Slide 1: Financial Results Briefing for FY2024
Financial Results Briefing for FY2024 Exceeded full-year profit forecast. Mid-term plan progress is one year ahead of schedule November 13, 2024 GMO Financial Gate, Inc. 18th IR Presentation (Ticker:4051, TSE-Growth) https://gmo-fg.com/ Copyright 2024 GMO Financial Gate, Inc.
Slide 2: Cautionary Note Regarding Presentation Materials
Cautionary Note Regarding Presentation Materials The content of these presentation materials is based on generally recognized economic and social conditions, as well as assumptions judged to reasonable by GMO Financial Gate as of November 13, 2024 Note that presentation material content is subject t
Slide 3: Table of Contents
Table Main Agenda of 1. Summary of Financial Results for FY2024 Contents 2. KPI 3. Business Highlights 4. FY2025 Forecast 5. Growth Strategy and Progress Supplemental Information 6. Financial Information, Investment and Shareholder Return Policies 7. ESG Initiatives (Details) 8. Appendix Copyright 2
Slide 4: Summary of Financial Results for FY2024
Japanese GAAP Summary of Financial Results for FY2024 1 Copyright 2024 GMO Financial Gate, Inc.
Slide 5: 1.1 FY2024 Summary
1.1 FY2024 Summary Japanese GAAP OP growth of +35.2% YoY, significantly higher than the original full year forecast of +25.9%. Progress in rise of recurring ARPU and expansion of merchant ecosystem. Increased certainty of achieving operating profit of over 5 bn yen by 2030 ●FY2024 Full Year Results
Slide 6: 1.2 Summary of Financial Results
1.2 Summary of Financial Results Japanese GAAP Significant increase in gross profit. Operating profit achieved forecast even while investing for future growth FY2023 Full Year FY2024 Full Year Forecast Progress towards （mn yen） YoY Results Results FY2024 forecast FY2024 Revenue 15,909 18,705 +17.6%
Slide 7: 1.3 Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Japanese GAAP Secured an increase in initial revenue even while considering large contribution from Japan Post in FY23 Recurring revenue continued to grow due to active ID growth – contributed to gross profit and below ◼ Revenue （mn yen） (＋) Initial: In a
Slide 8: 1.4 Revenue by business model (YoY)
1.4 Revenue by business model (YoY) Japanese GAAP Initial ：Increase in revenue grew even while considering large Japan Post project in FY23 Recurring ：Growth in stock and fee led to rise in composition of recurring revenue (mn yen) FY2023 FY2024 YoY (Composition %) (Composition %) 11,116 11,907 Init
Slide 9: 1.5 Revenue by business model (Full Year)
1.5 Revenue by business model (Full Year) Japanese GAAP Initial ：Increase in revenue even with Japan Post (26,000 units of stera terminal) in FY2023 Recurring ：Steady increase due to accumulation in active ID’s / fee revenue growth Initial Revenue Recurring Revenue （mn yen） （mn yen） 8,000 Stock Fee
Slide 10: 1.6 Revenue by business model (Quarterly)
1.6 Revenue by business model (Quarterly) Japanese GAAP Initial ：Continued accumulating mainly small to mid-sized projects to increase active IDs Recurring ：High growth due to accumulation of active IDs Initial Revenue Recurring Revenue （mn yen） （mn yen） 4,000 2,000 Stock Fee Spread 1,847 Avg QoQ fo
Slide 11: 1.7 SG&A and Profit Trends (half-yearly)
1.7 SG&A and Profit Trends (half-yearly) Japanese GAAP Invested towards future business growth (1. performance based compensation, 2. other administrative costs) – however business leverage*1 led to profitability increase *1：Invested towards future business growth (1. performance based compensation,
Slide 12: KPI
KPI 2 Copyright 2024 GMO Financial Gate, Inc.
