financial results briefing for q2 of fy2019...financial results briefing for q2 of fy2019...

Financial results briefing for Q2 of FY2019

Initiatives to Secure Post-2020 Growth and Tackling Near Term Challenges

GMO Payment Gateway, Inc.

May 10, 2019

(Code: 3769; TSE-1st section) h t t p s : / / c o r p . g m o - p g . c o m / e n /

The 57 th IR Meeting

https://corp.gmo-pg.com/en/

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

A cautionary note about the contents of the 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 May 10, 2019. However, please note that they are subject to change without prior notice in the event of changes in the business environment or other unforeseen occurrences.


Agenda

1. Summary of financial results for Q2 FY2019

2. Future initiatives and growth strategy

3. Financial highlights

4. Reference materials


1. Summary of financial results for Q2 of FY2019


METI “Point Reward Project for Consumers using Cashless Payment”

・3 Group companies (i.e. GMO-PG, GMO-EP, SGP) have provisionally registered as cashless supporter (Type B)

・Measures taken to counter adverse impact to merchants with an >3.25% MDS primarily in the card present market

M&A activity among global major payment gatewaysFIS (Fidelity National Information Services) acquires UK’s Worldpay

SoftBank Group invests in Germany’s Wirecard via CBs

・We remain focused on executing timely investments for the imminent global competition

Japan Post Bank Inc. launches “Yucho Pay,” a QR-code payment service・We are positioned to drive cashless-ness as partners to both financial and internet companies

US FinTech Affirm raises funds from major institutional investors, enters BtoB market

JPMorgan enters into POS financing space (deferred payment)・The financial leading company hones in on BtoB and deferred payment business

1.0 Industry Topics

Our position/stance on recent issues and topics

(METI, March 12th 2019)

(Nikkei, March 19th, 2019）

(Bloomberg, April 24th, 2019）

(Nikkei, May 5th, 2019)

(ZDNet, April 23rd, 2019）

(Forbes, March 4th, 2019）

※GMO-PG: GMO Payment Gateway, EP: GMO Epsilon, SGP: SMBC GMO Payment


（mil. JPY）H1 FY2018

Actual

H1 FY2019

Actual% YoY

FY2019 Full

Yr. guidance

% Progress

vs. guidance

Revenue 12,558 16,015 ＋27.5％ 31,850 50.3%

Operating Profit 3,269 4,258 ＋30.2％ 8,300 51.3%

1,962 2,578 ＋31.4％ 5,106 50.5%

EBITDA 3,702 4,753 ＋28.4％ - -

1.1 Financial Results Summary

Operating Merchants

(end-Q2）TRX Volume（Q2） TRX Value（Q2）

KPI133,199 stores

（＋50.2％）

≒ 420 mil.

（＋29.6％）

≒ ¥1.0 trillion

（＋24.9％）

*1 EBITDA＝OP＋ Depreciation *2 Excludes card present figures, () indicates YoY changes.

*2

（H1 Guidance）（vs H1 Guidance）

Revenues up 27.5% YoY, OP up 30.2% YoY, beating guidance

Profit attributableto owners of Parent

*1

（15,202）

（4,150）

（2,424）

（105.3％）

（102.6％）

（106.3％）


1.2 Regarding Full year guidance and trend of micropayments

On track to achieve Full Year guidance despite various issues

2. TRX Volume (Q2) ≒ 420 million, up by 29.6％ YoY

TRX Value (Q2) ≒ ¥1.0 trillion, up by 24.9% YoY

1. On track to achieve full year guidance

Factor 1: Increase in micropayments Smartphone payments and payment for digital contents etc.

Factor 2: Unfavorable comps given last term’s surge in payment relatedto cryptocurrency trading

Even after increasing provisions for bad loans and mainframe upgrade expenses


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Revenue Operating Profit Profit Attributable to

Owners of Parent

EBITDA

2Q FY2018 2Q FY2019

*Adjusted figures show the impact from the change in revenue recognition from lump sum (in Initial) to prorated over service period (Stock)

1.3 Q2-only earnings

+30.2％

+36.1％

+20.3%

Q2 standalone OP was up 30.2% YoY, while revenue growth was up by 20.3% YoY

+28.4％

Mil. JPY

Spread

Fee

Stock

Initial

Up by 16.0% YoY

Up by 22.0% YoY

Up by 47.4% YoY （Adj. 26.5% YoY)*

Down by 17.8% YoY （Adj. 27.0% YoY)*

Under 25％

Revenue by business model


1.4 Reasons for Q2-only revenue increase of 20.3％ YoY

Revenue affected by one-offs and special factors, but topline growth to accelerate from Q3 onwards

※ Forecast for 2019/3Q・4Q is based on estimates as of May 7th 2019.

