Gmo Financial Gate, Inc. · TSE:4051
Gmo Financial Gate — Q1 2024 Earnings Presentation
91 slides from Gmo Financial Gate's earnings presentation, Feb 14, 2024
Slide 1: Financial Results Briefing for 1Q FY2024
Financial Results Briefing for 1Q FY2024 Increase in the number of active terminals contributes to the expansion of recurring-type sales. Acquired pipeline beyond next FY by promoting vertical expansion February 14, 2024 15th IR Presentation GMO Financial Gate, Inc. (Ticker: 4051, TSE-Growth) https:
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 February 14, 2024 Note that presentation material content is subject t
Slide 3: Meeting Agenda
Meeting Main Agenda Agenda 1. Summary of Financial Results for 1Q FY2024 2. KPI 3. Business Highlights 4. Growth Strategy and Progress Supplemental Agenda 5. Financial Information, Investment and Shareholder Return Policies 6. ESG Initiatives (Details) 7. Appendix Copyright 2024 GMO Financial Gate,
Slide 4: Summary of Financial Results for 1Q FY2024
Summary of Financial Results for 1Q FY2024 1 Copyright 2024 GMO Financial Gate, Inc.
Slide 5: 1.1 1Q FY2024 Summary
1.1 1Q FY2024 Summary Revenue was in-line with full-year targets, while profit exceeded forecast 1Q FY2024 P 6 ‐Revenue : ¥4.49 bn (YoY +37.6%) Progress towards 1H forecast 48.8%、 Progress towards full-year forecast 23.4% ‐Operating Profit : ¥0.48 bn (YoY +71.9%) Progress towards 1H forecast 65.5%、
Slide 6: 1.2 Summary of Financial Results
1.2 Summary of Financial Results Steady expansion of recurring-model revenue led to higher gross profit margins. Significant year-on-year growth in profit at each stage. Steady expansion of each KPI Forecast Progress （mn yen） 1Q FY2023 1Q FY2024 YoY FY2024 1st half towards forecast （Full-year） 9,208
Slide 7: 1.3 Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Mid-small to Large-lot deals and an increase in the number of active terminals contributed to sales growth Profit margins increased due to an increase in recurring-type sales and a change in the composition of terminals sold ◼ Revenue （mn yen） (＋) Initial
Slide 8: 1.4 Revenue by Business Model (YoY)
1.4 Revenue by Business Model (YoY) Stock and fee led the increase in recurring model revenue composition Spread, at CAGR+25% has made a decent start (mn yen) 1Q FY2023 1Q FY2024 YoY (Composition %) (Composition %) 2,220 2,915 Initial +31.3％ (67.9%) (64.8%) 1,047 1,581 Recurring-Model +51.0％ (32.1%)
Slide 9: 1.5 Revenue by Business Model (Quarterly)
1.5 Revenue by Business Model (Quarterly) Initial: Steady increase from the average of past years' results, due in part to large-lot projects. Recurring: Steady quarterly growth due to an increase in the number of active terminals Initial Revenue Recurring Revenue （mn yen） （mn yen） 4,000 2,000 Avg Q
Slide 10: KPI
KPI 2 Copyright 2024 GMO Financial Gate, Inc.
Slide 11: 2.1 Initial Revenue and Number of Active Terminals
2.1 Initial Revenue and Number of Active Terminals No. of active terminals increased steadily – due to increase in initial sales, net increase in the number of operating terminals increased ( ) : Excluding, for Japan Post +27.2 +25.5 326.0 Initial revenue（mn yen） (+20.2) +39.3 Number of active termi
Slide 12: 2.2 Consolidated KPI (Number of active terminals)
2.2 Consolidated KPI（Number of active terminals） Increase in the number of manned terminals, especially in stera, continues to drive the overall increase in the number of active terminals. Steady expansion of unmanned terminal installations 1Q FY2024 YoY＋107.8 K、YoY+49.5% （Thousand） 400 Manned termi
Slide 13: 2.3 Consolidated KPI (Quarterly Transaction volume / GMV)
2.3 Consolidated KPI (Quarterly Transaction volume / GMV) Steady growth of more than 50% YoY in both transaction volume and GMV Number of transaction volume Transaction value (GMV) （100 mn yen） （mn） 16,000 180 YoY +55.7% YoY +57.4% 14,000 150 12,000 120 10,000 8,000 90 6,000 60 4,000 30 2,000 0 0 1Q
Slide 14: Business Highlights
Business Highlights 3 Copyright 2024 GMO Financial Gate, Inc.
