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ROBOT PAYMENT 2026.08.12 FY2026 2nd Quarter Financial Results Presentation Materials ROBOT PAYMENT INC . TSW Growth Market 4374
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2 Contents 01 Financila Highlights 3 02 FY2026 2nd Quarter Corporate Results 5 03 FY2026 2nd Quarter Results by Business Segment 13 04 Business Highlights 22 05 Growth Strategy Update 29 06 Expenses 36 Appendix 39
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01 3 Financial Highlights
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Unit: Million JPY 2Q FY2025 Result 2Q FY2026 Result YoY Change FY2026 Forecast FY2026 Achievement Rate of the Forecast Net Sales 1,562 1,785 +14.3% 3,683 48.5% Gross Profit 1,421 1,641 +15.5% 3,316 49.5% SG&A Expenses 1,037 1,195 +15.3% 2,466 48.5% Operating Profit 384 446 +16.0% 851 52.4% Net Profit 268 326 +21.4% 587 55.5% 4 FY2026 2nd Quarter Results Cumulative sales for the second quarter grew 14.3% year-over-year, and the company is making steady progress toward its earnings forecast. ※ All figures are shown in millions of yen, with decimals rounded to the nearest whole number.
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02 5 FY2026 2nd Quarter Corporate Results
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660 695 723 732 793 820 847 866 889 678 714 742 748 814 834 861 881 904 0 200 400 600 800 1000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q Spot Revenue Recurring Revenue 6 Revenue Trend (Quarterly) Driven by recurring revenue(Note), revenue grew by 11.1% year-over-year. +11.1% (Revenue / Unit: million yen) (Note) Recurring revenue: Revenue generated on a regular basis, calculated by subtracting initial costs from total revenue
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7 Operating Profit Trend (Quarterly) Operating income fell 1.4% year-over-year as investments in new business initiatives and hiring continued, but progress is on track as planned. (Operating Profit / Unit: million yen) 116 148 99 160 224 218 172 225 221 0 100 200 300 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q -1.4%
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8 KPI Dashboard All products are growing steadily and continue to achieve record-high sales. Recurring Revenue Ratio (Note 2) Churn Rate (Monthly / Revenue-based) (Note 4) （Unit: AC） Customer Unit Price (Note 3) (Note 1) Monthly recurring revenue per account (monthly revenue minus setup fees) as of the end of each period (Note 2) The percentage of recurring revenue as a share of total revenue for each product in the final month of each period (Note 3) The monthly churn rate calculated based on revenue, defined as “recurring revenue generated by customers who churned this mont h ÷ total recurring revenue from all customers in the previous month,” with the average value for each month from April through J une. (Note 4) ARR: An abbreviation for “Annual Recurring Revenue,” calculated by multiplying the recurring revenue for the final month of e ach period (the total of revenue generated continuously over the service period) by 12 (to annualize it). ARR (Note 1) Number of Accounts Corporate Subscription Pay Billing Management Robo（Unit: yen） 95.5% 97.4% 97.8% 98.0% 98.3%96.1% 97.4% 98.0% 97.8% 98.1% 94.5% 97.4% 98.2% 98.2% 98.6% 22/12 2Q 23/12 2Q 24/12 2Q 25/12 2Q 26/12 2Q 0.55% 0.56% 0.55% 0.59% 0.72% 0.50% 0.56% 0.50% 0.44% 0.67% 0.64% 0.60% 0.60% 0.74% 0.76% 22/12 2Q 23/12 2Q 24/12 2Q 25/12 2Q 26/12 2Q 6,946 8,074 9,167 9,631 9,992 6,273 7,268 8,253 8,661 8,897 673 806 914 970 1,092 22/12 2Q 23/12 2Q 24/12 2Q 25/12 2Q 26/12 2Q 19,024 21,550 24,042 27,207 29,286 12,827 14,643 16,341 18,511 19,724 76,787 83,831 93,575 104,850 106,681 22/12 2Q 23/12 2Q 24/12 2Q 25/12 2Q 26/12 2Q 620 811 1,026 1,231 1,409 966 1,279 1,618 1,933 2,106 1,613 2,112 2,645 3,164 3,515 0 1,000 2,000 3,000 4,000 22/12 2Q 23/12 2Q 24/12 2Q 25/12 2Q 26/12 2Q
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9 Balance Sheet (Unit: million yen) End of 2Q FY2025 End of FY2025 End of 2Q FY2026 Change from Previous FY-End Current Asset 6,961 7,175 6,673 -501 Non-Current Asset 509 1,340 1,578 +237 Total Assets 7,469 8,515 8,251 -264 Current Liabilityes 6,421 7,221 6,708 -513 Non-Current Liabilities 0 0 0 ー Total Liabilities 6,421 7,221 6,708 +513 Share Capital 941 1,215 1,479 +264 Others 107 79 64 -15 Total Net Asset 1,048 1,294 1,543 +249
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10 About Deposits (Cash Flow Overview) Customer revenues are first deposited to us by banks and card companies, then remain with us for up to 50 days before being remitted to our clients. This is due to the mismatch between the inflow cycle from payment operators (15th-cut end-of-month payment / month-end cut next-15th payment) and the outflow cycle to clients (mainly month-end cut next-month-end payment / month-end cut 20th of the following month). 15th month-end Revenue from the 1st–15th This Month Next Month 1st Deposited to us at month-end Revenue from the 16th–month-end Deposited to us on the 15th of Next Month Remitted to clients at month- end of Next Month Note: In the case where payments from our company to clients follow a month-end cut / next-month-end payout cycle.
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11 About Deposits (Impact on the Balance Sheet) While customer funds remain with us, our balance sheet shows increases in cash and deposits held. When those funds are remitted to clients, the corresponding cash and deposits decrease. Cash① Deposits received Other Assets Other Liabilities & Net Assets Assets Cash② Liabilities/Equity Other Assets Other Liabilities & Net Assets Assets Liabilities/Equity When deposits are retained If deposits were not retained Cash②
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12 About Equity Ratio Equity Ratio 18.4% Adjusted Equity Ratio 70.9% Equity ¥1,522 million Total Assets ¥8,251 million Equity ÷ Total Assets = 18.4％ Equity ¥1,522 million Total Assets ¥8,251 million Equity ÷ (Total Assets - Deposits) =70.9％ Deposits ¥6,105 million (Note) Based on the aggregated results of financial statements for the fiscal year ending March 2025 published by Tokyo Stock Exchange, Inc. This level is higher than the average of 31.8 for all listed companies in the information and communication industry (Note) Deposits arise when proceeds from payments are received by our company from settlement providers, and we then remit the funds to the customer (merchant). Excluding deposits unique to our business model, our effective equity ratio stands at 70.9％. We have no long-term borrowings and maintain a highly secure financial position. This strong capital base enables sustainable long-term growth and flexible business expansion going forward.
