Gmo Financial Gate, Inc. · TSE:4051
Gmo Financial Gate — Q3 2024 Earnings Presentation
87 slides from Gmo Financial Gate's earnings presentation, Aug 9, 2024
Slide 1: Financial Results Briefing for 3Q FY2024
Financial Results Briefing for 3Q FY2024 Profit progress is ahead of schedule toward full-year forecast. Continue future pipeline expansion August 9, 2024 17th IR Presentation GMO Financial Gate, Inc. (Ticker: 4051, TSE-Growth) https://gmo-fg.com/ Copyright 2024 GMO Financial Gate, Inc.
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 August 9, 2024 Note that presentation material content is subject to c
Slide 3: Meeting Agenda
Meeting Main Agenda Agenda 1. Summary of Financial Results for 3Q 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 3Q FY2024
Summary of Financial Results for 3Q FY2024 1 Copyright 2024 GMO Financial Gate, Inc.
Slide 5: 3Q FY2024 Summary
1.1 3Q FY2024 Summary Revenue remained in-line with FY forecast, operating profit largely achieved the FY forecast Expanding profit pipelines for next fiscal year and beyond while continuing future investment Q3 FY2024 P6 ‐ Revenue : ¥ 13.59bn (YoY+13.3%) Progress towards full-year forecast 70.8% ‐
Slide 6: Summary of Financial Results
1.2 Summary of Financial Results Revenue is in-line with forecast, profit progress is ahead of schedule Number of active ID’s continue to expand even with high growth in the last FY due to Japan Post Forecast Progress towards （mn yen） Q3 FY2023 Q3 FY2024 YoY FY2024 forecast FY2024 Revenue 12,003 13,
Slide 7: Breakdown of Financial Results
1.3 Breakdown of Financial Results Steady growth in revenue despite impact of large project in the previous term such as Japan Post Due to expansion of recurring revenue, profits achieve high growth while exceeding forecast ◼ Revenue (mn yen) (±) Initial：in-line growth despite impact of large projec
Slide 8: Revenue by Business Model (YoY)
1.4 Revenue by Business Model (YoY) Initial: Steady increase despite large project in last FY Recurring: Well balanced growth while composition of recurring revenue rose (Unit：Millions of Yen) Q3 FY2023 Q3 FY2024 YoY (Composition %) (Composition %) 8,587 8,645 Initial +0.7％ (71.5%) (63.6%) 3,416 4,9
Slide 9: Revenue by Business Model (Quarterly)
1.5 Revenue by Business Model (Quarterly) Initial: QoQ growth as planned with mid to small size deals Recurring: Continued growth due to rise in number of active ID’s Initial Revenue Recurring Revenue （mn yen） （mn yen） 4,000 2,000 3,461 1,800 1,765 Avg QoQ for each FY 3,500 Stock Fee Spread 3,143 1,
Slide 10: KPI
KPI 2 Copyright 2024 GMO Financial Gate, Inc.
Slide 11: Initial Revenue and Number of Active IDs
2.1 Initial Revenue and Number of Active IDs Steady initial revenue with mid to small sized deals Steady increase in number of active ID’s ( ) : Excluding, for Japan Post +16.8 +18.4 +25.5 +27.2 361.3 Initial revenue（mn yen） 344.5 (+20.2) Number of active IDs （thousands） +39.3 326.0 (+20.0) 298.8 +1
Slide 12: Consolidated KPI (Number of Active IDs)
2.2 Consolidated KPI（Number of Active IDs） Even with effects of large-scale project in last quarter, active IDs steadily increased Terminal-less ID’s increased by 3,000 3Q FY2024 YoY＋88.0 K、YoY+32.2% （Thousand） Manned terminal Unmanned terminal Sold by others Terminal-less YoY 400 QoQ＋16.8 K 361.3 T
Slide 13: Consolidated KPI (Quarterly Transaction volume / GMV)
2.3 Consolidated KPI (Quarterly Transaction volume / GMV) Transaction volume and value increased by more than 50% YoY Transaction Volume Transaction Value (GMV) （mn） （100 mn yen） YoY +53.0% YoY +51.7% 200 16,000 150 12,000 100 8,000 50 4,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 14: Business Highlights
Business Highlights 3 Copyright 2024 GMO Financial Gate, Inc.
