Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q1 FY2016 Earnings Presentation

30 slides from Gmo Payment Gateway's earnings presentation, Feb 5, 2016

  1. Slide 1: Financial results briefing for the 1Q of FY2016

    Financial results briefing for the 1Q of FY2016 （October 1, 2015-December 31, 2015） Themes： Achieve 25% profit growth in the payment business field via expansion of Money Service Business February 5, 2016 The 44 th 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 February 5, 2016. However, please note that they are subject to change withou

  3. Slide 3: Agenda

    Agenda 1. Summary of Financial Results for 1Q FY2016 2. Progress of the growth strategy 3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3

  4. Slide 4: 1. Summary of Financial Results for 1Q FY2016

    1. Summary of Financial Results for 1Q FY2016 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4

  5. Slide 5: Summary

    1.1 Summary Good performance of payment processing service and MSB 1Q of FY2015 Progress （Million yen） 1Q of FY2016 Results Growth Growth rate 1H Full Year Sales 2,732 1,958 774 39.5％ 52.4% 23.9% Gross income 2,117 1,576 541 34.3％ 52.4％ 23.9％ Operating income 870 725 145 20.0％ 49.3％ 23.3％ Ordinary i

  6. Slide 6: Sales/Gross income

    1.2 Sales/Gross income Sales up 39.5％, gross income (adjusted basis) up 29.1％ • YoY of Gross income (adjusted ■Sales ■Gross income basis : excluding outsourcing (1,000 yen） YoY (1,000 yen） YoY expenses of SG&A） +39.5％ +34.3％ 3,000,000 +29.1％ 2,732,786 2,000,000 2,603,210 2,500,000 • Sales increase d

  7. Slide 7: Gross income (adjusted basis)

    1.3 Gross income (adjusted basis) Income growth rate increased from 20% to about 30% Special factor ■Gross income (adjusted basis) 30.0% (1,000 yen） Front-loaded increase 2,000,000 in demand prior to the consumption tax hike About 10% Increased 1,500,000 20.0% 1,000,000 10.0% 500,000 0 0.0% 2013/1Q

  8. Slide 8: Operating income/Ordinary income

    1.4 Operating income/Ordinary income Operating income up 20.0％, Ordinary income up 22.0％ ■Operating income ■ Ordinary income (1,000yen) YoY +20.0％ (1,000yen) YoY +22.0％ 900,000 1,000,000 870,919 812,277 924,496 800,000 900,000 762,315 725,596 800,000 787,380 700,000 675,999 677,081 758,080 772,486 6

  9. Slide 9: Revenue breakdown

    1.5 Revenue breakdown Up over 25% in all revenue model (1,000yen) Spread +53.6％ 2,500,000 ・Sales of our merchants increased ・MSB continued to grow steadily 1,155,545 2,000,000 Fee +32.0％ 752,202 ・Expansion of “Payment after delivery” 1,500,000 and Remittance Service 771,471 1,000,000 Stock +28.5％ 58

  10. Slide 10: Sales/Operating income by Segment

    1.6 Sales/Operating income by Segment Sales/operating income exceeded the forecast(1Q) ※ ％ YoY (vs. Forecast) ■Sales ■ Operating income 3,000,000 （1,000yen） 1,300,000（1,000yen） 27,589 283,190 +55.3％ +59.5％ （+43.6％） （+30.2％） 1,100,000 2,500,000 17,766 42,024 428,588 Turned into 177,596 900,000 gains

  11. Slide 11: Reference: Segment/Revenue model/Service

    Reference: Segment/Revenue model/Service ３ Segments and ４ Revenue models ３ Segments 4 Revenue models Payment processing Payment processing Payment processing Initial SSL business System development (Initial revenue) etc System development etc Payment processing Payment after delivery Stock (Monthly

  12. Slide 12: 2. Progress of the growth strategy

    2. Progress of the growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12

  13. Slide 13: Three growth strategies

    2.1 Three growth strategies Strategies progressed to achieve more than 25% profit growth 3, Long-Term “Business area strategy” Now ・Global business ・Strategic investments 2, Mid-Term ”Product strategy” 5％ ・Expansion of Money Service Business ・BtoB ・GMO Pallet（Regional revitalization related） 1, Shor

  14. Slide 14: Market targeting strategy: BtoB

    2.2.1 Market targeting strategy: BtoB Promoting the use of credit cards for BtoB transactions Introducing case studies Trends of BtoB ratio （%） Amount of processed payments 1.4% Number of operating stores Company A : Wholesale WWW hosting service 1.2% Monthly amount: ¥15M 1.0% 0.8% Company B : Retai

  15. Slide 15: Market targeting strategy: Business and capital partnership

    2.2.2 Market targeting strategy: Business and capital partnership Joint Venture Company started business ■Establishment November 2015 Dogenzaka ■Capital stock 312 million yen Shibuya SMBC Shibuya branch station ■Representative Masamitsu Ikezawa (CEO) Tomoyuki Murakami (COO) SMBC GMO GMO Payment Gate

  16. Slide 16: Product strategy: Money Service Business

    2.3.1 Product strategy: Money Service Business MSB-related asset and amount of processed payment MSB-related sales About ¥1,700 million MSB-related sales About ¥400 million/1Q MSB-related asset About ¥9,000 million MSB-related asset About ¥6,200 million 1Q-end Amount of processed Year-end Amount of

