Gmo Payment Gateway, Inc. · TSE:3769

Gmo Payment Gateway — Investor Presentation (August 2025)

63 slides from Gmo Payment Gateway's investor presentation, Aug 8, 2025

  1. Slide 1: IR Introduction - Business Overview & Business Model -

    IR Introduction - Business Overview & Business Model - Q3 FY2025 August 8, 2025 82nd Investor Meeting Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 1

  2. Slide 2: 0. At a Glance

    0. At a Glance Key features of GMO-PG group’s business model and the mechanism of sustainable growth ・Broad-based & high growth payment market ・Leading player ✓ Repeating and indispensable part of any ✓ GMV ¥18.7 trn (FY2024) commercial transaction ✓ Revenue ¥73.7 bn（FY2024) Market ✓ EC penetration

  3. Slide 3: Contents

    1. Business p.4 Overview 2. Focus Areas p.22 3. Sustainability p.47 4. Reference p.54 Materials Abbreviations used in the material are as follows: GMO-PG : GMO Payment Gateway GMO-EP : GMO Epsilon GMO-RP : GMO Reserve Plus GMO-PS : GMO Payment Service GMO-FG : GMO Financial Gate GMO-CAS : GMO Card S

  4. Slide 4: 1.1 Our Track Record of Growth

    1.1 Our Track Record of Growth The results of management policy focused on sustainable growth （¥ mil） （¥ mil） （¥ mil） 83,377 30,225 35,000 34,272 30,000 80,000 Revenue*1 Operating Profit*1 EBITDA*1.2 +13.0％ +20.0% 30,000 +20.8% 70,000 73,785 25,000 25,187 28,534 25,000 60,000 20,000 50,000 20,000 15

  5. Slide 5: 1.2 Consolidated Management

    1.2 Consolidated Management Realize Group-wide stable growth through sound business operation that agilely responds to the business environment of each of the major Group companies Omni-channel Strategy Expand payment Diverse customer method offerings coverage Share customer base Consolidate head op

  6. Slide 6: 1.3 Three Business Segments

    1.3 Three Business Segments Expand peripheral businesses centered around payment profit business Payment Processing Business （Actual cumulative data through Q3 FY2025） ・Online Payment* 2% ・CP Payment 23％ Online payment ￥ ・Ginko Pay / Processing Payment After GMO-PG GMO-EP ・System Development Deliver

  7. Slide 7: 1.4 Our Value Proposition

    1.4 Our Value Proposition Businesses and services to comprehensively cater to customer’s needs Issues & Needs Value Proposition ・Cumbersome implementation work ・Package of diverse payment methods with ・Time consuming payment admin work, Processing centralized management Business Payment Merchant les

  8. Slide 8: 1.5 Our Business Eco-System

    1.5 Our Business Eco-System An expanding eco-system where the value-added services complements the main business to achieve mutual growth Increase in payment processing Payment processing （Gross margin 85％） Money Service Payment Business Processing Payment Business Enhancement Business Customer grow

  9. Slide 9: 1.6 Revenue Trend by Segment

    1.6 Revenue Trend by Segment Three segments of Payment Processing Business, Money Service Business and, Payment Enhancement Business （¥ mil） J-GAAP IFRS Payment Enhancement 80,000 Business Money 70,000 Service Business 60,000 50,000 40,000 Payment 30,000 Processing Business 20,000 10,000 0 04/9 05/9

  10. Slide 10: 1.7 Characteristic of Payment Business: Cross-Industry

    1.7 Characteristic of Payment Business: Cross-Industry Payment is a required action for any purchase and is a highly repetitive application Merchandise Non-merchandise /pharmaceuticals Food & Beverage Public transport Medical service office supplies Daily good & Tr a ve l / t i c k e t /Health food

  11. Slide 11: 1.8 Positioning of GMO-PG Group

    1.8 Positioning of GMO-PG Group Connecting merchants and payment companies through ‘contracts,’ ‘payment information,’ and ‘money flow’. Consumer Merchant GMO-PG consolidated Payment subsidiaries Companies 164,276 stores*1 40+ Credit card (As of end-Jun 2025) companies EC Convenience store B2B・B2C・C

  12. Slide 12: 1.9 Revenue Model of Credit Card Payment Processing

    1.9 Payment Processing Business: Revenue Model of Credit Card Payment Processing Revenue model determined by merchant size and type ■Four revenue types (i.e., business models) ■Revenue type determined by merchant type/size ① Initial (Initial revenue) Municipalities Payment Terminal Sales Coefficient

