Slide 1: Financial results briefing for the 1Q of FY2014
Financial results briefing for the 1Q of FY2014 （ O c t o b e r 1 , 2 0 1 3 - D e c e m b e r 3 1 , 2 0 1 3 ） Theme：Support the evolution and expansion of the EC market in order to achieve strong, sustainable growth February 6, 2014 GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h
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 6th , 2014. However, please note that they are subject to change wit
Slide 3: Agenda
Agenda 1. Conclusion and summary 2. Financial highlights 3. Present status/Future growth strategy 4. Results forecast for the term ending September 2014 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: 1. Conclusion and summary
1. Conclusion and summary Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: 1.1 Conclusion and summary (1)
1.1 Conclusion and summary (1) Net sales increased more than 25% due to the growth and expansion of the EC market ■ Actual results for the 1Q of FY2014 (October 2013 to December 2013)(consolidated) (previous corresponding period) （y-o-y） S a l e s ： 1,645Million yen 1,311Million yen +25.5％ Operating
Slide 6: 1.2 Conclusion and summary (2)
1.2 Conclusion and summary (2) Results forecast and premises for FY 2014 ■ Result forecast for the period ending September 30, 2014 （％ year-on-year change） [Sales] [Operating income] [Ordinary income] [Net income] 6,934 2,475 2,460 1,421 Full year (Forecast) (20.3％) (20.8％) (20.1％) (16.8％) Million y
Slide 7: 2. Financial highlights
2. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 7
Slide 8: 2.1 Summary of the consolidated results
2.1 Summary of the consolidated results Both sales and gross income marked solid growth, and Ordinary income achieved a 25.2% growth rate due to non-operating income Compared to the results Compared to the Compared to the results for cumulated forecast for the previous corresponding （Million yen） 1Q
Slide 9: 2.2 Summary of the consolidated balance sheets
2.2 Summary of the consolidated balance sheets No major changes Results for Results for Results for Results for （Million yen） 1Q, FY2014 1Q, FY2013 Change （Million yen） 1Q, FY2014 1Q, FY2013 Change Current assets 22,422 16,927 5,494 Current liabilities 18,525 13,064 5,461 Cash and deposits 20,948 15
Slide 10: 2.3 Sales/Ordinary income (Quarterly changes)
2.3 Sales/Ordinary income (Quarterly changes) 1Q sales and ordinary income both marked more than +25% y-o-y ■Sales ■ Ordinary income Non-operating income, （1,000yen） Compared to last 1Q （1,000yen） Compared to last 1Q such as commissions received, exchange 1,645,144 +25.5％ +25.2％ earnings, earnings o
Slide 11: 2.4 Cost of sales ratio/SG&A ratio (Quarterly changes)
2.4 Cost of sales ratio/SG&A ratio（Quarterly changes） The cost of sales ratio ameliorated due to an increase in the sales of value-added services that exceeded the initial plan （1,000yen） 1,800,000 70.0% 1,645,144 1,563,063 1,600,000 1,469,820 60.0% 1,420,034 53.2% 1,400,000 58.5% 1,307,506 1,311,16
Slide 12: 2.5 Sales results for each segment (Quarterly changes)
2.5 Sales results for each segment（Quarterly changes） Overall segment sales increased over 20% （1,000yen） y-o-y 582,291 600,000 Initial revenue +37.0％ 568,811 Monthly revenue +27.9％ 526,214 529,688 500,000 Transaction processing revenue +20.6％ 473,999 464,540 470,792 Merchant acquiring service reven
Slide 13: 2.6 Sales results for each segment (1)
2.6 Sales results for each segment (1) Balanced growth in all segments New service New service New service “GMO Payment Early payment Option service of Later” service service GMO Epsilon, Inc. 2％ New service 1％ 20％ Delivery service Payment system development Online 3％ 25％ advertising service Payment
Slide 14: 2.7 Sales results for each segment (2)
2.7 Sales results for each segment (2) Future growth strategy for merchant scale or segment Initial revenue • Receive order of payment- related system development Monthly revenue • Providing security services, Large-sized enterprises Transaction processing revenue contributes to stable operation of
Slide 15: 2.8 Transition of the major factors (Quarterly changes)
2.8 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 46,108/ Amount of processed payments 330 billion yen/ Number of processed payments 148 million Number of Amount
Slide 16: 3. Present status/ Future growth strategy
3. Present status/ Future growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 16
Slide 17: 3.1 Potential of the EC market
3.1 Potential of the EC market Compared with major countries, the EC ratio in Japan is very low Broad sense EC market EC rate ？Trillion yen Country comparison USA （2013） 5.7％ * UK （2013） 10.4％ China （2012） 6.2％ ** Taiwan （2012） 7.5％ Japan （2012） 3.1％ *Adjusted, preliminary estimate. **EC ratio of Bt
