Financial Results Briefing for FY2023
Increase in active terminals contributes to recurring revenue,
leading to increase in market share and profitability

14th IR Presentation

November 14, 2023
GMO Financial Gate, Inc.
(Ticker:4051, TSE-Growth)

https://gmo-fg.com/

Copyright 2023 GMO Financial Gate, Inc.

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 November 14, 2023
Note that presentation material content is subject to change without priornotice in response to changes in the business environment or other
unforeseen circumstances

Copyright 2023 GMO Financial Gate, Inc.

2

TableofContents

Main Agenda

1. Summary of Financial Results for FY2023
2. KPI
3. Business Highlights
4. FY2024 Forecast
5. Growth Strategy and Progress
Supplemental Information
6.

Financial Information, Investment and Shareholder Return Policies

7.

ESG Initiatives (Details)

8.

Appendix

Copyright 2023 GMO Financial Gate, Inc.

Summary of Financial Results for FY2023

1
Copyright 2023 GMO Financial Gate, Inc.

1.1 FY2023 Summary
Increased revenue, profit above prior forecast, made aggressive recruitment and administrative
expenses●FY2023 Full Year Results P 6‐Revenue: ¥15.90 bn (YoY+54.5%)‐Operating Profit: ¥1.12 bn (YoY+51.3%)
Quantitative● Revenue Categories P 8‐Initial Revenue: ¥11.11 bn (YoY+55.2%)‐Recurring-Model revenue: ¥4.79 bn (YoY+53.0%)● KPI Full Year P 14～P 17‐Transaction Volume (Number of Transactions):0.48 bn (YoY+61.4%)‐GMV: ¥4.14 tn (YoY+68.6%)‐Number of Active Terminals (4Q): 298 K (YoY+99 K、YoY+49.8%)

Qualitative

Business
TopicsOrganization

Topics• Installation of terminals for Japan Post have been completed for c. 20K / 20.6K terminals – started operation in 3Q tocontribute to recurring revenue P 10、P 15• Started service to JTB from 4Q – plan to finish installation in 1H P 30
• Full-time employees reach 100 people – plan to keep a small exceptional team, but will continue hiring employeesthat support business expansion P 12P●
• Awarded “Awards for Excellence in Corporate Disclosure” which is chosen by Securities Analysts Association ofJapan. Further commitment to strengthen/enhance IR P 35
Copyright 2023 GMO Financial Gate, Inc.

5

1.2 Summary of Financial Results
Full year results ended above forecast revision released on August 9th – increased dividends due toprofitability increase and profit sharing with shareholders（Millions of yen）

FY2022 Full Year
Results

FY2023 Full Year
Forecast Revision(Released Aug. 9)（Forecast at

FY2023 Full Year
Results

FY2023 Full Year
Results

beginning of FY)

beginning of FY)

Revenue

10,295Gross profit

2,768

Operating profit

740

Profit attributable to owners of parent

472

15,000

3,600
1,020

108.5%

631

109.8%

39 *

118.3%+58.0%(128.7%)After forecast revision

46 Before forecast revision(35.5)+51.3%(120.5%)

746

(580)

+41.1%(124.5%)

1,120

(930)

+54.5%(127.6%)

3,905(3,136)*Reflects stock split of 1:2

106.1%

15,909(12,470)

29 *Dividend per share (yen)YoY(Forecast at

+7

+17

(+11.5)

KPIs

Number of Active Terminal

Transaction Volume

GMV

4Q only（YoY）

298,818（+49.8%）

Approx. 144.38 mn（+56.5%）

Approx. ¥1.19 tn（+58.4%）

FY（YoY）－

Approx. 488.22 mn（+61.4%）

Approx. ¥4.14 tn（+68.6%）

Copyright 2023 GMO Financial Gate, Inc.

6

1.3 Major Topics Regarding Financial Results
Revenue and gross profit are above forecast, leading to aggressive investment for future growth –however operating profit growth exceeds 1.5x YoY（Unit：Millions of yen）

18,000

Revenue（YoY+54.5％）◼ Revenue(＋)Initial revenue increased due to large contracts in 2Q, 3Q – more revenue than expected in 4Q(＋)Recurring revenue growth due to increased terminal operation(＋)Inbound tourist demand also contributed to recurring revenue growth

16,00014,000◼ Gross Profit(＋)Revenue growth(＋)Steady recurring revenue growth which leads to high margin(－)Higher composition of revenue for low margin “stera” terminals

12,00010,00015,909
8,000

6,000

10,295Gross Profit（YoY+41.1％）◼ Operating Profit(＋)Steady growth in revenue and gross profit.
(－)Exceeded profit compared to forecast isreinvested for future growth

4,000

3,905

2,000

Operating Profit（YoY+51.3％）

2,768
740

0
FY2022 売上高 FY2023

FY2022売上総利益
FY2023Copyright 2023 GMO Financial Gate, Inc.

1,120

FY2022営業利益FY2023

7

1.4 Revenue by business model (YoY)
Large pipeline conversion led to composition of initial sales, however, recurring revenue in fees led torevenue growth which led to the same level of growth with initial revenue. Spread returns to 20% growth(Unit：Millions of Yen)FY2022

FY2023(Composition %)(Composition %)YoY

Initial7,162(69.6%)

11,116(69.9%)+55.2％

Recurring-Model

3,132(30.4%)

4,792(30.1%)+53.0％

Stock

865(8.4%)

1,243(7.8%)+43.7％

Fee

1,317(12.8%)

2,396(15.1%)+82.0％

Spread950(9.2%)

1,151(7.2%)+21.2％

10,295(100.0%)15,909(100.0%)+54.5％

Total Revenue

Copyright 2023 GMO Financial Gate, Inc.

8

1.5 Revenue by business model (Full Year)
Initial, recurring continues steady YoY growth
Pipelines and seasonal reasons led to bumpiness in QoQ, however, steady growth on a full year basis
Initial Revenue

Recurring Revenue（Unit：Millions of yen）

（Unit：Millions of yen）

6,000

12,00011,116

ストック
Stock

スプレッド
Spread

4,792

5,000

10,000

YoY+55.2%

8,000

YoY+53.0%

4,000

7,162
YoY+38.6%

6,000

フィー
Fee

1,151

3,132
3,000

5,166

YoY+62.9%
950
2,396

2,000

4,000

1,923
764

2,000

1,000

533
624

0

1,316

865

1,243

0
FY20212021/9期

2022/9期
FY20222023/9期
FY2023Copyright 2023 GMO Financial Gate, Inc.

FY20212021/9期

FY20222022/9期

FY20232023/9期

91.6 Revenue by business model (Quarterly)
Initial: Concentrated pipeline conversion in 2Q、3Q – high level of pipeline conversion in 4Q
Recurring: Consistent revenue increase due to increase in active terminals
Initial Revenue

Recurring Revenue（Unit：Millions of yen）

（Unit：Millions of yen）

YoY+49.4%

1,600

4,000
3,461

3,500

1,400

2,529
2,500

Before Covid-19

1,525
1,500

315
1,091 299
1,047

1,000

921

800

500

400

693
450

268

465

200
0

0
FY20 20/9期
FY20 20/9期
FY20 20/9期
FY20 21/9期
FY21 21/9期
FY21 21/9期
FY21 21/9期
FY21 22/9期
FY22 22/9期
FY22 22/9期
FY22 22/9期
FY22 23/9期
FY23 23/9期
FY23 23/9期
FY23 23/9期
FY23
20/9期
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q

683

268

242
250
643

569

600

855
626

686

Before Covid-19

1,643
1,454

239

495

1,103
1,000

1,277

841

1,927
1,682

1,375

Spread
スプレッド

2,220

2,136
2,000

Fee
フィー

1,200

2,905

3,000

Stock
ストック

391

430

427

203

363

367

177

179

124

74

70

80

110

117

128

132

135

145

160

FY20

FY20

FY20

FY20

FY21

FY21

FY21

79

361

185

333
179

217

193
101

149

539

261

259

182

185

206

229

244

259

283

FY21

FY22

FY22

FY22

FY22

FY23

FY23

181
99

434

519

183

693

334

366

FY23

FY23

20/9期 20/9期 20/9期 20/9期 21/9期 21/9期 21/9期 21/9期 22/9期 22/9期 22/9期 22/9期 23/9期 23/9期 23/9期 23/9期
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q

Copyright 2023 GMO Financial Gate, Inc.

10

1.7 Gross profit composition ratio
Growth in recurring revenue leads to steady profitability baseComposition by Product Category (Revenue and Gross Profit)（Unit：Millions of yen）

18,000Initial
イニシャル

Recurring
リカーリング型

15,90916,00014,000

4,792

Recurring 30%

11,116

Initial 70%

12,000

10,295
10,000
3,132
8,000

7,089

6,000

1,923

Recurring 30%

Recurring 27%

3,905
4,000

7,162
5,166

2,000

Initial 73%

0

Revenue
売上

2,768

2,020
1,080

Recurring 53%

940

Initial 47%

Gross Profit
売上総利益2021/9期
FY2021

Initial 70%

Revenue
売上1,759

Recurring 64%

1,009

Initial 36%

Gross Profit
売上総利益

FY20222022/9期
Copyright 2023 GMO Financial Gate, Inc.

Revenue
売上2,730

Recurring 70%

1,175

Initial 30％

Gross Profit
売上総利益
FY20232023/9期

111.8 SG&A and Profit Trends (half-year transition)
Proactively executed investment for growth which are variable costs (1. performance based
compensation, 2. other administrative costs) – however leveraged business growth which led to
profitability increase（Unit：Millions of yen）

2500
Revenue
Personnel costs (fixed cost)

2000

SG&A
1,674

Other SG&A (fixed + variable costs)
Performance based compensation (variable cost)
Variable costs within SG&A

1500

324
SG&A
1,188

Op margin

1000

500

980

SG&A
661

SG&A
771
45

65
237

273

359

1,041

453

319

224

SG&A
839
89
1,210

270

SG&A
1,111

1,558

2,159

192

668

1,747
412

422

311

439

552

371

370

497

682

636

485

0

21/9期
FY2021
1H
1H(実)

21/9期
FY2021
2H
2H(実)

22/9期
FY2022
1H
1H(実)

22/9期
FY2022
2H
2H(実)

23/9期
FY2021
1H
1H(実)

23/9期
FY20222H
2H(実)FY2021

FY2022

FY2023

No. of partners(end of FY, consolidated)

81

96

108

Operating Profit(end of FY, consolidated)¥5.8mn¥7.4mn¥112.0mn

Operating Profit per employee(end of FY, consolidated)¥7.3mn¥7.7mn¥ 10.4mn

Copyright 2023 GMO Financial Gate, Inc.

*Monitor OP profit per person to pursue business
operations with a small number of elite employees,
emphasizing productivity and efficiency

12

KPI

2
Copyright 2023 GMO Financial Gate, Inc.

2.1 Main KPI (Full-year)
No. of Active Terminals: Growth in manned and unmanned terminals drive the increase in the number ofactive terminals
Number / GMV : Growth exceeded target of YoY +50% due to increase in number of active terminals
Number of active terminals（Unit: Thousand）

GMV

Number of transaction volume（Unit: 100 million)

Manned terminal

Unmanned terminal（Unit: trillion yen）

Sold by others
6.0

6.0

350.0
298.8
300.0
19.3

4.8

5.0

5.0

YoY+49.8%
YoY+61.4%

57.1

250.0

4.1
4.0

4.0
200.0

YoY+48.8%

19.1

3.0

3.0

3.0
150.0

134.0

47.6

2.4

YoY+112.7%

18.6
100.0

YoY+68.6%

199.5

222.2

YoY+111.3%
2.0

2.0

40.1

1.4
1.1

132.7

1.0

1.0

50.0
75.2

0.0

0.0
Q4
FY2021Q4
FY2022Q4FY20230.0
FY 2021

FY 2022

Copyright 2023 GMO Financial Gate, Inc.

