Slide 1: Financial results briefing for the 3Q of FY2016
Financial results briefing for the 3Q of FY2016 (April 1, 2016-July 31, 2016) Themes: Promoting the use of online payments and contributing to the growth of customers’ business August 1, 2016 The 46 th IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange Section-1) h t t p : / / c o r p
Slide 2: A Note About the Contents of this Document
A Note About the Contents of this Document The contents of this document are based on generally recognized economic and social conditions, as well as assumptions judged to be reasonable by GMO Payment Gateway as of August 1, 2016. However, please note that they are subject to change without prior no
Slide 3: Agenda
Agenda 1. Summery of Financial Results for 3Q FY2016 2. Progress of the Growth Strategy 3. Financial Highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Summary of Financial Results for 3Q FY2016
1. Summary of Financial Results for 3Q FY2016 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: 1.1 Summary
1.1 Summary OP up 28.4％ (3Q, YoY), reflecting the continued strength of payment services & MSB Consolidated results of 3Q, Consolidated results of 3Q, FY2016 3Q of (Million yen) FY2015 3Q of FY2016 (cumulative) FY2015 (cumulative) Actual Forecast Actual A/F% Change Change% Actual Actual Change% Sale
Slide 6: 1.2 Recent Topics
1.2 Recent Topics A list and overview of press releases published since April 2016 Data processing Finance service ●Launching credit card payment of automobile taxes ●Launching “Rakuraku remittance service by GMO (Oita pref./Fukuoka pref.) Epsilon” ⇒ Contribution to the government’s growth strategy
Slide 7: 1.3 Revenue Breakdown by Business Model (April-June)
1.3 Revenue Breakdown by Business Model (April-June) Spread revenue is up over 49% due to the increasing amount of processed payments and MSB growth (1,000 yen) 3,000,000 Spread YoY+49.1％ ・MSB continued to grow steadily (Early Payment Service・FL) ・Amount of processed payments increased 2,500,000 1,3
Slide 8: 1.4 Sales/Operating Income by Segment (Cumulative)
1.4 Sales/Operating Income by Segment (Cumulative) Operating income up 22％ (Up 28.4％ overall) ％: YoY (vs. Forecast) ■Sales (segment) ■ Operating income (segment) 9,000,000 904,671 124,217 (1,000 yen) +48.6％ (1,000 yen) +69.7％ (+29.3％) 3,900,000 (+114.3％) 8,000,000 1,554,483 7,000,000 3,400,000 73,19
Slide 9: 2. Progress of the Growth Strategy
2. Progress of the Growth Strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 9
Slide 10: 2.1 Industry Topics
2.1 Industry Topics Our corresponding to the influence of Payments industry trends Topics Anticipated change Impact on the Company and response Seek partnerships to provide GMO Internet start preparations for Development of Fintech clients of neobanks with necessary the establishment of neobanks ser
Slide 11: 2.2 Future Development of Business
2.2 Future Development of Business Goals we have set, our management measures to achieve them, and their purposes Purpose Measure/service Our goal Aiming to achieve our existing targets, and to fulfil our further business growth Operating income Business/service global Global investment strategy com
Slide 12: 2.3 Acquisition of Major Merchants
2.3 Acquisition of Major Merchants Data processing Marketing and systems are our main means to acquire major merchants Target: ・Mail-order enterprises・e-commerce businesses, financial institutions, insurance enterprises, municipalities, gas and electric power businesses, etc. Background: ・Created ne
Slide 13: 2.4.1 Face-to-face Market
2.4.1 Face-to-face Market Data processing From “stand-alone” to “embedded,” we will bring the Internet to all devices IoT Internet of Things Payment apps Business apps Payment data Internet SIM card Operation data Magnetic stripe Contact IC card Non-contact IC card card + Alipay Mobile wallets, etc.
