Financial results briefing for Q2 of FY2019
Initiatives to Secure Post-2020 Growth and Tackling Near Term Challenges

May 10, 2019
GMO Payment Gateway, Inc.
(Code: 3769; TSE-1st section)

The 57 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 May 10, 2019.
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 Q2 FY2019
2. Future initiatives and growth strategy
3. Financial highlights
4. Reference materials

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

3

1. Summary of financial results for Q2 of FY2019

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

4

1.0

Industry Topics

Our position/stance on recent issues and topics
 METI “Point Reward Project for Consumers using Cashless Payment” (METI, March 12 th 2019)
・3 Group companies (i.e. GMO-PG, GMO-EP, SGP) have provisionally registered as cashless supporter (Type B)
・Measures taken to counter adverse impact to merchants with an >3.25% MDS primarily in the card present market

 M&A activity among global major payment gateways(Nikkei, March 19 th, 2019）
FIS (Fidelity National Information Services) acquires UK’s Worldpay(Bloomberg, April 24 th, 2019）
SoftBank Group invests in Germany’s Wirecard via CBs
・We remain focused on executing timely investments for the imminent global competition Japan Post Bank Inc. launches “Yucho Pay,” a QR-code payment service(Nikkei, May 5 th, 2019)・We are positioned to drive cashless-ness as partners to both financial and internet companies(ZDNet, April 23 rd, 2019）

 US FinTech Affirm raises funds from major institutional investors, enters BtoB market
 JPMorgan enters into POS financing space (deferred payment)(Forbes, March 4 th, 2019）
・The financial leading company hones in on BtoB and deferred payment business※GMO-PG: GMO Payment Gateway, EP: GMO Epsilon, SGP: SMBC GMO Payment

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

5

1.1

Financial Results Summary

Revenues up 27.5% YoY, OP up 30.2% YoY, beating guidance（mil. JPY）

H1 FY2018
ActualH1 FY2019
Actual% YoY

Revenue

12,55816,015＋27.5％

Operating
Profit

3,269

4,258

＋30.2％

Profit attributableto owners of Parent

1,962

2,578

＋31.4％

3,702

4,753

＋28.4％*1

EBITDA*2

KPI

FY2019 Full
Yr. guidance% Progress
vs. guidance（H1 Guidance）（vs H1 Guidance）

31,850（15,202）

8,300（4,150）

5,106

50.3%

（105.3％）51.3%（102.6％）50.5%（2,424）（106.3％）--Operating Merchants(end-Q2）

TRX Volume（Q2）

TRX Value（Q2）133,199 stores≒ 420 mil.

≒ ¥1.0 trillion（＋50.2％）（＋29.6％）（＋24.9％）*1 EBITDA＝OP＋ Depreciation*2 Excludes card present figures, () indicates YoY changes.

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

6

1.2

Regarding Full year guidance and trend of
micropayments

On track to achieve Full Year guidance despite various issues
1. On track to achieve full year guidance
Even after increasing provisions for bad loans andmainframe upgrade expenses

2. TRX Volume (Q2)
TRX Value (Q2)≒ 420 million, up by 29.6％ YoY≒ ¥1.0 trillion, up by 24.9% YoY

Factor 1:

Increase in micropayments
Smartphone payments and payment for digital contents etc.

Factor 2:

Unfavorable comps given last term’s surge in payment related
to cryptocurrency trading

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

7

1.3

Q2-only earnings

Q2 standalone OP was up 30.2% YoY, while revenue growth was up by
20.3% YoY
Mil. JPY

16,000+20.3%

Revenue by business model
SpreadUp by 16.0% YoY
Fee
Stock
Initial14,00012,00010,000Under 25％
Up by 22.0% YoY
Up by 47.4% YoY（Adj. 26.5% YoY)*
Down by 17.8% YoY （Adj. 27.0% YoY)**Adjusted figures show the impact from the change in revenue recognition
from lump sum (in Initial) to prorated over service period (Stock)

8,000
6,000

+28.4％+30.2％

4,000+36.1％

2,000
0
Revenue

Operating Profit

Profit Attributable to

2Q FY2018

Owners of Parent
2Q FY2019

EBITDA

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

8

1.4

Reasons for Q2-only revenue increase of
20.3％ YoY

Revenue affected by one-offs and special factors, but topline
growth to accelerate from Q3 onwards（Mil. JPY）

【Factors】

Revenue

・Change in revenues from some merchantsin the previous term
・Planned service termination at a merchant・Revenue decline from a merchant(special factor)

9,000

8,000

・Software development revenue bookedin previous 2Q

Excluding above factors, revenue growthwould be ≒24% YoY
7,000【Counter measures】

1. Adherence to schedule foronboarding of new customers
2. Increasing merchants with
defensive businesses

6,000

3. Create industry specific platforms

Revenue growth to re-accelerate

5,000
2018/1Q 2018/2Q 2018/3Q 2018/4Q 2019/1Q 2019/2Q 2019/3Q 2019/4Q

from Q3 onwards※ Forecast for 2019/3Q・4Q is based on estimates as of May 7th 2019.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

9

2.

Future Initiatives and Growth Strategy

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

10

2.1

Product portfolio of focus areas andgrowth strategy

Concrete measures for the 5 focus areas
Broader EC

FinTech・New customer wins (Large-scale, growth oriented)
・ARPU growth from cross-selling
・SMCC ＆ VISA
・Build large scale non-merchandise business

Secularabove-25％
OP growth

Cashless
IoT

・ Ginko Pay & processing
・ Establish feedback loop to payment processing
・ Make inroads into the unmanned payment market

5％

Areas contributing to
profit in the current
fiscal year

・Expansion and margin increase of GMO PaD*
・B2B Factoring (partnership with Informart Corporation)

・Capture the opportune timing into growth areas
・Diversified portfolio strategy

Other Areas:¥25 billion

・Expansion of global lending service

GlobalBroader-EC market: 20％

FinTech（¥3～¥4bn）

Global（¥5bn）

Cashless（¥1 bn）

・ SMCC & VISA

IoT（¥2 bn）

Broader-EC
EC bn）（¥18（180）¥8.3bnFY2019FY2025* PaD stands for Payment after Delivery※ Figures in parentheses represent the targeted OP
image in each of the areas (unit: billion JPY）
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
112.2.1

Broader EC Market

Executing the 25% growth plan aimed at realizing a 20% CAGR
medium/long term growth
25％ Growth Plan

Reinforcing sales to acquire large-scale & high-growth merchants
ARPU uplift from cross-selling
Making inroads into the B2B market
Focus on growth areas (Shared economy, subscription services, etc.)
Acquire large-scale & non-merchandise businesses (e.g. infrastructure, utility)（10）

Sustained above-20％ CAGR growth

FY2019Broader EC
ECbn）
（¥18

FY2025※ Figures in parenthes show the OP target of each areas.
Unit: billion JPY
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

122.2.2

Broader EC: Strengthening IT systemfor enable further business growth

Preparing for a 30% transaction growth in the next 5 years while
maintaining OP over-25％ CAGR growthUpgrade of mainframe system
Purpose 1

Improving processing capacity (4.3x)
Expanding resource/capacity
・Upgrade/Expansion of database (capacity increase)・Server capacity increase & improved performance
Expand authorization processing capacity to withstand a 30%
increase in TRX volume versus current levels in 5 years

Purpose２

Improve operability and performance
Revise system architecture・Application refactoring of major apps, microservices architecture
・Traffic flow control, transaction spike readiness・Simplification of OEM, etc.

