Financial Results Briefing for Q1 FY2023
Expansion of next-generation payment platform contributes to growth of Stock-Model revenue～ Progress in acquiring large merchants driven by Vertical Expansion ～11th IR Presentation

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

https://gmo-fg.com/

Copyright 2022 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 February 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 2022 GMO Financial Gate, Inc.

2

Meeting
agenda

1. Summary of financial Results for Q1 FY2023

2. Business Highlights

3. Growth Strategy and Progress

4. Financial Information

5. Appendix

Copyright 2022 GMO Financial Gate, Inc.

3

Summary of financial Results for Q1 FY2023

1
Copyright 2022 GMO Financial Gate, Inc.

1.1 Q1 FY2023 Summary
Both revenue and operating profit are making good progress against the 1H and full-year forecasts.
Recovery of economic activity in face to face market also contributed our business.
⚫ Q1 FY2022

quantitative information- Revenue ¥3.27billion(+52.6% YoY ) Progress towards 1H forecast 53.4%, Progress towards full-year forecast 26.2%- Operating Profit ¥0.28billion (+34.5% YoY) Progress towards 1H forecast 62.3%, Progress towards full-year forecast 30.3%⚫ Revenue categories- Initial revenue ¥2,220million(+52.6% YoY) , Stock-Model revenue ¥1,047million(+52.5% YoY)
⚫ KPIs‐ Number of active terminals： 207K(+64 YoY, +45.1% YoY)
‐ GMV ¥0.92trillion(+76.0% YoY) , Transaction Volume (Number of transaction) 105million(+62.4% YoY)
⚫ Growth of existing merchants‐ GMV expansion of existing merchants Q1 previous FY → Q1 current FY +24% YoY(*market growth in the same period is +14% YoY)

Qualitative
information• Progress in alliance projects with major hotel/travel-related merchants. The Recovery both in economic activity and inboundtourism demand is also tailwind.

• Increased the introduction in the mobility area in the Tokyo metropolitan area. The recovery of inbound tourism demand isalso driving the spread of credit card touch payment.
• Additional disclosure of ESG responses to SCOPE 1 and 2 was completed in December 2022, and additional disclosure,including SCOPE 3, is planned during current fiscal year after a data review by a third-party certification organization.
Copyright 2022 GMO Financial Gate, Inc.

5

1.2 Summary of Financial Results
Both revenue and operating profit are making good progress against the 1H and full-year forecasts.

（Millions of yen）

Q1 FY2022

Q1 FY2023

YoY

Forecast
FY2023 1st half
（Full-year）

Progresstowards forecast

Revenue

2,141

3,267

＋52.6%

6,115（12,470)

53.4%（26.2%)

Gross profit

603

843

＋39.7%

1,492(3,136)56.5%（26.9%)

Operating profit

210

282

＋34.5%

453
(930)

62.3%
（30.3%)

Profit attributable to ownersof parent

138

170

＋22.6%

283
(580)

60.1%
（29.3%)

KPIs
（YoY）

Number of active terminal

Transaction Volume

Transaction Value (GMV)（End of December 2022）（Q1 FY2023 Only）（Q1 FY2023 Only）

207,724

Approx. 105.5 million

Approx. ¥924 billion（+45.1%）（+62.4%）

Copyright 2022 GMO Financial Gate, Inc.

（+76.0%）6

1.3 Major Topics Regarding Financial Results
Progress in-line with the full-year forecast (profit margin also in line with expectations).
Secured high operating profit growth rate (+34.5% YoY) while continuing to make necessary investments.

（Millions of yen）

3,500

Revenue（+52.6% YoY）

◼ Revenue(＋) Large-lot deal contributed to increased sales of payment terminals.
(＋) Steady growth in stock-type sales backed by an increase in the number of terminals in operation(＋) Reopening effect has become apparent mainly in domestic demand.
(＋) Inbound tourism demand is recovering with the increase in the number of foreign visitors to Japan.

3,000

2,500

2,000

3,267

◼ Gross Profit(＋)Revenue expansion.
(＋)Steady expansion of high-margin Stock-Model Revenue.
(－) Increase in revenue composition of low gross margin terminal "stera”.

1,500

2,141
1,000

Gross Profit（+39.7% YoY）

500

843
603

◼ Operating Profit(＋) Steady growth in sales and gross profit.
(－) Continued investment in future earnings inexcess of profit plan.
Operating Profit（+34.5% YoY）
210

282

0
Q1 FY2022 売上高Q1 FY2023

Q1 FY2022
Q1 FY2023
売上総利益

Copyright 2022 GMO Financial Gate, Inc.

Q1 FY2022
営業利益Q1 FY2023

7

1.4 Revenue by Business Model (YoY)
Continued high YoY growth in both Initial and Stock-Model Revenue.
Steadily expand Stock-Model Revenue by flexibly designing the contract structure to monetize any of
the three items.
(Unit：Millions of Yen)

Q1 FY2022

Q1 FY2023(Composition %)(Composition %)YoY

Initial

1,454(67.9%)

2,220(67.9%)+52.6％

Stock-Model

686(32.1%)

1,047(32.1%)+52.5％

Stock

185(8.7%)

259(8.0%)+39.7％

Fee

261(12.2%)

519(15.9%)+98.6％

Spread239(11.2%)

268(8.2%)+12.0％

Total Revenue

2,141

3,267

+52.6％

Copyright 2022 GMO Financial Gate, Inc.

8

1.5 Initiatives for accelerating Spread Revenue
Strengthen solutions for small and medium-sized merchants by “expanding payment valuations” and“simplifying the implementation process”. Implement various initiatives to achieve continuous revenue
growth of 25%.
Category

Initiative

Spread Revenue (Consolidated basis)

Business in Manned terminals⚫

Existing
merchants

FY2023 Initiatives¥950mil～approx.
¥1,100mil

ARPU-Upｰ Additional payment methods and credit brands
ｰ Support BtoB cashless payment utilizing merchant base we haveBusiness in Unmanned/IoT terminals⚫

FY 2022

Active expansion into hotel/travel and leisure-related industries
ｰ Collaborate with profitable acquirer

Business in Manned terminals⚫

New

Penetrate in SME long-tail development in specific areas
ｰ Improvement of web traffic to increase inflow
ｰ Reduction of lead time to improve disengagement of prospective merchants－

approx.
¥100milmerchants
Business in Unmanned/IoT terminals⚫

Strengthen alliances with vending machine/self-checkout manufacturers

ｰ Acquire new agent contracts for e-money, QR code payments, etc.

－

¥950 million
Copyright 2022 GMO Financial Gate, Inc.

approx.
¥50milInitiatives + Existing revenue baseapprox.¥1,250million
Max potential

91.6 Revenue by business model (Quarterly)【Initial】 Continued to be fluctuate from quarter to quarter, but steadily expanding because now is thetime to increase the market share.
【Stock-Model】 Growth driven by fee expansion backed by growth in the number of active terminals.
Initial Revenue
Pre COVID

Stock-Model Revenue

Under COVID

Pre COVID（Unit: Millions of yen）

（Unit: Millions of yen）

1,200

2,500

1,927

2,000

1,500

1,643

+52.5% YoY
921
268

687

242

683
250

569

600

400

693
450

Spread

800

855
626

Fee

1,454

1,103
1,000

Stock

1,000

841

1,682
1,525

1,047

2,220

2,136

500

Under COVID

465

495

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

217
519

203

367

177

179

124

70

79

101

99

74

80

110

117

128

132

135

145

333

239

427

363

200

0

391

430

434
361

185
179

193

181
149
160

183

182

261

259

185

206

229

244

259

0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023

Copyright 2022 GMO Financial Gate, Inc.

10

1.7 Initial Revenue and No. of Active Terminals (Quarterly)
Initial revenue grew steadily due to the contribution of large-lot deal. On the other hand, terminals soldas a result of this large-lot deal are scheduled to go into operation in Q3 of current fiscal year or later.
*Large-lot deal contributed to push up Initial revenue
in Q1. But the increase in active terminals coming fromthis large-lot deal will be seen from Q3 onward.

Initial revenue（Unit: Millions of yen）
Number of active terminals （Unit: Thousand）

+18.3

189.5

+14.1
+12.4

156.3

124.9
107.2

+8.0
+5.4

93.1

+9.7

47.1

174.2

143.2

+17.7

67.3

207.7

+17.9

+13.1

+10.5

+18.2*

+15.3

72.7

80.7

2,220

2,136
1,927

57.6
1,525

1,682
1,454

1,643

1,103
626

693

Q1
FY2020Q2
FY2020

855
450

465

Q3
FY2020Q4
FY2020Q1
FY2021Q2
FY2021Q3
FY2021Q4
FY2021

Copyright 2022 GMO Financial Gate, Inc.

Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY202311

1.8

Consolidated KPIs（Number of active terminals）

The increase in the number of manned terminals, mainly stera, continues to drive the overall increase.
Unattended terminals also continue to expand steadily.
Active terminals overall ：+64.5K YoY, YoY+45.1%（Unit：Thousand）

YoY
250

Manned terminal

Unmanned terminal

Sold by others

＋18.2

QoQ

207.7

+0.6K

189.5
200

(+3.8%)

174.2

93.1

17.9

100

67.3
13.6

14.4

9.6

50
8.5
14.1
24.4

21.5
26.5

26.1

27.7

28.0

30.3

Manned terminal

33.6

14.9

47.1

＋16.1

39.8

16.7

57.6

44.6

42.3

16.7

72.7

142.1

30.9

111.6

29.1

36.7

＋4.7K
(＋11.0%)

43.2

16.4

80.7

47.0
45.6 ＋1.4

17.7

124.9
107.2

Unmanned terminal (IoT)

18.0

143.2
150

＋0.6

18.5

17.9

156.3

Sold by others

56.8

45.4

68.7

83.0

126.0

＋59.1K(＋71.3%)

95.4

0
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY2022

FY2023Copyright 2022 GMO Financial Gate, Inc.

12

1.9

Consolidated KPIs (Quarterly Transaction volume/GMV)

Both the number of transaction volume and GMV exceeded our target of +50% YoY. KPIs steadily
expanded in line with the increase in the number of active terminals.
Number of transaction volume

Transaction value (GMV)（Unit：100 million yen）

（Unit：million）

10,000120+62% YoY

110+76% YoY

9,000

100

8,000

90

7,000

80
6,000

70

5,000

60
50

4,000

Quasi of SOE＋
Seasonality

Seasonality

40
30

Seasonality
3,000

1st SOE

Quasi of SOE＋
Seasonality

2,000

20

1,000

10

20/9
20/9
20/9
20/9
21/9
21/9
21/9
21/9
22/9
22/9
22/9
22/9
23/9
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
1Q FY2020
2Q FY2020
3Q FY2020
4Q FY2021
1Q FY2021
2Q FY2021
3Q FY2021
4Q FY2022
1Q FY2022
2Q FY2022
3Q FY2022
4Q FY2023
1Q
FY2020

20/9
20/9
20/9
20/9
21/9
21/9
21/9
21/9
22/9
22/9
22/9
22/9
23/9
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
1Q FY2020
2Q FY2020
3Q FY2020
4Q FY2021
1Q FY2021
2Q FY2021
3Q FY2021
4Q
1Q
2Q
3Q
4Q
1Q
FY2020
FY2022
FY2022
FY2022
FY2022
FY2023Q1
FY2020Q2
FY2020Q3
FY2020Q4
FY2020Q1
FY2021Q2
FY2021Q3
FY2021Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY2023

Transaction volume (10 K)

1,383

1,494

1,809

2,231

2,683

2,774

3,848

4,914

6,497

6,293

8,237

9,224

10,553

Transaction value(GMV)（¥100 M）

1,442

1,534

1,307

1,833

2,329

2,361

3,141

3,810

5,251

5,162

6,658

7,530

9,242

Copyright 2022 GMO Financial Gate, Inc.

13

Business Highlights

2
Copyright 2022 GMO Financial Gate, Inc.

2.1 Merchant Industry
Increased installation of terminals at merchants in industries where COVID used to affect huge impact.
Confirming strong cashless demand at many merchants to capture the recovery wave from COVID.
NewNew※Planned to be booked as active
Public service
terminal from Q3 FY2023 or later
institutions(Deliverance/
Transportation sector)

One dollar
shop
Publictransportation(Train/bus etc.)

Drug store(medicine/cosmetics)

UpdateStore scale：Large

Accelerating cashless installation
for the preparation of Post COVID

clothing/
Sporting
goods

New

Action Plan

Low unit
price(City office /Police station/
Drivers’ license agency)

Vending/
checkout machine

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

stera pack
(For SMEs)

•

IoT

•

•
•

Retailers/Shopping
Centerof Railway company

Introduction of self-checkout
registers
IoT POS / Center linkage••

POS point linkage
Provision of DX services tobusiness partners

Solutions for the mass market
Provision of DX services tobusiness partners•

Sales strategies by industry/
individual company
Proposals in collaboration withbusiness partners•

Electronics
chain-retailers

High-end retail/
Department
store

One-stop service proposals withalliance partners
High unit
price

GMO Card System(consolidated subsidiary)
Smallrestaurant

UpdateSmall restaurant/
Small retail

Cashless acceleration to beprepared for after COVID

Supermarket

IoT Mobility
Administrative
institutions

COVID-19 headwind
COVID-19 tailwind
NeutralHotel/Travel

Chain restaurant

Parking lot： High inbound tourism demand

Update(Incl: fine dining)

Continuously expanding
in SME areas

Service/
LeisureStore scale : Small
Copyright 2022 GMO Financial Gate, Inc.