FY 2023

FY 2021

FY 2022

FY 202314

2.2 Initial Revenue and No. of Active Terminals (Quarterly)
Initial revenue was bumpy due to pipeline conversion, however, number of active terminals led tosteady growth( ) : Excluding, for Japan Post
+39.3(+20.0)Initial revenue（Unit: Millions of yen）

4,000

Number of active terminals （Unit: Thousand）+25.5(+20.2)
298.8
273.2

+15.8

3,500

+18.6
+15.7

3,000

218.1

+19.2
199.5

+14.5
2,500

183.7

+15.9
164.5

+19.2
2,000

+15.5
+9.3

1,500

+11.3

+11.2

150.0
134.0

+10.7

3,461

114.7

+4.9

2,905

99.1
88.4
74.1

1,000

233.9

79.1

2,136

62.9
51.6

1,525

500

626

693

Q1
FY2020Q2
FY2020

855
450

465

Q3
FY2020Q4
FY2020

1,682

1,454

1,643

1,927

2,529

2,220

1,103

0
Q1
FY2021Q2
FY2021Q3
FY2021Q4
FY2021Q1
FY2022Q2
FY2022

Copyright 2023 GMO Financial Gate, Inc.

Q3
FY2022Q4FY2022Q1
FY2023Q2
FY2023Q3
FY2023Q4
FY202315

2.3 Consolidated KPI（Number of active terminals）
Continuous high growth mainly in manned terminals
FY2023
Active terminals overall ：YoY＋99.2K、YoY+49.8%（Unit: Thousand）

300

QoQ ＋25.5K

Manned terminal

Unmanned terminal

Sold by others

273.2

FY2022
YoY＋65.5K、YoY+48.8%

250

199.5

FY2021
YoY＋54.9K、YoY+69.4%

183.7
164.5
150.0

150

134.0
114.7

100

51.6
50

62.9
11.7

74.1
17.0

79.1
17.3
28.8

88.4

99.1

19.0

47.6

44.2
222.2
199.5

40.1

30.0

26.9

27.6

30.2

32.9

39.5

48.4

25.6
Q1
FY2020Q2
FY2020Q3
FY2020Q4
FY2020Q1
FY2021Q2
FY2021+9.4K(+19.9%)

52.3

45.8

31.8

23.5

75.2

61.6

(+1.5%)

Unmanned terminal (IoT)

49.5

33.9

9.9
16.0

+0.2K

54.1

42.4

18.8

18.8

18.8

19.1

19.1

19.2

18.9

19.2

18.6

Sold by others

57.1

233.9

YoY

19.3

19.5

218.1
200

298.8

88.3

101.3

118.7

132.7

149.4

Manned terminal

162.7+89.4K(+67.4%)0Q3FY2021Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022

Copyright 2023 GMO Financial Gate, Inc.

Q4
FY2022Q1
FY2023Q2
FY2023Q3
FY2023Q4
FY202316

2.4 Consolidated KPI (Quarterly Transaction volume / GMV)
Number of transaction, GMV leads to steady growth
Decrease in GMV per terminal decreased, however, this is due to seasonality and increased penetrationin the micropayment area
Number of transaction volume

Transaction value (GMV)（億円）（Unit：million）

13,000

YoY +56.5%

150

YoY +58.4%

12,000140
130

11,000120

10,000

110

9,000

100

8,000

90
80

7,000

70

6,000

60

5,000

50
4,000

Quasi of SOE＋
Seasonality

40
30
20

Quasi of SOE＋
Seasonality

3,000
2,000

10
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023

Transaction volume(10 K)
Transaction value(GMV)（¥100 M）

1,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023

Q1
FY2020Q2
FY2020Q3
FY2020Q4
FY2020Q1
FY2021Q2
FY2021Q3
FY2021Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY2023

FY2023Q3
FY2023Q4
FY2023

1,383

1,494

1,809

2,231

2,682

2,774

3,848

4,913

6,497

6,292

8,237

9,224

10,553

10,804

13,026

14,438

1,442

1,534

1,406

1,849

2,328

2,361

3,141

3,810

5,251

5,161

6,658

7,530

9,242

9,459

10,842

11,930

Copyright 2023 GMO Financial Gate, Inc.

Q2

17

Business Highlights

3
Copyright 2023 GMO Financial Gate, Inc.

3.1 Merchant Industry
Terminals for Japan Post were placed on-site in 4Q
Trends in installation locations have not changed significantly since 3Q – continuation of well balanced
growth that is not dependent on specific industries
Store scale：Large

Expanded

Post office

Expanded

Drug store(medicine/cosmetics)

One dollar shop

Publictransportation(Train/bus etc.)

Supermarket

Chain restaurant

Electronics
chain-retailers
Retailers/
Shopping Centerof Railway
company

clothing/
Sporting goods

IoT
Parking lot

ExpandedOne-stop service proposals withalliance partners

High inboundtourism demand
NeutralLargecommercial
facility/shopping
centerAction Plan

IoT Mobility

Administrative
institutions(City office /Police station/
Drivers’ license agency)•

Stadiums/Sports
spectator
facilities

Low unit
price

•

•

IoT

IoT

Vending

checkout machine•

Introduction of selfcheckout registers
IoT POS / Center
linkage

Solutions for the mass
marketProvision of DX services
to business partners

•
•

•
•

POS point linkage
Provision of DX services
to business partners

Sales strategies byindustry/ individualcompany
Proposals in collaboration
with business partners

Hotel/Travel

GMO Card System(consolidated subsidiary)High unit
price
Medical / Clinic

Expanded
Educational
institutions(Stores/Cafeterias
in University/High
School)Expanded

Expanded

Small restaurant

stera pack
(For SMEs)
Store scale : Small
Copyright 2023 GMO Financial Gate, Inc.

Service/
LeisureFine dining/High-end retailstera pack
(For SMEs)
19

3.2 Transaction Trends by Industry (Q4)

： High inbound tourism demandContinuous growth in the hotel, tourism industry – the reopening effect has reached its peak
Merchant Ａ

Merchant C

Steadily reachingits peakTransaction Volume
Transaction Value (GMV)

Transaction Volume
Transaction Value (GMV)

Chainrestaurant

Transitioned
steadilySupermarket

Transaction Volume

Continued recovery trend

Transaction Value (GMV)

Hotel/Travel

700,000

Merchant D

600,000

Drug store
Pharmacy

500,000

23/9

23/8

23/7

23/6

23/5

23/4

23/3

23/2

23/1

22/12

22/11

22/10

22/9

22/8

22/7

22/6

22/5

22/4

22/3

22/2

22/1

21/12

21/11

21/10

21/9

21/8

21/7

23/9

23/8

23/7

23/6

23/5

23/4

23/3

23/2

23/1

22/12

22/11

22/10

22/9

22/8

22/7

22/6

22/5

22/4

22/3

22/2

22/1

21/11

21/10

21/9

21/8

21/12

COVID19 Headwinds/Inbound-related industries

Merchant B

COVID19 Headwinds/Inbound-related industries
Transaction Volume
Transitioned
steadilyTransaction Value (GMV)(Medicine/
Cosmetics)

400,000
300,000
200,000
100,000

Copyright 2023 GMO Financial Gate, Inc.

23/9

23/8

23/7

23/6

23/5

23/4

23/3

23/2

23/1

22/12

22/11

22/10

22/9

22/8

22/7

22/6

22/5

22/4

22/3

22/2

22/1

21/12

21/11

21/10

21/9

21/8

21/7

23/9

23/8

23/7

23/6

23/5

23/4

23/3

23/2

23/1

22/12

22/11

22/10

22/9

22/8

22/7

22/6

22/5

22/4

22/3

22/2

22/1

21/12

21/11

21/10

21/9

21/8

0

21/7

21/7

(Izakaya)20

3.3 Top 30 ranked merchants (GMV basis)
Hotels, tourism industry are ranked high due to reopening effect, however, dependence to specificmerchants have decreased due to growth in GMV
FY2022 4Q
RetailerA
RetailerB
ApparelA
Drug StoreA
RetailerC
Low ASP RetailerA
Drug StoreB
Chain restaurantA
RetailerD
Medical/ClinicA
Hotel/TravelA
High ASP RetailerA
RetailerE
High ASP RetailerB
High ASP RetailerC
Hotel/TravelB
High ASP RetailerD
RetailerF
ApparelB
Drug StoreC
RetailerG
RetailerH
High ASP RetailerE
Hotel/TravelC
High ASP RetailerF
High ASP RetailerG
Hotel/TravelD
ApparelC
Hotel/TravelE
ApparelD

FY2023 4Q

Subtotal of top 30 GMV¥146.4 bn
Top 30 ratio: 19.4%（Unit: ¥100mn）

0

50

100

150

200

250

RetailerA
Hotel/TravelB
ApparelA
Hotel/TravelA
Transportation/LogisticsA
RetailerB
Drug StoreA
Low ASP RetailerA
RetailerC
Chain restaurantA
Drug StoreB
RetailerD
Hotel/TravelF
High ASP RetailerA
RetailerI
High ASP RetailerC
Medical/ClinicA
RetailerG
RetailerE
ApparelE
RetailerJ
ApparelB
Drug StoreC
ApparelF
RetailerH
RetailerF
RetailerK
Hotel/TravelE
High ASP RetailerB
Medical/ClinicB

300

Copyright 2023 GMO Financial Gate, Inc.

New

Increase from FY2022
Decrease from FY2022

Subtotal of top 30 GMV¥198.6 bn

New(+52.2bn YoY, +35.7% YoY)
Top 30 ratio: 16.6%
New

4 new clientsNew※Merchants with no transactionin the same period of theprevious year
New

（Unit: ¥100mn）

0

100

200

300

21

3.4 Comparison to Market Growth (August YoY)
Market growth is at +15%YoY while GMO FG GMV is at +59% YoY
Growth of existing merchants and acquisition of new merchants drives high growthMarket GMV (Transaction value of credit card payment)

GMO-FG GMV(100mnyen)

All (left axis)(tn yen)Aug 2022

Hotel/Inn (right axis)

10

Aug 2022

Aug 2023
8,000

Retailers (left axis)(100mnyen)

YoY +15%

Restaurants (right axis)

Aug 2023

5,000

YoY +59%
7,000
4,000

8
6,000

5,000

6

3,000

4,000
+10%
Yoy

4

3,000

2,000

+55%
YoY

2,000
1,000

2
1,000

0

0

19/10
19/11
19/12
20/01
20/02
20/03
20/04
20/05
20/06
20/07
20/08
20/09
20/10
20/11
20/12
21/01
21/02
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
22/06
22/07
22/08
22/09
22/10
22/11
22/12
23/01
23/02
23/03
23/04
23/05
23/06
23/07
23/08
23/09

23/09

23/08

23/07

23/06

23/05

23/04

23/03

23/02

23/01

22/12

22/11

22/10

22/09

22/08

22/07

22/06

22/05

22/04

22/03

22/02

22/01

21/12

21/11

21/10

21/09

21/08

21/07

21/06

21/05

21/04

21/03

21/02

21/01

20/12

20/11

20/10

20/09

20/08

20/07

20/06

20/05

20/04

20/03

20/02

20/01

19/12

19/11

0

19/10

+1%
YoY

Copyright 2023 GMO Financial Gate, Inc.

22

3.5 Settlement Platform which Grows with its Merchants
GMO-FG GMV grew at +58% YoY for 4Q, +31%YoY for existing merchants
Merchants grew with GMO-FG’s settlement platform
GMV Growth Rate(¥100 mn)
15,000

Newly acquired
merchants
Existing
merchants

Growth of
GMV overall
Growth of GMV fromexisting merchants

Overall +43.99 bn(+58.4% YoY)

11,93012,000

2,061
9,000

Existing +¥23.38 bn（+31.0％ YoY）

6,000

3,000

9,868

7,530

0

FY2022 4Q

FY2023 4Q*Existing merchants are calculated as the number of merchants in the same period of the previous year. Existing merchants increase in “the number ofpayment terminals” and “new store openings” are also considered as existing growth.

Copyright 2023 GMO Financial Gate, Inc.

