Slide 1: Financial results briefing for the term ending September 30, 2014
Financial results briefing for the term ending September 30, 2014 Themes：Returned to 20% profit growth, pursue continuous growth in the next 10 years November 5, 2014 GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h t t p : / / c o r p . g m o - p g . c o m /
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 5th , 2014. However, please note that they are subject to change wit
Slide 3: Agenda
Agenda 1. Summary 2. Financial highlights 3. Future growth strategy 4. Results forecast for the term ending September 2015 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: Initial forecasts and actual results①
1.1 Initial forecasts and actual results① Return to 20% growth, increased dividend per share from the initial forecast, ROE24.4％ ■ Actual results for the term ending September 2014 (October 2013 to September 2014, consolidated) FY2013 % (Million yen) FY2014 FY2013 % Change (Forecast) Change Sales ：
Slide 6: Initial forecasts and actual results②
1.2 Initial forecasts and actual results② Operation income was in line with initial plans, while Ordinary income and Net income were above estimates • Business partners’ shares listed. By selling a 12,000 Million yen part of the shares, posted an extraordinary 108% income • Payment business is robus
Slide 7: Review on the announced plan
1.3 Review on the announced plan Returned to the 20% profit growth trend as promised Returned Financial results briefing for the term ending September 30, 2012 （Nov 7, 2012） FY2012 FY2013 FY2014 20％ income growth line Ordinary income Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
Slide 8: Economic impact of the consumption tax hike
（reference） Economic impact of the consumption tax hike EC Market growth has leveled off after consumption tax hike Amount of processed online Private consumption payments（Index,2008/1=1） integrated estimates 2.5 120 Amount of processed online payment (Index) Consumption tax hike Private consumption
Slide 9: High Lights and Low Lights
1.4 High Lights and Low Lights Realization of fruits from prior investment and further actions toward the next 10 years High Lights Low Lights ・BtoB（VISA Business Pay） service started Processing ・Growth of CtoC-EC market ・Negative impact of the consumption service tax hike（Narrow definition EC ・“GMO
Slide 10: Unification of data center completed
1.5 Unification of data center completed 30% cost decrease and 5 times increase in process ability New Data Center Old Data Center About 30％ decrease Process ability:5 Process ability:1 ※Change of the data center parallel operation running costs (with exception of infrastructure costs) Copyright (C)
Slide 11: Recent Topics
1.6 Recent Topics Topics Expected changes Impact on our business performance Prevalence of new convenient Diversifying payment methods payment means revitalizes the EC Apple Pay・LINE Pay（Sep） Growing consumer demand market. Although this is basically positive, enhancement of relationships with partn
Slide 12: 2. Financial highlights
2. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12
Slide 13: Summary of the consolidated results
2.1 Summary of the consolidated results Sales cost ratio increasing due to the product sales mix Cost of sales ratio deteriorated due to increase sales of both “Online Advertising Service“ and of large-scale development items FY2014 FY2013 （Million yen） Sales Sales Results Result composition composi
Slide 14: Summary of the consolidated balance sheets
2.2 Summary of the consolidated balance sheets Change in increasing pace of deposit due to diversification of closing/payment cycles （Million yen） FY2014 FY2013 Change （Million yen） FY2014 FY2013 Change Current assets 22,476 19,670 2,805 Current liabilities 17,624 15,537 2,087 Cash and deposits 20,3
Slide 15: Sales/ Ordinary income (Quarterly changes)
2.3 Sales/ Ordinary income (Quarterly changes) 4Q sales and ordinary income both marked over 20% growth ■Sales Compared to last FY +21.0％ ■ Ordinary income Compared to last FY +28.8％ Sales of special （1,000yen） system development （1,000yen） 40 million yen 1,892,030 1,842,793 1,825,574 700,000 684,88
Slide 16: Sales results for each segment (FY 2014)
2.4 Sales results for each segment（FY 2014） Over 20% sales growth in all segments 7,000,000 （1,000yen） ※％:y-o-y Expansion of the EC 6,000,000 market +26.7％ 5,000,000 + 27.6％ “GMO Payment Later service” expanding 4,000,000 + 28.4％ +22.8％ + 36.4％ 3,000,000 + 17.3％ “Online Advertising + 40.3％ + 14.8％ S
Slide 17: Sales-cost ratio/SG&A to sales ratio (FY2014)
2.5 Sales-cost ratio/SG&A to sales ratio(FY2014) Sales-cost ratio rose, curtailment of SG&A expenses （1,000yen） 60% 7,205,542 7,000,000 52.0% 50.8% 50.6% 49.0% 49.0% 47.7% 48.1% 47.7% 6,000,000 5,764,085 45.7% 44.7% 46.6% 5,000,000 40% 4,708,097 4,000,000 3,866,316 30.5% 3,292,851 3,145,901 3,000,00
Slide 18: Transition of the major factors (Quarterly changes)