Slide 13: 2.1 Main KPI (Full-year)
2.1 Main KPI (Full-year) Active IDs ：Growth in manned and unmanned terminals led to increase in active IDs No. of Transactions / GMV ：Growth exceeded YoY+50% due to increase in active IDs Number of Active Terminals Number of Transaction Volume GMV （Thousand） （100 million) （trillion yen） 9.0 8.0 500.
Slide 14: 2.2 Initial Revenue and No. of Active Terminals (Quarterly)
2.2 Initial Revenue and No. of Active Terminals (Quarterly) Continued accumulating mainly small to mid-sized projects for Q4 Continuation of steady increase in active IDs +13.9 ( ) : Excluding, for Japan Post +16.8 Initial revenue（mn yen） +18.4 375.3 Number of active terminals （Thousand） +27.2 361.3
Slide 15: 2.3 Consolidated KPI (Number of active terminals)
2.3 Consolidated KPI（Number of active terminals） Same pace of increase in active IDs as FY2022 Q4 FY2024 （Thousand） Manned terminal YoY＋ 76.5K ID、YoY+25.6% Q4 FY2023 Unmanned terminal (IoT) YoY＋ 99.2K ID、YoY+49.8% YoY （ Excluding, for Japan Post ： QoQ＋13.9千 ID 400 Sold by others Terminal-less * + 74
Slide 16: Business Highlights
Business Highlights 3 Copyright 2024 GMO Financial Gate, Inc.
Slide 17: 3.1 Top Merchants (GMV basis)
3.1 Top 30 Merchants (GMV basis) Large supermarket chain which joined in Q2 remains as the top GMV merchant Dependence on Top 30 merchants have decreased due to growth in GMV Q4 FY2023 Q4 FY2024 Super Market A Super Market D New Hotel/Travel A Hotel/Travel A Gentlemen's Clothing Stores A Super Marke
Slide 18: 3.2 Same-store (Merchant) Growth (Number of Transactions)
3.2 Same-store (Merchant) Growth (Number of Transactions) Payment activity at merchant member stores increases YoY Accurately captured merchants needs which keeps merchants onto our payment platform Same-store (Merchant) Growth (Number of Transactions) (Unt: no. of transactions / 100 million) (growt
Slide 19: FY2025 Forecast
FY2025 Forecast 4 Copyright 2024 GMO Financial Gate, Inc.
Slide 20: 4.1 Track Record of Growth
4.1 Track Record of Growth Japanese GAAP Goals Revenue : CAGR +25%, Op Margin: +25% Track Record : Significantly above +25% growth 5 years post IPO 5 years post IPO Revenue CAGR50% OP CAGR35% 25％ （mn yen） （mn yen） growth 20,000 18,705 1,600 1,514 1,400 15,909 15,000 1,200 1,120 1,000 10,295 10,000 8
Slide 21: 4.2 FY2025 Financial Forecast (IFRS)
4.2 FY2025 Financial Forecast (IFRS*1) IFRS Revenue : Large initial revenue expected in second half OP : Exceed YoY +30% due to recurring revenue ration increase and increase in future investments Initial Revenue Reccuring Revenue GP Margin FY2024 (mn yen) FY2025 Forecast Actual*1 （mn yen) （mn yen)
Slide 22: Growth Strategy and Progress
Growth Strategy and Progress 5 Copyright 2024 GMO Financial Gate, Inc.
