Disclosure of matters related to businessplans and growth potential
ROBOT PAYMENT INC.
TSE Mothers

4374

September 28, 2021

01

Company Information2Company Information

Company name:

ROBOT PAYMENT INC.

Foundation date:

October 2000

Address:

15th Arai Building 4F, 6-19-20 Jingumae, Shibuya-ku, Tokyo

Representative:

Kenya Kiyoku

No. of employees: 75 (at the end of July 2021)

Accounting period: December
Business Activities:・Online Payment Processing Service
・ "Billing Management Robot," a cloud-based billing management service3Subscription Payment Company
Bill Collection
Mechanism

Features forSubscription
Businesses

CustomerManagement
Database

4

Business Description
Developing a service that connects corporate money with technology
PaymentBusiness
Subscription Payment

Financial Cloud Business
Online Payment
Billing Management Robot

BtoC Online
Payment

Online Payment Processing Service mainly forsubscription businessBilling Management Robot for Salesforce

BtoB Intra2014年~
companyuse

Accounting DX service that streamlines andautomates billing, collection, invoicing, andreminders
5

Product History
Financial cloud business is driving growth while the payment business grows
steadily
Net sales of the two mainbusinesses
Billing Management Robot
for Salesforce Launched Billing Management Robot for Salesforce（Millions of yen）

Financial Cloud Business
Payment Business

1,078

Billing Management
Robot Launched
Billing Management Robot911339711
Began providing online payment
processing services.

597501

246

1197552449522593

665(Note) 1. Figures for the fiscal year ended December 31, 2018, and before have not been audited by Crowe Toyo & Co. In addition, the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 30, 2018, hereinafter referred
to as the "Accounting Standard for Revenue Recognition") and the "Guidance on Accounting Standard for Revenue Recognition" (ASBJ Guidance No. 30, March 30, 2018, hereinafter referred to as the "Guidance") became effective for fiscal years
beginning on or after April 1, 2018. Although the Company has adopted the revenue recognition accounting standard from the beginning of the fiscal year ending December 31, 2019, the figures in this document, including the above, are based on
the assumption that the standard was adopted from the beginning of the fiscal year ending December 31, 2016.
Note 2: Only sales in the Payment Business and Financial Cloud Business are included.

739

6Revenue Structure
Both businesses steadily growing by building up recurring revenue
PaymentBusiness

Financial Cloud BusinessInitialSpreadInitialPAYGPAYGFeesRecurring
Revenue ratio

Recurring
Revenue ratio
MRR（Note 1）（Note 2）Stock

（Note 1）
（Note 2）

Fixed96.6%

MRR: Abbreviation for Monthly Recurring Revenue, which refers to revenue that is earned repeatedly each month.
Recurring revenue ratio: Total amount of recurring revenue divided by net sales. Figures are for a single month in June 2021.

Fixed（Note 2）

97.4%

7

Net Sales Trends
Sales increased owning to the stable growth of the Payments business and thehigh growth of the Financial Cloud business（Net Sales：Millions of yen）

1,200

Financial Cloud Business

1,078

Payment Business

911

CAGR（Note 2）
900

Payment business：13.3%

339

Financial Cloud Business：59.8%

711

597
600

501

246

119

75

52
300

449

522

593

665

739

0
2016/122017/122018/122019/122020/12(Note 1) Figures for the fiscal years 2016/12 through 2018/12 have not been audited by Crowe Toyo & Co. In addition, the Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 30, 2018,
hereinafter referred to as the "Accounting Standard for Revenue Recognition") and the Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March 30, 2018, hereinafter referred to as the "Guidance") from thebeginning of the fiscal year beginning on or after April 1, 2018, and the Company has applied the Accounting Standard for Revenue Recognition from the beginning of the fiscal year ending December 31, 2019. The figures in this document,including the above, are presented on the assumption that the said standards were applied from the beginning of the fiscal year ended December 31, 2016.
（Note 2) Average annual growth rate of sales over the five-year period from FY12/16 to FY12/2020.