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03 13 FY2026 2nd Quarter Results by Business Segment
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03-1 FY2026 2nd Quarter Segment Results Subscription Pay 14
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15 Subscription Pay Revenue Trend (Quarterly) (Revenue / Unit: million yen) Driven by strong new orders and increased transaction volumes from existing customers, the average revenue per customer also rose, up 9.5% year-over-year. 408 424 445 441 487 499 512 519 536 417 434 455 450 499 508 521 527 546 0 100 200 300 400 500 600 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q Spot Revenue Recurring Revenue +9.5%
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16 Subscription Pay Key KPI Trends ❶ (Quarterly) Average revenue per customer increased year-over-year, and the number of accounts remained steady. (Average Revenue Per Customer / Unit: JPY) (Number of accounts / Unit: accounts) ARPU Number of Accounts 8,173 8,350 8,487 8,548 8,661 8,770 8,818 8,844 8,897 0 2,000 4,000 6,000 8,000 10,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q 16,341 17,381 17,792 17,231 18,511 18,604 19,025 19,394 19,724 0 5,000 10,000 15,000 20,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q +2.7%+6.6%
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17 Subscription Pay Key KPI Trends ❷ (Quarterly) Transaction volume increased by 8.9% due to growth in the number of accounts and the expansion of our customers' businesses. The number of payment transactions has stabilized following the initial impact of the mandatory implementation of 3D Secure in the fourth quarter of the previous year, and is currently up 11.7% year-over-year. Transaction Volume Transaction Count （Transaction Count/Unit: thousand transactions）（Transaction Volume/Unit: million yen） 4,146 4,479 4,154 4,084 3,883 3,861 4,202 4,210 4,336 0 1,000 2,000 3,000 4,000 5,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q 53,779 56,009 55,726 55,600 59,607 60,184 62,662 63,107 64,924 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q +8.9% +11.7%
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03-2 FY2026 2nd Quarter Segment Results Billing Management Robo 18
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19 Billing Management Robo Revenue Trend (Quarterly) Revenue increased by 13.5% year-over-year due to higher average revenue per customer and an increase in the number of new customers. (Revenue / Unit: million yen) 252 271 278 291 306 319 332 346 350 257 277 285 295 313 324 338 352 355 0 50 100 150 200 250 300 350 400 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q Spot Revenue Recurring Revenue +13.5%
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20 Average revenue per customer increased by 1.7% compared to the same period last year. New customer acquisitions remained steady, with the total number of customers up 12.6% year -over-year. Billing Management Robo Key KPI Trend ❶ (Quaterly ) Number of AccoutsARPU (Average Revenue Per Customer / Unit: JPY) (Number of accounts / Unit: accounts) 914 925 936 943 970 996 1,031 1,060 1,092 0 200 400 600 800 1,000 1,200 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q 93,575 101,619 100,348 104,768 104,850 105,999 101,602 108,745 106,681 0 20,000 40,000 60,000 80,000 100,000 120,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q +1.7% +12.6%
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21 Billing Management Robo Key KPI Trend ❷ (Quaterly ) Both the total amount billed and the number of invoices issued increased significantly compared to the same period last year. Number of Invoices IssuedInvoice Amount (Number of Invoices Issued/Unit: thousand invoices)(Invoice Amount/Unit: million yen) 184,428 186,187 191,772 222,323 258,300 268,843 388,576 367,573 566,199 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q 1,141 1,176 1,293 1,296 1,336 1,384 1,573 1,939 1,788 0 500 1,000 1,500 2,000 2,500 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q +33.8%+119.2%
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04 22 Business Highlights
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23 Progress is going well for both existing and new business initiatives. Progress on 2026 Business Strategy 2026 Business Strategy 2026 2Q Progress Existing Initiatives Billing Management Robo series New Initiatives • Expand target industries via FY2025 feature enhancements. • Expand value via integration with Receivables Collection Robo. Subscription Pay series • Expand payment functions; provide payments to new industries. • Strengthen CRM; scale the sales org. • Expand receivables handled by broadening payment methods. • Cut costs and speed up credit screening via automated credit checks. Invoice “Marunage” Robo • Strengthen relationship-driven sourcing. • Strengthened team with newly hired M&A professionals. M&A・CVC • Launch the service; validate unit economics. • Build a repeatable sales playbook. Receivables Collection Robo • Enhance DX features; prepare remittance functions. • Obtain Electronic Payment Services Provider registration. Overseas Remittance DX • Test marketing to Subscription Pay customers. • Strengthen receivables guarantee capability (via partnerships). RBF • Promoting OEM Projects with Lux Corporation. • Automatic Integration with the Debt Collection Robot to Launch in June. • QR Payment API Development. • Expanding B2B Credit Card Payment Sales and Strengthening Collaboration with Robo-Sales. • Establish specifications and provision schemes for integrating additional payment methods. • Establish specifications and provision schemes for integrating additional payment methods. • Leveraging the Professional Networks of Management and Specialists, as Well as External Networks. • Establishing an Internal Review System for M&A and Capital and Business Alliances. • Begin Verification of Post-Release Unit Economics. • Launch of seminars, trade shows, and sales efforts targeting our existing customers. • Completion of the Specifications Document Based on Interviews with PoC Companies. • Application in progress. • Scheme Coordination with Partner Companies Completed; Testing Underway. • Discussing Guarantee Schemes with Two Guarantee Companies.
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24 T o p i c Company -wide Yoshio Hirako Appointed Strategic Advisor for Finance Services. Yoshio Hirako Appointed Strategic Advisor for Finance Services Accelerating the launch of new businesses by overseeing strategies and providing practical support for obtaining advanced certifications and licenses. Release Site URL：https://ssl4.eir-parts.net/doc/4374/tdnet/2784561/00.pdf Purpose and Overview To expand our finance business, we need experience in obtaining the necessary qualifications and licenses, as well as expertise in both existing financial systems and the latest technologies; staying abreast of the latest trends in the ever-changing financial industry is essential. Therefore, we have appointed Mr. Hirako—one of Japan’s leading financial practitioners, with experience in establishing Aeon Bank and spearheading the development of governance frameworks for the cryptocurrency exchange industry as CEO of bitFlyer—as our Strategic Advisor for Finance Services.
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25 T o p i c B i l l i n g M a n a g e m e n t R o b o & R e c e i v a b l e s C o l l e c t i o n R o b o This feature seamlessly integrates the two products, which were previously offered separately, enabling us to provide a one-stop solution that automates the entire process—from invoice issuance to payment processing, payment reconciliation, and the collection of outstanding receivables. In today’s environment, where labor shortages are becoming increasingly severe due to a shrinking workforce, this solution significantly reduces the workload and psychological stress on accounting staff, fostering an environment where resources can be reallocated to more creative core business activities. Release Site URL：https://ssl4.eir-parts.net/doc/4374/tdnet/2835651/00.pdf Integrating the Billing Management Robo and the Receivables Collection Robo automate the entire process from invoice issuance to collection reminders. Release of the “Receivables Collection Robo Automatic Integration Connector” option for integration. Feature Highlights 1. Improving operational efficiency and preventing human error through one-stop automation Based on the reconciliation results from the “Billing Management Robo,” only outstanding receivables are automatically extracted. This fully automates the business process from invoicing to collection, while preventing human errors such as duplicate billing and missed collection reminders. 2. Improving Collection Rates Through Multi-Faceted Collection Efforts and Optimal Scenario Design For linked receivables data, the “Receivables Collection Robo” utilizes a variety of collection methods, including email, SMS, and IVR (Interactive Voice Response). It automatically executes the optimal collection scenario based on debtor attributes and the amount owed, thereby maximizing the efficiency of collection operations—which tend to rely heavily on individual staff members. 3. Promoting Digital Transformation in the Accounting Department and the Shift Toward “Creative Work” By entrusting tasks such as issuing and sending invoices, reconciling accounts, and the sensitive and burdensome process of collecting outstanding receivables to the system, you can improve the productivity of the entire accounting department. This makes it possible to reallocate human resources to creative and highly productive tasks that directly contribute to the company’s growth, such as developing more sophisticated financial strategies.
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26 Our “Subscription Pay” and “Billing Management Robot” services were selected as “Leaders”—the highest ranking—in the “ITreview Grid Award 2026 Spring,” held on “ITreview,” an IT product and SaaS review platform operated by IT Cloud Co., Ltd. Release Site URL：https://ssl4.eir-parts.net/doc/4374/tdnet/2795766/00.pdf Billing Management Robo Dramatically Streamlines Accounting Workflows for Partial Payments New “Reconciliation by Invoice Line Item” Feature Released. “Billing Management Robo” has been named a ‘Leader’ for 14 consecutive terms in the Invoice and Quote Creation Software category and for 3 consecutive terms in the Subscription Management System category, while “Subscription Pay” has been named a “Leader” for 14 consecutive terms in the Subscription Management System category, for 10 consecutive terms in the Payment Processing Service category, and for 11 consecutive termsin the Online Payment Service category. T o p i c Subscription Pay & Billing Management Robo
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27 “Subscription Pay,” a service provided by our company, ranked first in revenue share by vendor in the subscription management market, according to the market research report “ITR Market View: Budget, Expense, and Subscription Management Market 2026” published by ITR Co. Ltd. , an independent IT consulting and research firm. Release Site URL： https://ssl4.eir-parts.net/doc/4374/tdnet/2788052/00.pdf “Subscription Pay” Secures the No. 1 Market Share in the Subscription Management Market for the Fourth Consecutive Year. Our “Subscription Pay” service is growing at a rate that exceeds the market average. With a market share of 34.1% in fiscal year 2024 and a projected share of 34.3% for fiscal year 2025, our market share is on an upward trend, and we continue to hold the top market share. T o p i c Subscription Pay
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28 OEM Entered into a capital and business alliance agreement with RAKUS Co., Ltd. on August 12, 2026 Aiming to expand sales, grow the customer base, and increase transaction volume through the OEM provision of “Billing Management Robo” Business alliance presentation materials are scheduled to be posted on our IR website at 4:00 p.m. (JST) on August 14, 2026. Capital alliance to ensure a long-term, stable partnership and reinforce mutual commitment ※For further details, please refer to the timely disclosure dated August 12, 2026, “Notice Concerning a Capital and Business Alliance with RAKUS Co., Ltd. and the Disposal of Treasury Shares through a Third -Party Allotment.” Please refer to RAKUS’s website for details of “RakuRaku Receivables Management.”https://www.rakus.co.jp/rakurakucloud/saikenkanri/ ・Date of Capital and Business Alliance Agreement August 12, 2026 ・Voting Rights Ratio 3.10% ・Disposal Price ¥2,323 per share ・Total Disposal Value ¥278.76million *RAKUS is the sole allottee; no cross-shareholding will be implemented. ・Scheduled Date of Share Acquisition and Commencement of the Alliance August 28, 2026 ・Number of Shares to Be Disposed Of 120,000 shares The two companies will also explore mutual support in areas including business development and sales activities, customer referrals, and promotional initiatives. By focusing on their respective strengths, the companies aim to maximize synergies. The impact of this alliance on financial results for the fiscal year ending December 31, 2026 is expected to be immaterial. “RakuRaku Receivables Management,” launched by RAKUS Co., Ltd. in July 2025, will be relaunched as an OEM product based on our “Billing Management Robo” platform. By combining our product platform for billing and receivables management with RAKUS’s sales capabilities and customer base, we will provide a renewed “RakuRaku Receivables Management” service. Capital and Business Alliance with RAKUS Co., Ltd.