Purpose 3

Improvement of merchant service
UI/UX renewal

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

13

2.3.1

FinTech: Assets and profit growth*
Margin improvement of GMO PaD;
rapid growth of global lending

Growthstrategy① Expansion of GMO PaD ② Margin Improvement- Accumulate and analyze payment data
- Deploy AI- Expand merchantfootprint and TRX value③ Expand service line-up- B2B-type MSB services, etc％ indicates YoY change■ Segment Revenue■MSB-related assets■Segment OP
987+22.1％ YoY－40.4％+23.4％ YoY（mil. JPY)

－23.4％+50.5％+33.6％＋69.3％ YoY

Impact fromchange inProvisions for
doubtfulaccounts

583+11.8％＋142.8％ YoY+32.7％＋33.3％+869.4％+127.5％End-2Q FY2018

End-2Q FY2019

2Q FY2018

2Q FY2019

2Q FY2018

2Q FY2019*PaD: Payment after Delivery

Transaction Lending

Early Payment

GMO Payment After Delivery

Remittance

Finance Lease

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

14

2.3.2

FinTech: BtoB Factoring

Launched Upfront Payment of receivables to address funding crunch
at SMEs with high cash needs
Provide GMO BtoB Early Payment toInfomart from September 2020 onwards
Backdrop
Backdrop: Supply gap widening for SMEs funding
Trend in Loans to SME Market
Trillion
JPY
（兆円）
45

Non-bank loan balance
ノンバンク貸出残高（左軸）(Left axis)

Addressable Market =Receivables at SMEs
¥78 trillion ※2※1
SME Business
中小企業業況判断DI（右軸）
Condition
DI

Trillion
JPY（兆円）(Right axis)

-20

40
-30

35

BtoB Platform Invoicing
Annual GMV ¥6.3 trillion ※3
Customer companies 280,000

-40

30

-50

25
20

-60
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Initiatives
Provide a financing-and-payment service
through receivables factoring to human-resource
and time-constrained SMEs（※1）Source: Small and Medium Enterprise Agency “SME Business Conditions Survey,” Financial Services Agency Stats on Money Lending Business（※2）Source: Ministry of Finance Policy Research Institute Financial Statements Statistics of Corporation by Industry Issue 798 (Oct. 2018), Aggregate of receivables of corporates
with capital of less than ¥100 million.
（※3）Figures are based on Informart Corporation’s press released dated February 28th 2019, “BtoB Platform Invoicing” for customer companies and FY2018 GMV figures.

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

15

2.4.1

Cashless: Ginko Pay

Broad coverage of QR-code payment (a.k.a. smartphone payment)
including internet companies and financial institutions
Internet related

15 out of 26 companies involved① provision of payment foundation:
6 companies② provision of charge infrastructure: 4 companies③ mounted on our mainframe system: 7 companies

Finance related

Ginko Pay adopted by 11 banks
Launch of Yucho Pay
Plan to enable mutual-accessing of merchants on the QR-code
payment services offered by the 3 megabanks

October 2019 onwards

Bank Pay

Connected to 11 banks

Mutual accessof merchants

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

16

2.4.2

Cashless: Cash withdrawal service

Strong start of cash withdrawal service: stock revenue
momentum robust■Stock revenue trend from services to FIs

Started cash withdrawal service atticket machines* at all Tokyo Linetrain stations from May 8 th 2019

Significance

Overall

YoY＋279.6％＋129.3％
YoY

・Acts as a bridge between the imminent cashlesssociety and immediate cash payment needs
・Highly convenient location of cashing

YoY＋114.3％

銀行Pay
Ginko Pay

プロセシング
Processing

Others
その他* Excluding Kodomo-no-Kuni Line and Setagaya Line

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

17

2.5

IoT/Card Present: Next Gen Payment Platform

Finalize and sign agreement in May, aim for early service rollout
Project Overview

