Netstars Co.,ltd. · TSE:5590
Netstars Co.,ltd — Q2 2026 Earnings Presentation
70 slides from Netstars Co.,ltd's earnings presentation, Aug 26, 2026
Slide 1: Financial Results for Q2 FY 2026
Financial Results for Q2 FY 2026 August 2026 NETSTARS Co., Ltd. (5590)
Slide 2: Key Points on Q2 Results for FY 2026 (Ending Dec. 31)
Key Points on Q2 Results for FY 2026 (Ending Dec. 31) The establishment of a solid profitability base has enabled the introduction of a shareholder benefit program to enhance shareholder returns High GPV growth and improved profitability have steadily strengthened our profit-generating capability Ne
Slide 3: New shareholder benefit program introduced
New shareholder benefit program introduced In appreciation of the continued support of our shareholders, the Company introduced a shareholder benefit program to enhance the appeal of investing in our shares and to expand the investor base and increase trading volume and liquidity. The Company plans
Slide 4: Table of Contents
1 Business Overview 2 Financial Highlights (Consolidated Performance) Table of 3 Market Environment and Our Position Contents 4 Growth Strategy 5 Supplementary Information
Slide 5: Business Overview
1 Business Overview
Slide 6: Our Mission
Our Mission Let the payments go smoother Our vision is to transform the flow of money toward more convenience, efficiency, safety, and peace of mind. By creating this effortless, natural flow of money, we will help circulate it to all corners of the world, and help civilization evolve further. NETST
Slide 7: Business Overview: Main Services Provided by NETSTARS
Business Overview: Main Services Provided by NETSTARS NETSTARS offers multi-brand cashless payment solutions, focusing on QR code payments, to member stores, providing comprehensive support and labor-saving benefits as a gateway operator providing DX Solutions 1 2 Multi-brand-capable cashless paymen
Slide 8: Business Overview: Cashless Payment Gateway Service
Business Overview: Cashless Payment Gateway Service We are a pioneer in cashless payments, having launched the first* QR code payment gateway in Japan, and now provide ONE-STOP services that support various means of payment. * internal research Blanket application, management, clearing Store and pay
Slide 9: Business Overview: StarPay-DX— Achieving One-Stop DX
Business Overview: StarPay-DX— Achieving One-Stop DX With StarPay-DX, member stores can achieve one-stop DX. It supports cashless payments and various services via both native apps*1 and mini apps*2 Phone E-mail Membership card Offline shopping Cash payment One-stop DX Reservation Coupon Membership
Slide 10: Our Strengths: (1) Technology and Development Capabilities
Our Strengths: (1) Technology and Development Capabilities We achieve high cloud systems stability (adoption of a cloud native infrastructure + container technology) using the world's most advanced technologies We deliver innovation and added value to member stores backed by strong technological cap
Slide 11: Our Strengths: (1) Pursuing Greater Efficiency by Utilizing AI
Our Strengths: (1) Pursuing Greater Efficiency by Utilizing AI We are further expanding AI utilization, significantly improving cost efficiency. In Q1, we transitioned internal support systems, including the sales division, to AI. AI has been deployed across server monitoring, development, and custo
Slide 12: Our Strengths: (2) Extensive Member Store Network and Brand Coverage
Our Strengths: (2) Extensive Member Store Network and Brand Coverage We have Japan's highest number of QR payment brands and a robust network of member stores in a wide range of business categories. Member stores are increasing, particularly in the retail industry, and multiple rollouts are planned,
Slide 13: Our Strengths: (2) Continuing to Expand Our Payment Brand Network
Our Strengths: (2) Continuing to Expand Our Payment Brand Network to Meet Diverse Payment Needs We plan to add "10 or more" payment brands in 2026. We are continuing to expand our connections with domestic and overseas payment brands to meet the diverse payment needs of member stores and users. By e
Slide 14: Our Strengths: (2) Stablecoin Payments at Retail Locations
Our Strengths: (2) Stablecoin Payments at Retail Locations – Addition of Payment Method StarPay consistently maintains one of the largest brand lineups and aims to add and implement a wide range of new payment methods. The ability to use stablecoin payments, a new payment method with the potential f
Slide 15: Our Strengths: (2) StarPay-X Gateway Concept Connecting Web3
Our Strengths: (2) "StarPay-X," A Gateway Concept Connecting Web3, Including Stablecoins StarPay-X is a multi-gateway concept connecting Web2 and Web3. By leveraging the payment infrastructure we have built in real-world commercial environments, StarPay-X does not aim merely to move Web3 beyond inte