Slide 15: 3.1 Merchant Industry
3.1 Merchant Industry Hotel/travel sales grew due to the contribution of large-lot member stores. Expanding installation of terminals for various business categories such as amusement (movie theaters, karaoke, etc.), drugstores, chain restaurants, etc Expanded Store scale：Large One-stop service prop
Slide 16: 3.2 Transaction Trends by Industry (1Q)
3.2 Transaction Trends by Industry (1Q) ： High inbound tourism demand Growth in transactions due to holiday sales season in addition to continued inbound recovery Merchant C Merchant Ａ Transaction Volume Transaction Volume Banquet Transaction Value (GMV) needs Transaction Value (GMV) Chain- Transiti
Slide 17: 3.3 Top ranked merchants (GMV basis)
3.3 Top 30 ranked merchants (GMV basis) Transportation and logistics-related ranked first. Five new clients ranked in the top 30 Hotel and travel-related businesses continue to grow at a high rate 1Q FY2023 1Q FY2024 Gentlemen's Clothing Store A Transportation/Logistics A New Super Market A Gentleme
Slide 18: 3.4 Comparison to Market Growth (November YoY)
3.4 Comparison to Market Growth (November YoY) Market growth is at +11%YoY while GMO FG GMV is at +60% YoY Growth continues above macro statistics Market GMV (Transaction value of credit card payment) GMO-FG GMV 全体（左軸） All (left axis) Nov 2022 Nov 2023 Nov 2022 Nov 2023 (tn yen) 小売（左軸） (100 mn yen)
Slide 19: 3.5 Settlement Platform which Grows with its Merchants
3.5 Settlement Platform which Grows with its Merchants GMO-FG GMV grew at +57.4% YoY for 4Q, +24.2%YoY for existing merchants Merchants grew with GMO-FG’s settlement platform GMV Growth Rate （100 mn yen） Newly acquired Growth of merchants GMV overall Overall +53.09 bn 14,552 15,000 Existing Growth o
Slide 20: Growth Strategy and Progress
Growth Strategy and Progress 4 Copyright 2024 GMO Financial Gate, Inc.
Slide 21: 4.1 Image of rise in Revenue & Operating Profit
4.1 Image of rise in Revenue & Operating Profit 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 Inc
Slide 22: 4.2 Mid-term Financial Plan
4.2 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 Action Plans Mid to long term strategy (operating profit: bn yen) Acquire multi-industry/high
Slide 23: 4.3 Vertical Expansion
4.3 Vertical Expansion Action plans： 1 2 3 4 Accelerate business expansion with large corporate groups by providing a variety of tailor-made services - expanding profit opportunities by applying this to other large corporate groups Expansion into other industries Example of solution assets C社 Revenu
Slide 24: 4.4 Profit Contribution from Vertical Expansion
4.4 Profit Contribution from Vertical Expansion Action plans： 1 2 3 4 Pipelines from mainly large corporations have piled up steadily Image of pipelines from vertical expansion Digitalization Large commercial Expansion 業務DX支援 support 大型商業施設/SC facility/shopping IoTアライアンス IoT alliance center New Larg
Slide 25: 4.5 Expansion of Payment Platforms - Mobility Domain
4.5 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 90 enterprises as of Dec. 2023. Experimental implementation is scheduled to start wit
Slide 26: 4.6 Expanding use of contactless NFC payment
4.6 Expanding use of contactless NFC payment Action plans 1 2 3 4 The percentage of credit touch payments at our processing center is on an upward trend. Growing awareness of the convenience of NFC is driving the future spread of credit touch in the mobility field Credit and debit payments at our ce
Slide 27: 4.7 Progress in IoT/Unattended Payment
4.7 Progress in IoT/Unattended Payment Action plans 1 2 3 4 Supporting the transition from traditional to unmanned terminal (IoT) payments Expanding business pipelines based on track record with major merchants IoT terminal incorporation into the market Track record and business pipelines IoT/unatte
Slide 28: 4.8 Expanding ESG Initiatives
4.8 Expanding ESG Initiatives Continuous promotion of ESG initiatives to improve corporate value – will continue to enhance disclosure related to human capital and improve ESG score for multiple institutions ESG Initiative Roadmap To Do’s Corporate value Promote MSCI score acquisition/improvement pr
Slide 29: 4.9 ESG-related topics (Materiality, CDP Score B)
4.9 ESG-related topics (Materiality Identification/CDP Score B earned) (1) Identified materiality. (2) Received a "B" in CDP, focusing on prime companies, exceeding the industry average, the Asian average, and the global average. Aiming for "A" in the future, and aiming to improve the score of low e
Slide 30: Supplemental Information: Financials, Investment / Shareholder Returns
Supplemental Information Financials, Investment / Shareholder Returns 5 Copyright 2024 GMO Financial Gate, Inc.
