Gmo Payment Gateway, Inc. · TSE:3769
Gmo Payment Gateway — Q1 FY2018 Earnings Presentation
28 slides from Gmo Payment Gateway's earnings presentation, Feb 13, 2018
Slide 1: Financial results briefing for the Q1 of FY2018
Financial results briefing for the Q1 of FY2018 Sustainable growth through online payment expansion and a push for a cashless society February 13, 2018 The 52 nd IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange Section-1) https://corp.gmo-pg.com/en/
Slide 2: A cautionary note about the contents of the document
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 as assumptions judged to be reasonable by GMO Payment Gateway as of February 13, 2018. However, please note that they are subject to change wit
Slide 3: Agenda
Agenda 1. Management goal and requirements for FY2018 and industry topics 2. Summary of financial results for Q1 of FY2018 3. Earnings forecast for FY2018 4. Future actions to implement growth strategies 5. Financial highlights 6. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All
Slide 4: 1. Management goal and requirements for FY2018 and industry topics
1. Management goal and requirements for FY2018 and industry topics Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: 1.1 Management goal and requirements for FY2018
1.1 Management goal and requirements for FY2018 Leading a promotion and expansion of cashless payment for the development of the whole industry ■Management goal Ensuring a sequential growth (OP growth by 25%+) ■Management requirements １．Promotion for a cashless society Promotion of business with ban
Slide 6: 1.2 Industry topics
1.2 Industry topics Our position regarding recent industry news Our actions / what these mean to us REV Installment Sales Act to be in place from June 1, 2018 ・GMO-PG addressing security measures and merchant examinations mandated under the Act ・GMO-FG promoting IC-compatible terminals in card-prese
Slide 7: 2. Summary of financial results for Q1 of FY2018
2. Summary of financial results for Q1 of FY2018 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 7
Slide 8: 2.1 Business performance
2.1 Business performance Promising start with OP +28.7% and transaction value +36.1％ Q1 FY2017 Q1 FY2018 （million yen） YoY change (actual) (actual) Revenue 4,826 6,098 ＋26.4％ Operating profit 1,238 1,594 ＋28.7％ Profit attributable to owners of parent 609 860 ＋41.1％ (Net profit) EBITDA *1 1,389 1,818
Slide 9: 2.2 Factors that affected the cumulative results
2.2 Factors that affected the cumulative results Financial statements disclosed under IFRS from Q1 FY2018 Revenue (million yen) +26.4％ ・Grew above the market growth of major Ecommerce merchants 6,000 ・Business area expansion outside merchandising Ecommerce kicked in (service/digital contents, busine
Slide 10: 2.3 Revenue/OP by segment
2.3 Revenue/OP by segment Payment processing business OP +20% (real-term) *() represents year- Money Service Business OP +135％ on-year change ■Revenue by segment ■ OP by segment (before consolidation adjustment) Total: +26.4％ after adjustment Total: +24.2％ (before adjustment) (million yen) (million
Slide 11: 2.4 Revenue breakdown by business model
2.4 Revenue breakdown by business model Fee and spread solid with higher transaction value and volume (million yen) 6,000 Spread YoY ＋30.0％ ・Payment processing business solid (incl. bitcoin related businesses) 5,000 2,691 ・GMO payment after delivery value rose 2,070 Fee YoY ＋37.6％ 4,000 ・Payment pro
Slide 12: 3. Earnings forecast for FY2018
3. Earnings forecast for FY2018 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12
Slide 13: 3.1 Full-year forecast
3.1 Full-year forecast Released IFRS-based forecast; targeting OP growth of 54％ ■ FY2018 ending September 2018 (Unit: million yen; ％ represents change vs. previous year) Cumulative FY2017 FY2018 *2 (million yen) Change Q2 FY2018 (actual) (forecast) (forecast) Revenue 21,054 26,107 +24％ 11,967 Operat
Slide 14: 4. Future actions to implement growth strategies
4. Future actions to implement growth strategies Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 14
Slide 15: 4.1 Business expansion around cashless payment
4.1 Business expansion around cashless payment 2005 2010 2015 2018 2020 2025 2027 Listed on Mothers Autonomy Law REV Local TSE 1st section Listed on the tax hike (8%) Consumption Law REV Banking Sales Act Installment REV Olympics Tokyo Processing Account Receive big businesses and transfer app Smart
Slide 16: 4.2 Payment processing business: customer base diversification
4.2 Payment processing business: customer base diversification Far outpacing market growth by taking in major/growing merchants and expanding businesses with banks Business with banks Service and digital contents ・NHK ・Public due, utilities ・Donation, rent ・Travel, restaurant ・Insurance, education a
Slide 17: 4.3 Payment processing business: processing and smart payment
4.3 Payment processing business: processing and smart payment Drive cashless payments by “acquiring” and “connecting” Acquire Major EC operator Hokkoku Bank Innovative startup Non-EC operator Public office, municipality Bank TAX Connect Service and operator Operator and operator Bank of Fukuoka Serv
Slide 18: 4.4 Payment processing business: card-present payment
4.4 Payment processing business: card-present payment Taking in cashless payment/inbound demand Full-fledged deployment of IoT services EMV and cashless-payment compatible Spread of cashless payments terminals in workplace commerce Embedded EMV terminals with PIN with PIN with PIN without PIN Employ
Slide 19: 4.5 Money Service Business (MSB)
4.5 Money Service Business (MSB) Expanded GMO payment after delivery and ％: Changes vs. Q1/17 segment margin improved J-GAAP IFRS ■ MSB-related assets +48.8％ ■ MSB-related revenue * －23.0％ Revenue －16.2％ Segment profit +56.9％ +13.7％ +90.2％ +99.5％ +68.8％ +34.2％ +43.1％ Transaction lending Early paymen
Slide 20: 4.6 Overseas strategies: Payment enhancement business (MACRO KIOSK)
4.6 Overseas strategies: Payment enhancement business (MACRO KIOSK) Our topline-weighted approach on track toward profit expansion after 2020 Going after scale first, and then profit on track to stretch profit after 2020 Taiwan ＋28.5％ Hong Kong ＋21.3％ ＋9.1％ Thailand Philipines Vietnam 304 296 Malays
Slide 21: 5. Financial highlights
5. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 21
Slide 22: 5.1 Changes in our balance sheet
5.1 Changes in our balance sheet Deposits received and MSB-related assets increased （million yen） Current assets Noncurrent assets Liabilities Net assets Interest-bearing debts Investment （short+long） Deposits MSB-related Other Other Other MSB-related （from merchant representative contracts） Net ass
Slide 23: 5.2 Major KPIs (Quarterly)
5.2 Major KPIs (Quarterly) Annual transaction value reaches ¥3 trillion Operating stores: 86,136; Transaction: ¥770 billion (value), 313 million (volume) 700 (billion yen) （Reference）Transaction value（cumulative 12 months） ¥2.76 trillion (stores) Including GMO Financial Gate ¥2.99 trillion (million)
Slide 24: 6. Reference materials
6. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 24
Slide 25: 6.1 Cost of revenue ratio/SG&A ratio (Quarterly)
6.1 Cost of revenue ratio/SG&A ratio (Quarterly) Cost of revenue ratio changed *Figures with asterisk do not take into account outsourcing expense Not included in SG&A under IFRS from Q1/18 due to sales mix change J-GAAP 6,086 6,098 IFRS (million yen) *50.2％ 6,000 *44.5％ 5,716 *47.2％ 52.7% 5,645 *41
Slide 26: 6.2 Revenue breakdown (Quarterly)
6.2 Revenue breakdown (Quarterly) Revenue of some services recorded in net figure under IFRS (million yen) J-GAAP 2,773 IFRS 2,691* 2,653 2,471 2,500 2,360 2,101 2,004 2,000 1,895 1,809 1,527 1,441 1,500 1,383 1,227 1,259 1,026 959 980 1,000 931 906 929 875 786 ※ 804 794 795 733 612 630 667 749 748
Slide 27: 6.3 Consolidated cash flows
6.3 Consolidated cash flows Positive OCF with earnings and deposit growth 12,000 J-GAAP IFRS ■Cash flow changes in Q1 10,000 OCF: ＋¥9,537 million Pre-tax profit +¥1,585 million 8,000 Changes in trade and other receivables －¥4,054 million 6,000 Changes in operating and other payables ＋¥13,670 million
Slide 28: Thank you very much!
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
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