GMO Financial Gate, Inc. · TSE:4051
GMO Financial Gate — Q3 FY2023 Earnings Presentation
95 slides from GMO Financial Gate's earnings presentation, Aug 10, 2023
Slide 1: Financial Results Briefing for Q3 FY2023
Financial Results Briefing for Q3 FY2023 Strategy to expand market share has been successful, resulting in growth in high profitable recurring revenue August 10, 2023 13th IR Presentation GMO Financial Gate, Inc. (Ticker:4051, TSE-Growth) https://gmo-fg.com/ Copyright 2023 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 August 10, 2023 Note that presentation material content is subject to
Slide 3: Meeting Main Agenda
Meeting Main Agenda agenda 1. Summary of financial Results for Q3 FY2023 2. Business Highlights 3. Revision of FY2023 Forecast 4. Growth Strategy and Progress Supplemental Agenda 5. Financial Information, Investment and Shareholder Return Policies 6. ESG Initiatives (Details) 7. Appendix Copyright 2
Slide 4: Summary of financial Results for Q3 FY2023
Summary of financial Results for Q3 FY2023 1 Copyright 2023 GMO Financial Gate, Inc.
Slide 5: 1.1 Q3 FY2023 Summary
1.1 Q3 FY2023 Summary In addition to initial revenue exceeding the plan, recurring-model revenue also grew with the start of operation of large-lot projects. Revised revenue and gross profit upward based on strong sales trends. ⚫ Q3 FY2023 Cumulative P 6,７ - Revenue： ¥12.00billion (YoY+61.2%) Progre
Slide 6: 1.2 Summary of Financial Results
1.2 Summary of Financial Results Both revenue and profit are progressing smoothly against our forecast. Progress towards forecast （Millions of yen） Q3 FY2022 Q3 FY2023 YoY FY2023 Revenue 7,446 12,003 ＋61.2% 88.1% Gross profit 1,934 2,900 ＋49.9% 88.6% Operating profit 563 976 ＋73.2% 95.8% Profit attr
Slide 7: 1.3 Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Both initial and recurring-model contributed to revenue growth. Operating profit grew faster than revenue while continuing to invest aggressively in the future. ◼ Revenue （Unit：Millions of yen） (＋) Initial revenue, centered on revenue of terminal sales, e
Slide 8: 1.4 Revenue by Business Model (YoY)
1.4 Revenue by Business Model (YoY) The composition of initial revenue increased due to the contribution of small and medium-sized merchants in addition to large-lot deals. In the recurring-model business, fee is strong, and spreads, which had been struggling, were recovering as planned. Q3 FY2022 Q
Slide 9: 1.5 Gross profit composition ratio
1.5 Gross profit composition ratio Successfully establishing a stable profit base through growth in high-margin recurring-model revenue. Composition by Product Category (Revenue and Gross Profit) （Unit：Millions of yen） 16,000 Initial Recurring 15,000 14,000 Recurring 12,000 approx.30% 10,294 10,000
Slide 10: 1.6 Initiatives to accelerate Spread Revenue
1.6 Initiatives to accelerate Spread Revenue Due to the implementation of the following measures, we expect to catch up to the YoY +20-25% line in this fiscal year. Currently focusing on accumulating backlog in next fiscal year Q1 onwards. Category Initiatives Progress Business in Manned terminals F
Slide 11: 1.7 Revenue by business model (Quarterly)
1.7 Revenue by business model (Quarterly) Initial: Significant growth due to the contribution of large-lot deals starting from Q1, combined with the accumulation of small and medium-sized merchants. Recurring-model: Steady expansion backed by an increase in the number of active terminals, also recor
Slide 12: 1.8 Initial Revenue and Number of Active Terminals (Quarterly)
1.8 Initial Revenue and Number of Active Terminals (Quarterly) Terminals for Japan Post started operation from Q3, and the number of active terminals increased rapidly. In addition, the number of terminals for small and medium-sized merchants is increasing steadily, and the increase is the highest e
Slide 13: 1.9 Consolidated KPIs (Number of active terminals)
1.9 Consolidated KPIs（Number of active terminals） Achieved an unprecedented increase in the number of active terminals, mainly manned terminals. Active terminals overall ：YoY＋89.5K、YoY+48.7% （Unit: Thousand） YoY 300 QoQ ＋39.3K Manned terminal Unmanned terminal Sold by others 273.2 Sold by others 19.