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05 29 Progress on the Growth Story
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30 Product Development Areas Reprinted from the financial results presentation materials disclosed on February 12, 2026 (Full fiscal year ended December 2025) In its full-year financial results for the fiscal year ending December 2025, the company outlined the following product rollout strategy to address a wide range of financial challenges.
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Domestic Transactions Domestic Transaction Payment Infrastructure that Frees Commerce Our customer Billing FlowRemittance Flow Contract management DunningCollectionPaymentBilling AccountingPre-contractQuotation/ Order PlacementPayment Expense Posting Approval Receipt of InvoiceAccounting Pre-contract Overseas Transaction Overseas Transaction Subscription Pay Contract Management SaaS Receivables Collection Robo Billing Management Robo Billing Outsourcing Robo BPO AI Credit Scoring Engine RBF Factoring Credit Assessment Outsourcing Early Collection Guarantee Cross-Border Remittance DX FX Forward Booking Advance Payment BPO (Business Process Outsourcing) Invoice Receipt SaaS Domestic Remittance DX We are researching markets, regulations, and partners in Southeast Asia, and will expand stepwise by priority country (e.g., Indonesia, Vietnam). 1click Postpay We will roll out stepwise, starting with Japanese companies transacting in USD overseas, and expand supported currencies over time. Existing Businesses New Businesses in Preparation New Businesses Under Consideration Contract management DunningCollectionPaymentBilling AccountingPre-contractQuotation/ Order PlacementPayment Expense Posting Approval Receipt of InvoiceAccounting Pre-contract Subscription Pay Overseas Suppliers Domestic Suppliers Overseas Customers Domestic Customers 31 Current Product Rollout Status “Receivables Collection Robo” to Be Released in March 2026 Near-term launches planned for “Cross-Border Remittance DX” and “RBF (Future Receivables Factoring)” Scheduled for release in September Released in March Scheduled for release in September
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32 P r o d u c t V a l u e T h a t C o n t i n u e s t o G r o w T h r o u g h A I a n d D a t a In its full-year financial results for the fiscal year ending December 2025, the company demonstrated that the value of its products will continue to improve by training AI with data, as follows: Reprinted from the financial results presentation materials disclosed on February 12, 2026 (Full fiscal year ended December 2025)
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AI-enabled Subscription Pay AI-enabled Billing Management Robo Automated credit assessment (limit / approval) / fraud scoring Automated collections optimized by payment methodOptimal payment method recommendations / upsell & down-sell alerts AI Customer attributes, contract terms, payment logs Payment delay history, payment logs, historical transaction patterns Approval rates by payment method, historical transaction patterns Billing patterns, contract terms Historical collection patterns, contact history Historical collection patterns, customer attributes AI AI Enhanced capabilities AI usage Accumulated data Accumulated data Automated validation of contract & billing details / automatic detection of billing errors Recommend and execute higher-success dunning actionsEnhanced capabilities: Collection priority scoring / installment collections & factoring recommendations AI AI AI Enhanced capabilities AI usage Data Integration Invoice Issuance Accounting IntegrationCash Application (Reconciliation) DunningPayment Execution Collections Contract Mgmt / Credit Assessment Billing Cycle Setup Document IssuancePayment ExecutionWorkflow Workflow A r e a s W h e r e A I W i l l B e U s e d t o E n h a n c e P r o d u c t F u n c t i o n a l i t y Identification of Target Areas for AI Adoption. 33 Reconciliation AICredit AI MCP Server Receivables Collection AI
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34 Finalized the features to be developed in the target areas and defined a new customer value proposition. A r e a s w h e r e A I i s u s e d t o e n h a n c e p r o d u c t f u n c t i o n a l i t y Implementation Details New Value Proposition Reconciliation AI • Matching Payment and Billing Data Using AI MCP Server ※ • An integration platform that provides operational data and functionality to AI • AI Suggests Collection Priorities and Response Methods Receivables Collection AI • Assess risk based on company information, transaction details, and payment data.Credit AI • Reduce reconciliation work and expedite financial closing and the identification of outstanding payments • Enables information verification and task execution through dialogue with AI • Shortening Collection Times and Improving Collection Rates • Expanding Sales Channels While Minimizing Bad Debts Domain ※MCP（Model Context Protocol)：A standard for connecting generative AI with external business systems and data using a common method. ※MCP Server： A connectivity feature that supports MCP and enables generative AI to integrate with external data and business tools using a common protocol. The AI can access information and perform various operations within the scope of its granted permissions.
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35 AI Product Map AI × Product Key Themes 2026 2027 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul AI Reconciliation AI for Debt Collection Support Credit MCP Server AI Reconciliation Model Improvement Consolidation of Accounts Receivable Collection Operations and Data Accumulation Needs and Technical Validation MCP Server Debt Collection Letter Drafting Agent Data Analysis Agent Extensions To realize product value that continues to evolve through AI and data, we will establish detailed schedules for key themes, verify ROI and feasibility, and promote implementation and improvement in phases. ※ The roadmap shown here is subject to change based on development priorities and future progress. ※ Some projects are still in the research phase, and since the level of certainty varies significantly by topic, there is a possibility that the schedule may change substantially.
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06 36 Expenses
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37 Key Expense Trends (Quarterly) • Remain at the same level as recently. • We will focus primarily on targeted awareness campaigns, digital advertising, and trade show participation, while prioritizing cost-effectiveness. • To establish a competitive advantage in the AI era, we will secure personnel to enhance our customer acquisition capabilities, build an AI-driven development framework, develop new services, and bring development in- house. • Continued Progress in Promoting In- House Production • We will continue to prioritize development productivity and drive feature development and quality improvement while leveraging AI. (Unit: million yen) (Unit: million yen) (Unit: million yen) We are making investments in line with Long-Term Management Strategy, which aims for high growth rates based on the premise of sustained revenue and profit growth. Advertising & Promotion Expenses Salaries & Benefits Development Expenses 90 97 98 91 108 106 111 110 108 108 111 116 0 50 100 150 122 135 137 147 149 162 170 167 176 188 199 214 0 50 100 150 200 75 88 80 79 83 87 95 77 67 77 82 83 0 50 100
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38 Headcount Trend by Job Function A policy to optimize the number of hires in accordance with our HR policy. 45 45 44 46 42 46 47 45 45 42 45 42 42 21 19 22 21 28 25 25 26 25 34 42 42 45 26 27 29 31 35 38 40 40 39 42 37 40 4826 28 29 29 27 27 29 30 31 30 30 33 35 118 119 124 127 132 136 141 141 140 148 154 157 170 23/12 2Q 23/12 3Q 23/12 4Q 24/12 1Q 24/12 2Q 24/12 3Q 24/12 4Q 25/12 1Q 25/12 2Q 25/12 3Q 25/12 4Q 26/12 1Q 26/12 2Q Sales Marketing / Customer Succes Engineer Admin
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Materials designed to provide a deeper understanding of our business and strategy Appendix 39
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Our Growth Story 40
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Growth Story -Contents- 41 41 ❶ Business model further strengthened by AI ❷ Accelerated expansion for exponential revenue growth ❹ Market Growth Potential ❸ Payback concept for existing business investments
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1 42 Business model further strengthened by AI
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Revenue structure not affected by per -user (ID -based) pricing With the spread of AI, tasks previously operated by multiple people may be replaced by AI, potentially reducing the number ofrequired user IDs. Because only a small portion of our revenue comes from ID-based fees, any impact would be limited. Moreover, our product is mainly used by accounting departments handling money flows, where operations already run with the minimum necessary headcount. In addition, human approval is required to execute transfers, so in practice, the number of user IDs does not decrease. 43* Mainly refers to invoice delivery to bill-to companies and payment processing to card companies. Key revenue mix of our service Processing-based fees ID-based fees Revenue composition ※Figures for FY2025 (year ended Dec 2025). approx. 97.5% approx. 2.5% Impact of AI adoption Revenue is maintained because fees are charged per processing of external transactions* While ID reduction may be possible in general, it does not occur in practice in accounting operations Main billable items (Processing-based fees) Spread Fees charged based on the payment amount for transactions where payments are executed and fully collected Storage Fees charged based on processing volume such as invoice issuance and delivery User ID fee Fees charged based on the number of users at the customer company Fee Fees charged based on the number of payment execution processes System usage fee A fixed monthly fee to use the system
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• Data transmission to and retrieval from card companies • Umbrella merchant agreement • Contracts with financial institutions • Must comply with industry rules • Compliance with PCI DSS, etc. Structurally impossible to be replaced by AI AI -Irreplaceable Business Model Payments require clear accountability and human judgment, and involve legal and financial risk—making AI replacement impossible. For areas often considered AI-replaceable, we enhance functionality by embedding AI ourselves—so even if AI players enter, we can deliver equal or greater value. By centrally integrating and automating the end-to-end workflow around payments, we continuously deliver value beyond a standalone AI tool. As a result, our products continue to be used as payment infrastructure that cannot be replaced by AI. Subscription Pay 44 Contract Management / Credit Assessment Billing Cycle Setup Document IssuancePayment Execution Data Integration Invoice Issuance Accounting Integration Cash Application (Payment Reconciliation) DunningPayment Execution Collections Often considered AI-replaceable, but in practice not replaced—and continues to be used as payment infrastructure. Often considered AI-replaceable, but in practice not replaced—and continues to be used as payment infrastructure. Billing Management Robo Often considered AI-replaceable, but in practice not replaced—and continues to be used as payment infrastructure. Often considered AI-replaceable, but in practice not replaced—and continues to be used as payment infrastructure. • Data transmission to and retrieval from banks • Accurate cash application, including exception handling • Immediate dunning actions Structurally impossible to be replaced by AI
