Gmo Payment Gateway, Inc. · TSE:3769
Gmo Payment Gateway — Q3 FY2018 Earnings Presentation
28 slides from Gmo Payment Gateway's earnings presentation, Aug 10, 2018
Slide 1: Financial results briefing for the Q3 of FY2018
Financial results briefing for the Q3 of FY2018 To raise our corporate value through the cycle of capital raise, investment and growth August 10, 2018 The 54 th 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 August 10, 2018. However, please note that they are subject to change witho
Slide 3: Agenda
Agenda 1. Summary of financial results for Q3 of FY2018 2. Future actions to implement growth strategies 3. Financial highlights 4. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Summary of financial results for Q3 of FY2018
1. Summary of financial results for Q3 of FY2018 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: Summary
1.1 Summary OP up 60.0％ (28.7％ under J-GAAP), 80.2% vs. full-year plan ■Earnings results Q1-3 Actual FY17 Q1-3 FY18 Q1-3 FY18 full- (Million yen) YoY change vs. Full year Actual Actual year plan plan Revenue 15,362 19,122 ＋24.5％ 26,107 73.2% Operating 3,243 5,190 ＋60.0％ 6,475 80.2% profit (3,937) (5
Slide 6: Factors that affected the cumulative results
1.2 Factors that affected the cumulative results Financial statements disclosed under IFRS from Q1 FY2018 Revenue 20,000(Million yen) +24.5％ (+) Online payments grew steadily EC merchants acquired as planned and existing merchants grew 18,000 Non-merchandising EC expansion (service, digital goods, b
Slide 7: Revenue/OP by segment
1.3 Revenue/OP by segment Payment processing profit up 23.6%, MSB turned black ■Revenue by segment ■ OP by segment (before * (): year-on-year changes consolidation adjustment) (Million yen) 20,000 (Million yen) Total: Post-adjustment Total: Pre-adjustment +24.5％ 6,900 +39.7％ 18,000 *Post-adjustment
Slide 8: Segment: Money Service Business (MSB)
1.4 Segment: Money Service Business (MSB) Asset up 40％, enjoyed segment profit with improved margin %: vs. Q1-3 FY17 ■MSB-related assets ■Segment revenue (J-GAAP)* ■Segment profit 874 (Million yen) +24.7％ +40.4％ -28.0％ -23.1％ Affected by +42.2％ a change in bad debt provision +30.8％ rate for particul
Slide 9: Revenue breakdown by business model
1.5.1 Revenue breakdown by business model Fee & Spread grew steadily while stock increased as the business (Million with bank expanded yen) Spread Yoy ＋21.5％ 18,000 ・Online payments grew steadily ・Revenue from a particular merchant dropped (a 16,000 special and one-off factor) 8,159 (Yoy ＋9.4％ in Q3
Slide 10: Revenue breakdown (Quarterly)
1.5.2 Revenue breakdown (Quarterly) Revenue from a particular merchant dropped (a special Quarterly trends of revenue items and one-off factor) * IFRS J-GAAP (Million yen) 2,773 2,801 2,653 2,691 2,666 2,705 2,500 2,471 2,436 2,360 2,101 2,004 2,000 1,895 1,809 1,527 1,500 1,383 1,441 1,227 1,259 1,
Slide 11: 2. Future actions to implement growth strategies
2. Future actions to implement growth strategies Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 11
Slide 12: Capital raise, investment and then growth
2.1 Capital raise, investment and then growth Timely capital raise and business investments for the bigger corporate value Capital raise Investment Growth Listed on TSE Mothers ・System reinforcement ・Established business foundation IPO Apr. 4, 2005 (transition from card payment for high growth conti
Slide 13: Operating profit target for 2020
2.2 Operating profit target for 2020 Expand in 5 areas to deliver JPY 10 billion OP in FY2020 JPY 10 billion Global (target) ・Expansion of services for Operating profit target foreign operators (includes lending) ・MACRO KIOSK expansion Cashless ・Ginko Pay implementation JPY 6.4 billion ・Merchant acq
Slide 14: EC: Measures for the 2025 target
2.3.1 EC: Measures for the 2025 target Aim for a faster growth than EC market with growth measures Growth measures BtoC ①Acquiring of leading companies and innovations ②Actions in response to new payment options ③Innovation by the fusion of existing services BtoB ①Payment among major corporate group