Slide 16: Our Strengths: (3) Our Broad Partner Base
Our Strengths: (3) Our Broad Partner Base We are expanding nationwide via partners, including payment brand companies and regional financial institutions. Efficient expansion of member stores throughout Japan without needing local offices. We also have a partnership with Stripe, a global leader in p
Slide 17: Our Strengths: (4) Outperforming Major PSPs in Growth Rates and Profit Margin
Our Strengths: (4) Outperforming Major PSPs in Growth Rates and Profit Margin Maintaining a higher growth rate and an industry-leading profit margin compared to major PSPs With the achievement of profitability, we will now enter a phase of expanding profitability. Sales growth rate (YoY rate in the
Slide 18: Financial Highlights (Consolidated Performance)
Financial Highlights 2 (Consolidated Performance)
Slide 19: Key Points on Q2 Results for FY 2026 (Recap)
Key Points on Q2 Results for FY 2026 (Ending Dec. 31) (Recap) The establishment of a solid profitability base has enabled the introduction of a shareholder benefit program to enhance shareholder returns High GPV growth and improved profitability have steadily strengthened our profit-generating capab
Slide 20: Major Components of the Income Statement and KPIs
Major Components of the Income Statement and KPIs Consolidated Statement of Profit and Loss Net sales FYE12/'25 Q2 FYE12/'26 Q2 Plan FYE12/'26 Q2 cumulative Payment-related services increased by YoY Q2 cumulative +14.3% YoY. cumulative cumulative Q2 cumulative vs. forecast (million yen) However, res
Slide 21: Major Components of the Income Statement and KPIs (Q1 & Q2 Non-Consolidated)
Major Components of the Income Statement and KPIs (Q1 & Q2 Non-Consolidated) FYE12/25 Q1 FYE12/25 Q2 FYE12/26 Q1 FYE12/26 Q2 (million yen) Net sales 1,051 1,107 1,331 1,135 Payment-related 951 991 1,192 986 DX / mini apps 61 77 82 101 Other 38 37 56 47 Cost of sales 242 232 363 217 Gross profit 808
Slide 22: Quarterly Statistics of Net Sales and GPV
Quarterly Statistics of Net Sales and GPV (million yen) (100 million yen) Net sales: Left axis GPV reached a record high in Q2 5,916 5,792 1,600 GPV 6,000 Payment transaction volume increased YoY, excluding 5,508 Payment-related 5,128 1,420 5,497 supported by continued robust domestic demand. Kanaga
Slide 23: Breakdown of Company GPV
Breakdown of Company GPV GPV remained on an upward trend, reaching an all-time high for a Q2. As in Q1, higher crude oil prices continued to have an impact, and GPV and inbound GPV were slightly below plan, particularly at retail chains and gas stations, while domestic demand remained solid. We will
Slide 24: Impact on terminal sales during the transition period to new terminals
Impact on terminal sales during the transition period to new terminals In order to meet strong demand for high-specification terminals, we planned to introduce new terminals in Q2. As we transitioned from the old terminals to the new terminals, including the transition of authentication systems, ter
Slide 25: Net Sales Breakdown by Service
Net Sales Breakdown by Service Payment-related (excluding terminal sales) services continued to grow and now account for over 79% of total net sales. Against a backdrop of growing demand for higher-performance all-in-one terminals, terminal sales reached a record low for Q2 alone due to the impact o
Slide 26: Drivers of Changes in Operating Profit/Loss
Drivers of Changes in Operating Profit/Loss Despite results failing short of the plan, payment-related sales (including terminal sales) rose sharply YoY, due to new project acquisitions, and higher GPV at existing member stores, etc. This was the primary factor behind the approximately 2.6-fold YoY
Slide 27: Trend in Interest Income
Trend in Interest Income Interest income, recorded under non-operating income, increased in line with GPV growth. Interest income also tends to increase in line with BOJ policy rate increases. GPV (100 million yen) Interest(%) 48 46 Interest income 39 37 (million yen) 33 32 1 Q1 Q2 Q3 Q4 Q1 Q2 2025
Slide 28: Full-year Earnings Forecast for FY 2026 (Ending Dec. 31) (Recap)
Full-year Earnings Forecast for FY 2026 (Ending Dec. 31) (Recap) GPV and sales are expected to increase by as much as 20％, while operating profit is expected to increase by 210mn JPY to 500mn JPY. We also expect interest income to increase due to higher GPV and interest rate hikes, and we forecast o
Slide 29: Full-year Earnings Forecast for FY 2026 (Ending Dec. 31) (Recap)
Full-year Earnings Forecast for FY 2026 (Ending Dec. 31) (Recap) Net sales are scheduled to increase compared to 2025, with a focus on payment-related sales. In Q1 2026, we plan to incur somewhat higher-than-usual sales promotion costs (including POS upgrade costs) associated with acquiring clients
