Slide 1: Financial Results Briefing for FY2024
Financial Results Briefing for FY2024 Achieved the FY2025 OP target of ¥25.0bn one year in advance; Aim for OP CAGR 25% growth November 13, 2024 79th Investor Meeting
Slide 2: Safe Harbor Statement for Forward Looking Statements
Safe Harbor Statement for Forward Looking Statements The contents of this document is based on generally recognized economic and social conditions, as well as certain assumptions judged to reasonable by GMO Payment Gateway as of November 13, 2024. Please note that the contents are subject to change
Slide 3: Agenda
Agenda 1. Summary of Financial Results for FY2024 2. FY2025 Earnings Guidance 3. Growth Strategy and Initiatives in Focus Areas 4. Sustainability 5. Financial Highlights and Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Summary of Financial Results for FY2024
1. Summary of Financial Results for FY2024 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: 1.1 Summary of Consolidated Results
1.1 Summary of Consolidated Results Revenue up 16.9%, OP up 24.0% and in line, dividends increased by ¥21 versus plans FY2024 FY2023 FY2024 Q4 FY2024 （¥ mil） % YoY Guidance Full year results Full year results (% YoY) (Progress ratio) 73,286 19,588 Revenue 63,119 73,785 +16.9% (100.7%) (+21.5%) 45,49
Slide 6: 1.2 FY2024 Wrap-up
1.2 FY2024 Wrap-up All consolidated subsidiaries make progress in strengthening business foundation Highlights “Low”lights (→ Addressed) ・Revenue & OP achieved plans Consol. Reached 2025 OP target of ¥25.0 bn one year earlier ・Received new issuer rating of “A-” from R&I ・Online GMV up +14.0% YoY ・No
Slide 7: 1.3 Waterfall Chart for Consol. OP and Pre-tax Profit
1.3 Waterfall Chart for Consol. OP and Pre-tax Profit (YoY, Annual) OP grew 24.0% from increase in gross profit and decline in provisioning for doubtful accounts OP waterfall chart*1 Pre-tax Profit Waterfall Chart*1 （¥ mil） （¥ mil） % YoY +24.0% % YoY +33.3% GP SGA Other Other OP Financial Financial
Slide 8: 1.4 Waterfall Chart of Consol. TRX Value (YoY, Annual)
1.4 Waterfall Chart of Consol. TRX Value (YoY, Annual) Nearing ¥20 trn mark by achieving above-market growth for online and CP payments CP Online payment GMO-PG +14.0% Consol. +25.5% payment *1 Market stats +9.1% （% YoY） Non-merchandise EC Merchandise EC （¥ trn） GMO-PG +52.9% +17.4% +7.9% Market sta
Slide 9: 1.5.1 GMO-PG Non-Consolidated Performance (YoY, Q4)
1.5.1 GMO-PG Non-Consolidated Performance (YoY, Q4) Revenue grew 21.5%, online payment revenue grew 22.3% GMO-PG non-consolidated revenue & OP (Quarterly) *1 % YoY （¥ mil） Q4 FY2023 Q3 FY2024 Q4 FY2024 Merchandise EC revenue Revenue Non-merchandise EC revenue Revenue*1 +14.2% +17.9% +21.5% BaaS Supp
Slide 10: 1.5.2 Performance of GMO-EP, GMO-PS and GMO-FG
1.5.2 Performance of GMO-EP, GMO-PS and GMO-FG (YoY, Quarterly & Annual) Profit contribution expanded from each company: EP+5.2%, PS 6x, FG +35.2% (annual) Consol. GMO-EP (Quarterly)*1*2 GMO-PS (Quarterly)*2 Consol. GMO-FG (Quarterly)*1*3 (% YoY） Q4 FY2024 FY2024 Full Yr Q4 FY2024 FY2024 Full Yr Q4
Slide 11: 1.6 Revenue by Business Model (YoY, Annual)
1.6 Revenue by Business Model (YoY, Annual) Stock and fee each grew over 20%, spread growth rate improved to 16.3% % YoY Factors* (¥ mil) 73,785 FY2023 FY2024 70,000 Spread +14.7% +16.3% ＋ Online payment (GMO-PG) 63,119 ＋ Overseas lending 60,000 28,525 ＋ CP payment － Payment after Delivery 50,000 24
Slide 12: 1.7 Segment Results (YoY, Annual)