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AI-enabled Subscription Pay AI-enabled Billing Management Robo Continuously Growing Product Value with AI + Data Payment and behavioral data accumulated over 25 years since founding will continue to grow. By training AI on this large-scale data, our products keep improving, and our value as payment infrastructure continues to increase. 45 Automated credit assessment (limit / approval) / fraud scoring Automated collections optimized by payment methodOptimal payment method recommendations / upsell & down-sell alerts AI Customer attributes, contract terms, payment logs Payment delay history, payment logs, historical transaction patterns Approval rates by payment method, historical transaction patterns Billing patterns, contract terms Historical collection patterns, contact history Historical collection patterns, customer attributes AI AI Enhanced capabilities AI usage Accumulated data Accumulated data Automated validation of contract & billing details / automatic detection of billing errors Recommend and execute higher-success dunning actionsEnhanced capabilities: Collection priority scoring / installment collections & factoring recommendations AI AI AI Enhanced capabilities AI usage Data Integration Invoice Issuance Accounting IntegrationCash Application (Reconciliation) DunningPayment Execution Collections Contract Mgmt / Credit Assessment Billing Cycle Setup Document IssuancePayment ExecutionWorkflow Workflow
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46 A business model that makes it difficult for competitors to enter the market Building a Gateway System 24/7 System Maintenance Compliance with laws and industry regulations Requirements for Payment Services Providing payment services requires contracts with credit card companies and financial institutions, credit assessment expertise, robust security measures, and more. Credit and Underwriting Expertise Robust security measures Complex and meticulous operations Master Merchant Agreement with a Credit Card Company Contracts and Networks with Financial Institutions All of our products integrate with payment systems, which creates a competitive advantage and sets us apart from our competitors. Launching a payment service involves numerous challenges related to systems, operations, and contracts, making it difficult for new entrants to break into the market. Payment processing is a key strength that sets us apart from the competition Payment Billing Management Billing Management Subscription Management Pay Later Subscription CRM
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2 47 Accelerated expansion for exponential revenue growth
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48 Corporate Purpose Statement URL：https://youtu.be/5OmyOVAp3nY *You can watch the CPS video here. Break down the three barriers blocking commerce —and make Japan strong again Japan’s economy has struggled to escape deflation since the early 1990s—often described as the “lost 30 years.” Innovation and the creation of growth industries have lagged, and a shrinking workforce driven by an aging population and low birthrate has further constrained growth, resulting in a significant decline in international competitiveness. Against this backdrop, ROBOT PAYMENT tackles three structural barriers that hinder commerce—customs, inefficiency, and credit. Through innovative services that connect money, we smooth the flow of funds so that SMEs and core industries in Japan can unlock their full potential, enabling transactions to move faster and more smoothly and creating more opportunities for new value to emerge.
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49 Growth Strategy By expanding the areas where we can solve money-related challenges, we will break down the barriers of “customs,” “inefficiency,” and “credit.” Domestic Transactions Domestic Transaction Payment Infrastructure that Frees Commerce Our customer Billing FlowRemittance Flow Contract management DunningCollectionPaymentBilling AccountingPre-contractQuotation/ Order PlacementPayment Expense Posting Approval Receipt of InvoiceAccounting Pre-contract Overseas Transaction Overseas Transaction Subscription Pay Contract Management SaaS Receivables Collection Robo Billing Management Robo Billing Outsourcing Robo BPO AI Credit Scoring Engine RBF Factoring Credit Assessment Outsourcing Early Collection Guarantee Cross-Border Remittance DX FX Forward Booking Advance Payment BPO (Business Process Outsourcing) Invoice Receipt SaaS Domestic Remittance DX We are researching markets, regulations, and partners in Southeast Asia, and will expand stepwise by priority country (e.g., Indonesia, Vietnam). 1click Postpay We will roll out stepwise, starting with Japanese companies transacting in USD overseas, and expand supported currencies over time. Existing Businesses New Businesses in Preparation New Businesses Under Consideration Contract management DunningCollectionPaymentBilling AccountingPre-contractQuotation/ Order PlacementPayment Expense Posting Approval Receipt of InvoiceAccounting Pre-contract Subscription Pay Overseas Suppliers Domestic Suppliers Overseas Customers Domestic Customers
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Phase 1 Phase 2 50 Cross-sell multiple products across our expanded business and customer base. Layer on finance services to drive accelerated revenue growth. Phase 3 Improve Cross-sell Rate Multiple products overlap in a network, generating cross-sell and driving multiplicative revenue growth. Expand Business Domains Grow the customer base in proportion to the expansion in business lines to drive revenue growth. Increase Finance Transaction Volume By offering finance services, we generate revenue by applying a fee rate to the transaction volume accumulated in Phases 1 and 2—creating further accelerated growth. Business expansion that adds revenue on top of Phase 1 Business expansion that adds revenue on top of Phases 1 and 2 Note: The rate at which existing customers adopt additional products (e.g., Billing Management Robo customers adopting Subscription Pay). With N products, we create N×N combinations of cross-sell opportunities. Now Subscription Pay Billing Management RoboInvoice “Marunage” Robo 1click PostpayReceivables Collection Robo Finance Subscription Pay Billing Management Robo Customer A Invoice “Marunage” Robo 1click Postpay Customer B Customer D Customer C Accelerated expansion to grow revenue exponentially
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Revenue Growth Logic by Phase Expansion As we expand by phase, incremental revenue is layered on in each phase —driving accelerated revenue growth. Revenue Accounts × Transaction Volume × Cross-sell rate × (Number of business lines)² × Finance fee rate Accounts × ARPU × Cross-sell rate × (Number of business lines)² Accounts × ARPU × Number of business lines Phase 1 Phase 2 Phase 3 Phase 3 Phase 2 Phase 1
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3 52 Payback concept for existing business investments
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53 Expected Payback from Investing in Existing Businesses If we invest in the Payment Business and Financial Cloud Business, payback is expected in 2.9 years (returns exceed investment) based on past results. Previous-year operating cash flow Business investment JPY 10B ×15% JPY 150M ×80% Existing investment ×2/3 Existing investment Development Marketing /HR Payment Financial Cloud By business Year1 JPY1.6m/month Year2 … Year19 Payback in 2.9 years 累計営業CF = 40m 0.5m 20,000× (Investment) (CAC) (ARPA) Year1 Year2 … Year19 Payback in 2.9 years 累計営業CF Payment Business Financial Cloud Business Year3 Year3 JPY 150M JPY 40M JPY 80M JPY 40M JPY 40M JPY40M JPY40M JPY1.6m/month = 40m 2.5m 100,000× (Investment) (CAC) (ARPA)
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4 54 Market Growth Potential
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55 Market Size: Subscription Pay Our assumed market share in online payments is around 0.50%. The online payment service market continues to grow, expanding room for adoption. ※1 Based on METI report “Cashless Payment Ratio in 2024,” issued March 2025. ※2 Based on Yano Research Institute release “Survey on Online Payment Service Market (2025),” published March 27, 2025. ※3 CAGR of market size over the five years from 2024 to 2028. ¥117trillion 37.5 43.0 49.2 56.1 63.3 0 10 20 30 40 50 60 70 2024 (Outlook) 2025 (Forecast) 2026 (Forecast) 2027 (Forecast) 2028 (Forecast) 14.0% CAGR※3 Total Card Industry Transaction Volume Total Internet Payment Volume Estimated Market Size of SubscriptionPay as of 2025※1 ※2 Trends in the E-Commerce Payment Services Market※2 ¥43trillion Our transaction volume: ¥215.4 billion Estimated market share: 0.50% （Unit: Trillion Yen）
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56 Market Size: Billing Management Robo Billing Management Robo holds 0.7% share, leaving large growth potential. Domestic Subscription market expansion will further accelerate adoption. 1.4 1.6 1.8 1.9 2.1 0.0 0.5 1.0 1.5 2.0 2.5 2023 2024 (Forecast) 2025 (Forecast) 2026 (Forecast) 2027 (Forecast) ※1 Based on MIC Statistics Bureau “2021 Economic Census for Business Activity,” published June 2023. ※2 Based on Fuji Chimera Research Institute “Software Business New Market 2023 Edition.” ※3 CAGR of market size over the five years from 2023 to 2027. 10.7% CAGR※3 2,504,413companies Potential Market for Invoice Management Robo Acquisition (Companies with 30–999 Employees) Estimated Market Size for Invoice Management Robo as of 2023※1 Trends in the Domestic SaaS Market Size※2 128,280companies Our Account: 867 Our estimated acquisition share: 0.68% Number of BtoB Transaction Companies （ Unit: Trillion Yen ）
