Financial results briefing for the 2Q of FY2017（January 1, 2017-March 31, 2017）
Incident report and business results for the current fiscal period

May 1, 2017
GMO Payment Gateway, Inc.
(3769: Tokyo Stock Exchange section-1)

The 49 th IR Meetinghttps://corp.gmo-pg.com/en/

A Cautionary Note About
the Contents of this Document

The contents of this document are based on generally
recognized economic and social conditions, as well as
premises judged to be reasonable by GMO Payment
Gateway as of May 1, 2017.
However, please note that they 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. Information leak incident due to unauthorizedaccess
2. Summary of financial results for 2Q FY2017
3. Business environment and segments progress
4. Financial highlights
5. Reference materials

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

3

1. Information leak incident
due to unauthorized access

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

4

1.1

Incident facts

Information Leak Due to Unauthorized Access happened
between March 8 and March 9, 2017
■FactsWe detected between March 8,2017 and March 9,2017 that an unauthorized access had exploited thevulnerability of application frame work, Apache Struts2. It became clear that Tokyo Metropolitan Government
credit card payment site for metropolitan tax and the credit card payment site for group life insurance rider of
the Japan Housing Finance Agency were affected entailing the leak of personal information.

■The number of “units” of information leaked（Numerical value is a numerical value that corresponds to each “unit”, it does not relate to the total number of “units” affected by
the incident.）

・” Tokyo Metropolitan Government credit card payment site for metropolitan tax”
1. Credit card numbers, expiration dates
2. In addition to 1, Email Address

364,181
262,049

・” Credit card payment site for group life insurance rider of the Japan Housing Finance Agency”
1. Credit card numbers, expiration dates
2. Security code (*)
3. Email Address (*)
4. Address
5. Phone number
6. Name, dates of birth

40,872
31,12428,55239,08537,38036,377（*）Regarding security code and Email Address, clients who applied for credit card payment on the “credit card
payment site for group life insurance rider of the Japan Housing Finance Agency” were affected.
Since information on security codes and emails is not required upon submitting the paper application,
the number is less than the number of credit card numbers.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

5

1.2

Recurrence prevention measurements

Establishment of “Recurrence Prevention Committee” on March 14,
announcement of Investigation Report on May 1, 2017
■Objectives of Recurrence Prevention Committee
Inspect the fact situation of the incident.
Inspect the factors of the incident.
Recommend of recurrence prevention measures.

■Inspection period
Established on March 14, 2017, committee meeting had been conducted for a total of 8 times fromthe same day until April 30, 2017.

■Recurrence prevention measures*Please refer to “Investigation Report on Information Leak Due to Unauthorized Access” Ⅶ for details.

Technical prevention measures (Short term measures and Medium- and long-term measures)
Prevention measures related to information security management
Prevention measures related to overall risk governance system and corporate culture
Implementation of recurrence prevention measures
We implemented the following prevention measures by April 14, 2017
・Short-term technical prevention measures
・Reconsideration of procedures for security incident reporting
・Revision of guidelines regarding system development process
In addition, as efforts to relaunch the Metropolitan Tax Payment Site and to prevent recurrence,
the Company conducted PCI DSS assessment by PCF on the Metropolitan Tax Payment Siteand the Insurance Rider Payment Site. As a result, it was confirmed that they satisfy the PCI DSS
requirements as of April 14, 2017 (Metropolitan Tax Payment site relaunched from April 24).
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

6

1.3

Impact on financial results

1H results based on reasonable estimation as of now■Extraordinary expense：▲270 Million Yen

・Information security countermeasure cost
Information security measures cost, as payments required for sending letters of apology to ourcustomers, handling of inquiries and investigations into unauthorized accesses as well as
information leakage (18 million yen on expenditures for information security measures and251 million yen on provision for information security measures) .