Slide 14: 2.4.2 Face-to-face Market
2.4.2 Face-to-face Market Data processing As a result of the alliance-based business strategy, acquiring new face-to-face markets and expanding business Drivers for further growth GMO-FG results (actual and forecasts) IoT-related business Smartphones Inbound etc. * Capturing inbound demand Number of
Slide 15: 2.5 SMBC GMO PAYMENT (JV)
2.5 SMBC GMO PAYMENT (JV) Data processing Number of accounts exceeded the business plan, currently strengthening the sales structure and providing prompt response Achieve the desired synergy between the companies Strong business platforms for domestic and overseas markets, and creditability Synergy
Slide 16: 2.6 Money Service Business (MSB) (1)
2.6 Money Service Business (MSB) (1) Finance service MSB-related assets and sales are steadily increasing MSB-related sales About ¥0.9bil About ¥0.4bil/1Q About ¥1bil/2Q About ¥1.6bil/3Q MSB-related sales (annual) (Beginning of period plan) About ¥12.6bil About ¥1.7bil (Annual) About ¥10bil About ¥9
Slide 17: 2.7 Money Service Business (MSB) (2)
2.7 Money Service Business (MSB) (2) Finance service GMO payment after delivery and remittance services are in good shape The number and Remittance service sales 60 10 (index) +80％ amount of payments +80％ 50 for GMO payment after 8 delivery (index) 40 6 30 4 20 2 10 0 0 Number of payments Amount of
Slide 18: 2.8 Global Business
2.8 Global Business Global solutions Support for entry into Taiwan, progress in settlement agent services, overseas business, circulating amount quadrupled ■Scale of EC (B2C) market, ■Amount of processed payments, Yearly average growth rate settlement sales in upward trend 4 times Hong Kong 0.5 Taiw
Slide 19: 3. Financial Highlights
3. Financial Highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 19
Slide 20: 3.1 Consolidated Balance Sheets
3.1 Consolidated Balance Sheets MSB growth reflected in current assets Results for Results for Results for Results for (Million yen) Change (Million yen) Change 3Q, FY2016 3Q, FY2015 3Q, FY2016 2Q, 2015 Current assets 47,680 39,868 7,812 Current liabilities 35,459 26,895 8,564 Deposits received 29,9
Slide 21: 3.2 Summary of Consolidated Results
3.2 Summary of Consolidated Results Sales and income exceed the forecast 3Q of FY2016 YoY 3Q of FY2015 (Million yen) Sales YoY Sales Actual composition Change change % Actual composition Sales 8,820 100% 2,392 +37.2% 6,427 100% Cost of sales 1,997 22.6% 631 +46.2% 1,366 21.3% Growth income 6,822 77.
Slide 22: 3.3 Sales/Gross Income, Quarterly Change
3.3 Sales/Gross Income, Quarterly Change Sales up 36.4％ over previous 3Q, gross income (real) up 27.1％ YoY ■Sales ■Gross income YoY +36.4％ (1,000 yen) (1,000 yen) +36.0％ 3,089,611 2,997,800 3,000,000 2,389,926 2,314,995 2,732,786 2,603,210 2,117,708 2,049,413 2,500,000 2,000,000 2,264,704 2,204,334
Slide 23: 3.4 Consolidated Operating Income/Ordinary Income, Quarterly Change
3.4 Consolidated Operating Income/Ordinary Income , Quarterly Change Operating income up 32.2％ over previous 3Q, ordinary income up 29.8％ ■Operating income ■ Ordinary income YoY+32.2％ YoY+29.8％ (1,000 yen) (1,000 yen) Growth rate 1,200,000 differences arose 1,022,383 due to exchange 1,100,000 1,074,
Slide 24: 3.5 Revenue Breakdown by Business Model (Quarterly Change)
3.5 Revenue Breakdown by Business Model (Quarterly Change) Spread revenue up 49.1％ (1,000 yen) YoY 1,400,000 1,326,433 Initial +18.7％ 1,280,987 Stock ＋32.2％ 1,155,545 1,200,000 1,148,987 Fee ＋26.7％ * Special factor Spread ＋49.1% 1,000,000 873,483 889,917 826,928 864,012 771,471 800,000 752,202 728,7
Slide 25: 3.6 Cost of Sales Ratio/SG&A Ratio (Quarterly Change)
3.6 Cost of Sales Ratio/SG&A Ratio (Quarterly Change) The sales-cost ratio may fluctuate due to the sales mix * Excluding MSB-related outsourcing expenses (1,000 yen) * 50.2％ 3,089,611 51.6% 52.7% 50.9% 2,997,800 3,000,000 50.0% 2,732,786 45.6% * 39.8％ * 37.4％ 44.4% 44.0% 43.6% 43.5% 43.8% 43.2% 42.
Slide 26: 3.7 Changes to Major KPI (Quarterly Change)
3.7 Changes to Major KPI (Quarterly Change) Amount of processed payments on pace to exceed ¥2 trillion this period Number of operating stores 72,569 / Amount of processed payments ¥540 billion / Number of processed payments 227 million (number of (billion (ten thousand stores) amount of of processed
Slide 27: 3.8 Summary of Changes in Consolidated Performance
3.8 Summary of Changes in Consolidated Performance (FY2015 Forecast) Plan: income growth of +25%, dividend of ¥22.0 per share ¥22.00 (1,000 yen) 11,413,000 ¥18.00 ¥15.00 10,000,000 ¥12.25 ※YoY change ofperformance forecast ¥9.75 9,030,892 8,000,000 Sales: +26.4％ ¥7.75 ¥5.88 7,205,542 Operating incom
Slide 28: 3.9 Revenue Changes Breakdown by Business Model
3.9 Revenue Changes Breakdown by Business Model (FY2015 Forecast) Utilize each type of measure to achieve Cultivating growing ・ sustained growth of each business model merchants ・Measures to increase merchants’ sales ・Expansion of MSB such as Transaction ％: YoY + 34.2％ Lending, Early payment (1,000
Slide 29: Thank you very much!
Thank you very much! GMO Payment Gateway, Inc. (TSE 3769) URL http://corp.gmo-pg.com/ For more information, please contact the Corporate Value Creation Strategy Division Investor Relations Office Phone: +81-3-3464-0182