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57 Market Size: Billing Outsourcing Robo / 1click Postpay The factoring market is small within the B2B payment market. The BNPL market is steadily expanding, offering high potential for product growth. ※1 Based on MIC “Cross-Industry Survey (Enterprise Statistics),” published July 2023. ※1 Based on FCI “Total Factoring Volume by Country in the Last 7 Years (in million Euros),” converted at ¥160/€. ※2 Based on Yano Research Institute release “Survey on Online Payment Service Market (2025),” published March 27, 2025. ※3 CAGR of market size over the five years from 2024 to 2028. 1.8 2.0 2.3 2.6 2.8 0.0 1.0 2.0 3.0 2024 2025 (Forecast) 2026 (Forecast) 2027 (Forecast) 2028 (Forecast) 12.7% CAGR※3 ¥1,481trillion Factoring Market Estimated Market Size of Invoice “Marunage” Robo & 1Click Post-pay as of 2023※1 Market Trends of Buy Now, Pay Later (BNPL) Services※2 ¥9.2trillion Invoice “Marunage” Robo: Debt collection volume of ¥400 billion (0.04%) 1Click Post-pay: Company transaction volume of ¥13 billion (0.01%) BtoB Payment Market （ Unit: Trillion Yen ）
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58 The domestic receivables collection market has significant room to expand. The market is steadily growing, providing strong expansion potential for our product. ※1 Based on the Statistics Bureau of Japan, “2021 Economic Census for Business Activity” (published June 2023). ※2 Based on Yano Research Institute, “Survey on the Fee Collection & Funds Management Support Solutions Market (2025),” released Jan 19, 2026. ※3 CAGR of market size over the six-year period from 2024 to 2030. 544 775 1,056 1,416 1,862 2,377 2,960 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 3,000.0 2024 2025 (Forecast) 2026 (Forecast) 2027 (Forecast) 2028 (Forecast) 2029 (Forecast) 2030 (Forecast) 千 32.6% Estimated market size for Receivables Collection Robo as of 2021※1 Domestic receivables collection market size trend※2 338,250 companies Total number of domestic corporations (Unit: JPY billion) Addressable market for Receivables Collection Robo (30+ employees) 5,156,063 companies CAGR※3 Market Size: Receivables Collection Robo
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59 Market Size: Cross -Border Remittance DX The cross-border transactions market represents a large share of the B2B payments market. The import sector in particular is steadily expanding, leaving substantial room to grow the product. ※1 Japan Foreign Trade Council, “Outlook for Japan’s Trade Balance and Current Account Balance (FY2025).” ※2 Ministry of Finance (Japan): Working Group materials on small-lot import cargo (published Nov 2025). 0.7 1.0 1.1 1.4 1.9 0.0 1.0 2.0 2020 2021 2022 2023 2024 28.4% CAGR JPY220trillion Overseas Remittance DX market Estimated market size for Overseas Remittance DX (as of 2024)※1 Trend in the number of import permits in Japan※2 JPY112trillion Cross-border trade (imports/exports) market (Unit: 100 million transactions)
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60 Market Size: RBF The RBF market is still small within the overall funding landscape. The market is steadily expanding, leaving significant room to grow the product. ※1 Ministry of Economy, Trade and Industry (Japan), “FY2024 Digital Transaction Environment Development Project (E-commerce Market Survey)” (published Aug 2025). ※2 Startup Finance Market Review (2024). ※3 CAGR of market size over the six-year period from 2024 to 2030. 0.5 0.8 1.0 1.4 1.8 2.3 2.9 0.0 1.0 2.0 3.0 2024 2025 (Forecast) 2026 (Forecast) 2027 (Forecast) 2028 (Forecast) 2029 (Forecast) 2030 (Forecast) 28.5% CAGR※3 JPY1,481trillion RBF industry market Estimated RBF market size (as of Aug 2025)※1 RBF service market size trend※2 JPY779.3billion※2 Total funding raised by domestic startups B2B payments market (Unit: JPY trillions)
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Overview of Our Products 61
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62 Solving business challenges through payment infrastructure Customer Issues Market Launch Date Product Lineup Target Customers Subscription Market Tedious recurring subscription admin tasks Maximizing subscription business revenue through data analytics 2000 Sep 2022 2015 2019 Invoice Issuance System Market Human errors in admin- heavy invoicing tasks BtoB Payment Market Cash flow concerns due to staffing shortages; handling in cloud workflows Nov 2022 Handling complex workflows unique to large enterprises Customer Management / Recurring Billing for Subscription Businesses Data Integration / Analysis / Action for Subscription Customers Automation and Optimization from Invoicing to Receivables Management Outsourced Invoice Management and Accounts Receivable Payment Guarantee Customizability / Scalability / High- volume Processing Businesses with subscription models Businesses with subscription models Corporations conducting BtoB business Large Corporations Engaged in BtoB Business Improve capital efficiency by enabling post-payment for card invoices Oct 2022 Post-payment Invoice Settlement Using Credit Card Payments Corporations & sole proprietors receiving invoices Streamline factoring & financing based on invoices Sep 2024 Factoring and Operational Efficiency Using Invoices Corporations & sole proprietors issuing invoices Our Products サブスクペイ Professional 請求管理ロボ for Enterprise ファクタリングロボ for SaaS Corporations with Uncollected Receivables Preventing Unpaid Invoices Before They Happen Automating and Streamlining Collection Efforts Mar 2026 Reducing Bad Debts and Overdue Accounts; Improving Collection Rates Through Learning
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Customer Management Functions 63 Providing Customer Management and Recurring Billing Functions Needed for All Subscription Businesses • Secure acquisition of customer data • Customer management and analysis linked to payment data Customer Management Database Customer Management Features: Payment Functions 1st Month 2nd Month 3rd Month External Services Subscription-Oriented Payment Features Configurable and editable rules for each product, including price, billing cycle, contract duration, number of payments, and billing dates Free Trial Period Configuration Cancellation / Termination Form Only the initial data integration is required;monthly payment processing is automatically executed according to predefined rules. Customer Analysis Function CRM Function My Page Function Customizable Payment Form Recurring Billing System Data Integration Data Integration Data Integration Data Integration Subscription Pay
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64 Supporting revenue maximization in subscription businesses through customer management and analysis, preventing churn through customer engagement and improving LTV. Note: LINE integration is an optional feature that requires contracts with both the official LINE account and services provided by our partner companies. Inflow Real-Time Analysis Churn Prevention Automated Contract Renewal Payment Application & Contract Management Increase Customer Unit Value • Automatic Payment • Retry Payment • Payment Management • Reports • Dashboard • Sales Management • LINE Integration • Trend Detection • Other Integrated Apps • My PageContract • Edit PageCart • Change Form • Add Product Form Aggregate All Information Customer Engagement ①Immediately usable after implementation ②Engage Based on Data ③ Maximize Revenue Professional • SEO Optimization • Website Creation • Cart • Application Form • Contract • Management • Auto Renewal of Contracts • Sales Management Sales Forecasting Subscription Pay Professional
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65 ❶For All Users ❷ For Salesforce® Users Two Versions • Consolidates spot, usage-based, and fixed billing into a single invoice • Versatile functions to meet subscription business needs • Integration with multiple payment gateways enables automated collection Automate monthly billing operations from invoice issuance to collection, reconciliation, and receivables management in one streamlined workflow. • Links customer data managed in Salesforce® directly to Billing Management Robo • Leverages Salesforce®'s high customizability to build tailored systems Customer & Contract Management System Accounting System Journal Entry & Accounting Receivables Management Payment Reconciliation Payment (Collection)Invoice IssuanceCustomer & Contract Management Billing Management Robo – Product Overview
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66 Solving challenges specific to large enterprises by combining high-volume processing, security, and operational support. Meeting the Needs of Large Enterprises • Able to process large volumes of invoices even at peak times (e.g., month-end) without performance degradation. • Easily switch between issuers when dealing with multiple departments or branches; compatible with a variety of customer needs. • Acquired international certification for Information Security Management Systems (ISMS) "ISO27001" to ensure high data security. • Provides a stable, high-durability system upgrade to handle high-volume invoice processing during peak periods. > Supports up to 100,000 invoices Multiple invoice issuers can be registered ISMS Certified Dedicated onboarding support team Enhanced Performance for High-Volume Invoicing, with a Dedicated Support Team Functions Structure for Enterprise Invoice Management Robo for Enterprise
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67 Receivables Collection Robo Digitizing the “collection” process after invoicing to support companies' cash flow Integrates with your accounts receivable management system to automate the entire process of collecting overdue receivables — all in one place! We help raise your collection rates and support your company’s cash flow. 顧客情報 債権情報 Accounts Receivable Management System ・ Customer Information ・ Debt Information ・ Receivables Status Data Integration 更新済 “Receivables Collection Robo” is a digital infrastructure for debt collection and reminders that supports business growth. It covers a wide range of collection methods, allowing you to freely design collection scenarios based on debtor attributes and the amount owed
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68 Billing Management Robo Credit Screening Payment customer Company Customer Application Credit Screening Invoicing Payment Dunning Payment Submit Credit & Invoice Data Real-Time Status Confirmation Every 5business days Fee ：2%~ ※Factoring option available Application Invoicing Collection Complete outsourcing from credit screening to collections with 100% accounts receivable guarantee End-of-Month Payment 100%Accounts Receivable Guarantee
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69 Enable payment deadline extensions by settling invoice payments (bank transfers) with credit cards Buying Company Selling Company 1. Invoice Issuance (Bank Transfer) 2. Card Payment3. Advance Payment 4. Card Charge Up to approx. 60-day extension Card Company When a buyer company receives an invoice for a bank transfer, they can settle it using a credit card. By using a credit card, they can extend the payment deadline by up to around 60 days, improving cash flow. Funds are deposited by ROBOT PAYMENT on behalf of the buyer, as early as 5 business days after the credit card settlement. （1）Certain criteria must be met for invoice approval via card settlement. （2）Extension days may vary based on card issuer's billing cycle and due date. 1click Postpay Product Overview