1.7 Segment Results (YoY, Annual) MSB profits increased 49.2% from the normalization of credit costs Segment revenue* Segment profit/loss* % YoY % YoY FY2023 FY2024 FY2023 FY2024 (¥ mil) (¥ mil) +25.5% +16.9% +25.0% +24.0% 30,000 70,000 +21.9% +31.3% +65.6% +29.4% + GMO-MR +54.7% + GMO-MR 25,000 60,
Slide 13: 2. FY2025 Earnings Guidance
2. FY2025 Earnings Guidance Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 13
Slide 14: 2.1 Earnings Guidance for FY2025
2.1 Earnings Guidance for FY2025 Guiding revenue growth 13.0% and OP growth 20.0% Earnings guidance for FY2025 (¥ mil) FY2024 FY2025 Forecast % YoY Revenue 73,785 83,377 +13.0% 2.2 Gross profit 48,103 52,319 +8.8% 2.2 OP 25,187 30,225 +20.0% Pre-tax Profit 27,504 28,722 +4.4% excl. special factors*
Slide 15: 2.2 Assumptions of FY2025 Guidance
2.2 Assumptions of FY2025 Guidance Guidance excludes optimism while baking in risks; revenue growth expected to recover next FY Assumptions for revenue growth of +13.0% Assumptions for gross profit growth of +8.8% FY2026 outlook Guidance ・Impact from specific merchant (% YoY) ≒20% (¥ mil) +13.0% ・Pa
Slide 16: 3. Growth Strategy and Initiatives in Focus Areas
3. Growth Strategy and Initiatives in Focus Areas Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 16
Slide 17: 3.1.1 Management Targets
3.1.1 Management Targets Achieved 2025 OP target one year earlier; OP CAGR 25% target remains unchanged Operating profit: actual and targets* (¥ bn) 2025 Management target (announced in 2018) Medium-term management target (announced in 2023) 60 OP of over ¥25.0 bn OP CAGR CAGR25% growth Single year
Slide 18: 3.1.2 Expansion of Business Domains and Drilling-Down of Existing Business Domains
3.1.2 Expansion of Business Domains and Drilling-Down of Existing Business Domains Making inroads to enterprise/infrastructure clients and collaboration with international brands (upstream) Initiatives to expands business domain in the credit card industry Obtained acquiring license for VISA/Masterc
Slide 19: 3.1.3 Market Opportunity
3.1.3 Market Opportunity Unlock the potential for EC market expansion through co- creation with key players in each domain EC penetration rate in developed countries*1 （％） UK GMO-PG’s strategy to raise EC penetration USA 30.0 Japan 1. Low EC-users of high age bracket 26.6 UK JPN 25.0 Elderly EC usag
Slide 20: 3.1.4 Evolution of the Ecosystem
3.1.4 Evolution of the Ecosystem Evolving the ecosystem enhances acquisition of large clients, which in turn further expands payments and EC penetration rate Payment Credit card payment Multi- Payment Early Payment CP payment Online Expand payments advertising Customer service Payment After Promote
Slide 21: 3.1.5 Infrastructure Domain
3.1.5 Infrastructure Domain Online and CP business to benefit from expanding defensive sectors tied to everyday life Revenue from infrastructure domain Utility Insurance Rent After 2020 Medical & Mobility Ride Share 3.7x fold increase Medical/Aged care in 4 years Education Medical reservation & Publ
Slide 22: 3.1.6 Addressable Market
3.1.6 Addressable Market Driving the further expansion of the ¥178 trn addressable market CP cashless 2021 ¥112 trn 2018 Progress in cashless adoption Broader EC incl. non-merchandise ¥60 trn 2010 Digitalization of payment GMO-PG 3.2.1 GMO-FG 3.5 BtoE (salary prepayment) GMO-EP 3.3 ¥27.0 bn 2006 Div
Slide 23: 3.2.1 Non-consolidated GMO-PG
3.2.1 Non-consolidated GMO-PG Raise next FY’s growth rate through ① expanding industry- specific PFs and ② strengthening products Conditions to sustain revenue growth Size of target market ・Enlarging of project sizes & improvement of sales BtoB(inter-company Broader EC incl. non-merchandise ¥60 trn*
Slide 24: 3.2.2 Non-consol. GMO-PG: Example of Product Strengthening
