4 FY2020

Payment Enhancement Business

Total※1 Like-for-like online payment excludes: ① Contract expiration of a large merchant in the previous Q2, ② contract termination of a certain merchant in the previous Q2,③ change in contract terms to certain merchants in the current term’s Q1.
※2 Special factors: excluding the impact from the change in provisioning rate for certain transactions.

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

44

FinTech: Assets & profit growth (Q4 standalone)
Expansion of high-margin services; YoY decline from reversals
of provisions booked in the previous year
■ MSB related assets(end-September)+7.9％■ Segment revenue■ Segment profit（％: % YoY）

－70.1％＋70.2％－11.7％＋209.9％+47.3％－6.5％
Impact fromchange inprovision rate
for doubtful
accounts＋70.1％+5.8％+121.5％+49.1％＋16.1％＋37.8％+11.5％+8.8％
End-Sep 2020
End-Sep 20192019年9月期第4四半期末
2020年9月期第4四半期末
Lending

Early Payment

2019年9月期
Q4 FY2019
第4四半期

※1

GMO Payment After Delivery

2020年9月期
Q4 FY2020
第4四半期
Remittance2019年9月期
Q4 FY2019
第4四半期

B2B Factoring

Finance Lease

2020年9月期
Q4 FY2020
第4四半期

※2

New 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 (“Pay Later”, launched June 2020). YoY figures are not displayed.

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

45

Consolidated KPI analysis (Q4 standalone)
Accelerating DX adoption by customers and services, TRX volume
surges, TRX Volume also in uptrend※1

Operating stores ＋27.1％
TRX Volume ＋47.5％
Prev. Q4
＋16.7%※2 Prev. Q4＋32.6％※2（mil. trx)

（Stores）
140,000※1

TRX Value
Prev. Q4

＋22.6％※2＋27.1％(¥ bn)TRX Value＋27.1％

750
700

120,000＋47.5％

650

100,000

TRX Value excl. travel and ticket

1,400

1,300

＋22.6％

600
80,000

1,200

550
500

60,0001,100

450

40,000400
20,000

1,000

350
300

0

2019/9末

2020/9末・Excl. increase in delivery related
stores＋17.1％
・Excl. increase in communications
related stores＋26.2％※1※2※3＋30.4％

900
18/9 18/12 19/3

19/6

19/9 19/12 20/3

20/6

20/9

18/12

19/3

19/6

19/9

19/12

20/3

20/6

20/9

・Sectors with particularly high TRX ・High value-per-transaction sectors
volume growth ※3
such as travel and ticket sales
Utility＋ 48.0％recovering somewhat in Jul-Sep quarter
Delivery/Newspaper ＋177.4％
Excl. travel/ticket＋30.4％ ※3
Digital content＋129.0％Apparel＋ 86.5％・Acceleration of merchandise EC

Excludes offline payment. If offline is included, the Q4 (July～September 2020) TRX volume grew +48.6％ (prev. Q4 up 33.1％), TRX value grew 28.6％ (prev. Q4 up 27.8％）
Figures show the YoY growth rates for Q4 FY2019 (July～September 2019, end-Sep 2019).
Figures are YoY growth rates of GMV values by sector for PG Multi-Payment Service for the Q4 period (Jul～Sep). Apparel excludes a large merchant.

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

46

YoY comparison of GMV value by sector
Travel, hobby and sports show some recovery, accelerated online shift of food &beverage and apparel※1■Scatter diagram of major merchant sectors by GMV and Revenue proportion
State of Emergency
2019
2020
High revenue contribution
High
Digital Content
Utility
Sector name

Revenue proportion

Monthly TRX value trend (Indexed)
FY2020 and FY2021 outlook
arrow legend:
GMV YoY

±10％

＋30％～

Apparel※2

Food & Beverage

Ticket2021 2022

2021 2022

2021 2022

2021 2022

2021 2022

Travel & Transport

Insurance
Hobby & Sport

2021 2022

2021

2022

2021 2022

Low revenue contribution※1 Shows the relative position of each merchant sector based on the TRX value and revenue during Q4 FY2020 for the PG Multi-Payment Service which accounts
for 80% of total TRX value.
※2 Excludes certain large merchants.

High
GMV
Proportion

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

47