Slide 15: Top Merchants (GMV basis)
3.1 Top 30 Merchants (GMV basis) Major supermarkets which started operation in 2Q, emerges as the top merchant, while 3 new merchants increased. Composition of Top 30 ratio continues to decrease while merchant portfolio diversifies 3Q FY2023 Only 3Q FY2024 Only Gentlemen's Clothing Stores A Super Ma
Slide 16: Comparison to Market Growth (May YoY)
0 2 4 6 8 10 (tn yen) 19/10 19/11 19/12 20/01 20/02 20/03 20/04 20/05 20/06 20/07 20/08 All (left axis) 20/09 20/10 20/11 20/12 Retailers (left axis) 21/01 Hotel/inn (left axis) 21/02 Restaurants (left axis) 21/03 21/04 21/05 21/06 21/07 21/08 21/09 21/10 21/11 21/12 22/01 22/02 22/03 22/04 22/05 22
Slide 17: Settlement Platform which Grows with its Merchants
3.3 Settlement Platform which Grows with its Merchants GMO-FG GMV grew at +51.7% YoY for 3Q, +22.8%YoY for existing merchants Merchants grew with GMO-FG’s settlement platform GMV Growth Rate Newly acquired Growth of Overall +¥ 56.08bn merchants GMV overall (YoY+51.7%) 16,451 Existing Growth of GMV f
Slide 18: Growth Strategy and Progress
Growth Strategy and Progress 4 Copyright 2024 GMO Financial Gate, Inc.
Slide 19: Image of rise in Revenue & Operating Profit
4.1 Image of rise in Revenue & Operating Profit Market share expansion phase: sales/activation of payment terminals will lead to fluctuation in revenue Profit margin expansion phase: recurring model revenue will increase due to increase in active IDs which will contribute to operating profit growth
Slide 20: Mid-term Financial Plan
4.2 Mid-term Financial Plan OP of 1.5bn yen will be achieved this year 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 21: ARR Expansion Action Plans
4.3 ARR Expansion Action Plans: 1 2 3 4 Focus on increasing the number of active IDs and ARPU to maximize ARR*. For each large corporate group / SME, we will take measures to maintain and improve APRU and aim to expand ARR ARR = Active IDs × ARPU *ARR : Annual Recurring Revenue (yearly recurring mod
Slide 22: ARR Expansion Measures in Major Corporate Groups
4.4 ARR Expansion Measures in Major Corporate Groups Action Plans: 1 2 3 4 Horizontal: Expansion of active IDs through horizontal implementation of existing solution assets Vertical: Improve ARPU per active ID by pitching additional solution assets Horizontal Expansion Image Vertical Expansion Image
Slide 23: Vertical Expansion from Ecosystem Formation
4.5 Vertical Expansion from Ecosystem Formation Action Plans: 1 2 3 4 Expanding pipelines for this FY with projects with short lead times Our solution assets were highly evaluated and received multiple additional orders in some projects Difficulty Large commercial Size of bubble: Contribution to ear
Slide 24: Expansion of Payment Platforms - Mobility Domain
4.6 Expansion of Payment Platforms - Mobility Domain Action Plans: 1 2 3 4 With the continued increase in the number of foreign visitors to Japan, mobility payments rose to 122 institutions. Experimental implementation will start with Bureau of Transportation in Tokyo and Keikyu in 2024 Implementati
Slide 25: Progress in Terminal-less Payment
4.7 Progress in Terminal-less Payment Action Plans: 1 2 3 4 Launched terminal-less payment service "stera fasstap/tap". Currently starting introduction to SMEs Plan to implement to a wide range of merchants to meet various needs Merchant Needs Pipelines GMV growth image (Size of bubble: GMV by indus
Slide 26: Expanding use of contactless NFC payment
4.8 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 c
Slide 27: Expanding ESG Initiatives
4.9 Expanding ESG Initiatives Working closely with external advisors to improve MSCI and Sustainalytics scores – continue to promote ESG initiatives to improve corporate value ESG Initiative Roadmap To Do’s Corporate value Present Promote MSCI score acquisition/improvement project • Continue coopera
Slide 28: Supplemental Agenda: Financial Information and Policies
Supplemental Agenda Financial Information, Investment and Shareholder Return Policies 5 Copyright 2024 GMO Financial Gate, Inc.