23

FY2024 Forecast

4
Copyright 2023 GMO Financial Gate, Inc.

4.1 Track Record of Growth
Goals: Revenue: CAGR +25%, Op Margin: +25%
Track Record: Well above +25% growth
Pre IPO

Post IPO
5 years post IPO
Revenue CAGR+52%
OP
CAGR+33%（Unit: Millions of yen）

25,000
Revenue（Unit: Millions of yen）

5,000

OP Profit

売上(左軸)(left axis)

営業利益(右軸)(right axis)

4,500

19,20020,000

4,000
3,500

15,90925％ growth

15,0003,000
2,500
10,295

10,000

2,000

1,410

7,089

1,500

1,120
5,000

1,000

3,691
713

85

0
FY2016
2016/9期

2,379

1,617

1,051

93
FY20172017/9期

169

226

589

452

740
500
0

FY2018
2018/9期

FY20192019/9期

FY20202020/9期

FY20212021/9期

Copyright 2023 GMO Financial Gate, Inc.

FY20222022/9期

FY20232023/9期

FY20242024/9期

25

4.2 Forecast for FY2024
Initial revenue is expected to grow, even with large pipeline conversion in FY2023
Composition of recurring revenue forecasts improvement of gross profit
Initialイニシャル売上

（mn）

（mn）

FY2023

FY202420,000YoY

Recurring
リカーリング型売上

Gross

粗利益
Profit19,20018,000

Revenue

15,90919,20016,000+20.7%

14,00015,909
4,792

c.35%
30%

12,000Gross profit

3,905

5,095

+30.5%

10,0008,000

Operating profit

1,120

1,410

+25.9%

6,000

c.65%
11,11670%

4,000

Profit attributableto owners ofparent746

859+15.1%②

2,000
02023/9期(実)FY2023A

Earnings per share

90.25

103.67

5,095

3,905

－

GP ①
margin24.5％

2024/9期(予)FY2024E

GP
margin26.5％①*Profit level for FY2024

Dividend per share

46

52

－

① <Gross profit> expected to improve due to proportion increase ofrecurring revenue② <Net income> due to tax benefits in FY2023, lower level of growththan operating profit
Copyright 2023 GMO Financial Gate, Inc.

26

Growth Strategy and Progress

5
Copyright 2023 GMO Financial Gate, Inc.

5.1 Image of rise in Rev & OP
Market Share Expansion Phase: focus on sales/activation of payment terminals and revenue will be
fluctuated.
Margin Increase Phase: recurring revenue will increase due to increase in active terminals which willcontribute to operating profit growth
Increase of Market Share

Revenue
Active Terminals

Rise in Profit Margin

Revenue: Increase at a CAGR of 25% or more, although the extent of increase will vary fromperiod to period
Operating profit: Continue to grow 25% or more every fiscal year

Operating Profit

Sales may fluctuate significantly from period to period

Copyright 2023 GMO Financial Gate, Inc.

Active terminals willstack up each FY

28

5.2 Mid-term Financial Plan
Mid-term plan created at IPO has progressed ahead of schedule – A new five-year plan has been created
to promote operating profit of 5bn yen in 2030
Operating Profit Growth Curve
Base Trend(operating
profit:60
billions of yen)50

Mid to long term strategy

1Acquire multi-industry/high-growth enterprises bylaunching next-generation multipayment terminals

2

Expand IoT payments by supporting contactless (tap) andunattended payments

ベーストレンド
Base trend

1.業務DX支援
1. Digitalization support

2.transit
2. Transit

3. Tap toto pay/SME
3.Tap
Pay/SME

4. Large commercial
4.大型商業施設/SC

5. IoT alliance
5.IoTアライアンス

facility/shopping center

breakdown

3 Acquire large scale merchants through expansion of

5.0 bn+40

GMV(右軸)GMV (right axis)

alliances with QR, points, etc.

4 Increase added value by strengthening processing center40（GMV: trillions of yen)50

3.5 bn+functions30
Continued implementation at Public
transport, large commercial
facilities/shopping center

30

Start IoT
settlementbusiness

10

Make GMO-CAS
a subsidiary tostrengthenbusiness as a
whole

20

Start tap to pay(terminal-lesssettlement)

20

Start ofstera
service
Establish GMO
Data for stera
data processing
centerYoY +25%
growth

1.5 bn+
1.4 bn+Start transit
services
Expand mobile
terminals

10

0

0
2016

2017

2018

2019

2020
IPO

2021

2022

2023

2024

Copyright 2023 GMO Financial Gate, Inc.

2025

2026

2027

2028

2029

2030

29

5.3 Point - Economic Zone solution through vertical expansion

Action plans

1

2

3

4

Cashless Point*, Common Point, House Point has led to the continuous growth of point economy - accumulation ofpoint development solution assets led to the acquisition of major merchants in each industry*Points issued to consumers by payment providers after settlement by credit cards, QR code payment, E-money

TAM (Total Addressable Market) of “Points”

Point Economic Zone Formation through Increase in Cashless Settlements
Economic Zone D

TAM: Total of 1. Cashless Point*, 2. Common Point, 3.House Point
Expected to grow 2.6tn yen(2023) ⇒ 3.4tn yen(2027)
4

VerticalExpansion(tn yen)

Expansion ofservices byindustry

3.1
3.0

2.6

2.8

2.5
2.2

2

2.0

2.0

Economic
Zone B
Bus/Railway

Travel3.4
3Parking lot
EV meterHotel/InnPoint
economiczone

Real Estate

Amusement/Entertainment

Large commercial
facility / shopping
centerStadium
Facilities

Retailer
RestaurantHouse Point

Accumulation of solution
assets will contribute tomerchants in diverse
industries

Common Point

Cashless Point

1

JTB project will start from 4Q

Commercial
facility /shopping center

Stadium
Facilities

Public Service
Institution

Vending
machine

Parking lot
EV meterLaundry

2027E

Amusement

2026E

Travel2025E

Wholesale

2024E

JTB project will start from 4Q

Real Estate

2023E

Office/School

2022

Medical/Welfare2021

Hotel/Inn

2020

Bus/Railway

2019

Restaurant

Retailer

0

Economic
Zone C

Expansionincustomerindustry

Source：Yano Keizai

Horizontal Expansion

Copyright 2023 GMO Financial Gate, Inc.

①Payment terminal, ②Processing center, ③PSP service305.4 Expansion of Payment Platforms - Mobility Domain

1

Action plans

23With the recent increase in the number of foreign visitors to Japan, mobility payments in urban areas areon the rise - provided services to 64 enterprises as of Sept. 2023. Demonstration experiment is scheduled
to start with Tokyo Metro from 2024.
Implementation at Public Transportation Institutions

No. of Tourists and Mobility Settlements

No. of mobility introduction cases
in GMO-FG platform

No. of Tourists
250(Unit: ten thousand people)

September 2023：64 institutions* 200(28 prefectures) 150
100

70

YoY+38 institutions

64

50

0
21/3
21/4
21/5
21/6
21/7
21/8
21/9
21/10
21/11
21/12
22/1
22/2
22/3
22/4
22/5
22/6
22/7
22/8
22/9
22/10
22/11
22/12
23/1
23/2
23/3
23/4
23/5
23/6
23/7
23/8
23/9

60

Source: Compiled by Japan National Tourism Organization (JNTO) from "Number of Foreign Visitors to Japan

50

Numbers of Mobility Settlements
40

30

26

Kansai Transportation A

Kyushu Transportation B

Hokkaido Transportation D

OthersKyushu Transportation C

20

10*The number includes pre-launched cases

Copyright 2023 GMO Financial Gate, Inc.

23/09

23/08

23/07

23/06

23/05

23/04

23/03

23/02

23/01

22/12

22/11

22/10

22/09

22/08

22/07

22/06

22/05

22/04

22/03

22/02

22/01

21/12

21/11

21/10

21/09

21/08

21/07

21/06

21/05

21/04

20/7
20/8
20/9
20/10
20/11
20/12
21/1
21/2
21/3
21/4
21/5
21/6
21/7
21/8
21/9
21/10
21/11
21/12
22/1
22/2
22/3
22/4
22/5
22/6
22/7
22/8
22/9
22/10
22/11
22/12
23/1
23/2
23/3
23/4
23/5
23/6
23/7
23/8
23/9

0

31

4

5.5 Implementation at EXPO2025 in Osaka

Action plans

1

2

3

1,000 terminals expected to be implemented – increase in inbound tourists will contribute to number oftrannsactions in public transportation
Osaka Metro
Demonstration experiment of Visa touch settlements
will start in 2024 leading up to cashless, ticketlessentry gates“Stera transit” (SMCC’s public transport solution) will
start demonstration experiment at all Osaka Metro
stations
International brands other than Visa will be applicablestera terminal

https://www3.nhk.or.jp/kansai-news/20231109/2000079430.html

stera mobile

Total of 1,000 terminals to be implemented

Inbound
Tourism

Terminals will support EXPO2025 Original E-Money “MYAKUPE!” - service to be implemented in May 2024
Copyright 2023 GMO Financial Gate, Inc.

三井住友フィナンシャルグループ様、 Osaka Metro様

プレスリリースより当社作成

32

4

施策： 1

5.6 Expanding use of contactless NFC payment

2

3

The percentage of credit touch payments (also known as NFC, near field communication) at our centeris on an upward trend. Growing awareness of the convenience of NFC is driving the future spread ofcredit touch in the mobility field
Credit and debit payments at our centers / Proportion of payment methods

NFC IC

Insert IC

Swipe

100.0%

2.3%

2.2%

2.1%

2.0%

2.0%

1.9%

1.8%

1.6%

1.6%

1.6%

1.5%

1.5%

1.6%

1.6%

1.5%

1.5%

1.6%

72.8%

71.4%

78.5%

74.5%

68.3%

75.9%

70.1%

77.5%

24.0%

25.6%

27.1%

28.3%

30.2%

23/5

23/6

23/7

23/8

23/9

90.0%
80.0%
70.0%
60.0%

87.9%

87.1%

86.2%

85.4%

84.5%

83.6%

82.8%

81.7%

80.1%

50.0%
40.0%
30.0%

YoY+16.7pt

20.0%

14.5%

15.4%

18.3%

21.0%

13.5%

19.9%

12.6%

16.7%

22.6%

22/8

22/9

22/10

22/11

22/12

23/1

23/2

23/3

23/4

10.0%

9.7%

10.7%

11.7%

22/5

22/6

22/7

0.0%

Copyright 2023 GMO Financial Gate, Inc.

33

4

5.7 Expanding ESG Initiatives
Strengthening ESG related disclosure for aiming future step up to the Prime market of Tokyo stock
exchange. We are also in the process of improving corporate governance structure and human capital
disclosure
To Do’s

ESG Initiative Roadmap
Corporate value

MSCI ESG Rating Acquisition / Launch of Project Team

Present
Compilation ofIntegrated Report
Score to be acquired after FY2026/9

FTSE Score Acquisition/Improvement Project Launched
Enhanced disclosureof human capital

Project Launched

Identification of
ESG materiality

Dec. Disclosure of Earned
ReportingWebsite disclosure by
mid-December

MSCI Score Acquisition/Improvement Project Launched

done
done

Skill matrix creation

CDP first response

In an effort to improve thescoreIn discussion withoutside consultants

done

IPO

2020

Voluntary disclosureof ESG initiatives

2021• Consideration of the meaning, purpose, and issues of our promotion of ESG• Board of Directors will plan to pass a resolution and which will be disclosed on
the company website, securities report• Visualize data related to human resources, which we consider to be the mostimportant management resource.
• 2023/9 Assuming enhanced disclosure from securities report.

FTSE Score Acquisition/Improvement Project Launched• Visualize issues assuming that they will be scored in the near future.
• Started considering countermeasures

HP/Sustainability page
done
done

Identification of ESG Materiality

Enhanced Disclosure of Human Capitaldone

Non-fossil certificate
acquisition started• Continuous discussion with consulting services to raise current score of 2.4• Since the rating is a relative evaluation, keeping an awareness of othercompanies in the same industry

GHG calculation/
certification/SCOPE 1-3

Formed Project TeamTime axis

2022

2023

2024

2025

Creation of Integrated Report• We plan to create an integrated report from the perspective of enhancing
information disclosure in order to promote management that involves more
stakeholders.

Copyright 2023 GMO Financial Gate, Inc.

34

5.8 Excellence in Corporate DisclosureAwarded “Awards for Excellence in Corporate Disclosure” which is chosen by securities
analysts for emerging markets. We will commit to continuous dialogue with capital markets at
the management level

Message Video: https://www.saa.or.jp/standards/disclosure/selectiont

Copyright 2023 GMO Financial Gate, Inc.

