Slide 1: Financial results briefing for the 1Q of FY2017
Financial results briefing for the 1Q of FY2017 (October 1, 2016-December 31, 2016) Growth acceleration toward 2020 target February 6, 2017 The 48 th IR Meeting 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 Note About the Contents of this Document
A Note About the Contents of this Document 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 6, 2017. However, please note that they are subject to change without prior
Slide 3: Agenda
Agenda 1. Summary of Financial Results for 1Q FY2017 2. Performance Forecast of FY2017 3. Strategies for Future Growth 4. Financial Highlights 5. Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3
Slide 4: Summary of Financial Results for 1Q FY2017
1. Summary of Financial Results for 1Q FY2017 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4
Slide 5: Summary①
1.1 Summary① Strong start: OP up 38%, EBITDA up 42% Consolidated Consolidated results of 1Q, FY2016 Progress rate against plan results of 1Q, (cumulative) （Million yen） FY2017 (cumulative) Actual Change Change% 1H Actual Sales 4,346 2,732 1,614 59.1％ 51.8% 23.2% Gross income 3,237 2,117 1,119 52.9％
Slide 6: Summary②
1.2 Summary② OP and ordinary income growth as planned, net income affected by income tax accounting (+)Payment processing business in good shape 5,000 Million yen (+)Consolidated results include GMO-FG and GCS (+)GMO payment after delivery creates extra sales for MSB 4,500 +59.1％ 4,000 (－)The ratio
Slide 7: Quarterly change and forecast
1.3 Quarterly change and forecast ％: YoY Sales growth over forecast, OP as planned ( ): forecast ■ FY2017 Forecast（Consolidated） (+30.3％) Sales (+64.7％) Operating Income （1,000 yen） （1,000 yen） (+28.9％) 5,000,000 (+60.3％) +37.9％ (+53.5％) (+37.8％) +59.1％ (+28.5％) 4,000,000 (+38.6％) 1,000,000 3,000,00
Slide 8: Sales/Operating income by Segment (Cumulative)
1.4 Sales/Operating income by Segment (Cumulative) OP up more than 25% in all segments * ％: YoY ■Sales by segment ■ OP by segment（prior to intercompany eliminations） （1,000 yen） （1,000 yen） 42,715 345,089 1,600,000 +54.8％ 4,000,000 +21.9％ 1,400,000 178,150 3,500,000 1,189,294 +323.9％ +177.5％ 1,200,0
Slide 9: Revenue Breakdown by Business Model (Cumulative)
1.5 Revenue Breakdown by Business Model(Cumulative) Spread revenue up 46.5％、Fee revenue up 86.0％ due to GMO payment after delivery growth (1,000 yen) Spread YoY+46.5％ ・MSB has continued to steadily grow (Early payment・FL) 4,000,000 ・Amount of processed payments has increased (up to 2 trillion yen in
Slide 10: Performance Forecast for FY2017
2. Performance Forecast for FY2017 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 10
Slide 11: Forecast (Summary)
2.1 Forecast (Summary) OP forecast remains unchanged, up 31.2％ excluding GMO payment after delivery growth ■ FY2017 forecast (Million yen, ％ yoy) Operating Ordinary Net Sales income income income EBITDA Full year 18,767 (54.9％) 5,013 (31.2％) 4,673 (23.6％) 2,762 (-5.1％) 5,811 （38.7％） 2Q of FY 8,389 (
Slide 12: Changes in Consolidated Performance (FY2017 Forecast)
2.2 Changes in Consolidated Performance (FY2017 Forecast) ¥37.00 * YoY change of （1,000 yen） 18,767,000 performance forecast ¥27.00 18,000,000 Sales +54.9％ ¥18.00 16,000,000 ¥15.00 Operating income +31.2％ ¥12.25 Ordinary income +23.9％ 14,000,000 ¥9.75 ¥7.75 ¥5.25 ¥5.88 Net income －5.1％ ¥4.38 12,113,
Slide 13: Strategies for Future Growth
3. Strategies for Future Growth Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 13
Slide 14: Industry topics
3.1 Industry topics Our position regarding recent issues ■Development of FinTech environment: to revise Law of Financial Services Agency, plan to introduce a registration system for “online payment processing service providers” (Nikkei, Jan 27 th, 2017） ・Positive law revision for major companies wit
Slide 15: Mid-term goals
3.2 Mid-term goals Measures to achieve OP of 10 billion yen by 2020 OP goals Environment・Measures Payment processing business Card-present area MSB Global business ④Global business 10 billion Environment: Competition for leadership with global major yen players ④ Measures: Acquired MK (strategic mov
Slide 16: Ecosystem model
3.3 Ecosystem model All services involve in increasing our merchants’ sales and our payment processing More payment processing Payment processing Analysis / Conclusion Payment processing Ad service Finance service Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 16
Slide 17: Payment processing business: Methods expansion
3.4 Payment processing business: Methods expansion Expanding services other than online credit card payments (Scale factor: comparison to2010) Changes in amount of non-credit card Amount of major types of non-credit payments processed (Online) card payments processed (Online) and of card-present pay