（Mil. JPY）

・Change in revenues from some merchants in the previous term

・Planned service termination at a merchant・Revenue decline from a merchant

(special factor)

・Software development revenue bookedin previous 2Q

Excluding above factors, revenue growth would be ≒24% YoY

1. Adherence to schedule for onboarding of new customers

2. Increasing merchants with defensive businesses

3. Create industry specific platforms

【Factors】

【Counter measures】

Revenue growth to re-accelerate

from Q3 onwards5,000

6,000

7,000

8,000

9,000

2018/1Q 2018/2Q 2018/3Q 2018/4Q 2019/1Q 2019/2Q 2019/3Q 2019/4Q

Revenue


2. Future Initiatives and Growth Strategy


2.1 Product portfolio of focus areas andgrowth strategy

EC（180）

Areas contributing to profit in the current fiscal year

Broader-EC

Cashless

FinTech

IoT

Global

（¥2 bn）

（¥18 bn）

（¥5bn）

（¥1 bn）

（¥3～¥4bn）

Concrete measures for the 5 focus areas

Broader EC

Cashless

FinTech

IoT

Global

FY2019 FY2025

・New customer wins (Large-scale, growth oriented)

・ARPU growth from cross-selling

・SMCC ＆ VISA・Build large scale non-merchandise business

* PaD stands for Payment after Delivery※ Figures in parentheses represent the targeted OP image in each of the areas (unit: billion JPY）

・Expansion and margin increase of GMO PaD* ・B2B Factoring (partnership with Informart Corporation)

・Expansion of global lending service

・Capture the opportune timing into growth areas

・Diversified portfolio strategy

・ Ginko Pay & processing

・ Establish feedback loop to payment processing

・ Make inroads into the unmanned payment market

・ SMCC & VISA

¥8.3bn

¥25 billion

Broader-EC market: 20％

Other Areas: 5％

Secular above-25％OP growth


ECBroader EC（¥18 bn）

（10）

Executing the 25% growth plan aimed at realizing a 20% CAGR medium/long term growth

FY2019 FY2025※ Figures in parenthes show the OP target of each areas.Unit: billion JPY

Sustained above-20％ CAGR growth

2.2.1 Broader EC Market

Reinforcing sales to acquire large-scale & high-growth merchants

ARPU uplift from cross-selling

Making inroads into the B2B market

Focus on growth areas (Shared economy, subscription services, etc.)

25％ Growth Plan

Acquire large-scale & non-merchandise businesses (e.g. infrastructure, utility)


2.2.2 Broader EC: Strengthening IT systemfor enable further business growth

Preparing for a 30% transaction growth in the next 5 years while maintaining OP over-25％ CAGR growth

Upgrade of mainframe system

Improving processing capacity (4.3x)

Expanding resource/capacity・Upgrade/Expansion of database (capacity increase)・Server capacity increase & improved performance

Expand authorization processing capacity to withstand a 30%increase in TRX volume versus current levels in 5 years

Revise system architecture・Application refactoring of major apps, microservices architecture ・Traffic flow control, transaction spike readiness・Simplification of OEM, etc.

Improve operability and performance

Improvement of merchant service

UI/UX renewal

Purpose２

Purpose 3

Purpose 1


583

Transaction Lending Early Payment GMO Payment After Delivery Remittance Finance Lease

2Q FY2018 2Q FY2019

2.3.1 FinTech: Assets and profit growth

Margin improvement of GMO PaD; rapid growth of global lending

■MSB-related assets ■ Segment Revenue

+22.1％ YoY +23.4％ YoY

+869.4％

+11.8％

+50.5％

＋33.3％

－23.4％

+127.5％

+32.7％

+33.6％

－40.4％

＋142.8％ YoY

■Segment OP

987（mil. JPY)

Impact from change in Provisions for doubtful accounts

End-2Q FY2018 End-2Q FY2019 2Q FY2018 2Q FY2019

*PaD: Payment after Delivery

Growth

strategy

① Expansion of GMO PaD- Expand merchantfootprint and TRX value

② Margin Improvement- Accumulate and analyze payment data- Deploy AI

③ Expand service line-up- B2B-type MSB services, etc

％ indicates YoY change

＋69.3％ YoY

*


2.3.2 FinTech: BtoB Factoring

Launched Upfront Payment of receivables to address funding crunch at SMEs with high cash needs

