Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q1 FY2020 Earnings Presentation

29 slides from Gmo Payment Gateway's earnings presentation, Feb 13, 2020

  1. Slide 1: Financial Results Briefing for Q1 FY2020

    Financial Results Briefing for Q1 FY2020 From Offline to Digital Data; Sustainable Growth Through Expansion of Digital Transformation Platform February 13, 2020 The 60 th IR Meeting GMO Payment Gateway, Inc. h tt p s :/ / c o rp. g m o - p g . c o m / (3769; Tokyo Stock Exchange First Section) Copyr

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement The contents of this document are based on generally recognized economic and social conditions, as well as assumptions judged to be reasonable by GMO Payment Gateway as of February 13, 2020. Please note that the contents are subject to change without prior notice in the event o

  3. Slide 3: Agenda

    Agenda 1. Summary of financial results for Q1 FY2020 2. Future initiatives and growth strategy 3. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3

  4. Slide 4: Summary of financial results for Q1 FY2020

    1. Summary of financial results for Q1 FY2020 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4

  5. Slide 5: Financial Results Summary (IFRS)

    1.1 Financial Results Summary （IFRS） Exceeded company plans; strong start to reach FY2020 OP ¥10.3bn guidance Q1 FY2019 Q1 FY2020 FY2020 1H % achievement vs. （Mil. Yen） % YoY Actual Actual Guidance 1H guidance (Full Year guidance)（vs. Full Year guidance） Revenue 8,246 9,030 ＋9.5％ 17,116 52.8% （36,61

  6. Slide 6: 1Q Revenue: Factors behind the 9.5% YoY growth

    1.2.1 1Q Revenue: Factors behind the 9.5% YoY growth Exceeded company plans: PG like-for-like online payment revenues grew strongly at approx. 25% YoY ■ Consol. revenue & PG like-for-like ※ online payment revenue ＜Positive factors＞ （Mil. Yen） Consolidated revenue ・PG like-for-like online payment rev

  7. Slide 7: Factors affecting profits: OP & Pretax profit

    1.2.2 Factors affecting profits: OP & Pretax profit Higher SG&A due to increased provisioning; Pre-tax profit uplifted from higher equity method income (Mil. Yen) ■ Pre-tax profit waterfall chart （Mil. Yen） ■ OP waterfall chart GP SGA Equity method increase increase income ＋470 2,728 ＋605 ＋621 Finan

  8. Slide 8: Segment revenue and OP YoY comparisons

    1.3 Segment revenue and OP YoY comparisons All segments exceeded company plans ■Segment revenue ■Segment OP (): % YoY （Mil. Yen） （Mil. Yen） 10,000 1,566 （+4.8％） Consol. ＋ MACROKIOSK in line with 3,300 9,000 internal plans Consol. OP: +0.2％ Revenue: +9.5％ － Impact of online advertising 336（－47.9％） 8,

  9. Slide 9: Conclusions

    1.4 Conclusions Q1 results exceeded company plans; return to growth trajectory by executing on the priority initiatives 1. Q1 beat company plans, progressing ahead of plans Takeaways Online: steady progress in acquiring new merchants, business expansion with existing merchants Offline: expanding cas

  10. Slide 10: (Reference) Growth trend of revenue and OP

    (Reference) Growth trend of revenue and OP Q1 returns to baseline growth rate after the impact of spike in growth in the previous Q1 ■ Quarterly trend of revenue and operating profit (%: YoY change) Current Q1 （Mil. Yen） 9,000 Revenue Previous Q1 ＋9.5％ Baseline growth Revenue 8,000 ＋35.2％ 7,000 6,00

  11. Slide 11: Future initiatives and growth strategy

    2. Future initiatives and growth strategy Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 11

  12. Slide 12: Management targets and requisites

    2.1 Management targets and requisites Achieve OP milestone of ¥25bn by continually realizing multi- billion-yen scale business projects OP 2020 2025 2030 （Mgmt Target）¥10.3bn ¥25.0bn ¥100.0bn ＋¥15.0bn ■ 10-year growth of data & delivery parcels Management Requisite (estimate) 1,000x ? Continually re

  13. Slide 13: Progress of priority initiatives

    2.2 Progress of priority initiatives Initiatives to generate incremental ¥15bn OP to begin contribution from latter part of the year ■ Progress of priority initiatives post-2020 and expected timing of contribution to P/L 2020 2021 2025 1H 2H 1. DX platform Current stera Issuing/Acquiring Financial G

  14. Slide 14: DX Platform

    2.3.1 DX Platform Achieve ¥18bn OP by 2025 from the broader EC domain by expanding into non-EC areas ■OP potential from broader EC※1 ■ TRX value: breakdown of merchandise ※2 (Incl. DX platform) ¥18.0bn+ and non-merchandise EC 5 ×1.2 Approx. ¥8.3bn Non-merchandise EC approx. 40% CAGR 2020 2020 列2 202

  15. Slide 15: DX platform: Financial industry

    2.3.2 DX platform: Financial industry Expand the financial industry p/f and rollout to enterprises to accelerate growth ■Quarterly trend of stock revenue: expanding our ■OP potential of financial industry p/f financial service business ¥1.0bn+ NEW Platform system provided for 5 ×1.25 Enterprise-vers

  16. Slide 16: Offline Payment (IoT)

    2.4 Offline Payment (IoT) Realize high growth in the huge offline payment market through stera and capturing the Unattended Market ■ OP potential of offline payment (IoT) ■Quarterly trend of Initial revenue ¥2.0bn + from Offline market （Mil. Yen） 5 ×1.4 600 ＋102.9％ Approx. YoY ¥0.4bn 500 2020 2020 列

