http://corp.gmo-pg.com/ August 1, 2014 Themes:Achieving more than 20% profit growth, expecting to make a new record high profit 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 ) GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1)
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Financialresultsbriefingforthe3QofFY2014 · KC Card Co., Ltd. (June 2014) There is only a minor impact on independent e-commerce site Fierce competition between big online shopping
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h t t p : / / c o r p . g m o - p g . c o m /
Augus t 1 , 2014
Themes:Achieving more than 20% prof it growth,e x p e c t i n g t o m a k e a n e w r e c o r d h i g h p r o f i t
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 )
GMO Payment Gateway, Inc.(3769: Tokyo Stock Exchange section-1)
2Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
A Cautionary Note About the Contents of this Document
The contents of this document are based on generallyrecognized economic and social conditions, as well aspremises judged to be reasonable by GMO PaymentGateway as of August 1st, 2014.However, please note that they are subject to changewithout prior notice in the event of changes in thebusiness environment or other unforeseen occurrences.
3Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
1. Current status and future growth strategy
2. Financial highlights
3. Results forecast for the term ending September 2014
Agenda
4Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
1. Current status and future growth strategies
5Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
1.1 Recent topics
Yahoo Japan Co. purchased KC Card Co., Ltd. (June 2014)
There is only a minor impact on independent e-commerce site
Fierce competition between big online shopping malls
LINE Co. scheduled for listing on the Tokyo Stock Exchange(July 2014)
No impact: strengthened partnerships with growing companies like LINE Co. and support their growth with our service
Hope for further growth through leverage from raised funds and acceleration of its global expansion
Topic Expected changes Impact on our business performance
Japan Post plan to enter into credit card settlement services.(June 2014)
No impact: We have already established competitive advantage.But some services may have an impact and we need to pay attention to them.
Base of the BtoC-EC market will be broadened
Kakaku.com started mobile phone payments service for Tabelogʼs merchants.(May 2014)
“GMO Pallet” allows simple payments using only a smartphone app.
Competition may intensify due to the same kind of services
LOCKON CO., LTD. launched the new service package to create BtoB-EC site in Sept.(June 2014)
Strengthening collaboration to maximize benefit
Expansion of the BtoB-EC markets will be supported
6Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
1.2 Forecasts and business model
2014 Around 2020
EC ratio 3% 10%
BtoC ECMarket scale ¥10 Trillion Around 30 trillion
Amount of processed payments
(GMO-PG Group)¥1.3 trillion 4 trillion +α
Ordinary income of GMO-PG ¥2.5 billion 7.5 billion +α
(Forecast:2014/9)
30%
+α10 billion
BtoB-EC businessPayment-related business
・Initial ・Stock・Fee
・Spread
・Fee
3+α times
3 times
3+α times
Expanding market share
Achieve growth of over 10 billion yen in ordinary incomeby creating new markets and improving Japanʼs EC ratio
Large-sizedenterprises
Medium-sized companies
Small businesses(Long-tail)
Payment processingbusiness
Payment processing+α
Payment processing+α
※References:METI, [Market report in regard to EC 2013]
7Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
1.3 Expanding business fields
Provide a payment platform to solve our merchantsʼ problemsBusiness related
Recurring payment Online payment Number of operating stores
0
1,000
2,000
3,000
4,000
2.8 Transition of major factors (Quarterly changes)
Number of operating stores, number and amount of processed payments grew immensely
Payments occurring only once a year like automobile tax and other Public moneys tend to concentrate in April/May
Number of operating stores 48,532/Amount of processed payments ¥370 billion/ Number of processed payments 166millionAmount of
processed payments(100 million yen)
Number of processed payments (10,000 trx)
Number of operating
stores
Share of merchant acquiring service revenue
in settlement amount: 20%(June 2011)
Share of the merchant acquiring service revenuein the settlement amount:
30%
(Number of operating stores is calculated at end of quarter; amount/number of processed payments is result for each quarter)Amount of processed payments
21Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
10/3
10/6
10/9
310
/12
11/3
11/6
11/9
11/1
212
/312
/612
/912
/12
13/3
13/6
13/9
13/1
214
/314
/6
Amount of processed payments
2.9 New business
New business and major factors■Online advertising service(GMO-PG)
10/3
10/6
10/9
310
/12
11/3
11/6
11/9
11/1
212
/312
/612
/912
/12
13/3
13/6
13/9
13/1
214
/314
/6
Sales
■GMO-PS
■SAPS
10/3
10/6
10/9
10/1
211
/311
/611
/911
/12
12/3
12/6
12/9
12/1
213
/313
/613
/913
/12
14/3
14/6
Ordinary income
■COC
10/3
10/6
10/9
10/1
211
/311
/611
/911
/12
12/3
12/6
12/9
12/1
213
/313
/613
/913
/12
14/3
14/6
Ordinary income
Established in March 2010
Joined as an Equity methodapplication concernedcompany in January 2010
22Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
3. Results forecast for the term ending September 2014
23Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.
Sales Ordinary income Net income Ordinary income ratio Dividend
¥6.25 ¥7.50
¥8.75
¥10.50 ¥11.75
¥15.50
¥19.50
¥24.50
¥28.50
3.1 Summary of Consolidated Results (Forecast)
Investment continues though ordinary profitgrowth rate returns to 20%
※% yoy
By continuing prior investment and sales mix (Sale of value-added services with high cost price rate), sales amount for the ordinary profit rate is expected to move sideways.
Sales+20.3%
Ordinary income+20.1%
Net income+16.8%
listed on the TSE
24Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved.