Supplementary Information

Transcription

1 Supplementary Information Financial results briefing for the 2Q of FY2014 May 2, 2014 GMO Payment Gateway, Inc. (3769: Tokyo Stock Exchange section-1) h t t p : / / c o r p. g m o - pg. c o m /

2 Non-face-to-face payment Our business field is mainly non-face-to-face payment Face to-face payment Non-face toface payment ( Point ) Must present credit card Must provide signature Use terminals such as POS terminal & CAT terminal ( Point ) No need to present credit card Use postcard, telephone, FAX Use Internet Use automatic settlement machine which registers credit card number in advance 2

3 Business outline of payment processing company Problems of the existing non-face-to-face credit card payment Consumer Shops(merchants) 1Order Huge volume of expense sheets Tel Post card FAX Internet 2Enter each into the CAT terminal 3Make sales report to each credit card company (sales processing) Authorization (get approval number) network 4Post sales report to each credit card company Credit card company Problems in the business Need to enter twice CAT terminal and our system Sorting for each credit card company Insufficient check for deposit money Human error 5Check whether payment has been received Deposit payment 3

4 Business outline of payment processing company Payment processing service which could do credit card payment operation efficiently Consumer Shops(merchants) Payment processing company 1 Order Tel Post card FAX Internet 2Check whether payment has been received <Credit decisions in real-time> Credit. Sales Update credit card information Submit sales report network Processing sales Deposit payment Credit card company In the early days of EC, offline processing was done for non-face-to-face credit card payments between merchants and credit card companies, increasing the burden of each. To solve this problem, payment processing companies have been established and made it easier to do business. 4

5 Potential of the EC market EC market set to grow Broad sense EC market?trillion yen 1Expand EC market in the narrow sense (expansion of present EC, direct marketing of major manufacturers, opening of major distributors) 2Expansion of micro-commerce 3EC for service commerce, public money and O2O Narrow sense EC market 9.5 Trillion yen (2012) Country EC ratio USA (2013) 5.8% UK (2013) 10.4% Japan (2012) 3.1% * *Adjusted, Preliminary estimate. References:METI, [Market report in regard to EC 2013], American Bureau of the Census QUARTERLY RETAIL E-COMMERCE SALES 4th Quarter 2013,Office for National Statistics RSI Tables December 2013, estimated by GMO-PG, 5

6 Potential of the credit card market Several 10 trillion yen growth potential The potential growth of the Japanese credit card market is considerable Scale of the Japanese credit card economy (2012) Cash market (Private final consumption expenditure) 290 兆円 53.2 trillion yen Credit card shopping Private final consumption expenditure =18.5% Reference:Japanese credit association [Japan s consumer credibility data] 2013 Overseas credit card use is high compared to Japan Country Estimated by GMO-PG:CPSS Red Book, GLOBAL NOTE Amount handled by CC Private final consumption expenditure Amount handled by DC Private final consumption expenditure Amount handled by CC+DC Private final consumption expenditure UK (2012) 15 % 35 % 50 % USA 22 % 18 % 40 % (2012) Korea 72 % 12 % 84 % (2012) Australia 30 % 21 % 51 % (2012) Japan 18 % - 18 % (2012) 6

7 Business outline - The role of our company We connect merchants and businesses dealing with contracts, payment information and money transactions Consumer Merchants <merchants=our Customers> About 47,000 shops Our Company Business related Computer Smartphone Catalog TV Telephone Postcard Online store Monthly recurring Billing businesses Magazine subscription NHK Contents businesses SNS Smartphone Public Institutions Local governments (e.g. Tokyo metro government) Pension Business Services We connect merchants and businesses with contracts, payment information and money transactions Profit Structure Initial revenue Monthly revenue Transaction Processing revenue Merchant acquiring service revenue More than 40 credit card companies Convenience stores Electronic money Pay-easy Cash on Delivery Account transfer Wallet settlement Carrier settlement Online account settlement Payment after delivery etc. 7

8 Business model (for credit card payments) Our business model is based on stock and transaction model shops(merchants) <merchants=our customers> Initial revenue Monthly revenue Transaction processing revenue Merchant acquiring service revenue Large scale GMO-PG Medium scale Small scale GMO Epsilon This is the basic model, the model depends on the merchants. Numbers are provided for illustration purposes only. Direct contract with merchants Representative contract with merchants Our group Credit card 4% 1% 3% Shop Merchant acquiring company 3% service revenue shop Credit card (5%) 8

9 Payment services to value-added services Adding new services while increasing our company s share Value-added services Online advertising service Payment related Advertising Facebook Smartphone SSL Delivery Value-added services field Early Payment Non-credit card Payment after delivery Online bank payment Payment services Carrier Payment Wallet, etc. Cash on delivery Bank Electronic money Convenience store S Credit card Number of merchants : 47,000 9

10 Expansion of public funds and utility payments Number of payment types and municipalities are increasing and this field has great potential for expansion Main items Number Of items NHK(TV station)broadcast license fees Credit card usage rate at the end of FY % Facility utilization fees Electronic Application fees Light vehicle tax Adachi Katsushika Osaka Fujisawa NEW Osaka: Water bill Mie: Automobile tax Matsue city: Home town tax Number of municipalities Automobile tax Tokyo Osaka Home town tax Water bill Tokyo Tokyo Osaka Osaka NEW Kyoto pref Kyoto city Kobe Shiga Pref Amagasaki Otsu Fukuoka Nagasaki Tokyo Osaka Kanagawa Kyoto Hyogo Shiga Fukuoka Nagasaki Main municipalities Municipalities which have already implemented our service 10

11 The strategy of overseas development Through two strategic service entities, capital and business alliance can be promoted GMO-PG Global Payment is launching now Approx. USD15 million fund GMO Global Payment Fund GMO-PG & GMO-VP GMO-PG Global Payment Our Japanese merchant Fund owner supporting Minority investment synergy Business partner (Payment service venture) Invested company (payment service venture) Singapore Taiwan Hong Kong Malaysia Thai Indonesia Vietnam Philippines Invested in Coda Payments PTE. LTD. (USD1,000,000) 11

12 13/5 13/6 13/7 13/8 13/9 13/10 13/11 13/12 14/1 14/2 14/3 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 10/3 10/6 10/93 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 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 New Business GMO-PG group s new business and profit status Online Advertising Service (GMO-PG) Sales SAPS Ordinary income Established in March,2010 Moving into the black GMO-PS COC Number of processed payments Ordinary income Started in May,2013 Joined as an Equity metho d application concerned co mpany in January,

13 GMO-PG Group GMO Payment Gateway s subsidiaries and affiliated companies Multiple Payment Smartphone Payment Payment after delivery Oversea business Face to face GMO PAYMENT GATEWAY PTE.LTD. GMO Epsilon, Inc. Social Appli Payment Service, Inc. GMO Payment Service (Singapore) GMO PAYMENT GATEWAY PTE. LTD. Consumer Open Center 100% owned Subsidiary 100% owned Subsidiary 100% owned Subsidiary 100% owned Subsidiary Equity method affiliate48.8% (September,2013) Sales :1,298 million yen Ordinary income:845 million yen (September,2013) GMO PAYMENT GATEWAY HONG KONG LIMITED(Hong Kong) Taiwan branch GMO PAYMENT GATEWAY MALAYSIA SDN. BHD. (Malaysia) 13