  17. Slide 17: FinTech: Expanding high-margin services

    2.5 FinTech: Expanding high-margin services Expand high margin services and further raise the capital efficiency ※ ■OP potential of FinTech ■Asset balance of high-margin services ¥3.0bn+ 5 Up 106.7％ vs ×1.2 End-Dec 2017 Approx. GMO Payment ¥1.3bn After Delivery Overseas Lending 2020 2020 列2 2025 202

  18. Slide 18: Global Business

    2.6 Global Business Financial results of investees are strong especially at 2C2P; accelerating growth of payment processing and lending ■ Investments and Borrowers of GMO-PG and GMO Global Payment Fund; Revenue trend by service Standout investee Borrower Newly established Japan US Investment gains/l

  19. Slide 19: Financial Highlights

    3. Financial Highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 19

  20. Slide 20: Balance Sheet Changes

    3.1 Balance Sheet Changes Increase in deposits received and MSB-related assets （Mil. Yen） Liabilities and Equity （Mil. Yen） Assets 160,000 171,904 160,000 171,904 Includes 140,000 62,683 deposits received from 140,000 65,139 139,990 few merchants 139,990 due to New 120,000 Year holiday 120,000 46,75

  21. Slide 21: FinTech: Assets and profit growth

    3.2 FinTech：Assets and profit growth Steady growth of high-margin services; YoY decline from reversals of provisions booked in the previous year ■ MSB related assets ■Segment revenue ■Segment OP (%: YoY change) +19.9％ －46.2％ +3.5％ －38.0％ ＋967.8％ ＋846.1％ －47.9％ －14.3％ Impact from +18.8％ change in pro

  22. Slide 22: Revenue by business model

    3.3.1 Revenue by business model (Mil. Yen) Spread ＋4.8％ YoY 9,000 （+）Strong online payment excl. one-offs （+）Growth of GMO Payment After Delivery 8,000 (2 week term) 3,770 （－）Impact of cashless initiatives (point rebate) 7,000 3,595 Fee ＋5.1％ YoY 6,000 （＋）Strong online payment excl. one-offs （＋）Stro

  23. Slide 23: Quarterly trend of revenue by business model

    3.3.2 Quarterly trend of revenue by business model ※ J-GAAP IFRS 3,770 (Mil. Yen) 3,595 3,468 3,500 3,379 3,250 3,230 3,072 2,971 2,997 3,059 3,000 2,946 2,861 2,653 2,773 2,691 2,801 2,705 2,666 2,436 2,500 2,471 2,360 2,101 2,004 2,000 1,895 1,809 1,527 1,500 1,383 1,441 1,362 1,259 1,240 1,264 1,

  24. Slide 24: Revenue trend by business model (annual)

    3.3.3 Revenue trend by business model (annual) （Mil. Yen） 40,000 J-GAAP IFRS 38,000 36,000 34,000 32,000 30,000 28,000 Spread 26,000 24,000 22,000 20,000 18,000 16,000 14,000 Fee 12,000 10,000 8,000 6,000 4,000 Stock 2,000 0 Initial 2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013

  25. Slide 25: Quarterly trend of CoS and SGA ratio

    3.4.1 Quarterly trend of CoS and SGA ratio CoS ratio fluctuates with changes in revenue mix J-GAAP IFRS *Figures with asterisk exclude outsourcing expense related to MSB. (Mil. Yen) These outsourcing expenses are not booked in SG&A from December 2017 (Q1) due to IFRS adoption. ※44.5％ ※47.2％ 9,030 9,

  26. Slide 26: Quarterly trend of PG and EP's CoS and SGA ratio

    3.4.2 Quarterly trend of PG and EP’s CoS and SGA ratio CoS ratio fluctuates with changes in revenue mix (Mil. Yen) ※All figures are based on J-GAAP. 8,000 50.9% 48.8% 50.0% 47.4% 44.9% 45.3% 45.2% 44.8% 7,000 42.5% 41.3% 40.0% 6,000 36.7% 36.8% 36.5% 33.5% 33.1% 34.0% 36.7% 5,032 5,142 5,126 4,840 5

  27. Slide 27: Consolidated CF Statement

    3.5 Consolidated CF Statement (Mil. Yen) ■Q1 FY2020 changes 20,000 J-GAAP IFRS (Mil. Yen) 18,000 Operating CF: ＋¥16,985 16,000 Pretax profit +¥2,728 Chgs in rcvbls ＋¥448 14,000 Advances paid －¥6,690 12,000 Accrued income －¥5,591 10,000 Chgs in payables ＋¥577 8,000 Accrued expenses ＋¥5,401 6,000 Depo

  28. Slide 28: Major Quarterly KPIs

    3.6 Major Quarterly KPIs Group-wide annual TRX value reaches ¥4.9 trillion ※1 Operating stores: 121,700 stores, TRX volume 540 mil., TRX value approx. ¥1.2 trillion. (Billion yen) （Reference）Consolidated TRX value: Approx. ¥4.9 trillion 13,000 (Stores) TRX value excl. GMO-FG: Approx. ¥4.5 trillion (

  29. Slide 29: Thank You Very Much

    T h a n k Yo u Ve r y M u c h GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange, Section 1) URL： https://corp.gmo-pg.com /en /ir/ For inquiries please contact our IR team at the telephone number below: Corporate Value Creation Strategy Division (IR Department) TEL: +81-3-3464-0182

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