Slide 18: 3.2 Forecasts and strategy
3.2 Forecasts and strategy GMO-PG aims to expand its share in growing EC markets and achieve sustainable, high growth 2014 Around 2020 Growth potential EC market scale ¥10 Trillion Around ¥25 Trillion 2.5times [1] Acquire large-scale merchants × [2] Increase ARPU by cross-selling, creating new busin
Slide 19: 3.3 Strategy by merchant segment
3.3 Strategy by merchant segment Create a new business and rebuild the business model according to the scale of the merchant Acquire large-scale merchants Large-sized Payment processing business and develop strong relationships [1] enterprises with them Payment processing Contribute to merchant grow
Slide 20: 3.4 The next driving force of the EC market
3.4 The next driving force of the EC market Strategic moves for a new/growing fields in the EC market • 2014: Large enterprises expanded their EC business, After 2015: Expand the “Micro-commerce” (Small-BtoC, CtoC) market “Micro-commerce” [3] (Small-BtoC, CtoC) • 2014 will be the first year of credi
Slide 21: 3.5 The rise of "Micro-commerce" (Small-BtoC, CtoC)
3.5 The rise of “Micro-commerce” (Small-BtoC, CtoC) The strategy to capture the EC market which has been expanding to the individual field Speed/Easiness [3] the interpersonal transaction services Flea on a network like a flea market market type the service of selling Skill one’s knowledge/skills se
Slide 22: 3.6 Business reinforcement of the service commerce field
3.6 Business reinforcement of the service commerce field In a narrow sense, new fields beyond the EC market are expanding Non face-to-face field Face-to-face field Service commerce ･Wi-Fi ･Donation ･Tuition fees ･Pay web ･Deposit for services Narrow sense EC rent ･JAF 9.5trillion yen （FY2012） 290 tr
Slide 23: 3.7 Expansion of O2O (Online to Offline) EC areas
3.7 Expansion of O2O(Online to Offline) EC areas Expansion of the EC area through the realization of a fusion between the online and “real” market [4] Cooperation between the The utilization of online and “real” shop location information ・A coupon/information delivery ・Stock levels check can be serv
Slide 24: 3.8 The synergy
3.8 The synergy The improvement of ARPU [5] Customer Advertising attraction Number of processed payments increased Value-added Facebook services Smartphone EX) Apparel shop Payment related SSL Delivery +130％(Average) Before Early payment After Different from Payment later credit card Net banking Car
Slide 25: 3.9 Overseas development strategy according to country
3.9 Overseas development strategy according to country Through two strategic service entities, Capital and business alliance could be promoted Approx. $15 million ③GMO-PG Global USD fund ①Receives Payment Launches Contribution Operation from Credit Saison (Dec 20) Our Japanese merchant GMO-PG Global
Slide 26: 3.10 The progress of new business
3.10 The progress of new business GMO-PG group’s new business and the status of profits ■Online Advertising ■SAPS Ordinary income Service Sales （GMO-PG） Started in October,2011 Established in March,2010 10/3 10/6 10/9 11/3 11/6 11/9 12/3 12/6 12/9 13/3 13/6 13/9 10/12 11/12 12/12 13/12 10/3 10/6 11/
Slide 27: 4. Results forecast for the term ending September 2014
4. Results forecast for the term ending September 2014 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 27
Slide 28: 4.1 Summary of the consolidated results (Forecast)
4.1 Summary of the consolidated results (Forecast) Investment continues though the Ordinary profit growth rate returns to 20% （1,000yen） 6,934,000 By continuing the 7,000,000 40% prior investment and the sales mix 37.5% 35.5% 37.0% (Sale of value- 34.3% 36.4% 36.5% 35.5% 6,000,000 32.8% 33.2% 5,764,
Slide 29: 4.2 Sales for each segment (Forecast)
4.2 Sales for each segment (Forecast) Planning for merchant acquiring service revenue to be +25% and Transaction processing revenue to be +23％ 7,000,000 （1,000yen） ※％y-o-y Because of an expansion of the ECmarket, we 6,000,000 forecast that merchant acquiring service revenue + 25％ is going stay in go
Slide 30: 4.3 Cost rate of sales/ Rate of SG&A expenses (Forecast)
4.3 Cost rate of sales/ Rate of SG&A expenses (Forecast) Sales amount cost price rate will undergo sideways movement, and the rate of selling for general and administrative expenses will decrease （1,000yen） 7,000,000 6,934,000 60% Rate of selling for general 6,000,000 52.0% 50.8% 50.6% and administr
Slide 31: 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