Gmo Payment Gateway, Inc. · TSE:3769
Gmo Payment Gateway — Q1 FY2015 Earnings Presentation
31 slides from Gmo Payment Gateway's earnings presentation, Feb 6, 2015
Slide 1: Financial results briefing for the 1Q of FY2015
Financial results briefing for the 1Q of FY2015 （ O c t o b e r 1 , 2 0 1 4 - D e c e m b e r 3 1 , 2 0 1 4 ） Themes： Ordinary income to grow 26% by recognizing the EC market’s structural change February 6, 2015 The 40 th IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h
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 February 6th , 2015. However, please note that they are subject to change wit
Slide 3: Agenda
Agenda 1. Summary 2. Future growth strategy 3. Financial highlights 4. Results forecast for the term ending September 2015 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Summary
1. Summary Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: Market changes
1.1 Market changes 2015 is a year of change in the EC market, with the advent of a “New-fields-EC” ⇒Service commerce/ digital EC/ CtoC will be the growth engine in place of the sale of Goods-EC New-fields-EC “New-fields-EC” E-book （Company A）up 141％ Web content （Company B）up 114％ Car sharing （Compan
Slide 6: Our business performance
1.2 Our business performance Ordinary income to grow 26% Payment ＋ ⇒ Processing Business New business Ordinary income to grow 26% In good shape Rapid growth Goods-EC ：Bullish GMO Payment Later service EC Maeket：17%Growth Face-to-face area (smartphone （2013） New-fields-EC：Very strong Payment) MSB(Mon
Slide 7: Comparison to market and other companies
1.3 Comparison to market and other companies Growth outperforms EC-related firms and other rivals Revenue index of EC-related listed firms (quarterly) Comparison of operating income / operating income growth rate of payment processing firms (FY2014) 25.0% OP margin 1.4 EC-malls・EC Businesses average
Slide 8: Source of unrivaled growth that outperforms the market
1.4 Source of unrivaled growth that outperforms the market “System capability, “expansion to New-fields-EC” and “launch of new products” are the key “System capability” To incorporate new fields (mass processing and low unit price) into our growth, 1. Capability to process massive volume of payments
Slide 9: 2. Future growth strategy
2. Future growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 9
Slide 10: Management direction
2.1 Management direction Well-balanced growth of the four profit models while launching new services Initial Stock Fee Spread Payment processing Payment processing Payment processing Development GMO Payment connected to after delivery settlement Large-sized enterprises Shipping services Service for
Slide 11: Broad definition EC market
2.2 Broad definition EC market Initiatives to conquer the EC market in a broad definition is well under way, contributing to accelerated growth BtoB market BtoC market CtoC Market BtoB market Dawn of the ¥1,000 Trillion CtoC EC Narrow definition market Goods BtoC-EC market Non face-to-face GMO Payme
Slide 12: Growth strategy
2.3 Growth strategy Sustaining more than 20% income growth is our mission Past decade Next decade The largest in Japan The largest in Asia Processing company Invention partner OP: 0.2⇒2.5 billion yen OP: 2.5⇒25 billion yen Strategy③ Long-Term “Business area” Asian market Innovation Strategy② Mid-Ter
Slide 13: Strategy 1: Expansion into New-fields-EC
2.3.1 Strategy①Expansion into “New-fields-EC” Service commerce/ digital EC/ CtoC will be the growth engine Amount of processed online Private consumption payments（Index,2008/1=1） Change in business category of our top 50 customers integrated estimates 2.5 （Sales） 120 CtoC Amount of processed online
Slide 14: Strategy 1: Face-to-face area: COC
2.3.1 Strategy①Expansion into “New-fields-EC” Face-to-face area: COC Increase in spread revenue and growing smartphone payments in the face-to-face area have started making contributions to growth Sales COC smartphone transaction volume Initial Spread Fee Stock 14/5 13/1 13/2 13/3 13/4 13/5 13/6 13/
Slide 15: Strategy 1: BtoB
2.3.1 Strategy①Expansion into “New-fields-EC” BtoB Results of full-fledged marketing promotion are showing promise Started full-fledged promotion of 320 BtoB payment processing service Y-o-y Number of BtoB marchants 2014/9 “EC-CUBE B2B” started +64％ 280 2014/4 240 “Visa Business Pay” started 200 160
Slide 16: Fields in the near future
2.3.1 Fields in the near future Expected change Our stance Regional revitalization Cabinet Secretariat Integration of regional banks Bill to revitalize towns, Promote cashless payment Redevelopment of the areas people and jobs Assist vitalization of local surrounding stations (Fiscal years 2015 – 20
