GMO Financial Gate, Inc. · TSE:4051
GMO Financial Gate — FY2023 Earnings Presentation
97 slides from GMO Financial Gate's earnings presentation, Nov 14, 2023
Slide 1: Financial Results Briefing for FY2023
Financial Results Briefing for FY2023 Increase in active terminals contributes to recurring revenue, leading to increase in market share and profitability November 14, 2023 14th IR Presentation GMO Financial Gate, Inc. (Ticker:4051, TSE-Growth) https://gmo-fg.com/ Copyright 2023 GMO Financial Gate,
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 14, 2023 Note that presentation material content is subject t
Slide 3: Table of Contents
Table Main Agenda of 1. Summary of Financial Results for FY2023 Contents 2. KPI 3. Business Highlights 4. FY2024 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 FY2023
Summary of Financial Results for FY2023 1 Copyright 2023 GMO Financial Gate, Inc.
Slide 5: FY2023 Summary
1.1 FY2023 Summary Increased revenue, profit above prior forecast, made aggressive recruitment and administrative expenses ●FY2023 Full Year Results P 6 ‐Revenue: ¥15.90 bn (YoY+54.5%) ‐Operating Profit: ¥1.12 bn (YoY+51.3%) ● Revenue Categories P 8 Quantitative ‐Initial Revenue: ¥11.11 bn (YoY+55.2
Slide 6: Summary of Financial Results
1.2 Summary of Financial Results Full year results ended above forecast revision released on August 9th – increased dividends due to profitability increase and profit sharing with shareholders FY2023 Full Year FY2023 Full Year Forecast Revision FY2022 Full Year FY2023 Full Year Results （Millions of
Slide 7: Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Revenue and gross profit are above forecast, leading to aggressive investment for future growth – however operating profit growth exceeds 1.5x YoY ◼ Revenue （Unit：Millions of yen） (＋)Initial revenue increased due to large contracts in 2Q, 3Q – more revenu
Slide 8: Revenue by business model (YoY)
1.4 Revenue by business model (YoY) Large pipeline conversion led to composition of initial sales, however, recurring revenue in fees led to revenue growth which led to the same level of growth with initial revenue. Spread returns to 20% growth (Unit：Millions of Yen) FY2022 FY2023 YoY (Composition %
Slide 9: Revenue by business model (Full Year)
1.5 Revenue by business model (Full Year) Initial, recurring continues steady YoY growth Pipelines and seasonal reasons led to bumpiness in QoQ, however, steady growth on a full year basis Initial Revenue Recurring Revenue （Unit：Millions of yen） （Unit：Millions of yen） 6,000 12,000 11,116 ストック Stock
Slide 10: Revenue by business model (Quarterly)
1.6 Revenue by business model (Quarterly) Initial: Concentrated pipeline conversion in 2Q、3Q – high level of pipeline conversion in 4Q Recurring: Consistent revenue increase due to increase in active terminals Initial Revenue Recurring Revenue （Unit：Millions of yen） （Unit：Millions of yen） 4,000 1,60
Slide 11: Gross profit composition ratio
1.7 Gross profit composition ratio Growth in recurring revenue leads to steady profitability base Composition by Product Category (Revenue and Gross Profit) （Unit：Millions of yen） 18,000 イニシャル Initial リカーリング型 Recurring 15,909 16,000 14,000 4,792 Recurring 30% 12,000 10,295 10,000 3,132 Recurring 30%
Slide 12: SG&A and Profit Trends (half-year transition)
1.8 SG&A and Profit Trends (half-year transition) Proactively executed investment for growth which are variable costs (1. performance based compensation, 2. other administrative costs) – however leveraged business growth which led to profitability increase （Unit：Millions of yen） 2500 Revenue 2000 Pe
Slide 13: KPI
KPI 2 Copyright 2023 GMO Financial Gate, Inc.
