PayPay Corp (PAYP) 2026 Q1 法說會逐字稿

Good morning, and good evening, everyone and welcome to today's joining call for the first quarter of fiscal 2026. I'm Kotaro Emae, Head of Investor Relations. Joining me on today's call are Nakayama-san, our President; and CEO Kagechika-san, our CFO; and [Wataru-san], Head of Finance and Corporate Strategy. As a reminder, today's call is being broadcast live and a replay will be available on our website at a later date.

各位早安、晚安，歡迎參加今天的 2026 會計年度第一季電話會議。我是投資人關係主管 江前幸太郎。今天與我一同出席的有：中山社長；CFO 影近先生；以及財務與企業策略主管[渡先生]。提醒各位，本次會議將進行線上直播，稍後也會在我們的網站提供重播。

Before we begin, please note that today's discussion includes forward-looking statements, non-IFAS financial measures, and unaudited financial data. Actual results may differ materially from our expectations. For more details including risk factors and non-IFAS reconciliations of non-IFAS measures to the most directly comparable IFAS measures, please carefully review the disclaimer on page 2 of our web presentation. We ask for your understanding of these terms as we proceed.

在開始之前，請注意今天的討論包含前瞻性陳述、非 IFAS 財務衡量指標，以及未經審計的財務數據。實際結果可能與我們的預期存在重大差異。如需更多資訊（包括風險因素，以及非 IFAS 指標與最直接可比的 IFAS 指標之調節），請仔細閱讀我們網路簡報第 2 頁的免責聲明。在我們繼續進行時，敬請理解上述條款。

With that, I will now turn the call over to Nakayama-san.

接下來，我將把電話會議交給中山先生。

Hello, everyone. This is Nakayama speaking. So before we begin the presentation, I would like to say a few words in Japanese. Before we begin today's presentation, I'd like to express my deepest sympathies to everyone affected by the recent earthquake in Kumamoto. We sincerely pray for your safety and a swift recovery and reconstruction of the affected areas. So let's start.

各位好。我是中山。在開始簡報之前，我想先用日文說幾句。在開始今天的簡報之前，我想向近期熊本地震的所有受災者致上最深切的慰問。我們衷心祈願各位平安，並祝福災區能夠早日復原與重建。那麼我們開始。

Now let me turn to our financial results. Following a strong finish in Q4, we delivered another strong quarter in Q1. Total revenue increased. 27% Y-o-Y, driven by continued growth in the payment segment and even faster growth in the financial service segment.

接下來我來說明我們的財務表現。在第 4 季強勁收官之後，我們在第 1 季也交出另一個強勁的季度成績。總營收增加。年增 27%，主要受惠於支付業務持續成長，以及金融服務業務更快速的成長。

RLTC increased 26% Y-o-Y. The margin declined by 1% to 77%. Mainly due to higher funding costs for bank deposits after policy rate increase. Adjusted EBITDA increased 59% Y-o-Y, and the margin expanded to 34% as both segments delivered operating leverage. Our rule of X reached 61%, showing solid growth in both revenue and profitability.

RLTC 年增 26%。毛利率下降 1 個百分點至 77%。主要原因是在政策利率上調後，銀行存款的資金成本上升。調整後 EBITDA 年增 59%，且由於兩大業務部門皆展現營運槓桿，利潤率擴大至 34%。我們的 rule of X 達到 61%，顯示營收與獲利能力皆有穩健成長。

Today, we announced our capital and business alliance with Seven & i Holdings. I would now like to explain how these partnerships support our growth strategy. First of all our vision remains clear to build one of the largest digital financial platform in Japan. We focus on two areas. The first is products and customer touch points. We started with payments and expanded into credit cards, banking, and securities.

今天，我們宣布與 Seven & i Holdings 的資本與業務聯盟。接下來我將說明這些合作關係如何支持我們的成長策略。首先，我們的願景依然明確：在日本打造最大的數位金融平台之一。我們聚焦兩個領域。第一是產品與客戶觸點。我們從支付起步，並擴展至信用卡、銀行與證券。

In June, we announced the planned acquisition of shares in T&D Financial Life Insurance. This will add life insurance to our platform and help us meet needs such as protection, wealth buildings, and asset succession. Our partnership with Seven & i will expand our reach further by connecting with users in their daily shopping.

6 月，我們宣布計畫收購 T&D Financial Life Insurance 的股份。這將把壽險納入我們的平台，並協助我們滿足保障、財富累積與資產傳承等需求。我們與 Seven & i 的合作將透過連結用戶的日常購物，進一步擴大觸及範圍。

The second area is data. The more data we gather, the better we understand our users. The blue circles show static data such as user profiles and financial assets. The red circle show realtime data such as payments and shopping activity. By combining them, we can better understand who our users are and what they need at the moment. This allows us to offer the right financial service to the right user at the right time.

