Information for Investors

Frequently Asked Questions

Q
What are the consolidated financial results for the FY2021?
A

The following are the results on IFRS basis.
Revenue 41,667 million yen (+26.1%)
Operating profit 12,987 million yen (+25.0%)
Profit before income taxes 13,285 million yen (+20.9%)
Profit 8,982 million yen (+16.8%)
Profit attributable to owners of the parent 8,818 million yen (+15.7%)
(% indicator shows the year-on-year changes)

Q
What is the forecast of consolidated financial results for FY 2022?
A

The following are the results on IFRS basis.
Revenue 50,000 million yen (+20.0%)
Operating profit 16,234 million yen (+25.0%)
Profit before income taxes 31,538 million yen (+137.4%)
Profit 21,048 million yen (+134.3%)
Profit attributable to owners of the parent 20,860 million yen (+136.5%)
(% indicator shows the year-on-year changes)

Q
What is your view on your stock price?
A

We continue our mid-to-long term focus on expanding/strengthening our businesses and growing our profits. In addition, we have established a dividend payout target as part of the shareholder return policies and to carry out the requisite IR activities.

We guide for a dividend per share (DPS) of ¥66 per share for this financial accounting period, a consecutive dividend increase since the start of dividend payments, thanks to the highly favorable business environment. This reflects our commitment to enhance our shareholder returns and increase our corporate value in the medium-to-long term.

Q
What are your thoughts on reducing the trading lot size?
A

We view reducing the trading lot size as one of the viable ways to increase the number of investors trading in our stock and thereby increase the stock's liquidity. We have not made any decision regarding changing the trading lot size as of now, but will continue to consider the stock price, supply/demand sitation, changes in shareholder structure and other related issues.

Q
How many active merchants do you have?
A

138,119 operating stores as of end-June 2022.
(*) Figure excludes merchants acquired for a certain project and a major delivery company. If included, operating stores would be 427,446 stores for the same period.

Q
What is your business area?
A

We offer comprehensive payment-related services and financial services to 138,119 merchants(*1) (as of end-June 2022) that cover a very diverse range of services such as online shopping operators, NHK (public boradcaster) and other monthly flat rate subscription service providers, public sector agencies such as the National Tax Agency and the Tokyo Metropolitan Government, card-present offline store operators and, several financial institutions.
In addition, we leverage our core payment processing business where we are the industry leader and forerunner, to offer cashflow enhancement/improvement services to our merchants, such as the Early Payment Service and GMO Payment After Delivery in our Money Service Business segment (MSB segment). Thus the total transaction value(Consolidated) is in excess of 10.4 trillion yen(*2) (July 2021 to June 2022) . We are expanding our business domain overseas to provide solution business to financial institutions, overseas payment services and are forging capital alliances with local PSPs and/or payment companies.

For more information, please refer to the link below:
(*1) Figure excludes merchants acquired for a certain project. If included, operating stores would be 427,446 stores for the same period.
(*2) Total transaction value reaches 8.2 trillion yen if GMO Financial Gate is excluded.
Q
What is your business model?
A

We receive "stock and transaction" type of revenues from our merchants for our payment processing business.

We receive the following 4 types of revenues.

1. “Initial (Initial revenue)” that is the upfront payment received at the time of implementation of payment terminal and payment services

2. “Stock (Monthly revenue)” that is charged for our operation and maintenance on a monthly basis

3. “Fee (Transaction processing revenue)” that is charged per transaction processing according to the number of processed payments

4. “Spread (Merchant acquiring service revenue)” that is charged according to the amount of processed payments

By expanding our payment processing business we accumulate various data. By using and analyzing these data we create new value-added services that lead to profit growth of our group companies and increase our core business forming the so-called “ecosystem” of our business.

For more information, please refer to the link below:
Q
How much is your transaction volume and value?
A

During the Q3 of FY2022 (April to June 2022) transaction volume (Consolidated) amounted to 1.25 billion and transaction value (Consolidated) reached 2.9 trillion yen.(*)
(*)The TRX volume is 1.15 billion and TRX value is 2.2 trillion yen if GMO Financial Gate is excluded.

Q
What is spread revenue?
A

"Spread (merchant acquiring service revenue)" is received under “representative merchant contract” that covers payments between a merchant and various credit card companies as a comprehensive package. According to this contact, merchants’ proceeds are paid to us from each credit card company, and then are paid to the merchants by us as a lump sum. The commission that is charged on merchant proceeds, which is paid by us to a merchant, is named "spread (merchant acquiring service revenue)". In calculating this type of revenue we have adopted a net method of accounting.