Addressable market and estimated business size for GMO-PG
Roles Assigned

Payment Processing
Center2019
Cashless Market
GMO-FG TRX（GMO-PG TRX）

¥65 trillion¥0.3 trillion（¥4 trillion）

2025≒¥120 trillion？trillion（？ trillion）

SMCC（standalone basis）GMV

Buildout of network
functionCashless¥60 tr. (20％）

Cash &
A/C transfer

Acquirer

Cashless≒¥120 tr.
Cash &
A/C transfer

Accelerated growth of Group’s GMV
expected with the start of operation of thepayment platform*Figures for the year 2025 is based on our estimates
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

18

2.6.1

Global: Overseas business and focus areas

Steady progress in each region and region-specific strategies
U.S.A.
Reinforce Global
lending

China

TaiwanIndia

Hong Kong

Reinforce
Global lending
Thailand

Vietnam

Reinforce
Payment
processing
Phillippines

Money Service Business
Sales +60% YoY (Q2 standalone)
Continue investing in SMS biz (by MK)

Malaysia

Area of focus by business segment:

Singapore

Money Service Business

Reinforce Global
lendingIndonesia

Revenue +330% (March-only)
Continue investing in SMS biz (by MK)

Payment Processing Business: Strengthen partner strategy in Taiwan
Money Service Business: Acquire/Tie-up with new fintech company
Payment Enhancement Business: Continued investment to accelerate
topline growth in core countries（as of 10th May, 2019）
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

192.6.2Global: Q2 achievements &growth strategy

Focus on diversifying portfolio, laying groundwork for payment processing■Global: Quarterly revenue by business line
（mil. JPY）

（mil. JPY）

1,200

Left
axis

Right
1,000 axis

銀行／大企業ビジネス（SMSサービス）
Banks/Large companies (SMS service)

80

決済代行ビジネス（モバイル決済）
Payment processing (mobile payment)
決済代行ビジネス（Z.com）
Payment processing (Z.com)

70

FinTechビジネス（レンディング）
FinTech business (lending)■SMS service（MK） ＋22.8％ YoY *Investments yielding results in core strategic
countries (Vietnam, Indonesia)■Carrier billing (MK) －12.0％ YoY

60

800
50

600

40

Considering overhaul of business &resource reallocation■Payment processing（Z.com）＋109.3％ YoYStrengthen market-entry support to Japanesecompanies particularly in Taiwan■FinTech (Lending) Q2-only revenue ¥73 mil.
Pursue highly-selective investment/loan and20
alliance with promising fintech firms
30

400

200
10

0

FY201717/3
Q2-only

FY201818/3
Q2-only

FY2019 Ce
19/3
Q2-only

Ce = company estimate

0（The quarterly sequential decline in profit is due to year-end seasonal
decrease in the outstanding balance）* Comparison with previous year’s Q2-only figure.
SMS service (MK) gross margins are lower than carrier billing (MK)MK: Macro Kiosk Berhad
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

20

3.

Financial Highlights

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

21

3.1

Revenue by business model

Quarterly trend of revenue by business modelIFRS

J-GAAP（mil. JPY）

※
3,595

3,500
3,250
3,072
2,946

3,000
2,653

2,773 2,691 2,801

2,471

2,500

2,360
2,101

2,000
1,809

1,500

1,383

1,895

2,861
2,705
2,666

2,436

2,004

1,527

1,441

1,227 1,259

1,000
733

500

127

0

182

108

147

105

667

804

713
680
601
584 496
512
532
501
468
528
516
501
499
483
464
142

1,184 1,226

959

931

612
565

630

663

724
728

794

749
786
748

1,026
875

594

150

906

929

980
795

142

161

151

185

832

893

923

563

457
343

127

2,971

237

327

251

388

393
298

319

14/1Q 14/2Q 14/3Q 14/4Q 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

Initial

Stock

Fee

Spread※Online advertising service (stock) and finance leas (spread) revenues are recognized as a net amount with IFRS adoption rather than gross method.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