■Extraordinary income：＋160 Million Yen

・Insurance reimbursement■Total：▲110 Million Yen* We will be recognizing occurrence of expenditures relating to reissuance of credit cards and fraudulent uses of credit cards
when we receive bills from operating bodies of the above two websites, which they will be doing when various credit card
issuers bill the said expenditures to those operating bodies. Therefore while the likelihood of occurrences of those
expenditures is considerably high, we cannot directly ascertain the status of such occurrences. We are working closely
together with various credit card companies, but occurrence of the said expenditures have not been recognized as at theend of the cumulative second quarter of this consolidated fiscal year, and as we are also unable to reasonably estimate
the probability of future occurrence, we have not recognized expenditures relating to credit card reissuance and fraudulent
use of credit cards in the cumulative second quarter of this consolidated fiscal year. Since those costs are expected to beeligible for insurance reimbursement to a certain extent, their impact on the profit and loss of the company is believed tobe negligible even if those are to take place.

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

7

2. Summary of financial results for 1H and
Performance Forecast for FY2017

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

8

2.1

Summary

Sales up 19.1％ over forecast, net income down 23.1% over forecast
because of the impact of income taxes（Million yen）

1H of
FY2016
ActualForecast

Sales

5,730

8,389

Gross income

4,432

Operating income

1,879

2,499

2,536

Ordinary income

1,918

2,351

Net income

1,151

1,409

KPI

2Q of
FY2016

1H of FY2017
Actual

A/F%

9,992

Change%+19.1

Actual2Q of FY2017
ActualChange%

+74.4

2,997

5,645

＋88.3

+59.5

2,314

3,832

＋65.5

+1.5

+35.0

1,008

1,335

＋32.4

2,370

+0.8

+23.5

994

1,260

＋26.8

1,084

- 23.1

-5.9

554

487

-12.2

7,069

Number of operating stores(end of period)

Amount of processed payments(2Q estimate)

Number of processed payments(2Q estimate)

85,123

Approx. 620 Billion Yen

Approx. 621 Million■ Key points
1. Sale：+74.4％ (YoY),+19.1％ over forecast

・・・see 2.3

Payment processing business：

Proactive business expansion (increase in the number of processed payments and in the amount ofprocessed payments, cultivation of major merchants), and FG consolidation effect
MSB：
Acquisition of large merchants by GMO-PS
Payment enhancement business: Business expansion by MACROKIOSK

2. Net income：-5.9％ (YoY),-23.1％ over forecast

・・・see 2.4

Extraordinary income and loss affected by the information leak incident
Not to recognize deferred tax asset on these temporary differences resulted in higher tax burden ratio from income taxes (PS related)*FG: GMO Financial Gate/GCS
PS: GMO Payment Service

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

9

2.2

Summary

Sales up 74.4% , net income down 5.9% because of the impact ofincome taxes
10,000 Million yen+74.4％

・Payment processing business：Proactive business expansion (increase in thenumber of processed payments and in the amount of processed payments,
cultivation of major merchants), and FG consolidation effect
・MSB： Acquisition of large merchants by GMO-PS
・Payment enhancement business： Business expansion by MACROKIOSK

8,000

・Sales cost ratio rose due to strong performance in high sales cost
ratio products
・Increase in allowance for MSB-related credit risk

6,000・Investment loss from the equity method
・Extraordinary income and

4,000+35.0％+23.5％
2,000

-5.9％

loss affected by the
information leak incident
・Not to recognize deferred
tax asset on these
temporary differences
resulted in higher tax
burden ratio from income
taxes (PS related)

0
Sales
FY2016/1H

Operating income
Ordinary income
Net income
FY2017/1H Plan
FY2017/1H Actual*FG: GMO Financial Gate/GCS
PS: GMO Payment Service

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

10

2.3

Summary: Sales

Consolidated sales increased by 1,603 million yen against the initial budget
10,000(Million yen)