Q
What are business fields of your merchants?
A

Our merchants vary widely from major E-commerce operates to online shops run by individuals, public institutions such as NHK, National Tax Agency and the Tokyo Metropolitan Government, as well as financial institutions.
For more information about success stories of merchants who introduced our services, please refer to the link the link

Q
What is your growth strategy?
A

We strive to expand our scope of business constantly such as by launching the Ginko Pay Base System and processing platform service that aims to offer a one-stop payment solution to financial institutions and financial service providers, as well as online advertising services to increase their customer traffic. In the Money Service Business, services such as Early Payment Service and GMO-PG Remittance Service that aims to supplement the merchant's cashflow have been expanding, and, GMO Payment Service was established to enter the payment services market. We continue to expand our footprint in the mainstay B2C EC domain through services aimed at B2B and C2C online subscription providers, tax and utility bill payments and service-based commerce.

In the overseas business, the payment solution "Z.com" is offered through the subsidiaries established in five South-East Asian countries, to provide the much-needed payment service to Japan-based merchants trying to enter into the Asian market. The GMO Global Payment Fund has been establised as an investment vehicle to invest in promising payment service start-ups that in the future could also evolve to business alliances.

In order to fufill the over-25% Operating Profit growth commitment, we will continue with the upfront invetments into new businesses, proactive hirings of necessary talent and further strengthen the payment network's foundation and security.

Q
What is your gross profit margin?
A

Gross profit margin of our core business, online payment processing service, is approximately 85%. Gross margin of value-added services is different from service to service, but is lower than that of the payment processing service.

Q
What is the status of your interest-bearing debt?
A

We have recorded 21,300 million yen borrowings under current liabilities and 19,657 million yen corporate bonds (Zero Coupon Convertible Bonds) under non-current liabilities on our consolidated balance sheet as of end-June 2022.

Q
What is your most important management indicator? Do you have a numerical target for it?
A

We value achieving an operating profit growth rate of 25%, which is also our management index.

*Since the beginning of FY2017 we have aimed to properly manage returns of the Group's core businesses and thus changed our management indicator from ordinary profit growth rate to operating profit growth rate.

Q
What are the possibility of leak of personal information and influence on your business?
A

We handle personal and confidential information such as credit card numbers, etc, as part of our business of providing credit card payment processing services.

In order to prevent information leakages and as one of the measures to strengthen risk management, the Company is the first listed payment processing company to obtain certifications of ISO/IEC 27001:2013 (Japanese standard JIS Q27001:2014) applicable to all offices of GMO-PG and its consolidated companies. Complying to these strict international standards is an objective recognition of the appropriateness and safety of the information security management systems of GMO-PG and its consolidated companies.

In addition, accreditation from the global security standard PCI DSS, compiled by the five internal credit card brands of JCB, American Express, Discover, Master Card, and VISA, was first received in December 2008 and has been re-certified annually for 13 years with the latest certification acquired in December 2021. For the handling of personal information, we have complied with Japan Standards Association's "JIS Q15001 Personal Information Protection Management Systems - Requirements" and have also received the Privacy Mark that certifies business operators with appropriate protection measures for handling personal infromation. In addition to complying with the various regulations and standards, we manage and operate the personal information protection managemnt systems based on even more stringent internal standards.

Q
Can you provide more information on your subsidiaries?
A

Consolidated subsidiaries of the Company are as follows.

GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc. and GMO-Z.COM PAYMENT GATEWAY PTE. LTD.

  • GMO Epsilon is a business operator that serves as an agent for payments at low fees and provides various payment solutions for all E-commerce businesses.
  • GMO Payment Service offers “GMO Payment after delivery” service that allows customers to pay after receiving the goods at any convenience store, post office or bank.
  • GMO Financial Gate, Inc. offers payment processing services, focusing on credit card payments for offline merchants.
  • GMO-Z.COM PAYMENT GATEWAY PTE. LTD. is a payment processing company that is established in Singapore as the main overseas entity to provide “GMO-PG Global Payment” services.
Q
What is your relationship with your parent company?
A

