Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Q3 FY2014 Earnings Presentation

26 slides from Gmo Payment Gateway's earnings presentation, Aug 1, 2014

  1. Slide 1: Financial results briefing for the 3Q of FY2014

    Financial results briefing for the 3Q of FY2014 （ O c t o b e r 1 , 2 0 1 3 - J u n e 3 0 , 2 0 1 4 ） Themes：Achieving more than 20% profit growth, expecting to make a new record high profit August 1, 2014 GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h t t p : / / c o r p . g m o

  2. 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 August 1st, 2014. However, please note that they are subject to change withou

  3. Slide 3: Agenda

    Agenda 1. Current status and future growth strategy 2. Financial highlights 3. Results forecast for the term ending September 2014 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 3

  4. Slide 4: 1. Current status and future growth strategies

    1. Current status and future growth strategies Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 4

  5. Slide 5: Recent topics

    1.1 Recent topics Topic Expected changes Impact on our business performance Japan Post plan to enter into Base of the BtoC-EC market will be No impact: We have already established credit card settlement broadened competitive advantage. services.（June 2014） But some services may have an impact and we

  6. Slide 6: Forecasts and business model

    1.2 Forecasts and business model Achieve growth of over 10 billion yen in ordinary income by creating new markets and improving Japanʼs EC ratio 2014 Around 2020 EC ratio 3％ 10％ 30％ Large-sized Payment processing business enterprises ・Initial ・Stock ・Fee BtoC EC Market scale ¥10 Trillion 3 times Aro

  7. Slide 7: Expanding business fields

    1.3 Expanding business fields Provide a payment platform to solve our merchantsʼ problems （Merchant Consumer Merchant support） Gateway Network Business related ①1995, Started Payment ④2011, Online ⑥2013, launched processing business Advertising Payment after service ②2005, Listed and delivery（GMO-PS

  8. Slide 8: Global trends

    1.4 Global trends Looking at business trends, strengthening our business foundations （Merchant Consumer Merchant support） Gateway Network Business related Major companyʼs business GMO-PG Wirecard expansion in overseas Klarna （Payment after delivery） GMO-PG markets New players rise steadily GMO-PS Am

  9. Slide 9: Expansion of our business market

    1.5 Expansion of our business market Challenging large market, not limited to narrow sense BtoC-EC BtoB market BtoC market CtoC Market ・1,000 trillion yen market ・Dawn of the CtoC EC market ・Narrow sense BtoC-EC ・Credit card payments are not ・Fast-growing market market ¥9.5 trillion widely available

  10. Slide 10: BtoB market: Credit card payment

    1.6 BtoB market：Credit card payment Support credit card payment processing of untapped mega market BtoB market Strategy 1：Visa Business Pay ¥1,000 trillion （from large-sized enterprises to small businesses） VISA plan to hold Visa Business Large-sized Pay Seminar of from August enterprises Strategy 2

  11. Slide 11: Lending service by using transaction analysis

    1.7 Lending service by using transaction analysis New service to support growth of our merchants Lending money to support growth Business related Consumer Merchants GMO-PG Credit card company etc Payment transaction analysis Pre-launch trial is being conducted this Fiscal Year, full-scale business w

  12. Slide 12: 2. Financial highlights

    2. Financial highlights Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 12

  13. Slide 13: Summary of Consolidated Results

    2.1 Summary of Consolidated Results More than 75% of forecast annual sales and income Compared to the accumulated Compared to the accumulated FY2014 (ending September 2014) results for 3Q FY2013 forecast for FY2014 （Million yen） 3Q 2Q 1Q 2Q 3Q accumulated Results % Change Progress results Forecast S

  14. Slide 14: Summary of Consolidated Balance Sheets

    2.2 Summary of Consolidated Balance Sheets No major changes Results for Results for Results for Results for （Million yen） Change （Million yen） 3Q, FY2014 3Q, FY2013 Change 3Q, FY2014 3Q, FY2013 Current assets 22,967 16,636 6,330 Current liabilities 18,346 12,701 5,644 Cash and deposits 21,029 15,215