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70 Example of Annual SaaS Contract Monetize up to one year of monthly SaaS usage fees in advance SaaS User (Customer) SaaS Provider （Your Company) ②Monthly Collection ①Advance Payment of Receivables (up to 1 year) SaaS Contract • Monetize monthly SaaS usage fees in as few as 5 business days, up to 1 year of receivables at once • Delegates all billing operations including credit screening, invoice issuance and sending, payment confirmation, and collection Annual Usage Fee ¥1,200,000 Month 1: ¥100,000 Month 1: ¥100,000 Month 1: ¥100,000 Normal 1month 2month 12month …… Lump-sum payment immediately Monthly collectionNote: Available even for small and multiple receivables. for SaaS Factoring Robo for SaaS Product Overview
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71 Fee based on total receivable amount (factoring fee) Monthly fixed system usage fee + optional fees + ID fee per user Variable Costs Fixed Costs Storage based on number of invoices Settlement revenue based on invoice amount From 2% From ¥59,000 / month Charged per 100 invoices Spread fee The revenue model in which the increase in claim amounts for “Billing Marunage Robo" and invoice amounts/volume for " Billing Management Robo" raises per-transaction costs and consequently improves customer unit prices. Fee based on transaction volume (spread) Fee based on number of processing transactions (per case) Monthly fixed system usage fee + optional fees + ID fee per user Variable Costs 2.65％～ ¥7 /transaction From ¥ 8,000 /month Fixed Costs The revenue model in which per-transaction costs increase in line with rising transaction volume and transaction count, leading to higher customer unit prices. Pricing Structure
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72 Utilized by various companies in their subscription businesses Internet Services / Content Media / Advertising Rental Donations Others Education Selected Clients Using Subscription Pay
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73 Effects After Implementation • Enabled structuring of cancellation flow by utilizing Subscription Pay’s customer management • Reduced chargeback risks • By automating previously manual tasks through technology, they were able to focus on their core business without increasing labor costs Monthly subscription fee for newsletter content by figures such as Toru Hashimoto and Ruri Miura PRESIDENT Inc. Challenges • Searching for a payment system suitable for a subscription business Effects After Implementation • Flexible configuration of fees, start dates, and billing cycles according to each project • Reduced the need for separate planning of system specifications • Facilitated smooth adoption across other departments and services Monthly subscription fee for a 24/7 members-only sauna OLD ROOKIE Co., Ltd. Why They Chose Subscription Pay • Easy to use and allows for flexible payment configuration • Scalable and easy to expand as the subscription business grows Challenges • Minimize labor costs associated with sauna operation • Streamline payment and customer management Why They Chose Subscription Pay • Available at a low transaction fee • Flexible pricing options such as admission fee and pro-rated calculations, plus the ability to set custom usage start times Customer Management Function Recurring Payment Function Utilizing for Customer Management and Recurring Payments in Subscription Businesses Case Studies: Subscription Pay
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74 Subscription Pay Professional is equipped not only with features to manage subscription billing but also with functionalities essential for business growth. Going forward, the service aims to contribute to customer expansion by supporting multiple industries and leveraging AI. Customer Issues Addressed Phase0 （2000～） Phase2 （2022〜/Implemented） Phase3 Phase4 Business expansion of subscription services Business expansion across various industries Business expansion through utilization of big data centered on payment data SubscPay Phase1 （2013～） Complex subscription- specific customer management SubscPay Professional Continued development of SubscPay Addressing subscription- specific management complex Reservation Management, Inventory Management, etc. AI Consulting Basic functionality: Automatic billing, customer management Specifications Payments The Evolution of Subscription Pay
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75 Companies Using "Billing Management Robo" (Partial List) Primarily used by companies with subscription-based business models generating monthly invoices SaaS / Cloud Services Media / Advertising Consulting / Advisory Systems / Infrastructure BtoC Services Others Companies Using "Billing Management Robo"
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76 Case Studies: Implementation of “Billing Management Robo” Solving challenges related to recurring billing Results after implementation: • Invoices issued and billing totals processed in 2 business days • Even as invoice volumes increased due to COVID-related business growth, the billing workload remained unchanged and could be completed in 10 minutes Industry: Real Estate Development Employees: 536 Nittetsu Kowa Real Estate Co., Ltd. Challenges: • Wanted to reduce operational workload in a new business model involving incubation offices. Results after implementation: • Able to support various payment methods such as bank transfers • Provided services to users without increasing their burden Industry: IT Services Employees: 996 GMO GlobalSign Holdings K.K. Why they chose Marunage Robo (Outsourced Billing Robo): • To outsource not just invoice issuance, but the entire billing operation • Expected benefits: automation and reduced manual labor in billing and follow-up Challenges: • The existing core system used in the business was not compatible with their service model in terms of operational cost and flexibility. Why they chose Billing Management Robo: • Ability to automatically issue invoices for recurring billing • Support for postal delivery • Compatible with various payment methods Stable Business Operations New Business Development Case Studies: Billing Management Robo
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Our Strengths 77
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78 ①The total revenue generated by customers acquired each year does not decline and continues to accumulate permanently. ②Because new competitors find it difficult to enter, we continuously acquire new customers. ③A structure that does not rely on specific high-ARPA customers. ④A customer structure in which revenue does not fluctuate sharply even when the external environment changes. The business model and customer structure that enable stable growth consist of the following 4 elements. A business model and customer structure that enable stable growth
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79 Revenue by Contract Year in the Payment Business Revenue by Contract Year in the Financial Cloud Business 2026 2025 2024 2023 2022 2021 2020 2019 2018 2026 2025 2024 2023 2022 2021 2020 2019 2018 （contract years） （contract years） ※Monthly fixed fees + payment processing revenue generated from users of Billing Management Robo ※Monthly fixed fees + transaction fees (spread) + processing fees Revenue layers remain consistently thick across contract years Revenue layers remain consistently thick across contract years Total revenue from newly acquired customers accumulates sustainably without declining each year.
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A business model that keeps growing revenue even in the AI era The pricing model consists of fixed and usage-based fees. In addition to proactive proposals to increase fixed fees, variable fees such as transaction charges naturally increase as the customer's business grows. 80 Image of Increasing Revenue per Customer Usage-Based Unit Price Fixed Fee Unit Price As the customer’s business grows, the usage-based unit price increases naturally. The fixed fee unit price increases stepwise in response to customer needs. Increases naturally with the customer’s business growth Increases proactively through added functionality and usage Pricing Structure for Each Product • Spread based on transaction volume • Fee based on number of transactions • System usage fee • Optional service fees • Storage charges based on number of invoices • “Marunage” (fully outsourced) handling fee • Payment processing revenue Financial CloudPayment • System usage fee • Optional service fees • Additional user ID fees Total revenue from newly acquired customers accumulates sustainably without declining each year. A revenue model where ARPU increases every year
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81 Existing Customer MRR > Churned Customer MRR The increase in MRR from existing customers exceeds the total MRR lost due to churn, so total revenue does not decrease Total revenue from newly acquired customers accumulates sustainably without declining each year. Image of MRR Increase 100 △20 30 110 MRR in Year N Churned MRR MRR Increase from … MRR in Year N+1 • The churn rate is low • Customers who churn tend to be low-value users, so churned MRR is minimal • MRR increases due to upselling through added features and higher usage by existing customers • Therefore, the MRR increase from existing customers exceeds the total MRR lost from churned customers （注）MRR: Monthly Recurring Revenue, i.e., recurring monthly revenue
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82 ② Because new market entry by competitors is difficult, we can continuously acquire new customers We operate in a business domain with high barriers to entry, making new competitor entry difficult. As our organization expands, we are able to increase the number of newly acquired customers, resulting in even greater accumulation in the revenue layers from future customer acquisitions. Sales Transition by Contract Year (Illustrative) N+1 Year N+2 Year N+3 Year N+4 Year ・・・Year N
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83 ③Structure That Does Not Depend on High-Value Specific Customers With a customer base of over 9,000 companies forming a long-tail structure, there is minimal reliance on a few high-value customers. SubscPay: 8,897AC Billing Managemen t Robo 1,092AC Number of Customers per Product Customer base exceeds 9,000 companies Distribution Image of Revenue per Customer Customer Revenue per Account: High In terms of revenue per customer, the distribution shows a long tail of low-value customers. As a result, dependency on high-value customers is low, and even if some top-paying customers churn, the overall impact is limited. Top-paying customers account for only approx. 1.92% of total revenue Customer Revenue per Account: Low 9,000+ Customers （Note: Top-paying customers are defined as those with the highest monthly recurring revenue (MRR) per account as of the end of December 2024.