Slide 31: 5.1 Profit & Loss
5.1 Profit & Loss Gross profit margin improved significantly due to sales increase and composition change Achieved significant increase in profits at each stage despite increasing SG&A (thousands of yen) 1Q FY2023 1Q FY2024 YoY Revenue 3,267,719 4,496,898 +37.6% Cost of goods sold 2,424,177 3,225,86
Slide 32: 5.2 Revenue by business model (Quarterly)
5.2 Revenue by business model (Quarterly) Initial sales will fluctuate to around 3 bn yen per quarter depending on large-lot terminal orders Continued high growth is driven by fee 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q （ mn yen） FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 Initia
Slide 33: 5.3 Changes in Revenue Composition and Gross Profit Margin
5.3 Changes in Revenue Composition and Changes in Gross Profit Margin Gross profit margin has bottomed out – had been on a downward trend due to changes in sales composition Gross profit margin improved significantly in the first quarter due to expansion of recurring sales and changes in the sales c
Slide 34: 5.4 Balance sheet
5.4 Balance sheet Building up merchandise levels for future terminal sales for strong future demand Secured liquidity on hand by implementing long-term loans with an eye on interest rate trends End of 1Q FY2024（thousands of yen） ◼ Note Merchandise ：¥ 3.07 bn Increase of ¥0.68 bn from the end of the
Slide 35: 5.5 Balance sheet (Quarterly)
5.5 Balance sheet (Quarterly) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q （mn yen） FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 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 -117 +2,177 equivalents Current Merchandise 1,615 2,177 2,523 1,545 1,507 2,511 3,131 2,733 2,396 3
Slide 36: 5.6 Consolidated KPIs (Number of Active Terminal)
5.6 Consolidated KPIs（Number of Active Terminal） The number of operating terminals is steadily increasing, driven by manned terminals, while number of unmanned terminals continues to increase due to the trend of self-service and labor saving 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q QoQ YoY （thousand）
Slide 37: 5.7 Revenue growth rate in 1st Half & 2nd Half
5.7 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 38: 5.8 Capital Allocation Policy
5.8 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 39: 5.9 Investment Policy
5.9 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 transact
Slide 40: 5.10 Shareholder Return Policy
5.10 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) 6 Copyright 2024 GMO Financial Gate, Inc.