Slide 30: Impact of the Decline in Inbound Tourism from China on Company GPV (Recap)
Impact of the Decline in Inbound Tourism from China on Company GPV (Recap) Overseas QR, representing the inbound tourism ratio, accounts for only 7.3% of overall Company GPV, meaning the impact of the decline in inbound tourism from China on the Company is limited. (100 million yen) 2200 2025 annual
Slide 31: Topics (Since April 2026)
Topics (Since April 2026) Topic 1 Volume of payment transactions reached a record See page 31 high of 579.2bn JPY for a Q2 Japan's first* full-scale launch of "Stablecoin Pay," Topic 2 supporting stablecoin payments See page 32 Pilot demonstration to begin at Lawson in August Entrusted with secretar
Slide 32: Topic 1: Volume of Payment Transactions Reached a Record High of 579.2bn JPY for Q2
Topic 1: Volume of Payment Transactions Reached a Record High of 579.2bn JPY for a Q2 Cumulative GPV grew steadily by +15% YoY. Posted a record high for a Q2. However, the results fell short of the plan. Future macroeconomic instability and the timing of the recovery in inbound payment volumes are d
Slide 33: Topic 2: Japan's first full-scale launch of "Stablecoin Pay"
Topic 2: Japan's first* full-scale launch of "Stablecoin Pay," supporting stablecoin payments Pilot demonstration scheduled at Lawson in August "Stablecoin Pay," supporting multiple stablecoin payment methods, was launched in July. A pilot demonstration was conducted at Lawson on August 3. We aim to
Slide 34: Topic 3: Entrusted with Secretariat Operations for Yokohama Premium Gift Voucher Programs
Topic 3: Entrusted with Secretariat Operations for the Yokohama Motomachi and Yokohama Chinatown Premium Gift Voucher Programs Entrusted with two programs: the Yokohama Motomachi Premium Electronic Gift Voucher and the Yokohama Chinatown Premium Gift Voucher. In addition to our extensive track recor
Slide 35: Topic 4: New shareholder benefit program introduced
Topic 4: New shareholder benefit program introduced In appreciation of the continued support of our shareholders, the Company introduced a shareholder benefit program to enhance the appeal of investing in our shares and to expand the investor base and increase trading volume and liquidity. The Compa
Slide 36: Market Environment and Our Position
3 Market Environment and Our Position
Slide 37: Market with High Growth Potential
Market with High Growth Potential Japan's cashless payment rate is lower than in other countries. The Ministry of Economy, Trade and Industry has set a target for the cashless payment rate, so there is high growth potential. Furthermore, Japan's cashless payment rate in 2025 stands at 46.3% based on
Slide 38: Deployment of Services in the Fast-Growing Area of Cashless Payment
Deployment of Services in the Fast-Growing Area of Cashless Payment The market for QR code payments (NETSTARS' core service) has grown more rapidly than credit cards and the NFC market. This payment system is the biggest contributor to development of the cashless market in Japan. Amount of QR code p
Slide 39: Growth Strategy
4 Growth Strategy
Slide 40: Basic Strategy for Medium-Term Growth
Basic Strategy for Medium-Term Growth We aim to accelerate the pace of growth through multiple growth drivers (growth in cashless payments/expansion of DX Solutions/overseas expansion). DX products, POS, Revenue ＝ GPV × Take rate + etc. (cross-selling) Multiple growth drivers 1. 2. 3. Multi-cashless
Slide 41: 1. Multi-Cashless Payment
1. Multi-Cashless Payment We aim to achieve continuous growth through measures for acquiring multiple new GPVs. Acquisition of more new member stores through sales partners (OEM, agency) Cross-selling with DX products Strengthen cooperation Further expansion of the New customers Existing customers w
Slide 42: 2. DX Solutions
2. DX Solutions For existing StarPay member stores, we will also provide StarPay-DX, including labor-saving DX products, in addition to cashless services in order to achieve an increase in cross-selling. Toward this goal, increase customizability (technological capability) and delivery speed. Encour
Slide 43: 3. Overseas Expansion
3. Overseas Expansion By advancing partnerships with overseas QR code payment brands, major overseas banks, etc., expanding the number of overseas payment brands handled and service areas, we are promoting and accelerating the global expansion of StarPay and StarPay-DX. Strong relations with oversea
Slide 44: Key Initiatives for This Current Fiscal Year: Multi-Cashless Payment
Key Initiatives for This Current Fiscal Year: Multi-Cashless Payment In addition to the traditional settlement business domain, we will work on supplementing all kinds of payment needs in domains that provide added value. Expanding into industries that Upgrading non-face-to-face Expanding payment br