3.2.2 Non-consol. GMO-PG: ② Example of Product Strengthening Promoting inter-company card payments as the exclusive partner for AMEX Collaborate with AMEX for inter-company payments Launched in Oct. 2024: Inter-company Offer GMO-PG’s “Invoice Card Pay byGMO” to Operational efficiency, payments impro
Slide 25: 3.3 Consolidated GMO-EP
3.3 Consolidated GMO-EP Recovery in growth rate continues driven by non-merchandise domain and medical sectors Conditions for sustaining revenue growth Size of target market ・Expand non-merchandise and B2B domains SME B2C EC market*1 Medical DX market*2 ・Establish vertical business model in medical
Slide 26: 3.4.1 Expansion of FinTech
3.4.1 Expansion of FinTech OP grew 49.2% from margin improvement in Payment After Delivery and overseas lending FinTech revenues and profit/loss Instant Salary byGMO revenue*2 (¥ Mil) % YoY 2-yr CAGR 18,000 Total revenue +98.4% +16.8% ・Making inroads into 16,000 short-duration +90.3% employment mark
Slide 27: 3.4.2 GMO-PS
3.4.2 GMO-PS Raise next FY growth rates by entering new markets with Pay On Credit and BNPL Conditions for sustaining revenue growth Business portfolio and strategy ・Expand Pay On Credit and BNPL as next pillar of BNPL growth ・Enter non-merchandise ・Further advance credit management domain Pay on Cr
Slide 28: 3.5 Consol. GMO-FG
3.5 Consol. GMO-FG Aim for market share expansion in the vast market by leveraging solution assets Conditions for sustaining revenue growth Size of target market 2027 ¥167 trn ・Make inroads into large group companies ・Improve ARPU and expand recurring-model revenue CP cashless*1 IoT & FY2025 Revenue
Slide 29: 3.6.1 Global
3.6.1 Global Aim for OP CAGR 25~30% growth by capturing overseas growth opportunities Market size of overseas MSB * Conditions for sustaining revenue growth (Gross interest income from lending FinTech) ・Further advance loan screening and management FY2024 FY2029 ・Continue exploring for 2nd and 3rd a
Slide 30: 3.6.2 Global Business Development/Investment Strategy
3.6.2 Global: Global Business Development/Investment Strategy Investments into Payment FinTech by leveraging the weak investment environment Investment over the past year Total equity investment approx. ¥3.5 bn Trade payment Bill Payment market market TA: ¥529 trn*2 Payment TAM: ¥68 trn*3 Financial
Slide 31: 4. Sustainability
4. Sustainability Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 31
Slide 32: 4. FY2024 Review: Sustainability Management
4. FY2024 Review: Sustainability Management New Achievements NEW in 4Q (July–September) Enhanced sustainability management in FY2024 Environment Social Governance ・Realized carbon neutrality in FY2023 Acquired multiple external evaluations Promoting engagement through by reaching effectively zero em
Slide 33: 5. Financial Highlights and Reference Materials
5. Financial Highlights and Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 33
Slide 34: 5.1.1 Consolidated Balance Sheet
5.1.1 Consolidated Balance Sheet Increase in merchant deposits and MSB related assets due to scaling up of business Assets Liabilities and Equity (¥ mil) Cash (¥ mil) 350,000 corresponding to 344,702 350,000 344,702 deposits received from merchants 300,000 292,346 300,000 292,346 273,407 273,407 120
Slide 35: 5.1.2 Major Consolidated Financial Indicators (Annual Trend)
5.1.2 Major Consolidated Financial Indicators (Annual Trend) Managing business while balancing profitability, capital efficiency and capital base J-GAAP IFRS （¥ bn） Third party allotment Issued Euro Yen Euro Yen CB Due 2026 45% 400 Raised ¥8.0bn CB Due 2023 Raised ¥21.1 bn Raised ¥17.5 bn 40% Euro Y