22

3.2

Balance Sheet changes

Increase in deposits received and MSB-related assets; capitalraised through Euro-Yen CB Issue（unit: mil. JPY)

Current assets
Other

*1
MSB-related

71,07936,867

Liability

Fixed assets
Investments
Other
13,259End-Sep
2017

63,569(o.w., Provision for
doubtful accounts-2,393)102,232

44,33851,34737,406 12,697 20,769

Interest Bearing Debt

14,626End-Sep
2018

90,838(o.w., Provision for
doubtful accounts-2,113)108,074

Net Asset

Deposits Received（under Representative Merchant Service)*2
MSB-related Net Asset
Other

41,228

Bonds

15,74026,02014,64625,294

June 19th 2018
Euro-Yen CB ¥17bn Issued（Raised ¥17.5bn）

14,832End-2Q
FY19

97,613

Bonds

48,198(o.w., Provision for
doubtful accounts -2,203)*1 MSB-related assets: Lease receivables, ST loans, advance payments, trade and accounts payable, other.
*2 MSB-related liabilities: accounts payables, expenses accrued*3 Some amounts are recognized as the net amount of financial assets and financial liabilities.
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

23

3.3

Major Quarterly KPIs

Group-wide annual TRX value reaches ¥4.1 trillion
Operating merchants: 133,199 stores, TRX volume approx. 420 mil., TRX value approx. 1 trillion.
（¥100 mil.)
11,000（Reference）Cumulative trailing 12-mnth TRX Value approx. ¥3.84 trillion（10,000 TRXs)

Including GMO FG, the TRX value reaches ¥4.11 trillion

10,000（stores)
9,000
120,000

40,0008,000
35,0007,000
100,000 6,000

30,0005,000
80,0004,000
25,000

TRX value as a share ofmerchant’s aggregate sales:≒50%※Annual average basis(revised in 5% increments)

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

0012/12 13/3 13/6 13/9 13/12 14/3 14/6 14/9 14/12 15/3 15/6 15/9 15/12 16/3 16/6 16/9 16/12 17/3 17/6 17/9 17/12 18/3 18/6 18/9 18/12 19/3

Recurring Billing

Online TRX Volume

Operating Merchants

TRX Value* The number of merchants dropped in end-Sep compared to end-Jun 2017 due to a service termination by a partner, causing the suspension of services.
* Number of operating merchants are measured on an end-of-quarter basis, while TRX value and volume are the total for the respective quarter.

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

24

4.

Reference materials

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

25

4.1

Factors affecting earnings
for cumulative 2Q period

Revenue grew 27.5% YoY, OP grew by more than 30%
Revenue

16,000（＋）Continued strong growth of online payment (spread revenue)（－）Temporary slowdown in online payments (fee revenue)（＋）Expansion of Ginko Pay and other services to financial institutions（＋）Growth of card-present payment field (GMO-FG)

14,000OP(mil. JPY)

+27.5％（+） Expanding scope of high-margin online payment fields*1（+） Margin improvement of GMO PaD and Remittance service（－）Absence of insurance payment related to information breach booked in previous 1Q*2（－）Higher Cost of Sales ratio from changes in sales mix (PS, FG, MK）

12,00010,000

Profit attributable to owners of parent（+）Decrease of equity method losses（－）Net financial balance worsens

8,000
6,000

+28.4％+30.2％

4,000+31.4％

2,000
0
Revenue

Operating Profit

Profit Attributable to

EBITDA

Owners of Parent

2Q FY2018*1 PaD：Payment after delivery*2 PS ：GMO Payment Service

2Q FY2019

FG ：GMO Financial Gate
MK ：Macro Kiosk Berhad
Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.

