GMO Financial Gate, Inc. · TSE:4051
GMO Financial Gate — Q2 FY2023 Earnings Presentation
93 slides from GMO Financial Gate's earnings presentation, May 12, 2023
Slide 1: Financial Results Briefing for Q2 FY2023
Financial Results Briefing for Q2 FY2023 Stock-model revenue expanded as economic activity resumed. Initial revenue also grew due to contributions from large-lot project ～ Entering the phase of achieving "necessary future investment" and "high profit growth” simultaneously ～ May 12, 2023 12th IR Pre
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 12, 2023 Note that presentation material content is subject to cha
Slide 3: Meeting Main Agenda
Meeting Main Agenda agenda 1. Summary of financial Results for Q2 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 Q2 FY2023
Summary of financial Results for Q2 FY2023 1 Copyright 2023 GMO Financial Gate, Inc.
Slide 5: 1.1 Q2 FY2023 Summary
1.1 Q2 FY2023 Summary Achieved 1H plan due to steady revenue/profit progress. Upwardly revised full-year revenue/profit forecast taking into account the balance between current business trends and future investment needs ●Q2 FY2023 Cumulative P6 - Revenue： ¥7.26billion (+62.6% YoY) Progress towards
Slide 6: 1.2 Summary of Financial Results
1.2 Summary of Financial Results Steady progress in both revenue and profit towards 1H plan. Q2 KPI steadily expanded from Q1 despite the seasonality, which is usually weak during Q2 Forecast Progress towards （Millions of yen） Q1 FY2022 Q1 FY2023 YoY FY2023 1st half forecast FY2023 1st half （Full-ye
Slide 7: 1.3 Major Topics Regarding Financial Results
1.3 Major Topics Regarding Financial Results Steady growth in revenue due to the contribution from large-lot project and inbound-related merchants. Operating profit grew greater than revenue despite significant future investment ◼ Revenue （Unit：Millions of yen） (＋)Large-lot project contributed to in
Slide 8: 1.4 Revenue by Business Model (YoY)
1.4 Revenue by Business Model (YoY) Although the proportion of stock-model revenue declined due to the spike of initial revenue in Q2, Fee revenue shifted strongly. Spread revenue which had been struggling since the beginning of the period, is recovering Q2 FY2022 Q2 FY2023 (Unit：Millions of Yen) Cu
Slide 9: 1.5 Initiatives for accelerating Spread Revenue
1.5 Initiatives for accelerating Spread Revenue Various measures has led to a recovery of Spread revenue to +17% YoY at Q2 cumulative basis (+12% YoY at Q1). Aiming to return to the level of +20-25% growth by accumulating new projects in Q3 and beyond Category Initiatives Progress Business in Manned
Slide 10: 1.6 Revenue by business model (Quarterly)
1.6 Revenue by business model (Quarterly) Initial : Significant growth in Q2 comes from large-lot project that have been contributing from Q1 Stock-Model : Despite weak seasonality, Q2 recorded higher revenue than Q1 which has strong seasonality Initial Revenue Stock-Model Revenue Pre COVID Under CO
Slide 11: 1.7 Initial Revenue and No. of Active Terminals (Quarterly)
1.7 Initial Revenue and No. of Active Terminals (Quarterly) Initial revenue increased sharply due to the contribution of large-lot project following Q1.Terminals sold through this large-lot project are scheduled to go into activation from Q3 and are not reflected in the number of active terminals ye
Slide 12: 1.8 Consolidated KPIs (Number of active terminals)
1.8 Consolidated KPIs（Number of active terminals） The increase in manned terminals, centered on stera, continues to drive the overall increase. Unattended terminals also continue to expand steadily Active terminals overall ： YoY＋66.7K YoY 、YoY+42.7% YoY （Unit: Thousand） YoY 250 Manned terminal Unman
Slide 13: 1.9 Consolidated KPIs (Quarterly Transaction volume / GMV)
1.9 Consolidated KPIs (Quarterly Transaction volume / GMV) Both the number of transaction volume and GMV exceeded our target of +50% YoY. Also, QoQ basis, both grew steadily with the increase in the number of active terminals, despite Q2 has weak seasonality Number of transaction volume Transaction
Slide 14: Business Highlights
Business Highlights 2 Copyright 2023 GMO Financial Gate, Inc.
Slide 15: 2.1 Merchant Industry
2.1 Merchant Industry Preparation for after COVID is successfully working. In Q2, terminals were installed and activated at SCs and SME type restaurants, etc., which had been an industry affected by COVID-19 Expanded Expanded Public service institutions ※Operation is scheduled to Store scale：Large s
Slide 16: 2.2 Transaction Trends by Industry (Q2)
2.2 Transaction Trends by Industry (Q2) Re-opening & recovery of inbound demand has led to a recovery in merchants that were negatively impacted by COVID-19 COVID-19 headwind Jul - Sep：Decreased Merchant C Merchant Ａ due to COVID-19 tailwind Transaction Volume Re-expansion of Transaction Volume Chai
Slide 17: 2.3 Top ranked merchants (GMV basis)
2.3 Top 30 ranked merchants (GMV basis) Vertical expansion of our payment platform has been successful, and we are steadily acquiring new merchants. Existing merchants also grow steadily so our payment platform is expanding nicely Q2 standalone FY2022 Q2 standalone FY2023 *Apparel C grew due to the
Slide 18: 2.4 Comparison with Market Growth
2.4 Comparison with Market Growth (February single month comparison) While the overall market is currently growing +21%, our GMV is growing +92%. Growth of existing merchants and acquisition of new merchants is driving our growth Market GMV (Transaction value of credit card payment) GMO-FG GMV Febru
Slide 19: 2.5 Payment platform grows together with merchants
2.5 Payment platform grows together with merchants In the Q2 alone, our GMV growth rate was +83% overall and +45% for existing merchants. Existing merchants exceeded the current (February) market growth rate of +21%, with merchants growing together with our payment platform GMO-FG GMV growth rate Ne
Slide 20: Revision of FY2023 Forecast
Revision of FY2023 Forecast 3 Copyright 2023 GMO Financial Gate, Inc.
Slide 21: 3.1 Upward Revision of FY2023 Forecast
3.1 Upward Revision of FY2023 Forecast Upward revision of both revenue / profit based on current progress, while continuing to invest adequate amount of SG&A for future growth FY2023 FY2023 FY2022 % change （Unit : millions of yen） Full year forecast Full year forecast YoY Full year actual （to origin
Slide 22: 3.2 Approach to Revised Plan
3.2 Approach to Revised Plan Background of the Balance between 1st half and 2nd half : Revenue : Demand for large-lot project was concentrated in the first half of the year and will reach cruising speed in the second half OP : Additional investment in SG&A expenses is planned for growth in the next
Slide 23: 3.3 SG&A and Profit Trends (half-year transition)
3.3 SG&A and Profit Trends (half-year transition) While aggressively investing in (1) business performance-linked compensation, and (2) other SG&A expenses, which are variable costs, operating leverage has improved the power to generate profits. Investment for growth will continue in 2H as well 2,00
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 project 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 Expansion of GMO-FG cashless platform
4.2 Expansion of GMO-FG cashless platform By horizontally deploying the solution assets cultivated through the Vertical expansion, the company is acquiring large scale merchants in the same industry. Viral expansion of the merchant base and establishment of a solid payment platform Vertical 1 2 Bus
Slide 27: 4.3 Manned Terminal Topics
4.3 Manned Terminal Topics Action plans 1 2 3 4 Installation of terminals for large-lot project (public service organization in the deliverance / transportation sector) was concentrated in the 1st half. Terminals installed for large-lot project will be activated from April (3Q) and are expected to c
Slide 28: 4.4 Expansion of Payment Platforms - Mobility
4.4 Expansion of Payment Platforms - Mobility Action plans 1 2 3 4 Mobility payments in urban areas are on the rise due to the recent increase in the number of foreign visitors to Japan. Successfully capturing the recovery of inbound demand after COVID era, and more railroads and buses are scheduled
Slide 29: 4.5 ESG / Obtained a Certificate of Assurance of GHG
4.5 ESG / Obtained a Certificate of Assurance of GHG Obtained a certificate of assurance from an external certification instituion (Socotec, Inc.) regarding GHG emissions in FY2022. We plan to receive external certification every fiscal year and continue to assess the environmental affect coming fro
Slide 30: Supplemental Agenda: Financial Information, Investment and Shareholder Return Policies
Supplemental Agenda Financial Information, Investment and Shareholder Return Policies 5 Copyright 2023 GMO Financial Gate, Inc.