Slide 14: 1.10 Consolidated KPIs (Quarterly Transaction volume / GMV)
1.10 Consolidated KPIs (Quarterly Transaction volume / GMV) Both the number of payments processed and GMV exceeded our target YoY +50%. Achieved high QoQ growth compared to Q2, which has weak seasonality. Number of transaction volume Transaction value (GMV) （Unit：million） 12,000 YoY +62.8% 150 140 Y
Slide 15: Business Highlights
Business Highlights 2 Copyright 2023 GMO Financial Gate, Inc.
Slide 16: 2.1 Merchant Industry
2.1 Merchant Industry Terminal sales to Japan Post expanded in Q3. Continuing the trend of increasing the number of units for small merchants with stera pack. One-stop service proposals with High inbound Expanded Store scale：Large alliance partners tourism demand Neutral Expanded Post office Drug st
Slide 17: 2.2 Transaction Trends by Industry (Q3)
2.2 Transaction Trends by Industry (Q3) ： High inbound tourism demand Although the recovery of restaurants, etc., seems to be slowing down, recovery continues in the industries where attracts inbound tourism. Merchant C Merchant Ａ Transaction Volume Taking a break from recovery Transaction Volume Tr
Slide 18: 2.3 Top ranked merchants (GMV basis)
2.3 Top 30 ranked merchants (GMV basis) The transportation/logistics category is newly ranked in the top ranks. There are many merchants in the apparel, hotel, and travel-related industries that have ranked high. Q3 only FY2022 Q3 only FY2023 Super Market A Apparel D Drug Store A Super Market A Reta
Slide 19: 2.4 Comparison with Market Growth
2.4 Comparison with Market Growth (single month comparison, May 2023) While the overall market is currently growing +13% YoY, our GMV is growing +62% YoY. Growth of existing merchants and acquisition of new merchants is driving our growth. Market GMV (Transaction value of credit card payment) GMO-FG
Slide 20: 2.5 Payment platform grows together with merchants
2.5 Payment platform grows together with merchants In the Q3 only, our GMV growth rate overall: +63% YoY, existing: +35% YoY Merchants grow with our payment platform. GMO-FG GMV growth rate Newly acquired merchants Growth of GMV overall (¥100 million) Existing merchants Growth of GMV from existing m
Slide 21: 2.6 Growth of Existing Merchants
2.6 Growth of Existing Merchants In addition to new acquisitions, existing merchants have accumulated successful cashless payment experiences, leading to continued growth in the number of GMV and the number of transaction. Build a cashless platform that grows together with merchants. Cashless Paymen
Slide 22: Revision of FY2023 Forecast
Revision of FY2023 Forecast 3 Copyright 2023 GMO Financial Gate, Inc.
Slide 23: 3.1 Upward Revision of FY2023 Forecast
3.1 Upward Revision of FY2023 Forecast Revised revenue and gross profit forecasts upward in light of steady progress in excess of Q3 plan. Operating profit and below remain unchanged. (aggressive future investment is planned to continue) FY2023 FY2023 YoY % change FY2022 （Unit : millions of yen） Ful
Slide 24: Growth Strategy and Progress
Growth Strategy and Progress 4 Copyright 2023 GMO Financial Gate, Inc.
