Slide 1: Financial results briefing for the Q4 of FY2016
Financial results briefing for the Q4 of FY2016 （ O c t o b e r 1 , 2 0 1 5 - S e p t e m b e r 3 0 , 2 0 1 6 ） A favorable year: we enhanced our foundation for future growth through well-balanced investment and M&A November 7, 2016 The 47 th IR Meeting ＧＭＯ Payment Gateway, Inc. (3769: Tokyo Stock E
Slide 2: A cautionary note about the contents of this document
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 November 7, 2016. However, please note that they are subject to change withou
Slide 3: Agenda
Agenda 1. Performance overview of FY2016 2. Issues 3. Performance forecast of FY2017 4. Strategies for future growth 5. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: Performance overview of FY2016
1. Performance overview of FY2016 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: Performance overview①
1.1 Performance overview① Achieved our commitment of 25% OP growth FY2016 FY2016 FY2015 (Million yen) % Change % Change (Forecast) (Actual) (Actual) Sales 11,413 12,113 +6.1％ 9,030 +34.1％ Operating 3,741 3,819 +2.1％ 2,977 +28.3％ income Operating 32.8％ 31.5％ -1.3% 33.0％ -1.5% income ratio Ordinary 3,
Slide 6: Performance overview ②
1.2 Performance overview ② Record highest revenue growth ratio, ¥27 dividends per share, up ¥5 per share ■ Points of FY2016 Sales： + 34.1％ / Highest revenue growth ratio since listed in 2005 Good shape in payment processing business（up 20% in real terms） Money service business is expanding（up 163%）
Slide 7: Activities in FY2016
1.3 Activities in FY2016 Action plan for the next decade Highlights Lowlights Segment ・Cultivating major/high-growth merchants ・Expansion of money service business Payment ・Consecutive adoption of our services in processing taxes sector (zei.tokyo) business ・Approaching the growth area of the offlin
Slide 8: Sales/Operating Income by Segment (Cumulative)
1.4 Sales/Operating Income by Segment (Cumulative) OP of payment processing business up 26.9％ in real terms * ％：YOY ■Sales (segment) ■ Operating income (segment) ()：overall （12,113,864） （5,443,036） （1,000 yen） 12,000,000 1,238,876 159,485 （1,000 yem） +46.2％ +89.5％ 4,900,000 10,000,000 2,242,795 （4,1
Slide 9: Issues
2. Issues Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 9
Slide 10: Our approach to all payment methods
2.1 Our approach to all payment methods Press release outline ●GMO-PG partners with Money Forward to offer Lending service to SMEs Lending ⇒For companies and individual businesses that use Money Forward’s billing and accounting software Payment after ●GMO-PS launches “GMO Payment after delivery” ser
Slide 11: Payment solution provided by Hama Pay
2.2 Payment solution provided by ”Hama Pay” Focusing on the area of cash payments, support new payment solutions provided by Bank of Yokohama ■ Area of ”Hama Pay” solution ■Solutions Major payment methods Spending Current issues Solutions High end • Cash management General • Completely cashless • Lo
Slide 12: Performance forecast for FY2017
3. Performance forecast for FY2017 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12
Slide 13: Performance forecast overview
3.1 Performance forecast overview Operating income up 31.2％、planning +10 yen for dividends ■ FY2017 forecast （Million yen, ％ yoy） Operating Ordinary Net Net sales income income income EBITDA Full year 18,767 (54.9％) 5,013 (31.2％) 4,673 (23.6％) 2,762 (-5.1％) 5,811 （38.7％） 2Q of FY 8,389 (46.4％) 2,499
Slide 14: Forecast
3.2.1 Forecast Sales up 54.9％, Operating income up 31.2％ （1,000 yen） Sales YoY +54.9％ （1,000 yen） Operating income YoY +31.2％ 20,000,000 5,000,000 MK FG MK 4,500,000 Excluding MK & FG YoY +30.1％ FG 4,000,000 15,000,000 Excluding MK & FG 3,500,000 YoY +26.1％ 3,000,000 10,000,000 2,500,000 2,000,000 1
Slide 15: Forecast (Quarterly)
3.2.2 Forecast (Quarterly) Quarterly forecasts （％:YoY） ■ Forecast for the period ending September 30, 2017 Sales +64.7％ Operating income +30.3％ （1,000 yen） （1,000 yen） +28.9％ 5,000,000 +60.3％ +37.8％ +53.5％ +28.5％ +38.6％ 4,000,000 1,000,000 3,000,000 2,000,000 500,000 1,000,000 0 0 FY2014 FY2015 FY20
Slide 16: Revenue Breakdown by Business Model