第二個領域是數據。我們蒐集的數據越多，就越能理解用戶。藍色圓圈代表靜態數據，例如用戶檔案與金融資產。紅色圓圈代表即時數據，例如支付與購物活動。將兩者結合後，我們能更好地理解用戶是誰，以及他們當下需要什麼。這使我們能在正確的時間，向正確的用戶提供正確的金融服務。

This personalized approach is very different from the mass marketing. Often used by traditional financial institutions. We have consistently invested in products, customer touch points, and data capabilities. Our direction has not changed and our execution remains strong.

這種個人化的方法與傳統金融機構常用的大眾行銷截然不同。傳統金融機構經常採用。我們持續投資於產品、客戶觸點與數據能力。我們的方向沒有改變，執行力也依然強勁。

Let me now explain the T&D financial life insurance acquisition in more detail. Life insurance sits between bank deposits and securities and will expand our financial services lineup. By combining it with PayPal's daily payment touchpoints. We plan to offer new digital life insurance products to our user base.

接下來我將更詳細說明收購 T&D Financial Life Insurance 的交易。壽險位於銀行存款與證券之間，將擴充我們的金融服務產品線。透過與 PayPal 的日常支付觸點結合。我們計畫向用戶群提供新的數位壽險產品。

We also aim to strengthen asset management, expand revenue opportunities, and improve profit margins. By bringing the life insurance balance sheet into our group, we will build a stronger hybrid model that combines flow-based revenue from payments with stock-based revenue from financial services.

我們也希望強化資產管理、擴大營收機會，並改善利潤率。將壽險的資產負債表納入集團後，我們將建立更強健的混合模式，把支付帶來的流量型收入與金融服務帶來的存量型收入結合起來。

This will help us benefit from rising interest rates and build a stronger foundation for sustainable growth even as the external environment changes. We will continue to prepare a study for the completion of the acquisition.

這將有助於我們在利率上升時受益，並在外部環境變化之際，建立更穩固的永續成長基礎。我們將持續推進為完成收購所需的研究與準備。

Next, I would like to highlight our capital and business alliance with seven & i Holdings we announced today. First, let me explain the strategic purpose of the partnership. Our goal is more than payment link. We want to connect in-store and deserve customer touch points and improve the everyday shopping experience.

接下來，我想重點說明我們今天宣布與 Seven & i Holdings 的資本與業務聯盟。首先，我來說明這項合作的策略目的。我們的目標不僅是支付連結。我們希望連結店內與各種客戶觸點，並提升日常購物體驗。

[seven & i] Japan has about 22,000 stores and around 20 million customers visit each day. [Pepe] has about 75 million users and handles around 30 million payments each day by bringing together two industry leaders, we can make better use of the large amount of data generated every day. This is the core value of the partnership.

[seven & i] 在日本約有 22,000 家門市，每天約有 2,000 萬名顧客到訪。[Pepe] 約有 7,500 萬名用戶，每天處理約 3,000 萬筆支付。透過結合兩個產業領導者，我們能更有效運用每天產生的大量數據。這就是本次合作的核心價值。

seven & i Japan has a strong capability in product development, logistics, store operations, membership programs, promotions, and apps. As seven & i transforms its business model, PayPay will lead the renewal of its desert customer touch points.

seven & i Japan 在產品開發、物流、門市營運、會員計畫、促銷與 App 方面具備強大能力。隨著 seven & i 轉型其商業模式，PayPay 將主導其各種客戶觸點的更新。

We will connect memberships, IDs, Date, point apps, and promotion on the PayPay platform and add digital capabilities to its stores. This clear vision of Lowells will help us build stronger and broader customer connections.

我們將在 PayPay 平台上串接會員、ID、數據、點數 App 與促銷，並為其門市加入數位能力。這個清晰的願景將幫助我們建立更強、更廣的客戶連結。

In the mid to long-term. We place the greatest value on our continuous real-time data. Everyday payments generate fresh data without asking users to enter extra information. As the data grows, AI can keep running and offer more personalized suggestions to each user. This is a key long-term strategy to increase lifetime value in the age of AI.

從中長期來看。我們最重視的是持續不斷的即時數據。日常支付會在不要求用戶額外輸入資訊的情況下產生最新數據。隨著數據累積，AI 能持續運作，並向每位用戶提供更個人化的建議。這是在 AI 時代提升終身價值的一項關鍵長期策略。

Looking ahead, PayPay will explore opportunities to expand its payment service our outside Japan including in the United States. We have no specific plans at this stage. However, we believe that the success we achieve with this partnership in Japan would support PayPay's further global growth.

展望未來，PayPay 將探索把支付服務擴展至日本以外（包括美國）的機會。目前我們尚無具體計畫。然而，我們相信在日本透過此合作所取得的成功，將支持 PayPay 進一步的全球成長。

At the same time, we will create near-term growth from the partnership by combining services such as 7Now and mobile ordering with PayPay's customer base and data, we can reach potential customers more effectively. By improving customer experience, we will drive near-term growth and put this model into practice.

同時，我們也將透過結合 7Now、行動點餐等服務與 PayPay 的客戶基礎與數據，從合作中創造短期成長，並更有效觸及潛在客戶。透過改善客戶體驗，我們將推動短期成長，並把這個模式落地實行。

These initiatives will help us build a one-stop digital financial platform that supports users at every stage of life. Financial needs change at each stage of life. Younger users mainly need payments and credit cards as they get older. Their needs become broader and more diverse fired. By combining payments, shopping, and behavioral data, we can better understand these changes and offer services that fit each user's needs. This helps us increase lifetime value while keeping customer acquisition costs low.

這些舉措將幫助我們打造一站式的數位金融平台，在人生各個階段支持用戶。金融需求會隨人生階段而改變。年輕用戶主要需要支付與信用卡；隨著年齡增長。他們的需求會變得更廣泛且更多元。透過結合支付、購物與行為數據，我們能更好地理解這些變化，並提供符合每位用戶需求的服務。這有助於我們在維持較低獲客成本的同時，提高終身價值。

We hope our investors will share our vision and excitement as we increase the close use of our services and grow revenue per user. One key measure of this progress in ARPU, cross use between payments and finance creates growth on both sides.

我們希望投資人能在我們提升服務的交叉使用並提高每位用戶營收之際，與我們共享願景與熱情。衡量此一進展的一項關鍵指標是 ARPU；支付與金融之間的交叉使用，能在兩端同時帶動成長。

It increases revenue in the financial services segment, while greater use of financial services also increases payment engagement, GMV and ARPU in the payment segment. Our growth strategy has not changed, we expand customer touch points, gather more data, and use the data to order the right financial services to each user. We will continue to invest for growth, increase cross-use and build greater corporate value over the medium to long-term. This concludes my presentation. I will now hand over to our CFO, Kagechika-san.

這將提升金融服務事業的營收；同時，金融服務使用度提高也會增加支付事業的使用黏著度、GMV 與 ARPU。我們的成長策略並未改變：擴大客戶接觸點、蒐集更多數據，並運用數據為每位用戶提供合適的金融服務。我們將持續投資以促進成長、提高交叉使用，並在中長期建立更高的企業價值。我的簡報到此結束。接下來交由本公司 CFO 影近先生。

Thank you.

謝謝。

Thank you, Nakayama-san. I will now walk you through our earnings highlights. Let me first highlight our operational and financial performance for the first quarter. Fiscal 2026 is off to an excellent start. Building on this strong momentum, we are raising our full year financial guidance for fiscal 2026, which I will touch upon later.

謝謝你，中山先生。接下來我將帶各位回顧本季財報重點。首先，我想先說明第一季的營運與財務表現。2026 會計年度有個非常出色的開局。在這股強勁動能之上，我們上調 2026 會計年度全年財務指引，稍後我會再說明。

While the top-line growth is quite healthy. I want to specifically highlight the quality of growth we are seeing across both our payment and financial service segments. Looking at the payment segment, the usage of PayPay card is further accelerating and continue to be a key growth driver. Through the expanded use of PayPay card, we will increase the monthly GMV per MTU and strengthen PayPay's position as our user's main wallet.

雖然營收（top line）成長相當健康，但我想特別強調，我們在支付與金融服務兩大事業部所呈現的成長品質。就支付事業而言，PayPay Card 的使用進一步加速，並持續成為關鍵成長動能。透過擴大 PayPay Card 的使用，我們將提升每位 MTU 的月度 GMV，並強化 PayPay 作為用戶主要錢包的地位。

Further, our unit economics consistently improved, supported by GMV growth of our higher margin online GMV. In the financial service segment, we are working on establishing a foundation for future growth alongside the steady expansion of our user base.

此外，在高毛利的線上 GMV 成長帶動下，我們的單位經濟效益持續改善。在金融服務事業方面，我們一方面穩健擴大用戶基礎，同時也在建立未來成長的基礎。

In the first quarter, [Tanida-san], the former President of PayPeCard until last fiscal year, assumed the role of new President at PayPay Bank. Under his leadership, we are refining our growth strategy and accelerating its execution. At the same time, we are redesigning our technology architecture to fully leverage the opportunities created by AI. The number of PayPay bank accounts has now exceeded 10 million, demonstrating steady growth in our customer base.

第一季中，前一會計年度前為止擔任 PayPeCard 社長的 [Tanida-san]，就任 PayPay Bank 新社長。在其領導下，我們正精煉成長策略並加速執行。同時，我們也在重新設計技術架構，以充分掌握 AI 帶來的機會。PayPay 銀行帳戶數已突破 1,000 萬戶，顯示客戶基礎穩健成長。

Next page please. This slide shows our consolidated total revenue. Now I'd like to highlight some of our key business developments. For the first quarter and our recent progress as announced in February we implemented a comprehensive revision to our rewards program in June. Of the various changes we introduced, the most significant financial impact came from restricting reward point eligibility only to EKYC verified users.