Slide 25: 4.1 Growth strategy on mid-term target
4.1 Growth strategy on mid-term target Progress in developing large-lot deals with next-generation multi-payment terminal. Steady progress in market share expansion strategy. Upward revision of profit forecast increases the probability of achieving the profit target of ¥1.5 billion for FY2025. 2022
Slide 26: 4.2 Manned Terminal Topics
4.2 Manned Terminal Topics Action plans 1 2 3 4 Terminal installations for Japan Post were concentrated in 2Q and 3Q, and started operation in April, contributing to the expansion of various KPIs. Currently focusing on projects for the next fiscal year and building up a well-balanced forecast withou
Slide 27: 4.3 Point - Economic Zone solution through vertical expansion
4.3 Point - Economic Zone solution through vertical expansion Action plans 1 2 3 4 Establishing a sticky payment platform by responding to the development of “Point” Image of point economic zone formation through cashless Development example for point business Available Scheduled to be provided in t
Slide 28: 4.4 Expansion of Payment Platforms - Mobility Domain
4.4 Expansion of Payment Platforms - Mobility Domain Action plans 1 2 3 4 With the recent increase in the number of foreign visitors to Japan, mobility payments in urban areas are on the rise. Provided services to 52 businesses in June operation results. Demonstration experiment scheduled to start a
Slide 29: 4.5 Expanding use of contactless NFC payment
4.5 Expanding use of contactless NFC payment The percentage of credit touch payments(also know as NFC, near field communication) at our 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 payme
Slide 30: 4.6 Expanding ESG support
4.6 Expanding ESG support Strengthening ESG related disclosure for aiming future step up to the upper division of Tokyo stock exchange. We also focus on improving governance structure and human capital disclosure over the time. ESG Roadmap Major Milestones Corporate value FTSE Score Acquisition/Impr
Slide 31: Supplemental Agenda: Financial Information and Shareholder Return Policies
Supplemental Agenda Financial Information, Investment and Shareholder Return Policies 5 Copyright 2023 GMO Financial Gate, Inc.
Slide 32: 5.1 Profit & Loss
5.1 Profit & Loss Gross profit margin declined due to changes in revenue composition, but operating profit margin improved slightly on the back of increased revenue. Q3 FY2022 Q3 FY2023 (Unit：Thousands) YoY Cumulative（actual） Cumulative（actual） Revenue 7,446,363 12,003,785 +61.2% COGS 5,511,729 9,10
Slide 33: 5.2 Revenue by business model (YoY)
5.2 Revenue by business model（YoY) Continuing well-balanced growth in each revenue item Initial Stock Fee Spread 835 1,702 877 707 882 621 560 350 8,587 442 5,234 3,484 FY2021 3Q FY2022 3Q FY2023 2Q Copyright 2023 GMO Financial Gate, Inc. 33
Slide 34: 5.3 Revenue by business model (Quarterly)
5.3 Revenue by business model (Quarterly) Initial posted a record high quarterly revenue by a large margin thanks to the development of large franchised stores. Each recurring-model also grew, and spreads, which had lagged behind, continued to recover. まん延防止等 重点措置 （Unit : Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 35: 5.4 Changes in Revenue Composition and Gross Profit Margin
5.4 Changes in Revenue Composition and Changes in Gross Profit Margin Although it was on a downward trend due to changes in the revenue composition, it is gradually bottoming out. In 3Q, initial revenue increased, but there were many profitable consumables revenue, and the gross profit margin improv
Slide 36: 5.5 Balance sheet
5.5 Balance sheet Inventory levels declined as shipments progressed, but maintained a level capable of meeting strong demand. Refinancing with an eye on interest rate trends and ensuring liquidity on hand. ◼ Points ・Merchandise: ¥2.73 billion End of Q3 FY2023（Thousands of yen） Decrease of 398 millio
Slide 37: 5.6 Balance sheet (Quarterly)
5.6 Balance sheet (Quarterly) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 （Unit : millions of yen） FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 QoQ YoY FY2023 Cash and cash equivalents 3,434 1,425 1,618 2,231 2,519 1,720 2,190 2,779 +589 +548 Current Merchandise 1,615 2,177 2,523 1,545 1,507 2,511 3,131 2,733 -398
Slide 38: 5.7 Consolidated KPIs (Number of Active Terminal)
5.7 Consolidated KPIs（Number of Active Terminal） Steady increase in the number of active terminals driven by manned terminals. Steady expansion of unmanned terminals in response to the trend toward self-service and labor-saving. （Unit: FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 F
Slide 39: 5.8 Progress of GMV by quarter (vs. original plan)
5.8 Progress of GMV by quarter (vs. original plan) Steady progress toward the mid-term target of ¥5 trillion in GMV Continued expansion of scale and progress rate on par with past results in this fiscal year Percentage of GMV progress against initial plan FY2021 (Actual) FY2021 FY2022 FY2023 Plan 0.
Slide 40: 5.9 Capital Allocation Policy
5.9 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 41: 5.10 Investment Policy
5.10 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 42: 5.11 Shareholder Return Policy
5.11 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 43: ESG Initiatives (Details)
Supplemental Agenda ESG Initiatives (Details) 6 Copyright 2023 GMO Financial Gate, Inc.