26

4.2

Cumulative Q2 Segment Revenue and OP

Payment Processing & MSB recorded higher revenue and OP, offsetting the strategic
losses in Payment Enhancement Business due to upfront investments■Segment Revenue■ Segment OP before adjustments & eliminations（mil. JPY）
18,00016,000（mil. JPY） Consoli. OP +30.2％ YoY

Revenue: +27.5％

14,00012,0002,491
10,000

8,000

3,106
6,000

4,000

6,960

2,000

2,909（+16.8％）

OP before adj./elimi. +27.4％ YoY

22987 （＋69.3％）
・Margin improvement in GMO
PaD & Remittance service
・Change in allowance on sometransactions
・Expansion of Lending service

583

4,724 （+22.5％）

・Brisk SMS service growth at
MACROKIOSK・Revenue growth of
4,900
marketing support service

3,833 （+23.4％）・Growth of GMO PaD・Expansion of Lending
service・Strong growth of
Remittance service

3,900

・Secular growth of online
payment
・Expanded adoption of
Ginko Pay
・Bulk sale contribution ofcard-present payment
terminals

Q2 FY18
Q2 FY19
Payment Enhancement Business
Money Service Business (MSB)

・Secular growth of online
payment
・Profit expansion of Ginko Pay
・Contribution of bulk sales ofterminals

2,900

3,855

9,272 （+33.2％）

0

Payment Processing Business

5,900

1,900

－31 （－）
・Upfront investments at
MACROKIOSK to solidify
business foundation andforex losses etc.

900

(100)

Q2 FY18

Q2 FY19

Payment Enhancement Business
Payment Processing Business*PaD: Payment after Delivery（）: % YoY

Money Service Business (MSB)

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

27

4.3

Cumulative Q2 Revenue breakdown
by business model

Achieved over-25% YoY growth despite slower-than-1Q
growth in Fee and Spread revenues（mil. JPY）

Spread +24.6％ YoY

16,00014,000

6,846

12,000Fee

5,492

10,000

6,044

8,000

4,797
2,411
1,628

639
Cumulative Q2FY2018Initial*713

Cumulative Q2FY2019Stock・Sluggish fee revenue in online payment (Q2-only)・Robust card-present payment
・Robust SMS service at MacroKiosk
・Return to 25% growth trajectory thanks tobank business** Includes ¥355mil. during the cumulative Q2 period from theimpact of recognizing prorated software development revenues
as per IFRS 15, instead of the lump sum method booked in Initial

2,000

0

+26.0％ YoY

Stock +48.1％, adj. +26.3% YoY**

6,000

4,000

・Strong online payment
・Decline in Spread revenues from PaD* (2Q-only)
・Carrier billing revenue decline at Macro Kiosk
・Launch of Global Lending

Fee

Initial +11.5％ YoY, adj. +67.0%
・Growth of card present payment (GMO-FG)

Spread*PaD: Payment after Delivery

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

28

4.4

Revenue trend by business model (annual)Pursue balanced growth of each business model（mil. JPY）