Slide 45: Key Initiatives for This Current Fiscal Year: DX Solutions
Key Initiatives for This Current Fiscal Year: DX Solutions Traditionally, we provided a single product for the food and beverage industry to other businesses and business categories, but now we are working to provide solutions that respond to customer needs. Self-checkouts Local government wallets ⚫
Slide 46: Key Initiatives for This Current Fiscal Year: Overseas Expansion
Key Initiatives for This Current Fiscal Year: Overseas Expansion Expanding a made-in-Japan global 1 payment system to multiple countries through JPQR 2 Accelerating the additional introduction of cashless services in Qatar ⚫ We are promoting the realization of cross-border cashless ⚫ Since launching
Slide 47: Medium-Term Growth Image
Medium-Term Growth Image Further expand cashless payments centered on QR code payments, our business foundation, while stepping up DX Solutions-based cross-selling and global expansion Present point in time Overseas 3 expansion 2 DX Solutions 1 Multi-cashless payment 2018 2026 2030 46
Slide 48: Financial and Capital Strategy
Financial and Capital Strategy We will actively promote growth investments aimed at improving corporate value over the medium to long term while enhancing shareholder returns. We introduced a new shareholder benefit program as an additional shareholder return measure. Going forward, we plan to activ
Slide 49: Supplementary Information
5 Supplementary Information
Slide 50: Company Profile
Company Profile Company Name NETSTARS Co., Ltd. Established February 12, 2009 Representative Tsuyoshi Ri Business Overview Cashless payment services, provision of DX solutions Capital 4,519.77mn JPY (as of June 30, 2025) 3F, 4F Sumitomo Fudosan Hatchobori Building, 3-3-5 Hatchobori, Chuo-ku, Address
Slide 51: Management Team
Management Team Experienced professionals are assigned to various fields. Tsuyoshi Ri, CEO, established the Company after working as an engineer at several Japanese firms. Chuck Chen, CTO, has development experience at major Silicon Valley tech firms. Hisahiro Chofuku, COO, was formerly the CEO of L
Slide 52: Basic Business Model: One-Stop Payment Gateway Services
Basic Business Model: One-Stop Payment Gateway Services We comprehensively support member stores with cashless payment gateway services supporting multiple methods. We streamline contracts, examination, adjustment, and settlements with multiple payment brands via a one-stop service Payment informati
Slide 53: Strong Net Sales Growth
Strong Net Sales Growth QR code payment fees driving strong sales growth COVID-19 hit inbound payments in 2020 but domestic brand usage offset the drop, and net sales grew steadily thereafter. CAGR of net sales +47.1% Net sales (StarPay) Net sales (StarPay-DX) Net sales (Other*1) 2016→2025 Impact of
Slide 54: Product & Service Strategy
Product & Service Strategy Local government & Supermarket industry Inbound industry public sector industry Hotel industry Restaurant industry Education industry Vertical Industries etc. Payment S. Marketing S. Wallet S. Product Solutions Fund lending S. B-to-B supplier chain S. Fintech structuring *
Slide 55: Factors Responsible for the Company's Technology Costs Reduction
Factors Responsible for the Company’s Technology Costs Reduction The world's most advanced technologies help us achieve high cloud systems stability (adoption of a cloud native infrastructure + container technology). Collaborative initiatives for products, technologies, testing, and operations balan
Slide 56: Payment example (1): Launch of JPQR Global at the 2025 Osaka-Kansai Expo
Payment example (1) : Launch of the provision of JPQR Global at the 2025 Osaka- Kansai Expo Following Cambodia in July, Indonesia's unified QR code payment standard "QRIS" began supporting JPQR Global in August. It has been made available for use at the Indonesian Pavilion and other locations. Addit
Slide 57: Payment example (2): Connecting StarPay to Merpay/d Pay Shared QR Codes
Payment example (2): Connecting StarPay to Merpay/d Pay Shared QR Codes Connecting NETSTAR's StarPay to Merpay/d Pay shared QR codes*. As the first step, payments via WeChat Pay are now possible. We are also considering adding support for QR code payments, in addition to WeChat Pay. *Supports Mercha
Slide 58: DX Case Study 1: DX Product Provision
DX Case Study 1: DX Product Provision Expanding into new business categories, such as karaoke payments and automated hotels Karaoke Room Uta Hiroba 1955 Tokyo Bay by Hoshino Resorts Challenges Challenges ✓ Customer looking to reduce staffing during labor shortage ✓ Resort experiences user traffic su
Slide 59: DX Case Study 2: Payment Wallets, Digital Gift Certificates, Etc.
