Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q2 FY2025 Earnings Presentation

47 slides from Gmo Payment Gateway's earnings presentation, May 15, 2025

  1. Slide 1: Financial Results Briefing for Q2 FY2025

    Financial Results Briefing for Q2 FY2025 H1 results driven by online payments; strengthening business structure to be resilient against changes in the environment May 15, 2025 81st Investor Meeting

  2. Slide 2: Safe Harbor Statement for Forward Looking Statements

    Safe Harbor Statement for Forward Looking Statements The contents of this document is based on generally recognized economic and social conditions, as well as certain assumptions judged to reasonable by GMO Payment Gateway as of May 15, 2025. Note that the contents are subject to change without prio

  3. Slide 3: Agenda

    Agenda 1. Earnings Summary 2. Growth Strategy 3. Sustainability 4. Financial Highlights and Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3

  4. Slide 4: 1. Earnings Summary

    1. Earnings Summary Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4

  5. Slide 5: 1.1 Summary of Consolidated Results

    1.1 Summary of Consolidated Results Revenue and OP exceeded plans for Q2 and H1 FY2025 H1 FY2024 H1 FY2025 Q2 FY2025 （¥ mil） % YoY Guidance Actual Actual (% YoY) (% progress) 83,377 20,462 Revenue 36,099 40,757 +12.9% (48.9%) (+11.7%) 52,319 13,922 Gross Profit 23,267 27,540 +18.4% (52.6%) (+18.8%)

  6. Slide 6: 1.2.1 Waterfall Chart of Consol. Revenue (YoY)

    1.2.1 Waterfall Chart of Consol. Revenue (YoY) GMO-FG’s initial revenue declined 17.1% from high base effect of terminal sales in the previous term Consol. （% YoY） Consol. GMO-FG*1*2 GMO-PG*3 GMO-PS*3 Overseas*3 Consol. GMO-EP*1*3 （¥ bn） －2.1% +20.8% +6.6% +13.4% +36.9% +12.9% ¥40.8 bn Other 40 39 P

  7. Slide 7: 1.2.2 Trend of Revenue Growth

    1.2.2 Trend of Revenue Growth Consol. revenue excl. payment terminals grew stably at 18.7% Breakdown of consol. revenue and % YoY growth rates (quarterly trend) （¥ mil） High base effect from large GMO-FG Initial revenue (left axis) project in previous FY 60.0% GMO-FG revenue excl. initial (left axis

  8. Slide 8: 1.2.3 Waterfall Chart for Consol. OP and Pre-tax Profit (YoY)

    1.2.3 Waterfall Chart for Consol. OP and Pre-tax Profit (YoY) OP grew 21.0% from the 18.4% increase in gross profit and decline in provisions for doubtful accounts that offset the one-time expense OP waterfall chart Pre-tax profit waterfall chart （¥ mil） （¥ mil） % YoY +21.0% % YoY +20.1% GP SGA Equi

  9. Slide 9: 1.3.1 GMO-PG Non-Consol. Performance (YoY)

    1.3.1 GMO-PG Non-Consol. Performance (YoY) Revenue grew 20.3% strong sales from larger mid-sized client segment and initiatives to improve sales productivity GMO-PG non-consolidated revenue & OP (quarterly) *1 % YoY （¥ mil） Merchandise EC revenue Q2 FY2024 Q1 FY2025 Q2 FY2025 Non-merchandise EC reve

  10. Slide 10: 1.3.2 Performance of GMO-EP, GMO-PS and GMO-FG (YoY)

    1.3.2 Performance of GMO-EP, GMO-PS and GMO-FG (YoY) EP’s growth recovers, PS’ continued margin improvement and FG impacted from high base effect Consol. GMO-EP (quarterly)*1*2 GMO-PS (quarterly)*2 Consol. GMO-FG (quarterly)*1*3 (% YoY） Q2 FY2024 Q2 FY2025 Q2 FY2024 Q2 FY2025 Q2 FY2024 Q2 FY2025 Rev