請看下一頁。本頁顯示我們的合併總營收。接下來我想重點說明幾項主要業務進展。就第一季以及我們在 2 月所公告的近期進展而言，我們於 6 月對回饋方案進行了全面修訂。在各項變更之中，對財務影響最大的是：將回饋點數的適用資格限制為僅 EKYC 驗證完成的用戶。

To build a secure and reliable financial infrastructure, we've been actively promoting EKYC. Through these efforts, the number of EKYC verified users has exceeded 42.5 million. As an added benefit from financial perspective, the initiative led to 1 billion Japanese yen in cost saving in June alone.

為了建立安全且可靠的金融基礎設施，我們一直積極推動 EKYC。透過這些努力，EKYC 驗證完成的用戶數已超過 4,250 萬。從財務角度來看，這項措施也帶來額外效益，僅 6 月就節省了 10 億日圓的成本。

Next page please. This slide shows our consolidate total revenue. Since Nakayama-san already covered this, I will skip the detail. Next slide please. This shows our adjusted EBITDA. Similarly, I will skip the details here as well.

請看下一頁。本頁顯示我們的合併總營收。由於中山先生已經說明過，我將略過細節。請看下一張投影片。這裡顯示我們的調整後 EBITDA。同樣地，這部分我也略過細節。

As mentioned earlier, PayPay credit and PayPay card, the primary engines of our GMV growth, continue to perform strongly. Furthermore, our take rates continue to expand, primarily driven by favorable shift in our GMV mix. Please turn to the next page.

如先前所述，PayPay 信用（PayPay credit）與 PayPay Card 作為 GMV 成長的主要引擎，持續表現強勁。此外，我們的 take rate 也持續擴大，主要受惠於 GMV 組合朝有利方向轉變。請翻到下一頁。

MTUs increase 10% year on year to approximately 42 million, driven by the growth in our registered user base and the higher active user rate. GMV per MTU, which represents the monthly spending per active user. Continue pto increase, primarily driven by an increase in monthly transaction frequency.

MTU 年增 10%，約達 4,200 萬，主要由註冊用戶基礎成長與活躍用戶率提升所帶動。每位 MTU 的 GMV，代表每位活躍用戶的月度支出。持續增加，主要由月度交易頻次提升所驅動。

For PayPay cards, we continue to see strong new customer acquisition. In addition, new gold card acquisitions increase significantly, driven by the launch of new PayTok. Pricing plan for SoftBank mobile users.

就 PayPay Card 而言，我們持續看到強勁的新客獲取。此外，在推出面向 SoftBank 行動用戶的新 PayTok資費方案帶動下，新金卡的獲取量顯著增加。

Furthermore, revolving and installment loan balances, including the pay in installment later launched in the second-half of the previous fiscal year grew 25% year on year. Cash advance usage also continued to expand strongly, increasing 57% year on year. Please turn to the next slide.

此外，包含於上一會計年度下半年推出的「分期後付（pay in installment later）」在內，循環與分期貸款餘額年增 25%。現金預借使用也持續強勁擴張，年增 57%。請看下一張投影片。

Moving on to the credit metric for PayPay card. Starting this quarter, we are replacing the net charge-off rate disclosing previous earnings presentation with a new metric, the delinquency transition rate. This metric measure the annualized ratio of receivables that migrated to Stage 3 during the quarter relative to the opening receivable balance.

接下來說明 PayPay Card 的信用指標。自本季起，我們將以新的指標「逾期遷移率（delinquency transition rate）」取代過往財報簡報中揭露的淨核銷率（net charge-off rate）。此指標衡量：本季中遷移至第 3 階段（Stage 3）的應收款項，相對於期初應收款餘額的年化比率。

The annualized rate is calculated based on the cumulative transitions over the most recent four quarters. For this quarter, the rate was 2.7%. It's continue to trend downwards, indicating that credit quality of our portfolio remains sound.

年化比率係以最近四個季度的累計遷移情況計算。本季該比率為 2.7%。其持續呈下降趨勢，顯示我們投資組合的信用品質仍然穩健。

Let me turn to the financial service segment. Customer action through the PayPay app continue to be highly effective for both our banking and securities business. Supporting double-digit growth in the number of accounts. The number of PayPay bank accounts has exceeded 10 million.

接著我說明金融服務事業。透過 PayPay App 促成的客戶行動，對我們的銀行與證券業務皆持續非常有效。支撐帳戶數的雙位數成長。PayPay 銀行帳戶數已超過 1,000 萬。

Furthermore, PayPay securities, leveraging zero customer action costs, achieved a 29% year-on-year growth in accounts, moving its ranking up from sixth to fifth among Japan's online brokerages. Despite intense competition for deposits across the banking sector, our deposit balance grew 17% year-on-year to reach JPY2.3 trillion.