Slide 23: 5.1 Cashless Ecosystem Vision (At IPO)
5.1 Cashless Ecosystem Vision (At IPO) The cashless ecosystem vision explained at IPO is progressing as originally planned. Active IDs for all payment scenes are expanding - developing and expanding solutions assets with higher added value. IPO Trx. Vol.: 0.8bn Active IDs: 41K ID Present Diversifica
Slide 24: 5.2 Mid-term Financial Plan
5.2 Mid-term Financial Plan OP of 1.5bn yen has been achieved this year ahead of schedule – will strive to achieve operating profit of 5.0bn yen in 2030 one year ahead of schedule Operating Profit Growth Curve (OP: bn yen) Action Plans Mid to long term strategy （GMV: tn) Acquire multi-industry/high-
Slide 25: 5.3 ARR Expansion Action Plans
5.3 ARR Expansion Action Plans: 1 2 3 4 Increase in ARR for FY24. Will continue Vertical X Horizontal strategy for large corporate groups Will continue increasing ARPU beyond FY2025 ARR = Active IDs × ARPU *ARR : Annual Recurring Revenue (yearly recurring model revenue) Recurring ARPU per year trend
Slide 26: 5.4 Win-Win Ecosystem Formation Case Study
5.4 Win-Win Ecosystem Formation Case Study Action Plans: 1 2 3 4 Providing solution assets to solve merchant business issues Forming a win-win ecosystem where merchant sales and our ARPU grow together 2021～ 2022～ Present GMO-FG Solution GMO-FG Solution GMO-FG Solution Solving Merchant Issues Phase 2
Slide 27: 5.5 Ecosystem Expansion
5.5 Ecosystem Expansion Action Plans: 1 2 3 4 Leveraging solution assets to efficiently install payment solutions into new merchants Will focus on digitalization (DX) for merchant operations and development new products that will contribute to active terminals recurring revenue Vertical Merchant E S
Slide 28: 5.6 Progress of Project Pipelines
5.6 Progress of Project Pipelines Action Plans: 1 2 3 4 Expansion of pipelines for large commercial facility chains - two large projects scheduled beyond FY27 Expect concentration period for large projects in 2H of FY25 to 1H of FY26 Large ARPU Mandated New In commercial project competition Large fa
Slide 29: 5.7 Expansion of Payment Platforms - Mobility Domain
5.7 Expansion of Payment Platforms - Mobility Domain Action Plans: 1 2 3 4 127 institutions have installed the mobility domain due to the number of overseas traveler increase. 548 stations in Kansai Area has started service officially across five institutions Implementation at Public Transportation
Slide 30: 5.8 Expanding use of contactless NFC payment
5.8 Expanding use of contactless NFC payment Action Plans: 1 2 3 4 The percentage of credit touch payments at our processing center is on an upward trend. Growing awareness of the convenience of NFC is driving the future spread of credit touch in the mobility field Credit and debit payments at our c
Slide 31: 5.9 Expanding ESG Initiatives
5.9 Expanding ESG Initiatives Received "Eruboshi Certification (2 stars) as a company that promotes women's active participation as from the Ministry of Health, Labor and Welfare Plan to introduce EMS(environmental management system) *1 to improve ESG rating ESG Initiative Roadmap To Do’s Compilatio
Slide 32: 5.10 Implementation of IFRS
5.10 Implementation of IFRS Introduced IFRS will benefit for realizing benefits in goodwill amortization, improving ease of comparison with other global companies, and to improve financial management as a group Benefits of Implementing IFRS Schedule ⚫ Realize benefits in goodwill and impairment Date
Slide 33: 5.11 2024 Award for Excellence in Corporate Disclosure
5.11 2024 Award for Excellence in Corporate Disclosure Received “2024 Award for Excellence in Corporate Disclosure” for the 2nd consecutive year from The Securities Analysts Association of Japan Will continue to strengthen disclosure and dialogue with investors Award-winning message video https://ww
Slide 34: Supplemental Information: Financials, Investment / Shareholder Returns
Japanese GAAP Supplemental Information Financials, Investment / Shareholder Returns 6 Copyright 2024 GMO Financial Gate, Inc.