  13. Slide 13: 1.10 Payment Processing: Two Types of Merchant Contracts

    1.10 Payment Processing: Two Types of Merchant Contracts Direct Contract Payment Payment Revenue type ③ Processing Processing No. of contracts ② Stock Contracts with multiple payment companies ③ Fee MDR 2.8% Merchant Discount Rate (MDR) Direct negotiations with （Large GMV = Lower MDR） payment compan

  14. Slide 14: 1.11 Revenue Breakdown by Business Model

    1.11 Revenue Breakdown by Business Model Aiming for a balanced revenue growth by pursuing various initiatives （¥ mil） J-GAAP IFRS 80,000 70,000 Spread 60,000 50,000 40,000 Fee 30,000 20,000 Stock 10,000 Initial 0 04/9 05/9 06/9 07/9 08/9 09/9 10/9 11/9 12/9 13/9 14/9 15/9 16/9 17/9 18/9 19/9 20/9 21

  15. Slide 15: 1.12 Summary Table of Segments, Business Model and Services

    1.12 Summary Table of Segments, Business Model and Services Reporting in 3 segments and 4 business models Business Model Segment Online Payment* Initial Online Payment* / fincode byGMO CP Payment （Initial revenue) SSL Service CP Payment Online Payment Payment Processing CP Payment Business Ginko Pay

  16. Slide 16: 1.13 Competitive Advantage and Achievements

    1.13 Competitive Advantage and Achievements Expand value provided to clients to contribute to client’s growth Past Present （As of end-Sep 2011） （As pf end-Sep 2024） １ Over 30 Product Nos. of payment Credit card pure-play（payment) Multi-payment methods Comprehensive Capability （*Before 2005） Implemen

  17. Slide 17: 1.14 Re-Bundling

    1.14 Re-Bundling*1 One-stop support of merchant’s growth through product scalability (resulting in enlarging project size) Value proposition to merchants/users: examples of products offered Examples of supporting merchant’s growth Strengthen online sales Reduce payment operation burden Online “Re-bu

  18. Slide 18: 1.15 Evolution of the Ecosystem

    1.15 Evolution of the Ecosystem Evolving the ecosystem enhances acquisition of large clients, which in turn further expands payments and EC penetration rate Payment Credit card payment Multi- Payment Early Payment CP payment Payment Expand payments After Promote EC usage of elderly Customer Delivery

  19. Slide 19: 1.16 Continuous Achievement of OP Target

    1.16 Continuous Achievement of OP Target Earnings targets achieved through a high visibility of the earnings structure and a disciplined business operation Operation Profit* （¥ mil） 30,000 Initial Forecast Actual 25,000 Continuing stable growth while overcoming external volatilities 20,000 15,000 20

  20. Slide 20: 1.17 Expansion of Business Domains

    1.17 Expansion of Business Domains Aim for OP 25% CAGR by expanding TAM by entering new domains 2010 2020 2025 2030-31 TAM ¥5 tr ¥51 tr*1 ¥180 tr*1 ¥500 tr*1 2016～ CP cashless ¥19 tr*2 ¥112 tr ¥271 tr 2006～ Broader EC ¥5 tr ¥32 tr ¥60 tr ¥129 tr 2025～ BtoB (wholesale) ¥56 tr 2024～ BtoB (corporate ca

  21. Slide 21: Contents

    1. Business p.4 Overview 2. Focus Areas p.22 3. Sustainability p.47 4. Reference p.54 Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 21

  22. Slide 22: 2.1 Focus Markets

    2.1 Focus Markets Sustain high growth from expanding revenues in existing services and entering new domains Actual figures Focus market revenue forFY24 (¥ bn） Global ・Overseas lending Loan balance 70 ・ Approx. ¥19.0bn Business ・Ginko Pay base system domain 2017 ・GMO-PG Processing BaaS 60 expansion B

  23. Slide 23: 2.2 Narrowly-Defined EC: BtoC EC Market

    2.2 Narrowly-Defined EC: BtoC EC Market Low cashless and EC penetration compared to US/European countries EC Penetration Rates in Developed Markets*1 Cashless Penetration (ratio to private final consumption)*2 *3 （％） （¥ trn） （％） UK 31.0 Cashless penetration Gov’t target Future: 80% 50% USA Credit ca

  24. Slide 24: 2.3.1 Broader EC: Expanding Scope of Cashless Business

    2.3.1 Broader EC: Expanding Scope of Cashless Business Japan’s migration towards cashless payment contributes to accelerating the growth of GMO-PG group BtoB BtoC CtoC Private Final Consumption*1 ¥1,000 trn ¥2.5 trn ¥300 trn Merchandise EC*2 Market size of ¥14.6 trn EC penetration 9.4% Flea Market A

