Financial results briefing for the Q4 of FY2018(October

1,

2017

-

September

30,

2018)

Execution of growth strategy for continuous 25%+ OP growth

November 13, 2018
GMO Payment Gateway, Inc.
(3769: Tokyo Stock Exchange Section-1)

The 55 th IR Meetinghttps://corp.gmo-pg.com/en/

A cautionary note about
the contents of the document

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 13, 2018.
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. Summary of financial results for FY2018

2. Earnings forecast for FY2019 and management
systems
3. Future actions to implement growth strategies
4.

Financial highlights

5. Reference materials

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

3

1. Summary of financial results for FY2018

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

4

1.1

Overview of FY2018

Executing growth strategy and capital raise, remaining open
issues in terms of human resources
Highlights

Challenges

・Accelerated expansion of online payment

・Intensifying competition in an environment
for recruitment

Acquiring of big operators and big projects due torevisions of the Installment Sales Act

Measures: Establishment of domestic bases for
system development、M&A

100 thousand merchants and payment processing
value of ￥3T・ Revenue declined in online advertising service

・Promotion of cashless payment

Reviewed portfolio of online ad service

Ginko Pay implementation
Expansion of processing business for financial
institutions

Businessresults

・Expanding Money Service Business

Intensifying competition in online advertisingindustry
Measures: Already started a review of systemand services

・System renewal delay

Margin improved in GMO Payment After Delivery
and Remittance
Global lending business started

Caused by prioritizing development
projects of clients・GMO Medical Reservation Technology
into the GMO-PG GroupFor operational efficiency and enhanced convenienceof on-site medical care・Increase in revenue and profit for 16 straightfiscal terms (13 terms since listing)・Capital raise of Euro/Yen CB of ¥17.5B
・Dividend increase of 9 yen vs. original plan

Earnings
results

・Impairment loss of goodwill of
MARCOKIOSK
Strong growth of SMS service a coreservice, aiming for continuous growth rateof 25% or more in the future

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

5

1.2

Summary

OP up 65.9％（33.8％ under J-GAAP）、101.2％ vs. full-year plan
■Earning results（Million yen）

FY2017
Actual

FY2018ActualRevenue

21,054

Operatingprofit3,948

YoY change

FY18 full-year
plan

FY18 Actual vs.
Full year plan

101.2%

26,417＋25.5％

26,107（5,015）（6,708)6,550＋65.9％

6,475（6,269）（＋107.0％）

2,420

4,255

＋75.8％

3,933

108.2%EBITDA *1

4,730

7,516

＋58.9％--DPS（yen）

40円

58円＋45.0％

49円

118.4％(J-GAAP)

Profit attributable toowners of parent

KPI*2（＋33.8％）101.2%

Operating stores(End of Q4)

Transaction value(Q4)

Transaction volume(Q4)

102,484 stores

870 billion yen

369 mllion（＋24.5％）（＋29.7％）（＋28.0％）*1 EBITDA＝OP＋depreciation*2 Physical payments excluded. () shows year-on-year changes

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

6

1.3

Factors that affected the cumulative results

Financial statements disclosed under IFRS from Q1 FY2018+25.5％
26,000 （Million yen）
24,00022,00020,000

Revenue（＋）Online payments grew steadily（＋）Business with banks expanded (ex. ”Ginko Pay”)（＋）GMO Payment After Delivery and Remittance value grew（＋）MACRO KIOSK’s SMS service was solid（－）Revenue declined in online advertising service
Operating profit
Absorbing strategic investments for the following fiscal terms andimpairment loss of MARCO KIOSK+65.9％（IFRS） ※+33.8％（J-GAAP)（+）Expanded the high-margin online payment fields（+）Margin improved for GMO Payment After Delivery and Remittance*(FY17 Q1-3) Expensed the fair value changes in BIP trust provision

18,00016,00014,00012,00010,000+65.9％

8,000
6,000
4,000
2,000
0

Revenue

Operating Profit
FY2017FY2018

Profit attributable to owners of+75.8％ parent (net profit)（+） Decline in equity method
investment loss（＋）Increase of financial revenue
Profit attributable toowners of parent(full year)
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

7

1.4

Revenue/OP by segment

Payment processing profit up 26.7%, MSB turned black■ OP by segment (before
consolidation adjustment)■Revenue by segment（Million yen）

