Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q3 FY2015 Earnings Presentation

33 slides from Gmo Payment Gateway's earnings presentation, Jul 30, 2015

  1. Slide 1: Financial results briefing for the 3Q of FY2015

    Financial results briefing for the 3Q of FY2015 （ O c t o b e r 1 , 2 0 1 4 - J u n e 3 0 , 2 0 1 5 ） Themes：Strengthen the management foundation to be able to further accelerate developments for the next ten years July 30, 2015 The 42 nd IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Excha

  2. 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 July 30, 2015. However, please note that they are subject to change without p

  3. Slide 3: Agenda

    Agenda 1. Summary 2. 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

  4. Slide 4: 1. Summary

    1. Summary Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4

  5. Slide 5: Highlight & Lowlight

    1.1 Highlight & Lowlight The positions of our group companies regarding the latest issues ■Business partnership with Sumitomo Mitsui Baking Corporation and issue of new shares by way of third-party allotment ・Establish a joint venture company that will provide credit card payment processing services

  6. Slide 6: FinTech

    1.2 FinTech Our efforts in FinTech field Factors of expansion 【External factors】 ＜Changes brought by FinTech＞ ・Significant improvements of the price-performance ratio ・Credit risk reduction of computing resources ・Decrease in loan fees ・Evolution of technology (AI) ・Lowering in remittance fees ・Entr

  7. Slide 7: Summary

    1.3 Summary Continuing good shape, increased income and revenue over 20%, net profit progression rate of 80.9% YoY* Progress Summary of the consolidated results % Increase ■Sales： 6,427Million Yen （+21.0％ / 74.3%） ■Operating income： 2,300Million Yen （+20.1％ / 77.3％） ■Ordinary income： 2,317Million Ye

  8. Slide 8: Sales

    1.4 Sales Good shape in payment processing service and subsidiaries’, sales up 24.1％ ■Sales （1,000 yen） +24.1％ • Payment processing service 2,500,000 Transaction processing revenue 2,264,704 +29.6％ Payment system development sales 2,204,334 Merchant acquiring service revenue ¥40Million +29.1％ 2,000,

  9. Slide 9: Operating/Ordinary income

    1.5 Operating/Ordinary income Operating income up 20.2％, ordinary income excluding stock issue expenses up 21.5% ■Operating income +20.2％ ■ Ordinary income +15.0％ （1,000 yen） （1,000 yen） Excluding stock 812,277 787,380 issue expenses 800,000 762,315 800,000 772,486 ¥832.6M 758,080 （+21.5％） 725,596 7

  10. Slide 10: Sales (PG・EP・PS・FG)

    1.6.1 Sales（PG・EP・PS・FG） Group companies showed good shape, GMO Payment Service is driving forces behind the increased consolidated sales （1,000 yen） PG：GMO payment gateway EP：GMO Epsilon 5,000,000 +17.8％ ※19.0％ increase except payment PS：GMO Payment Service(GMO Payment after delivery) system develo

  11. Slide 11: Ordinary income (PG・EP・PS・FG)

    1.6.2 Ordinary income（PG・EP・PS・FG） The effects of investment, generating profits little by little （1,000 yen） PG：GMO payment gateway Sales-cost ratio -0.3％ +24.5％ ・Economies of scale and DC EP：GMO Epsilon PS：GMO Payment Service(GMO Payment after delivery) integration effect FG：GMO Financial Gate（for

  12. Slide 12: 2. Growth strategy

    2. Growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12

  13. Slide 13: Targeted growth line and strategies

    2.1 Targeted growth line and strategies To aim at profit growth of “20%+α” by accelerating growth with recapitalization 20％+α growth line Strategy 3 Long-Term “Business area strategy” Strategy 3 Asian market etc 20％ growth line Strategy 2 Mid-Term ” Product strategy” MSB etc Strategy 1 Strategy 2 Sh

  14. Slide 14: Strategy 1 Market targeting strategy: Broad definition EC market

    2.2.1 Strategy 1 “Market targeting strategy” Broad definition EC market Spreading e-commerce is our growth opportunity BtoB BtoC CtoC Enormous market Narrow definition Developing market potential BtoC-EC market ¥1 trillion ¥1,000trillion ¥12 trillion Growing at an annual rate of 10~15% Online Flea m

  15. Slide 15: Strategy 1: Establish a Joint Venture company

    2.2.2 Strategy 1 “Market targeting strategy” Establish a Joint Venture company To provide our services to merchants of the joint venture which will be established jointly with SMBC Capital and Business Partnership Capital Business (approx. ¥4bn) partnership Capital (approx. ¥4bn) Capital Capital JV

  16. Slide 16: Strategy 1: BtoB Market

    2.2.3 Strategy 1 “Market targeting strategy” BtoB Market To promote the use of credit cards for BtoB transactions with four channels strategy ¥1,000trillion Trends of BtoB ratio （%） Amount of processed payments Channel 1： 1.4% Number of operating stores Provision of systems to massive corporate Ente