此外，PayPay 證券運用零客戶行動成本（zero customer action costs），帳戶數年增 29%，在日本線上券商中的排名由第六上升至第五。儘管銀行業整體存款競爭激烈，我們的存款餘額仍年增 17%，達到 2.3 兆日圓。

Our loan balance reached JPY1.3 trillion, up 37% year-on-year, bringing our loan-to-deposit ratio to 57%. The interest rate margin, the spread between the loan yield and the deposit costs, narrowed slightly, reflecting an increase in corporate loans driven by the diversification of our borrower base to include large enterprises. This slide shows our balance sheet and the key metrics. Our ROE was 22.5% and continued to improve the number.

我們的放款餘額達 1.3 兆日圓，年增 37%，使存放比（loan-to-deposit ratio）達到 57%。利差（interest rate margin），亦即放款收益率與存款成本之間的差距，略為收窄，反映因借款人基礎多元化、納入大型企業而帶動的企業放款增加。本頁顯示我們的資產負債表與關鍵指標。我們的 ROE 為 22.5%，並持續改善。

Lastly, let's turn to our financial guidance. There are three main reasons why we conform and comfortably beat our Q1 guidance. First, GMV in our payment business. Performed better than expected.

最後，來看我們的財務指引。我們能確認並且輕鬆超越第一季指引，主要有三個原因。第一，支付業務的 GMV表現優於預期。

Second, our merchant business saw strong performance. And last, we benefited from favorable external environment, including a strong equity market. Regarding our four-year guidance, reflecting the strong business momentum confirmed in Q1, we are raising our forecast. We expect total revenue to be between JPY467 billion and JPY473 billion, representing a 22% to 24% year-on-year growth, and adjusted EBITDA to be between JPY149 billion and JPY155 billion.

第二，我們的商戶業務表現強勁。第三，我們也受惠於有利的外部環境，包括強勁的股市。關於我們的全年指引，反映第一季確認的強勁業務動能，我們上調預測。我們預期總營收介於 4,670 億至 4,730 億日圓，年增 22% 至 24%；調整後 EBITDA 介於 1,490 億至 1,550 億日圓。

The adjusted EBITDA margin is expected to be around 32% at the midpoint. For our Q2 guidance, we project total revenue to be between JPY114 billion and JPY116 billion, up approximately 24% year-on-year growth. We forecast adjusted EBITDA to be between JPY37.5 billion and JPY39 billion, with an adjusted EBITDA margin of around 34%. You may notice a modest year-on-year growth in the total revenue compared to Q1.

調整後 EBITDA 利潤率預期在中位數約為 32%。就我們對第二季（Q2）的指引而言，我們預估總營收將介於 1,140 億日圓至 1,160 億日圓之間，年增約 24%。我們預估調整後 EBITDA 將介於 375 億日圓至 390 億日圓之間，調整後 EBITDA 利潤率約為 34%。您可能會注意到，與第一季（Q1）相比，總營收的年增幅度略為溫和。

We consider this to be driven primarily by two factors. The absence of the one-time benefit related to favorable external environment in Q1, and the tough comp from the prior year period, which saw a last-minute demand ahead of the rule changes to home tax donation, Japan's municipal donation program. But let me be clear. Our underlying business momentum is as strong as ever, and we are fully confident in our ability to continue delivering robust growth.

我們認為這主要由兩個因素所驅動。第一季（Q1）有利外部環境帶來的一次性利益在本季不再出現；以及去年同期的比較基期偏高，當時因應日本「故鄉納稅」（地方捐款）制度規則變更前的最後一刻需求而出現拉貨。但我想說清楚。我們的基本面業務動能一如既往地強勁，我們對於持續交出穩健成長的能力充滿信心。

This concludes our presentation. We will now open the line for your questions. Thank you.

以上為我們的簡報內容。接下來我們將開放提問。謝謝。

Thank you. We will now move on to the Q&A session. (Operator Instructions)

謝謝。我們現在進入問答環節。（接線員指示）

The first question is from Goldman Sachs, Mr. Makoto Kuroda.

第一個問題來自高盛的黑田誠先生。

Hi, this is Kuroda, Goldman Sachs. Thank you Nakayama-san and Kagechika-san for your presentations and congratulations on delivering a beat and raise. I have one question for Nakayama-san. Your strategy vision is very inspiring. And this quarter, we have also had investments in TND Financial and Seven. My question is, in order to realize your vision of the future, where would you invest capital from here? Are there any missing pieces on your mind now? Thank you very much.