Source: Weekly Toyo Keizai, November 4, 2023,
article advertisement by the Securities Analysts Association of Japan35

Supplemental Information
Financials, Investment /Shareholder Returns

6
Copyright 2023 GMO Financial Gate, Inc.

6.1 Profit & Loss
Gross profit margin declined due to changes in revenue composition
Increased investment but a decrease in SG&A ratio which led to only a slight decrease inoperating margin(Unit：Thousand yen)

FY2022
actualFY2023
actualYoY

Revenue

10,295,454

15,909,069+54.5%

COGS

7,527,314

12,003,608+59.5%

Gross profit

2,768,140

3,905,460+41.1%

SG&A

2,027,612

2,785,136+37.4%

Operating profit

740,527

1,120,324+51.3%

Ordinary profit

745,831

1,114,159+49.4%

Profit attributable to ownersof parent

472,523

746,433+58.0%

Copyright 2023 GMO Financial Gate, Inc.

37

6.2 Revenue by business model (Quarterly)
Initial posted a record high quarterly revenue by a large margin thanks to the development oflarge franchised stores. Each recurring-model also grew, and spreads, which had lagged
behind, continued to recover.
（Unit :
millions of yen）

Q1
FY2021Q2
FY2021Q3
FY2021Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY2023Q2
FY2023Q3
FY2023Q4
FY2023

Initial

855

1,103

1,525

1,682

1,454

1,643

2,136

1,927

2,220

2,905

3,461

2,529

Stock-model

430

427

495

569

686

683

841

921

1,047

1,091

1,277

1,375

Stock

135

145

160

182

185

206

229

244

259

283

334

366

Fee

101

99

149

183

261

259

361

434

519

539

643

693

Spread

193

181

185

203

239

217

250

242

268

268

299

315

Total

1,286

1,531

2,020

2,252

2,141

2,327

2,978

2,849

3,267

3,997

4,738

3,905

Copyright 2023 GMO Financial Gate, Inc.

38

6.3 Changes in Revenue Composition and Changes in Gross Profit Margin
Although it was on a downward trend due to changes in the revenue composition, it isgradually bottoming out. In 3Q, initial revenue increased, but there were many profitableconsumables revenue, and the gross profit margin improved QoQ
Decrease in gross profit rate due to increase in initial revenue and stera composition ratio in initial

Initial

18.0%
7.6%
11.2%

46.6%

17.0%
6.6%

Stock

15.9%

Fee

20.9%
9.3%

16.4%

15.0%

7.9%

10.2%

11.1%

SpreadGross profit margin

11.9%
6.5%
9.5%

9.2%

9.0%

7.4%

8.2%

7.9%

8.1%

11.2%
12.2%
8.7%

10.6%

9.4%

8.4%

8.5%

8.2%

11.1%

12.1%

15.3%

15.9%

8.9%

7.7%

8.6%

7.9%

67.7%

67.9%

6.3%

13.5%

13.6%

7.1%

7.1%

8.1%
17.8%
9.4%

15.4%

37.4%

36.3%

33.5%
75.5%

65.3%

74.7%

70.6%

67.9%

57.5%

72.1%

54.4%

28.2%

26.1%

22.8%

24.3%

Decrease in composition
ratio of initials

FY2020
2Q

71.8%

66.5%

26.1%

FY2020
1Q

6.7%

43.6%
47.7%

63.3%

Gross profit margin fluctuates around 25% depending on revenue composition

FY20203Q

FY20204Q

FY2021
1Q

FY2021
2Q

FY2021
3Q

FY20214Q

FY2022
1Q

FY2022
2Q

Copyright 2023 GMO Financial Gate, Inc.

29.3%

25.8%

Concentrated sales of highly
profitable consumables

FY2022
3Q

FY20224Q

FY2023
1Q

72.7%

22.6%

73.0%

64.8%

24.4% 25.7%

Sales of highly profitable Decrease in composition
consumables increased
ratio of initials

FY20232Q

FY2023
3Q

FY20234Q

39

6.4 Balance sheet
Inventory levels declined as shipments progressed, but maintained a level capable of meetingstrong demand. Refinancing with an eye on interest rate trends and ensuring liquidity on
hand.
◼ NoteEnd of Q4 FY2023（Thousands of yen）
Current liabilities

Cash and cash equivalents(43.4%)

2,604,857

Merchandise: 2.39 bn
Decreased 0.33bn from 3Q
No problems with stock up

4,015,682
Non-current liabilities

1,541,587

Current liabilities: 2.60 bn
0.49bn increase from 3Q due to accrued bonus allowance

Total net assets(55.2%)

Non-current liabilities: 1.54 bn
No significant change

Merchandise (Payment terminal)

2,396,179
Other current assets

1,093,347

5,115,795

Non-current assets

1,757,031
Asset

Total liabilities
and net assets

Cash and cash equivalents: 4.01 bn
1.23bn increase from 3Q due to decrease in merchandise,collection of accounts receivables

Copyright 2023 GMO Financial Gate, Inc.

40

6.5 Balance sheet (Quarterly)
Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY2023Q2
FY2023Q3
FY2023Q4
FY2023

QoQ

YoY

Cash and cash
equivalents

3,434

1,425

1,618

2,231

2,519

1,720

2,190

2,779

4,015

+1,235+1,496Merchandise

1,615

2,177

2,523

1,545

1,507

2,511

3,131

2,733

2,396

-337

+889

Others

741

868

1,007

884

990

1,527

1,520

1,412

1,093

-318

+103

Non-current assets

1,347

1,409

1,445

1,497

1,622

1,567

1,651

1,692

1,757

+64

+135

Total assets

7,136

5,879

6,593

6,157

6,638

7,326

8,493

8,617

9,262

+644

+2,624Current liabilities

2,720

1,538

2,135

1,575

1,929

2,801

3,221

2,114

2,604

+490

+676

Non-current liabilities

40

37

33

30

39

39

540

1,540

1,541

+0

+1,503

Net Asset

4,376

4,304

4,425

4,552

4,671

4,485

4,732

4,962

5,115

+153

+445

Total liabilities and net assets

7,136

5,879

6,593

6,157

6,638

7,326

8,493

8,617

9,262

+644

+2,624（Unit : millions of yen）

Current
assetsAsset

Liabilities

Copyright 2023 GMO Financial Gate, Inc.

41

6.6 Consolidated KPIs（Number of Active Terminal）
Steady increase in the number of active terminals driven by manned terminals.
Steady expansion of unmanned terminals in response to the trend toward self-service andlabor-saving.
（Unit:
thousand）

FY2021Q1

FY2021Q2

FY2021Q3

FY2021Q4

FY2022Q1

FY2022Q2

FY2022Q3

FY2022Q4FY2023Q1

FY2023Q2

FY2023Q3

FY2023Q4Manned

39.5

48.4

61.6

75.2

88.3

101.3

118.7

132.7

149.4

162.7

199.5

222.2

30.0

31.8

33.9

40.1

42.4

44.2

45.8

47.6

49.5

52.3

54.1

57.1

Sold by others

18.8

18.8

19.0

18.6

19.2

18.9

19.2

19.1

19.1

18.8

19.5

19.3

Total

88.4

99.1

114.7

134.0

150.0

164.5

183.7

199.5

218.1

233.9

273.2

298.8

Unmanned(IoT)

Copyright 2023 GMO Financial Gate, Inc.

QoQ
(%)

YoY
(%)

+22.6

+89.4

(+11.4％)(+67.4％)

+2.9

+9.4

(+5.5％)(+19.9％)

-0.1

+0.2

(-0.8％)(+1.5％)

+25.5

+99.2

(+9.3％)(+49.8％)42

6.7 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
FY2021 (Actual)

Percentage of GMV progress against initial plan
FY2021

FY2022

FY2023Plan
Result0.9trillion yen
1.1trillion yen

25.9%
1Q

29.2%

FY2022 (Actual)

25.0%

Plan
Result

52.1%
2Q

57.9%

1.8trillion yen
2.5trillion yen

50.5%

FY2023 (Actual)
87.0%
3Q

Plan
Result

94.8%
79.9%

Excess overinitial plan

FY2024 (In process)129.4%
4Q

136.7%

Plan
5～6trillion yen
One year ahead of target for FY2025

112.1%

0%

20%

40%

60%

80%

3.7trillion yen
4.1trillion yen

100%

120%

140%

160%

Copyright 2023 GMO Financial Gate, Inc.

43

6.8 Revenue growth rate in 1st Half & 2nd Half
Due to the initial delivery timing of terminals for initial revenue, there is a difference in thegrowth rate between first half and the second half.
Revenue growth of over 20% is expected for the full year
Revenue balance between 1H and 2H (FY2023 vs FY2024)（Unit：millions of yen）

FY2023 (actual)

25,000

FY2024 (Plan)
YoY+20.7％

20,00015,000

YoY+26.7％

YoY+15.6％

10,00019,20015,909

5,000

9,208
7,264

9,991

8,644

0
1H

2H

Copyright 2023 GMO Financial Gate, Inc.

Full year44

6.9 Capital Allocation Policy
Aim to achieve continuous business growth in accordance with the investment funding policy andcapital allocation policy
Investment Source Funding Policy⚫

Priority of investment resources
Interest-bearing debt, (3) Equity

Capital Allocation Policy(1) Operating cash flow, (2)⚫

Priority will be given to business investment and growthinvestment in accordance with our business strategy, while atthe same time, we will continue to provide a certain level ofshareholder returns.

Business Investment(1) Operating Cash Flow
Leverage operating CF from continuous profit growthBusiness investment to implement market share expansion strategy(2) Favorable sub liabilities, etc.
Flexibly consider the use of interest-bearing debt in accordance with ourinvestment policy based on our financial condition, market environment, andinterest rate levels

Growth Investments
Strategic investments in preparation for profit margin increase strategy(3) Equity
We will make a comprehensive evaluation of the stock price level, market
environment, financial condition, and other factors. and financial conditions,etc., and consider capital procurement to realize continuous business growththrough investment. Consider capital procurement to achieve sustainablebusiness growth through investment based on a comprehensive assessmentof stock price levels, market environment, financial conditions, etc.

Shareholder Returns
Stable and continuous dividend payments while securing internal reserves forbusiness and growth investments to support continuous business growth

Copyright 2023 GMO Financial Gate, Inc.

45

6.10 Investment Policy
Proactive business investment to execute "market share expansion strategy" necessary for medium tolong-term operating profit growth of +25% YoY
Growth investment

Business investment
・Investments in data centers, terminal development, and internal
systems
Main
Investment
TargetBasic
Investment
Policy・Investment in human resources (organizational enhancement, hiring,
performance-linked compensation, etc.)
・Development investment for IoT (mobility), touch settlement intransportation systems (trains, buses, etc.), and labor-saving/selfsupport

・In principle, business investments are made within the budgetedframework based on the assumption that the profit plan will beachieved, and additional investments are made according to theprogress of actual performance.

・Support for cashless transactions in the area of small and medium-sized
merchants
・New business related to money services/payment
・Data service/marketing support business・Building alliances (business alliances, capital tie-ups, etc.)

・Careful verification of business profitability and growth potential
・Start lean and small
・Expand investment limits in phases where return on investment is
expected

Copyright 2023 GMO Financial Gate, Inc.

46

6.11 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 medium tolong term through continuous business growth
To increase net income attributable to shareholders throughbusiness growth in revenue (CAGR 25%) and operating
profit (+25% YoY or more) . Increase net income attributable
to shareholders through business growth・Stable and continuous dividend payments
Aim for shareholder returns of 50% or more while
ensuring capital needs and internal reserves to support
business growth (currently in place).

Copyright 2023 GMO Financial Gate, Inc.