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④Customer Structure That Maintains Stable Revenue Even Amid External Environmental Changes A Customer Structure That Maintains Stable Revenue Even Amid External Environmental Changes Customer Industries in the Financial Cloud Business Customer Industries in the Payment Business Cram Schools / Schools , 11.7% Unions / Associations, 8.7% Donations / Fundraising , 8.3% Events / Academic Societies, 6.3% Fitness, 5.7% 4.6%4.6%4.3%3.2%2.9% 2.7% 2.6% 2.5% 2.5% 2.0% 1.3%1.3%1.1% Others , 23.8% Daily Goods / Food / FurnitureSaaS Esthetics / Medical TreatmentsWeb Production / SEO Pharmaceuticals / Beauty Real Estate Leasing Consulting Media (Advertising / Membership Fees)Lease / Rental Advertising / Promotion Agency / Intermediary Services Real Estate, 12.7% SaaS, 11.4% Recruitment / Staffing Services , 8.8%Professional Services, 7.4% Medical / Beauty , 5.7%5.5% 4.7% 4.7% 4.6% 4.1% 3.3% 2.1% 2.0% 2.0% 1.8% 1.4% Others , 17.7% Cram Schools / Schools Web Production IT / Software Consulting Transportation / Automotive Newspapers / Media Architecture / Construction Education Telecom / Internet Elderly Care Utilities Others 84
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444 517 598 706 872 1,032 1,351 1,697 1,978 75 119 246 339 495 674 838 1,061 1,269 597 711 911 1,078 1,395 1,731 2,214 2,762 3,256 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Billing Management Robo SubscPay 85 Stable Business Growth Unaffected by External Environmental Changes Subscription Pay Service Launch Lehman Shock Great East Japan Earthquake COVID-19 Pandemic Billing Management Robo Service Launch Billing Marunage Robo Service Launch （Unit: Millions of Yen） Revenue Trends of 2 Main Products ④Customer Structure That Maintains Stable Revenue Even Amid External Environmental Changes
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Long-Term Management Strategy for Exponential Future Growth 86
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87 Strategy Overview Due to the slowdown in revenue growth, the company came to be seen as “uninspiring.” We have therefore renewed our strategy, aiming to realize our CPS. Aim for continuous profit growth, targeting a 7:3 ratio of revenue growth to operating profit growth 2022 Medium-Term Management Plan Stock price fell sharply under the loss-making plan 2023 Medium-Term Management Plan With low revenue growth, the company came to be seen as “uninspiring” Focused solely on operating profit Long-Term Management Strategy Focus on both revenue growth and profit growth Focused on increasing revenue growth rate while tolerating losses
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88 Strategy Overview Because clear execution standards for growth investment were not in place, we could not invest in new initiatives. New Business Although we launched new businesses, we could not make sufficient investments, and scaling up was delayed. M&A While there was an investment judgment standard limited to profitable cases, the lack of clearly defined investment amounts prevented us from carrying out M&A. CVC Because we had not established clear investment policies, we were unable to proceed with CVC investments. Existing Business Additional investment in existing businesses was insufficient. Lack of adequate investment in personnel, advertising, and development expenses delayed growth acceleration. Establishing Capital Allocation Standards Based on Operating Cash Flow1 To ensure steady execution of growth investments, we set explicit allocation standards for each investment target, based on the proportion of the previous year’s operating CF allocated to investments. Establishing Investment Decision Criteria with a Clear Payback Period2 To enhance the certainty of securing investment returns, we set explicit decision standards for each investment target, based on cumulative operating CF reaching break-even within a defined period. Execution Standards for Growth Investment We will invest in new businesses, existing businesses, M&A, and CVC. T o Break Away from Being a “Boring Company” with Low Revenue Growth Rate Why has the revenue growth rate stagnated? Long-Term Management Strategy
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Capital Allocation policy based on operating CF 89 With no allocation standards under the profit-first policy, growth investment was minimal. We have now set clear operating cash flow allocation standards in line with net asset growth. Until net assets reach 5 billion yen, 15% of the previous year’s operating cash flow (CF) will be allocated to additional growth investments. Of this, 20% will go to new businesses and 80% to existing businessesto accelerate growth. When net assets exceed 5 billion yen, the allocation will increase to 20% of the previous year’s operating CF. Additional growth investments The shareholder return ratio will be raised step by step as net assets increase. Over ¥5 billion in net assets: allocate around 30% of the previous year’s operating CF Over ¥10 billion in net assets: allocate around 50%.Our policy is to ensure continuous dividend increases, while balancing with additional growth investments. Shareholder returns As net assets increase, the allocation capacity for M&A and CVC investments will be expanded.Upto ¥5 billion in net assets: retain around 65% of the previous year’s operating CF¥5–10 billion: retain around 50%Over ¥10 billion: retain around 30%This approach allows us to prepare for large-scale M&A opportunities and promising CVC investments. M&A・CVC No clear standards were set in advance Profit-First Allocation Standard 2% 17% Shareholder returns 81% Retained earnings New Growth Allocation Standard (70/30: Revenue / Operating Profit) Net Asset Range 15% Additional growth investments 20% Shareholder returns 65% M&A・CVC 30% Shareholder returns 50% M&A・CVC 30% M&A・CVC 50% Shareholder returns Allocated according to net assets Current–up to ¥5 billion ¥5-10 billion Over ¥100 billion Business Investment 20% Additional growth investments 20% Additional growth investments
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90 Growth Investment Decision Criteria Investment Decision Criteria New Businesses Years until annual operating CF turns positive：within 5 years Years until cumulative operating CF turns positive：within 10 years Existing Businesses Years until annual operating CF turns positive：within 3 years Years until cumulative operating CF turns positive：within 5 years M&A Years until cumulative operating CF exceeds goodwill： within goodwill amortization period (generally 5 years) Goodwill: less than 40% of net assets CVC Years until unrealized gains exceed investment amount：within 5 years Investment targets: must create synergy with our businesses Investments will be made based on clear standards. ※Based on our business model and financial structure, we plan to conduct investments using our own equity without relying on b orrowings.