Total: Post-adjustment+25.5％

25,0005,361 （+28.0％）
・MACRO KIOSK’s SMS service
was solid* (): year-on-year changes

Total: Pre-adjustment+38.0％（Million yen）*Post-adjustment
8,800＋65.9％

・Margin improved in GMO
Payment After Delivery andRemittance・Affected by a change in bad
debt provision rate for particulartransactions

7,800

20,000

4,187

6,800

6,254（+25.9％）

15,000204

8,064 （+26.7％）

5,800

・GMO Payment After Delivery
was solid・Remittance service grew steadily4,800
・Early payment service grew

4,967

145

14,801 （+24.4％）
11,8995,000

・Online payments grew steadily
・Increase of business forfinancial institutions
・Large sales of offline payment
terminals

6,364

3,800

10,000-177（－186.9％）

2,800

・Online payments grew steadily
・Business with banks expanded 1,800
・Large sales of offline payment
terminals
8000FY2017(full year)

Payment processing(200)

FY2018MSB

Payment enhancement

1,377（＋847.4％）

FY2017(full year)

Payment processing

FY2018MSB・Impairment loss of goodwill of
MARCO KIOSK-Due to variation from original midterm plan of M&A-Steady expansion of the businessitself Segment profit with anincrease of ¥181M without
impairment loss
・Reviewed portfolio of online adservice

Payment enhancement

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

8

1.5.1

Revenue breakdown by business model

Fee steadily while stock increased as the business withbank expanded（Millionyen）

25,000

11,10520,0009,272
15,00010,364
7,527

10,000

3,445

2,885
5,000

SpreadYoy ＋19.8％

Fee

Yoy ＋37.7％

Stock

Yoy ＋19.4％

・Online payments grew steadily
・Revenue from a particular merchant dropped (aspecial and one-off factor)(Yoy ＋15.4％ in Q3 alone)・Payment processing and
MACROKIOSK business grew・Growth of remittance service and improvement of
profitability(Yoy ＋39.1％ in Q4 alone)・Payment processing business grew steadily
・Business with banks expanded(Yoy ＋22.7％ in Q4 alone)

Initial
1,368

1,501

0
FY2017FY2018(full year)

Initial

Stock

Fee

SpreadYoy ＋9.7％

・Large sales of offline payment terminals
・Contribution of system development
projects to revenue increase(Yoy ＋72.2％ in Q4 alone)※Yoy values for Q4 alone are net values on an IFRS basis.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

91.5.2

Revenue breakdown (Quarterly)

Quarterly trends of revenue items(Million yen)

※

IFRS

J-GAAP

3,000

2,861

2,801

2,773
2,691

2,653
2,471

2,500

2,946

2,360

2,436

2,666
2,705

2,101
2,004

2,000

1,895
1,809

1,527

1,500

1,383
1,259

1,227

1,000

584
501
496
468
501
483
464

127

0

182

14/1Q

14/2Q

108

14/3Q

601
532
528
516

512
499

749

724

804

733

713

1,026

959

931
680

500

1,441

667

630

612

906

875

929

795

786

105

14/4Q

142

457

15/1Q

15/2Q

127

150

15/3Q

832

142

15/4Q

923

893

563
343

147

980

663

594

565

748

728

794

161

16/1Q

151

16/2Q

16/3Q

327
237

185

16/4Q

17/1Q

17/2Q

17/3Q

17/4Q

388
298

251

18/1Q

18/2Q

18/3Q

18/4Q

InitialStock
Fee
Spread*Online Ad Service (stock) and Finance Lease (spread) recorded in net under IFRS while gross under J-GAAP
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

10

2.

Earnings forecast for FY2019 andmanagement systems

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

11

2.1

Earnings forecast for FY2019 andmanagement systems

Our target is to achieve 25% profit growth■ FY2019（Unit: Million yen, ％：Yoy change）（Million yen）

FY2018Actual

FY2019plan

Yoy change

Revenue

26,41731,850+20.6％

Operating Profit

6,550

8,300

+26.7％

Profit attributableto owners of parent

4,255

5,106

+20.0％DPS（yen）

58.0

35.0

*

＋12.0
(in real term)*The Group executed a 2-for-1 stock split of common stock as of October 1, 2018.