47

Supplemental Information
ESG Initiatives (Details)

7
Copyright 2023 GMO Financial Gate, Inc.

7.1 (Reposted) Expanding ESG Initiatives
Strengthening ESG related disclosure for aiming future step up to the Prime market of Tokyo stock
exchange. We are also in the process of improving corporate governance structure and human capital
disclosure
To Do’s

ESG Initiative Roadmap
Corporate value

MSCI ESG Rating Acquisition / Launch of Project Team

Present
Compilation ofIntegrated Report
Score to be acquired after FY2026/9

FTSE Score Acquisition/Improvement Project Launched
Enhanced disclosureof human capital

Project Launched

Identification of
ESG materiality

Dec. Disclosure of Earned
ReportingWebsite disclosure by
mid-December

MSCI Score Acquisition/Improvement Project Launched

done
done

Skill matrix creation

CDP first response

In an effort to improve thescoreIn discussion withoutside consultants

done

IPO

2020

Voluntary disclosureof ESG initiatives

2021• Consideration of the meaning, purpose, and issues of our promotion of ESG• Board of Directors will plan to pass a resolution and which will be disclosed on
the company website, securities report• Visualize data related to human resources, which we consider to be the mostimportant management resource.
• 2023/9 Assuming enhanced disclosure from securities report.

FTSE Score Acquisition/Improvement Project Launched• Visualize issues assuming that they will be scored in the near future.
• Started considering countermeasures

HP/Sustainability page
done
done

Identification of ESG Materiality

Enhanced Disclosure of Human Capitaldone

Non-fossil certificate
acquisition started• Continuous discussion with consulting services to raise current score of 2.4• Since the rating is a relative evaluation, keeping an awareness of othercompanies in the same industry

GHG calculation/
certification/SCOPE 1-3

Formed Project TeamTime axis

2022

2023

2024

2025

Creation of Integrated Report• We plan to create an integrated report from the perspective of enhancing
information disclosure in order to promote management that involves more
stakeholders.

Copyright 2023 GMO Financial Gate, Inc.

49

7.2 ESG Initiatives / Environment
In the provision of our payment platform, we promote business operations that consider environmental
impactSpecific Efforts

Environment Related Data
Our Supply Chain⚫
⚫

Provide electronic storage services for sales slips to reduce
the number of receipts (paper rolls)⚫

Use of environmentally friendly materials for payment
terminal components⚫

Reuse of payment terminals returned by merchants as
replacement terminals (refurbished terminals) in the event ofmalfunctions, etc.

SCOPE 3downstream

GMO-FG

upstream

Recycled paper is used for receipts (paper rolls) used ateach payment terminal.

SCOPE 1SCOPE 2

Procurement, Manufacturing and
FuelElectricity use
Distribution
Combustion
payment
terminal

Sales ofroll paper-

SCOPE 3Use and disposal

Office,Settleme
Payment
nt Centers
Terminal Use

Payment
terminal
Disposal

FY2022

FY2023SCOPE 1 (t-CO2)0

TBA

SCOPE 2 (t-CO2)

105

TBA

231,210TBA

Supply chain CO₂ emissions

Electricity consumption for SCOPE 1
and 2 (kwh)(Reference) Data on SCOPE 3 is being collected for future disclosure in cooperation withpayment terminal manufacturers, etc.
* The subject companies are GMO Financial Gate, GMO Card Systems, and GMO Data, a consolidated group ofcompanies.

* Data for SCOPE 1 and 2 will be verified by a third-party verification organization in the future.

Copyright 2023 GMO Financial Gate, Inc.

50

7.3 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*Employees are referred to as partners
Initiatives⚫

Social Related Data

Human Resource Development and Welfare System•

Career design system ： System to provide advice and support on careerdevelopment•

360-degree multidimensional evaluation system ： A system that allows
partners to evaluate their supervisors without a name.

•⚫

Countermeasures to the falling birthrate ： Financial benefits and special
exceptions for work at various stages of marriage, childcare, etc.

Work-style reform•

Promote a telework work system that takes into consideration the safety of
executives and employees•

Promotion of maternity and paternity leave•

Encouraging shorter working hours for childcare

FY2022

FY2023

124

148(Breakdown) Number of employee partners

96

108

(Breakdown) Number of temporary partners

28

40

Percentage of women among employee partners

22.8

32.4

Percentage of women in management partners

14.3

13.6

Average years of service

3y 7m

3y 10mAverage age

40

40

Turnover rate

9.5

4.6

Number of Partners**Number of partners" covers the consolidated corporate group GMO Financial Gate, GMO Card Systems, and GMO•

Providing post-retirement reemployment opportunities•

Providing an hourly annual leave system, etc.

⚫

Employment of the Disabled•

Inclusivity of diverse employees, creating a better workplace

Data.
*Number of partners" is the total number of regular employees, rehired employees, contract employees, and seconded
employees (excluding employees seconded from our group to outside the group, but including employees seconded
from outside the group to our group) as of the end of FY2022.
*Number of temporary partners" is the average total number of part-timers and temporary employees during the pastyear.
* Figures for "Ratio of women among employee partners" and "Ratio of women among management partners" are for"employee partners.
* Average years of service, average age, and turnover rate are non-consolidated figures for GMO Financial Gate.

Copyright 2023 GMO Financial Gate, Inc.

51

7.4 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, a fair, transparent, and efficientbusiness execution structure
Specific Efforts•

Governance Related Data

Establishment of a new management committee for agile
management decision making

Outside Directors/Female Directors

FY2022

FY20237

7

2(28.6%)
1(14.3%)

2(28.6%)
1(14.3%)

Number of directors
Number of independent outside directors (%)
Number of female directors (%)*Number and percentage of directors expected to be in office as of 12/14/2023

Attendance rate at Board of Directors Meetings (FY2023)
Times Held

17 times

Held/
Percentage

Sugiyama

AoyamaFukuda

Tamai

Koide

Asayama

ShimamuraPresident andRepresentative
Director

Board Member

Board Member

Board Member

Board Member

17

17

17

14

17

17

17

100％

100％

100％

100％

100％

100％

100％

Times
Attendedattendancerate

Independent
Independent
Outside Director Outside Director*Directors in office as of the date of submission of this document (12/14/2023)*For directors appointed during the term, indicate the number and rate of attendance since their appointment.

Board of Statutory Auditors FY2023
Number of times
implemented

13

Number oftimes/percentage

Nagasawa

Ozawa

IinumaIndependent Outside
Corporate Auditor

Independent Outside
Corporate Auditor

AuditorTimes Attended

14

14

14

Attendance Rate

100％

100％

100％

IR Activities

FY2022

FY2023Financial Results Briefing

44Number of 1-on-1 meetings
Group meetings sponsored by brokerage
firms

267

232

3

3

Copyright 2023 GMO Financial Gate, Inc.

52

7.5 ESG Initiatives / Board of Directors
Governance structure built around technology and financial background
Internal Director (Managing Director)
Kentaro Sugiyama ／President and Representative Director
Worked in the systems industry for 14 years with clients in thefinancial industry; joined GMO-FG in May 2017 after having worked
for GMO-PG since 2014; became President and Representative
Director in December

Akio Aoyama ／Director, General Manager of Solution Partner Division
Worked in the systems industry for 21 years with clients in thefinancial industry; joined GMO-FG in April 2018; became Director in
December 2018, responsible for Solution Partner Division; President
and Representative Director of GMO Data since August 2019

Tomonaga Fukuda ／Director, General Manager, IT Platform Division
18 years in the systems industry, working with clients in the financial
industry; joined GMO-FG in September 2019, appointed as Director
in December 2020, in charge of the IT Platform Division

Tomoki Tamai ／Director, General Manager, Corporate Support Division
Engaged in sales and corporate affairs at major banks and operatingcompanies; joined GMO-FG in August 2021; appointed Director in
December 2022; in charge of Corporate Support Division

Director concurrently serving as GMO-PG
Tatsuya Koide ／ Director
35 years in the systems industry, working with clients in the public
and manufacturing industries Joined GMO-PG in September 2021,
also serving as Director of GMO-FG Appointed Senior Executive
Officer of GMO-PG in December 2021

Independent External Director
Nao Shimamura ／ External Director
Engaged in legal practice in the legal industry for 15 years; appointed
as an outside director in September 2019 (appointed as an outside
director because he has the knowledge and experience to makedecisions on important management matters of the Company and tosupervise the execution of business operations in an accurate andfair manner).

Rie Asayama ／ External Director
Engaged in finance-related business for 36 years at a major banking
group; appointed outside director in December 2021 (appointed as
outside director because of her experience in promoting diversity andas executive vice president of a general business company).
Definition of notation
GMO-FG: GMO Financial Gate, GMO-PG: GMO Payment Gateway

Copyright 2023 GMO Financial Gate, Inc.

53

7.6 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.
Identity

KentaroSugiyama

Akio
AoyamaTomonaga
FukudaTomoki
Tamai

Tatsuya
Koide

Nao
Shimamuraoutside thecompany

Independent
Directors andCorporate
Auditors

Rie
Asayamaoutside thecompany

Independent
Directors andCorporate
Auditors

Nagasawa
Takayoshi
outside thecompany

Independent
Directors andCorporate
Auditors

Ozawa Satoru

outside thecompany

IinumaTakashi

Independent
Directors andCorporate
Auditors

Job title

President andRepresentative Director

Director and General
Manager of Solution
Partner Division

Director and General Manager,
IT Platform Division

Director and General
Manager, Corporate
Support Division

Director

External Board Member

External Board Member

Managing Auditor

Auditor

Auditor

Practicing GMO-ism

●

●

●

●

●

●

●

●

●

●

Corporate management

●

●

●

System Security●

Risk management●

Legal & Governance
Finance, Accounting & Tax
Sales and Marketing
Investment (M&A)

●
●
●

●

●
●

ESG & Sustainability

●
●

●
●

●
●

●
●
●

Financial Business
Human Resource
Development andRecruitment, Diversity

●

●
●

●

●
●

* GMO-ism is the collective name for the company motto and company precepts that express the "Spirit Venture Declaration" and "55-Year Plan," the unchanging goals of the GMO Internet Group, as well as "Executive
Principles" and "Laws of Victory.
* Describes directors in office as of March 31, 2023.

Copyright 2023 GMO Financial Gate, Inc.

54

Supplemental Agenda
Appendix

8
Copyright 2023 GMO Financial Gate, Inc.

GMO-FG Business Domain

Business Model

GMO-FG is focusing on offline payment（リアル店舗決済 ＋ IoT決済）

Company nameBusiness
Domain

GMO Financial Gate
(Payment at Brick & Mortar + IoT)

GMO Payment Gateway(EC)

Payment by passing card/QR codeover the reader

Payment by entering credit card
information in PC / mobile phone

Payment terminal

EC (terminal is unnecessary)

Payment
methodMedium• Physical hardware network• Proprietary programming code specifications• Regulation

Copyright 2023 GMO Financial Gate, Inc.

56

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

１Q

２Q

３Q

４Q

Time

１Q

１Q

２Q

３Q

４Q

Initial Revenue（Terminal Sales・Software Development）

Initial Revenue（Initial Set up Fee, etc…）

Stock, Fee, Spread Revenue

Stock, Fee, Spread Revenue

Copyright 2023 GMO Financial Gate, Inc.

１Q

Time

57

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

Various
Payment
Methods

Terminals

1
Payment
Terminal

Various Payment
Methods

Acquirers

Terminal Sales
Business

Credit Card Issuer

Flow Revenue

Bank
Payment
Terminals

Payment Scene

2

RetailRestaurants

Service

Mobility

Payment
Processing

Payment Processing
Business

Payment
Processing

E-Money Vendors

Recurring Revenue

etc

Points Vendors
Purchase

IoT

Vending Machines/
Coffee Machines
Checkout Machines(Country Club/
Hotel)

3
Acquiring
Business

Comprehensive
Clearing

Clearing

QR Code Payment
Vendors

Recurring Revenue

Metered Parking
etc
EV Meter

Copyright 2023 GMO Financial Gate, Inc.

58

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

Flow Model Rev

3 Business

4 Types of Revenue%(FY2023)

Initial

69.9％

Stock

7.8％

Fee

15.1％

Spread7.2％① Terminal
Sales
Business② Payment
Processing
Business

Stock Model Rev③ Acquiring
Business

Copyright 2023 GMO Financial Gate, Inc.