  25. Slide 25: 2.3.2 Broader EC: Target Markets

    2.3.2 Broader EC: Target Markets Address each vertical in the vast white space Cashless penetration by industry (credit card usage) Proportion of household expenditure by industry*4 Merchandise EC ¥14.6 trn*1 Narrowly-defined EC ¥24.8 trn*1 Other Broader EC ¥60 trn*2 Market size by industry*3 Cashle

  26. Slide 26: 2.3.3 Broader EC: Taxes/Public Dues and Utility Bills

    2.3.3 Broader EC: Taxes/Public Dues and Utility Bills Entered into the public dues/taxes sector in 2006 when Local Autonomy Law was amendment; pioneered credit card payments in this sector Tax・Utility Bill National tax smartphone app payment service Hometown tax Water bill, etc. NHK Broadcasting sub

  27. Slide 27: 2.3.4 Broader EC: Online payment transaction Volume

    2.3.4 Broader EC: Online payment transaction Volume* Stable growth by capturing pay-as-you-go and recurring billing （100 million transactions） 60 Pay-as-you-go 40 Digital content payment Payment occurs at each subscription purchase 20 Electricity bill Recurring payment Water utility bill Fixed amoun

  28. Slide 28: 2.3.5 Broader EC: Online payment transaction Value

    2.3.5 Broader EC: Online payment transaction Value* TRX Value = Sustainably grow revenues at client/merchants that we support （ ¥ trn） 10 8 Direct Contract 57% 6 4 Representative 2 Contract 43% 0 03/9 04/9 05/9 06/9 07/9 08/9 09/9 10/9 11/9 12/9 13/9 14/9 15/9 16/9 17/9 18/9 19/9 20/9 21/9 22/9 23/9

  29. Slide 29: 2.3.6 First domestic PSP to make fincode byGMO MCP compatible

    2.3.6 Broader EC: First domestic PSP to make “fincode byGMO” MCP compatible Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 29

  30. Slide 30: 2.3.7 Collaborate with Allganize's AI agent tool

    2.3.7 Broader EC: Collaborate with Allganize’s AI agent tool Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 30

  31. Slide 31: 2.3.8 First PSP to open MCP compatible server to GitHub

    2.3.8 Broader EC: First ever PSP to open MCP compatible server to GitHub Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 31

  32. Slide 32: 2.3.9 Broadly-defined EC: GMO Enpay

    2.3.9 Broadly-defined EC: GMO Enpay Driving the cashless migration and DX in the nursery and education sectors Product Growth strategy One-stop offering of LINE billing, payment and deposit management Short term: Sales synergy with GMO-PG service (local government, large enterprises, etc.) UI/UX tha

  33. Slide 33: 2.3.10 Broader EC: GMO Reserve Plus

    2.3.10 Broader EC: GMO Reserve Plus Provides reservation management system to realize operational efficiency at medical hospitals and clinics Product/Value proposition Growth strategy A reservation system for medical institutions ・Expand target domains Management that provide seamless coverage from

  34. Slide 34: 2.3.11 Medical management analysis tool AI-Board

    2.3.11 Broader EC: Medical management analysis tool “AI-Board” Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 34

  35. Slide 35: 2.4.1 FinTech: Money Service Business

    2.4.1 FinTech: Money Service Business Money Service Business that contributes to expanding payments Service Related assets Business Model GMO Payment After Delivery Pay the sales proceed ahead of ③ Fee Accrued revenues GMO B2B Pay On Credit the deposit from the consumer ④ Spread atokara Improves cas

  36. Slide 36: 2.4.2 FinTech: Japan's BNPL Market

    2.4.2 FinTech: Japan’s BNPL Market Expand business by capturing the Japan’s unique BNPL needs BNPL needs in Japan Outlook of Japan’s BNPL market ・Receiving goods before payment A growing payment method driven by the (Unit：¥ bn） ・Cash payment expansion of EC, used in conjunction with Consumer ・Manage

  37. Slide 37: 2.4.3 FinTech: BNPL Service atokara

    2.4.3 FinTech: BNPL Service “atokara” Realizes flexible and convenient payment to be used in diverse purchasing scenes Expanding service domains of atokara (size of addressable markets)* Significance of new business ・Data storage over 10 years/Business creation with partner companies leveraging base

  38. Slide 38: 2.4.4 Instant Salary byGMO (Salary Prepayment Service)

    2.4.4 FinTech: Instant Salary byGMO (Salary Prepayment Service) Be the de facto standard of digitalization and seamless operation in the ¥231 trn salary market Service Growth strategy Enables salary for the work completed to be ・Entering into short-term labor market paid instantly and whenever ・Pene