Slide 36: 5.2.1 Consolidated Revenue and Operating Profit (Quarterly)
5.2.1 Consolidated Revenue and Operating Profit (Quarterly) Consol. revenue Consol. operating profit （¥ mil） （¥ mil） 25,000 10,000 20,000 8,000 15,000 6,000 10,000 4,000 5,000 2,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 11,857 12,201 12,897 13,341 FY2022 4,116 4,159 4,511 3,461 FY2023 14,813 15,641 16,
Slide 37: 5.2.2 Waterfall Chart of Consolidated Revenue (YoY, Full year)
5.2.2 Waterfall Chart of Consolidated Revenue (YoY, Full year) CP recurring revenue, BaaS support, overseas companies drove consol. revenue growth of 16.9% YoY （% YoY） Consol. GMO-PG*3 Consol. Overseas Consol. （¥ bn） GMO-FG*1*2 GMO-PS*3 GMO-EP*1*3 companies*3 17.6% +17.1% +16.3% +10.1% +67.1% +16.9%
Slide 38: 5.2.3 Waterfall Chart of Consolidated Revenue (YoY, Q4)
5.2.3 Waterfall Chart of Consolidated Revenue (YoY, Q4) Consol. revenue grew 21.5% driven by PG and FG Consol. GMO-PG*3 GMO-PS*3 Consol. Overseas Consol. （% YoY） GMO-FG*1*2 GMO-EP*1*3companies*3 （¥ bn） +30.9% +21.5% +13.8% +11.3% +38.1% +21.5% 20 ¥19.5 bn Other Payment After Delivery Deceleration of
Slide 39: 5.3 BaaS Support (Annual Trend) and CP payment revenue
5.3 BaaS Support (Annual Trend) and CP payment revenue Ginko Pay base system and processing PF revenue*1 Consol. GMO-FG revenue by business model*2 FY2024 % YoY (¥ mil) % YoY 8,000 % YoY 銀行Pay 基盤システム 14,000 Ginko Pay base system アクワイアリング支援（プロセシングPF） Acquiring support (Processing PF) Total Initial Re
Slide 40: 5.4 Global: Earnings Summary
5.4 Global: Earnings Summary Revenue grew 37.3% (incl. weak yen effect) by accelerating building up a high-quality portfolio Revenue and operating profit Loan balance (end-Sep) Earnings highlight （¥ mil） % YoY （¥ mil） % YoY 2,000 Overseas High growth from new and +37.3% 20,000 +29.6% loans existing
Slide 41: 5.5 Consolidated Revenue by Business Model (Quarterly)
5.5 Consolidated Revenue by Business Model (Quarterly) （¥ mil） 7,424 7,222 6,988 6,889 7,000 6,265 6,057 6,025 6,171 6,000 5,702 5,371 5,415 5,296 5,297 5,267 5,292 5,093 5,000 4,808 4,773 4,665 4,707 4,731 4,311 4,430 4,257 4,000 3,840 2,408 2,764 3,098 3,536 3,395 3,392 2,922 3,363 3,278 2,288 2,7
Slide 42: 5.6 Segment Results (YoY, Quarterly)
5.6 Segment Results (YoY, Quarterly) MSB profits increased 77.2% from the normalization of credit Segment revenue* Segment profit/loss* % YoY % YoY Q4 FY2023 Q4 FY2024 Q4 FY2023 Q4 FY2024 (¥ mil) (¥ mil) +20.8% +21.5% +24.0% +32.1% 20,000 +40.2% +40.6% 7,000 +2,034.1% +16.8% 6,000 15,000 +23.7% +15.
Slide 43: 5.7.1 FinTech Related Asset (Quarterly Trend)
5.7.1 FinTech Related Asset (Quarterly Trend) FinTech related asset （¥ mil） 120,000 100,000 % YoY +12.1% 80,000 60,000 -6.6% 40,000 20,000 +29.6% 0 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 FY2021 FY2021 FY2021 FY2021 FY2022 FY202
Slide 44: 5.7.2 FinTech Revenue and Profits (Quarterly Trend)
5.7.2 FinTech Revenue and Profits (Quarterly Trend) FinTech revenues and profit （¥ mil） 4,000 % YoY 3,500 ＋16.7% 3,000 2,500 2,000 ＋12.4% 1,500 1,000 ＋77.2% 500 -12.7% ＋15.3% 0 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q 24/1Q 24/2Q 24/3Q 24/4Q Domestic lending Overseas l
Slide 45: 5.8.1 Consolidated CoS and SG&A Ratio (Quarterly Trend)
5.8.1 Consolidated CoS and SG&A Ratio (Quarterly Trend) Cost of sales ratio fluctuates depending on revenue mix (¥ mil) 20,000 19,588 18,313 18,096 17,785 50.0% 18,000 16,546 16,118 15,641 16,000 40.9% 39.6% 14,813 38.5% 40.0% 37.5% 12,201 37.2% 37.0% 36.6% 14,000 12,897 36.0% 34.8% 34.6% 13,341 35.