59

Players in offline cashless payment setting

Business Model

Sales activity to merchants/Clearing of merchant transaction
offlinePayment Processing
CenterMerchants

Offline market
POS vendor

Terminal manufacturer
Domestic makerOverseas maker

Processing center (CCT)

Payment
Network

Domestic network

Acquirer

International network

Card company
Bank etc

Legacy POS
Mobile POS

Vending machine manufacturers /Self checkout register manufacturers

Financial
Institutions

Payment Brand

ASP center (POS)
E-money center

Code payment gateway

Int’l card brandE-money
Domestic code payment
Foreign code payment

Acquiring Partner
Mobile POS

Our monetization points
Initial Revenue
Stock Revenue※Activation of payment terminals～Connect to our processing center

Alliance partner

Fee Revenue※Booked in stock revenue occasionally depending on contract type※Excluding roll paper sales

Copyright 2023 GMO Financial Gate, Inc.

Spread Revenue

60

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., established by the JCCA. A single card company
owns the terminal on behalf of another card company and lends it to a merchant for installation. Multiple card companies
jointly use the terminals and pay usage fees to the card companies that installed themMerchants
From the installing cardcompany Loaned/provided
terminals

CCT rental and provision

Installed card company
Owns the terminals andbear the associated costs

Agreement
Terminal Application
DLL Information※
Information Processing

Merchant
Information
Terminal usage
Usage Fee Settlement
fee(Settlement)
Data Provision
Japan Credit Cards
Association(JCCA)

Agreement

Center(CCT Center)
GMO-FG, INFOX, etc.

DLL Information

Carpooling Card Company A

Merchant information sharing

Carpooling Card Company B

Terminal usage fee (payment)

Carpooling Card Company C※DLL (down line loading) information
Information used to link the terminal identification number to the merchant number.
In CCT, the terminal identification number is issued by the card company that installed the terminal identification number.

Copyright 2023 GMO Financial Gate, Inc.

Pay usage fees to installed credit cardcompanies according to terminal usage
according to the use of the terminal

61

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 is customarily used torefer to all terminals capable of processing credit card transactions that are not CCT terminals. In a merchant POS, themerchant itself owns the terminal, prepares the card payment environment, and makes a separate contract with the credit
card company. While this requires more time and effort on the part of the merchant, it also allows for a more flexible designthat is not bound by the JCCA (Japan Credit Card Association) guidelines
Merchants
Own terminal

Agreement

Merchants pay roll paper cost andelectronic receipt storage cost

Japan Credit Cards
Association(JCCA)

Contracted
credit cardcompany A

DLL Information※

Agreement
Information Processing Center(merchant POS centers)
GMO-FG, INFOX, etc.

Agreement
Contracted
credit cardcompany C

Contracted
credit cardcompany B※ DLL (down line loading) information
Information used to link the terminal identification number to the merchant number.
In merchant POS, the terminal identification number is issued by the merchant.

Copyright 2023 GMO Financial Gate, Inc.

62

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
SpreadLinking with the growth of
TAM / membership merchants

Fee

Stoc-model
revenue before N-1

Stock
Q1
1Q

Q2
2Q

Q3
3Q

NN期

Q4
4Q

Q1
1Q

Q2
2Q

Q3
3Q

N+1
N+1期

Q4
4Q

Q1
1Q

Q2
2Q

Q3
3Q

Linking with the number ofaffiliated merchants

Q4
4Q

N+2
N+2期

Stock
N-1期（ストック）Fee
N-1期（フィー）SpreadN-1期（スプレッド）

N期（ストック）
Stock

N期（フィー）Fee

N期（スプレッド）SpreadStock
N+1期（ストック）

Fee
N+1期（フィー）SpreadN+1期（スプレッド）

Copyright 2023 GMO Financial Gate, Inc.

63

Difference between the number of terminals sold and the number of active terminals

Business Model

Initial revenue = Number of terminals sold × Average selling price per terminal + Accessory sales + Development sales
Number of active terminals = Number of terminals that have processed payment at least once in the quarter
Image of quarterly balance in“Terminals sold" and "new active terminals”

Time lag between terminal sales and activation
Terminal sales(Initial Revenue)

Start of activation(Recognition of recurring-model revenue begins)Start ofactivation

Terminal A

There is a time lag between the time of terminal sales and the time of activation.
The time lag varies depending on the contract, terminal model, and other factors.

N+2months

New active terminals : disclosed⇒Unrelated to average terminal selling price

Recurring-model revenue

Start ofactivation

Terminal C
N+1month

Number of units sold : notdisclosed⇒Needed for average terminal
unit price calculation

Recurring-model revenue

Start ofactivation

Terminal B
N

Depending on the timing of projects,
there are quarters in which thenumber of active terminals exceeds
the number of terminals sold.

Number of terminals soldNumber of new active terminals

Recurring-model
revenueN+over six months

・Even if a company sells terminals, it will not generate recurring revenue unless the terminals are in
operation. We place importance on the number of active terminals, which is the source of recurring
revenue, and disclose it as a KPI.
・Initial sales ÷ increase in the number of active terminals" ≠ average unit price per terminal

Randomquarter

Randomquarter

Randomquarter

Randomquarter

Randomquarter

Randomquarter

Randomquarter

Randomquarter・Sales and capacity utilization both rise and fall each quarter, depending on the project, and are
not completely linked.
・However, there are also quarters in which "utilization > sales" due to simultaneous utilization oflarge projects, etc.
・However, there are also quarters when "utilization exceeds sales" due to large projects going
into operation simultaneously, etc.

Copyright 2023 GMO Financial Gate, Inc.

64

Details on each revenue ①

Business Model

InitialContent

Payment terminal
sales

Revenue from Payment terminals purchased from terminal manufacturers, and then confirm
certain measures of payment methods that each merchant needs to accept.

Softwaredevelopment

Software development that meets customers needs such as widening acceptable payment
measures and adding point-payment functionality

Stock

Content
It is a service that provides merchants with their daily sales data that go through ourprocessing center. We charge it as monthly fixed fee

Points＆QR

It is a service to add point/QR payment app to the terminals merchants have. We charge it asmonthly fixed fee

Mobile SIM
New Digitalization
Assistance
Processing(Monthly fixed fee
model)• Terminal Selling Price × Units Sold
✓ More than 10 types of terminals✓ Price range is from about ¥30K up to ¥100K• No. of Deals × Ordered value

Data sharing

Rental(Mobile terminal)

Rev Model✓ Since software development is tailor made typerevenue, deal size and margin vary from time totime

Rev Model• No. of contracts × Service Price
It is a service to rent mobile type terminals that enable merchants to use them in wirelesssetting. We charge it as monthly fixed fee✓ Service price is around ¥500 to ¥1K
per terminal per month

It is a SIM card fee to use mobile type terminals. We charge it as monthly fixed fee
Revenue from settlement data transferred to merchants, registration changes, assistancewhich leads to back office support for clients

It is a processing fee based on monthly fixed rate
*Basically, it is defined as “Fee” revenue when it comes to the case we charge as Pay As You Go billing, not fixed rate

• No. of contracts × Monthly
Fixed Fee
✓ Monthly fixed fee will varydepending on the size of contract
etc..

Generally, the economics of services above vary depend on merchants. And there are services that some merchants do not apply
Copyright 2023 GMO Financial Gate, Inc.

65

Details on each revenue ②

Business Model

Fee

Content

Processing

It is a fee we charge toward monthly transaction volume based on the rate per transaction

Sales ofroll paper

This is a sales of roll paper that is used with payment terminals at stores

Rev Model• TRX Volume× Processing Fee

Electronic storageof sales receipts✓ Processing fee is about ¥2 to ¥3 pertransaction• No. of Order × Price of Roll Paper

Optional service to store vouchers electronically, sales to be billed based on the number ofpayment transactions subject to the contract✓ The price range of roll paper is about ¥130 to¥200.

• Number of settlement
processes subject to contract x
unit processing fee✓ Unit processing fee is about ¥1 per transaction

SpreadAcquiring（Settlement agent）

content
We charge spread fee (α) towards clearing amount to merchants
We received indicator rate (N) from acquirers, then we acquire merchants instead ofacquirers with the new rate (N+α＝merchant fee)

Copyright 2023 GMO Financial Gate, Inc.

Rev Model

GMV of Agent Contract
×
Spread fee we charge (about 0.3～0.4%)

66

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 price of fee◼ Fee ARPU（Fee revenue divided by Transaction volume）

6.00

Low
5.50

4.92
5.00

4.94

4.71

4.03
3.87

3.78

4.12

3.74

3.59

High

4.90

③
②
①

4.39

4.50

4.00

5.00

Image of linkage ratio to the number oftransaction volume

Electronic voucher storage fee

Growing trend of subscriptions

Roll paper sales
Processing fee
Number of transaction volume

3.50*Length is an image and does not reflect actual numbers or scale

3.00
FY2021
1Q

FY2021
2Q

FY2021
3Q

FY20214Q

FY2022
1Q

FY20222Q

FY2022
3Q

FY20224Q

FY2023
1Q

FY20232Q

FY2023
3Q

FY20234Q

Copyright 2023 GMO Financial Gate, Inc.

67

ビジネスモデル
Number of Employees(Consolidated basis)
Plans a net increase of 15 to 20 employees per fiscal year to achieve themanagement benchmarks. Assumed composition of work force isapproximately 40% sales, 40% systems, and 20% administration

Plan to hire 15-20 people (consolidated basis) each fiscal year
Planned
Sales
SystemSales：can build alliances andpromoteTalents who solutions to merchants'
issues.

Administration

108
96

System：Talents who can promote strategies
to leverage digital technologies.

81
58

Administration：
Talents who can promote theestablishment of an advanced
management system in line withbusiness expansion.
FY2020A
20/9期末FY2021A
21/9期末FY2022A
22/9期末FY2023A
23/9期末FY2024E
24/9期末Copyright 2023 GMO Financial Gate, Inc.

FY2025E
30/9期末68

Concept of Spread revenue ratio to GMVBusiness 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 Spreadrevenue tends to decline
1①Direct contract

InitialMainly large merchants

The merchant discount rate (aka MDR) is deducted fromthe sales clearing. Remittance of sales amount without
MDR from acquirers to merchants is taken place.

Merchants

Stock

Acquirers

Use ofterminals

2②Agent contract

Enjoyable revenue

Directly acquiring

Fee

Payment processing

Acquiring

Offer a reimbursement rate

Mainly small medium merchants

Our
Spread revenue (B)Settlement of the amount(A-B) after deduction of
our agent fee

InitialStock

Remittance of sales
amount(A) after
deduction of the“reimbursement rate”

Fee

SpreadMerchants

Acquirers
Use ofterminals

Payment processing
Copyright 2023 GMO Financial Gate, Inc.

69

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/demandof merchants
Terminals we are offering

Merchants（Acquisition opportunity image of Stock revenue）
Stock Revenue
Non-Stock Revenue

Floor-Standing Model

Mobile Modelmerchant B
merchant A

Embedded Model

POS Model

merchant C

The status of subscriptions to paid services that
contribute to recurring revenue varies depending on
the type of merchants and terminals

merchant D
merchant F
merchant E
Copyright 2023 GMO Financial Gate, Inc.

70

Monetization by Payment Method

Business Model

We operate different business models according to payment method as a cashless platformer. Growthin each payment method contributes to our growth as well
Flow model revenue① Initial

Recurring model revenue➁ Stock③ Fee④ Spread

Credit・China Union Pay・J-debit＊
E-money＊

QR code

＊
Point

＊

House point・House E-money＊
Duty exemptionーーー*There is no "processing fee" that constitutes Fee revenue because the transaction is
not processed at our processing center, but the paper rolls consumed inconjunction with the transaction contribute to the increase of Fee revenue.

Copyright 2023 GMO Financial Gate, Inc.

71

Revenue Model by Merchant SizeBusiness 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◼ Revenue model related to the size of merchant◼ Four types of revenue model① Initial

Terminal sales, Softwaredevelopment, Initial registration
fee, etc…

➁ Stock

Monthly recurring revenue,
communication fee of terminals, etc…

③ Fee

Processing revenue related to TRX
volume, Receipt paper sales, etc…

④ Spread

Commission fee based on TRX value

①

①

①

Large

➁

③

Medium

➁

③

Small

➁

③

④

④

④
：Main revenue stream

Copyright 2023 GMO Financial Gate, Inc.