Medical / Clinic

High ASP*
retailer(goods/apparel)

15

2.2 Transaction Trends by Industry (Q1)
Reopening/recovery of inbound tourism demand has led to a recovery in merchants that were negatively
impacted by COVID.
COVID-19 tailwind
Transaction Volume
Transaction Value (GMV)

Merchant B

Merchant D

Hotel/Travel

Transaction Volume

October 11th,

Transaction Value (GMV)

Eased the restriction for
the immigration from theoutside of Japan

350,000

Drug store
Pharmacy

300,000(Medicine/
Cosmetics)

22/12

22/11

22/10

22/9

22/8

22/7

22/6

22/5

： High inbound tourism demand

COVID-19 tailwind

400,000

COVID-19 headwind

22/4

22/3

22/2

22/1

21/12

21/11

21/10

21/9

21/8

21/7

Shifted steadily

21/6

21/4

22/12

Supermarket

22/11

22/10

22/9

22/5

22/4

22/3

22/2

21/12

21/11

21/10

21/9

21/8

21/7

21/6

21/5

Transaction Volume
Transaction Value (GMV)
Shifted steadily

250,000： High inbound tourism demand

200,000
Seasonality&
Quasi of SOE

150,000
100,000
50,000

Copyright 2022 GMO Financial Gate, Inc.

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

21/6

21/5

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

21/6

21/5

21/4

0

21/4

21/4

22/1

Seasonality&
Quasi of SOE(Izakaya)

22/8

Transaction Value (GMV)

22/7

Transaction Volume

Chainrestaurant

Merchant C

Jul - Sep：Decreased
due toRe-expansion of COVID+
Bad weather

21/5

COVID-19 headwind

22/6

Merchant Ａ

16

2.3 Top 30 ranked merchants (GMV basis)
Vertical expansion of our payment platform has been successful, and we are steadily acquiring new
merchants. Steady YoY growth of existing merchants has been contributing the expansion of ourcashless payment platform.
Q1 FY2022

Q1 FY2023

Retailer
小売りAA
Supermarket
スーパーAA
High高単価小売りA
ASP retailer A
Drug
store A
ドラッグA
Low低単価小売りA
ASP retailer A
Drug
store B
ドラッグB
Supermarket
スーパーBB
Supermarket
スーパーCC
Medical/Clinic A
医療クリニックA
High高単価小売りB
ASP retailer B
Apparel A
アパレルA
Chain
restaurant A
チェーン飲食A
Drugstore
ドラッグCC
Service A
サービスA
High高単価小売りC
ASP retailer C
Supermarket
スーパーDDHigh高単価小売りD
ASP retailer D
Supermarket
スーパーEESupermarket
スーパーFF
Hotel/Travel A
ホテル・旅行A
Hotel/Travel B
ホテル・旅行B
Service B
サービスB
High高単価小売りE
ASP retailer E
Retailer
小売りBB
High高単価小売りF
ASP retailer F
Hotel/Travel C
ホテル・旅行C
High高単価小売りG
ASP retailer G
Apparel B
アパレルB
Retailer
小売りCC
Chain
restaurant B
チェーン飲食B

アパレルC
Apparel C
小売りDC
Retailer
スーパーAA
Supermarket
小売りAA
Retailer
ドラッグAA
Drugstore
Low低単価小売りA
ASP retailer A
High高単価小売りA
ASP retailer A
ホテル・旅行A
Hotel/Travel A
ホテル・旅行D
Hotel/Travel D
ドラッグB
Drug
store B
スーパーBB
Supermarket
チェーン飲食A
Chain
restaurant A
High高単価小売りB
ASP retailer B
医療クリニックA
Medical/Clinic A
スーパーCC
Supermarket
小売りEE
Retailer
アパレルD
Apparel D
High高単価小売りH
ASP retailer H
スーパーEESupermarket
ドラッグCC
Drugstore
アパレルE
Apparel E
アパレルA
Apparel A
High高単価小売りD
ASP retailer D
High高単価小売りC
ASP retailer C
小売りFF
Retailer
スーパーDD
Supermarket
ホテル・旅行C
Hotel/Travel C
Apparel F
アパレルF
High高単価小売りI
ASP retailer I
Retailer
小売りGG

Subtotal of top 30 GMV¥122.1 billion（Unit: ¥100 million）

0

50

100

150

200

Copyright 2022 GMO Financial Gate, Inc.

New
New

Increase from Q1 FY2022
Decrease from Q1 FY2022

Subtotal of top 30 GMV
New
New
New

¥179.9 billion(+¥57.8billion YoY, +47.4% YoY)New

New contract:9

New
New

Hotel/Travel, Apparel merchants boosted
by re-Opening effect

New
New

0

※ Merchants with no transaction in
the same period of the previous year

（Unit: ¥100 million）

50

100

150

200

17

2.4 Comparison with Market Growth
While the overall market is currently growing +14% YoY, our GMV grew +76% YoY in Q1. Growth ofexisting merchants and acquisition of new merchants are the two factors driving our growth.
Market GMV (Transaction value of credit card payment)All(left axis)

Retailers(left axis)

全体(左軸)(trillion yen)

Restaurants(Right axis)

小売(左軸)

Hotels/Inn(Right axis)

飲食店(右軸)

9

GMO-FG GMV

旅館・ホテル(右軸)(100 million yen)

FY2023 2,500
1Q

FY2022
1Q

8

+14%
YoY

2,000

7
+23%
YoY

6

4,000

(100 million yen)

FY2022
1Q

3,500

FY2023
1Q
+76%
YoY

3,000

2,500
1,500

5

2,000

+17%
YoY

4
1,000

1,500

3
1,000

+15%
YoY

2

500
500

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

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

*Source: "Current Survey of Selected Service Industries" by the Ministry of Economy, Trade and Industry.

Copyright 2022 GMO Financial Gate, Inc.

18

2.5

Payment platform grows together with merchants

Compared to current market growth of 14%, our Q1 GMV growth rate is 76% overall and 24% for existing
merchants. The growth rate of just existing merchants exceeds market growth. with merchants growing
together with our payment platform.

GMV growth rate(¥100 million)
10,000

Newly acquired merchants

Growth of GMV overall

Existing merchants

Growth of GMV from existing merchants

9,242

9,000

Overall +¥399.1billion(+76.0% YoY)

8,000

2,747

7,000
6,000

Existing +¥124.4billion（+23.7％ YoY）

5,000
4,000
3,000

6,495

5,251

2,000
1,000
0

22年9月期1Q
Q1 FY2022

23年9月期1Q
Q1 FY2023*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.
*The above figures are considering churn of merchants.

Copyright 2022 GMO Financial Gate, Inc.