  17. Slide 17: Strategy 2 Product strategy: MSB

    2.3.1 Strategy 2” Product strategy” MSB To develop businesses in stages STEP1 STEP2 STEP3 STEP4 STEP5 Representative Payment due Transaction Services Early payment ×2 Lending contract twice lending （Spread） 2015/8：Offering optimal payment cycle The end of The end of Due date Twice ー ー the month the

  18. Slide 18: MSB (Representative contract model)

    2.3.2 Strategy 2” Product strategy” MSB (Representative contract model) To realize the expansion into financial businesses with money flow derived from the representative contract model Consumer Merchant GMO-PG group Business related ①②③ Credit card companies Revenue model (Segment) ① Initial revenu

  19. Slide 19: MSB (Definition)

    2.3.3 Strategy 2” Product strategy” MSB (Definition) Services only payment processing agencies can provide Consumer Merchant GMO-PG group Business related GMO-PG Remittance Service（③） Efficient and secure refund and remittance processing for e-commerce operators Transaction lending（④） Financing mone

  20. Slide 20: MSB (Early payment service)

    2.3.4 Strategy 2” Product strategy” MSB (Early payment service) Improving cash flows by moving up the date of payment Marchants can select the number of payment due, due date and payment term from predefined number of times and date for each payment methods Offering optimal payment cycle to meet the

  21. Slide 21: Strategy 3 Business area strategy: Asian market①

    2.4.1 Strategy 3 “Business area strategy” Asian market① EC market in Asia is larger than North America, ASEAN grows fast Billion US$ Global Billion US$ Billion USD ASEAN & Japan Billion US$ (Global) 1,000 (ASEAN) (ASEAN) 40 200 (Japan) 800 30 150 600 20 100 400 10 50 200 0 0 0 2013 2014 2015 2016 20

  22. Slide 22: Asian market②: progress of our global strategy

    2.4.2 Strategy 3 “Business area strategy” Asian market② The progress of our global strategy Hong Kong GMO-PG Global Payment Taiwan GMO Global Payment Fund(GPF) GMO-PG×GMO-VP Myanmar Laos Thailand Viet Nam Philippines Cambodia Malaysia Our oversea entities Singapore Classification based on the follow

  23. Slide 23: Portfolio of income (Image)

    2.5 Portfolio of income（Image） Growing with the target of the ordinary income of 10 billion yen around the fiscal year 2020 as a passing point The products that contribute to our company’s business and the profitable growth (Speech balloon) Payment processing service etc “Multi-Payment Service” ■ Pa

  24. Slide 24: 3. Financial highlights

    3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 24

  25. Slide 25: Summary of the consolidated results

    3.1 Summary of the consolidated results Sales and income up over 20％, OP margin up 0.3 point FY2015 3Q FY2014 3Q FY2015 （Million yen） Sales Sales Results Growth Change Results Forecast Progress composition Composition Sales 6,427 100.0 % 1,114 +21.0 % 5,313 100.0 % 8,656 74.3 % Cost of sales 1,366 2

  26. Slide 26: Summary of the consolidated balance sheets

    3.2 Summary of the consolidated balance sheets ¥4billion capital increase through third-party allotment Results for Results for Results for Results for （Million yen） 3Q, FY2015 3Q, FY2014 Change （Million yen） 3Q, FY2015 3Q, FY2014 Change Current assets 39,868 22,967 16,900 Current liabilities 26,895

  27. Slide 27: Sales results for each segment

    3.3 Sales results for each segment Transaction processing revenue and merchant acquiring service revenue are in good shape. Initial revenue up 17.2% (¥1,000） y-o-y 889,917 900,000 873,483 Initial revenue +17.2％ 800,000 Monthly revenue ＋12.8％ 752,202 Transaction processing revenue ＋29.6％ 705,327 689,

  28. Slide 28: Cost of sales ratio/SG&A ratio

    3.4 Cost of sales ratio/SG&A ratio The sales-cost ratio increased due to the sales mix, but remain highly profitable by the various management measures （¥1,000） 2,500,000 53.2% 51.6% 2,264,704 50.9% 2,204,334 50.0% 45.8% 45.6% 1,958,642 2,000,000 43.9% 44.4% 44.0% 42.9% 43.8% 43.2% 43.5% 1,892,030 1

  29. Slide 29: Transition of the major factors

    3.5 Transition of the major factors Share of the merchant acquiring service revenue in the amount of processed payments became 35% Number of operating stores 57,569, /Amount of processed payments ¥440billion, /Number of processed payments 204million Number of Amount of operating 4,000 processed paym

  30. Slide 30: 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. 30

  31. Slide 31: Summary of the consolidated results (Forecast)

    4.1 Summary of the consolidated results (Forecast) Repeat operating income growth rate forecast 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,

  32. Slide 32: 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％ + 22.8％ + 36.4％ + 17

  33. Slide 33: 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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