+74.4％Breakdown of sales
above forecast

8,000+46.4％
6,000

4,000

1,603 million yen
2,0000
FY2016/1H
Payment processing business

FY2017/1H Plan FY20171H Actual
MSB

Payment enhancement business

Payment processing business

MSB

Payment enhancement business

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

11

2.4

Summary: Net income

Higher tax burden ratio from income taxes
Million yen

1,500－325 million yen
1,000

We decided not to recognize deferred tax asseton these temporary differences, which resulted
in higher tax burden ratio from income taxes

500

0
Net income
FY2016/1H

FY2017/1H Plan

FY2017/1H Actual* With regards to deferred tax asset relating totemporary differences at GMO Payment
Service Inc., the earnings forecast has been
calculated based on an assumption that thesituation will allow for reasonable estimationof future taxable income by the end of thisconsolidated fiscal year, so that deferred tax
asset will be recognized then.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

12

2.5

Quarterly forecasts and actual results

Sales up over the forecast, OP as planned■ FY2017 Forecast（consolidated）
Sales+88.3％（million yen）(+64.7％)(+53.5％)

Operatingincome1,400（million yen）(+60.3％)

5,000

1,200

+59.1％（％）:percentage change comparedto the initial plan for H1 FY2017+35.0％(+30.3％)(+28.9％)+37.9％(+37.8％)(+28.5％)(+38.6％)
1,000

4,000

800
3,000

600
2,000
400

1,000
200

0

0

1Ｑ
FY20142Ｑ
FY20153Ｑ
FY20164Ｑ
FY20171Ｑ
FY20142Ｑ
FY20153Ｑ
FY20164Ｑ

FY2017

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

13

2.6

Sales/Operating Income by segment

Significant increase in sales in all segments; OP of payment*（%）：YoY
processing business up 34%■Sales by segment■ OP by segment（before consolidation adjustments ）（million yen）
10,000

1,590
9,000

289

（million yen）
3,400（+278.3％）（+167.7％）
2,900

76

8,000

2,515

7,000

（+165.5％）

6,000

2,400

3,337

594

5,000

96

（+34.1％）

1,900

948
5,887

4,000

1,400

2,488

（+40.5％）
3,000

2,000

900

4,189
400

-62

1,000

（-164.2％）(100)

0FY2016/1H
Payment processing business

FY2017/1H
MSB

Payment enhancement business

FY2016/1H

Payment processing service

FY2017/1H
MSB

Payment enhancement business

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

14

2.7

Payment processing business

Income growth accelerated by increasing the number/amount ofprocessed payments, and by acquiring large-scale merchants
3,000（million yen）

Sales

Operating income（ before consolidation adjustments ）
YoY

2,500

+41.8％■Business environment
Online： Expansion of e-commerce market
Card-present market： Acceleration of cashless payments■Measures to accelerate growth
2,000

1,500

1,000

OnlineStrengthen our “ecosystem model”
Expanding online payment areas other than e-commerce
Adding various payment solutions
Expanding businesses for financial institutions
Cultivating B2B sector
Card-present market
Growing sector（Smartphone/IoT/Inbound）

500

0

Our high profitable core business entereda sustainable growth trend

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

15

2.8

MSB

Acceleration toward positive turnaround despite the operating loss in 2Q
1,400（million yen）
1,200
1,000

800
600
400
200

Sales

Operating income（ before consolidation adjustments ）YoY+155.5％■Business environment
Expansion of FinTech services■Measures to accelerate growth
Expanding value-added services that contributeto the growth of our merchants
Early payment service
Transaction lending
GMO payment after delivery
Providing services to support the business model ofgrowing companies
GMO-PG Remittance Service
Reasonable risk-taking with consideration of thebalance

0
(200)
(400)

* Due to the reasonable accounting treatment of GMO payment
after delivery (positive turnaround is expected during FY2017)

We are brushing up the credit examination
model of our payment after delivery service
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