19

Growth Strategy and Progress

3
Copyright 2022 GMO Financial Gate, Inc.

3.1 Growth strategy on mid-term target
Successfully delivering software development to large-lot merchants through Vertical expansion.
Steadily making track record of symbolic deals. Growth strategy toward 2025 is progressing steadily onschedule.
2022 *actual

2023 *Forecast

Consolidate OP¥740 million¥930 million

GMV¥2.5 trillion¥3.7trillion

Target1. Acquire multi-industry/high-growth enterprises by launching next-generation multipayment terminals
Initial, Stock, Fee⚫ Progress in developing large-lot public service institutions and travel/hotel-related merchants.
⚫ Acceleration of cashless transactions at merchants hit by COVID as inbound tourism demand recovers(e.g., chain restaurants, hotels/travel, SMEs centered on "stera packs").

2024

2025

Over
¥1,000 million¥1,500 million¥5 trillion
FY2020 Rev. level

CAGR25%1

1¥8.0-8.3
billion¥18～20billionVertical2. Expand IoT payments by supporting contactless (tap) and unattended payments
Initial, Stock, Fee⚫ Continued expansion of credit card touch payment in the area of mobility such as buses and railwaysin Tokyo metropolitan area (this type of touch payment connects to our center).
⚫ In anticipation of an increase in the number of foreign visitors to Japan, credit card touch is
penetrating on routes in Tokyo metropolitan area where Suica/PASMO(E-money payment) has
already been introduced.

¥2.5～3billionVertical

3¥0.5～1billion4

Stock, Fee⚫ Developed a one-stop web-based cashless payment platform for large account of hotel/travel
merchants. This web-based platform has (1) application form of terminal installation,(2) sales settlements/clearing, and (3) payment data sharing.

Labor force saving
support through self-chekout register etc(Vertical expansion)

Horizontal¥0.1-0.2
billion⚫ Promoting development of house points for railway-related merchants in western Japan area
⚫ Strengthening revenue base by acquiring projects using house points/unique points as a hook

Horizontal
expansion2¥1.0-1.3
billion

Stock, Spread

4. Increase added value by strengthening processing center functions

Horizontal

2

3

3. Acquire large accounts through expansion of alliances with QR, points, etc.

FY2026 Rev. level (assumption)

4¥0.2-0.3
billionVertical

Copyright 2022 GMO Financial Gate, Inc.

Horizontal¥0.5～1billionVertical
expansion
Strengthen
・Fintech services
・ Money services
・ Data businessat appropriate timing

21

3.2 Expansion of GMO-FG cashless platform
Building a highly-retentive payment platform through Vertical Expansion. Supporting merchants inresolving issues in preparation for the cashless transition of public service institutions and for therecovery of inbound tourism demand in related industries.
2

Vertical Expansion

3

4Growth strategies (～FY2025)

Recent examples of software development needs on specific industries

Expansion of services byindustry

Merchant A

Public service
institution(Public Service institution)

Bus/Railway• Allows merchants to use points issued by their own stores for payment/points

Merchant B(Bus/Railway, Real Estate)• Install terminals in commercial facilities/shopping centers owned by merchants

Real Estate

Hotel/Inn• Developed a one-stop web-based payment platform that provides merchantswith (1) application form of terminal installation, (2) sales settlements/clearing,and (3) payment data sharing.

Travel• Through this payment platform, improve the efficiency of store management
and payment trend analysis for travel/leisure facilities (hotels, inns, souvenir
stores, etc.).

Alliance partner C(Hotel/Inn, Travel)

Public Service
Institution

Vending machine①Payment terminal, ②Processing center, ③PSP service

Parking lot
EV meterLaundry

Horizontal Expansion

Amusement

TravelWholesale

Real Estate

Office/School

Medical/Welfare

2

Hotel/Inn

Bus/Railway

Restaurant

Retailer1• Developed a tailormade data sharing infrastructure for a merchant which
provides national public service (transportation sector). This infrastructure
matches the data format of the merchant's existing internal system.

1

Delivering Next-Generation type of terminals

2

Expansion in Unmanned (IoT) payment domain

3

Acquire large accounts through expansion of allianceswith QR, points, etc.

4

Increase added value by strengthening processing
center functions

Expansion in customer industry

Approach to large accounts in each industry

Copyright 2022 GMO Financial Gate, Inc.

• Acquirer• Clearing machine
manufacturer• POS operators223.3 Business progress in active manned terminal

Action plans

1

2

3

4

Nicely acquiring large merchants in each industry through promotion of Vertical expansion
Historical data of active manned terminal（Unit :
thousand）

Mannedterminal

FY2020（単位：千台）FY2021
End Q4End Q1

FY2021End Q2

FY2021End Q3

FY2021End Q4FY2022End Q1

FY2022End Q2

FY2022End Q3

FY2022End Q4FY2023End Q1

30.3

45.4

56.8

68.7

83.0

95.4

111.6

126.0

142.1

Launched
stera

36.7
+6.4

+8.7

+11.4

+11.8

+14.4

+12.4

+16.2

+14.4

QoQ
(%)

YoY
(%)

+16.1

+59.1

(+12.8％)(+71.3%)+16.1

Recovery of inbound tourism demand and preparation for post COVID
Monthly Trends in the Number of Foreign Visitors to Japan

Renewal of terminals for JTB’s “credit one-stop business”(from summer 2023, approx. 10,000 terminals will be delivered)

JTB’s “credit one-stop business”：

350 （Unit : 10 thousand）
300
250
200

April 7, 2020
Fist State of Emergency

October 11, 2023
Eased the restriction for
the immigration from theoutside of Japan

JTB provides a card payment service for lodging and tourist facilities. In preparation for thearrival 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.

150
100

0

19/1
19/2
19/3
19/4
19/5
19/6
19/7
19/8
19/9
19/10
19/11
19/12
20/1
20/2
20/3
20/4
20/5
20/6
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

50

Copyright 2022 GMO Financial Gate, Inc.

23

3.4 Expansion of Payment Platforms - Mobility

1

Action plans

2

3

4

In anticipation of a recovery in inbound tourism demand, the use of Visa touch payment cards in themobility field has become widespread also in Tokyo metropolitan area. Penetration of “Card Touch
Payment”* contributes to increased awareness among users.

* Touch payment cards that Visa provides(credit, debit, and prepaid card)

Introduction snapshot in domestic public transportation (Visa Publication)

Number of mobility transaction in metropolitan areas

22/12

22/11

22/10

22/9

22/8

22/6
22/7

22/7

22/5

22/4

22/6

22/3

22/2

22/1

21/12

21/11

21/10

21/9

21/8

21/7

21/6

21/5

21/4

Kansai Transportation Company A

22/10

22/11

22/12

22/9

22/8

22/5

22/4

22/3

22/2

22/1

21/12

21/11

21/10

22/12

21/9

22/11

21/8

22/10

21/7

Kyushu Transportation Company B

Metropolitan Transportation Company C

Source: Visa (excerpted from the December 19, 2022 media briefing handout)

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

Copyright 2022 GMO Financial Gate, Inc.