Slide 15: EC: Status of growth measures
2.3.2 EC: Status of growth measures Our online payment business grew 25% to go above our target ■Growth measures ■Online payment (excl. system development, Bank Business and offline payment) ①Acquiring leading companies: Spread Fee Stock Initial (Million yen) The number of merchants with 9,000 ＋25.0
Slide 16: FinTech: Service expansion and margin improvement
2.4 FinTech: Service expansion and margin improvement Use the raised capital to accelerate business growth based on profitability and capital efficiency ■Growth measures ■Asset expansion and margin improvement ①GMO Payment After Delivery expansion Introduction to new merchants Further improvement of
Slide 17: Cashless: Ginko Pay to become an infrastructure
2.5.1 Cashless: Ginko Pay to become an infrastructure Target is to turn Ginko Pay into an infrastructure by adding more banks and connecting with existing services Banks Existing services Power Water Bank of Yokohama Bank of Fukuoka TV subscription Tax Japan Post Bank Resona Group Travel Rent Shinwa
Slide 18: Cashless: New development of Ginko Pay
2.5.2 Cashless: New development of Ginko Pay Put more banks/companies onboard, connect them and be an infrastructure ■Expansion of business with banks ■Japan’s 1st cash out service at train stations with Ginko Pay system Tokyu Corporation, Bank of Yokohama and GMO-PG to start the development of a ca
Slide 19: Cashless: Processing
2.5.3 Cashless: Processing Payment solution delivered to GMO Aozora Net Bank July 2018 Debit card issuing service Brand Issuer Acquirer Business fields in the conventional Payment businesses Consumer Merchant GMO Processing Platform delivered since Oct. 2017 to financial institutions and financial s
Slide 20: IoT: Monetization in offline payment field
2.6 IoT: Monetization in offline payment field Aim for a high growth taking advantage of Installment Sales Act revision, 2020 Tokyo Olympics and others ■Growth measures ■Business plan of FG/GCS ①Terminal replacement demands with Offline market the Installment Sales Act revision Size: JPY60T Mag tape
Slide 21: Global business and FinTech
2.7.1 Global business and FinTech Launch of global lending service in ASEAN and US Annual sales by country (excludes MACROKIOSK) (As of Aug 10, 2018) Work with each country’ top NEW FinTech players using AI US Payment enhancement business Hong Taiwan MACROKIOSK Revenue Kong ＋26.0％ Thailand 3,332 2,6
Slide 22: Global business and FinTech
2.7.2 Global business and FinTech Building assets targeting the foreign markets with high spread margin Lending-related assets home and abroad and interest rates (as of Aug. 10, 2018) Interest rate Assets (％) (Million yen) 12 Lending-related assets 1,000 Interest rate 9～15％ 10 800 Fill in the gap fr
Slide 23: 3. Financial highlights
3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 23
Slide 24: Changes in our balance sheet
3.1 Changes in our balance sheet Increase in MSB-related deposits and assets (Unit: million yen) Current assets Noncurrent assets Liabilities Deposits Net assets Investment (under representative merchant service) Other *2 Net Other MSB-related Others MSB-related assets 45,549 15,461 9,222 End of *1
Slide 25: Major KPIs (Quarterly)
3.2 Major KPIs (Quarterly) Annual transaction value reaches ¥3.3 trillion Operating stores: 93,450; Transaction: ¥860 billion (value), 348 million (volume) (stores) 850 (billion yen) (Reference) Transaction value (past 12 months) ¥3.13 trillion Including GMO Financial Gate ¥3.38 trillion (million 90
Slide 26: 4. Reference materials
4. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 26
Slide 27: Cost of revenue ratio/SG&A ratio (Quarterly)
4.1 Cost of revenue ratio/SG&A ratio (Quarterly) Cost of revenue ratio changed *Figures with asterisk do not take into account outsourcing expense due to sales mix change J-GAAP Not included in SG&A under IFRS from Q1/18 IFRS 6,563 (Million yen) *47.2％ 6,459 *50.2％ 52.7% *44.5％ 6,086 6,098 6,000 50.
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
GMO Payment Gateway — Q3 FY2018 Earnings Presentation on 6ix