Slide 35: 6.1 Profit & Loss
6.1 Profit & Loss Japanese GAAP FY2023 FY2024 (Thousand) YoY actual actual Revenue 15,909,069 18,705,381 +17.6% COGS 12,003,608 12,659,146 +5.5% Gross profit 3,905,460 6,046,234 +54.8% SG&A 2,785,136 4,531,743 +62.7% Operating profit 1,120,324 1,514,491 +35.2% Ordinary profit 1,114,159 1,497,027 +34
Slide 36: 6.2 Revenue by business model (Quarterly)
6.2 Revenue by business model (Quarterly) Japanese GAAP Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (mn yen） FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 FY2024 Initial 855 1,103 1,525 1,682 1,454 1,643 2,136 1,927 2,220 2,905 3,461 2,5
Slide 37: 6.3 Changes in Revenue Composition and Gross Profit Margin
6.3 Changes in Revenue Composition and Changes in Gross Profit Margin Japanese GAAP Gross profit margin fluctuates depending on revenue composition - has increased for 6 consecutive quarters Terminal device composition change and the contribution of higher margin software development revenue leads t
Slide 38: 6.4 Balance sheet
6.4 Balance sheet Japanese GAAP No major changes ◼ Note End of Q4 FY2024（thousands） Merchandise: ¥ 3.16 bn Cash and cash equivalents (36.3%) Increased by 0.21bn from Q3 Current liabilities 5,072,458 6,088,444 Current liabilities: ¥ 6.08 bn Merchandise (Payment terminal) Increased by 2.56 bn mainly d
Slide 39: 6.5 Balance sheet (Quarterly)
6.5 Balance sheet (Quarterly) Japanese GAAP Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 （mn yen） FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 FY2024 QoQ YoY Cash and cash 3,434 1,425 1,618 2,231 2,519 1,720 2,190 2,779 4,015 3,897 4,216 4,256 5,072 +815 +1,056 equiv
Slide 40: 6.6 Consolidated KPIs (Number of Active Terminals)
6.6 Consolidated KPIs（Number of Active Terminals） Japanese GAAP As the trend of self-service and labor-saving continues, IoT terminals continue to increase unmanned terminals continue to increase Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QoQ YoY （thousand） FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY
Slide 41: 6.7 Consolidated KPI (Quarterly Transaction volume / GMV)
6.7 Consolidated KPI (Quarterly Transaction volume / GMV) Both the number of payments processed and GMV are steadily increasing at a high level Number of Transaction Volume Transaction Value (GMV) （mn） （100 mn yen） 20,000 250 YoY +42.5% YoY +45.9% 16,000 200 12,000 150 8,000 100 50 4,000 0 0 Q1 Q2 Q
Slide 42: 6.8 Efficiency Indicators and Cost of Capital
6.8 Efficiency Indicators and Cost of Capital Japanese GAAP Management that is conscious of efficiency, investment return, and capital cost Mid-term plan Future Measures 21% ROE ROA ROE 18.9% 25%+ ROE 19% • Increase profit level by improving 17% 15.9% recurring type sales • Execution of fellowship p
Slide 43: 6.9 Capital Allocation Policy
6.9 Capital Allocation Policy Aim to achieve continuous business growth in accordance with the investment funding policy and capital allocation policy Investment Source Funding Policy Capital Allocation Policy ⚫ Priority will be given to business investment and growth ⚫ Priority of investment resour
Slide 44: 6.10 Investment Policy
6.10 Investment Policy Proactive business investment to execute "market share expansion strategy" necessary for medium to long-term operating profit growth of +25% YoY Business investment Growth investment ・Investments in data centers, terminal development, and internal ・Support for cashless transac
Slide 45: 6.11 Shareholder Return Policy
6.11 Shareholder Return Policy Aiming to increase corporate value through business growth while providing stable and continuous dividends simultaneously Basic Policy on Shareholder Returns Increase in corporate value Stable and continuous dividends ・Aim to increase market capitalization over the med
Slide 46: Supplemental Information: ESG Initiatives (Details)
Supplemental Information ESG Initiatives (Details) 7 Copyright 2024 GMO Financial Gate, Inc.