24

3.5 Promote the success experience of cashless payment

Action plans

1

2

3

4

Create a cashless environment in previously cash-only event environments to encourage consumers toexperience cashless success.
GMO SONIC 2023 (Jan 2023)⚫ Established cashless only environment

Professional sports stadiums⚫ Promoting cashless payment at professional sports stadiums.
⚫ More stadiums are going completely cashless to reduce
cash management costs.
⚫ Cashless payment is highly convenient for audiences as well,as it is contactless and reduces waiting time, contributing toa successful experience.

Delivered area

Expanding

Copyright 2022 GMO Financial Gate, Inc.

25

3.6 Status of ESG Initiatives as a Cashless Platform Company
Disclosed "ESG-related Initiatives in our group" on our website last December. Currently conducting
third-party data review to obtain external certification for supply chain CO2 emissions, including
SCOPE3.
ESG-related disclosure schedule

Oct

2022
Nov

Dec

Jan

Feb

Mar

Apr

2023
May

Jun

Our Efforts for Environmental Consideration

July

Aug

Supply chain CO2 emissions (SCOPE 1-3)
Measuring based on
our own standards

Acquisition of
external certification⚫

Use of recycled paper for receipts (paper rolls) used at each payment
terminal⚫

Providing electronic storage services for sales slips to reduce the use ofreceipts (paper rolls)⚫

Use of eco friendly materials for payment terminal components⚫

Reusing payment terminals returned by merchants as refurbishedterminals in the event of a malfunction by maintaining the terminals toensure that they are as good as new.

Sep

Planning to disclose
certified CO2 emissions data including SCOPE3

Dec 9,2022 Published ESG initiatives on our website

Present

Our supply chain CO2 emissions*2022/12/9開示 「当社グループのESGに関する取り組み」より抜粋

Our Supply Chain
UpstreamUs

SCOPE 3SCOPE 1SCOPE 2
Procurement, Manufacturing
FuelElectricity use
and Distribution
Combustion

Payment
terminals

Roll paper(Receipt)

N/A

Office,processing
centers

FY2022

Downstream
SCOPE 1 (t-CO2)

0

SCOPE 2 (t-CO2)

105

SCOPE 3Use and disposal

Use ofpayment
terminals

Disposal of
payment
terminals

Electricity power use in SCOPE 1・2 (kwh)

231,210(Note) SCOPE 3 is being coordinated with a third-party certification organization, and data is
being collected with the aim of identifying it in the first half of this fiscal year and disclosing
it in the second half of the year.
*The figures in the table above consider the consolidated group companies GMO Financial Gate,
GMO Card Systems, and GMO Data.

*Data for SCOPE 1 and 2 will be verified by a third-party verification organization in 1H FY2023.
Copyright 2022 GMO Financial Gate, Inc.
26

Financial Information

4
Copyright 2022 GMO Financial Gate, Inc.

4.1 Profit & Loss
Slight YoY decline in gross margin mainly due to the change in sales mix within Initial revenue. SG&A
ratio is declining due to revenue expansion, and operating profit is on track to meet the annual plan.

(Unit：Thousands)

FY2022Q1 (actual)

FY2023Q1 (actual)

YoY

Revenue

2,141,482

3,267,719+52.6%

COGS

1,537,613

2,424,177+57.7%

Gross profit

603,869

843,542+39.7%

SG&A

393,574

560,764+42.5%

Operating profit

210,295

282,777+34.5%

Ordinary profit

210,360

282,444+34.3%

Profit attributable to owners ofparent138,957

170,388+22.6%

Copyright 2022 GMO Financial Gate, Inc.

28

4.2 Revenue by business model（YoY）
Composition ratio of Initial and Stock-Model revenue remained unchanged from the same period of theprevious year. % of Fee revenue rose among Stock-Model revenue increased.

Initial

Stock

Fee

Spread

268
519

259
239
261
185
193
101
135

2,220
1,454

855

FY2021 1Q
Q1 FY2021

FY2022 1Q
Q1 FY2022

Copyright 2022 GMO Financial Gate, Inc.

FY2023 1Q
Q1 FY2023

29

4.3 Revenue by business model (Quarterly)
Initial revenue grew steadily due to the contribution from the development of large-lot merchant. Feerevenue was pushed up by the sales of paper rolls (seasonality). Spread revenue also grew steadily in
QoQ due to the seasonality from the year-end sales spike season, despite the negative influence of
COVID still remains on Spread revenue.
SOE①（Unit :
millions of yen）

Q1
FY2020Q2
FY2020Q3
FY2020Q4
FY2020Q1
FY2021

7th spikeof new cases

Quasi ofSOE④

8th spikeof new cases

②

③

Q2
FY2021Q3
FY2021Q4
FY2021Q1
FY2022Q2
FY2022Q3
FY2022Q4FY2022Q1
FY2023

Launched
stera

Initial

626

693

450

465

855

1,103

1,525

1,682

1,454

1,643

2,136

1,927

2,220

Stock-model

363

367

333

391

430

427

495

569

687

683

841

921

1,047

Stock

110

117

128

132

135

145

160

182

185

206

229

244

259

Fee

74

70

80

79

101

99

149

183

261

259

361

434

519

Spread

177

179

124

179

193

181

185

203

239

217

250

242

268

990

1,061

784

856

1,286

1,531

2,020

2,252

2,141

2,327

2,978

2,849

3,267

Total

1st SOE

Copyright 2022 GMO Financial Gate, Inc.

30

4.4 Balance sheet
Build up inventory based on future sales forecasts. Accumulate assets needed to execute market share
expansion strategy.

End of Q1 FY2023（Thousands of yen）
Cash & Cash equivalents(23.5%)

1,720,088

Merchandise：
Current liabilities

2,801,374

Merchandise (Payment terminal)

Non-current liabiliries

2,511,348

39,252Other current assets

Total equity(61.2%)

1,526,884◼ Points

4,484,997

Non-current assets

Increased approx. ¥1billion from the end of Q4. Inventorybuildup based on future sales forecast. Although someterminals are experiencing a prolonged procurement lead time,
there is no noticeable negative impact on major terminals,
centering on "stera". And price increases have been requested
for some terminals and paper rolls, but we are planning tomaintain an appropriate gross profit level by passing on thecost of these products to merchants.

Cash and Cash Equivalents：
Decreased approx. ¥800 million from the end of the previous
Q4 due to inventory buildup, etc.

1,567,303
Asset

Debt
Copyright 2022 GMO Financial Gate, Inc.

31

4.5 Consolidated KPIs（No. of Active Terminals）
The increase in the number of active terminals continued to be driven by manned terminals. Steady
accumulation of unattended terminals.