  11. Slide 11: 1.4 Waterfall Chart of Consol. TRX Value (YoY, Q2)

    1.4 Waterfall Chart of Consol. TRX Value (YoY, Q2) Consol. TRX value increased 21.1% excluding impact of local govt. project CP Online payment GMO-PG +7.0% Consol. +14.5% payment *1 Market stats +5.7% （% YoY） Non-merchandise EC Merchandise EC （¥ trn） GMO-PG +28.8% +6.2% +9.3% Market stats *1 - +7.3%

  12. Slide 12: 1.5 Segment Results (YoY)

    1.5 Segment Results (YoY) MSB profits increased 35.3% from the normalization of credit costs Segment revenue* Segment profit/loss* % YoY % YoY (¥ mil) H1 FY2024 H1 FY2025 (¥ mil) H1 FY2024 H1 FY2025 40,000 +18.5% +12.9% +22.2% +21.0% 16,000 +34.6% +26.2% +62.2% +16.5% 30,000 +19.4% +15.7% +38.1% +35

  13. Slide 13: 2. Growth Strategy

    2. Growth Strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 13

  14. Slide 14: 2.1 Management Strategy: TAM Expansion

    2.1 Management Strategy: TAM Expansion Expand TAM (i.e. business domains) with the 3 strategies at each subsidiary Payment After GMO-PS Delivery GMO B2B Pay On PS BtoB Overseas Credit Overseas lending 2.2 FinTech Non- 1. In-house EP fincode byGMO merchandise Expand industry Payment development BaaS

  15. Slide 15: 2.2 Earnings contribution from expanding TAM

    2.2 Management Strategy: Earnings contribution from expanding TAM TAM expansion followed by revenue growth, and then profit contribution Revenue and operating profit (Overseas lending, GMO-RP, Instant Salary byGMO, GMO Enpay) （¥ mil） 4,000 Revenue 6-yr CAGR +44.4% 3,000 2,000 OP 6-yr CAGR 1,000 +92.

  16. Slide 16: 2.3 Strengthening business model ①

    2.3 Management Strategy: Strengthening business model ① Address areas closely linked to daily lives across various industries Breakdown of online payment revenue by industry*1 Daily life related domains ・Built a sector specific sales structure (infrastructure domain) ・Rollout industry-specific appli

  17. Slide 17: 2.4 Strengthening business model ②

    2.4 Management Strategy: Strengthening business model ② Continue stable growth by stacking up stock-like revenue streams Trend of stock-like revenue in consolidated revenue*1 (annual) (¥ mil) Sep. 2008 Mar. 2011 Apr. 2014 Oct. 2019 80,000 Lehman Great East Consumption tax 8% Consumption tax 10% Init

  18. Slide 18: 2.5.1 Business strategy: GMO-PG Non-consolidated

    2.5.1 Business strategy: GMO-PG Non-consolidated Growth of larger mid-sized clients; numerous initiatives targeting H2 and beyond GMO-PG non-consol. revenue plan and actual (quarterly) GMO-PG non-consol. TRX value vs. market stats*(indexed) (¥ mil) Plan Good progress in building 2.0 GMO-PG non-conso

  19. Slide 19: 2.5.2 Business Strategy: GMO-PG Flagship Payment Service Sales Division

    2.5.2 Business Strategy: GMO-PG Non-consolidated (Flagship Payment Service Sales Division) Revenue growth from supporting client’s growth and improving sales productivity Change in revenue by customer segment at the flagship payment service sales division* (¥ mil) Apr. 2024 10,000 Sales reorganizati

  20. Slide 20: 2.6 Business Strategy: GMO-EP Online Payment and Medical DX

    2.6 Business Strategy: GMO-EP Consol. Online Payment (SME) and Medical DX Accelerate growth by driving forward payments for startups and reservation SaaS services Consol. GMO-EP revenue (quarterly) Major initiatives (¥ mil) % YoY Existing payment service ・Progress in converting pricing structure for