Slide 18: Payment processing business: Services for financial institutions
3.5 Payment processing business: Services for financial institutions Delivering value as a “Rebundling player” of FinTech Complementation and coexistence of Replacement of existing financial services existing financial services Payment processing service P2P remittance Remittance service (money tran
Slide 19: Payment processing business: B2B
3.6 Payment processing business: B2B New measures to accelerate B2B market cultivation ･Added “Paid” in ”Payment package for B2B E-commerce” (service launch is April 2017) B2B EC market：288 tr. yen* ･Collaboration with external partners and expansion of partnership -Partnership with cloud billing bu
Slide 20: Payment processing business: Taxes
3.7 Payment processing business: Taxes Started operation of “National tax payment website” (URL： https://kokuzei.noufu.jp/ ) + Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 20
Slide 21: Payment processing business: Card-present market
3.8 Payment processing business: Card-present market Focus on a new growth area of card-present market: Payments + IoT Embedded EMV terminals ■GMO-FG Group, OP (Actual & Forecast) Available devices Existing area Growing area EMV・cashless without PIN with PIN with PIN Target 2,500K units 960K units 2
Slide 22: MSB (Money Service Business)
3.9 MSB (Money Service Business: MSB) Growth in sales, OP, and assets related to MSB (1,000 yen) Sales: 2.8 times 30,000,000 Assets related to MSB: 3.7 times 25,000,000 Sales related to MSB assets 3.1 times 20,000,000 15,000,000 10,000,000 OP 5,000,000 4.2 times 0 Transaction lending Early payment T
Slide 23: Business expansion: MACROKIOSK
3.10 Business expansion: MACROKIOSK Increased number of mobile transactions as the usage of online accounts grows. Acquired orders from finance and transport related businesses in Indonesia and the Philippines. ■MK 2016: Changes in SMS traffic ■MK October-December 2016: major orders (January-March p
Slide 24: Financial Highlights
4. Financial Highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 24
Slide 25: Consolidated Balance Sheet
4.1 Consolidated Balance Sheet Short-term debt of 4 billion yen due to MSB expansion Results for 1Q, Results for 1Q, Results for Results for 1Q, (Million yen) FY2017 FY2016 Change (Million yen) 1Q, FY2017 FY2016 Change Current assets 68,067 44,807 23,260 Current liabilities 58,677 33,764 24,913 Cash
Slide 26: Cash flow chart
4.2 Cash flow chart Borrowed approx. 4 billion yen at the end of October due to MSB expansion (Million yen） FY2016 FY 2017 １Q Operating activities CF -748 6,685 Investing activities CF －3,415 －656 Financing activities CF －654 2,983 Effect of exchange rate changes on cash －107 4 Cash increase/decreas
Slide 27: Changes to major KPI (Quarterly change)
4.3 Changes to major KPI (Quarterly change) Annual amount of processed payments exceeded 2 trillion yen Number of operating stores 81,990/ Amount of processed payments approx. ¥570 billion/ Number of processed payments approx.249 million (Amount of (10 thousands processed payments of processed (Numb
Slide 28: Reference Materials
5. Reference Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 28
Slide 29: Summary of Consolidated Results
5.1 Summary of Consolidated Results OP up 38％, EBITDA up 42％ 1Q of FY2017 YoY 1Q of FY2016 （Million yen） Proportion of YoY Proportion of Actual sales (%) Change change(%) Actual sales (%) Sales 4,346 100% 1,614 +59.1% 2,732 100% COGS 1,109 25.5% 494 +80.4% 615 22.5% Gross income 3,237 74.5% 1,119 +5
Slide 30: Revenue Breakdown by Business Model (Quarterly Change)
5.2 Revenue Breakdown by Business Model (Quarterly Change) Substantial increases in all categories (1,000 yen) YoY 1,692,544 1,600,000 Initial +143.0％ 1,434,642 Stock ＋31.7％ 1,409,342 1,400,000 1,326,433 Fee ＋86.0％ 1,280,987 1,200,000 Spread ＋46.5% 1,148,987 1,155,545 1,000,000 912,232 873,483 889,9
Slide 31: COGS Ratio/SG&A Ratio (Quarterly Change)
5.3 COGS Ratio/SG&A Ratio (Quarterly Change) The COGS ratio fluctuates according to proportion of sales (1000 yen) 4,346,814 * Excluding MSB-related outsourcing expenses * 50.2％ 52.7% * 44.5％ 4,000,000 50.9% 50.3% 50.0% * 42.6％ * 37.4％ 46.8% 45.6% * 39.8％ * 41.9％ 3,500,000 43.2% 42.9% 43.5% 43.8% *
Slide 32: Segment/ Revenue model/ Service
5.4 Segment/ Revenue model/ Service ３ Segments, 4 Revenue models ３Segments Payment processing ４Revenue models Payment processing (including FG) Payment processing Initial System development SSL business （Initial revenue） GMO Financial Gate System development etc etc Payment processing GMO payment af
Slide 33: Thank you very much!
Thank you very much! ＧＭＯ Payment Gateway, Inc. (TSE 3769) IR website http://corp.gmo-pg.com/en/ir/ For more information, please contact the Corporate Value Creation Strategy Division Investor Relations Office Phone: +81-3-3464-0182