（Unit:
thousand）

FY2020Q3

FY2020Q4

FY2021Q1

FY2021Q2

FY2021Q3

FY2021Q4

FY2022Q1

FY2022Q2

FY2022Q3

FY2022Q4FY2023
Q1

Manned

27.7

30.3

36.7

45.4

56.8

68.7

83.0

95.4

111.6

126.0

142.1

26.1

28.0

29.1

30.9

33.6

39.8

42.3

43.2

44.6

45.6

47.0

Sold byothers

13.6

14.4

14.9

16.7

16.7

16.4

17.9

17.7

18.0

17.9

18.5

Total

67.3

72.7

80.7

93.1

107.2

124.9

143.2

156.3

174.2

189.5

207.7

Unmanned(IoT)

Copyright 2022 GMO Financial Gate, Inc.

QoQ
(%)

YoY
(%)

+16.1

+59.1

(+12.8％)(+71.3％)

+1.4

+4.7

(+3.1％)(+11.0%)

+0.6

+0.6

(+3.6％)(+3.8%)

+18.2

+64.5

(+9.6％)(+45.1%)32

Appendix

5
Copyright 2022 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 2022 GMO Financial Gate, Inc.

34

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.

FG

PG
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 2022 GMO Financial Gate, Inc.

１Q

Time

35

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

Stock Revenue

etc

Points Vendors
Purchase

IoT

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

3
Comprehensive
Clearing

Acquiring
Business

Clearing

QR Code Payment
Vendors

Stock Revenue

Metered Parking
etc
EV Meter

Copyright 2022 GMO Financial Gate, Inc.

36

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 Q1)

Initial

67.9％

Stock

8.0％

Fee

15.9％

Spread8.2％① Terminal
Sales
Business② Payment
Processing
Business

Stock Model Rev③ Acquiring
Business

Copyright 2022 GMO Financial Gate, Inc.

37

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 2022 GMO Financial Gate, Inc.

Spread Revenue

38

Image of rise in Rev & OP

Business Model

Phase1: Focus on sales/activation of payment terminals and revenue will be fluctuated.
Phase2: Expansion of Stock-Model revenue.

Increase of Market Share (approx. up to 2025)

Rise in Profit Margin

Revenue: Increase at a CAGR of 25% or more, although the extent of increase will vary from period to period

Operating profit: Continue to grow 25% or more every fiscal year
RevenueOP

Sales may fluctuate significantly from period to period

Copyright 2022 GMO Financial Gate, Inc.

39

Leveraged Growth Model

Business Model

Fee and spread revenue are expanding with the market /growth in membership merchants.

Leveraged Growth
N＋1
Stock revenue

N
Stock revenue

Stock-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 2022 GMO Financial Gate, Inc.

40

Details on each revenue ①
InitialBusiness Model

Content

Payment terminal
sales

This is a sales revenue of payment terminals from merchants or credit card companies.
All of first, we purchase hardware from manufactures. And confirm certain measures of
payment methods that each merchant needs to accept. Then make these methods toconnect to our processing center（Occasionally, we put some customization to theseterminals)

Softwaredevelopment

It is a type of development that meets customers needs such as widening acceptablepayment measures and adding point-payment functionality

Stock

Rev Model• Terminal Selling Price × Units Sold
✓ There’re around 10 types of terminals✓ Price range is from about ¥20K up to ¥100K• No. of Deals × Ordered value✓ Since software development is tailor madetype revenue, deal size and margin vary fromtime to time

Content

Data sharing

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
as monthly fixed fee

Rev Model• No. of contracts × Service Price

Rental(Mobile terminal)
Mobile SIM

It is a SIM card fee to use mobile type terminals. We charge it as monthly fixed fee

Processing

It is a processing fee based on monthly fixed rate

(Monthly fixed fee model)✓ Service price is around ¥500 to ¥1K per
terminal per month

It is a service to rent mobile type terminals that enable merchants to use them in wirelesssetting. We charge it as monthly fixed fee*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 vary depending on thesize of contract etc..

Generally, the economics of services above vary depend on merchants. And there are services that some merchants do not apply
Copyright 2022 GMO Financial Gate, Inc.

41

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 2022 GMO Financial Gate, Inc.

Rev Model

GMV of Agent Contract
×
Spread fee we charge (about 0.3～0.4%)42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

Image of linkage ratio to the number oftransaction volume

High

4.92
5.00

4.71

4.50

4.03
4.00

③
②
①

4.39

3.87

3.78

4.12

3.74

3.59

New
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
Q1
21/9期
FY2021

1Q

Q2
21/9期
FY2021

2Q

Q3
21/9期
FY2021

3Q

Q4
21/9期
FY2021

4Q

Q1
22/9期
FY2022

1Q

Q2
22/9期
FY2022

2Q

Q3
22/9期
FY2022
3Q

Q4
22/9期
FY2022
4Q

Q1
23/9期
FY2023

1Q

Copyright 2022 GMO Financial Gate, Inc.

43

Software assets and depreciation

Business Model

Assets, mainly software assets, increased due to the development investments for large merchants.
Depreciation and amortization expenses are also on the rise, but will contribute to the expansion ofstock-type revenues in the future.

1800

140

Software assets (millions of yen)
ソフトウェア資産(百万円)
1600

減価償却費(百万円)
Depreciation & Amortization (millions of yen)

Due to office expansion Lump-sum depreciationof some equipment / facilities
104

1400

89

1200

1000

120

74
67

100

Assuming accumulation
through active investment
for the future growth.

80

69

800

60

600

400

653

782

989

840

990

40

20

200

0

0
2022/9期1Q
End of Q1

2022/9期2Q
End of Q2

2022/9期3Q
End of Q3

2022/9期4Q
End of Q4

2023/9期1Q
End of Q1

FY2022

FY2022

FY2022

FY2022

FY2023Copyright 2022 GMO Financial Gate, Inc.

44

Number of Employees(Consolidated basis)

Business Model

Plans a net increase of 10 to 15 employees per fiscal year to achieve the management benchmarks.
Assumed composition of work force is approximately 40% sales, 40% systems, and 20% administration.

Plan to hire 10-15 people (consolidated basis) each fiscal year

Plans

Sales
SystemAdministration

96

Sales：
Talents who can build alliances andpromote solutions to merchants'
issues.

100

81

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

58

Administration：
Talents who can promote theestablishment of an advanced
management system in line withbusiness expansion.
End
of Q4
20/9期末FY2020End of Q4
21/9期末FY2021

End of Q4
22/9期末FY2022End of Q1
22/9期1Q末FY2023

Endof Q4
23/9期末FY2023Copyright 2022 GMO Financial Gate, Inc.

End of Q4
24/9期末FY202445

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 2022 GMO Financial Gate, Inc.

46

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 Stock revenue varies depending on thetype of merchants and terminals

merchant D
merchant F
merchant E
Copyright 2022 GMO Financial Gate, Inc.

47

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

Stock 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 2022 GMO Financial Gate, Inc.

48

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 2022 GMO Financial Gate, Inc.

：Realization of therevenue varies fromcontract to contract49

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 2022 GMO Financial Gate, Inc.

50

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

Stock-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 2022 GMO Financial Gate, Inc.