Slide 47: 7.1 (Reprint) Expanding ESG Initiatives
7.1 (Reprint) Expanding ESG Initiatives Received "Eruboshi Certification (2 stars) as a company that promotes women's active participation as from the Ministry of Health, Labor and Welfare Plan to introduce EMS(environmental management system) *1 to improve ESG rating ESG Initiative Roadmap To Do’s
Slide 48: 7.2 ESG-related topics (Materiality, CDP Score)
7.2 ESG-related topics (Materiality Identification/CDP Score B earned) (1) Identified materiality. (2) Received a "B" in CDP, focusing on prime companies, exceeding the industry average, the Asian average, and the global average. Aiming for "A" in the future, and aiming to improve the score of low e
Slide 49: 7.3 ESG Initiatives / Environment
7.3 ESG Initiatives / Environment In the provision of our payment platform, we promote business operations that consider environmental impact．Working to reduce CO₂ emissions related to our business Specific Efforts Environment Related Data Our Supply Chain GMO-FG downstream ⚫ Recycled paper is used
Slide 50: 7.4 ESG Initiatives / Social
7.4 ESG Initiatives / Social Aiming for sustainable growth by hiring excellent human resources and enhancing various systems that contribute to improving the capabilities of all partners* in order to create corporate value and solve social issues *Employees are referred to as partners Initiatives So
Slide 51: 7.5 ESG Initiatives / Governance
7.5 ESG Initiatives / Governance Focus on enhancing corporate governance by establishing a decision-making structure that responds quickly and appropriately to changes in the business environment, a fair, transparent, and efficient business execution structure Specific Efforts Governance Related Dat
Slide 52: 7.6 ESG Initiatives / Board of Directors
7.6 ESG Initiatives / Board of Directors Governance structure built around technology and financial background Internal Director (Managing Director) Independent External Director Kentaro Sugiyama ／ Nao Shimamura ／ President and Representative Director External Director (Audit and Supervisory Committ
Slide 53: 7.7 Executive Skills Matrix
7.7 ESG Initiatives / Executive Skills Matrix Appointment of human resources that contribute to the enhancement of corporate value as directors, with a view to building a system that enables the Board of Directors to function effectively. Nao Rie Takayoshi Satoru Kentaro Akio Tomonaga Tomoki Tatsuya
Slide 54: Appendix
Supplemental Agenda Appendix 8 Copyright 2024 GMO Financial Gate, Inc.
Slide 55: GMO-FG Business Domain
GMO-FG Business Domain Business Model GMO-FG is focusing on offline payment （リアル店舗決済 ＋ IoT決済） Company name Business GMO Financial Gate GMO Payment Gateway Domain (Payment at Brick & Mortar + IoT) (EC) Payment by passing card/QR code Payment by entering credit card over the reader information in PC /
Slide 56: Gross profit composition ratio
Gross profit composition ratio Business Model Growth in recurring revenue leads to steady profitability base Composition by Product Category (Revenue and Gross Profit) 20,000 （mnf yen） 18,705 15,909 15,000 6,797 36% 4,792 30% 10,295 10,000 7,089 3,132 30% 64% 70% 6,046 1,923 Recurring 27% 70% 11,907
Slide 57: Rev Models: Financial Gate vs. Payment Gateway
Rev Models: Financial Gate vs. Payment Gateway Business Model Initial revenue in offline payment is tend to be fluctuate because of its seasonality of terminal delivery Revenue Revenue Time Time Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Initial Revenue（Terminal Sales・Software Development） Initial Revenue（Initia
Slide 58: Image of rise in Rev & OP
Image of rise in Rev & OP Business Model Market Share Expansion Phase: focus on sales/activation of payment terminals and revenue will be fluctuated. Margin Increase Phase: recurring revenue will increase due to increase in active IDs which will contribute to operating profit growth Increase of Mark
Slide 59: Three Biz Models Over a Single, One-Stop Platform
Three Biz Models Over a Single, One-Stop Platform Business Model One-stop platform covering all settlement processes between merchants and acquirers Consumer Merchants FG Acquirers Various Payment Terminals 1 Methods Payment Various Payment Terminal Sales Terminal Methods Business Credit Card Issuer