Slide 14: Main KPI (Full-year)
2.1 Main KPI (Full-year) No. of Active Terminals: Growth in manned and unmanned terminals drive the increase in the number of active terminals Number / GMV : Growth exceeded target of YoY +50% due to increase in number of active terminals Number of active terminals Number of transaction volume GMV （
Slide 15: Initial Revenue and No. of Active Terminals (Quarterly)
2.2 Initial Revenue and No. of Active Terminals (Quarterly) Initial revenue was bumpy due to pipeline conversion, however, number of active terminals led to steady growth +25.5 ( ) : Excluding, for Japan Post (+20.2) Initial revenue（Unit: Millions of yen） +39.3 298.8 4,000 Number of active terminals
Slide 16: Consolidated KPI (Number of active terminals)
2.3 Consolidated KPI（Number of active terminals） Continuous high growth mainly in manned terminals FY2023 Active terminals overall ：YoY＋99.2K、YoY+49.8% （Unit: Thousand） QoQ ＋25.5K 298.8 YoY 300 Manned terminal Unmanned terminal Sold by others 19.3 273.2 Sold by others FY2022 19.5 +0.2K 250 YoY＋65.5K
Slide 17: Consolidated KPI (Quarterly Transaction volume / GMV)
2.4 Consolidated KPI (Quarterly Transaction volume / GMV) Number of transaction, GMV leads to steady growth Decrease in GMV per terminal decreased, however, this is due to seasonality and increased penetration in the micropayment area Number of transaction volume Transaction value (GMV) （億円） （Unit：m
Slide 18: Business Highlights
Business Highlights 3 Copyright 2023 GMO Financial Gate, Inc.
Slide 19: Merchant Industry
3.1 Merchant Industry Terminals for Japan Post were placed on-site in 4Q Trends in installation locations have not changed significantly since 3Q – continuation of well balanced growth that is not dependent on specific industries One-stop service proposals with High inbound Expanded Store scale：Larg
Slide 20: Transaction Trends by Industry (Q4)
3.2 Transaction Trends by Industry (Q4) ： High inbound tourism demand Continuous growth in the hotel, tourism industry – the reopening effect has reached its peak Steadily reaching Merchant C Merchant Ａ Transaction Volume Transaction Volume its peak Transaction Value (GMV) Transaction Value (GMV) Ch
Slide 21: Top ranked merchants (GMV basis)
3.3 Top 30 ranked merchants (GMV basis) Hotels, tourism industry are ranked high due to reopening effect, however, dependence to specific merchants have decreased due to growth in GMV FY2022 4Q FY2023 4Q RetailerA RetailerA RetailerB Hotel/TravelB ApparelA ApparelA Drug StoreA Hotel/TravelA Retailer
Slide 22: Comparison to Market Growth (August YoY)
3.4 Comparison to Market Growth (August YoY) Market growth is at +15%YoY while GMO FG GMV is at +59% YoY Growth of existing merchants and acquisition of new merchants drives high growth Market GMV (Transaction value of credit card payment) GMO-FG GMV (100mn (100mn All (left axis) yen) yen) (tn yen)
Slide 23: Settlement Platform which Grows with its Merchants
3.5 Settlement Platform which Grows with its Merchants GMO-FG GMV grew at +58% YoY for 4Q, +31%YoY for existing merchants Merchants grew with GMO-FG’s settlement platform GMV Growth Rate Newly acquired Growth of (¥100 mn) merchants GMV overall 15,000 Existing Growth of GMV from merchants existing me
Slide 24: FY2024 Forecast
FY2024 Forecast 4 Copyright 2023 GMO Financial Gate, Inc.