  21. Slide 21: 2.7 Business Strategy: GMO-PS Payment After Delivery/BNPL

    2.7 Business Strategy: GMO-PS Payment After Delivery/BNPL Aim for revenue growth recovery by strengthening synergy and partner strategy GMO-PS revenue and operating profit (Q2) Strengthened synergy with PG with the organizational reforms in March 2025 (¥ mil) New domain revenue % YoY Driving project

  22. Slide 22: 2.8 Business Strategy: Consol. GMO-FG CP Payments

    2.8 Business Strategy: Consol. GMO-FG CP Payments Driving reacceleration of recurring-model revenue by acquiring high-transaction merchants, etc. Consol. GMO-FG revenue by business model*1 (quarterly) Initiatives to reaccelerate recurring-model revenue (¥ mil) （’000 units) % YoY 1. Acquire high-tran

  23. Slide 23: 2.9.1 Business Strategy: Global Lending Strategy

    2.9.1 Business Strategy: Global Lending Strategy Pursue returns and leading-edge expertise from promising FinTech companies in each category Global lending portfolio (End-March 2025 breakdown of lending book, excerpt of a concrete case provided) BtoC Neobank/BNPL Credit Revenue（Weighted average Buil

  24. Slide 24: 2.9.2 Business Strategy: Global Earnings Summary

    2.9.2 Business Strategy: Global Earnings Summary Revenue grew 31.5% from new loans executed, increase in loans to prime borrowers and strong remittance service Revenue and Operating profit (Q2) Loan balance (End-March) New loans executed (Q2 FY2025 onwards) (¥ mil) (¥ mil) % YoY % YoY （Feb. 2025） +3

  25. Slide 25: 3. Sustainability

    3. Sustainability Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 25

  26. Slide 26: 3. Sustainability: Decarbonization Initiatives

    3. Sustainability: Decarbonization Initiatives Promoting reduction of environmental burden on society through procurement policy and forest J-Credit New developments NEW from Q2 onwards FY2023 FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Ongoing Achieved carbon neutral for Scope 1 & 2 emissions

  27. Slide 27: 4. Financial Highlights and Reference Materials

    4. Financial Highlights and Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 27

  28. Slide 28: 4.1.1 Consolidated Balance Sheet

    4.1.1 Consolidated Balance Sheet Increase in merchant deposits and MSB related assets due to scaling up of business Assets Liabilities and Equity (¥ mil) Cash (¥ mil) corresponding to 400,000 deposits received 400,000 from merchants 373,682 373,682 344,702 344,702 300,000 292,346 300,000 292,346 141

  29. Slide 29: 4.1.2 Major Consolidated Financial Indicators (Annual Trend)

    4.1.2 Major Consolidated Financial Indicators*1 (Annual Trend) Managing businesses while balancing profitability, capital efficiency and capital base J-GAAP IFRS Third party allotment Issued Euro Yen Euro Yen CB Due 2026 （¥ bn） 45% Raised ¥8.0bn CB Due 2023 Raised ¥21.1 bn 400 Raised ¥17.5 bn Euro Y

  30. Slide 30: 4.2.1 Consolidated Revenue and Operating Profit (Quarterly)

    4.2.1 Consolidated Revenue and Operating Profit (Quarterly) Consol. revenue Consol. operating profit （¥ mil） （¥ mil） 25,000 10,000 20,000 8,000 15,000 6,000 10,000 4,000 5,000 2,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 11,857 12,201 12,897 13,341 FY2022 4,116 4,159 4,511 3,461 FY2023 14,813 15,641 16,

  31. Slide 31: 4.2.2 Waterfall Chart of Consol. Revenue (YoY basis)

    4.2.2 Waterfall Chart of Consol. Revenue (YoY basis) GMO-FG’s initial revenue declined 21.9% from high base effect of terminal sales in the previous Q2 Consol. GMO-PG*3 GMO-PS*3 Consol. Overseas*3 Consol. （% YoY） GMO-FG*1*2 GMO-EP*1*3 （¥ bn） －6.0% +20.3% +5.7% +15.4% +30.1% +11.7% ¥20.4 bn 20 Other