您好，我是高盛的黑田。感謝中山先生與影近先生的簡報，也恭喜本季繳出優於預期並上調展望。我有一個問題想請教中山先生。您的策略願景非常鼓舞人心。而本季我們也看到對 TND Financial 與 Seven 的投資。我的問題是，為了實現您對未來的願景，接下來您會把資本投向哪些領域？目前您心中是否還有任何缺口（missing pieces）？非常感謝。

This slide -- we are sharing on the screen, this is a vision that I have. This is a worldview that I would like to realize. Therefore, we have various options to grow organically and inorganically to realize our business growth. And to grow our profits there are various plans that we have but it's not that we will get this type of great opportunity like the ones that we have right now all the time so in accordance when the opportunity arises based on our investment governance we'll make appropriate decision and carry them out.

我們在螢幕上分享的這張投影片，是我所描繪的願景。這是我希望實現的世界觀。因此，為了實現業務成長，我們有多種選項可透過有機與無機方式來擴張。而在提升獲利方面我們也有各種計畫；但像目前這樣的絕佳機會並不會一直出現，因此當機會出現時，我們會依據投資治理機制做出適切決策並加以執行。

That is very clear. Thank you.

非常清楚。謝謝。

From Morgan Stanley, we'd like to ask Mia Nagasaka to unmute and ask a question.

接下來是摩根士丹利，請長坂美亞解除靜音並提問。

Yes, this is Nagasaka from Morgan Stanley MEFG. Can you hear me? Yes, thank you for your presentation today. I have two questions, if I may. The first point is regarding entering into the insurance business. So I understand that they will be closed next year, but over the medium term, when will the insurance business start to contribute to your overall profit? And by onboarding the live business, how would your balance sheet and P&L change?

是的，我是摩根士丹利 MEFG 的長坂。聽得到嗎？是的，謝謝。也感謝今天的簡報。我有兩個問題，若方便的話。第一點是關於進入保險業務。我理解明年會完成交割，但就中期而言，保險業務何時會開始對整體獲利做出貢獻？另外，將壽險業務納入後，你們的資產負債表與損益表會如何變化？

The reason why I'm asking this is because there are assets and liabilities that's unique to insurance companies as a structure. So over the medium term, what is your KPI and the target? Which KPIs are you going to prioritize? And you may be adopting a different KPI with the insurance business as part of your group, so please elaborate on that.

我之所以這樣問，是因為保險公司在結構上有其特有的資產與負債。因此就中期而言，你們的 KPI 與目標是什麼？你們會優先看哪些 KPI？而且在保險業務成為集團一部分後，可能會採用不同的 KPI，請就此多做說明。

And my second question is, the alliance with Seven & i Holdings, I thought that this was a very good deal. And in promoting further data utilization, how would you exert governance in managing the data? And also for reinforcing the governance, would that impact the state of the data usage or the timing of monetizing the opportunities? So to the extent possible, if you could respond to the questions, that would be great.

第二個問題是關於與 Seven & i Holdings 的策略聯盟，我認為這是一筆非常好的交易。在推動進一步的數據運用時，你們將如何在數據管理上施行治理（governance）？另外，為了強化治理，是否會影響數據使用的狀態或機會變現（monetize）的時點？在可能的範圍內，若能回覆上述問題將不勝感激。

Yes. First, regarding the insurance business, I will first take that question. The strength of PayPay is that we have the fluid business merely focusing on the payment service. But recently, we also entering the stock-based business using a balance sheet. The bank and the security business. Life business I think is typical of the balance sheet-based business.

好的。首先我先回答保險業務的問題。PayPay 的強項在於，我們擁有以支付服務為核心的流量型（flow-based）業務。但近來我們也開始進入使用資產負債表的存量型（stock-based）業務。例如銀行與證券業務。我認為壽險業務是典型的存量型、以資產負債表為基礎的業務。

Also, we want to pursue balance where we are not impacted by just the market. So we want to have both a strong flow-based business and the stock-based business. The data which we build with the flow business can be collected and personalized to lead to the stock business opportunities. So we see great synergies between the two and we believe that this is second to none and this is a very unique business model. That we can only deliver.

此外，我們也希望追求不僅僅受市場影響的平衡。因此我們希望同時擁有強健的流量型業務與存量型業務。我們透過流量型業務所建立的數據，可以被蒐集並個人化，進而帶動存量型業務的機會。因此我們看到兩者之間有很大的綜效，並相信這是無可比擬、非常獨特的商業模式。也是只有我們能提供的。

So we would like to preserve a business model where we can accommodate to the changing external environment. And to that extent, when will the life business start to contribute to the earnings? Regarding the life business, as we have already announced, we will be communicating with the FSA to get the approval for the deal, and we will also have to accommodate to IFRS. So we are looking about a year and a half to close the deal and bring the entity into the group.