8

Main KPI（Results for the year ending December 31, 2020 ）ARR（Note 1）

CompanywideRecurring revenue ratio

1,210million yen

Payment
Business

809 million yen

Financial CloudBusiness

400 million yen

Financial Cloud Business

Payment
Business
Financial Cloud Business

5,205AC
459AC

97.4%

ARPA（AC）

5,664ACComp
anywide96.6%

Payment
Business

Number of accounts

Companywide

96.9%

Comp
anywideComp
anywideNet sales CAGR（Note 2）

JPY 17,787

Payment
Business

JPY 12,363

Financial CloudBusiness

JPY 72,662

18.4%

Payment
Business

13.3％

Financial Cloud Business

59.8％

Churn rate (monthly/value basis)(Note 3)Companywide

0.63%

Payment
Business
Financial Cloud Business

0.60％

0.70％

(Note 1) ARR: Abbreviation for "Annual Recurring Revenue," calculated by multiplying recurring revenue (the sum of revenue that is generated continuously over the service usage period) by 12 (annualized) for asingle month in December 2020.
(Note 2) Average annual growth rate of net sales over the five-year period from FY12/16 to FY12/2020.
(Note 3) Monthly churn rate calculated by value, which is the average of "recurring revenue generated from customers who churned during the month / recurring revenue of all customers in the previous month" foreach month from January to December 2020.

9

Steady growth in Payment business
Steady growth due to increase in e-commerce market and expansion of customer
business
Number of payment transactions andNumber of accounts and ARPA (Note 1)

payment transaction volume（Number of payments processed:thousands)

8,000

6,000

Number of payments（ Transaction volume: millionsof yen ）Transaction volume

80,000CAGR（Note 2）
Number of payments

70,000processed:：13.2%
Payment transaction

60,000（ARPA: Yen)

（Number of accounts: accounts）

6,000

Number of accounts

13,000ARPA

CAGR （Note 3）
Number of
4,500

volume：30.7%

accounts: ：13.3%

12,000

ARPA：4.2%

50,0004,000

40,0003,000

11,0001,500

10,00030,0002,000

20,00010,00000
2016/122017/122018/122019/122020/120

9,000
2016/122017/12(Note 1) ARPA: Average Revenue Per Account, which represents the average monthly recurring revenue per account.
(Note 2) Average annual growth rate of the number of payment transactions and payment transaction volume over the five-year period from FY12/16 to FY12/2020.
(Note 3) Average annual growth rate of the number of accounts and ARPA over the five years from FY12/16 to FY12/2020.

2018/122019/122020/1210

High growth rate of "Billing Management Robot”
Business is expanding on the back of increasing number of customers and demand forcloud services
Trends in the number of invoices
issued (Note 2)

Trends in billed amount (Note 1)（Number of invoices issued:thousands）（Billing amount: millions of yen）

250,000

1,200

1,000

200,000

CAGRCAGR
150,000

79.5%

800

141.1%

600
100,000
400
50,00020000
2016/122017/122018/122019/122020/122016/12(Note 1) Average annual growth rate of billed amount over the five-year period from FY12/16 to FY12/2020.
(Note 2) The average annual growth rate of the number of invoices issued over the five-year period from FY12/16 to FY12/2020.

2017/122018/122019/122020/1211

High growth rate of "Billing Management Robot”
High growth per customer and in the number of accounts
Trends in the number of accounts(Note 2)

Trends per customer (Note 1)（ARPA：Yen）（Number of accounts: account）

80,000500
CAGRCAGR

20.9%

38.6%

400

60,000300
40,000200

20,00010000
2016/122017/122018/122019/122020/12(Note 1) Average annual growth rate of ARPA over the five-year period from FY12/16 to FY12/2020.
(Note 2) Average annual growth rate of the number of accounts over the five-year period from FY12/16 to FY12/2020.

2016/122017/122018/122019/122020/12
1202

Business Description

13Service OverviewProvides merchants (Note) with a unified point of contact with payment providers
and a collective payment method as an online payment gateway
Payment Providers

Credit card companies
Consumers

Merchants
Purch
ase

ROBOT PAYMENT INC.
Contract for
acquiring andmanaging
merchantCom
prehensi
veage
ncy
contract

Direct debit providers

Banks

Convenience Stores(Note) Merchants: Customers of the payment business, such as EC businesses.。

14

Payment
ペイメント事業Business

Automatic recurring charging system

Automates payment processing for subscription businesses, reducing operationalcosts and human errorsFirsttime

2ndmonth

3rd
month

Fully automatic charging and smooth payment
Subscription￥20,000

First
time

Othercompany
services

Charging cycle
Choice from weekly, bi-weekly, monthly,
bi-monthly, every three months, every six
months, or annually available.

Free trial period
The trial period can be specified in days, andpayment can be made at the trial amount.

2nd
month

Charging file uploaded

3rd
month

Charging file uploaded

Changes in charging
amounts
Changes can be made either through manual
operation or API integration.

Cancellation andwithdrawal form
We provide a form that allows end users tostop recurring charging by themselves.