16

2.9

Payment enhancement business

Consolidation of MACROKIOSK started
Sales

Operating income（ before consolidation adjustments ）1,200（million yen）

■Business environment

YoY

1,000

+300.3％
MK

800

600

400

200

0

Global market：
Asian e-commerce market moves to the stage of
expansion
Online advertising service：
Expansion of online advertising market■Measures to accelerate growth
Global market
Consolidation of MACROKIOSK
Expanding online banking in Malaysia
Cultivating large-scale merchants in Asia
Online advertising service
Online advertising operations based on theanalysis of payments processing data
Our ecosystem model (increasing the payment
amount)Our payment-related services, including
global business, are proactively
contributing to expansion of e-commerceand payment market
MK：MACROKIOSK

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

17

2.10

Revenue breakdown by business model

Initial revenue +165.6％、Fee revenue +103.6％、Spread revenue +73％
（million yen）

Spread:10,000・MSB（GMO payment after delivery）has
expanded*・The amount of processed payments has
increased

9,000

YoY+73.0％

4,572

8,000

Fee:

7,000

YoY+103.6％

・Consolidation of MK

6,000

Stock:

5,000
2,642

4,000

2,834

・Expansion of business with large-scale
merchants (banks, etc.)
・Online Advertising Service has been ingood shape

1,779

Initial:

3,000

1,391

2,000
1,000

1,392

0

303
16/3 (1H)

Initial
•

805

Fee

YoY+165.6％

・Orders and sales of system development
・Cultivating major or high growthmerchants
・Sales of POS terminals (GMO-FG)

17/3 (1H)

Stock

YoY+27.8％

Spread“GMO payment after delivery” revenue, which had been recorded as a part of fee revenue, is divided into fee revenue and spread revenue since the 2Q of FY2017

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

18

2.11

Revenue breakdown（Quarterly）

Significant sales increase in all business model
2,500

2,471

（million yen）

Year-on-year
2,000

1,500

2,101

Initial+185.5％Stock＋ 24.2％

Fee＋149.8％Spread＋ 78.6%

1,808

1,527
1,441
1,383
1,259

1,227

1,000

724

804
680
584

500

468
464

127

496
483

733

713

501

501

512
499

612

601
532

516

565

528

1,026

959

931

630

594

749

874
748

667

794

904

786

728

663
460
345

182
108

147

105

142

127

150

142

161

151

15/2Q

15/3Q

15/4Q

16/1Q

16/2Q

16/3Q

185

0
14/1Q

14/2Q

14/3Q

14/4Q

15/1Q
Initial

•

Stock

Fee

Spread

16/4Q

17/1Q

17/2Q

“GMO payment after delivery” revenue, which had been recorded as a part of fee revenue, is divided into fee revenue and spread revenue since the 2Q of FY2017
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
19

2.12

Full year forecast

Revised the forecast based on 1H financial results■ FY2017（Million yen, ％ YoY）

OperatingincomeSales

Ordinary
incomeNet income

EBITDA

Full year

20,370(68.2％)

5,013 (31.2％) 4,673 (23.6％) 2,762 (-5.1％)

5,811 （38.7％）（beforerevision）

18,767(54.9％)

deferreddeferredDividends
forecast■ PointsSalesdeferreddeferred¥37.0 （+10.0）* EBITDA＝Operating income + Depreciation + Amortization of goodwill

・Only sales above 1H forecast affects the full year sales forecast (forecast for 3Q
and 2Q is deferred)・Consolidate the income statement of MACROKIOSK from the 2Q FY2017.
・The part of “GMO payment after delivery” launched on 11/1 last year
is not included in the forecast.

・Goodwill amortization due to the increase in group companies（total of ¥230 million）



SG&A



Non-operating ・Goodwill amortization from equity-method affiliate is expected (About ¥160 million)
expenses
Deferred tax assets of GMO-PS related to the temporary difference is assumed to berecorded at the end of FY2017



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

20

3. Business environment and segments progress

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

21

3.1

Industry topics

Our position regarding recent issues■Domestic B2C e-commerce market in 2016 is 15.1trillion yen（+9.9％ compared to 2015）
The EC ratio：5.43%（+0.68p compared to 2015）
・We are realizing the growth beyond the market by strengthening our ecosystem model.