3.2.3 Revenue Breakdown by Business Model Action plans to realize growth in all business models （1,000 yen） ・Cultivate growing merchants ・Service to increase 18,000,000 the merchants’ sales ・Expansion of MSB such as Transaction 16,000,000 lending, Early payments ＋41％ ・FG 14,000,000 ・Cultivating larg
Slide 17: Strategies for future growth
4. Strategies for future growth Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 17
Slide 18: Ecosystem of our business
4.1 Ecosystem of our business All our services for increasing our Merchant’s sales, and our Payment Processing Transaction analysis Offline(card- GMO present)/ Online BtoB payment Online Advertising Lending after payment delivery processing Increasing sales of the merchant Increasing sales of the me
Slide 19: Our approach to offline(card-present) payments
4.2 Our approach to offline(card-present) payments Expanded our business in the offline(card-present) market by making GMO Financial Gate our subsidiary ■Market changes and new areas of growth ■Capital structure and business area • Security strengthening due to growing consumption Online market from
Slide 20: Global business expansion
4.3.1 Global business expansion Mission of To offer a convenient payment method for the ASEAN economic Global Business zone which has more than 600 million people Current and future potential of ASEAN Purpose of MacroKiosk(MK) acquisition ■Bank account ownership rate in ASEAN countries ■Overview of
Slide 21: Global business expansion
4.3.2 Global business expansion MK’s contribution to our growth: their sales ratio of our global business is up to over 10%. ■Forecast of MK’s performance ■Their sales ratio of our global business Over 10% (Million yen) Contribution to our OP growth of 25％ 9,000 8,000 7,000 Small % 6,000 5,000 4,000
Slide 22: Expansion of Money service business (MSB)
4.4.1 Expansion of Money service business(MSB) Steady build-up of MSB-related assets ¥40 bil (Plan) Actual ¥14.2 bil Business Plan ¥5 bil 2015/9 2016/9 2017/9 2018/9 2019/9 2020/9 Plan Plan Plan Plan Transaction lending Early payment Finance lease Copyright (C) 1995 GMO Payment Gateway, Inc. All Rig
Slide 23: MSB: GMO Payment after delivery
4.4.2 MSB: GMO Payment after delivery Adoption by ZOZOTOWN to boost growth ■Amount of “GMO Payment after GMO-PG launches “GMO Payment after delivery” payments processed delivery” service for Japan’s largest fashion shopping website “ZOZOTOWN” Growth acceleration The number/amount of processed paym
Slide 24: Breakdown of Operating Income Trends
4.5 Breakdown of Operating Income Trends Business expansion strategy: from Payments to Fintech, global Operating Profit (Bil¥) 100 Strategy X (in preparation) Expansion of ・Payment service Global ・Global payment provider ・Banking business Solutions ・Payment in Asia/Banking business ・Lending business
Slide 25: Financial highlights
5. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 25
Slide 26: Consolidated Balance Sheets
5.1 Consolidated Balance Sheets MSB growth reflected in current assets Results for Results for Results for Results for (Million yen) Change (Million yen) Change Q4, FY2016 Q4, FY2015 Q4, FY2016 Q4, FY2015 Current assets 45,549 38,469 7,079 Current liabilities 35,330 25,448 9,882 Deposits received 27
Slide 27: Consolidated statement of cash flows
5.2 Consolidated statement of cash flows Cash and cash equivalents decreased temporarily because of the growth of MSB related assets and MA activities （Unit: Million yen） FY2015 FY2016 Net cash provided by operating activities 3,709 -748 Net cash provided by investing activities －1,374 －3,415 Net ca
Slide 28: Changes to Major KPI (Quarterly Change)
5.3 Changes to Major KPI (Quarterly Change) Amount of processed payments almost ¥2 trillion Number of operating stores 77,256 / Amount of processed payments ¥500 billion / Number of processed payments 234 million (ten thousands (billion of processed amount of (Reference) Amount of processed payments
Slide 29: Thank you very much!
Thank you very much! GMO Payment Gateway, Inc. (TSE 3769) URL https://corp.gmo-pg.com/en/ir/ For more information, please contact the Corporate Value Creation Strategy Division Investor Relations Office Phone: +81-3-3464-0182