51

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)¥278 trillion*2(2020)* 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)¥0.2
trillion¥95 trillion*1(2022)GMO Financial Gate Transaction value
in IoT/Unattended business¥2.5
trillion

Market foroffline cashless (face-to- face)payments

GMO Financial Gate TRX value(FY2022 Actual)◼ To achieve ¥1.5 billion in operating profit for FY2024：
Expand IoT/Unattended business driven by contactless payment(touch payment) and unattended registers(*1) Source: Cashless Roadmap 2019, PAYMENTS JAPAN; Current Status and Future Forecasts for Online Payment Service Providers, 2018, Yano Research Institute Ltd.
(*2) Source: Cabinet Office, Government of Japan(*3) GMO Financial Gate internal forecast based on statistical data published by the Cabinet Office, Government of Japan, the Japan Vending System Manufacturers Association, and the Japan Parking Business Association(*4) Source: Japan Ministry of Economy, Trade and Industry

Copyright 2022 GMO Financial Gate, Inc.

52

Growth trend of domestic offline cashless market

Market Environment

The market for offline cashless payments is currently ¥92 trillion, six times larger than the
online market. Cashless penetration is expected to rise to as much as 80%, driven by
government-led cashless policies.
（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

94.5

100

50%

80

83.4

79.3

40％

40%

32.5%

60

30%
29.7%

40

20

20%
19.3

20.7

21.8

23.0

24.3

25.7
10%

0

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

Source: Cashless Roadmap 2019, PAYMENTS JAPAN; Yano Research Institute Ltd.

Copyright 2022 GMO Financial Gate, Inc.

53

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 grow.
Transaction Value
Composition

Transaction Volume
2019

2020

2021

Credit

89.7%

86.8%

85.3%

Debit

2.1%

2.5%

E-money

7.0%

QR code

1.2%

2019

2020

2021

Credit

60.7%

58.2%

55.3%

2.8%

Debit

1.8%

2.3%

2.5%

7.0%

6.3%

E-money

33.1%

27.1%

22.8%

3.7%

5.6%

QR code

4.3%

12.4%

19.4%

(Unit : trillion yen)

(Unit : 100 million yen)Transaction value

120
CreditE-money

Debit

30

1.0
1.7
5.8

3.2
2.1
6.1

Credit
5.3
2.7
6.0

74.9

81.4

20

Debit

QR code

4.9

15

73.8

E-money

25

20

60

40

Transaction volume(absolute value)

QR code100

80Composition

0.8
0.4
6.2

2.7
0.5
5.9

0.7
5.7

10

5

11.4

12.7

13.9

2019

2020

2021

0

0
2019

2020

2021

Source: Cashless Roadmap 2022, Cabinet Office of Japan

Copyright 2022 GMO Financial Gate, Inc.

54

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
IoT terminal sales in Q1 were strong with a net increasein active terminal QoQ (+1,400 units)
IoT terminals 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)（Unit : 1,000）

Self-checkout
registerCoin-operated
washing
machines

47.0

33.6

• Retailers moving into offices
26.1

28.0 29.1

30.9

21.5

• COVID-19
Metered parking/
EV chargers

44.6 45.6

39.8• Obtaining inbound demand• Revision of the Pro-Sales Act

Coffee42.3 43.2

14.1

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

OfflineMarket

4 million
Source: The Japan Vending System Manufacturers Association, Japan Ministry of Health Labor and Welfare, Yano Research Institute Ltd.

Copyright 2022 GMO Financial Gate, Inc.

55

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）

6,000
Government’s target
by 2030

6,000

5,000
4,000

3,000

3,000

Achieved back in 2018

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

2,000
1,000

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

0

Hotel/Travel(medicine/cosmetics)

High-end retail/
Department
store

IoT
Vending machines/Selfcheckout machines

Service/
LeisureOne dollar
shopElectronics
chain-retailers

Medical /ClinicPublictransportation(Train/bus etc.)
July to September：
Seasonality&
Trend of recovery in inboundrelated demand

Number of visiting foreigners (Monthly)（Unit : 10K）
350

December 2022: 1.37 million

300

This is the first time since February 2020 thatthe number of visitors reached over 1 million.

250

Transaction volume

Hotel/Travel
Merchant B

Transaction value(GMV)

400,000

350,000

300,000

250,000

200,000

200

Seasonality＆
Quasi of SOE

150

150,000

100,000

100
50,000
50

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

21/6

21/5

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

21/4

0
0

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

Copyright 2022 GMO Financial Gate, Inc.

56

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 2022 GMO Financial Gate, Inc.

57

Strategy to Maximize Transaction Value

Growth Strategy

Maximize GMV through a new processing network and by pursuing B-to-B alliances.
(*1)

Offline Cashless (face-to-face)Market (2025 E)

GMV： ¥128 trillion/year

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

GMV： ¥95 trillion/year

Continuous
GrowthAim to achieve
morethan 10x+α
GMV in toward 2030
with achieving
higher growth rate
than market.

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

GMO-FG(*2)

GMV：¥26.5 trillion/year

GMV：¥2.5 trillion/year

approx.

10x2022

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 2022 GMO Financial Gate, Inc.

58

Progress in Unmanned Terminal (IoT) Business

Growth Strategy

Strengthening alliances in the unmanned terminal (IoT) field in response to the trend toward manpowersavingPromoting various projects with an eye on future data monetization

To be released

Hotel/golf course self
checkout machine

Flow model biz

2023

2022

Launched

Oct

Dec

Progress

Mar

Jun

Sep
・Received orders for successor units of installed
payment terminals
・Terminals delivered in 2Q, installation started in 4Q
・Fees and spreads for existing terminals remained
steadyReplacement of existing
installed terminals

Delivery of approximately 40,000 payment
terminals completed
Fees and spread revenue from terminal operation

Stock model biz*Changed fromprevious material

Expansion into Agent contract business

Parking lot
checkout machine

Flow model biz
Stock model biz

ticket machine

Self checkout register

・Full-scale operation started for a major parking facility
operator
・ Development of electronic money and QR code payment
systems has been completed at several vendors.
Stock, fee, and spread revenues from terminal operations
・ Plans to expand to outdoor payment machines other thanthose used in parking garages
DX Deployment*No change from previous
DX: Digitalization of parking tickets, planning to unify online reservation and payment settlement
material

Commenced full-scale operations for a major parking facility operator

Flow model biz

Growing demand associated with New-Normal lifestyles after COVID

Stock model biz

Electronic money and QR codes havebeen developed and tested.