■From the ownership to the real use: expansion of the “Subscription model”
and support of billing services
・We took the business opportunity as the first Japanese payment partner for Zuora’s subscription businessplatform.
・We have been supporting the growth of leading-edge companies related to new services.

■Impact on the e-commerce industry「Yamato Transport terminated delivery contracts with some mail order companies」「Sales inmajor e-commerce malls」「Unauthorized access」
・Our revenue has been growing steadily regardless fluctuations in the e-commerce market.
・We have been cultivating B2B market, services for financials institutions, recurring payments, service
commerce, and other new services and sectors.

■The spread of virtual currency
・We are the first in Japan who started bitcoin payment services.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

3.2

Mid-term goals

The goal for 2020 can be achieved by the growth of our existing
services and products
Operating income（100 million yen）

Now

100
GlobalSolutions2020

Scale of EC market（trillion yen）

2.4 → 4.0
※Total forecast by developing
countries

Online advertising market（ trillion yen ）Advertising50

1 → 1.5

Payment enhancement business
Related assets（100 million yen）

Finance
Service*Payment after delivery is
not included

OfflineCard-present market（trillion yen）

200 → 400

MSB

60 → 82*Credit cards, debit cards,
prepaid cards in total

The EC ratio（％）

Online5.4 → 8～10

Payment processing business
FY2017

FY2020※Expected numerical values are based on our internal research

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

23

3.3 Payment processing business：card-present payment
Challenge to cultivate new payment market in collaboration
with retails companies
Fresh brewed coffee
vending machines

Penetration of 100 yen coffee fromconvenience stores

Coffeehouse chains

Ultimate point ofcontact with customers

at OfficePayment × IoT（under development)
Image photo

Vending machineswith convenience
store products□ Employee IC card
□ POINT□ E-money□ Credit card
□ Prepaid card

Convenience store

Saturation status and location
requirements are under control

Image photo

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

24

3.4

MSB：MSB assets and performance by segments

Sales tripled as MSB-related assets had increased
MSB-related assets（BS)MSB-related sales・OP（PL)(million yen)

30,000

Sales related to
MSB assets
increasedby 3.0 times

25,000

3.1
times

20,000

2.7
times

15,00010,0005,000

02016/3(1H)
16/3(end)

2017/3(1H)

17/3(end)

Transaction lending

Early payment service

GMO payment after delivery

Finance lease

Transaction lending
Early payment service
GMO payment after delivery
Finance lease
Remittance service
Operating income
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

25

3.5.1Business in Asia
(Payment enhancement business：MK)
MK’s 1Q financial
results exceeding its
initial plans.

Joining GMOPG group accelerated MK’s growth
Annual growth rate rose from 10% to over 20%
3,500 (million yen)

Actual results and plan

+25%

3,000
+10%

2,500
+12%

+10%

2,000
1,500
1,000
500
0
Actual2013
2014
SMS mobility solution

2015
2016
Mobile payment service

Plan
2017
Other

MK：MACROKIOSK

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

26

3.5.2Business in Asia
(Payment enhancement business：MK)

Favorable factors for exceeding the budget after joining
GMOPG group■Market environment：Rapid growth has been
continuing“In 2016, the number of transactions carried out via
mobile devices grew by 72%, while transactions via
all online channels (including desktops and personal
computers) rose by 41%, demonstrating that users
are increasingly comfortable with digital platforms,”
he said in a statement on Monday.
http://www.thestar.com.my/business/businessnews/2017/04/03/maybank-expects-mobile-platform-transactions-torise-to-rm25bil/#Fe5Qavbx75Dy7mEi.99■Favorable orders from all over Asia;transactions are over the budget
Major insurance companies(Thailand)
Major banks(Philippines)
Major transportation companies (Indonesia)
Major cosmetics retailers(Indonesia)■By region