■ Management systems

New establishment of a “management meeting” as a decision-making body for execution ofimportant operations (planned)
Purposes:
Enhancement of management supervision function by separation of supervision and execution
Strengthening of corporate governance by clarifying official responsibilities and enhancing functions
for execution of operations
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

12

2.2

Revenue plan

20.6%-increase due to accounting factors, etc.
Continuously aiming for the growth rate of 25%+
(Million yen）

IFRS

J-GAAP
40,000Aiming for
25% growth

35,000Strategy for revenue growth rate of 25%

30,000+20.6％

25,00020,00015,00010,0005,000
0・Affected by accounting change to cause part of service revenue
・Planned 20.6%-increase by reflecting conservative aggregation of thefactors with a high degree of certainty to generate revenues
・Continuously aiming for the growth rate of 25%+EC：

FinTech：+25.5％
Consolidationof GMO-FG
and MK

Cashless：
IoT：

Global：*Financial statements disclosed under IFRS from Q1 FY2018
The revenue for 2017/9 is a value retroactively calculated.

Acquisition of new merchants
Increase of ARPU by cross-selling
Focused on BtoB fields, subscription
Seeking for comprehensive collaboration
framework with SMFG (Cashless payment and IoT)
BtoB factoring
Expansion of deferred payment andpayment after delivery
Reduction of delinquency rate by leveraging AI
Increase of number of banks accepting “Ginko Pay”
Expansion of fee business in collaboration
with existing clients
Offline payment terminals and automatic
settlement machines, etc. compatible with EMV
Expansion of lending services
Expansion of service coverage areas of MK*SMFG：Sumitomo Mitsui Financial GroupGMO-FG：GMO Financial Gate MK：MACROKIOSK

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

13

3. Future actions
to implement growth strategies

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

14

3.1.1

Payment market forecast

We aim for Growth continuation outperforming markets
2005
（IPO）

2018
（Present）

2019（Outlook）

2020（Outlook）

5.8％

6-7％

7-8％

EC rate1％

BtoC EC market¥3.5T¥16.5T¥20.0T¥22-24T

Payment after
delivery market

-

¥420B

¥580B

¥820B

¥0.1T

¥3.3T

¥4.5T

¥6-7T

GMO-PG Gr.
TRX value≒ x6（FY2004 Actual)

GMO-FG Gr.
TRX value

-

¥0.3T

¥1.0T

¥2.0T

Cashlesspayment ratio

-

20％

22%

25%

GMO-PG Gr.
OP

¥190M

≒ x34

¥6.5B

≒ x1.26（FY2004 Actual）

References：METI. “FY2007 & FY2017 Building infrastructure for information- and serviceoriented Japanese economy and society (Ecommerce market survey)”
Estimates by GMO-PG¥8.3B≒ x1.25¥10B（FY2019 outlook）*OP：Above figures are management targets
GMO-FG：GMO Financial Gate

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

15

3.1.2

Operating profit target for 2025

Operating profit of 25 billion yen, enhance capital efficiency■Operating profit target

Target¥25B~

IoT
Global
ROA： 6.7％
ROE：19.1％
ROA： 5.1％
ROE：12.9％
TargetGrowth of GMO-FG
Comprehensive collaboration
framework with SMFG
Growth of investments
Global lending

Fintech¥10B

Cashless

Plan
¥8.3B

Growth of
GMO Payment after delivery

Expansion of Ginko Pay

¥6.5B

EC

2017

2018

2019E 2020E*ROA: Return on assets, ROE: Return on equity

2025E

Expansion of market size
Comprehensively Schemewith SMFG※ 2020/2025 figures are our targets
SMFG：Sumitomo Mitsui Financial GroupGMO-FG：GMO Financial Gate

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

16

3.2

EC：Growth strategy for the future

Aiming for further high growth by taking opportunities
in growing market and focusing on growing business fields■Online payment■TRX value(excl. system development,
Bank Business and offline payment)

880,000 （million）＋26.8％

830,000
780,000

TRX value

Payment processing value except new big operators

730,000
680,000

630,000

Payment processing value
down for Q4 due toseasonal factors

Increase of payment
processing value by
acquiring of big operators
due to the revisions of
the Installment Sales Act＋¥36.8B（only Q4）