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91 Growth Investment Decision Criteria Criteria Years until annual operating CF turns positive: Years Elapsed Operating CF Annual operating CF turns positive Cumulative operating CF turns positive Initial Investment New BusinessInvestment Criteria Investment Decision Criteria Image 1 2 3 4 5 6 7 8 9 10 Within 5 years Years until cumulative operating CF turns positive: Within 10 years Notes ◯Criteria for selecting business areas ※Since new businesses can generate operating CF over the long term (beyond year 11), we allow short-term operating losses compared to existing business investments, M&A, or CVC. ・Whether it is a growth market ・Whether there are few leading competitors Increase in Operating CF Annual Operating CF Cumulative Operating CF
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92 Growth Investment Decision Criteria Annual operating CF turns positive Existing Businesses Investment Criteria Investment Decision Criteria Image 1 3 4 2 Criteria Years until annual operating CF turns positive: Within 3 years Years until cumulative operating CF turns positive: Within 5 years Notes ◯Time to investment recovery Since the investment is made in already growing businesses, the recovery period is shorter compared to new businesses. Increase in operating CF Cumulative operating CF turns positive 5 Years Elapsed Initial Investment Operating CF Annual Operating CF Cumulative Operating CF
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Goodwill 93 Growth Investment Decision Criteria Criteria M&A Investment Criteria Investment Decision Criteria Image 1 2 3 4 5 Years until cumulative operating CF exceeds goodwill: Within 5 years(within the goodwill amortization period) Notes ◯Background of criteria If operating CF exceeds goodwill within the amortization period, we regard it as having generated business growth value, and therefore set the amortization period as the benchmark. Goodwill cap: Less than 40% of net assets ※By setting the criterion as cumulative operating CF, we allow temporary annual deficits. Allow temporary annual losses Annual Operating CF Cumulative Operating CF – Goodwill Increase in operating CFCumulative operating CF exceeds goodwill Operating CF Years Elapsed
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94 Growth Investment Decision Criteria Investment Criteria Unrealized gains exceed investment amount: Within 5 years Investment Target: Businesses with synergy effects Notes ◯Examples of Synergy Effects ・Creation of new businesses and innovations ・Strengthening of existing businesses ・Human resource development and organizational activation ・Financial returns unrealized gains 1 2 3 4 5 Years Elapsed Increase in unrealized gains Investment amount Investment Decision Criteria Image Unrealized gains exceed the invested amount Unrealized gains at that point Unrealized gains - investment amount CVC Investment Criteria
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03 Long-Term Strategy / Net Assets Growth Illustration Net assets build up every year, enabling larger M&A/CVC.* 95 (1) Capital allocation framework based on prior-year operating cash flow Business investment Shareholder returns M&A/CVC funds FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 Investment capacity for M&A/CVC expands every year Net assets at prior year-end Increase in net assets in the current year Net assets trend *Excludes the impact of investing and financing cash flows on net assets Now to JPY 5.0bn (net assets) Net Assets Growth Illustration
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+24.7%+24.7% 0.0% +10.0% +20.0% +30.0% FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 96 04_長期経営戦略を実行した未来 事業成長の加速 +14.4pt By FY2035, revenue growth can be +14.4pt higher than the profit-focused scenario through business investment, and potentially reach +30% with additional M&A.* +20.8% +6.4% M&Aで更なる成長率UPを狙うRevenue growth under the profit-focused scenario* Revenue growth with business investment Additional revenue growth potential with M&A Revenue Growth Trend +9.2pt Business investment can lift revenue growth. With M&A, we can potentially reach +30% revenue growth. +30% *Profit-focused scenario: An estimate of projected revenue and operating profit assuming we continue the profit-focused policy defined in the 2023 mid-term management plan from FY2026 onward. Accelerated Business Growth
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97 (3)-1 Accelerating Business Growth As of FY2035, revenue is expected to be 1.75x vs. the profit-focused scenario* through business investment, and 2.65x with additional M&A. x2.65 FY2035・・・FY2025 ¥3.2 billion Profit-focused scenario* (Revenue) Projected revenue with business investment Additional revenue upside with M&A ※Profit-focused scenario: A rough estimate of projected revenue and operating profit assuming the profit-first policy set in the 2023 mid-term management targets continues beyond FY2026 (Dec). ¥15.0billion ¥21.0billion Net Sales Business Investment +¥7.0 billion M&A +¥6.0 billion Profit- focused scenario ¥8.0 billion x1.75 Accelerating Business Growth
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98 (3)-2 Accelerating Business Growth As of FY2035 (Dec), operating profit is expected to be 1.33x vs. the profit-focused scenario* through business investment, and 1.72x with additional M&A. Operating Profit x1.33 x1.72 FY2035 ¥2.4billion ・・・FY2025 ¥0.685 billion ※Profit-focused scenario: A rough estimate of projected revenue and operating profit assuming the profit-first policy set in the 2023 mid-term management targets continues beyond FY2026 (Dec). ¥3.1billionProfit-focused scenario* (Revenue) Projected revenue with business investment Additional revenue upside with M&A Profit-focused scenario ¥1.8 billion Business Investment +¥0.6 billion M&A +¥0.7 billion Accelerating Business Growth
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99 (2)-3 Financial Policy To achieve sustainable growth and enhance corporate value, we establish basic policies of financial soundness, disciplined management, and capital efficiency. Maintaining a Sound Financial Base Maintain an adjusted equity ratio of 50% or higher to ensure long-term financial stability.01 Disciplined Balance Sheet Management Control the combined amount of intangible assets such as M&A and software, as well as CVC investments, within 50% of net assets. Excess funds will be managed in highly secure financial assets (MMF, government bonds, etc.) with a minimum cash reserve in place. Through disciplined operations based on these rules, we maintain a high-quality balance sheet. 02 Pursuing High Capital Efficiency Target ROE of 25% or higher, significantly exceeding the cost of equity, to maximize shareholder value. 03 Financial Policy
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100 Upgrading to the Prime Market Aiming for Transition to the Prime Market approx. ¥1.25billionOrdinary Profit Our Preparation Thresholds Toward Prime Market Listing 2-3 years approx. ¥4.0 billionNet Assets Upgrading to the Prime Market
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101 (2)-4 Organization & Talent Strategy Supporting Strategy with Organization and Talent Aim for a Dramatic Improvement in Productivity We aim to build a lean and efficient organization where the net MRR increase per employee exceeds the overall company’s net MRR growth. Recruitment Strategy HR Enhancement Culture Building Securing “Talent” that Creates the Future Advancement through Technology and Data A Soil Where Challenge and Growth Are Born ・Strengthening High-Class Recruitment Enhance the talent pool and relationships to acquire top talent who will lead our business ・Expanding Recruitment Channels Secure diverse talent with potential through continuous hiring of both new graduates and mid- career professionals. ・Improving Productivity Maximize operational efficiency by deploying AI agents across the company. ・Boosting Business Development Capability Accelerate the launch speed of new businesses through the integration of the customer base and the cultivation of AI talent. ・Institutionalizing Challenge Opportunities Promote a “those who want to, will do” culture and foster future leaders through new business, M&A, and subsidiary opportunities. ・Developing Business Leaders Develop leaders for long-term growth through M&A and new venture assignments with lasting responsibility. Organization & Talent Strategy
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102 Key Risks in Our Business Expansion and Our Response Policy Key Risks in Business Execution and Related Impacts Measures to Address Key Risks Medium Low Low Medium Likelihood Medium Medium High High Impact ※ For other risks, please refer to “Business and Other Risks” in the Annual Securities Report. We mitigate risks by strictly managing progress against milestones and executing investments in stages and with caution, based on clear investment criteria such as the period to positive operatingCF and LTV/CAC. We have established a dedicated PMI team to implement integration in a planned manner, while maintaining financial discipline (e.g., goodwill not exceeding 40% of net assets) to avoid excessive investments. We strengthen retention of key personnel through performance- linked equity compensation (such as stock options), and promote systematic development and delegation to next-generation leaders to reduce dependence on individuals. In M&A, we emphasize PMI, designing incentives for key personnel of acquired companies and harmonizing organizational culture to mitigate talent outflow risks. We build on our recurring-revenue businesses to ensure stable cash flows, enhance customer success functions to reduce cancellations, and maintain financial soundness by limiting borrowings within net assets. This structure increases resilience to economic fluctuations while enabling agile investment decisions. If the progress of new businesses falls behind plan and milestone achievement is delayed, this may result in slower revenue growth, longer investment recovery periods, and lower capital efficiency, which could affect the execution of our business plan and financial results. Risk of Underperformance in New Businesses The departure of key management or business personnel could affect business continuity and growth speed. Furthermore, as we pursue M&A, the departure of key personnel at acquired companies or talent outflow during integration could delay the realization of synergies and investment recovery, thereby impacting our performance and business plans. Risk of Key Personnel Departures While M&A is being considered as part of our growth strategy, failure to execute post-merger integration (PMI) as planned may prevent the realization of expected synergies, making investment recovery difficult and potentially impacting our performance and financial position. In addition, excessive goodwill recognition may create a future risk of impairment losses. Risk of M&A Failures Deterioration in domestic or international economic conditions or financial markets, rising interest rates, or tighter regulations could worsen the financial condition of client companies, leading to higher cancellation rates or reduced use of our services. In a recessionary phase, new demand may slow, and the execution of our planned growth investments may be delayed, resulting in slower growth and potential impact on our earnings base and medium- to long-term business plan execution. Risk of Market Deterioration Key Risks in Our Business Expansion and Our Response Policy
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103 Please Register for Our Email Newsletter and Official LINE Account To help investors and shareholders, as well as a wide range of stakeholders, better understand and stay engaged with our company, we have launched an Email Newsletter and an Official LINE Account. We kindly ask for your registration. ▼Email Newsletter Registration ▼Official LINE Account Registration https://www.magicalir.net/4374/mail/ https://lin.ee/keiczv9 Same content as timely disclosures and PR information. Major news releases (with explanatory comments), event announcements, seminar participation notices, etc. 2-4 times per month (*Delivered simultaneously with timely disclosures) 2-4 times per month (*Varies depending on the number of news releases and seminar appearances) Deliver all timely disclosures and PR information in real time. Provide updates on major news releases with commentary, while also enabling direct communication with our IR team via LINE. Registration Method Content Frequency Purpose
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Handling of This Document This document contains forward-looking statements that are based on information available at the time of preparation. Such statements are not guarantees of future results and involve risks and uncertainties. Actual outcomes may differ materially from these forward-looking statements due to changes in circumstances and other factors. Factors that may affect actual results include, but are not limited to, domestic and international economic conditions and trends in industries related to the Company. In addition, information concerning entities other than the Company included in this document is quoted from publicly available sources. The Company has not independently verified such information and makes no warranty as to its accuracy or appropriateness. 104 Disclaimer