Addressable Market = Receivables at SMEs

¥78 trillion ※2

BtoB Platform Invoicing

Customer companies 280,000

Annual GMV ¥6.3 trillion

Provide GMO BtoB Early Payment to Infomart from September 2020 onwards

（兆円）

Backdrop: Supply gap widening for SMEs funding

Provide a financing-and-payment service through receivables factoring to human-resource and time-constrained SMEs

（左軸）（右軸）

（※3）Figures are based on Informart Corporation’s press released dated February 28th 2019, “BtoB Platform Invoicing” for customer companies and FY2018 GMV figures.

（※2）Source: Ministry of Finance Policy Research Institute Financial Statements Statistics of Corporation by Industry Issue 798 (Oct. 2018), Aggregate of receivables of corporateswith capital of less than ¥100 million.

（※1）Source: Small and Medium Enterprise Agency “SME Business Conditions Survey,” Financial Services Agency Stats on Money Lending Business

※1Trend in Loans to SME Market

（兆円）

-60

-50

-40

-30

-20

20

25

30

35

40

45

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ノンバンク貸出残高中小企業業況判断DINon-bank loan balance

(Left axis)

(Right axis)

SME Business Condition DI

Trillion JPY Trillion JPY

Backdrop

Initiatives

※3


2.4.1 Cashless: Ginko Pay

Broad coverage of QR-code payment (a.k.a. smartphone payment) including internet companies and financial institutions

15 out of 26 companies involved

① provision of payment foundation: 6 companies

② provision of charge infrastructure: 4 companies

③ mounted on our mainframe system: 7 companies

Ginko Pay adopted by 11 banks

Bank Pay Mutual access of merchants

October 2019 onwards Connected to 11 banks

Plan to enable mutual-accessing of merchants on the QR-code payment services offered by the 3 megabanks

Launch of Yucho Pay

Internet related

Finance related


2.4.2 Cashless: Cash withdrawal service

Strong start of cash withdrawal service: stock revenue momentum robust

・Highly convenient location of cashing

Started cash withdrawal service at ticket machines at all Tokyo Line

train stations from May 8th 2019

* Excluding Kodomo-no-Kuni Line and Setagaya Line

*

銀行Pay プロセシングその他

Overall

＋129.3％YoY

■Stock revenue trend from services to FIs

YoY

＋279.6％

YoY

＋114.3％

Ginko Pay Processing Others

Significance

・Acts as a bridge between the imminent cashless society and immediate cash payment needs


2.5 IoT/Card Present: Next Gen Payment Platform

Finalize and sign agreement in May, aim for early service rollout

Payment Processing Center

Buildout of networkfunction

Acquirer

Roles Assigned

¥65 trillion ≒¥120 trillion

2019 2025

Project Overview Addressable market and estimated business size for GMO-PG

¥0.3 trillion ？trillion

Cashless Market

GMO-FG TRX

Cashless¥60 tr. (20％）

SMCC（standalone basis）GMV

Cashless≒¥120 tr.

Cash &

A/C transfer

*Figures for the year 2025 is based on our estimates

（¥4 trillion）（？ trillion）（GMO-PG TRX）

Accelerated growth of Group’s GMV expected with the start of operation of the payment platform

Cash &

A/C transfer


Money Service BusinessRevenue +330% (March-only)Continue investing in SMS biz (by MK)

2.6.1 Global: Overseas business and focus areas

Steady progress in each region and region-specific strategies

（as of 10th May, 2019）

China

Hong Kong

Phillippines

Thailand

Malaysia

Singapore

Payment Processing Business: Strengthen partner strategy in Taiwan

Payment Enhancement Business: Continued investment to accelerate topline growth in core countries

Money Service Business: Acquire/Tie-up with new fintech company

India

Indonesia

U.S.A.

Taiwan

Vietnam

Reinforce Payment

processing

Reinforce Global lending


Area of focus by business segment:

Money Service Business Sales +60% YoY (Q2 standalone)Continue investing in SMS biz (by MK)



■FinTech (Lending) Q2-only revenue ¥73 mil.