580,000
530,000
480,000
430,000

17/9月

18/9月

15/12 16/3

16/6

16/9 16/12 17/3

17/6

17/9 17/12 18/3

18/6

18/9

※Yoy comparison in September based on monthly revenue of 500 thousand yen for merchants■Growth Strategy

Increase of number of acquisition of new merchants
Increase of ARPU (Average Revenue Per User) by cross-selling
Focused on business fields with growth potential（BtoB、Subscription)
Seeking for comprehensive collaboration framework with SMFG
*SMFG：Sumitomo Mitsui Financial Group

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

17

3.3.1

FinTech：Assets & revenues related to MSB

Changing portfolio with achievements of 25.3%-increase ofrevenue vs. 847.4%-increase of profit％：vs. Q1-4 FY17
■MSB-related assets■Segment revenue (J-GAAP)+18.4％+25.9％－30.3％■Segment profit

1,377（Million yen）

－31.8％+51.6％

Affected bya change inbad debt
provision
rate forparticulartransactions＋847.4％+20.8％+24.7％+32.5％＋42.3％+101.5％+53.6％End of FY17

End of FY18

FY2017145

FY2017FY2018FY2018Services under Money Service BusinessTransaction Lending

Early Payment

GMO Payment After Delivery

Finance Lease

Remittance

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

18

3.3.2

FinTech：Enhancement of profitability

Aiming for further enhancement of profitability by executing
growth strategy■MSB-related assets and profits
MSB-related assets
MSB-related assets/Segment profits

2016/12■ Growth Strategy

2017/32017/62017/92017/122018/3

2018/62018/9

BtoB factoring
Expansion of deferred payment and payment after delivery
Further reduction of delinquency rate by leveraging AI
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

19

3.3.3

FinTech：GMO payment service

Expansion of market share in deferred payment service market■Market size of deferred payment■Growth rates of deferred payment market
and GMO-PS (indices)

Annual growth rate of 40% or more
Market size for 2017: ¥420 billion (expected)
4,200億円（expected）

11

≒ x10

10

9

＋44.8％

8

7

6＋45.0％

5＋42.9％

4＋42.9％

3

≒ x3

2

1
FY2015
2013

2014

2015

2016

FY2016FY2017FY20182017※ (source) “Current situation and future forecast of online
payment service providers 2018” issued by Yano ResearchInstitute Ltd.

market size of deferred payment

GMO-PS TRX Value※GMO-PS：GMO Payment Service
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

3.4.1

Cashless：International comparison

UK-type cashless payment expected to increase on a full scaleeven in Japan with “preference for cash”■Global cashless rate

Types of cashless payment
China type100.0%

UK type

89.1%
90.0%
80.0%
70.0%

60.0%
55.4%

60.0%

54.9%

51.0%

50.0%

48.6%

45.0%
39.1%

40.0%

38.4%

30.0%

18.4％
18.4%

20.0%

14.9%

10.0%
0.0%
Korea

China

CanadaUK

Australia

SwedenUS

France

India

Japan
Japan

Germany（as of 2015)(source) “Cashless Vision” by METI released in April, 2018
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

21

3.4.2

Cashless：Positioning and growth strategy

Generation of revenues by both payment methods to directly or
indirectly support cashless payment■Positioning of Ginko Pay＜Sales territory＞

XYZ

Pay

“Ginko Pay”

■Growth Strategy

Macro:

Protect online economy＜Payment methods＞＜Involvement with GMO-PG＞

Credit Card

Generation of revenue
as a partner

Account Transfer

Region:Protect community-based Account Transfer
economyDirect promotion

Increase of number of banks accepting “Ginko Pay”
Expansion of fee business in collaboration with existing clients
Comprehensive collaboration framework with SMFG

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

22

3.5.1

IoT：Growth strategy

Accelerated growth by incorporating demand for payment
terminals created by the revisions of the Installment Sales Act■Initial revenue of GMO Financial Gate
YoY +419%＜Current efforts＞
Generation of revenue by incorporating demand for
replacement of terminals compatible with EMV credit
cards created by the revisions of the Installment Sales
Act＜Topic＞

2017/92017/122018/3

2018/62018/9July 2018～
Start of use of beverage vending machines compatible withmulti-functional cards (student/employee ID card) at 4
bases (tentative head office, etc.) of The Hiroshima Bank,Ltd.

■Growth Strategy Credit card terminals and automatic settlement machines, etc. compatible with EMV
Comprehensive collaboration framework with SMFG
※SMFG：Sumitomo Mitsui Financial Group
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

3.5.2

Our view on reduction in the rates ofcredit cards

Business fields of offline/high rates are under discussion.
Credit card rates(％)

2%

3%

Card present payment

Online Payment

Business fields under discussion on reduction ofservice fees(e.g. restaurants, etc.)
5%
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

24

3.6.1

Global：Mid-term Strategy

Expansion of client base, growth of revenue and profit throughsynergistic effects among 3 business segments
Financial businessBusiness to banks
Business to merchants

Minority Investment
MACROKIOSK
becamesubsidiaries■Revenue image
Revenue of MACROKIOSK＜Segments＞＜Strategic targets＞

Money Service
Business(Lending)

Addition ofrevenue base

Payment
enhancementbusiness(MACROKIOSK)

Great
expansion ofclient base＋28.0％
SMS mobile solution
4,563
3,565

（Million yen）

SMS mobile
solutionYoy＋37.1%

Acquisition 48 banks
to double banks two years
Growing number of mobile
authentication transactionsat an annual rate of 30%

Q4/FY2017 Q4/FY2018* in japanese yen※Impairment loss of goodwill（¥359M）
due to variation from original mid-termplan of M&A

Carriar billing Carriar billing gateway
gateway
Intensifying competitive environment
Establishment
Yoy－14.1％
Payment processing

business(Z.com Payment)
2014

2015

2016

2017

of payment
base

2018
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

25

3.6.2Global：Segments

Expansion of 3 business segments

United States

China

Hong Kong

TaiwanPhilippines

Thailand
Vietnam
Malaysia

Segments
Singapore

Payment processing business
Payment enhancement businessIndonesia

Money Service Business (MSB)（as of end of FY2018）
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

26

4.

Financial highlights

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

27

4.1

Changes in our balance sheet

Increase in deposits and MSB-related assets andconvertible bonds（Unit：Million yen）

Current assets
Other

Noncurrent assets*2 Investment
MSB-related
Other
15,46145,5499,222

Net assets

Liabilities

Deposits（under representative merchant service）*3 Net assets
Others MSB-related*1

End of
Q4/16

35,663Bat debt provision-327

27,634

19,1082,784Interest-bearing debts（short+long）

71,07939,13013,259End of
Q4/17

63,56914,626End of
90,838
Q4/18

Convertible
bonds

37,406

20,76912,558Bad debt provision-2,393102,232

46,34841,22826,02015,625

2018/6/19
Raised 17.5 billion yen through the issuance ofJPY-denominated convertible bonds (issue of bonds 17.0 billion yen)
*1 J-GAAP was applied for FY2016*2 MSB-related assets: lease receivable, short-term loans receivable, advance paymtents-trade and accounts payable-other*3 MSB-related liabilities: accounts payable-otherBat debt provision-2,113Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

28

4.2

Major KPIs (Quarterly)

Annual transaction value reaches ¥3.6 trillion
Operating stores: 102,484; Transaction: ¥870 billion (value), 369 million (volume)（Reference）Transaction value（past 12 months ）¥3.33 trillion

8,500（billion yen）

（million
TRX）

Including GMO Financial Gate ¥3.59 trillion（stores）
7,500
100,000

35,0006,500
5,500
80,0004,500

30,000

Payment processing
value down for Q4 dueto seasonal factors

25,0003,500≒50％ of trx value is subject
to spread charge*This figure is an annual
average(Updated every 5%）

60,00020,00015,00040,00010,00020,0005,000

0012/12 13/3

13/6

13/9 13/12 14/3

Recurring billing

14/6

14/9 14/12 15/3

Online Payment volume

15/6

15/9 15/12 16/3

16/6

Operating stores

16/9 16/12 17/3

17/6

17/9 17/12 18/3

18/6

18/9

Transaction value*Number of operating stores represents end-of-quarter figure, transaction value/volume represents figure during quarter*17/9 operating store number dropped QoQ due to a batch of merchants that went idle after a partner’s service termination

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

29

5.