Slide 60: Stock Revenue Expansion Originating From Terminal Sales
Stock Revenue Expansion Originating From Terminal Sales Business Model Stock revenue grows with flow model revenue which is mainly coming form the sales of payment terminals % Revenue Model 3 Business 4 Types of Revenue (FY2024) ① Terminal Flow Model Rev Sales Initial 63.7% Business Stock 9.3% ② Pay
Slide 61: Players in offline cashless payment setting
Players in offline cashless payment setting Business Model Sales activity to merchants/Clearing of merchant transaction offline Payment Processing Payment Financial Merchants Center Network Institutions Offline market Domestic network Acquirer Terminal manufacturer POS vendor Processing center (CCT)
Slide 62: CCT (Credit Center Terminal)
CCT (Credit Center Terminal, ⇒Card company-owned terminal) Business Model CCT(Credit Center Terminal) It is a terminal name authorized by the information processing center (CCT Center) designated by the Japan Credit Card Association (JCCA) and operated in accordance with the guidelines, etc., establ
Slide 63: Merchant POS (Merchant-owned terminals)
Merchant POS (Merchant-owned terminals) Business Model Merchant POS In general, POS (Point of Sales) is a generic term for a service that provides information on sales performance trends such as the date, time, quantity, and price of products sold, but in the credit industry, the term merchant POS i
Slide 64: Expansion in stera lineup
Expansion in stera lineup Business Model stera unit, mobile has been released in addition to stera terminal Usage expected to increase in different scenes New New Released in 2024 Planned release in Sept. 2024 Dec. Integrated Operation is Embedded in possible unmanned devices such as self check-out
Slide 65: Leveraged Growth Model
Leveraged Growth Model Business Model Fee and spread revenue are expanding with the market /growth in membership merchants Leveraged Growth N＋1 Recurring revenue N Recurring revenue Recurring-Model Revenue Spread Linking with the growth of TAM / membership merchants Fee Recurring-Model Revenue befor
Slide 66: Difference between terminals sold and active IDs Part 1
Difference between the number of terminals sold and the number of active IDs Part 1 Business Model Initial revenue = Number of terminals sold × Average selling price per terminal + Accessory sales + Development sales Number of active IDs = Number of terminals that have processed payment at least onc
Slide 67: Difference between terminals sold and active IDs 2
Difference between the number of terminals sold and the number of active IDs 2 Business Model Number of active ID is calculated quarterly and is not directly linked to initial revenue Replacing existing devices contributes to initial revenue, however, does not increase or decrease the number of acti
Slide 68: Details on each revenue ①
Details on each revenue ① Business Model Initial Content Revenue Model Payment terminal Revenue from Payment terminals purchased from terminal manufacturers, and then confirm • Terminal Selling Price × Units Sold ✓ More than 10 types of terminals sales certain measures of payment methods that each m
Slide 69: Details on each revenue ②
Details on each revenue ② Business Model Fee Content Revenue Model • TRX Volume× Processing Fee Processing It is a fee we charge toward monthly transaction volume based on the rate per transaction ✓ Processing fee is about ¥3 per transaction • Number of Order × Price of Roll Paper Roll paper This is
Slide 70: Fee ARPU
Fee ARPU (Fee revenue divided by Transaction volume) Business Model Unit price per fee is estimated to be around 5 yen Assumed to continue to fluctuate depending on sales of paper rolls ◼ Fee ARPU（Fee revenue divided by Transaction volume） ◼ Composition of Fee ARPU （Yen） 6.00 5.50 Image of linkage r
Slide 71: Number of Employees (Consolidated basis)
Number of Employees(Consolidated basis) Business Model Plans a net increase of 15 to 20 employees per fiscal year to achieve the management benchmarks. Assumed composition of work force is approximately 40% sales, 40% systems, and 20% administration Planned Plan to hire 15-20 people (consolidated ba
Slide 72: Concept of Spread revenue ratio to GMV