The Company makes decisions independently for sales activities of all businesses and all other operations, and are only required to report important resolutions regarding business activities to the parent company GMO Internet Group, Inc. We acknowledge that the management's independence is secured and that the concurrent positions held by Directors of GMO Internet Group do not hamper the Company's indigenous decision-making.
GMO-PG and its consolidated companies' reliance on GMO Internet Group for business transactions is low, and the bulk of the transactions occur with general companies without any capital relationship, excepting a small portion. In addition, from the perspecctive of protecting the interests of non-controlling shareholders, the Company adopts a policy not to engage in other transactions between GMO-PG and its consolidated companies and GMO Internet Group. Specifically, in the event of a transaction between GMO-PG and its consolidated with GMO Internet Group, be it for new or recurring transactions, a careful examination is made to compare the terms and conditions and appropriateness against an arms' length transaction with a third party. Specifically, such transactions will undergo periodic reviews to comprehensively assess and compare the transactions against arms' length transactions with third parties, and report the transactions' appropriateness to the Board of Directors attended by independent External Directors.

Furthermore, important transactions and actions that entail a conflict of interest between the controlling and non-controlling sharehoders are deliberated and considered at the Special Committee which includes independent External Directors. The findings are reported to the Board of Directors where a resolution is reached.

Q
What are the risks for your business?
A

For detailed information, please refer to article “2. Risk factors” in paragraph “2. Business Overview” of “Securities Report for the Fiscal Year Ended September 2021” (only available in Japanese language).

Q
What is the status regarding corporate governance?
A

GMO-PG and its consolidated companies uphold the management principle to "pursue both material and spiritual prosperity through our contributions to the progress and development of society," and established a governance strucutre to effectively and efficiently realize the management principle. GMO-PG and its consolidated companies is strengthening its governance structure through the various rules for employees at all the consolidated companies, together with the Rules for Affiliated Companies which stipulates the management policies and structures at the consoldiated companies and the Employee's Code of Conduct which stipulates basic views pertaining to the management principle and compliance.

The Company has transitioned to a company with audit and supervisory committee following the resolution at the 28th Annual Meeting of Shareholders held on December 19, 2021. Accordingly, the Audit and Supervisory Committee has been establised comprised on External Directors that have specialized knowledge of finance, legal affairs, and management. The Directors of the Audit and Supervisory Committee, including the External Direcrtors, will conduct legal audit as well as audit of validity and appropriateness. The Company will strive to improve the soundness and transparency of management by strengthening the corporate governance strcuture and the oversight function of the Board of Directors.
For more detailed information, please refer to article “4. Corporate Governance” in paragraph “4. Information on the Company” of “Securities Report for the Fiscal Year Ended September 2021” (only available in Japanese language).

Q
What is your listed market and what is your securities code?
A

The Company changed its listing market to Tokyo Stock Exchange Prime Market on April 4, 2022. The code is 3769.

Q
What is the number of shares issued at the IPO, public offering price and initial listing price at the time and day of listing?
A

The company was initially listed on Mothers Market of the Tokyo Stock Exchange on April 4, 2005. The number of shares issued was 18,975.2 shares, the public offering price was 800,000 yen and the initial listing price – 4.5 million yen.
In addition, we conducted a 4-for-1 common stock split on November 18, 2005, 200-for-1 common stock split on July 1, 2012, 2-for-1 common stock split on October 1, 2014 and 2-for-1 common stock split on October 1, 2018.

Q
What is the trading lot?
A

100 shares.

Q
What is the total shares outstanding?
A

76,557,545 shares as of June 30, 2022.

Q
When is the end of your fiscal year?
A

The Company’s fiscal year is the end of September of each year.

Q
Please tell me about IR annual schedule.
A
Please refer to the link below
Q
Please tell me what I should do if I want to participate in the financial results briefing.
A

Attendance to the financial results briefing meeting is intended for securities analysts that disseminate information widely to sharesholders and investors and mass media professionals only, individual investors are not invited due to constraints of the venue. Materials used at the financial results briefing are posted on the company's website. Company meetings for individual investors are held semi-annually, in principle. Information on the upcoming meeting will be posted on the website as well as stated in the email letter.

Q
How can I contact for information regarding IR?
A

Please contact Corporate Value Creation Strategy Division, Investor Relations Office

TEL: +81-3-3464-0182

E-mail:

Q
Please tell me about your quiet period.
A

The Silent Period is established as our own corporate rule. The purpose is to prevent the leakage of information regarding the financial results that can influence the share price during the preparation of materials for financial results briefings.
The Company observes the Silent Period each quarter beginning on the closing day of its financial accounts and lasting 3 weeks.

Q
Is it possible to ask questions during the quiet period?
A

Yes, we will answer to your questions. However, be informed that we will not provide any information regarding unreleased financials results, business performance results and forecasts.