Gmo Financial Gate, Inc. · TSE:4051
Gmo Financial Gate — Q2 FY2025 Earnings Presentation
88 slides from Gmo Financial Gate's earnings presentation, May 15, 2025
Slide 1: Financial Results Briefing for Q2 FY2025
Financial Results Briefing for Q2 FY2025 Lower trends in Initial revenue due to downward trends in SME. Recurring revenue leads to operating profit progress. Aim to expand TAM by expanding business domain May 15, 2025 GMO Financial Gate, Inc. 20th IR Presentation (Ticker:4051, TSE-Growth) https://gm
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 May 15, 2025 Note that presentation material content is subject to cha
Slide 3: Table of Main Agenda
Table of Main Agenda Contents 1. Summary of Financial Results for Q2 FY2025 2. KPI / Business Highlights 3. Growth Strategy and Progress Supplemental Information 4. Financial Information, Investment and Shareholder Return Policies 5. ESG Initiatives (Details) 6. Appendix Copyright 2025 GMO Financial
Slide 4: Summary of Financial Results for Q2 FY2025
Summary of Financial Results for Q2 FY2025 1 Copyright 2025 GMO Financial Gate, Inc.
Slide 5: 1.1 Q2 FY2025 Summary
1.1 Q2 FY2025 Summary Recurring revenue and software development revenue leads to growth in profits at each stage Revenue slightly down YoY due to downward trend in SME, large project in the previous fiscal year ●Q2 FY2025 Results P 6 ‐Revenue: ¥9.04 bn (YoY ▲2.1%) Progress towards 1H forecast 93.5%
Slide 6: 1.2 Summary of Financial Results
1.2 Summary of Financial Results Financial: Profit growth due to the expansion of recurring revenue and software development revenue KPI: Transaction volume/value steadily increased due to acquisition of highly active merchants Forecast Progress （mn yen） 1H FY2024 1H FY2025 YoY FY2025 1st half towar
Slide 7: 1.3 Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Initial results were down due to decrease in demand from SME, large projects from the previous FY Profit continues to grow strongly due to the expansion of recurring revenue and software development revenue ◼ Revenue （mn yen） （単位：百万円） (▲) Initial: Mainly
Slide 8: 1.4 Revenue by Business Model (YoY)
1.4 Revenue by Business Model (YoY) Initial: Decrease in demand from SME, impact of large-scale projects in the previous FY led to YoY decrease Recurring-model: High activity from select merchants led to growth mainly from fee revenue (mn yen) 1H FY2024 1H FY2025 YoY (Composition %) (Composition %)
Slide 9: 1.5 Revenue by Business Model (Quarterly)
1.5 Revenue by Business Model (Quarterly) Initial: steady growth, with focus on small and medium-sized projects Recurring-model: activation of terminals from large projects concentrated in end of Q2 – recurring model as a whole will further accelerate from Q3 Initial Revenue Recurring Revenue （mn ye
Slide 10: 1.6 Stock Revenue Expansion Initiatives
1.6 Stock Revenue Expansion Initiatives Strengthening initiatives in payment related business DX and support increased payment activity – will return to YoY+25% growth by FY26 Stock Revenue Expansion Image Initiatives 実績 Results 見通し Forecast Core Payment Solutions Support increased payment activity
Slide 11: 1.7 Measures to improve spread revenue
1.7 Measures to improve spread revenue Cover the impact of reviewing merchant portfolio with revenue improvement measures Aim for +15-20% YoY growth Spread Revenue Expansion Image Spread Revenue Initiatives Category Details Revenue Contribution Date Revenue 実績 Results 見通し Forecast impact • Developed
Slide 12: 1.8 Operating Profit Forecast beyond 3Q
1.8 Operating Profit Forecast beyond 3Q Revenue: Aim to steadily build up initial revenue Operating profit: Progress is exceeding budget. 2H will see future investments based on profit progress Revenue Operating Profit Measures （mn yen） （mn yen） H1 H2 Revenue 25,000 2,500 ⚫ Initial 22,200 (Large) Ea
Slide 13: KPI / Business Highlights
KPI / Business Highlights 2 Copyright 2025 GMO Financial Gate, Inc.