Concept of Spread revenue ratio to GMV Business Model Our total GMV is the sum of ①and ②below. Spread revenue is generated only in the case of ②Agent contract. Since ① also contributes significantly to GMV, the linkage between total GMV and Spread revenue tends to decline Enjoyable revenue ①Direct c
Slide 73: Relationship between active IDs & stock revenue
Relationship between number of active IDs & stock revenue Business Model In addition to the increase in the number of active IDs, revenue opportunities for Stock revenue will increase, but the status of subscriptions to paid services will differ depending on the needs/demand of merchants Payment Ter
Slide 74: Monetization by Payment Method
Monetization by Payment Method Business Model We operate different business models according to payment method as a cashless platformer. Growth in each payment method contributes to our growth as well Flow model revenue Recurring model revenue ① Initial ➁ Stock ③ Fee ④ Spread Credit・China Union Pay・
Slide 75: Revenue Model by Merchant Size
Revenue Model by Merchant Size Business Model We mainly acquire medium- to large-sized merchants through alliances with major financial institutions. We mainly acquire small merchants (=long tail segment) through our subsidiaries ◼ Four types of revenue model ◼ Revenue model related to the size of m
Slide 76: Medium-Term Strategy: Acquiring major merchants through alliances
Medium-Term Strategy Acquiring major merchants by focusing on alliances Business Model Meeting customer needs through enhanced credit payment functions and alliances with QR / points vendors Credit E-money QR code J-debit House points Common Points Duty exemption Terminals we offer Floor-Standing Mo
Slide 77: TRX-increase through cashless penetration
TRX-increase through cashless penetration Business Model TRX volume & value tend to go up in a few months to six months after the merchants introduced cashless payment for the first time ◼ Merchant A（Tokyo） Monthly TRX trend TRX Volume TRX Value Merchant Cash only ⇒ Introduce cashless payments N月 N
Slide 78: TAM (Total Addressable Market)
TAM(Total Addressable Market) Market Environment Transaction Value of cashless (face-to-face) payment is expanding rapidly, as the value of IoT / Unattended ◼ Offline Transaction value in Japan ◼ Potential market value of IoT/Unattended Private sector final consumption expenditure in Potential marke
Slide 79: Growth trend of domestic offline cashless market
Growth trend of domestic offline cashless market Market Environment The market for offline cashless payments is currently ¥98 tn, four times larger than the online market. Cashless penetration is expected to rise driven by government-led cashless policies (tn yen) 200 100% Offline cashless market si
Slide 80: Comparison to Market Growth
Comparison to Market Growth (May YoY) Market Environment Overall market growth is +11% YoY while GMO-FG grew +45% YoY, significantly exceeding macro trends Market GMV (Transaction value of credit card payment) GMO-FG GMV (tn yen) All (left axis) (100 mn yen) (100 mn yen) Retailers (left axis) 10 Aug
Slide 81: Composition Ratio of Domestic Cashless Payment Methods
Composition Ratio of Domestic Cashless Payment Methods Market Environment Even in an environment of significant growth in the proportion of QR codes, transaction value and volume of credit continue to grow Transaction Value Transaction Volume Composition 2019 2020 2021 2022 2023 Composition 2019 202
Slide 82: IoT/Unattended Market Growth
IoT/Unattended Market Growth Market Environment The number of terminals is expected to be equal to or greater than the market for payment terminals in real stores. Unattended market (= general term for vending/service machine market) is expected to expand further due to changes in the external envir
Slide 83: Trends in the number of foreign visitors to Japan
Trends in the number of foreign visitors to Japan Market Environment After a rapid recovery from the post covid, number of visitors has gradually stabilized Number of visiting foreigners (annually) Our inbound-related industry merchants （10K） 6,000 6,000 Government’s target Aggressively cultivate me