2.6 Transition of the major factors (Quarterly changes) The number of operating stores increased as planned, and the number of processed payments grew immensely Number of operating stores 49,725 / Amount of processed payments 350 billion yen / Number of processed payments 178 million Number of proce
Slide 19: 3. Future growth strategy
3. Future growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 19
Slide 20: External environment
3.1 External environment Our opportunities and threats Opportunities Threats ・Expanding CtoC-EC S ・Unclear economic climate after tax hike in S Japan ・Credit card payments of BtoB-EC M started ・New competitors M ・Rise of emerging markets, M ・Limited scope for growth in Japan’s domestic L particularl
Slide 21: Policy
3.2 Policy Balanced growth in all segments Business model Value-added business model Initial System development Large-sized Stock Services for large-size enterprises enterprises Fee Initial Stock Spread Fee GMO Payment after delivery BtoB Medium-sized companies Fee TL service Spread Stock Online Ad
Slide 22: Management strategy
3.3 Management strategy Sustaining more than 20% income growth is our mission Past decade Next decade The largest in Japan The largest in Asia Processing company Invention partner OP: 0.2⇒2.5 billion yen OP: 2.5⇒25 billion yen Strategy③ Long-Term “Business area” Asian market Innovation Strategy② Mid
Slide 23: Strategy① Short-Term Market targeting: Challenging larger market
3.3 Strategy①Short-Term “Market targeting” Challenging larger market BtoB market BtoC market CtoC Market BtoB market Narrow Dawn of the CtoC EC ¥1,000 Trillion definition market Goods BtoC-EC Non face-to-face Flea markets app （ market EC ） Service commerce Public funds, taxes Next page Crowd-funding
Slide 24: Strategy① Short-Term Market targeting: BtoB
3.3 Strategy①Short-Term “Market targeting” BtoB：Development of the untapped mega market Large-scaled Marketing areas, 2015～ Marketing areas, 2014 Leading Material retailers manufacturer (Large-scale) （Large-scale） Wholesalers Manufacturers (Large- (Large-scale) scale) Retailers Wholesalers Parts sup
Slide 25: Strategy② Mid-Term Product strategy: GMO Payment Later service
3.3 Strategy②Mid-Term ” Product strategy” GMO Payment Later service: Increasing ARPU of merchants Sales activities of GMO-PG Sales activities of GMO-PS Share of payment method in EC market PG Multi-Payment GMO Payment Service after delivery Carrier payment Electronic Credit card money After the intr
Slide 26: Strategy② Mid-Term Product strategy: Transaction lending service
3.3 Strategy②Mid-Term ” Product strategy” Transaction lending（TL） Service TL Service ・Transaction analysis ・Lending money to support growth of our merchants Early payment service ・Shorten the payment cycle ・Cash flow improvement Transaction lending（TL） Representative merchant contract ・Contract is c
Slide 27: Strategy③ Long-Term Business area: Global strategy
3.3 Strategy③Long-Term “Business area” Global strategy：Economic area (SEA+East Asia) GMO-PG Global Payment Hong Kong+Taiwan GMO Global Payment Fund 75⇒115Trillion Yen GMO-PG×GMO-VP Thailand+Mekong 50⇒75Trillion Yen Kinokuniya (Taiwan) Hong Kong Taiwan Vietnam+Philippines 50⇒75Trillion Yen Thailand S
Slide 28: Strategy③ Long-Term Business area: Bitcoin
3.3 Strategy③Long-Term “Business area” Responding to technological advances：Bitcoin Accept Bitcoin, which is gaining acceptance in advanced countries in payment solutions, and accumulate knowledge on advanced technologies. Our existence value lies in consolidating many payment means into one to prov
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
Slide 30: Results forecast for FY 2015
4.1 Results forecast for FY 2015 Operating income increase 20% ■ Result forecast for the period ending September 30, 2015 （％ Year-on-year change） (Million Yen) [Sales] [Operating income] [Ordinary income] [Net income] Full year (Forecast) 8,656 (20.1％) 2,974 (20.1％) 2,985 (18.1％) 1,797 (18.6％) Cumul
Slide 31: Management strategy and action plans
4.2 Management strategy and action plans Strategy to sustaining more than 20% income growth ■Action plans Strategy①Short-Term “Market targeting” Broad definition EC market BtoB, CtoC, Face-to-face area, O2O, Service commerce, Utilities, Taxes Stragety②Mid-Term ” Product strategy” TL service GMO Paym
Slide 32: Summary of the consolidated results (Forecast)
4.3 Summary of the consolidated results (Forecast) Investment continues though the Operating income growth over 20% （Million yen） 9,000,000 8,656,000 8,000,000 7,205,542 7,000,000 ¥18.00 6,000,000 ¥15.00 5,764,085 5,000,000 4,708,097 ¥12.25 3,866,316 4,000,000 ¥9.75 3,145,901 2,974,000 ¥7.75 3,000,0
Slide 33: Sales for each segment (Forecast)
4.4 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
Slide 34: Cost of sales ratio and SG&A ratio (Forecast)
4.5 Cost of sales ratio and SG&A ratio (Forecast) Find balance between cost of sales ratio and SG&A ratio （1,000yen） 9,000,000 8,656,000 60% 8,000,000 SG&A • Curtailment of 52.0% 7,205,542 50.8% 50.6% SG&A expenses 7,000,000 49.0% 49.0% 47.7% 48.1% 47.7% 46.6% 45.7% 44.7% 6,000,000 5,764,085 40% Cos
Slide 35: 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