  15. Slide 15: Sales/Ordinary income (Quarterly changes)

    2.3 Sales/Ordinary income (Quarterly changes) Impact of the consumption tax hike was small – Sales up +24.2％ YOY Compared to last 3Q Compared to last 3Q ■Sales +24.2％ ■ Ordinary income +22.1％ （1,000 yen） Sales of special （1,000 yen） system 700,000 684,886 development 1,842,793 1,825,574 1,800,000 40

  16. Slide 16: Impact of the consumption tax hike

    2.4 Impact of the consumption tax hike No major impact on the EC market Private consumption Number of processed payments integrated estimates (online) （2008/1=1;Index） 6 120 Number of processed payment (online) private consumption integrated estimates Consumption tax hike 5 115 4 110 3 105 2 100 The

  17. Slide 17: Cost of sales ratio/SG&A ratio (Quarterly changes)

    2.5 Cost of sales ratio/SG&A ratio（Quarterly changes） Cost of sales ratio deteriorated due to increase in sales of value-added services that exceeded initial plan （1,000 yen） Sales of special 2,000,000 system development 70.0% 40 million yen 1,842,793 1,825,574 1,800,000 1,645,144 60.0% 58.5% 1,563,

  18. Slide 18: Sales results for each segment (Quarterly changes)

    2.6 Sales results for each segment（Quarterly changes） Good results for Merchant acquiring service revenue Initial revenue fluctuated according to system sales （1,000 yen） 700,000 YOY 670,573 689,264 （1Q） （2Q） (3Q) Initial revenue +37.0％ +55.8％ -3.9％ 600,000 Monthly revenue +27.9％ +29.0％ +26.7％ 568,8

  19. Slide 19: Sales results for each segment

    2.7 Sales results for each segment Balanced growth in all segments （％:YOY） -3.9％ +26.7％ +22.0％ +30.1％ New service New service New service Lending service Online Delivery service, Others advertising etc 2％ New service 8％ service 24％ Payment system development & SSL 38％ Payment Payment Payment process

  20. Slide 20: Transition of major factors (Quarterly changes)

    2.8 Transition of major factors (Quarterly changes) Number of operating stores, number and amount of processed payments grew immensely Number of operating stores 48,532/Amount of processed payments ¥370 billion/ Number of processed payments 166million Number of Number of processed Amount of operatin

  21. Slide 21: New business

    2.9 New business New business and major factors ■Online advertising service ■SAPS Sales Ordinary income （GMO-PG） Established in March 2010 10/3 10/6 10/9 10/12 11/3 11/6 11/9 11/12 12/3 12/6 12/9 12/12 13/3 13/6 13/9 13/12 14/3 14/6 10/93 10/12 11/12 12/12 13/12 10/3 10/6 11/3 11/6 11/9 12/3 12/6 12

  22. Slide 22: 3. Results forecast for the term ending September 2014

    3. Results forecast for the term ending September 2014 Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 22

  23. Slide 23: Summary of Consolidated Results (Forecast)

    3.1 Summary of Consolidated Results (Forecast) Investment continues though ordinary profit growth rate returns to 20% （1,000 yen） 7,000,000 6,934,000 40% By continuing prior investment and 35.5% sales mix 37.5% 34.3% 36.4% 36.5% 37.0% 35.5% (Sale of value- 6,000,000 32.8% 33.2% 5,764,085 added servi

  24. Slide 24: Sales for Each Segment (Forecast)

    3.2 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） ※％ yoy Because of expansion of listed on 6,000,000 the TSE the ECmarket, we forecast that merchant acquiring service revenue is going +

  25. Slide 25: Cost of sales ratio and SG&A ratio (Forecast)

    3.3 Cost of sales ratio and SG&A ratio (Forecast) Find balance between cost of sales ratio and SG&A ratio (1,000yen） 7,000,000 6,934,000 60% SG&A • Employment of highly 6,000,000 52.0% 50.8% 50.6% talented personnel 5,764,085 47.7% 49.0% 48.1% 49.0% 47.7% • Establishing new company (GMO-PS) • Rent e

  26. Slide 26: 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

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