Slide 25: Track Record of Growth
4.1 Track Record of Growth Goals: Revenue: CAGR +25%, Op Margin: +25% Track Record: Well above +25% growth Pre IPO Post IPO 5 years post IPO （Unit: Millions of yen） （Unit: Millions of yen） Revenue CAGR+52% 25,000 OP CAGR+33% 5,000 Revenue OP Profit 売上(左軸) (left axis) 営業利益(右軸) (right axis) 4,500 20,0
Slide 26: Forecast for FY2024
4.2 Forecast for FY2024 Initial revenue is expected to grow, even with large pipeline conversion in FY2023 Composition of recurring revenue forecasts improvement of gross profit Gross （mn） イニシャル売上 Initial リカーリング型売上 Recurring 粗利益 Profit 20,000 19,200 （mn） FY2023 FY2024 YoY 18,000 15,909 16,000 Revenu
Slide 27: Growth Strategy and Progress
Growth Strategy and Progress 5 Copyright 2023 GMO Financial Gate, Inc.
Slide 28: Image of rise in Rev & OP
5.1 Image of rise in Rev & OP 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 terminals which will contribute to operating profit growth Increase of Market Sh
Slide 29: Mid-term Financial Plan
5.2 Mid-term Financial Plan Mid-term plan created at IPO has progressed ahead of schedule – A new five-year plan has been created to promote operating profit of 5bn yen in 2030 Operating Profit Growth Curve Base Trend Mid to long term strategy (operating 60 profit: Acquire multi-industry/high-growth
Slide 30: Point Economic Zone solution through vertical expansion
5.3 Point - Economic Zone solution through vertical expansion Action plans 1 2 3 4 Cashless Point*, Common Point, House Point has led to the continuous growth of point economy - accumulation of point development solution assets led to the acquisition of major merchants in each industry *Points issue
Slide 31: Expansion of Payment Platforms - Mobility Domain
5.4 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 64 enterprises as of Sept. 2023. Demonstration experiment is scheduled to start with
Slide 32: Implementation at EXPO2025 in Osaka
5.5 Implementation at EXPO2025 in Osaka Action plans 1 2 3 4 1,000 terminals expected to be implemented – increase in inbound tourists will contribute to number of trannsactions in public transportation Osaka Metro Demonstration experiment of Visa touch settlements will start in 2024 leading up to c
Slide 33: Expanding use of contactless NFC payment
5.6 Expanding use of contactless NFC payment 施策： 1 2 3 4 The percentage of credit touch payments (also known 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 an
Slide 34: Expanding ESG Initiatives
5.7 Expanding ESG Initiatives Strengthening ESG related disclosure for aiming future step up to the Prime market of Tokyo stock exchange. We are also in the process of improving corporate governance structure and human capital disclosure ESG Initiative Roadmap To Do’s Corporate value Present MSCI ES
Slide 35: Excellence in Corporate Disclosure
5.8 Excellence in Corporate Disclosure Awarded “Awards for Excellence in Corporate Disclosure” which is chosen by securities analysts for emerging markets. We will commit to continuous dialogue with capital markets at the management level Message Video: https://www.saa.or.jp/standards/disclosure/sel
Slide 36: Supplemental Information: Financials, Investment / Shareholder Returns
Supplemental Information Financials, Investment / Shareholder Returns 6 Copyright 2023 GMO Financial Gate, Inc.
Slide 37: Profit & Loss
6.1 Profit & Loss Gross profit margin declined due to changes in revenue composition Increased investment but a decrease in SG&A ratio which led to only a slight decrease in operating margin FY2022 FY2023 (Unit：Thousand yen) YoY actual actual Revenue 10,295,454 15,909,069 +54.5% COGS 7,527,314 12,00
Slide 38: Revenue by business model (Quarterly)
6.2 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. （Unit : Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 mil
Slide 39: Changes in Revenue Composition and Gross Profit Margin
6.3 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 40: Balance sheet
6.4 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. ◼ Note End of Q4 FY2023（Thousands of yen） Merchandise: 2.39 bn Current liabilities Decreased 0
Slide 41: Balance sheet (Quarterly)
6.5 Balance sheet (Quarterly) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 （Unit : millions of yen） FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 QoQ YoY FY2023 FY2023 Cash and cash 3,434 1,425 1,618 2,231 2,519 1,720 2,190 2,779 4,015 +1,235 +1,496 equivalents Current Merchandise 1,615 2,177 2,523 1,545 1,507 2,5
Slide 42: Consolidated KPIs (Number of Active Terminal)
6.6 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 43: Progress of GMV by quarter (vs. original plan)
6.7 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 44: Revenue growth rate in 1st Half & 2nd Half
6.8 Revenue growth rate in 1st Half & 2nd Half Due to the initial delivery timing of terminals for initial revenue, there is a difference in the growth rate between first half and the second half. Revenue growth of over 20% is expected for the full year Revenue balance between 1H and 2H (FY2023 vs F
Slide 45: 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 46: 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 47: 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 48: Supplemental Information: ESG Initiatives (Details)
Supplemental Information ESG Initiatives (Details) 7 Copyright 2023 GMO Financial Gate, Inc.