Slide 14: 2.1 Consolidated KPI (Number of active terminals)
2.1 Consolidated KPI (Number of active terminals) Activation of terminals for large merchants contributes to steady increase in Active IDs Continue to increase Active IDs to yearly increase goal of 60-70Ks 有人端末 Manned 無人端末(IoT) Unmanned 他社販売端末 Sold by 端末レス Terminal-less terminal terminal (IoT) other
Slide 15: 2.2 Consolidated KPI (Quarterly Transaction volume / GMV)
2.2 Consolidated KPI (Quarterly Transaction volume / GMV) In addition to seasonal effects, activation of terminals at large merchants were concentrated near the end of Q2, resulting in a decrease QoQ Number of Transaction Volume Transaction Value (GMV) （mn） （100 mn yen） 250 20,000 200 15,000 YoY +28
Slide 16: 2.3 Top Merchants (GMV basis)
2.3 Top 30 Merchants (GMV basis) Two household goods stores, a major commercial facility, and a drug store have newly entered the top rankings. As for existing merchants, the daily life necessities genre (supermarket, 100 yen shop, restaurants) is increasing Q2 FY2024 Q2 FY2025 Gentlemen's Clothing
Slide 17: 2.4 Expanding No. of Merchants in Daily Life Necessities
2.4 Expanding No. of Merchants in Daily Life Necessities (top 30 merchants) Steady acceleration in the acquisition of merchants in daily life necessities – an area that is less affected by economic trends (supermarkets, household goods stores, drug stores, 100-yen shops, etc.) Q2 FY2023 Q2 FY2024 Q2
Slide 18: Growth Strategy and Progress
Growth Strategy and Progress 3 Copyright 2025 GMO Financial Gate, Inc.
Slide 19: 3.1 Profit Roadmap
3.1 Profit Roadmap Promoting mid- to long-term measures to achieve operating profit of 10 billion yen by 2033 Strategy 150 Operating Profit Growth Curve Current Plan New Plan 1 Acquire multi-industry/high-growth enterprises by launching FY2033 next-generation multipayment terminals Solution Assets S
Slide 20: 3.2 Expanding TAM for profit growth
3.2 Expanding TAM for profit growth After IPO, GMO-FG outgrew the core payment solutions market – will expand TAM to payment related business DX and support increased payment activity to achieve OP goal Support increased payment activity Payment related business DX Core payment solutions 2024 2030 2
Slide 21: 3.3 Ecosystem Expansion
3.3 Ecosystem Expansion Core payment solutions: expanding monetization through enhanced functionality Payment related business DX, support increased payment activity: continue to increase ARPU by expanding solution asset lineup Plan to raise ARPU Support increased payment activity ahead of schedule
Slide 22: 3.4 Recurring ARPU Initiatives
3.4 Recurring ARPU Initiatives Acquiring merchants that are expected to have high transaction volumes (high ARPU) We plan to further increase ARPU by proposing additional solutions (+α) to these merchants Recurring ARPU High ARPU merchant acquisition status / future outlook ARPU mainly from core pay
Slide 23: 3.5 Profit Growth Cycle Based on Track Record
3.5 Profit Growth Cycle Based on Track Record Continue to implement profit growth based on below three KPIs to achieve operating profit target Increase Achieve 1mn Active IDs 1H 1H recurring ARPU to evaluation: 35K ID by FY33 evaluation: 10K 25K JPY (on pace for 20K 121.0 on full-year basis) 101.0 Y
Slide 24: 3.6 Progress of Project Pipelines
3.6 Progress of Project Pipelines Pilot release at some facilities for large commercial facility chain B Large Large New In ARPU Mandated Large commercial commercial project competition commercial facility chain C facility chain E High Large facility chain B Size of bubble: project size commercial U
Slide 25: 3.7 Expansion of Payment Platforms - Mobility Domain
3.7 Expansion of Payment Platforms - Mobility Domain 134 institutions have installed the mobility domain due to the increase in inbound tourists Service implementation is planned for the Sapporo Municipal Subway Implementation at Public Transportation Institutions Number of Tourists and Mobility Set
Slide 26: 3.8 Expanding use of Contactless NFC Payment
3.8 Expanding use of Contactless NFC Payment The percentage of credit touch payments at our processing center has exceeded 60%. 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 processing centers / Proport
Slide 27: 3.9 Expanding ESG Initiatives
3.9 Expanding ESG Initiatives Set long-term greenhouse gas reduction targets (2030 and 2050) Plan to be the first TSE growth company to achieve net-zero GHG emissions for 2050 SBT*1 ESG Initiative Roadmap To Do’s FTSE Score Acquisition Corporate value Present /Improvement Obtaining SBT *1 certificat
Slide 28: Supplemental Information: Financials, Investment / Shareholder Returns
Supplemental Information Financials, Investment / Shareholder Returns 4 Copyright 2025 GMO Financial Gate, Inc.