Pursue highly-selective investment/loan andalliance with promising fintech firms

2.6.2 Global: Q2 achievements & growth strategy

Focus on diversifying portfolio, laying groundwork for payment processing

（mil. JPY）

■Global: Quarterly revenue by business line（mil. JPY）

■SMS service（MK）＋22.8％ YoY

Investments yielding results in core strategiccountries (Vietnam, Indonesia)

■Payment processing（Z.com）＋109.3％ YoY

Strengthen market-entry support to Japanesecompanies particularly in Taiwan

■Carrier billing (MK) －12.0％ YoY

Considering overhaul of business & resource reallocation

* Comparison with previous year’s Q2-only figure.

SMS service (MK) gross margins are lower than carrier billing (MK)

MK: Macro Kiosk Berhad

Left axis

Right axis

0

10

20

30

40

50

60

70

80

0

200

400

600

800

1,000

1,200

17/3 18/3 19/3

銀行／大企業ビジネス（SMSサービス）

決済代行ビジネス（モバイル決済）

決済代行ビジネス（Z.com）

FinTechビジネス（レンディング）

FY2017 Q2-only

FY2019 Ce Q2-only

FY2018 Q2-only

Banks/Large companies (SMS service)

Payment processing (Z.com)

Payment processing (mobile payment)

FinTech business (lending)

Ce = company estimate

（The quarterly sequential decline in profit is due to year-end seasonal

decrease in the outstanding balance）

*


3. Financial Highlights


127 182

108 147 105 142 127 150 142 161 151 185

343

457

237327

251388

298

563

393319

464 483 501 499 516 528 565 594 663 728 748

786 875 906 929 980

795832

893 923

1,184 1,226

468 496 501 512 532 601 612 630

667 724 749 794

1,026

1,8091,895

2,004

2,3602,436

2,705

2,861

3,072

2,971

584 680 713 733

804

931 959

1,227 1,259

1,383 1,441

1,527

2,101

2,471

2,6532,773 2,691

2,801

2,666

2,946

3,595

3,250

0

500

1,000

1,500

2,000

2,500

3,000

3,500

14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q 15/4Q 16/1Q 16/2Q 16/3Q 16/4Q 17/1Q 17/2Q 17/3Q 17/4Q 18/1Q 18/2Q 18/3Q 18/4Q 19/1Q 19/2Q

Initial Stock Fee Spread

3.1 Revenue by business model

Quarterly trend of revenue by business model（mil. JPY）

※Online advertising service (stock) and finance leas (spread) revenues are recognized as a net amount with IFRS adoption rather than gross method.

J-GAAP IFRS※


Net Asset

63,569

MSB-relatedOther

(o.w., Provision for doubtful accounts-2,113)

Increase in deposits received and MSB-related assets; capital raised through Euro-Yen CB Issue

3.2 Balance Sheet changes

End-2Q FY19

End-Sep 2017

Liability Net Asset

InvestmentsDeposits Received

（under Representative Merchant Service)

MSB-related

71,079

102,232

13,259

14,626 90,838

20,769

26,020

*1 MSB-related assets: Lease receivables, ST loans, advance payments, trade and accounts payable, other.*2 MSB-related liabilities: accounts payables, expenses accrued*3 Some amounts are recognized as the net amount of financial assets and financial liabilities.

(o.w., Provision for doubtful accounts-2,393)

Other Other

36,867

51,347

（unit: mil. JPY)

37,406

41,228

12,697

15,740

*2*1

Bonds

108,074 14,832

44,338

(o.w., Provision fordoubtful accounts -2,203)

97,613 25,29448,198 14,646

June 19th 2018Euro-Yen CB ¥17bn Issued（Raised ¥17.5bn）

Interest Bearing Debt

Current assets Fixed assets

End-Sep 2018

Bonds


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

0

20,000

40,000

60,000

80,000

100,000

120,000

12/12 13/3 13/6 13/9 13/12 14/3 14/6 14/9 14/12 15/3 15/6 15/9 15/12 16/3 16/6 16/9 16/12 17/3 17/6 17/9 17/12 18/3 18/6 18/9 18/12 19/3

Recurring Billing Online TRX Volume Operating Merchants

Operating merchants: 133,199 stores, TRX volume approx. 420 mil., TRX value approx. 1 trillion.

3.3 Major Quarterly KPIs

Group-wide annual TRX value reaches ¥4.1 trillion

TRX Value

（Reference）Cumulative trailing 12-mnth TRX Value approx. ¥3.84 trillion

Including GMO FG, the TRX value reaches ¥4.11 trillion（10,000 TRXs)

（stores)

* The number of merchants dropped in end-Sep compared to end-Jun 2017 due to a service termination by a partner, causing the suspension of services.