Slide 44: 6.1 (Reposted) Expanding ESG support
6.1 (Reposted) Expanding ESG support Anticipating continuous improvement in corporate value, advanced ESG measures ahead of others. future step up. In anticipation, proactively implement enhancement of governance system and personnel disclosure. Future major todo ESG Roadmap (Preemptively respond fr
Slide 45: 6.2 ESG Initiatives / Environment
6.2 ESG Initiatives / Environment In the provision of our payment platform, we promote business operations that consider environmental impact Specific Efforts Environment Related Data Our Supply Chain GMO-FG downstream ⚫ Recycled paper is used for receipts (paper rolls) used at upstream each payment
Slide 46: 6.3 ESG Initiatives / Social
6.3 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 * We refer to our employees and other officers and em
Slide 47: 6.4 ESG Initiatives / Governance
6.4 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 and a fair, transparent, and efficient business execution structure Specific Efforts Governance Related
Slide 48: 6.5 ESG Initiatives / Board of Directors
6.5 ESG Initiatives / Board of Directors Governance structure built around technology and financial background Internal Director (Managing Director) Director concurrently serving as GMO-PG Kentaro Sugiyama ／ Tatsuya Koide ／ Director President and Representative Director 35 years in the systems indus
Slide 49: 6.6 ESG Initiatives / Executive Skills Matrix
6.6 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. * GMO-ism is the collective name for the company motto and co
Slide 50: Appendix
Supplemental Agenda Appendix 7 Copyright 2023 GMO Financial Gate, Inc.
Slide 51: 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 52: 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 １Q ２Q ３Q ４Q １Q １Q ２Q ３Q ４Q １Q Initial Revenue（Terminal Sales・Software Development） Initial Revenue（Initia
Slide 53: 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 54: 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 (FY2023 Q3 cumulative) ① Terminal Flow Model Rev Sales Initial 71.5％ Business St
Slide 55: 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 56: 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 57: 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 58: Image of rise in Rev & OP
Image of rise in Rev & OP Business Model Phase1: Focus on sales/activation of payment terminals and revenue will be fluctuated. Phase2: Expansion of Recurring-Model revenue Increase of Market Share (approx. up to 2025) Rise in Profit Margin Revenue: Increase at a CAGR of 25% or more, although the ex
Slide 59: 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 Stoc-model revenue before N-1
Slide 60: Difference between terminals sold and active terminals
Difference between the number of terminals sold and the number of active terminals Business Model Initial revenue = Number of terminals sold × Average selling price per terminal + Accessory sales + Development sales Number of active terminals = Number of terminals that have processed payment at leas
Slide 61: Details on each revenue ①
Details on each revenue ① Business Model Initial Content Rev Model This is a sales revenue of payment terminals from merchants or credit card companies. Payment terminal All of first, we purchase hardware from manufactures. And confirm certain measures of • Terminal Selling Price × Units Sold paymen
Slide 62: Details on each revenue ②
Details on each revenue ② Business Model Fee Content Rev 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 ¥2 to ¥3 per transaction Sales of • No. of Order × Price of Roll Paper This is a
Slide 63: Fee ARPU (Fee revenue divided by Transaction volume)
Fee ARPU (Fee revenue divided by Transaction volume) Business Model Strengthening electronic slip storage services in anticipation of a paperless society in the future. Although there is a possibility of offsetting paper roll sales in the future, currently it is a factor that increases the unit pric
Slide 64: 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 Plan to hire 15-20 people (consolidated basis) eac
Slide 65: 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 66: Relationship between active terminals & stock revenue
Relationship between number of active terminals & stock rev Business Model In addition to the increase in the number of active terminals, revenue opportunities for Stock revenue will increase, but the status of subscriptions to paid services will differ depending on the needs/demand of merchants Ter
Slide 67: 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 68: 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 69: 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 70: 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 71: 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 72: Growth trend of domestic offline cashless market
Growth trend of domestic offline cashless market Market Environment The market for offline cashless payments is currently ¥89 trillion, six times larger than the online market. Cashless penetration is expected to rise to as much as 80%, driven by government-led cashless policies （Unit : trillion yen
