Gmo Payment Gateway, Inc. · TSE:3769
Gmo Payment Gateway — Q2 FY2018 Earnings Presentation
29 slides from Gmo Payment Gateway's earnings presentation, May 11, 2018
Slide 1: Financial results briefing for the Q2 of FY2018
Financial results briefing for the Q2 of FY2018 Laying the groundwork for the next growth stage May 11, 2018 The 53 rd 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 May 11, 2018. However, please note that they are subject to change without
Slide 3: Agenda
Agenda 1. Summary of financial results for Q2 of FY2018 2. Full-year target for FY2018 3. Management target and requirements 4. Future actions to implement growth strategies 5. Financial highlights 6. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Summary of financial results for Q2 of FY2018
1. Summary of financial results for Q2 of FY2018 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: Business performance
1.1 Business performance OP +51.8％ (+31.4％ under J-GAAP), TRX value +32.3％ H1 FY18 H1 FY17 H1 FY18 YoY H1 FY18 plan (million yen) actual vs. plan actual actual change ＜full-year plan＞ ＜vs. full-year plan＞ Revenue 10,028 12,558 ＋25.2％ 11,967 104.9％ ＜26,107＞ ＜48.1％＞ Operating 2,153 3,269 ＋51.8％ 3,011
Slide 6: Factors that affected the cumulative results
1.2 Factors that affected the cumulative results Financial statements disclosed under IFRS from Q1 FY2018 (million yen) +25.2％ Revenue 12,000 ・Major Ecommerce merchants grew ・Expanded business areas besides merchandising Ecommerce 11,000 (service, digital goods, business with banks, etc.) 10,000 ・GM
Slide 7: Revenue/OP by segment
1.3 Revenue/OP by segment Payment processing profit up 20%+ (net), MSB turned black ■ OP by segment (before ■Revenue by segment * ( ): YoY change consolidation adjustment) Total: +25.2% after Total: +33.5% before adjustment adjustment 22 （-88.2％） 12,000 (＋51.8％ before adjustment) ・MK’s foreign excha
Slide 8: Segment: Money Service Business (MSB)
1.4 Segment: Money Service Business (MSB) Asset +44.5%, MSB returned to profitability with better margin *( ): H1 FY18/H1 FY17 ■ MSB-related assets ■ MSB-related revenue J-GAAP IFRS ※ +50.0％ +44.5％ －25.7％ Revenue －21.0％ Segment profit +27.1％ +35.5％ +72.4％ +115.4％ +15.2％ ＋23.0％ +43.6％ 2017/3 2018/3 F
Slide 9: Revenue breakdown by business model
1.5 Revenue breakdown by business model Fee and spread solid with higher transaction value and volume (million yen) 12,000 Spread YoY ＋28.3％ ・Solid payment processing business ・GMO payment after delivery TRX value up 10,000 5,492 4,280 Fee YoY ＋35.6％ 8,000 ・Solid payment processing business ・GMO pay
Slide 10: 2. Earnings target for FY2018
2. Earnings target for FY2018 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 10
Slide 11: Full-year forecast
2.1 Full-year forecast Released IFRS-based forecast; targeting OP growth of 64％ ■ FY2018 ending September 2018 (Unit: million yen; ％ represents change vs. previous year) FY2017 FY2018 H1 FY2018 (million yen) Change*2 (actual) (forecast) (forecast) Revenue 21,054 26,107 +24％ 11,967 Operating profit 3
Slide 12: Consolidated earnings transitions
2.2 Consolidated earnings transitions Expecting a JPY49 DPS for the current period ¥49.00 J-GAAP IFRS (million yen) 26,107 25000 Forecast vs. Prev. year results ¥40.00 Revenue +24％ 21,054 Operating profit +64％ 20000 Profit ＋62％ ¥27.00 15000 10000 ¥18.00 ¥15.00 ¥12.25 6,475 ¥9.75 5000 ¥7.75 3,948 3,9
Slide 13: 3. Management target and requirements
3. Management target and requirements Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 13
Slide 14: Management target and requirements
3.1 Management target and requirements Guarantee 25%+ growth continuation by covering the 5 areas Manageme Guarantee continuation of 25%+ consolidated OP growth nt target Market REV Installment Advancement of Tokyo Olympics Cashless vision REV Banking Act Domestic GDP environment Sales Act technolog
Slide 15: 4. Future actions to implement growth strategies