  39. Slide 39: 2.4.5 Invoice Card Pay byGMO

    2.4.5 FinTech: Invoice Card Pay byGMO Promoting card payment between corporates as the exclusive partner of AMEX Collaboration with American Express for inter-company payments Commenced in October 2024: Intercompany Launched GMO-PG’s “Invoice Card Pay byGMO” Business efficiency, payments to AMEX cor

  40. Slide 40: 2.5.1 BaaS (Embedded Finance)

    2.5.1 BaaS（Embedded Finance） One-stop payment solution by leveraging our payment know-how and track record GMO-PG Processing Platform Revolutionary credit card issuing system “H-ALIS”* クレジット Issuing FEP ハウス Network カード Gateway ソリューション イシュイング House サポート サービス Acquiring デビット Solution カード プリペイド Prepaid

  41. Slide 41: 2.5.2 BaaS / Card Present IoT

    2.5.2 BaaS/ Card Present IoT Increase Ginko Pay adopters, interlink each service to create an infrastructure-like service Ginko Pay GMO Cashless Platform Smartphone-based payment app that allows Cashless solution for CP stores that offers a package of for immediate debit from user’s bank account, pa

  42. Slide 42: 2.6 Card Present IoT: CP Payment Market

    2.6 Card Present IoT: CP Payment Market Scale-up business through cashless migration and alliance strategy CP payment：GMO Financial Gate, one of our Group companies, offers payment terminals for payments made at CP stores. 【Growth factors of the CP market】 Cashless demand arising from diversifying p

  43. Slide 43: 2.7.1 Global: Overseas Strategy

    2.7.1 Global: Overseas Strategy Leverage overseas expertise to focus on growth markets of SE Asia and India Business Area Payment Processing Business India & SE Asia Money Service Japan Business North America Profit Center Innovation Innovation Growth Center Center Center Strategy Investments and Bo

  44. Slide 44: 2.7.2 Global: 20-year Track Record of Overseas Investment Strategy

    2.7.2 Global: The 20-year Track Record of Overseas Investment Strategy Major functions shifted to India/Pacific region: Evolving into a credit provider from a payment service provider Major overseas investment and loan portfolio Market expansion of SE Asia & India 10% Penetration B2C EC TAM*2 ¥40 tr

  45. Slide 45: 2.7.3 Global: Investment Strategy

    2.7.3 Global：Investment Strategy Drive investment strategy in payment domain of the huge U.S. Payment market Aim of a minority equity stake Our Mid-term Global Strategy ・Obtaining insights into FinTech ・Leverage FinTech expertise ・Creating synergy ・Establishment of overseas payment business ・Acceler

  46. Slide 46: Contents

    1. Business p.4 Overview 2. Focus Areas p.22 3. Sustainability p.47 4. Reference p.54 Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 46

  47. Slide 47: 3.1 Business Opportunities Based on Social Challenges

    3.1 Business Opportunities Based on Social Challenges and Changes in Environment Converting social changes to opportunities for payment-related businesses Social Challenges Social Trends Business Opportunities for GMO-PG Depopulation Biometric CRM Regional authentication Aging/ revitalization Low bi

  48. Slide 48: 3.2 Materiality

    3.2 Materiality Identified materiality issues to be prioritized ❶ Innovation ～ Social advancement and customer’s growth through creation of payment innovations～ Provide a wide array of innovations centered on payment, a necessary step in many economic activities, Social that support operational effi

  49. Slide 49: 3.3 Environment

    3.3 Environment Continued achievement of zero GHG emissions (Scope 1,2) in FY2024 GHG emissions（Scope1,2） GHG emissions (Scope3) （t-CO2） （t-CO2） Scope2（Scope 1 is zero） 2,000 25,000 FY2024 Achieved ZERO Established target to reduce 1,600 Scope 1,2 Scope 3 (category 1+11) 20,000 emissions emissions f

  50. Slide 50: 3.4 Social

    3.4 Social Enhance job satisfaction, education and recruitment of good talent, based on our belief that “company = people” Human resources External evaluation Number of partners (left axis) Selected for “Great Place to Work Certification” for the Turnover rate (right axis) Approx. ¥30 mil 10th conse

  51. Slide 51: 3.5 Strengthening Governance Structure

    3.5 Strengthening Governance Structure Realize medium- to long-term improvement in enterprise value through strengthening of supervisory function of the Board Corporate Governance Organizational Structure ➀ Audit and Supervisory Committee ➁ Proportion of External Directors one third ①② ③ Special Com

