Global Communication Planning Co.,Ltd. Q4 FY2025 earnings call

Key Strategic Initiatives & Operational Updates

• New Partnerships & Product Launches

  • Signed Japan's first retail partnership with Newland Payment Technology (NPT), a global payment terminal provider that has shipped over 100 million units across 120+ countries, and launched sales of NPT's popular new smart terminal models N950, N750, and X800. These terminals serve a wide range of in-person businesses including retail, restaurants, takeaway, warehousing, and logistics.
  • Deepened the capital and business alliance with Transaction Media Networks, which was first established in February 2024. GC Planning became an equity-method investor in Transaction Media Networks in March 2025 to further strengthen the partnership's payment gateway service business.
  • Signed a comprehensive agency agreement with a bank-affiliated card company to support its consolidated payment fee revenue strategy.

• Growth Strategy 1: Expand Market Target

  • Pursues broad outreach to diverse merchant needs including acquiring small-sized merchants, through collaboration with card companies and subscription-based multi-payment terminal sales regardless of merchant business scale. GC Planning is advancing joint proposals with new alliance partners to reach a wider customer base.

• Growth Strategy 2: International Brand Payment Network Connection Service

  • Aims to reduce overall payment costs and improve profit levels by shifting merchant connections to international brand payment networks. The company is currently advancing specific proposals for this service with multiple merchants.

• Growth Strategy 3: Subscription-Based Sales of Multi-Payment Terminals

  • The subscription service "Sakura" reduces upfront implementation costs for merchants, enabling low-cost cashless payment adoption. The service is available to merchants of all sizes, driving expected user growth, and is also an easy-to-offer product for alliance partners.
  • The service has already launched at multiple merchants including a large shopping center, and preparations are underway to launch service for a major amusement park. In addition to existing Castles Technology terminals, GC Planning is now offering subscription proposals that use new NPT terminal models.

• Growth Strategy 4: Payment Fee Revenue

  • Offers simplified cashless payment solutions by consolidating all payment-related contracts, and expects growing recurring revenue from the integration of this offering with the "Sakura" subscription service.

1. Payment Integration Business: Revenue increased in Q4 from large terminal sales, but decreased year-over-year overall due to lower contracted development revenue and a shifted sales mix. Higher cost of goods sold and R&D investment pushed the segment to an operating loss. Performance came in 1.8% above the revised forecast, broadly in line with expectations.
2. Payment Service Business: Revenue grew 29.2% year-over-year driven by the launch of a new subscription service for existing users. Increased external costs from growing electronic money usage and higher software amortization expenses led to a lower profit margin. Performance was 0.1% below the revised forecast, nearly meeting expectations.

• For the 2026 June full fiscal year, the Payment Integration Business is projected to reach 1.311 billion yen in revenue, a large increase from the prior year, driven by incoming inquiries and orders for large projects.
• The Payment Service Business is projected to reach 1.091 billion yen in revenue, maintaining flat performance at the prior year's level after the 2025 fiscal year's large growth from the new subscription launch.
• Full-year 2026 June fiscal guidance projects: 92 million yen operating profit, 55 million yen ordinary profit, and 54 million yen net income, turning to a profit after the 2025 fiscal year's operating loss.

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