Slide 17: Strategy 2: GMO Payment after delivery
2.3.2 Strategy②” Product strategy” GMO Payment after delivery Still at the investment stage, but amount of loss is shrinking QonQ Number of processed payments Sales 18.7 times QonQ 22.5 times 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q Copyright (C) 1995 GMO Payment Gateway, Inc. All
Slide 18: Strategy 2: Other than payment processing service
2.3.2 Strategy②” Product strategy” Other than payment processing service New service other than settlements started to contribute to sales growth Sales of other than payment processing service Transaction lending started to become profitable Money service business started to become profitable Launch
Slide 19: Strategy 3: Business area - cross border EC
2.3.3 Strategy③“Business area” Expand to the world’s growth center （１）Accelerate support to Japanese merchants’ “Cross border EC” Expand mainly in the travel / female consumer GMO-PG Global Payment market where Japan has strengths GMO Global Payment Fund GMO-PG×GMO-VP Full-fledged cross border EC Tr
Slide 20: Strategy 3: Reaching local EC markets
2.3.3 Strategy③“Business area” Expand to the world’s growth center （２）Reaching local EC market by providing support to local payment processing firms ※Number: Increase in the number of processed payments after our investment Goods 4times 4times EC Credit card payment services for the big EC Cash rec
Slide 21: 3. Financial highlights
3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 21
Slide 22: Summary of the consolidated results
3.1 Summary of the consolidated results Operating income up 25.7%, achievement ratio of 1H targets is 49% for net sales and 52% for ordinary income Compared to the results Compared to the cumulated forecast for （Million yen） 1Q of FY2015 for previous corresponding period 2Q(1H), FY2015 Results Growt
Slide 23: Summary of the consolidated balance sheets
3.2 Summary of the consolidated balance sheets Change in increasing pace of deposit due to diversification of closing/payment cycles Results for Results for Results for Results for （Million yen） 1Q, FY2015 1Q, FY2014 Change （Million yen） 1Q, FY2015 1Q, FY2014 Change Current assets 27,092 22,422 4,67
Slide 24: Sales/Ordinary income (Quarterly changes)
3.3 Sales/Ordinary income (Quarterly changes) Ordinary income grew by 26.0%, exceeding sales growth rate ■Sales Compared to last 1Q 20.5％ increase except payment system ■ Ordinary income （1,000yen） +19.1％ development sales （1,000yen） Compared to last 1Q 2,000,000 1,958,642 +26.0％ 1,892,030 800,000 7
Slide 25: Sales results for each segment (Quarterly changes)
3.4 Sales results for each segment（Quarterly changes） Transaction processing revenue and merchant acquiring service revenue are in good shape （1,000yen） y-o-y 800,000 Initial revenue -17.2％ 752,202 705,327 700,000 Monthly revenue +11.1％ 689,264 670,573 Transaction processing revenue +24.2％ 600,000 M
Slide 26: Cost of sales ratio/SG&A ratio (Quarterly changes)
3.5 Cost of sales ratio/SG&A ratio（Quarterly changes） Higher cost-to-sales ratio due to sales mix has been absorbed by DC integration effect, among others （千円） 2,500,000 60.0% 53.2% 51.6% 50.9% 50.0% 1,958,642 2,000,000 1,892,030 47.0% 1,842,793 45.9% 45.8% 45.6% 1,825,574 43.9% 44.4% 44.0% 43.2% 42
Slide 27: Transition of the major factors (Quarterly changes)
3.6 Transition of the major factors (Quarterly changes) Number of operating stores rose rapidly thanks to a large project Settlement volume also grew sharply fuelled by new fields Number of operating stores 54,469/ Amount of processed payments 380billion yen/ Number of processed payments 192Million
Slide 28: 4. Results forecast for the term ending September 2015
4. Results forecast for the term ending September 2015 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 28
Slide 29: Summary of the consolidated results (Forecast)
4.1 Summary of the consolidated results (Forecast) Repeat operating income growth rate of 20% as investment phase will still continue （Million yen） 9,000,000 8,656,000 ※％ yoy 8,000,000 Sales +20.1％ 7,205,542 Operating income +20.1％ 7,000,000 ¥18.00 Ordinary income +18.1％ 6,000,000 ¥15.00 5,764,085 N
Slide 30: Sales for each segment (Forecast)
4.2 Sales for each segment (Forecast) Action plans to realize the balanced growth in all segments （Million yen） 9,000,000 ※％y-o-y Cultivating large-scale 8,000,000 merchants 7,000,000 + 29％ + 26.7％ 6,000,000 + 27.6％ 5,000,000 “GMO payment later” + 28.4％ expantion 4,000,000 + 22.8％ + 22％ + 36.4％ + 17
Slide 31: 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 Company Value Creation Planning Office IR/PR Group TEL:03-3464-0182
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