因此，我們希望保有一種能夠因應外部環境變化的商業模式。至於您問到壽險業務何時開始對獲利做出貢獻，關於壽險業務，如同我們已公告的，我們將與金融廳（FSA）溝通以取得交易核准，同時也必須因應 IFRS。因此我們預計約一年半後完成交割，並將該公司納入集團。

And that said, so for ARPU, this may not be directly responding to your question, but including the insurance business, the current ARPU is JPY900 and we would like to double that as our target. So not just with the insurance business, but in the last eight years or so we have built up this April growth, and we would like to repeat that with the new opportunities.

另外，關於 ARPU，這可能不完全是直接回答您的問題，但包含保險業務在內，目前 ARPU 約為 900 日圓，我們的目標是將其翻倍。因此不僅是保險業務，在過去約八年我們建立了這樣的 ARPU 成長，我們也希望在新的機會上再次複製同樣的成長。

And for balance sheet and the P&L, we will manage that appropriately. And by including their balance sheet, the balance sheet will get larger, much larger. But we believe that it is manageable for us. Also, Motoda-san, I will make some additional comments.

至於資產負債表與損益表，我們會妥善加以管理。納入對方的資產負債表後，我們的資產負債表規模會變大，且會大幅增加。但我們認為對我們而言是可管理的。另外，元田先生也會補充幾點。

Yes, Nakasaka-san, thank you for your question. I am Motoda from the Finance Division. Regarding the TND Financial Life acquisition, I would like to make one additional comment. Until closing, the closing date is October 1 next year, as Nakayama-san mentioned.

是的，長坂女士，謝謝您的提問。我是財務部門的元田。關於收購 TND Financial Life，我想補充一點。如同中山先生所提到，交割日為明年 10 月 1 日。

So there will be some time in order for us. To discuss about the strategic initiatives, we are going to set up the integrated committee ourselves, T&D Financial Life, and also one IM will be joining this committee. So even before the integration, if we see initiatives where it will be beneficial mutually, then we would like to embark on those activities. So the integration impact will be after the closing of the deal. But we are going to make a thorough preparation so that we can start very strongly as we reach October 1 next year.

因此我們還有一些時間。就策略性措施的討論而言，我們將成立整合委員會，由我們、T&D Financial Life，以及一位 IM 共同加入該委員會。因此即使在整合之前，若我們看到對雙方都有利的措施，也希望能著手推進那些活動。整合所帶來的影響會在交易交割後顯現。但我們會做足周全準備，以便在明年 10 月 1 日到來時能夠非常強勢地啟動。

Yes, that's very clear. Thank you very much.

好的，非常清楚。非常感謝。

So that's the response to your insurance business question. And the other question around the data governance with Seven & i. So of course, we have to get the concept first from the users in regards to how we can use the data. So we will first get the constant from the users, and under that scope, we will be using the data.

以上是對您保險業務問題的回覆。至於與 Seven & i 相關的數據治理問題，當然，我們必須先就如何使用數據取得使用者的同意。因此我們會先取得使用者的同意，並在該範圍內使用數據。

So [799] has a [7ID], and prior to integrating that to PayPay ID, we have always upheld that policy. So that will remain unchanged. So in terms of governance, we will have the appropriate governance to control.

因此，[799]有一個[7ID]，在將其整合至 PayPay ID 之前，我們一直都維持該政策。因此這點將維持不變。就治理而言，我們將建立適當的治理機制來進行控管。

I see. Thank you very much.

了解。非常感謝。

Mizuho Securities, Dan Dolev.

瑞穗證券，Dan Dolev。

Hi can you hear me?

嗨，你聽得到我嗎？

Yeah I can hear me I can hear you.

是的，我聽得到——我聽得到你。

Okay. Congrats excellent quarter. I have two quick questions. On the June -- first one is on the June point reward revamp, very nice to see boosting profitability by $1 billion in the month and the contained impact on retention of GMV. Can you maybe give us some color on how things are trending in July and down the road?

好的。恭喜，這是一個非常出色的季度。我有兩個簡短問題。關於 6 月的點數回饋改版，很高興看到當月使獲利提升 10 億美元，且對 GMV 留存的影響可控。能否請你分享一下 7 月以及後續趨勢的最新情況？

And then my second question is on the guidance. Very, very strong beat on EBITDA, but it looks like the second-half is still very conservative. Just wanted to get a sense of what is embedded in your guidance in terms of reinvestment seasonality on the EBITDA side, given such a strong Q1 or are you simply being very conservative here, which is our assumption. Thank you, and congrats again.

第二個問題是關於財測指引。EBITDA 大幅超預期，但看起來下半年仍然非常保守。想了解你們在指引中，EBITDA 端對再投資的季節性因素納入了哪些假設；在 Q1 如此強勁的情況下，你們是單純採取非常保守的作法（這也是我們的假設）嗎？謝謝，也再次恭喜。

Thank you for asking me those two questions. The first one regarding the June reward change that we made, reward points revisions. We have been quite cautious in planning this initiative and we just carried it out as planned in June time. In July, we are seeing a similar trend as we saw in June. But July is a big campaign time for PayPay, the summer big campaign. So this cost side improvement, is not the only benefit that we're getting actually with this a big campaign we are going to see a uptick in the revenue in GMB as well so there will be a nice balance.