Slide 29: 4.1 Profit & Loss
4.1 Profit & Loss (Thousand) 1H FY2024 1H FY2025 YoY Revenue 9,244,148 9,046,196 ▲ 2.1% COGS 6,543,482 5,647,354 ▲ 13.7% Gross profit 2,700,665 3,398,842 +25.9% SG&A 1,769,553 2,038,170 + 15.2% Operating profit 931,263 1,382,864 +48.5% Profit before income taxes 924,400 1,379,388 +49.2% Profit attri
Slide 30: 4.2 Revenue by Business Model (Quarterly)
4.2 Revenue by Business Model (Quarterly) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (mn yen） FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 FY2024 FY2025 FY2025 Initial 855 1,103 1,525 1,682 1,454 1,643 2,136 1,927 2,220 2,905 3,4
Slide 31: 4.3 Changes in Revenue Composition and Gross Profit Margin
4.3 Changes in Revenue Composition and Changes in Gross Profit Margin Gross profit margin fluctuates depending on sales composition, but has been on an upward trend since 2023/9 (Q2) Initial's gross profit margin continues to improve due to changes in terminal revenue mix and the contribution of hig
Slide 32: 4.4 Gross profit composition ratio
4.4 Gross profit composition ratio Growth in recurring revenue leads to steady profitability base Composition by Product Category (Revenue and Gross Profit) （mn yen） 20,000 18,705 15,909 15,000 6,797 4,792 36% 30% 10,295 64% 10,000 70% 3,132 Recurring 30% 64% 6,046 11,116 11,907 5,000 Initial 70% 3,
Slide 33: 4.5 Balance Sheet
4.5 Balance Sheet Cash and cash equivalents: Decrease due to acquisition of treasury stock and dividend payments Inventories: Ensure stable inventory levels Q2 FY2025（thousand） Cash and cash equivalents：¥ 4.12 bn A decrease of 940 million yen from the end of the fourth quarter. Mainly due to the acq
Slide 34: 4.6 Balance Sheet (IFRS)
4.6 Balance Sheet (IFRS) Q4 Q1 Q2 （mn yen） FY2024 FY2025 FY2025 QoQ Cash and cash 5,060 3,653 4,122 +469 equivalents Trade accounts 3,166 2,186 2,434 +248 receivable Current assets Merchandise 3,170 2,914 2,779 ▲135 Assets Other 234 268 457 +189 Non-current assets 2,574 2,394 2,672 +278 Total Assets
Slide 35: 4.7 Balance Sheet (Quarterly: Japanese GAAP)
4.7 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 36: 4.8 Consolidated KPIs (Number of Active Terminals)
4.8 Consolidated KPIs（Number of Active Terminals） The number of unmanned terminals continues to increase due to the trend of self-service and labor shortages Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 QoQ YoY （thousand） FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24
Slide 37: 4.9 Capital Allocation Policy
4.9 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 38: 4.10 Investment Policy
4.10 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 39: 4.11 Efficiency Indicators and Cost of Capital
4.11 Efficiency Indicators and Cost of Capital Management that is conscious of efficiency, investment return, and capital cost Mid-term plan Future Measures 21% ROE ROA 18.9% ROE：25%+ ROE 19% ⚫ Increase profit level by improving recurring type sales 17% 15.9% ⚫ Execution of fellowship projects that
Slide 40: 4.12 Shareholder Return Policy
4.12 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 41: Supplemental Information: ESG Initiatives (Details)
Supplemental Information ESG Initiatives (Details) 5 Copyright 2025 GMO Financial Gate, Inc.