Slide 31: 5.1 Profit & Loss
5.1 Profit & Loss Gross profit margin increased despite lower gross profit margin due mainly to higher proportion of initial revenue. Operating profit margin improved, handling the increase in SG&A expenses Q2 FY2022 Q2 FY2023 (Unit：Thousands) YoY Cumulative（actual） Cumulative（actual） Revenue 4,468,
Slide 32: 5.2 Revenue by business model (YoY)
5.2 Revenue by business model（YoY) Initial revenue proportion increased more than expected due to rapid terminal sales growth in Q2 OP margin improved, handling the SG&A expenses of the stock-model business Initial Stock Fee Spread 536 1,060 543 457 521 392 375 5,126 201 282 3,098 1,959 FY2021 2Q FY
Slide 33: 5.3 Revenue by business model (Quarterly)
5.3 Revenue by business model (Quarterly) Initial revenue reached a new record quarterly high thanks to the acquisition of a large merchant. Fee and Stock continued to increase despite the weak season, and Spread was maintained at the same level as during the strong season (Q1) Preventing the spread
Slide 34: 5.4 Balance sheet
5.4 Balance sheet Achieved accumulation of merchandise inventories following Q1 on the back of strong demand Borrowed an additional ¥1 billion in both long and short-term loans to secure working capital End of Q2 FY2023（Thousands of yen） ◼ Points Cash & Cash equivalents Merchandise: (19.4%) Current
Slide 35: 5.4 Balance sheet (Quarterly)
5.4 Balance sheet (Quarterly) B/S expanded following 1Q due to borrowing for aggressive purchasing Increase in other current assets was mainly due to an increase in accounts receivable Q4 Q1 Q2 Q3 Q4 Q1 Q2 （Unit : millions of yen） FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 QoQ YoY Cash and cas
Slide 36: 5.6 Consolidated KPIs (No. of Active Terminal)
5.6 Consolidated KPIs（No. of Active Terminal） Steady growth in the number of active terminal driven by manned type terminals Steady expansion of unmanned terminals in response to the trend of self-checkout penetration and manpower saving at merchants （Unit: FY2021 FY2021 FY2021 FY2021 FY2022 FY2022
Slide 37: 5.7 Progress of GMV by quarter (vs. original plan)
5.7 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 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 Agenda: ESG Initiatives (Details)
Supplemental Agenda ESG Initiatives (Details) 6 Copyright 2023 GMO Financial Gate, Inc.
Slide 42: 6.1 Status of ESG Initiatives
6.1 Status of ESG Initiatives Disclosed "Minebea Group's ESG-related Initiatives" on its website last December. Currently conducting third-party data review to obtain external certification of supply chain CO2 emissions, including SCOPE3 ESG-related disclosure schedule Our Specific Efforts for Envir
Slide 43: 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 each upstream payment
Slide 44: 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 45: 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 46: 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 47: 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 com
Slide 48: Appendix
Supplemental Agenda Appendix 7 Copyright 2023 GMO Financial Gate, Inc.
Slide 49: 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 50: 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 51: 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 52: 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 Q2 cumulative) ① Terminal Flow Model Rev Sales Initial 70.6％ Business St
Slide 53: 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 54: 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 55: 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 56: 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 Stock-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 extent
Slide 57: 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 Stock revenue N Stock revenue Stock-Model Revenue Spread Linking with the growth of TAM / membership merchants Fee Stoc-model revenue before N-1 Stock Linki
Slide 58: 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 59: 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 60: 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 61: Software assets and depreciation
Software assets and depreciation Business Model Assets, mainly software assets, increased due to the development investments for large merchants. Depreciation and amortization expenses are also on the rise, but will contribute to the expansion of stock-type revenues in the future 1800 140 ソフトウェア資産(百
Slide 62: 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 63: 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 64: Relationship between number of active terminals & stock rev
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 65: 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 Stock model revenue ① Initial ➁ Stock ③ Fee ④ Spread Credit・China Union Pay・J-de
Slide 66: 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 67: 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 68: 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 69: 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 70: 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 71: 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 New Transaction Volume Composition 2019 2020 2021 2022 Composition 2019 2020
Slide 72: 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 73: 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 74: 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 75: Strategy to Maximize Transaction Value Growth
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 76: 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 Offline Cashless (face-to-face) Continuous Market (2022 E) GMV： ¥95 trillion/year Growth
Slide 77: 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 78: 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 Progress Launched To be released Oct Dec
Slide 79: Growth Strategies for 2025 and Beyond
Growth Strategies for 2025 and Beyond Growth Strategy For 2025 and beyond, we aim to grow stock-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 yen)
Slide 80: 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 stock-model revenue. Supporting merchants' operational efficiency improvement and sophistication (DX) using data IoT Appropriate stock replenishment and cash Payme
Slide 81: 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 Healthcare/Welfare Vocational Sch
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 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 85: 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 86: 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 87: COVID infections
COVID infections Industry Topic High level of infected cases observed in the 8th Wave, but movement toward normalization of economic activity continues Number of new cases of COVID-19 infection （Unit: persons） 300,000 8th wave 250,000 200,000 designation from "Class policy to change the "Category Fr
Slide 88: 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 89: 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 90: 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 91: 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 92: 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 December 2022) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Repr
Slide 93: 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.