Slide 73: 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 Composition 2019 2020 202
Slide 74: 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 75: Trends in the number of foreign visitors to Japan
Trends in the number of foreign visitors to Japan Market Environment The number of foreign visitors to Japan decreased sharply due to the COVID, but we are also focusing on preparations for a recovery in demand Number of visiting foreigners (annually) Our inbound-related industry merchants （Unit : 1
Slide 76: 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 77: 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 78: Strategy to Maximize Transaction Value
Strategy to Maximize Transaction Value Growth Strategy Maximize GMV through a new processing network and by pursuing B-to-B alliances (*1) Offline Cashless (face-to-face) Market (2025 E) GMV： ¥128 trillion/year Expansion Offline Cashless (face-to-face) Continuous Market (2022 E) GMV： ¥95 trillion/ye
Slide 79: Expansion of stadium installation cases
Expansion of stadium installation cases Growth Strategy Catching the wave of resumed economic activity, mobile vending at stadiums, which used to be cash- only, is steadily increasing GMO SONIC 2023 (2023/1) Sports spectator facilities, etc. ⚫ Establish a completely cashless payment environment ⚫ Pr
Slide 80: Progress in Unmanned Terminal (IoT) Business
Progress in Unmanned Terminal (IoT) Business Growth Strategy Strengthening alliances in the unmanned terminal (IoT) field in response to the trend toward manpower saving. Promoting various projects with an eye on future IoT-related data monetization. 2022 2023 2024 Progress Launched To be released O
Slide 81: Growth Strategies for 2025 and Beyond
Growth Strategies for 2025 and Beyond Growth Strategy For 2025 and beyond, we aim to grow recurring-model revenue in the payment-related field. Aim at a continuous 25% growth in OP through business diversification ：High inbound tourism demand Image of service expansion Area of focus OP (100 million
Slide 82: 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 83: Alliance Overview
Alliance Overview Growth Strategy Working with alliance partners allows us to secure participating merchants consistently and steadily Alliance Partners Payment/ Unattended POS GMO Group Financial Terminal Manufacturers Synergies Institutions Manufacturers Merchants Public Service Agency Healthcare/
Slide 84: 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 85: 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 86: Government Promotion of Cashless Payments
Government Promotion of Cashless Payments Industry Topic METI announced its Cashless Vision policy to encourage cashless payments. We expect the Japanese cashless market to expand rapidly in response Present Impact on our business Increasing demand for cashless terminals as merchants are obligated t
Slide 87: Expansion of credit card payment eligibility
Expansion of credit card payment eligibility Industry Topic The "Cashless Law" will go into effect in November 2022. Expansion of areas where payment can be made by credit card Feb 2008～ national pension contribution Application of individual law Jan 2017～ national tax provisions Apr 2019～ Patent an
Slide 88: 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 89: Initiatives for terminal-less payments
Initiatives for terminal-less payments Industry Topic Implemented various measures to prepare for future handset-less payments. Strengthening Initiatives in the Mobility Domain and Beverage Vending Machines Status of Our Efforts Tap to Phone NFC tagging touch payment Dec 2021～ Launched in FY2023 Sta
Slide 90: Share holder structure
Share holder structure Company Profile The ratio of foreign institutional investors increased again as a result of aggressive IR activities for domestic and foreign institutional investors through 1-on-1 meetings and conference appearances Japanese Foreign PG GMO-PG 国内機関 institutional investors その他法
Slide 91: Promotion of DX introduction to improve business efficiency
Promotion of DX introduction to improve business efficiency Company Profile Department Content in charge Whole VDI (virtual desktop) implementation for enhanced security Integrated operation of scheduling, internal portal, workflow, attendance system, and Whole expense reimbursement Whole Paperless
Slide 92: 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 100% GMO EPSILON （Online paym
Slide 93: 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 ¥1,618 Million(end of June 2023) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Represen
Slide 94: Link Collection
Link Collection Site name URL GMO Financial Gate https://gmo-fg.com/index.html IR https://gmo-fg.com/ir/index.html Sustainability https://gmo-fg.com/sustainability/index.html Recruitment information https://gmo-fg.com/recruit/index.html GMO Payment Gateway https://www.gmo-pg.com/ Cashless Roadmap 20
Slide 95: Thank you
Thank you GMO Financial Gate, Inc. (TSE Growth 4051) IR web site URL https://www.gmo-fg.com/ir/ Copyright 2023 GMO Financial Gate, Inc.