  32. Slide 32: 4.3 BaaS Support and EF

    4.3 BaaS Support and EF*1 Processing PF revenue up 39.3%, expanding pipeline for next FY and beyond BaaS Support service revenue*2 (Q2) Progress of processing PF projects % YoY Est. revenue size (3-levels) NEW：Updates after Q1 FY2025 ■ Ginko Pay base system ■ Acquiring support (processing PF) FY2025

  33. Slide 33: 4.4.1 Revenue by Business Model (YoY)

    4.4.1 Revenue by Business Model (YoY) Initial declined from high base effect, spread growth improved to 21.4% % YoY Factors * (¥ mil) 40,757 H1 FY2024 H1 FY2025 40,000 36,099 Spread +14.9% +21.4% ＋ Online payment (GMO-PG) ＋ Overseas lending 16,852 ＋ CP payment 30,000 － Payment after Delivery 13,878

  34. Slide 34: 4.4.2 Consolidated Revenue by Business Model (Quarterly)

    4.4.2 Consolidated Revenue by Business Model (Quarterly) （¥ mil） 8,464 8,387 8,000 7,424 7,222 6,988 7,000 6,889 6,265 6,057 6,025 6,171 5,990 6,088 6,000 5,702 5,371 5,415 5,296 5,297 5,267 5,292 5,093 5,000 4,773 4,707 4,731 4,311 4,430 4,257 4,000 3,840 2,408 3,098 2,764 3,536 2,922 3,395 2,288 2

  35. Slide 35: 4.5 Consol. Segment Performance (YoY, Q2)

    4.5 Consol. Segment Performance (YoY, Q2) Payment processing business revenues excl. initial grew 21.2% Segment revenue* Segment profit/loss* % YoY % YoY (¥ mil) Q2 FY2024 Q2 FY2025 (¥ mil) Q2 FY2024 Q2 FY2025 9,000 20,000 +17.1% +11.7% +29.7% +18.1% +37.5% +18.6% 8,000 +27.0% +25.6% 15,000 +19.2% +

  36. Slide 36: 4.6.1 FinTech Related Asset (Quarterly Trend)

    4.6.1 FinTech Related Asset (Quarterly Trend) FinTech related asset （¥ mil） 140,000 120,000 % YoY 100,000 +34.4% 80,000 60,000 -2.7% 40,000 20,000 +6.0% 0 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 FY2021 FY2021 FY2022 FY2022 FY202

  37. Slide 37: 4.6.2 FinTech Revenue and Profits (Quarterly Trend)

    4.6.2 FinTech Revenue and Profits (Quarterly Trend) FinTech revenues and profit （¥ mil） 5,000 ％YoY +1.1% 4,000 ＋24.0% ＋28.0% 3,000 ＋5.4% 2,000 ＋19.5% 1,000 0 21/3Q 21/4Q 22/1Q 22/2Q 22/3Q 22/4Q 23/1Q 23/2Q 23/3Q 23/4Q 24/1Q 24/2Q 24/3Q 24/4Q 25/1Q 25/2Q GMO Payment After Delivery*1 Remittance servic

  38. Slide 38: 4.7.1 Consolidated CoS and SG&A Ratio (Quarterly Trend)

    4.7.1 Consolidated CoS and SG&A Ratio (Quarterly Trend) Cost of sales ratio fluctuates depending on revenue mix (¥ mil) 20,295 20,462 20,000 19,588 18,313 18,096 17,785 50.0% 18,000 16,546 16,118 15,641 16,000 40.9% 14,813 38.5% 40.0% 37.5% 12,201 37.2% 37.0% 36.6% 14,000 12,897 36.0% 34.6% 34.7% 13