4. Future actions to implement growth strategies Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 15
Slide 16: Operating profit target for 2020
4.1 Operating profit target for 2020 Expand in 5 areas to deliver JPY 10 billion OP in FY2020 JPY 10 billion (target) 4.6 Operating profit target Global Cashless 4.5 IoT 4.4 JPY 6.4 billion Fintech 4.3 (plan) “guaranteeing 25％+ profit growth continuation” EC 4.2 2005 2006 2007 2008 2009 2010 2011 20
Slide 17: EC: Deliver 20%+ profit growth continuation
4.2 EC: Deliver 20%+ profit growth continuation Acquire and connect “winners”, and put non-B2C EC payments online Profit target Target 20%+ growth Market outlook Present 2020 * EC rate 5.8％ 7～8％ EC market ¥16.5T ¥22-24T TRX value ¥3T EC market expected to *2020 figures are our estimates grow by 10％
Slide 18: FinTech: MSB profit expansion
4.3 FinTech: MSB profit expansion MSB margin improvement and acceleration of business expansion while monitoring capital efficiency Profit target Market outlook Present 2020 * Credit payment ¥400B ¥1-1.2T market MSB balance ¥43.4B *2020 figure is our estimate Our initiative and strategies ¥583 milli
Slide 19: IoT: Seize chances for growth acceleration
4.4 IoT: Seize chances for growth acceleration IC terminal replacement on law revision and Tokyo Olympics Profit target Market outlook Present 2020 * Offline Cashless market ¥58T ¥87T Total of credit, debit and prepaid cards *2020 figure is our estimate Our initiative and strategies ●Replacement dem
Slide 20: Cashless: Expanding business with banks
4.5 Cashless: Expanding business with banks Acquire banks, connect services and be their infrastructure ■Advantages of connecting banks No. of merchants under Ginko Pay ・Accelerates data accumulation Bank (Registration base) ・Delivers peripheral services (Lending, remittance, etc.） ・Optimizes credit
Slide 21: Global: Focal businesses in Asia
4.6 Global: Focal businesses in Asia Optimize approaches by country ■Strategy portfolio by country (Asia) * Main GDP Dev Country Approach investment/business (Trillion yen) stage Portfolio Payment processing (Assist JPN companies with TW Taiwan 60 Late entry) Payment enhancement (Acquisition of bank
Slide 22: 5. Financial highlights
5. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 22
Slide 23: Changes in our balance sheet
5.1 Changes in our balance sheet Increase in MSB-related deposits and assets (Unit: million yen) Current assets Noncurrent assets Liabilities Deposits Net assets (under representative merchant service) Investment *2 Other MSB-related Other ※1 Other MSB-related Net assets 45,549 15,461 9,222 End of 3
Slide 24: Major KPIs (Quarterly)
5.2 Major KPIs (Quarterly) Annual transaction value reaches ¥3.2 trillion Operating stores: 88,673; Transaction: ¥820 billion (value), 327 million (volume) (stores) 700 (billion yen) (Reference) Transaction value (past 12 months) ¥2.96 trillion 90,000 Including GMO Financial Gate ¥3.2 trillion (mill
Slide 25: 6. Reference materials
6. Reference materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 25
Slide 26: 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 IFRS J-GAAP 6,459 *50.2％ *47.2％ 6,086 6,098 52.7% *44.5％ *40.3％ 50.4% 6,000 5,716 50.3
Slide 27: Revenue breakdown (Quarterly)
6.2 Revenue breakdown (Quarterly) Revenue of some services recorded in net figure under IFRS IFRS (million yen) J-GAAP 2,773 2,801* 2,691 2,653 2,471 2,500 2,436 2,360 2,101 2,004 2,000 1,895 1,809 1,527 1,441 1,500 1,383 1,227 1,259 1,026 959 794 980 1,000 931 749 906 929 724 875 *832 804 786 795 7
Slide 28: Consolidated cash flows
6.3 Consolidated cash flows Positive OCF with earnings and deposit growth 8,000 J-GAAP IFRS ■Cash flow changes in Q2 OCF: ＋3,816 million 6,000 Pre-tax profit +3,180 million Changes in operating and other 4,000 receivables -4,204 million Changes in operating and other payables ＋6,073 million 2,000 IC
Slide 29: 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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