IFRS

J-GAAP

32,00030,00028,00026,000SPREAD

24,00022,00020,00018,00016,00014,00012,000FEE

10,000
8,000
6,000

STOCK

4,000
2,000

INITIAL0
2004/92005/92006/92007/92008/92009/92010/92011/92012/92013/92014/92015/92016/92017/92018/9 2019/9E

TSE
Listing

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

29

4.5.1

Quarterly trend of CoS and SGA ratio

CoS ratio fluctuates with changes in sales mix（mil. JPY）

8,246

※44.5％
50.3%

8,000

※47.2％
50.4%※41.7％
46.8%※42.6％
45.6%※39.8％
43.6%

7,769

※40.3％
44.2%※39.9％
43.6%
6,086※37.4％
5,645

5,716

32.1%

31.9%

5,000

40.9% 6,459

22.4%

40.2%

31.9%

21.3%

2,998
3,000

2,603

3,090

3,294

36.1%

36.4%

3,098

1,813

1,655

2,494

2,491
1,823

2,997

1,940

2,035

2,595
2,143

2,382

3,004

2,791
2,807

20.0%

2,581

2,320

1,316

1,307

10.0%
1,109

944
508

35.4%

35.9%40.0%

30.0%

3,067

2,036

2,000

1,000

35.3%

25.5%

2,497

2,265

1,247

37.6%

36.3%

33.4%
33.2%

2,733

1,372

41.1%

23.4%

22.8% 22.6%

22.5%

6,563

6,098

4,347
4,000

50.0%

7,295

42.6%

41.7%
※41.5％

6,000

IFRS

J-GAAP※50.2％
52.7%

7,000

*Figures with asterisk exclude outsourcing expense related to MSB.
These outsourcing expenses are not booked in SG&A from Q1 FY2018 due to IFRS adoption.

554

615

683

700

772

0

0.0%
15/6(3Q) 15/9(4Q) 15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 19/9(1Q) 19/9(2Q)

売上高
Revenue

売上原価
CoS ratio

販管費
SG&A

売上原価率
CoS ratio

売上販管費率
SG&A ratio

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

30

4.5.2

Quarterly trend of PG and EP’s CoS and SGA ratio

CoS ratio fluctuates with changes in sales mix*All figures are based on J-GAAP
PG: GMO-PG, EP: GMO Epsilon（mil. JPY）
8,000

50.9%

51.8%

48.8%

7,000

44.9%

44.8%
42.5%

40.4%

6,000

44.8%

45.3%

41.3%

5,000

3,653

3,000

19.8%

2,478

2,570

2,827

2,899

3,469

21.9% 3,397

21.1%

21.2%

3,092

22.6%

21.3%

4,384

22.1%

23.6%

24.2%

20.7%

1,890
1,509
1,151

1,203

543

599

1,225

1,197

869
451

490

611

677

1,785

1,525

767

778

20.0%
2,253
1,783

1,611

10.0%

1,180
770

1,577

21.0%

23.0%
2,212

1,283
1,000

30.0%

24.3%

2,154
2,000

4,840

3,937

3,712

22.2%

5,032
4,663

4,297
4,000

36.7%

34.0%

33.5%

21.1%

40.0%

36.8%
36.7%

20.9%

50.0%

47.4%

822

928

1,039

1,067

1,071

1,043

1,016

0

0.0%
15/6(3Q) 15/9(4Q) 15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 19/9(1Q) 19/9(2Q)

売上高
Revenue

売上原価
Costof Sales

販管費
SG&A

売上原価率
CoS ratio

売上販管費率SG&A
ratio

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

31

4.6

Consolidated CF Statement

Positive FCF thanks to earnings and increase in deposits received(mil. JPY)J-GAAP

20,000IFRS

18,00016,00014,00012,00010,0008,000
6,000■Changes in cumulative Q2 FY19
Operating CF:＋¥3,839
Pretax profit+ ¥4,134
Chgs. in receivables + ¥1,447
Advances paid
－ ¥4,143
Accrued Income－ ¥2,856
Chgs. in payables+ ¥112
Accrued expenses ＋ ¥1,085
Deposits received＋ ¥6,969

4,000
2,000
0
-2,000-4,000-6,000-8,000-10,000
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
1H
1H
Operating CF

Investing CF

Financing CF

Investing CF:
Time deposits
Acq. of intangibles－ ¥61＋ ¥689－ ¥568Financing CF:
Chgs. in ST debt
LT debt repayments
Dividend payment－¥2,574+¥699－ ¥400－ ¥2,133

Free CF*+ ¥3,778

Cash & Equivalent＋¥43,202

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

32

T h a n k Yo u Ve r y M u c h

GMO Payment Gateway, Inc.
(3769; Tokyo Stock Exchange, Section 1)
URL： https://corp.gmo-pg.com /en /ir/
For inquiries please contact our IR team at the telephone number below:

Corporate Value Creation Strategy Division (IR Department)

TEL:+81-3-3464-0182