Gmo Payment Gateway, Inc. · TSE:3769
Gmo Payment Gateway — FY2015 Earnings Presentation
32 slides from Gmo Payment Gateway's earnings presentation, Nov 2, 2015
Slide 1: Financial results briefing for the 4Q of FY2015
Financial results briefing for the 4Q of FY2015 （ O c t o b e r 1 , 2 0 1 4 - S e p t e m b e r 3 0 , 2 0 1 5 ） Themes：Expand the “Money Service Business” actively, achieve more than 25% profit growth November 2, 2015 The 43 rd IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section
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 November 2, 2015. However, please note that they are subject to change withou
Slide 3: Agenda
Agenda 1. Summary 2. Growth strategy 3. Financial highlights 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: Business Highlights
1.1 Business Highlights With our business expansion, merchants/transactions/projects getting lager. Challenge to a new growth toward next stage Cultivate (win back) large e-commerce merchants within and Growth of our existing business outside Japan Establish a Joint Venture company for payment proce
Slide 6: Summary①
1.2.1 Summary① Good shape in payment processing service and subsidiaries’, and profit contributions from the “Money Service Business” ■ Actual results for the term ending September 2015 (October 2014 to September 2015, consolidated) FY2015 % (Million yen) FY2015 FY2014 % Change (Forecast) Change Sal
Slide 7: Summary②
1.2.2 Summary② Sales are in good shape but operating income in line with initial plans due to the sales increase of high sales-cost ratio services (+) Merchant acquiring service revenue increased +38.4％(YoY) 10,000 Million yen ・Cultivate large e-commerce merchants ・Profit contributions from the “Mon
Slide 8: （Reference）With the start of a new service, changed the timing of sales recognition
（Reference）With the start of a new service, changed the timing of sales recognition From the time of money transferred to the time of a transaction processed Timing of sales New service started The end of the recognition fiscal year July August September October Merchant acquiring service revenue (J
Slide 9: Sales (Quarterly changes)
1.3 Sales(Quarterly changes) 4Q sales marked +37.6％ growth due to the good performance of payment processing service and special factors QonQ +37.6％ ■Sales (1,000 yen） Excluding special factors 2,603,210 +29.7％ 2,500,000 2,264,704 • Sales increase due to 2,204,334 the special factors About ¥149 mill
Slide 10: Income (Quarterly changes)
1.4 Income (Quarterly changes) Operating income up 20.6％, ordinary income up 13.7％ ■Operating income QonQ +20.6％ ■ Ordinary income QonQ +13.7％ （1,000 yen） （1,000 yen） Stock issue expense 812,277 ¥45 million 787,380 Excluding factors below 800,000 800,000 +21.7％ 762,315 772,486 758,080 725,596 700,00
Slide 11: Forecast①
1.5.1 Forecast① Entering to new stage, GMO-PG commit to achieve more than 25% profit growth ■ Priority measures Growth of our existing business ・Cultivate (win back) large e-commerce merchants （Foundation for 20% profit growth） within and outside Japan ・Horizontal expansion of “Tax Credit Card Pay
Slide 12: Forecast②
1.5.2 Forecast② Sales up 26.4％, Operating income up 25.7％ （％:YoY change） （1,000 yen） Sales YoY +26.4％ （1,000 yen） Operating income 12,000,000 4,000,000 YoY +25.7％ 3,500,000 10,000,000 3,000,000 8,000,000 2,500,000 6,000,000 2,000,000 1,500,000 4,000,000 1,000,000 2,000,000 500,000 0 0 Copyright (C)
Slide 13: Forecast③
1.5.3 Forecast③ QonQ Forecast ■ Forecast for the period ending September 30, 2016 （1,000 yen） Sales （1,000 yen） Operating income 1,000,000 3,000,000 2,500,000 800,000 2,000,000 600,000 1,500,000 400,000 1,000,000 200,000 500,000 0 0 FY2013 FY2014 FY2015 FY2016（E) FY2013 FY2014 FY2015 FY2016（E) Copyr
Slide 14: 2. Growth strategy
2. Growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 14
Slide 15: Next growth stage and strategies
2.1 Next growth stage and strategies Overwhelming No.1 in Japan ⇒ No.1 in Asia Now 2000 2010 2020 2030 No.1 in Japan No.1 in ASEAN No.1 in Asia 25％ Growth Global competition Expand our market share 20％ Growth MSB Global business Investment / Strategic alliance Building a business foundation Differen
Slide 16: Strategy 1 “Market targeting strategy” Business and capital partnership
2.2.1 Strategy 1 “Market targeting strategy” Business and capital partnership Establishment of a Joint Venture Company (November 2) SMBC GMO PAYMENT Use of the system SMBC JV Sales resource (Customers) (Newly establish) Payment Payment processing company services Capital stock ： ¥310 million (the fi