  17. Slide 17: Product strategy: GMO Payment after delivery

    2.3.2 Product strategy: GMO Payment after delivery Expanding ”Purchase Finance” ■Most noteworthy payment service Number/Amount of processed 50 ・Competing firms growing in Europe and the US payments (Index) ・Payment method other than credit card ・Unique knowhow to avoid the risks arising bad 40 debts

  18. Slide 18: Product strategy: Online Advertising Service

    2.3.3 Product strategy: Online Advertising Service Unique value-adding service only GMO-PG can produce ■Online advertising service based upon transaction data Sales Performance Our ad service user’s average： +143.5％ ■Contribute to boost sales of our merchants Average： +126.1％ December 1, 2016, Full-

  19. Slide 19: Product strategy: GMO Pallet

    2.3.4 Product strategy: GMO Pallet Infrastructure of cashless payment, new services in relation to the Regional revitalization February 5, 2016 As part of its FinTech (combined finance and IT) services, GMO-PG will start Account balance offering OEM(*1) services for GMO Pallet, its smart phone payme

  20. Slide 20: Business area strategy: Global business

    2.4.1 Business area strategy: Global business Steady progress in oversea business Amount of Number of ■Measures： processed payment merchants ・Support our merchants to enter the Taiwanese market YoY ・Cultivate large merchants YoY 4.6 times ・Priority products 4.0 times Apparel (clothing)/Accessory/Cos

  21. Slide 21: Business area strategy: Global business

    2.4.2 Business area strategy: Global business Investment strategy and portfolios (region/service) US etc （Growth + R&D） 12M US$ 10M US$ （1M US$） （5.3M US$） ASIA （Growth） JAPAN Lending/ Remittance 5M US$ （2M US$） Payment Number of the 1M US$ company （1M US$） ※ 6 9 1 ３ Region 2015/1Q 2016/1Q 2015/1Q 2

  22. Slide 22: 3. Financial highlights

    3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 22

  23. Slide 23: Summary of the consolidated results

    3.1 Summary of the consolidated results Sales and income exceed the forecast 1Q of FY2016 1Q of FY2015 (Million yen) Sales Sales Results composition Growth Growth rate Results composition Sales 2,732 100.0 774 39.5％ 1,958 100.0 Cost of sales 615 22.5 233 61.0% 382 19.5 Gross income 2,117 77.5 541 34

  24. Slide 24: Summary of the consolidated balance sheets

    3.2 Summary of the consolidated balance sheets MSB linked to current assets Results for Results for 1Q, Results for Results for 1Q, （Million yen） 1Q, FY2016 FY2015 Change （Million yen） 1Q, FY2016 FY2015 Change Current assets 44,807 27,092 17,714 Current liabilities 33,764 22,775 10,989 Cash and depo

  25. Slide 25: Revenue Breakdown

    3.3 Revenue Breakdown Spread revenue up 53.6％ (1,000yen) YoY 1,155,545 1,200,000 1,148,987 Initial +34.7％ ※Special Stock ＋28.5％ factor 1,000,000 Fee ＋32.0％ 889,917 Spread ＋53.6% 873,483 771,471 800,000 752,202 705,327 708,637 689,264 670,573 681,844 663,581 659,842 568,811 582,291 594,679 600,000 58

  26. Slide 26: 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 (1,000yen) ※Excluding MSB-related outsourcing expenses ※50.2％ 52.7% 3,000,000 51.6% 50.9% 2,732,786 50.0% 45.8% 44.4% 44.0% 45.6% ※41.5％ ※42.6％ 43.2% 43.5% 43.8% 2,603,210 45.6% 2,500,000 42.9% 41.7% 2,204,334 2,2

  27. Slide 27: Transition of the major factors

    3.5 Transition of the major factors Amount of processed payment will exceed ¥2 trillion Number of operating stores 65,652 / Amount of processed payments ¥450 billion / Number of processed payments 280 million Amount of processed payments （100 million yen） Number of processed （Reference） Amount of pr

  28. Slide 28: Summary of the consolidated results

    3.6 Summary of the consolidated results Forecast 25％ for income growth, Planning ¥22.0 for dividend (1,000yen) ¥22.00 11,413,000 ¥18.00 10,000,000 ¥15.00 ※％ yoy ¥12.25 9,030,892 Sales: +26.4％ 8,000,000 ¥9.75 Operating income: +25.7％ 7,205,542 ¥7.75 ¥5.88 Ordinary income: +25.0％ ¥5.25 5,764,085 6,000

  29. Slide 29: Revenue Breakdown

    3.7 Revenue Breakdown Action plans to realize the growth (1,000yen) 10,000,000 ・Cultivate growing merchants ・Service to increase the merchants’ sales + 34.2％ ・Expansion of MSB 8,000,000 such as Transaction lending, Early payment + 38.4％ ・Cultivating large-scale + 26.7％ merchants 6,000,000 ・GMO payme

  30. Slide 30: 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 Corporate Value Creation Strategy Division Investor relations office TEL:+81-3-3464-0182

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