Slide 49: (Reposted) Expanding ESG Initiatives
7.1 (Reposted) Expanding ESG Initiatives Strengthening ESG related disclosure for aiming future step up to the Prime market of Tokyo stock exchange. We are also in the process of improving corporate governance structure and human capital disclosure ESG Initiative Roadmap To Do’s Corporate value Pres
Slide 50: ESG Initiatives / Environment
7.2 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 51: ESG Initiatives / Social
7.3 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 *Employees are referred to as partners Initiatives So
Slide 52: ESG Initiatives / Governance
7.4 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, a fair, transparent, and efficient business execution structure Specific Efforts Governance Related Dat
Slide 53: ESG Initiatives / Board of Directors
7.5 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 54: ESG Initiatives / Executive Skills Matrix
7.6 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. Kentaro Akio Tomonaga Tomoki Tatsuya Nao Rie Nagasawa Ozawa S
Slide 55: Appendix
Supplemental Agenda Appendix 8 Copyright 2023 GMO Financial Gate, Inc.
Slide 56: 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 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 １Q ２Q ３Q ４Q １Q １Q ２Q ３Q ４Q １Q Initial Revenue（Terminal Sales・Software Development） Initial Revenue（Initia
Slide 58: 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 59: 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) ① Terminal Flow Model Rev Sales Initial 69.9％ Business Stock 7.8％ ② Pay
Slide 60: 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 61: 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 62: 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 63: 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 64: 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 65: Details on each revenue ①
Details on each revenue ① Business Model Initial Content Rev 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 merch
Slide 66: 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 67: Fee ARPU
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 68: Number of Employees (Consolidated basis)
Number of Employees(Consolidated basis) ビジネスモデル 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) each fisca
Slide 69: 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 70: 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 71: 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 72: 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 73: 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 74: 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 75: 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 76: 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, four times larger than the online market. Cashless penetration is expected to rise driven by government-led cashless policies (Unit : trillion yen) Offline cashless
Slide 77: 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 78: 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 79: 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 80: 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 81: 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 82: Strategy to Maximize Transaction Value
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：¥128 trillion/year Expansion Con
Slide 83: 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 84: Manned Terminal Topics
Manned Terminal Topics Growth Strategy Terminals for Japan Post started full-scale operation – increase in terminals slowed down but increase continued for the 4Q Number of active terminals (manned terminals) （Unit : FY2020 FY2021 （単位：千台） FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY202
Slide 85: 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 2023 2024 Progress Launched To be released June Sep Dec Jan Mar June Sep Hotel/golf cour
Slide 86: 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 87: 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 88: 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 89: 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 90: Government Promotion of Cashless Payments
Government Promotion of Cashless Payments Industry Topic METI announced its Cashless Vision policy in 2018, Japanese cashless market will expand in response Present Impact on Business Increasing demand for cashless terminals as merchants are obligated to use credit card IC Expanding demand for Imple
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: 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 93: Shareholder Structure
Shareholder 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 GMO-PG Japanese Other enterprises Foreign Individuals institu
Slide 94: 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 95: 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 ¥1,629 Million(end of September 2023) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Rep
Slide 96: 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 97: 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.