Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q2 FY2015 Earnings Presentation

32 slides from Gmo Payment Gateway's earnings presentation, May 1, 2015

  1. Slide 1: Financial results briefing for the 2Q of FY2015

    Financial results briefing for the 2Q of FY2015 （ O c t o b e r 1 , 2 0 1 4 - M a r c h 3 1 , 2 0 1 5 ） Themes： Drive the growth of the e-commerce industry, achieve our sustainable high growth May 1, 2015 The 41st IR Meeting GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h t t p :

  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 May 1, 2015. However, please note that they are subject to change without pri

  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: Summary

    1.1 Summary Performance remained robust, sales and income grew over 20%, Operating income achieved 50% progress Summary of the consolidated results YoY* Progress % Increase ■Sales： 4,162Million Yen （+19.4％ / 48.1%） ■Operating income： 1,487Million Yen （+20.1％ / 50.0％） ■Operating income ratio： 35.7％ （

  6. Slide 6: Causes of the increase in sales and income

    1.2 Causes of the increase in sales and income The result of various business efforts conducted from medium-term and long-term perspectives YoY*: 1H FY2015 compared to 1H FY2014 YoY* % Increase • “New-fields-EC” +66％ +19.4％ （Our top 50 customers) Sales +¥675Million • GMO Payment after delivery +606％

  7. Slide 7: Sales/Ordinary income (Quarterly changes)

    1.3 Sales/Ordinary income (Quarterly changes) Ordinary income up 20.5%, exceeding sales growth rate ■Sales +19.6％ ※22.3％ increase except payment ■ Ordinary income +20.5％ system development sales （1,000yen） （1,000yen） 2,204,334 Payment system 800,000 772,486 development sales 758,080 ¥40Million 2,000

  8. Slide 8: Sales (PG, EP, PS, FG)

    1.4.1 Sales（PG・EP・PS・FG） Results of various measures, achieved increase in sales and income （1,000yen） PG：GMO payment gateway 3,500,000 EP：GMO Epsilon +14.9％ ※16.6％ increase except payment PS：GMO Payment Service(GMO Payment after delivery) system development sales FG：GMO Financial Gate（former COC, F

  9. Slide 9: Ordinary income (PG, EP, PS, FG)

    1.4.2 Ordinary income（PG・EP・PS・FG） Results of various measures, achieved increase in sales and income PG：GMO payment gateway （1,000yen） 1,000,000 +27.0％ EP：GMO Epsilon PS：GMO Payment Service(GMO Payment after delivery) FG：GMO Financial Gate（the former COC, Face-to-face) 800,000 Ordinary income ratio

  10. Slide 10: 2. Growth strategy

    2. Growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 10

  11. Slide 11: Business background

    2.1 Business background Structural changes and new trends The leaders of the growth in the The growth strategy of Japan New EC domains, ・”Cashless Japan” “Open innovation” ・Regional revitalization The landing of destructive services The innovation created by FinTech overseas Target of increasing the

  12. Slide 12: Growth strategy

    2.2 Growth strategy Sustaining more than 20% income growth is our mission Long-Term “Business area strategy” Mid-Term ” Product strategy” Short-Term “Market targeting strategy” 20％ growth line Growth rate of narrow definition EC 10～15％ Now Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Rese

  13. Slide 13: Portfolio of income (image)

    2.3 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 Payment processing service profitable growth (Speech balloon) etc “Multi-Payment Service” GMO-

  14. Slide 14: Market targeting strategy: New-fields-EC

    2.4.1 Market targeting strategy：New-fields-EC Expansion of New-fields-EC Change in business category of our top 50 customers (Sales) +66.4％ -15.8％ New-fields-EC Large front-loaded Goods-EC increase in demand prior to the consumption tax hike Compared with the same month of the last year Mar 2014 Mar

  15. Slide 15: Market targeting strategy: Face-to-face

    2.4.2 Market targeting strategy：Face-to-face Face-to-face market is advancing to the business expanding stage. Additional investment and CB conversion on GMO-FG (the former COC) January 2010 Joined the GMO-PG group Face-to-face market Number of processed payments per month increased 9 times ! Initia

  16. Slide 16: Market targeting strategy: Face-to-face

    2.4.3 Market targeting strategy：Face-to-face Reaching to the growing stage and taking the smartphone payment and the “Inbound tourism consumption” 7,000 Amount of smartphone payment（Index） Amount of Union Pay payment（Index） 25 6,000 20 5,000 4,000 15 3,000 10 2,000 Expansion of smartphone payment “I