  39. Slide 39: 4.7.2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly Trend)

    4.7.2 CoS/SGA Ratio of GMO-PG & GMO-EP (Quarterly Trend) CoS ratio trending stably for online payment business (¥ mil) 12,533 12,161 12,000 11,449 50.0% 10,681 10,511 10,158 10,000 41.2% 40.7% 9,564 9,083 9,219 9,177 40.0% 36.6% 35.6% 8,498 7,977 34.2% 34.1% 31.6% 7,906 8,000 7,682 7,122 32.5% 32.9%

  40. Slide 40: 4.8.1 Operating Stores, TRX Volume and Value

    4.8.1 Operating Stores, TRX Volume and Value Consol. TRX value reaches approx. ¥20.5 trn for the past 12 months Operating TRX Volume*2*3 TRX Value*2 Stores*1/IDs*2 End-Q2 FY2025 Q2 FY2025 Past 12-mnth Q2 FY2025 Past 12-mnth - 2.10bn 8.07 bn ¥5.3 trn ¥20.5 trn Consolidated % YoY - +18.7% +18.6% +14.5

  41. Slide 41: 4.8.2 Waterfall Chart of Consol. TRX Value (H1 YoY)

    4.8.2 Waterfall Chart of Consol. TRX Value (H1 YoY) Online GMV grew 17.8% excluding the local govt. project CP Online payment GMO-PG +12.3% Consol. +19.4% payment *1 Market stats +6.6% （% YoY） Non-merchandise EC Merchandise EC （¥ trn） GMO-PG +33.0% +14.2% +7.9% Market stats*1 - +9.7% +4.2% Other non

  42. Slide 42: 4.8.3 Distribution of Major Sectors (Q2 FY2025)

    4.8.3 Distribution of Major Sectors (Q2 FY2025) Balance both stability and growth through sector diversification Revenue share by industry (vertical axis)/ Revenue growth rate (horizontal axis)* Revenue (Based on actual figures for Q2 FY2025) proportion The size of the circle represents the TRX valu

  43. Slide 43: 4.9.1 Consolidated Cash Flow Statement (H1 FY2025)

    4.9.1 Consolidated Cash Flow Statement (H1 FY2025) （¥ mil） H1 FY2025 (¥ mil) 50,000 Operating CF : +26,604 Pretax profit +15,752 Deprec. & Amort. +1,858 40,000 Trade and other receivables －1,881 Advances paid －10,483 Accrued revenues －187 Accrued expenses +1,051 30,000 Deposits received +21,680 Inco

  44. Slide 44: 4.9.2 Major Factors Affecting Consolidated Cash Flow Statement

    4.9.2 Major Factors Affecting Consolidated Cash Flow Statement Related liabilities & assets Impact from business expansion Payment Processing Business Sales proceeds of Deposits received Liability Operating CF merchants under the (liability) Yearly fluctuations can be large as annual TRX value of Re

  45. Slide 45: 4.10 Consolidated EBITDA and EBITDA Margin (Quarterly)

    4.10 Consolidated EBITDA* and EBITDA Margin (Quarterly) （¥ mil） 10,000 100.0% 9,016 9,000 90.0% 8,157 8,000 7,720 80.0% 7,633 7,000 70.0% 6,594 6,588 6,289 6,000 5,853 60.0% 5,657 5,060 4,932 5,000 50.0% 44.1% 42.7% 41.7% 4,042 40.2% 39.2% 38.2% 37.4% 38.0% 4,000 37.1% 40.0% 33.6% 30.3% 30.6% 3,000

  46. Slide 46: 4.11 Sustainability

    4.11 Sustainability Acquired forest J-Credit* Compiled and disclosed procurement policy Acquired forest J-Credit from Tochimou Wood Compiled and disclosed the sustainable Industry in October 2024. procurement policy on April 2025 └Tochimou Wood Industry practices sustainable └ Shared the expectation

  47. Slide 47: Thank You Very Much

    Thank You Very Much GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange Prime) For inquiries or requests for 1-on-1 interviews, please contact the IR Department, Corporate Value Creation Strategy Division, at the telephone number below: TEL ： +81-3-3464-0182 E-mail ： ir-contact@gmo-pg.com IR Websi

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