Slide 42: 6.1 (Reposted) Expanding ESG Initiatives
6.1 (Reposted) Expanding ESG Initiatives Continuous promotion of ESG initiatives to improve corporate value – will continue to enhance disclosure related to human capital and improve ESG score for multiple institutions ESG Initiative Roadmap To Do’s Corporate value Promote MSCI score acquisition/imp
Slide 43: 6.2 (Reposted) ESG-related topics
6.2 (Reposted) ESG-related topics (Materiality Identification/CDP Score B earned) (1) Identified materiality. (2) Received a "B" in CDP, focusing on prime companies, exceeding the industry average, the Asian average, and the global average. Aiming for "A" in the future, and aiming to improve the sco
Slide 44: 6.3 ESG Initiatives / Environment
6.3 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: 6.4 ESG Initiatives / Social
6.4 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: 6.5 ESG Initiatives / Governance
6.5 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: 6.6 ESG Initiatives / Board of Directors
6.6 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: 6.7 ESG Initiatives / Executive Skills Matrix
6.7 ESG Initiatives / Executive Skills Matrix Appointment of human resources that contribute to the enhancement of corporate value as directors, with a view to building a system that enables the Board of Directors to function effectively. * GMO-ism is the collective name for the company motto and co
Slide 49: Appendix
Supplemental Agenda Appendix 7 Copyright 2024 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: Gross profit composition ratio
Gross profit composition ratio Business Model Growth in recurring revenue leads to steady profitability base Composition by Product Category (Revenue and Gross Profit) （mn 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% 8,
Slide 52: Revenue Models: Financial Gate vs. Payment Gateway
Revenue 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（In
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: Recurring-Model Revenue Expansion Originating From Terminal Sales
Recurring-Model Revenue Expansion Originating From Terminal Sales Business Model Recurring-model revenue grows with flow model revenue which is mainly coming form the sales of payment terminals % Revenue Model 3 Business 4 Types of Revenue (1Q FY2024) Flow Model ① Terminal Sales Initial 64.8％ Revenu
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: 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 59: 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 60: Details on each revenue ①
Details on each revenue ① Business Model Initial Content Revenue Model Payment terminal Revenue from Payment terminals purchased from terminal manufacturers, and then confirm • Terminal Selling Price × Units Sold ✓ More than 10 types of terminals sales certain measures of payment methods that each m
Slide 61: Details on each revenue ②
Details on each revenue ② Business Model Fee Content Revenue Model • TRX Volume× Processing Fee Processing It is a fee we charge toward monthly transaction volume based on the rate per transaction ✓ Processing fee is about ¥2 to ¥3 per transaction Sales of • Number of Order × Price of Roll Paper Thi
Slide 62: 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 63: 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 64: 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 65: Relationship between active terminals & stock revenue
Relationship between number of active terminals & stock revenue 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
Slide 66: 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 67: 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 68: Medium-Term Strategy: Acquiring major merchants by focusing on 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 69: 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 70: 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 71: 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 tn, four times larger than the online market. Cashless penetration is expected to rise driven by government-led cashless policies (tn yen) Offline cashless market size (Left
Slide 72: 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 73: 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 74: Trends in the number of foreign visitors to Japan
Trends in the number of foreign visitors to Japan Market Environment After a rapid recovery from the post covid, number of visitors has gradually stabilized Number of visiting foreigners (annually) Our inbound-related industry merchants （10K） 6,000 6,000 Government’s target Aggressively cultivate me
Slide 75: 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 76: 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 77: Strategy to Maximize Transaction Value expanded
Strategy to Maximize Transaction Value Growth Strategy Due to cashless settlement penetration, TAM of our service scope has continuously expanded – New process network alliance partner will contribute to GMV increase Offline Cashless (face-to-face) Market (2025E) GMV：¥128 tn/year Expansion Continuou
Slide 78: 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 2024 (2024/1) Sports spectator facilities, etc. ⚫ Establish a completely cashless payment environment ⚫ Pr
Slide 79: Manned Terminal Topics
Manned Terminal Topics Growth Strategy Although effect from large-lot orders in the previous fiscal year has leveled off, the high level of terminal orders continued in the first quarter of this year Number of active terminals (manned terminals) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q QoQ YoY （thousand） FY21
Slide 80: 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 • Orders for su
Slide 81: 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 82: 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 83: 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 84: 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 85: 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 86: 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 87: 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 88: 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 89: 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 mn(end of December 2023) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Represent
Slide 90: 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 91: Thank you
Thank you GMO Financial Gate, Inc. (TSE Growth 4051) IR web site URL https://www.gmo-fg.com/ir/ Copyright 2024 GMO Financial Gate, Inc.