Slide 17: Strategy 1 “Market targeting strategy” BtoB Market
2.2.2 Strategy 1 “Market targeting strategy” BtoB Market To promote the use of credit cards for BtoB transactions with four channels strategy Trends of BtoB ratio （%） Amount of processed payments 1.4% Number of operating stores Provision of systems to 1.2% massive corporate families 1.0% “Visa Busin
Slide 18: Strategy 2 “Product strategy” Money Service Business
2.3.1 Strategy 2” Product strategy” Money Service Business “Money Service Business” (MSB） / “FinTech” MSB GMO-PG’s Transaction FinTech service High Lending Early Payment Payment processing service GMO Payment After delivery Profitability GMO Pallet Finance Lease Improve Remittance Service Online adv
Slide 19: MSB-related asset and amount of processed payment
2.3.2 Strategy 2” Product strategy” Money Service Business MSB-related asset and amount of processed payment MSB-related sales MSB-related sales About ¥900 million About ¥1,700 million MSB-related asset About ¥9,000 million MSB-related asset About ¥5,000 million Year-end Amount of processed Year-end
Slide 20: （Remind）Money Service Business
（Remind）Money Service Business To develop businesses in stages STEP1 STEP2 STEP3 STEP4 STEP5 STEP6 Representative Payment due Early payment Transaction Services contract Early payment ×2 Lending twice Upgrade lending （Spread） 2015/8 Upgraded： Merchant can select the due date and payment term The end
Slide 21: Strategy 3 “Business area strategy” Global business
2.4.1 Strategy 3 “Business area strategy” Global business Greater China and ASEAN e-commerce market （Billion yen） EC(BtoC) market 6,779 0.5 7,000 (Taiwan, ASEAN) 兆 円 5,900 The first investment fund in 6,000 Japan dedicated to payment ventures in Asia 5,198 （¥1.5 billion） Now 5,000 GMO-PG’s 4,556 ASE
Slide 22: Achievements in the global business
2.4.2 Strategy 3 “Business area strategy” Global business Achievements in the global business 11.2 times 8.4 times In the past 2 years In the past 2 years Amount of Number of processed payment operating stores October 5, 2015 “Twelve countries have reached a broad agreement in Trans-Pacific Partners
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
Slide 24: 3. Financial highlights
3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 24
Slide 25: Summary of the consolidated results
3.1 Summary of the consolidated results Sales and income exceed the forecast FY2015 FY2014 FY2015(Forecast) （Million yen） Sales Sales Results composition Growth Change Results Composition Foercast Change (%) (%) (%) (%) Sales 9,030 100.0 1,825 +25.3 7,205 100.0 8,656 +4.3 Cost of sales 1,919 21.3 48
Slide 26: Summary of the consolidated balance sheets
3.2 Summary of the consolidated balance sheets ¥4billion capital increase, MSB linked to current assets Results for Results for Results for Results for （Million yen） Change （Million yen） Change FY2015 FY2014 FY2015 FY2014 Current assets 38,469 22,476 15,993 Current liabilities 25,448 17,624 7,823 Ca
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 (¥1,000) y-o-y 1,148,987 Initial revenue + 2.6％ ※Excluding special factors ＋41.7％ Monthly revenue ＋19.2％ 1,000,000 Transaction processing revenue ＋31.1％ 889,917 873,483 Merchant
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 (¥1,000) ※Excluding MSB-related cost 3,000,000 50.2％ 52.7% 51.6% 50.9% 2,603,210 50.0% 45.8% 2,500,000 45.6% 43.5% 43.8% 44.0% 2,264,704 44.4% 42.9% 2,204,334 41.7% 43.2% 40.0% 1,958,642 2,000,000 1,892,030 1,842,
Slide 29: Transition of the major factors
3.5 Transition of the major factors Share of the amount related to merchant acquiring service revenue in the amount of processed payments became 35% Number of operating stores 59,559, /Amount of processed payments ¥410billion, /Number of processed payments 203million Number of Amount of Number of pr
Slide 30: Summary of the consolidated results
3.6 Summary of the consolidated results Forecast 25％ for income growth, Planning ¥22.0 for dividend (¥1,000) ¥22.00 11,413,000 ¥18.00 10,000,000 ※％ yoy ¥15.00 9,030,892 Sales +26.4％ ¥12.25 8,000,000 Operating income +25.7％ ¥9.75 7,205,542 Ordinary income +25.0％ ¥7.75 ¥5.88 Net income +26.0％ ¥5.25 5,
Slide 31: Sales for each segment
3.7 Sales for each segment Action plans to realize the growth in all segments (¥1,000) （%:y-o-y） + 34.2％ ・Cultivate growing merchants ・Service to increase 10,000,000 the merchants’ sales ・Expansion of MSB + 38.4％ such as Transaction lending, Early payment 8,000,000 + 26.7％ ・Cultivating large-scale m
Slide 32: 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 Strategy Division Investor relations office TEL:+81-3-3464-0182