* Number of operating merchants are measured on an end-of-quarter basis, while TRX value and volume are the total for the respective quarter.

TRX value as a share of merchant’s aggregate sales:

≒50%※Annual average basis

(revised in 5% increments)

（¥100 mil.)

8,000

5,000

4,000

10,000

9,000

7,000

6,000

11,000


4. Reference materials


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Revenue Operating Profit Profit Attributable to

Owners of Parent

EBITDA

2Q FY2018 2Q FY2019

4.1 Factors affecting earnings for cumulative 2Q period

+30.2％

+31.4％

+27.5％

Revenue grew 27.5% YoY, OP grew by more than 30%

+28.4％

Revenue（＋）Continued strong growth of online payment (spread revenue)（－）Temporary slowdown in online payments (fee revenue)（＋）Expansion of Ginko Pay and other services to financial institutions（＋）Growth of card-present payment field (GMO-FG)

OP（+） Expanding scope of high-margin online payment fields （+） Margin improvement of GMO PaD and Remittance service（－）Absence of insurance payment related to information breach booked in previous 1Q（－）Higher Cost of Sales ratio from changes in sales mix (PS, FG, MK）

*1

*2

Profit attributable to owners of parent （+）Decrease of equity method losses（－）Net financial balance worsens

*2 PS ：GMO Payment Service FG ：GMO Financial Gate MK ：Macro Kiosk Berhad*1 PaD：Payment after delivery

(mil. JPY)


3,855

4,724583

987

22

－31

(100)

900

1,900

2,900

3,900

4,900

5,900

（mil. JPY）

Payment Enhancement Business Money Service Business (MSB)

Payment Processing Business

6,960

9,2723,106

3,8332,491

2,909

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000（mil. JPY）

Payment Enhancement Business Money Service Business (MSB)

Payment Processing Business

・Secular growth of online payment

・Profit expansion of Ginko Pay・Contribution of bulk sales of

terminals

4.2 Cumulative Q2 Segment Revenue and OP

*PaD: Payment after Delivery（）: % YoY

■ Segment OP before adjustments & eliminations■Segment Revenue

（+33.2％）

（+23.4％）

（+16.8％）

（＋69.3％）

（－）

（+22.5％）

・Margin improvement in GMO PaD & Remittance service

・Change in allowance on some transactions

・Expansion of Lending service

Revenue: +27.5％

Consoli. OP +30.2％ YoYOP before adj./elimi. +27.4％ YoY

Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19

・Upfront investments at MACROKIOSK to solidify business foundation and forex losses etc.

Payment Processing & MSB recorded higher revenue and OP, offsetting the strategic losses in Payment Enhancement Business due to upfront investments

・Growth of GMO PaD・Expansion of Lending

service・Strong growth of

Remittance service

・Brisk SMS service growth at MACROKIOSK

・Revenue growth of marketing support service

・Secular growth of online payment

・Expanded adoption of Ginko Pay

・Bulk sale contribution of card-present payment terminals


639 713

1,628

2,411

4,797

6,044

5,492

6,846

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

（mil. JPY）

Initial Stock Fee Spread

4.3 Cumulative Q2 Revenue breakdownby business model

Achieved over-25% YoY growth despite slower-than-1Q growth in Fee and Spread revenues

Spread

Fee

Stock

Initial

・Strong online payment・Decline in Spread revenues from PaD* (2Q-only)・Carrier billing revenue decline at Macro Kiosk ・Launch of Global Lending

・Return to 25% growth trajectory thanks tobank business

・Growth of card present payment (GMO-FG)

+24.6％ YoY

+26.0％ YoY

+48.1％, adj. +26.3% YoY**

+11.5％ YoY, adj. +67.0%

・Sluggish fee revenue in online payment (Q2-only)・Robust card-present payment・Robust SMS service at MacroKiosk

Cumulative Q2FY2018

Cumulative Q2 FY2019

*

** Includes ¥355mil. during the cumulative Q2 period from the impact of recognizing prorated software development revenues as per IFRS 15, instead of the lump sum method booked in Initial

*PaD: Payment after Delivery


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

32,000

2004/9 2005/9 2006/9 2007/9 2008/9 2009/9 2010/9 2011/9 2012/9 2013/9 2014/9 2015/9 2016/9 2017/9 2018/9 2019/9E

TSE Listing

4.4 Revenue trend by business model (annual)

Pursue balanced growth of each business model

INITIAL

STOCK

FEE

SPREAD

J-GAAP IFRS（mil. JPY）


4.5.1 Quarterly trend of CoS and SGA ratio

CoS ratio fluctuates with changes in sales mix

（mil. JPY）J-GAAP IFRS

*Figures with asterisk exclude outsourcing expense related to MSB.These outsourcing expenses are not booked in SG&A from Q1 FY2018 due to IFRS adoption.