Acquiring orders from financial institutionsin Asia
Started partnership with transportationcompanies in Indonesia
Internet banking is
expandingMalesia

Indonesia
Favorable orders frommajor business operators
MK：MACROKIOSK

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

27

3.5.3Business in Asia (Payment processing business)

Introduction by major merchants in progress;
the amount of processed payments is positively increasing■Examples of local subsidiaries of Japanese
firms
Z.com Payment has been introduced bymajor merchants
Major cosmetics merchant：
Mediplus (Taiwan)■Deployment in Greater China / ASEAN
GMO-PG’s
Overseas basis

India

Hong Kong

TaiwanPhilippines
Thailand
Vietnam

Malaysia
Singapore

Capital：
3.9 billion yen

Major healthy food operators (Taiwan)

Indonesia

First in Japan Fintech fundinvesting in Asian ventures
which specialize in payments（2 billion yen in total）

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

28

4.

Financial highlights

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

29

4.1

Consolidated Balance Sheet

Increase in assets followed by MSB and companies acquisition(Million yen)

2Q of FY2016

Change(Million yen)

64,06743,78820,279Current liabilities

Cash and deposits

29,004

31,171△2,167

Lease receivable

7,311

4,713

2,598

Current assets

2Q of FY2017

Advance payments

9,240

3,191

6,049

Accounts receivable

12,494

1,354

11,139Allowance for
doubtful accounts△1,324△258△1,066

Other current assets

7,341

3,614

3,762

Noncurrent assets

10,222

5,414

4,807

Tangible assets

362

204

158

Intangible assets

3,968

1,153

2,814

Goodwill

2,286

26

2,260

Software

1,310

810

499

5,891

4,056

1,834

Investment securities

2,415

2,762

△347

Shares of subsidiaries
and affiliates

2,611

283

2,327

74,29049,20325,086

Investments andother assets

Total assets

2Q of FY2017 2Q of FY2016

Change54,28332,35521,928

Short-term debt

4,030

0

4,030

Deposits received

33,04826,923

6,125

Related to Finance Lease

Deposits by merchants through representative
merchant service*Discrepancy occurs with the pace of merchants’
Increase in Early Payment Service
sales growth due to change in merchants’ cutoff(BS balance after consolidation (offset))
date and payment cycle

Accounts payable

11,234

2,574

8,659

Other current
liabilities

5,970

2,857

3,112

Increase in payment after delivery

Short-term loan receivables (=TL-related assets) is included in “Other current assets”

Noncurrent liabilities

Shareholders’ equity

304

217

86

18,364

16,548

1,816

4,712

4,712

0

359

80

279

Increase in subsidiaries and affiliates

Capital stock
Total cumulative othercomprehensive income

Increase in investment securities of subsidiaries and affiliates

Total net assets

19,702

16,6303,071

Total liabilities andnet assets

74,29049,20325,086

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

30

4.2

Changes to major KPIs（Quarterly）

Annual amount of processed payments exceeded 2 trillion yen
Number of operating stores 85,123/Amount of processed payments ¥620 billion、Number of processed payments 261 million
Amount of（Reference） Amount of processed payments (12 months)
2.20 trillion yen
processed payments（100 million yen）
Number ofoperatingstores80,000Include GMO FG’s amount of processed payments

2.43 trillion yen

Number of processed
payments (10,000 trx)

6,000

25,000

5,000
4,000

70,0003,000
60,00020,0002,000

Share of themerchant acquiring
service revenue
in the settlement
amount: 45％

50,00040,00015,00010,00030,00020,0005,000
10,0000

0
11/6

11/9 11/12 12/3

Recurring payment

12/6

12/9 12/12 13/3

Online payment

13/6

13/9 13/12 14/3

14/6

Number of operating stores

14/9 14/12 15/3

15/6

15/9 15/12 16/3

16/6

16/9 16/12 17/3

Amount of processed payment s(The number of operating stores is calculated at the end of the quarter, the amount/number of processed payments are the results for each quarter)

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

31

5.