：Realization of therevenue varies fromcontract to contract72

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

CreditJ-debitE-moneyHouse points

QR codeDuty exemption

Common Points

Terminals we offer

Floor-Standing Model

Mobile Model

Embedded Model

POS Model

Cashless Platform

Copyright 2023 GMO Financial Gate, Inc.

73

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
N月

N+1
N+1月

N+2
N+2月

N+3
N+3月

N+4
N+4月

N+5
N+5月

◼ Merchant B（Miyagi）Monthly TRX trend
TRX Volume

Consumer（Successful experience⇒change in payment method）

TRX Value

Merchant
N
N月

N+1
N+1月

N+2
N+2月

Recognize convenience

N+3
N+3月

N+4
N+4月

TRX volume/value
per terminal will increase◼ Merchant C（Wakayama）Monthly TRX trend
TRX Volume

TRX Value

Recurring-Model revenue
will increase
N

N月

N+1

N+1月

N+2

N+2月

N+3

N+3月

N+4

N+4月

Copyright 2023 GMO Financial Gate, Inc.

74

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
Private sector final
consumption expenditure in
Japan (includes cash
payments)◼ Potential market value of IoT/Unattended
Potential market size for
IoT/Unattended (our prediction)¥296 trillion*2(2022)* Due to the spread of coronavirus infection
Dropped to the same level as during the Lehman shock¥30 trillion*3(2020)¥128 trillion*1(2025)¥0.5
trillion¥89 trillion*1(2022)GMO Financial Gate Transaction value
in IoT/Unattended business¥4.1
trillion

Market foroffline cashless (face-to- face)payments

GMO Financial Gate TRX value(FY2023 Actual)◼ One of the measures to achieve a leap in operating income:Expand IoT/Unattended business driven by contactless payment(touch payment) and unattended registers(*1) Based on "Trends in the Breakdown of Cashless Payment Amounts and Ratios (2010-2022)" by the Ministry of Economy, Trade and Industry and "Actual Conditions and Future Forecasts of the Domestic Cashless Payment Market in 2022" by Yano Research Institute Ltd.
(*2) Excerpted from "Composition of Final Consumption Expenditures by Household Type" in "FY2020 National Accounts" by the Cabinet Office.
(*3) Based on the "Breakdown of Domestic Household Final Consumption Expenditure" by the Cabinet Office, Japan Vending Machine Manufacturers Association, and Japan Parking Business Association's "Survey on the Coin-operated (pay-by-the-hour) Automobile Parking
Market," etc. The potential market size of unattended parking facilities is calculated based on the market size of buses/rail ways, hotels/inns, amusement, vending machines, and parking lots/EVs, which are the areas where IoT/Unattended is expected to grow in the future.

Copyright 2023 GMO Financial Gate, Inc.

75

Growth trend of domestic offline cashless market

Market Environment

The market for offline cashless payments is currently ¥89 trillion, four times larger than the
online market. Cashless penetration is expected to rise driven by government-led cashlesspolicies(Unit : trillion yen)
Offline cashless market size (Left axsis)

Cashless penetration rate (Right axsis)

Online cashless market size (Left axsis)

80%

80％

140
127.7

70%

Long-term

116.3

120

60%

105.7
100

88.3

80

50%

74.3

40％

36.0%

66.5

40%

32.5%

60

30%
29.7%

40

20

20%
19.3

20.7

22.7

23.0

24.3

25.7
10%

0

0%
2020(actual)2021(actual)2022(actual)2023(Estimate)2024(Estimate)2025(Estimate)

Source: Cashless Roadmap 2023, PAYMENTS JAPAN; Yano Research Institute Ltd.

Copyright 2023 GMO Financial Gate, Inc.

76

Composition Ratio of Domestic Cashless Payment Methods

Market Environment

Even in an environment of significant growth in the proportion of QR codes, transaction value andvolume of credit continue to growTransaction Value
Composition

Transaction Volume
2019

2020

2021

2022

Credit

89.7%

86.8%

85.3%

84.5％

Debit

2.1%

2.5%

2.8%

E-money

7.0%

7.0%

QR code

1.2%

3.7%

2019

2020

2021

2022

Credit

60.7%

58.2%

55.3%

53.7%

2.9%

Debit

1.8%

2.2%

2.5%

2.5%

6.3%

5.5%

E-money

33.1%

27.1%

22.8%

19.9%

5.6%

7.1%

QR code

4.3%

12.4%

19.4%

23.9%

(Unit : trillion yen)

(Unit : 100 million)

Transaction value(absolute value)

120

CreditDebit

E-money

QR code100

80Composition

1.0
5.8
1.7

3.2
6.0
2.2

5.3
6.0
2.7

350
7.9
6.1
3.2

Transaction volume(absolute value)
Credit

Debit

70.4
49.0

200

73.4

74.5

QR code

250
8.2

27.2

60

40

E-money

300

81.0

93.8

150
100

20

50

62.3
3.8

59.2
5.3

58.8
57.4

7.7

6.5

114.2

127.0

139.4

2019

2020

2021

158.5

0

0
2019

2020

2021

2022

2022

Source: Cashless Roadmap 2022, Cabinet Office of Japan

Copyright 2023 GMO Financial Gate, Inc.

77

IoT/Unattended Market GrowthMarket Environment

The number of terminals is expected to be equal to or greater than the market for payment terminals inreal stores. Unattended market (= general term for vending/service machine market) is expected to
expand further due to changes in the external environment such as a decrease in the working
population◼ No of active IoT terminals
Net increase pace in 4Q was (+2,900 units) in QoQ andsales were strong. Sales are piling up every quarter.
Aiming for further acceleration in the future

4.5 million◼ Push factors associated with changes in theexternal environment• Declining workforce• Labor-saving support

Unattended

Goods/
commodities

Tickets

Beverages/
sweet treats

MarketSelf-checkoutmachine(Golf/Hotel)

57.1• Obtaining inbound demand

40.1• Retailers moving into offices• Revision of the Pro-Sales Act

26.9• COVID-19
CoffeeMetered parking/
EV chargers

Self-checkout
registerCoin-operated
washing
machines

Market28.8 30.0

31.8

42.4

44.2

45.8

47.6

49.5

33.9

23.5

16.0

Q1
FY2020

Offline52.3（Unit : 1,000）

54.1

Q3
FY2020Q1
FY2021Q3
FY2021Q1
FY2022Q3
FY2022Q1
FY2023Q3
FY20234 million
Source: The Japan Vending System Manufacturers Association, Japan Ministry of Health Labor and Welfare, Yano Research Institute Ltd.

Copyright 2023 GMO Financial Gate, Inc.

78

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 : 10K）

Aggressively cultivate merchants in related industries in
preparation for recovery of inbound demand

6,000
Government’s target
by 2030

6,000

5,000
September 2023
Cumulative total up to
the preliminary report

4,000
3,000

Drug store

3,000

1,000

CY2030CY2023

CY2022

CY2021

CY2020CY2019CY2017

CY20180

CY2016(medicine/cosmetics)

High-end retail/
Department
store

IoT
Vending machines/Selfcheckout machines

Service/
LeisureOne dollar
shopElectronics
chain-retailers

Medical /ClinicAchieved in 2018

2,000

CY2015

Hotel/Travel

Publictransportation(Train/bus etc.)

Number of visiting foreigners (Monthly)

700,000（Unit : 10K）
350

Hotel/Travel
Merchant B

September 2023:
2.18 million

300
250

600,000

Transaction volume
Transaction value(GMV)

500,000
400,000
300,000

200

23/9

23/8

23/7

23/6

23/5

23/4

23/3

23/2

23/1

22/12

22/11

22/9

22/8

22/7

22/6

22/5

22/4

22/3

22/2

22/1

22/10

23/7

23/4

23/1

22/10

22/7

22/4

22/1

21/10

21/7

21/4

21/1

20/10

20/7

20/4

20/1

19/10

19/7

19/4

19/1

0

21/12

0

21/11

50

21/9

100,000

21/10

100

21/8

200,000

21/7

150*Source "Number of Foreign Visitors to Japan," Japan National Tourism Organization (JNTO)

Copyright 2023 GMO Financial Gate, Inc.

79

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 Share Expansion Strategy⇒Provision of multiple payment terminals, accumulation ofsolution assets through Vertical deployment⚫ Operating profit growth of +25% every fiscal year (Operating
profit 1.5 billion in FY2025, GMV ¥5 trillion)

Value⚫ GMO Financial Gate pursues the value of existence⚫ Progressive, growth, profitability, immediacy, rationality, social,diversity

Mission⚫ We support value creation for our customers by demonstrating a highlevel of professionalism and encouraging them to take the initiative.
⚫ We will contribute to the progress and development of society throughour strong will to develop and create new markets and by conducting
our business with integrity, fairness and honesty.

VisionRevolutionizing Payments: Becoming the No. 1 Cashless Platformer that Transforms Society

Copyright 2023 GMO Financial Gate, Inc.

80

Strategy to Maximize Transaction Value

Growth Strategy

We created a new payment processing route with alliance partners. This route increases GMV, as theroute reduces costs to participating merchants and acquirers

Merchants

Restaurants

Conventional
Route

RetailAcquirersCompetitor/Peer Terminals
Processing
Center

Payment
Network

1

2
Credit Card
IssuerServices

MeteredParking/
EV Meters
etc・・・

Reduced costs toparticipating
merchants

New GMO FG
Route

Vending
Machines

Cost Reduction

Bank

compared to conventional routeg a t e w a y
Global payment network

Reduced costs toacquirers

Cost savings via new route leads toimproved competitive capability of alliance partners
Copyright 2023 GMO Financial Gate, Inc.

81

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)

Offline Cashless (face-to-face)Market (2022E)

GMV：¥128 trillion/year

GMV：¥95 trillion/year

Expansionof TAM

Continuous
GrowthAim to achieve
morethan 8x+α
GMV in toward 2030
with achieving
higher growth rate
than market.

Alliance partner
VJA (Visa Japan) Group, (*2)
including Sumitomo Mitsui
Card Company, Limited

GMV：¥32.7 trillion/year(YoY+23.4%)

GMV：¥4.1 trillion/year(YoY+68.6%)

Approx.

8x
2022

2030～2035(*1) Source: Cashless Roadmap 2019, PAYMENTS JAPAN; Current Status and Future Forecasts for Online Payment Service Providers, 2018, Yano Research Institute Ltd.
(*2) Source: VJA

Copyright 2023 GMO Financial Gate, Inc.

82

Expansion of stadium installation cases

Growth Strategy

Catching the wave of resumed economic activity, mobile vending at stadiums, which used to be cashonly, is steadily increasing
GMO SONIC 2023 (2023/1)

Sports spectator facilities, etc.

⚫ Establish a completely cashless payment environment⚫ Promoting cashless facilities at professional sports spectator
facilities, etc.
⚫ More and more facilities are going completely cashless
to reduce cash management costs, etc.
⚫ For spectators, the convenience of cashless payment, suchas "contactless" and "reduced waiting time," is high andcontributes to a successful experience.

Installation area

Sequential expansion

Copyright 2023 GMO Financial Gate, Inc.

83

Manned Terminal Topics

Growth Strategy

Terminals for Japan Post started full-scale operation – increase in terminals slowed down but increase
continued for the 4Q
Number of active terminals (manned terminals)（Unit :FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY2022

FY2023

FY2023

FY2023

FY2023

QoQ

YoY

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

(%)

(%)

39.5

48.4

61.6

75.2

88.3

101.3

118.7

132.7

149.4

162.7

199.5

222.2

+22.6

+89.4

(+11.4％)(+67.4%)FY2020
FY2021（単位：千台）thousand）

Q4

No. ofterminals

Launched stera

32.9

+6.5

+8.9

+13.1

+13.5

+13.1

+13.0

+17.3

+14.0

+16.6

+13.2

Renewal of terminals for JTB’s “credit one-stop business”

+36.8

+22.6

Forecast for FY2024

From the fourth quarter of the current fiscal year

JTB’s “credit one-stop business”：
JTB provides a card payment service for lodging and tourist facilities. In preparation
for the arrival of a full-fledged cashless society, the service provides strong support toaccommodations and tourist facilities in their efforts to go cashless in response to thechallenges such as diversifying payment methods, increasing fees, and improving
operational efficiency.