Charging file uploaded

Specification of charging
frequency
The charging frequency can be specified,starting from one time. Automatic charging
will be stopped after the specified numberof billing cycles are completed.

Specification of charging
date
Automatic charging date can be set fromthe 1st to the 31st and the end of themonth after the first payment.。

15

Payment
ペイメント事業

Business

Service Overview
Automaticbilling

Accounting DX service to streamline
and automate monthly billing
management tasks

Automaticbill
collection

Automaticreconciliati
onPublishing invoices 【 Supported payment methods 】
Sending invoices
・Bank transfer・Direct debit
・Credit card ・Convenience store

Automaticreminder
sending

Before payment
date
After payment
date

Two types of provision methods❶ For all users

Billing Management Robot• Can use immediately just withinternet connection• Can be linked to multiple
services using API(Note) Salesforce is a trademark of Salesforce.com, Inc. and is used with permission.

❷ For Salesforce® users

Billing Management Robot for Salesforce• Customer data managed inSalesforce® can be linked toBilling Management Robot.
• Salesforce®'s high level ofcustomizability creates asystem that matches any
company’s usual flow.
16

フィナンシャルFinancial CloudBusiness
クラウド事業

Service Overview

Combining Billing Management Robot with Online Payment Processing Service toReduce Churn and Maximize LTV
Invoicing

Collecting
bills

Reconciliatio
nReminder
sending

CSV

Billing Management
Robot

Automatic collection
with multiple
payment methods

Online Payment
Processing Service

Automaticreflection ofpayment results

AUTO

17

03

Market Circumstances

18

Financial Cloud Business: Changes in the Macro
Environment
Legal and social issues drive promotion of DX tools in accounting

October 2020

Amendment of the Electronic
Books Maintenance ActAmendments to the Electronic Books Maintenance Act will ease storage requirements by allowing

image storage as well as scanner storage. 2021 and 2022 will see further relaxation of requirements,
making it easier to store electronic invoices.

Changes in Japan's consumption tax system, the introduction of the qualified invoice preservation system
October 2023

Invoice system(invoice system), which requires the preservation of qualified invoices as a requirement for the applicationof the purchase tax credit, has accelerated the systematization of invoicing operations, which will become
more complicated and increase the workload if electronic invoicing is not introduced.

The peril during
2025

Ministry of Economy, Tradeand Industry DX Report

About 80% of companies have legacy systems, which are a hindrance to DX. The Ministry of Economy,
Trade and Industry (METI) estimates that this will result in a loss of up to 12 trillion yen per year between
2025 and 2030 in Japan. The government is taking action to address this problem.

19

Gaining market share in the BtoC subscription market（Millions ofyen）

Subscription market will continue to grow（Note 1）
steadily

1,250,000

1,211,700
1,102,100

CAGR （Note3）

12.1%

1,000,000

997,500
901,900

787,300

750,000

683,529

Aiming to capture a shareof the subscription market

500,000

250,00002019

2020（Forecast）

2021

2022

2023

2024

（ Forecast ） （ Forecast ） （ Forecast ） （ Forecast ）(Note 1) Based on "Domestic Market Size of Subscription Services" published by Yano Research Institute in April 2020. (Based on consumer payments, total of 7 markets including food and cosmetics subscriptiondelivery services)20

Obtaining a share of the BtoB payment market

Expansionof TAMBtoB payment

352

Our BtoB
billing/settlem
ent amount:

260 billion

markettrillion yen

through thespread ofelectronic
invoicingyen

21

04

Growth Strategy

22Medium- to long-term strategy
Continue to promote a business model in which earnings are steadily accumulated
by expanding existing services and developing new businesses.
Net sales

Business growth image

SaaS business for subscription
businesses(New Business)
Hybrid BPO business in the billing
management area
(New Business)
Billing Management Robot forEnterprise
Seikyu Marunage Robot
Billing Management Robot

Online Payment Processing
Service2021/2Q～2024(planned)

202x(planned)

23

Further Expansion
Obtain information on many billing practices in Japan and further develop businessbased on the vast amount of data accumulated
Business areas where data is applied
Data
Billing Management Robot

Billing Information
Database

Analysis andforecast

Data
Billing Management Robot for
Salesforce

Data

Online Payment

Data

Billing company name,billing amount, product,purchase frequency,purchase date and time,gender, age, region, etc.

MachineLearning with AI【 Assumed image (example) 】

Marketing area

• Churn prevention• Repeat businessencouragement

Accounting DXarea• Credit agency forbilling clients• Cash flow forecasting

Sales Supportarea• Customer-to-customer
matching• Sales promotion tobilling partners

Subscription
Payment24