Slide 29: Profit & Loss
5.1 Profit & Loss (thousands of yen) 3Q FY2023 3Q FY2024 YoY Revenue 12,003,785 13,595,283 +13.3% Cost of goods sold 9,103,131 9,389,064 +3.1% Gross profit 2,900,654 4,206,219 +45.0% SG&A 1,923,987 2,806,677 +45.9% Operating profit 976,666 1,399,541 +43.3% Ordinary profit 973,092 1,391,449 +43.0% Pr
Slide 30: Revenue by business model (Quarterly)
5.2 Revenue by business model (Quarterly) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q （mn yen） FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 Initial 855 1,103 1,525 1,682 1,454 1,643 2,136 1,927 2,220 2,905 3,461 2,529 2,915 3,143 2,586 Recurring-Model 430 427 495 569 6
Slide 31: Changes in Revenue Composition and Gross Profit Margin
5.3 Changes in Revenue Composition and Changes in Gross Profit Margin Gross profit margin fluctuates due to change in revenue composition – has increased for 5 consecutive quarters Initial gross profit margin improved due to increased sales of unmanned terminals Decrease in gross profit rate due to
Slide 32: Balance sheet
5.4 Balance sheet No major changes End of 3Q FY2024（thousands of yen） ◼ Note Cash and cash equivalents Current liabilities Merchandise: ¥ 2.95 bn (37.9%) 3,519,035 Decreased by 380mn QoQ 4,256,739 Non-current liabilities Current liabilities: ¥ 3.51 bn Merchandise (Payment terminal) 2,064,896 No majo
Slide 33: Balance sheet (Quarterly)
5.5 Balance sheet (Quarterly) 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q （mn yen） FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 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 4,216 4,256 +40 +1,476 equivalents Current Merchandise 1,615 2,177 2,523 1,545 1,50
Slide 34: Consolidated KPIs (Number of Active IDs)
5.6 Consolidated KPIs（Number of Active IDs） The number of unmanned terminals continues to increase due to increase in self-service and labor saving Started disclosing the number of IDs for terminal-less payments 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q QoQ YoY （thousand） FY21 FY21 FY21 FY21 FY22
Slide 35: Capital Allocation Policy
5.7 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 36: Investment Policy
5.8 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 37: Shareholder Return Policy
5.9 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 medi
Slide 38: ESG Initiatives (Details)
Supplemental Agenda ESG Initiatives (Details) 6 Copyright 2024 GMO Financial Gate, Inc.
Slide 39: Expanding ESG Initiatives
6.1 Expanding ESG Initiatives Working closely with external advisors to improve MSCI and Sustainalytics scores – continue to promote ESG initiatives to improve corporate value ESG Initiative Roadmap To Do’s Corporate value Present Promote MSCI score acquisition/improvement project • Continue coopera
Slide 40: ESG-related topics (Materiality Identification/CDP Score)
6.2 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: Appendix
Supplemental Agenda Appendix 7 Copyright 2024 GMO Financial Gate, Inc.
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 (3Q FY2024) Flow Model ① Terminal Sales Initial 63.6％ Revenu
Slide 52: 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 53: 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 54: 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 55: Expansion in stera lineup
Expansion in stera lineup Business Model stera unit, mobile has been released in addition to stera terminal Usage expected to increase in different scenes New New Planned release in Planned release in 2024 Sept. 2024 Dec. Integrated Operation is Embedded in possible unmanned devices such as self che
Slide 56: 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 57: Difference between terminals sold and active IDs Part 1
Difference between the number of terminals sold and the number of active IDs Part 1 Business Model Initial revenue = Number of terminals sold × Average selling price per terminal + Accessory sales + Development sales Number of active IDs = Number of terminals that have processed payment at least onc
Slide 58: Difference between terminals sold and active IDs 2
Difference between the number of terminals sold and the number of active IDs 2 Business Model Number of active ID is calculated quarterly and is not directly linked to initial revenue Replacing existing devices contributes to initial revenue, however, does not increase or decrease the number of acti
Slide 59: 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 60: 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 ¥3 per transaction • Number of Order × Price of Roll Paper Roll paper This is
Slide 61: Fee ARPU
Fee ARPU (Fee revenue divided by Transaction volume) Business Model Fee ARPU is at the same level as Q3, Q2 – roll paper continues be major factor ◼ Fee ARPU（Fee revenue divided by Transaction volume） ◼ Composition of Fee ARPU （Yen） 6.00 5.50 Image of linkage ratio to the number of 5.19 Low transact
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 IDs & stock revenue
Relationship between number of active IDs & stock revenue Business Model In addition to the increase in the number of active IDs, revenue opportunities for Stock revenue will increase, but the status of subscriptions to paid services will differ depending on the needs/demand of merchants Payment Ter
Slide 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 Recurring model revenue ① Initial ➁ Stock ③ Fee ④ Spread Credit・China Union Pay・
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 ¥98 tn, four times larger than the online market. Cashless penetration is expected to rise driven by government-led cashless policies (tn yen) 200 100% Offline cashless market si
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 Transaction Volume Composition 2019 2020 2021 2022 2023 Composition 2019 202
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 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 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
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 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：¥138 tn/year Expansion Continuou
Slide 77: 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 78: 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 79: 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 80: 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 81: 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 82: 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 83: Shareholder Structure
Shareholder Structure Company Profile Actively engaged in IR activities for domestic and foreign institutional investors through 1-on-1 meetings and conference appearances, maintaining the ratio of foreign institutional investors at over 20%. GMO-PG Japanese Other enterprises Foreign Individuals ins
Slide 84: 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 85: Company Profile
Company Profile Company Profile ■Company GMO Financial Gate, Inc.（TSE Growth Ticker:4051） ■Foundation September 1999 ■Address Humax Shibuya Building 7F, Shibuya Dogenzaka 1-14-6, Tokyo ■Stock Capital ¥1,638 mn(end of June 2023) ■Major Shareholder GMO Payment Gateway, Inc. ■Board Member Representativ
Slide 86: 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 87: 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.