  52. Slide 52: 3.6 Sustainability

    3.6 Sustainability Driving ESG management to realize a sustainable society and to enhance corporate value Roadmap of sustainability initiatives and achievements FY 2024 Integrated Report (English): https://www.gmo- Achieved zero emissions for Scope 1,2 pg.com/news/pdf/20250214_gmo_pg_ir_integrated_r

  53. Slide 53: Contents

    1. Business p.4 Overview 2. Focus Areas p.22 3. Sustainability p.47 4. Reference p.54 Materials Copyright (C) 1995 GMO Payment Gateway, Inc. All Rights Reserved. 53

  54. Slide 54: 4.1 Company Outline

    4.1 Company Outline (as of July 1, 2025) ■Name ■Management team GMO Payment Gateway, Inc. (3769; Tokyo Stock Exchange Prime) Chairman & Director Masatoshi Kumagai President & Chief Executive Officer Issei Ainoura ■ Date of establishment March 1995 Director, Executive Vice President Ryu Muramatsu ■ L

  55. Slide 55: 4.2 Organizational Chart

    4.2 Organizational Chart GMO Payment Gateway, Inc. GMO-PG internal organizations Annual General Shareholder’s Internal Audit Management Meeting (AGM) Office Committee Board of Directors Representative Audit & Director Supervisory Director Committee Corporate Value Creation Strategy Division Innovati

  56. Slide 56: 4.3 Major Subsidiaries and Equity-Method Affiliates

    4.3 Major Subsidiaries and Equity-Method Affiliates（IFRS Standards） GMO Payment Gateway, Inc. Consolidated subsidiary Equity method affiliate Multi payment service（targets small-sized merchants） GMO Epsilon, Inc. FY2024 Revenue ¥5,242 mil, Ordinary profit ¥3,125 mil (JGAAP) GMO Reserve Plus Co.,Ltd.

  57. Slide 57: 4.4 Key Characteristics of Payment Business

    4.4 Key Characteristics of Payment Business Stable industry with high entry barriers and low churn rates High entry barriers Regulation ・Responding to tightening regulation through repeated amendments (Amended ISA* etc.） ・Merchant management, security enforcement Payment company ・Unique payment prac

  58. Slide 58: 4.5 Product Map

    4.5 Product Map GMO-PG’s definition of payment: that which enables the digitalization of money flow No Credit Risk Cashless Payment Service DX support Ginko Pay base system PG Multi-Payment Service platform GMO-PG Processing platform Epsilon byGMO SMS Choice Verify service of Payment GMO Cashless Pl

  59. Slide 59: 4.6 DX Support Services to Improve Clients' PL/BS

    4.6 DX Support Services to Improve Clients’ PL/BS Service line-up that can respond to the diverse clients’ needs Customer needs & PL/BS changes Use cases Our DX support services EC shop, Utility bills PL Revenue Multiple payment methods PG Multi-Payment service Cost of Sales Paperless (lower postal

  60. Slide 60: 4.7.1 Revenue Model of Credit Card Payment

    4.7.1 Revenue Model of Credit Card Payment Brand usage charge 0.05% Brand usage charge 0.05% International Brand Inter-credit card company commission charge (Interchange Fee) 1.5~1.8% Invoice Acquirer Issuer (credit card co.) (credit card co.) Payment reimbursed Invoice Invoice Take rate Merchant pa

  61. Slide 61: 4.7.2 Revenue Structure in the Credit Card Foodchain by Player

    4.7.2 Revenue Structure in the Credit Card Foodchain by Player ■ Image of revenue structure by player Payment International Merchant processing Acquirer Issuer brand company Sale Merchant proceeds discount rate Spread revenue 100% Around 3.0% 0.3~0.5% 0.5 ~0.7% 1.5 ~1.8% 0.1% *Compiled by GMO-PG by

  62. Slide 62: 4.8.1 Business Outline of Payment Processing Company (1)

    4.8.1 Business Outline of Payment Processing Company (1) Problems with online credit card payment in the early days of E-Commerce Consumer Merchant Authorization Payment ①Order taking （approval number Company assigned） ク レ Credit Card Company Large volume of sales slips Network ジ ッ ト カ ②Enter each ③

  63. Slide 63: 4.8.2 Business Outline of Payment Processing Company (2)

    4.8.2 Business Outline of Payment Processing Company (2) Payment processing service realizes operational efficiency in credit card payment operations Consumer Merchants Payment Payment Processing company ①Order taking Company Credit・sales Update Credit Card Company card data Network Real-time credit

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