Reference materials

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

32

5.1

Summary of the consolidated results

OP up 35%, EBITDA up 41.7％
1H of FY2017（Million yen）

ActualSales
composition (%)

Sales

9,992

100.0%

Cost of sales

2,922

Gross income

YoY

1H of FY2016

Growth rate (%)

ActualSales
composition(%)

4,261+74.4%

5,730

100%

29.2%

1,624

+125.2%

1,297

22.6%

7,069

70.8%

2,636

+59.5%

4,432

77.4%

SG&A

4,532

45.4%

1,979

+77.5%

2,553

44.6%

Operating income

2,536

25.4%

657

+35.0%

1,879

32.8%

Ordinary income

2,370

23.7%

451

+23.5%

1,918

33.5%

Net income

1,084

10.9%

△67

－5.9%

1,151

20.1%

Net income pershare（Yen）

29.19

31.01

-

EBITDA

2,903

2,048

-

-

Growth855

41.7%* EBITDA＝Operating income + Depreciation + Amortization of goodwill
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

33

5.2

Cost of sales ratio/SG&A ratio（Quarterly change）

The sales of cost ratio has changed due to the sales composition(Million yen)

*Excluding MSB-related outsourcing expenses
6,000
52.7%
50.9%

5,000

*39.8％

45.6%
43.8%

42.9%

4,000

*37.4％*42.6％
43.5%

60.0%

5,645

*50.2％*44.5％
50.3%*41.7％

50.0%

46.8%

42.6%

43.6%

*40.3％

4,347*41.5％

44.2%

41.7%

40.0%
3,294
3,090

2,998
3,000

2,603
20.0%

2,000

1,826

19.5%
19.5% 2,204
21.5%
1,959
1,892

2,265
22.4%

21.3%

784
366

22.5%

25.5%
22.8%

22.6%

23.4%

1,655
1,372

1,000

32.1%

2,733

962
368

851
382

966

944

476

508

554

1,247

1,307

1,316

615

683

700

Excluding
30.0%
FG and MK: 24.2％

Excluding
FG:23.3％

2,497

2,036

1,813

20.0%

1,109
772

10.0%

0

0.0%
14/6 (3Q) 14/9 (4Q) 14/12 (1Q) 15/3(2Q)
Sales

15/6(3Q)

Sales-cost

15/9(4Q) 15/12(1Q) 16/3(2Q)
SG&A

Sales-cost ratio

16/6(3Q)

16/9(4Q) 16/12(1Q) 17/3(2Q)

Sales-SG&A ratio

FG：GMO Financial Gate/GCS
MK：MACROKIOSK

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

34

5.3

Changes in Segments and Revenue models

GMO payment after delivery is divided into fee and spread,
Red：Changes from 2Q
consolidation of MK
３ Segments

Payment processing
business

4 Revenue models

Payment processing

InitialSystem development
GMO Financial Gate etc

System development
etc

Stock
(Monthly revenue)

Online Ad Service

etc

Payment processing（MK）

Transaction lending

GMO payment after
delivery（Fee）

MSB

Fee
(Transaction
processing revenue)etc

SpreadSSL(Merchant acquiring
service revenue )Delivery service
MK
etc

etc

Payment processing（MK）

Online Ad Service

FG：GMO Financial Gate/GCS, MK：MACROKIOSKRemittance service
Delivery service

Finance lease

etc

Payment processing（MK）

Remittance service

Early payment service

Payment
enhancement business

SSL（Initial revenue）

GMO payment after
deliveryMoney service
business

Payment processing（MK）

GMO payment after
delivery（Spread）
Transaction lending
Early payment
Finance lease

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

etc

35

Thank you very much!

GMO Payment Gateway Inc.
(TSE:3769)
URL https://corp.gmo-pg.com/en

For more information, please contact the Corporate Value Creation Strategy Division
Investor relations office

TEL:+81-3-3464-0182