Reference materials

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

30

5.1

Cost of revenue ratio/SG&A ratio (Quarterly)

Cost of revenue ratio changed due to sales mix change*Figures with asterisk do not take into account outsourcing expense
Not included in SG&A under IFRS from Q1/18（Million yen）

J-GAAP*50.2％
52.7%

7,000

IFRS
*47.2％
50.4%*44.5％
50.3%*42.6％
45.6%*41.7％
46.8%*39.8％
43.6%

6,000

*40.3％
44.2%

6,086

4,347

50.0%

6,098
40.9%

43.6%
*39.9％

42.6%*37.4％

5,000

6,563

6,459

5,716

5,645

41.7%
*41.5％

7,295

32.1%

31.9%

41.1%

40.2%

40.0%

36.3%
33.4%

31.9%

33.2%

35.4%
35.3%

4,000

30.0%

22.4%

3,000

21.3%

3,294

3,090

2,998

2,733

2,603

2,265

22.5%

22.8%

3,067

25.5%

22.6%

23.4%

2,497

1,372
1,000

1,813

1,655
1,307

1,247

1,823

2,035

1,940

2,595

2,382

2,581

2,320

2,143

20.0%

1,316
10.0%

1,109

944
508

2,494

2,491

2,036
2,000

2,997

554

615

683

700

772

15/9(4Q)

15/12(1Q)

16/3(2Q)

16/6(3Q)

16/9(4Q)0

0.0%
15/6(3Q)

Revenue

Cost of revenue

16/12(1Q)

17/3(2Q)

SG&A

17/6(3Q)

17/9(4Q)

17/12(1Q)

Vost of revenue rate

18/3(2Q)

18/6(3Q)

18/9(4Q)

COGS rate

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

31

5.2.1

Consolidated cash flows

Positive cash flow due to profit growth and increase of deposits
received, procuring resources for future growth(million yen)
20,000J-GAAP

IFRS

18,000■Cash flow changes in FY2018
OCF：＋4,701 million
Pre-tax profit+6,700 million
Changes in operating
and other receivables＋572 million
Changes in advance payments－5,461 million
Changes in accounts receivable －3,317 million
Changes in accounts payable–trade ＋1,139 million
Changes in accounts payable–other ＋2,995 million
Changes in deposits received＋3,821 million

16,00014,00012,00010,000
8,000

ICF：

6,000

－8,296 million

Purchase of intangible assets －1,076 million
Payment for deposit of deposit
to subsidiaries and affiliates －7,000 million

4,000
2,000

FCF：

0

＋18,067 million

Net changes
in short-term borrowings+3,300 million
Proceeds
from issuance of corporate bonds +17,437 million
Repayment of long-term borrowings －821million
Dividends paid
－1,483million-2,000-4,000-6,000-8,000-10,000

FY2013

FY2014OCF

FY2015ICF

FY2016FCF

FY2017

Free CFFY2018

Free cash flow：－3,595 million

Cash and cash equivalents：+42,033 million

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

32

5.2.2*

Consolidated cash flows（in real term）

Substantial free cash flow has turned positive, procuring resources
for future growth■Cash flow changes in FY2018(million yen)
20,000IFRS

J-GAAP

18,00016,00014,00012,00010,0008,000

OCF：＋4,701 million

Pre-tax profit+6,700 million
Changes in operating
and other receivables＋572 million
Changes in advance payments－5,461 million
Changes in accounts receivable －3,317 million
Changes in accounts payable–trade ＋1,139 million
Changes in accounts payable–other ＋2,995 million
Changes in deposits received＋3,821 million

ICF：－1,296 million（in the disclosure －8,296 million）

6,000

Purchase of intangible assets －1,076 million

4,000

FCF：

2,000

＋18,067 million

Net changes
in short-term borrowings+3,300 million
Proceeds
from issuance of corporate bonds +17,437 million
Repayment of long-term borrowings －821million
Dividends paid
－1,483million

0-2,000-4,000-6,000Free cash flow：-8,000+3,405 million（ in the disclosure －3,595 million）-10,000
FY2013OCF

FY2014FY2015ICF

FY2016FCF

FY2017FY2018
Free CFCash and cash equivalents：+42,033 million※Substantial cash flow statement after adjustment, since “deposit of deposits received of affiliated companies (-7 billion yen)”in the investment cash flow substantially means cash and cash equivalents.
The cash and cash equivalents as of the end of the current consolidated fiscal term include the deposits of affiliated companies of 5 billion yen.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

33

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