  17. Slide 17: Product strategy: Public funds, taxes

    2.5.1 Product strategy：Public funds, taxes Putting our products into approx. 35 trillion yen market, and expanding to a greater market EC area Public funds area National tax ¥53 trillion Local tax ¥35 trillion Narrow definition Metropolitan BtoC-EC market tax ¥６trillion ¥11 trillion April 1, 2015 ze

  18. Slide 18: Product strategy: Payment after delivery

    2.5.2 Product strategy：Payment after delivery The accumulation of the transactions which leads to the unique credit management know-how Number of processed payments Sales （GMO Payment after delivery） （GMO-PS） 4.3 times 3.8 times 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q

  19. Slide 19: Product strategy: FinTech in our company

    2.5.3 Product strategy：FinTech in our company A new service utilizing the data based on an overwhelming payment volume NEW ●GMO Epsilon Transaction Lending NEW Rapid and easy loan service for our merchants ●GMO-PG Remittance Service Efficient and secure refund and remittance processing ●Early paymen

  20. Slide 20: Business area strategy: Southeast Asia

    2.6.1 Business area strategy：Southeast Asia Progress by country Hong Kong Taiwan GMO-PG Global Payment Myanma GMO Global Payment Fund GMO-PG×GMO-VP r Lao s Thailand Viet Nam Philippines Cambodia Malaysia Singapore Classification based on the following conditions Indonesia Our oversea entities ①Alrea

  21. Slide 21: Business area strategy: Southeast Asia

    2.6.2 Business area strategy：Southeast Asia Strengthening the capital relationship with a major payment business agent company in Thailand, 2C2P. We become the largest outside shareholder April 30, 2015 Additional investment in 2C2P Pte Ltd Additional investment： $2 million(¥240million) Total amount

  22. Slide 22: Business area strategy: Global Online Advertising service

    2.6.3 Business area strategy： Global Online Advertising service The efforts of advertising delivery to the foreign tourists domestically and abroad Distributing Before visiting Japan Distributing In Japan AD AD ※Consider the locality AD AD （ex) Major department stores Limousine taxi, etc Payment inf

  23. Slide 23: 3. Financial highlights

    3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 23

  24. Slide 24: Summary of the consolidated results

    3.1 Summary of the consolidated results Operating income up 20.1％, OP margin up 0.2 point Compared to the 1H of FY2015 1H of FY2014 FY2015 1H of FY2014 （Million yen） Sales Sales Change Composition Forecast Progress Results composition Growth Results % ％ ％ % Sales 4,162 100.0 675 +19.4 3,487 100.0 8,

  25. Slide 25: Summary of the consolidated balance sheets

    3.2 Summary of the consolidated balance sheets The amount of deposit received increased 6.4 billion yen despite of the effect of the variation of closing date and payment cycle Results for Results for Results for Results for 2Q, （Million yen） 2Q, FY2015 2Q, FY2014 Change （Million yen） 2Q, FY2015 FY2

  26. Slide 26: Sales results for each segment (Quarterly changes)

    3.3 Sales results for each segment（Quarterly changes） Transaction processing revenue and merchant acquiring service revenue are in good shape. Initial revenue down but just as planned （1,000yen） y-o-y 873,483 Initial revenue -22.2％ 800,000 Monthly revenue +9.3％ 752,202 705,327 700,000 Transaction pr

  27. Slide 27: Cost of sales ratio/SG&A ratio (Quarterly changes)

    3.4 Cost of sales ratio/SG&A ratio（Quarterly changes） The sales-cost ratio increased due to the sales mix, but remain highly profitable by the various management measures （1,000yen） 2,500,000 60.0% 2,204,334 53.2% 51.6% 50.9% 50.0% 2,000,000 1,958,642 47.0% 1,842,793 45.9% 45.8% 45.6% 1,825,574 1,89

  28. Slide 28: Transition of the major factors (Quarterly changes)

    3.5 Transition of the major factors (Quarterly changes) Number of operating stores not increased due to special factors of 1Q and 2Q Number of operating stores 54,470 /Amount of processed payments 380billion yen /Number of processed payments 198million Number of Amount of Number of processed operati

  29. Slide 29: 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. 29

  30. Slide 30: 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,

  31. Slide 31: 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 + 22.8％ + 22％ + 36.4％ + 17

  32. 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 Planning Office IR/PR Group TEL:03-3464-0182

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