Slide 84: Our philosophy on growth strategies
Our philosophy on growth strategies Growth Strategy Our growth strategy is based on the perspective of "a payment platform that provides value to society as an infrastructure company supporting a cashless society”. We develop growth strategies focusing on “value creation” growth strategy ⚫ Market Sh
Slide 85: Strategy to Maximize Transaction Value
Strategy to Maximize Transaction Value Growth Strategy We created a new payment processing route with alliance partners. This route increases GMV, as the route reduces costs to participating merchants and acquirers Merchants Acquirers Competitor/Peer Terminals Conventional Retail Route Processing Pa
Slide 86: Strategy to Maximize Transaction Value expanded
Strategy to Maximize Transaction Value Growth Strategy Due to cashless settlement penetration, TAM of our service scope has continuously expanded – New process network alliance partner will contribute to GMV increase Offline Cashless (face-to-face) Market (2025E) GMV：¥138 tn/year Expansion Continuou
Slide 87: Improvements in Unmanned Terminals (IoT)
Improvements in Unmanned Terminals (IoT) Growth Strategy Unmanned Terminals (IoT) has strengthened alliance initiatives in multiple areas Initiatives to monetize data is planned to materialize in the near future Launched 2024 2025 Progress To be released March June Sept Dec March June Sept Hotel/gol
Slide 88: Data Services in the IoT Domain
Data Services in the IoT Domain Growth Strategy Started providing payment data service for merchandise vending machines, contributing to recurring- model revenue. Supporting merchants' operational efficiency improvement and sophistication (DX) using data IoT Appropriate stock replenishment and cash
Slide 89: Unique Positioning
Unique Positioning Competitive Advantage End-to-end solutions via one-stop platform allows us to create alliances with many players in the market ◼ Solutions in Offline Payment Market Customization Adaptation of Terminal Payment Clearing/ Maintenance/ (Customize Payment Top-End POS Methods) Settleme
Slide 90: Barriers to Entry (Regulations to be Followed)
Barriers to Entry （Regulations to be Followed） Competitive Advantage Many kinds of regulations exist in the face-to-face payment market depending on the payment method, and the number of regulations are increasing. As payment methods become more diversified, the barriers to entry become more challen
Slide 91: New topic of credit card industry
New topic of credit card industry Industry Topic In response to a request from the Japan Fair Trade Commission, Visa, Mastercard, and UnionPay announced their intention to disclose their interchange fee rates by the end of November Breakdown of MDR METI requires fee among credit card companies （mode
Slide 92: Shareholder Structure
Shareholder Structure Company Profile Actively engaged in IR activities for domestic and foreign institutional investors through 1-on-1 meetings and conference appearances, maintaining the ratio of foreign institutional investors at over 20%. GMO-PG Japanese Other enterprises Foreign Individuals ins
Slide 93: Affiliated Companies
Affiliated Companies Company Profile GMO-FG serves in offline face to face payment market as a consolidated subsidiary of GMO-PG GMO INTERNET GROUP （Internet infrastructure business） GMO PAYMENT GATEWAY （Online payment/Payment section of GMO internet group） Consolidated GMO EPSILON （Online payment/L
Slide 94: Company Profile
Company Profile Company Profile ■Company GMO Financial Gate, Inc.（TSE Growth Ticker:4051） ■Foundation September 1999 ■Address Humax Shibuya Building 7F, Shibuya Dogenzaka 1-14-6, Tokyo ■Stock Capital ¥1,638 mn(End of September 2024) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Represen
Slide 95: Reference
Reference Site name URL GMO Financial Gate https://gmo-fg.com/ IR https://gmo-fg.com/ir/ Sustainability https://gmo-fg.com/sustainability/ Recruitment information https://gmo-fg.com/recruit/ GMO Financial Gate (English) https://gmo-fg.com/en/ GMO Payment Gateway https://www.gmo-pg.com/ Cashless Road
Slide 96: Thank you
Thank you GMO Financial Gate, Inc. (TSE Growth 4051) IR web site URL https://gmo-fg.com/en/index.html Copyright 2024 GMO Financial Gate, Inc.