Growth rate of the no. of terminals decreased in FY2024, however,accumulation of small to large pipelines will lead to increase in terminals
JTB

Japan Post

Large
Small (incl.
family owned)

Large
Small (incl.
family owned)

Medium ~ Large
Medium ~ Large

FY2023A
2023/9期
実績

Copyright 2023 GMO Financial Gate, Inc.

FY2024E
2024/9期
予想

84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
Launched
To be released

Hotel/golf course self
checkout machine

Flow model biz

Recurring model biz

2023
June

Progress

2024
Dec

Sep

Jan

Mar

June

・Orders for successor units of installed payment
terminals (delivery of terminals in 3Q, installation
to start in 4Q)・Fees and spreads on existing terminals
remained steady

Replacement of existing installed terminals
Fees and spread revenue from terminal operation
Expansion into comprehensive business

Parking lot
checkout machine

Flow model biz

Sep

Improved

Commenced full-scale operations for a major parking facility operator
Commenced addition of QR code settlement

Recurring model biz

Ticket machine

Flow model biz

Recurring model biz

Digitalization
DX: Digitalization of parking tickets, planning to unify online reservationand payment settlement

Flow model biz

・Received order for successor machine from amajor ticket vending machine vendor, started in 3Q
・At several other ticket vending machine vendors
Completed development of electronic money and
QR code payments

Implement new types of machineElectronic money and QR codes
Development and certification
completed

Expansion of recurring earnings

Expansion into large scale ticket machine vendor

Self checkout register

Improved

Improved

Deployment in multiple smart stores

Recurring model biz

Plans for further expansion*No changes

Beverage and vending
machines/Coffee Machines

Flow model biz

Started installing new beverage vending machine vendors
Switchover installation of terminals for beverage vending machines at highway SAs

Recurring model biz

Began installing payment terminal-less QR payment for cold food vending machines
Settlement with employee ID card

Copyright 2023 GMO Financial Gate, Inc.

・Commenced full-scale operations for a major
parking facility operator
・Development of e-money and QR code
payments completed at several settlement
machine vendors
・Plans to expand to outdoor checkout machines
outside of parking lots
・Started linking member apps of major malls

Improved

・Installed terminals against self-checkoutmachines in 100-yen uniform stores and large
shopping malls.
・Plans to introduce the product to major
restaurants and other customers in the next fiscal
year and beyond
・Started to introduce terminal-less payment
system (code payment on LCD (code payment
on LCD panel) at cold food vending machines.
・Installation of vending machines madeoverseas is growing
・Payment with employee ID

85

Data Services in the IoT Domain

Growth Strategy

Started providing payment data service for merchandise vending machines, contributing to recurringmodel revenue. Supporting merchants' operational efficiency improvement and sophistication (DX)using data
IoT
Payment
terminals

Appropriate stock replenishment and cash
collection

Vending machine operator

payment processing

Start providing data sharing service to merchandise
vending machines for food service (ramen, gyoza, etc.)⇒Contribution to recurring-model
revenueAchieve efficient staffing andfood loss reduction

Vending
machinemanufacturer

DX Support

Provide payment data (sales
information)

Present

phase ２DX in member merchants

New

Provide payment data (sales information) to alliance partners⇒Strengthen marketing and increase revenue by using sales
information (product, season, region, etc.)

Provision of payment data (sales information) to vending machine
manufacturers⇒Improve operational efficiency by remotely managing inventory at an
appropriate level

phase 1
IoT payment/acquiring

Provision of IoT platform

Payment terminals (IoT)

Initial &recurringmodel

Payment Center

Recurring-Model
Revenue

Image of introduction

phase ３
DX in member merchants(sales improvement)

Time
Copyright 2023 GMO Financial Gate, Inc.

86

Alliance Overview

Growth Strategy

Working with alliance partners allows us to secure participating merchants consistently and steadily

Alliance Partners

Payment/
Financial
Institutions

Unattended
Terminal
Manufacturers

POS
Manufacturers

GMO Group
Synergies

Copyright 2023 GMO Financial Gate, Inc.

Stadium Facilities

Public Service Agency

Vending Machines

Metered Parking
EV Meters

Laundries

Entertainment

TravelWholesalers

Real Estate

Occupation/
Vocational Schools

Healthcare/Welfare

Hotels/Inns

Bus/Train

Restaurants

Retail Stores

Merchants

87Unique Positioning

Competitive Advantage

End-to-end solutions via one-stop platform allows us to create alliances with many players in themarket◼ Solutions in Offline Payment Market
Customization(Customize Payment
Methods)

Adaptation of
Top-End POS
Register Models

Terminal
Settlement

ーー

Payment
Processing

Clearing/
Adjustment

Maintenance/
Support

FG

N
N社

Leading payment
大手決済ネット
network playerーー

ワーク事業者

R
R社

Major operating
大手事業会社
companyーー
Using their own registers only

P
P社

Leading payment
大手決済事業者
vendorーーーー

Copyright 2023 GMO Financial Gate, Inc.

88

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, thebarriers to entry become more challenging

Law

E-money
Regulation

Modified Partial
Revision of the
Installment Sales
Act

Brand Test
Credit Card
Regulation

Security Standard

PCI DSS
Global security standard in credit card industry
created by international big 5 credit card
brand, Visa, Mastercard, JCB, American
Express and Discover

Payment Center
Regulation

JCCA Certified
Center

EMV Test
International standard of IC Card created by
Europay, Mastercard and Visa

JCCA：Japan Credit Card Association

Copyright 2023 GMO Financial Gate, Inc.

89

Government Promotion of Cashless Payments

Industry Topic

METI announced its Cashless Vision policy in 2018, Japanese cashless market will expand in response
Impact on Business

Present

Casino (Integrated Resort) will start in Osaka

Osaka Expo

Issuance of new bank notes

expansion

Lifting the ban on digital salaries

My number point

My number point

Tokyo Olympic/Paralympic

My Number Point

Cashless Consumer Returns Policy

Implementation plan announced for the security ofcredit transactions (by the Council for credit
Transaction Security)

by METI）

Enforcement of Revised Installment Sales Act

Announcement of Cashless Vision（2

2

Apr 2029

Apr-Oct 2025

Jul 2024

Apr 2023

Jun 2022

Jan 2022

Jul-Sep 2021

Sep 2020

Jul 2020

Oct 2019

Jun 2018

Apr 2018

Copyright 2023 GMO Financial Gate, Inc.

Increasing demand for cashless terminals as merchants are
obligated to use credit card IC Expanding demand forcashless terminals as merchants become obligated to use
credit card ICConsumer redemption projects have resulted in Increase in
the amount of payments processed
With/after COVID, the Expanding Contactless and IoT
Payment Needs
Inbound Demand Leads to Expanding need for cashless
payment terminals Expansion of mobility payment needs
In line with the cost of adapting to the new banknotes
Stimulus to introduce cashless payment terminals
Expanding needs for small payments due to the spread of
terminal-less payment taps to pay/phones
Government Announces Policy of Going Completely
Cashless for Osaka Expo; Plan to install 1,000 terminals

Osaka IR to be Approved by Government, Targeting
Opening in Latter Half of 2029 Expanding demand forcashless terminals

90

New topic of credit card industry

Industry TopicIn 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（model case：AOV ¥5K SME merchant）

METI requires fee among credit card companies
Fee among credit card companies is
actually paid by merchants

Brand fee

3.5

Internation Brand fee
al Brands①Brand fee
0.05

3Fee among cardcompanies(Interchange fee)

2.5

2.3%

Card
company(Acquiring)

②IRF

Card
company(Issuing)

Billing
Reimbursing

Merchant fee

Billing

Reimbursing

Rate in longtail could
be higher than thisMerchants

1.5

Payment

Goods/Service
s

2.30

2

3.25

Billing➂Remittance fee④Network fee

1➄Acquiring fee

0.16

Consumers

0.14
0.5

0

Copyright 2023 GMO Financial Gate, Inc.

0.3

⑥Others

Our monetization points 0.3

91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～
Started handling touch settlement of JCB at Nagaden-bus

Launched in FY2023
Aiming to provide services with major food manufacturers

NFC tag on vending machines

Dec 2020～
Launched handset-less NFC-touch payment service with Soft Space

Terminal-less

Automatic connection
to the internet byholding a smartphone

Select productNo app is needed

Pay with biometrics
Merchandise receipts

Settlement completed(Apple Pay, Google Pay)

High Security
Tap to Phone: Mobile payment service where merchants do not need to prepare cash registers and terminals for payments, and NFC-enabled devices can be used as payment reception terminals.
NFC: An abbreviation for Near Field Communication, a communication standard that can be communicated using contactless IC chips and simply by holding them over.
NFC tag: Tags that allow NFC-enabled devices and devices to perform various operations simply by holding up an NFC-enabled smartphone.

Copyright 2023 GMO Financial Gate, Inc.

92

Shareholder Structure

Company Profile

The ratio of foreign institutional investors increased again as a result of aggressive IR activities fordomestic and foreign institutional investors through 1-on-1 meetings and conference appearances
GMO-PG

Japanese
institutional investors

Other enterprises

Foreigninstitutional investors

Individuals

100%
90%
80%
70%
60%

13.2

15.1

12.8

12.6

21.9

18.5

23.5

23.1

8.1

1.5
6.3

1.7
7.7

1.4
5.6

1.8
5.8

59.7

57.1

57.1

56.7

56.7

End of September 2020

End of March 2022

End of September 2022

End of March 2023

End of September 2023

16.3

7.8
8.1

50%
40%

30%
20%
10%
0%

Copyright 2023 GMO Financial Gate, Inc.

93

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

GMO EPSILON100%

GMO PAYMENT SERVICE

100%
Equitymethod40%

57.3%（Online payment/Longtail）（Online payment/Deferred payment）

SMBC GMO PAYMENT（Online/Offline payment/）

GMO FINANCIAL GATE

（Offline payment）

Consolidated

100%

51%

GMO CARDSYSTEMGMO DATA

Consolidated subsidiary

Sumitomo Mitsui Credit Card

（Offline payment/Longtail）（Payment processing center）

Copyright 2023 GMO Financial Gate, Inc.

49%

94

Company Profile

Company Profile■Company

GMO Financial Gate, Inc.（TSE Growth Ticker:4051）■Foundation■Address■Stock Capital■Major Shareholder■Board Member

September 1999
Humax Shibuya Building 7F, Shibuya Dogenzaka 1-14-6, Tokyo¥1,629 Million(end of September 2023)
GMO Payment Gateway, Inc.
Representative Director, President
Kentaro Sugiyama
Director
Akio Aoyama（Solution Partner Division Executive Manager）
Director
Tomonaga Fukuda（IT Platform Division Executive Manager）
Director
Tomoki Tamai（Corporate Support Division Executive Manager）
Director
Tatsuya Koide（GMO Payment Gateway, Inc. Chief Managing Executive Officer）
External Director
Nao Shimamura
External Director
Rie Asayama
External Auditor
Takayoshi Nagasawa
External Auditor
Satoru Ozawa
AuditorTakashi Iinuma（CPA)■Auditing Firm
■Subsidiary

Ernst & Young ShinNihon LLC
GMO CARD SYSTEM, Inc. shareholding ratio:100％
GMO DATA, Inc.

■Businessshareholding ratio: 51.0% (Mitsui Card Company, Limited:49.0％）

Cashless payment infrastructure service (credit card, debit card, e-money etc.)

Floor-Standing Model

Mobile Model

Embedded Model

Copyright 2023 GMO Financial Gate, Inc.

POS Model（ As of November 11, 2023 ）95

Reference
Site nameURL

GMO Financial Gate

https://gmo-fg.com/

IRhttps://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 Roadmap 2023

https://paymentsjapan.or.jp/publications/20230816_roadmap2023/

Selected Service Industry Current
Statistics Survey

https://www.meti.go.jp/statistics/tyo/tokusabido/index.html

Cashless payment ratio in 2022

https://www.meti.go.jp/press/2023/04/20230406002/20230406002.html

Statistics of foreign visitors to Japan

https://www.jnto.go.jp/statistics/data/visitors-statistics/
Copyright 2023 GMO Financial Gate, Inc.

96

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.