Focus on the Number of Active Terminals, Number of Sales Transactions Processed, Revenue Growth Rate, and Operating Profit Growth Rate

「During the interim consolidated accounting period, adoption of the company's cashless platform continued to expand among merchants in everyday-use industries and business formats, and the number of payment transactions and GMV (payment processing volume) increased steadily. Revenue was ¥10,515.437 million, up 16.2% year on year, and operating profit was ¥1,559.824 million, up 12.8%.」

「GMV (payment processing volume) for the fiscal year was approximately ¥8.2 trillion, 1.3 times the previous year's level. The main factor was steady progress in the sale and activation of payment terminals through alliance partners.」

「Operating profit was ¥1,382.864 million, up 48.5% year on year. The factors behind the strong operating profit growth compared with the previous interim consolidated accounting period included: (1) growth in highly profit-contributive recurring revenue accompanying expansion in the number of payment transactions and GMV (payment processing volume); (2) an increase in high-margin development revenue as progress was made on preparations for large-scale projects scheduled for future implementation; and (3) a higher proportion of high-margin terminals in payment terminal sales, which account for most initial revenue. Progress against the full-year operating profit plan was also steady.」

「Operating profit was ¥922.731 million, up 45.2% year on year. The factors behind the strong operating profit growth included: (1) a higher proportion of high-margin IoT terminals in payment terminal sales, which account for most initial revenue; and (2) growth in highly profit-contributive recurring revenue as the number of payment transactions and GMV (payment processing volume) expanded. The company also actively pursued hiring, employee returns and various growth investments to support growth during the second quarter, while achieving strong operating profit growth through improved operating leverage (Note) accompanying revenue growth.」

「Revenue was ¥4,496.898 million, up 37.6% year on year. During the three months ended 30 June, GMV (payment processing volume) expanded across many merchant categories using the company's face-to-face cashless payment platform, due to increased consumer spending during the year-end shopping season and a steady increase in active terminals, which the company considers important. Continued growth in the number of visitors to Japan also appears to have contributed to inbound demand to some extent, and the number of payment transactions and GMV, the company's key KPIs, increased steadily.」

「GMV (payment processing volume) for the fiscal year was approximately ¥4.1 trillion, 1.7 times the previous year's level. The main factor was steady progress in the sale and activation of payment terminals through alliance partners.」

「Operating profit was ¥976.666 million, up 73.2% year on year. Although the profitability of initial revenue centered on payment terminal sales is not high, initial revenue in the third quarter exceeded plan, and the increase in gross profit in absolute terms contributed to operating profit growth. In addition, against the backdrop of strong initial revenue, growth in active terminals and the number and value of payment transactions enabled the company to steadily expand its highly profit-contributive recurring revenue. It achieved strong operating profit growth while making sufficient investments in hiring, employee returns and various growth initiatives to support future growth.」

「The number and value of payment transactions, the Group's key KPIs, increased steadily compared with the first quarter.」

「The number and value of payment transactions, the Group's key KPIs, increased steadily.」

「In the third quarter of the fiscal year (April to June 2022), initial revenue, centered on payment terminal sales, increased. Recurring revenue, comprising stock, fee and spread revenue, also built steadily, mainly due to growth in the number of active payment terminals and the recovery in transaction volume at merchants, particularly restaurants and travel and leisure businesses, following the lifting of priority preventive measures related to COVID-19 issued in January 2022. As a result, revenue for the nine months ended 30 June 2022 was ¥7,446.363 million, representing progress of 87.1% against the full-year consolidated revenue forecast of ¥8,550 million announced at the beginning of the fiscal year, exceeding the percentage of the fiscal year elapsed. Operating profit for the nine months ended 30 June 2022 was ¥563.736 million, representing progress of 76.5% against the full-year consolidated operating profit forecast of ¥737 million announced at the beginning of the fiscal year.」

「Operating profit was ¥370.952 million, up 16.3% year on year. The second quarter of the fiscal year (January to March 2022) was a difficult period for growth in recurring revenue, comprising stock, fee and spread revenue, due to seasonal declines in the number and value of payments and the implementation of priority preventive measures to prevent the spread of COVID-19. However, profits continued to accumulate through ongoing efforts to promote the sales and activation of payment terminals. The company also invested an appropriate amount in initiatives including continued hiring to support growth, while maintaining appropriate cost management. As a result, it secured steady year-on-year growth and finished above the operating profit forecast of ¥359 million announced at the beginning of the fiscal year for the six-month period ended 31 March 2022.」

「Steady sales and installation of payment terminals contributed to an increase in active terminals, while growth in the number and value of payment transactions expanded the relatively high-margin recurring revenue stream. In addition, appropriate cost management alongside continued hiring to support growth secured steady year-on-year growth, with progress against the full-year operating profit plan reaching 28.5%. Progress against the full-year net profit plan was 30.1%.」

「The management metrics targeted by the Group are payment processing volume and operating profit growth.」

「Initial revenue achieved growth above the management target, primarily because sales of stera terminals, which the company began handling in July 2020, continued to grow. Sales of payment terminals related to a major international event also increased during the third quarter of the fiscal year under review as a one-off factor.」

「The continued development of merchants across multiple industries expanded the number of active terminals, resulting in steady growth in fixed-fee revenue and processing-fee revenue.」

「The management metrics targeted by the company are the number of active terminals, the number of processed sales transactions, sales growth and operating profit growth.」