Slide 42: 5.1 (Reprint) Expanding ESG Initiatives
5.1 (Reprint) Expanding ESG Initiatives Set long-term greenhouse gas reduction targets (2030 and 2050) Plan to be the first TSE growth company to achieve net-zero GHG emissions for 2050 SBT*1 ESG Initiative Roadmap To Do’s FTSE Score Acquisition Corporate value Present /Improvement Obtaining SBT *1
Slide 43: 5.2 ESG-related topics (Materiality, CDP Score B)
5.2 ESG-related topics (Materiality Identification/CDP Score B earned) (1) Identify materiality. (2) Received a B score for two consecutive years, the only one in the growth market, from CDP, which is centered on prime companies. Aim to improve scores in low-rated items and obtain an A. ESG Material
Slide 44: 5.3 ESG Initiatives / Environment
5.3 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 45: 5.4 ESG Initiatives / Social
5.4 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 46: 5.5 ESG Initiatives / Governance
5.5 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 47: 5.6 ESG Initiatives / Board of Directors
5.6 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 48: 5.7 ESG Initiatives / Executive Skill Chart
5.7 ESG Initiatives / Executive Skill Chart 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 S
Slide 49: Appendix
Supplemental Agenda Appendix 6 Copyright 2025 GMO Financial Gate, Inc.
Slide 50: 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 51: 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 52: 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 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 (1H FY2025) ① Terminal Flow Model Rev Sales Initial 55.0% Business Stock 10.9% ②
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: 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 Planned release in Released in 2024 2024 Dec. Sept. Embedded in unmanned devices such as self check-out registers Smallest in class Conve
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 Recurring-Model Revenue befor
Slide 60: Initial Revenue and No. of Active Terminals (Quarterly)
Initial Revenue and No. of Active Terminals (Quarterly) Business Model Initial revenue: steadily increasing through small and medium-sized projects Active ID: gradual increase toward YoY net increase of 60-70K IDs 1H: 35.8K +17.7 イニシャル売上 Initial （単位：百万円） revenue（mn yen） +18.0 terminals （thousand） (e
Slide 61: 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 62: 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 63: Revenue Details (1)
Revenue Details (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 merchan
Slide 64: Revenue Details (2)
Revenue Details (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 a sal
Slide 65: Fee ARPU (Fee revenue divided by Transaction volume)
Fee ARPU (Fee revenue divided by Transaction volume) Business Model ◼ Fee ARPU（Fee revenue divided by Transaction volume） ◼ Composition of Fee ARPU （Yen） 6.00 5.19 5.00 4.92 4.94 4.94 4.92 4.90 4.91 5.00 4.81 4.81 4.71 4.39 Low Image of linkage ratio to the number of transaction volume High 4.12 4.0
Slide 66: Same-store (Merchant) Growth (Number of Transactions)
Same-store (Merchant) Growth (Number of Transactions) Business Model Payment activity at merchant merchants 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)
Slide 67: 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 68: 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 69: Relationship between number of 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 70: 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 71: 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 72: 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 73: Formation of Win-Win Ecosystem
Win-Win Ecosystem Formation Case Study Business Model 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 Phase 1 In
Slide 74: 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 mark
Slide 75: Growth trend of domestic offline cashless market
Growth trend of domestic offline cashless market Market Environment The market for offline cashless payments is currently ¥112 tn, five times larger than the online market. The cashless payment ratio has reached the government's target of 40%. We will continue to improve the environment to reach the
Slide 76: 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 of credit continue to grow Transaction Value Composition ratio 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 77: 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 78: 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 79: 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 80: Strategy to Maximize Transaction Value (6x)
Strategy to Maximize Transaction Value Growth Strategy Due to cashless settlement penetration, TAM of our service scope has continuously expanded New processing network alliance partner will contribute to GMV increase Offline Cashless (face-to-face) Market (2027)(*1) GMV：¥167 tn/year Expansion Conti
Slide 81: 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 82: 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 83: Breakdown of MDR
Breakdown of MDR 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 （model case：AOV ¥5K SM
Slide 84: Shareholder Structure
Shareholder Structure Company Profile Actively engaged in IR activities, including one-on-one meetings and participation in conferences hosted by securities companies.Ownership ratio of foreign institutions remains at a high level. GMO-PG Japanese Other enterprises Foreign Individuals institutional
Slide 85: 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 86: 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 March 2025) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Representati
Slide 87: 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 88: Thank you
Thank you GMO Financial Gate, Inc. (TSE Growth 4051) IR web site URL https://gmo-fg.com/en/index.html Copyright 2025 GMO Financial Gate, Inc.