DX Case Study 2: Payment Wallets, Digital Gift Certificates, Etc. Wallet & gift certificate-related services for corporations & municipalities Tie up with House Pay®/SunplazaCardPAY Digital gift certificates/NahanchuPay for Local Governments We participated in the Naha City First stage of our tie up
Slide 60: DX Case Study 3: What Is a Mini-app?
DX Case Study 3: What Is a Mini-app? Mini-app: Enables multiple functions within a super app Joshin Denki (LINE) BYD (LINE) Heart Up (LINE) Hyper Soft (LINE) Membership Hair salon Gacha campaign Survey campaign management reservation 59
Slide 61: Key Points on Full-Year Forecast for FY 2026
Key Points on Full-Year Forecast for FY 2026 The policy is to steadily expand full-year profitability while targeting further improvement in results. GPV and net sales are expected to increase by about 20% • Domestic demand for cashless services remains strong, with GPV projected to increase by 20%.
Slide 62: Factors Responsible for Operating Profit/Loss for FY 2026
Factors Responsible for Operating Profit/Loss for FY 2026 Full-year profitability is expected to expand. Payment-related sales (including terminal sales) are expected to grow steadily, driven by the acquisition of major new projects, etc. Furthermore, DX projects, which were slow in FY 2025, will in
Slide 63: Priority Measures for DX Solutions
Priority Measures for DX Solutions To accelerate the cross-selling of multi-payments and DX Solutions, we will accelerate the expansion of our total solution Checkout-Less Platform, which supports the introduction of self-payments and self-ordering. We will promote the provision of products that are
Slide 64: Our Ideal State for 2030
Our Ideal State for 2030 Formulation of NETSTARS Ideal State for 2030 While aiming for our long-term goal to “Let the payments go smoother,” we have formulated our “Ideal State for 2030” as a vision for NETSTARS over the next five years, and we are sharing this medium-term vision with our stakeholde
Slide 65: Our Ideal State for 2030
Our Ideal State for 2030 Through organic growth centered on existing businesses, we aim for GPV over 6 tn JPY. Assuming payment- related sales of over 10 bn JPY, for sales at all companies of over 12 bn JPY We will keep low and stable churn rates, grow cohort-type GPV, and increase sales at all comp
Slide 66: Our Ideal State for 2030
Our Ideal State for 2030 We will leverage our store network to deliver integrated cashless, remittance, and DX services We will accelerate new member store acquisition, while actively expanding the provision of even more products via upselling & cross-selling at existing member stores. We use innova
Slide 67: Medium-Term Growth Image
Medium-Term Growth Image The Company intends to achieve a higher operating profit margin by limiting SG&A expenses to an increase of around 10%, while maintaining solid net sales growth each year. No significant increase in administrative costs (e.g., server costs) is currently expected. Sales Costs
Slide 68: Summarized Consolidated Statement of Profit or Loss
Summarized Consolidated Statement of Profit or Loss (million yen) FY 2024 FY 2025 As of June 30, 2026 Net sales 3,902 4,788 2,467 Cost of sales 923 1,122 581 Gross profit 2,978 3,665 1,886 SG&A expenses 3,062 3,372 1,731 Operating profit/loss -84 293 154 Non-operating income 88 167 100 Non-operating
Slide 69: Summarized Consolidated Balance Sheet
Summarized Consolidated Balance Sheet Cash and deposits are steadily increasing, boosting cash on hand (million yen) FY 2024 FY 2025 As of June 30, 2026 Total assets 35,739 38,354 39,775 Cash and deposits 33,875 36,209 37,425 Accounts receivable - trade 333 297 229 Software 577 494 427 Investments a
Slide 70: Disclaimer
Disclaimer ◼ Forward-looking statements in this document regarding future performance are based on information currently available to the Company and include potential risks and uncertainties. Therefore, please note that actual results may differ significantly from the forecasts in this document due