2,265

2,6032,733

2,998 3,0903,294

4,347

5,645 5,716

6,0866,098

6,4596,563

7,295

8,246

7,769

508 554 615 683 700 7721,109

1,813 1,8231,940 2,035

2,1432,320

2,581

3,004 2,807

944

1,3721,247 1,307 1,316

1,655

2,036

2,497 2,491

3,067

2,494 2,595 2,382

2,997

3,0982,791

22.4%21.3%

22.5% 22.8% 22.6%23.4%

25.5%

32.1%31.9% 31.9%

33.4%

33.2%35.3%

35.4% 36.4%36.1%

41.7%

52.7%

45.6%

43.6%

42.6%

50.3%

46.8%

44.2%

43.6%

50.4%

40.9%

40.2%36.3%

41.1%

37.6% 35.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

15/6(3Q) 15/9(4Q) 15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 19/9(1Q) 19/9(2Q)

売上高売上原価販管費売上原価率売上販管費率

※50.2％

※42.6％

※41.5％

※39.8％

※37.4％

※44.5％

※41.7％

※40.3％

※39.9％

※47.2％

Revenue CoS ratio SG&A CoS ratio SG&A ratio


2,154

2,478 2,5702,827 2,899

3,092

3,3973,653

3,4693,712

3,937

4,297 4,384

4,663

5,0324,840

451 490 543 599 611 677767 778 770 822

928 1,039 1,0671,071 1,043 1,016869

1,2831,151 1,203 1,197

1,509 1,525

1,225 1,180

1,8901,785

1,577 1,611

2,212 2,253

1,783

20.9%19.8%

21.1% 21.2%21.1% 21.9%

22.6%21.3%

22.2% 22.1%23.6% 24.2% 24.3%

23.0%

20.7% 21.0%

40.4%

51.8%

44.8%

42.5% 41.3%

48.8%

44.9%

33.5%34.0%

50.9%

45.3%

36.7% 36.7%

47.4%

44.8%

36.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

15/6(3Q) 15/9(4Q) 15/12(1Q) 16/3(2Q) 16/6(3Q) 16/9(4Q) 16/12(1Q) 17/3(2Q) 17/6(3Q) 17/9(4Q) 17/12(1Q) 18/3(2Q) 18/6(3Q) 18/9(4Q) 19/9(1Q) 19/9(2Q)

売上高売上原価販管費売上原価率売上販管費率

4.5.2 Quarterly trend of PG and EP’s CoS and SGA ratio

（mil. JPY）

*All figures are based on J-GAAP

PG: GMO-PG, EP: GMO EpsilonCoS ratio fluctuates with changes in sales mix

Revenue Cost of Sales SG&A CoS ratio SG&A ratio


Positive FCF thanks to earnings and increase in deposits received

4.6 Consolidated CF Statement

Financing CF: －¥2,574

(mil. JPY)

■Changes in cumulative Q2 FY19J-GAAP IFRS

-10,000

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

1H

Operating CF Investing CF Financing CF Free CF

Operating CF: ＋¥3,839Pretax profit + ¥4,134Chgs. in receivables + ¥1,447Advances paid － ¥4,143Accrued Income － ¥2,856Chgs. in payables + ¥112Accrued expenses ＋ ¥1,085Deposits received ＋ ¥6,969

Investing CF: － ¥61

Time deposits ＋ ¥689Acq. of intangibles － ¥568

Chgs. in ST debt +¥699LT debt repayments － ¥400Dividend payment － ¥2,133

Free CF* + ¥3,778

＋¥43,202Cash & Equivalent1H

Thank You Very Much

GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange, Section 1)

For inquiries please contact our IR team at the telephone number below:

URL： https://corp.gmo-pg.com/en/ir/

Corporate Value Creation Strategy Division (IR Department) TEL: +81-3-3464-0182

financial results briefing for q2 of fy2019...financial results briefing for q2 of fy2019...

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