Slide 46: 5.8.2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly Trend)
5.8.2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly Trend) CoS ratio trending stably for online payment business (¥ mil) 11,449 10,681 10,511 10,158 50.0% 10,000 9,564 9,219 9,177 9,083 41.2% 8,498 39.7% 40.0% 7,977 8,000 7,682 7,906 36.6% 33.3% 7,122 40.7% 34.1% 34.2% 6,858 6,878 6,709 31.6% 32.5% 32
Slide 47: 5.9.1 Operating Stores, TRX Volume and Value
5.9.1 Operating Stores, TRX Volume and Value Consol. TRX value reaches approx. ¥18.7 trn for the past 12 months Operating TRX Volume*2*3 TRX Value*2 Stores*1/Terminals*2 End-Q4 FY2024 Q4 FY2024 Past 12-mnth Q4 FY2024 Past 12-mnth - 1.98 bn 7.40 bn ¥4.9 trn ¥18.7 trn Consolidated % YoY - +18.4% +19.3
Slide 48: 5.9.2 Waterfall Chart of Consol. TRX Value (YoY, Q4)
5.9.2 Waterfall Chart of Consol. TRX Value (YoY, Q4) TRX value increased by ¥1 trn YoY from above-market growth in CP and online domains CP Online payment GMO-PG +16.7% Consol. +26.1% payment *1 Market stats +7.1% （% YoY） Non-merchandise EC Merchandise EC （¥ trn） GMO-PG +44.2% +21.7% +6.9% Market st
Slide 49: 5.9.3 Distribution of Major Sectors (Q4)
5.9.3 Distribution of Major Sectors (Q4) Balance both stability and growth through sector diversification Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)* Revenue (Based on actual figures for Q4 FY2024) proportion The size of the circle represents the TRX value 30% 2
Slide 50: 5.10.1 Consolidated Cash Flow Statement (Cumulative)
5.10.1 Consolidated Cash Flow Statement (Cumulative) （¥ mil） FY2024 full year (¥ mil) 50,000 Operating CF ： +49,472 Pretax profit +27,504 Deprec. & Amort. +3,347 Gain from sale of equity 40,000 method affiliate -1,629 Trade and other receivables -5,808 Advances paid +2,863 30,000 Accrued revenues -4
Slide 51: 5.10.2 Major Factors Affecting Consolidated Cash Flow Statement
5.10.2 Major Factors Affecting Consolidated Cash Flow Statement Related liabilities & assets Impact from business expansion Payment Processing Business Sales proceeds of Deposits received Liability Operating CF merchants under the (liability) Yearly fluctuations can be large as annual TRX value of R
Slide 52: 5.11 Consolidated EBITDA and EBITDA Margin (Quarterly)
5.11 Consolidated EBITDA* and EBITDA Margin (Quarterly) （¥ mil） 8,000 100.0% 7,720 7,633 90.0% 7,000 6,594 6,588 6,289 80.0% 6,000 5,853 5,657 70.0% 5,060 4,932 5,000 4,612 4,688 60.0% 4,042 4,000 50.0% 42.7% 41.7% 38.9% 38.4% 39.2% 38.2% 37.4% 38.0% 37.1% 40.0% 3,000 33.6% 30.3% 30.6% 30.0% 2,000 2
Slide 53: Thank You Very Much
Thank You Very Much GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange Prime) For inquiries or requests for 1-on-1 interviews, please contact the IR Department, Corporate Value Creation Strategy Division, at the telephone number below: TEL ： +81-3-3464-0182 E-mail ： ir-contact@gmo-pg.com IR Websi