Flow model biz

Expansion of Stock-Modelrevenue Adopted as a successor
terminal of a major ticket
vending machine vendor

Demonstrations in
multiple smart stores

New Topic

・ Received orders for successor machines from a major
ticket vending machine vendor with whom we have an
existing alliance・ Completed development of electronic money and QR code
payment systems for several other ticket vending machine*Changed fromvendors
previous material
・ Introducing terminals at self-checkout counters in 100-yen

discount stores and large shopping malls
・ Aiming for further expansion as a core area of IoT payment

Stock model biz

full-scale operation

terminals*No change from previous
material

Beverage and vending
machines/Coffee Machines

Flow model biz
Stock model biz

Started installing new beverage vending machine
vendors
Switchover installation of terminals for beverage vending
machines at highway SAs
Began installing payment terminal-less QR payment for cold food vending machines

New Topic
・ Began introducing terminal-less payment (code payment on
LCD panel) for cold food vending machines.

*No change from previous
material

Copyright 2022 GMO Financial Gate, Inc.

59

Growth Strategies for 2025 and Beyond

Growth Strategy

For 2025 and beyond, we aim to grow stock-model revenue in the payment-related field.
Aim at a continuous 25% growth in OP through business diversification.
：High inbound tourism demand

Image of service expansion

Area of focus
Money services / Payment related New Biz

OP (100 million yen)

• Fintech (Lending / Factoring / BNPL etc.)

Profitability increase phase100

Data service• DX/marketing support using payment data

OP of 25% or more
Continuation of growth curve
Money services/Payment related New Biz

Diversification of alliancestrategies

IoT (Mobility)• Contactless payment processing fortransportation systems (trains, buses, etc.)

Data service

IoT (Vending / checkout machines)

Stock-Model Revenue

Market share increasephase• With & post COVID-19 / labor-saving / selfservice support

IoT (Mobility)

Payment terminals (excluding IoT) / Payment processing / Acquiring

15
Payment Center• Continue to acquire a balanced
member merchant base, regardless of
size or industry, as our businessfoundation

Payment terminals(excluding IoT)

Payment terminals (excluding IoT) / Payment
processing / Acquiring

Initial & Stock-Model

IoT (Vending /checkout machines)

Time
2021

2025

2035

Copyright 2022 GMO Financial Gate, Inc.

60

Data Services in the IoT Domain

Growth Strategy

Started providing payment data service for merchandise vending machines, contributing to stock-model
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 stock-model
revenueAchieve efficient staffing andfood loss reduction

Vending
machinemanufacturer

DX Support

Provide payment data (sales
information)

Image of introduction

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 &Stock-Model

Payment Center

Stock-Model
Revenue

Present

phase ３
DX in member merchants(sales improvement)

Time
Copyright 2022 GMO Financial Gate, Inc.

61

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 2022 GMO Financial Gate, Inc.

Vending Machines

Metered Parking
EV Meters

Laundries

Entertainment

TravelWholesalers

Real Estate

Occupation/
Vocational Schools

Healthcare/Welfare

Hotels/Inns

Bus/Train

Restaurants

Retail Stores

Merchants

62

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 2022 GMO Financial Gate, Inc.

63

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 2022 GMO Financial Gate, Inc.

64

Government Promotion of Cashless Payments

Industry Topic

METI announced its Cashless Vision policy to encourage cashless payments. We expect the Japanese
cashless market to expand rapidly in response.
Impact on our 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

Jul 2020

My Number Point

Cashless Consumer Returns Policy

Oct 2019

Consumer 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 terminalsExpansion of mobility payment needs

In line with the cost of adapting to the new banknotes
Stimulus to introduce cashless payment terminals

Apr 2028

Apr 2025

Apr 2024

Apr 2023

Jun 2022

Jan 2022

Jul-Sep 2021

Sep 2020

Jun 2018

Apr 2018

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（22

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 IC

Copyright 2022 GMO Financial Gate, Inc.

Expanding needs for small payments due to the spread of
terminal-less payment taps to pay/phones

65

Expansion of credit card payment eligibility

Industry Topic

The "Cashless Law" will go into effect in November 2022. Expansion of areas where payment can bemade by credit card.

Feb 2008～ national pension contribution

Application ofindividual law
provisions

Jan 2017～ national tax
Apr 2019～ Patent and other fees

Dec 2021～ Unmanned Aircraft Registration Fee

2022 Vehicle inspection and registration fee
2022～ Passport issuance fee
2024～ Registration-related fees

Application ofCashless Laws

Expandingconvenience in the
public sector

Jul 2021～ tariff (import tax)

2024～ Traffic Anti-Counterfeit

Copyright 2022 GMO Financial Gate, Inc.

66

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

Billing

Our monetization points

1

0.16

Consumers➂Remittance fee
0.5④Network fee
0.14
0.3

➄Acquiring fee⑥Others
0.3

0Copyright 2022 GMO Financial Gate, Inc.

67

COVID infections

Industry TopicHigh level of infected cases observed in the 8th Wave, but movement toward normalization of economic
activity continues.

Number of new cases of COVID-19 infection
300,000

7th wave

8th wave

250,000

Government policy to change
designation from "Category "to "Category

200,000

150,000

5

100,000

50,0002

Source: Ministry of Health, Labor and Welfare

Q1

Q2

Copyright 2022 GMO Financial Gate, Inc.

Q3

Q4

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

0

Q1
68

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 FY2022
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 2022 GMO Financial Gate, Inc.

69

Share holder structure

GMO-PG

Company Profile

Japanese institutional investors

Other enterprises

Foreign institutional investors

Individuals

100%

90%

80%

70%

60%

13.19

15.11

21.87

18.48

8.14

1.54
6.35

3.15
6.21

59.69

57.05

57.05

End of September 2020

End of March 2022

End of September 2022

16.26

7.84
8.07

50%

40%

30%

20%

10%

0%

Copyright 2022 GMO Financial Gate, Inc.

70

Promotion of DX introduction to improve business efficiency
Department
in charge

Company Profile

Content

Whole

VDI (virtual desktop) implementation for enhanced security

Whole

Integrated operation of scheduling, internal portal, workflow, attendance system, andexpense reimbursement

Whole

Paperless by promoting the introduction of electronic signatures

Legal

Automated credit management operations by introducing RPA. Reduction of workload
by up to 4 days per month

Accounting

Systematization of payment operations, electronic storage of receipts and otherevidence

HR

Centralized management of human resource systems through the introduction of a
new system

GMO-FG
Cashless Platform

Full compliance with PCI DSS for services providing
Continued to obtain Privacy Mark certification
Copyright 2022 GMO Financial Gate, Inc.

71

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 2022 GMO Financial Gate, Inc.

49%

72

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¥1,618 Million(end of December 2022)
GMO Payment Gateway, Inc.
Representative Director, President
Kentaro Sugiyama
Director
Akio Aoyama（Sales Division Executive Manager）
Director
Tomonaga Fukuda（System Division Executive Manager）
Director
Tomoki Tamai（Administrative 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 2022 GMO Financial Gate, Inc.

POS Model（As of February 14, 2023）

73

T h a n k

y o u

GMO Financial Gate, Inc.
(TSE Growth 4051)
IR Web site URL

https://www.gmo-fg.com/ir/

Copyright 2022 GMO Financial Gate, Inc.