Information for Investors

Frequently Asked Questions

Print

Q
What are the consolidated financial results for the FY2018?
A

The following are the results on IFRS basis.
Operating Revenue 26,417 million yen(+25.5%)
Operating profit 6,550 million yen(+65.9%)
Profit before income taxes 6,700 million yen(+86.8%)
Profit 4,246 million yen (+74.8%)
Profit attributable to owners of the parent 4,255 million yen(+75.8%)
EBITDA 7,516 million yen(+58.9%)
(% indicator shows the year-on-year changes)

Q
What is the forecast of consolidated financial results for FY 2019?
A

The following are the results on IFRS basis.
Revenue 31,850 million yen(+20.6%)
Operating profit 8,300 million yen(+26.7%)
Profit before income taxes 8,108 million yen(+21.0%)
Profit 5,206 million yen(+22.6%)
Profit attributable to owners of the parent 5,106 million yen(+20.0%)

Q
What is your strategy on 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 \35 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.
Note that this DPS is the amount to be paid after the 2-for-1stock split which is effective from October 1st, 2018. The purpose of this stock split is to improve further the investment conditions of the stock by expanding our investor base and improving the stock's liquidity.

Q
How many active merchants do you have?
A

105,891 merchants as of end-June 2019
(*) Figure excludes a significant increase in operating stores from a specific merchant. If included, the total number of operating stores is 184,480 outlets by end-June 2019

Q
What is the area of your business?
A

We offer comprehensive payment-related services and financial services to 105,891 merchants(*1) (as of end-June 2019) that cover a very diverse range of services such as online shopping operators, NHK (public television) 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 segement (MSB segment). Thus the total transaction value is in excess of 4.0 trillion yen(*2). 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 a significant increase in operating stores from a specific merchant. If included, the total number of operating stores is 184,480 outlets by end-June 2019
(*2) Total transaction value reaches 4.3 trillion yen if GMO Financial Gate is included.
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 charged only one time when the services are introduced

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
What are the volume and value of transactions?
A

During the 3Q of FY2019 (the period of April to June 2019) total transaction (TRX) value reached 1.09 trillion yen and TRX volume amounted to 430 million.

Q
What it spread (merchant acquiring service 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 and processing platform service that aims to offer a one-stop payment solution to financial institutions and financial service providers, as well as other merchant 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 liabilities?
A

We have recorded 7,500 million yen borrowings under current liabilities and 1,598 million yen borrowings under noncurrent liabilities on our consolidated balance sheet as of end-June 2019.

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 infromation such as credit card numbers, etc, as part of our business of providing credit card payment processing services. In order to prevent information leaks, we have obtained certifications of ISO/IEC 27001:2013 (Japanese Standard, JIS Q27001: 2014), the de facto global standard for information security management, as well as being accredited by PCI DSS in December 2017, the global standard on information security established by the five international credit card companies of JCB; American Express; Discover; MasterCard; and VISA.

We have also obtained the Privacy Mark and fully comply with all the relevant laws and regulation and adopt internal voluntary management systems on personal information security to further raise our security levels.

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., GMO-Z.COM PAYMENT GATEWAY PTE. LTD. and Macro Kiosk Berhad.

  • 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.
  • Macro Kiosk Berhad offers services mainly in Asia focusing on carrier billing and mobile solutions for banks and enterprises
Q
What is your relationship with your parent company?
A

Our parent company is GMO Internet, Inc.
However, we do not conduct our business based on the instructions or approvals of our parent company. Instead, we would rather make our own decisions based on the judgment of our management team, including our independent directors who do not have conflict of interest with general shareholders, and the senior directors who serve only for our company accounting for a majority of our board.
Our business transactions depend little on GMO Internet Group. With a few exceptions, regular transactions with enterprises that do not have a capital relationship with us represent the most of them.
In addition, when we start, renew, etc. business transactions with GMO Internet Group, we carefully examine to confirm that the content of terms and conditions of the transactions are appropriate by comparing them with those of our transactions with other third parties.
More specifically, we make these comparisons periodically and comprehensively. We report the results to the Board of Directors joined also by external directors who are not dependent upon our parent company, etc.

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 2018” (available only in Japanese).

Q
What is the status regarding corporate governance?
A

The basic idea about corporate governance is to establish and implement the necessary governance structures and policies for our healthy growth while ensuring both management efficiency and legal compliance, representing one of the most important management agendas.
To this end, the Management Committee has been newly established as the decision making body on executing important operational issues, and this will further strengthen the management oversight while separating the management function of supervision and execution clearly. The supervisory function of the Board Of Directors' will also be enhanced in order to expedite the decision making process and further enhance corporate governance.
In addition, we will continue to be transparency for both our shareholders and investors through the timely disclosure of management information and our IR (Investor Relations) activites.

For more detailed information, please refer to article “6. Corporate Governance” in paragraph “4. Information on the Company” of “Securities Report for the Fiscal Year Ended September 2018” (available only in Japanese).

Q
Where are you listed and what is your securities code?
A

The Company changed its listing market to Tokyo Stock Exchange Section -1 on September 17, 2008. The code is 3769.

Q
Please tell me about the number of shares issued, public offering price and initial listing price at the time and the 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 number of shares issued?
A

74,301,000 shares as of December 17, 2018.
*A 2-for-1 common stock split was conducted on October 1, 2018.

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

Our financial results briefings are targeted for securities analysts, and mass media who are in a position to share information widely with shareholders and investors. However, we don’t invite individual investors, due to space limitations.
In addition, we upload all the materials that were used at the financial results briefing to our corporate website. Briefings for individual investors are to be held once every half a year. We will make an announcement via our website or corporate newsletters as soon as the schedule is made.

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 Silent 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 Silent 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.

P-Mark Certification
GMO Payment Gateway has acquired P-Mark certification.
PCI DSS
The services of GMO Payment Gateway are PCI DSS 3.2 compliant.
ISMS
All business premises of GMO Payment Gateway have acquired ISO/IEC.
TOP
Related services