謝謝你提出這兩個問題。第一個是關於我們在 6 月進行的回饋調整，也就是點數回饋的修訂。我們在規劃這項措施時相當謹慎，並已如期於 6 月執行。7 月我們看到的趨勢與 6 月相近。不過 7 月是 PayPay 的大型活動檔期，也就是夏季大型活動。因此，成本端的改善並不是我們從這次調整中獲得的唯一效益；在大型活動帶動下，我們也會看到 GMV 端的營收上升，因此整體會有不錯的平衡。

So it will come down later on down the road that we can share with you. So I would like to keep this comment to this level at the moment and the second point regarding guidance EBITDA outlook. We have made a revision to the guidance and we are making an upper revision this time. And as Dan mentioned, we don't think our guidance is anything conservative.

至於更往後的情況，我們之後再與各位分享。所以目前我先把評論維持在這個層級；第二點是關於指引與 EBITDA 展望。我們已對指引進行修訂，這次是上修。如 Dan 所提，我們不認為我們的指引有任何保守之處。

We are making revisions where it's appropriate, where it's needed. So I hope you see our guidance this way as well and we hope, needless to say that we would like to of course continue to achieve the guidance level. That's all from me. Thank you very much.

我們會在適當、且有需要的地方進行修訂。也希望各位能以同樣的方式看待我們的指引；當然，不用說，我們也希望持續達成指引水準。我這邊就到這裡。非常感謝。

Thank you, and congratulations again on a great quarter.

謝謝，也再次恭喜你們交出很棒的一季。

Darlene Pillar, OAF Research.

Darlene Pillar，OAF Research。

Alright. Good morning. Thank you for the time. Just want to touch on the mix of the business for a minute. I know you mentioned you saw strength in mortgage loans, primarily with other strengths seen in consumer and business loans. Should we expect similar trends going forward?

好的。早安。謝謝撥冗。我想先簡單談一下業務組合。我知道你們提到房貸表現強勁，同時消費貸與企業貸也有其他亮點。未來我們是否應該預期類似的趨勢？

How do you expect the mix to change over time? And maybe just how does that contribute going forward to the economics of the business in terms of both what you can generate on a per user basis and the profitability levels when you consider the different mix that might be that we might see?

你們預期業務組合會如何隨時間變化？以及當我們考量可能出現的不同組合時，這對未來業務的經濟性會有何影響——包括每位用戶可創造的價值，以及整體獲利水準？

Yes. So the loan growth, especially the mortgage loan agree quite strongly. And we are not just seeing a strong growth in the mortgage loan, but we are also focusing on the business loans and the consumer loans because we have some new product launches in Q1.

是的。貸款成長，特別是房貸成長相當強勁。我們不僅看到房貸強勁成長，也同時聚焦企業貸與消費貸，因為我們在 Q1 推出了幾項新產品。

So we want to develop the loan business with a good balance. So we're not just trying to drive the loan business simply by the mortgage book. So that's the response to your first question. And regarding the economics, are you asking about the unit economics per user or the cross use? Can I confirm your question again?

因此我們希望以良好的平衡來發展貸款業務。也就是說，我們並非只靠房貸資產組合來推動貸款業務成長。以上回覆你的第一個問題。至於經濟性部分，你是想問每位用戶的單位經濟性，還是交叉使用（cross use）？我可以再確認一下你的問題嗎？

We're trying to figure out what the impact from the different unit economics of each product, each type of loan product could be on the overall business going forward, so the overall profitability levels.

我們想了解的是：不同產品、不同類型貸款的單位經濟性差異，未來可能如何影響整體業務，也就是整體獲利水準。

So that will be answered by Kagechiko-san.

這部分將由 Kagechiko 先生回答。

I will explain the answer for your second question. And yeah, even though so far we have been growing the mortgage loan. Than the other assets, but using our power over user base and data. And when thinking about the margin spread on each type of loan, our primary focus is the rather the business loan and consumer loan, utilizing the consumer data for the credit evaluation. And where we can secure higher margin.

我來說明你第二個問題的答案。是的，雖然到目前為止我們主要成長的是房貸，相較於其他資產類別更快，這是運用我們的用戶基礎與數據優勢。而在思考各類貸款的利差（margin spread）時，我們的主要重點其實是企業貸與消費貸，透過消費者數據進行信用評估。並在我們能夠取得較高利潤率的領域發力。

But the volume wise, the mortgage loan provide us the higher opportunity to build the loan asset. So going forward, we want to keep the current, the profitability and the growth rate so that we will balance the profitability and the asset building at the same time and to provide the satisfactory results or the financial results or performance to the investors.

但就量體而言，房貸為我們提供了更高的機會來擴大貸款資產規模。因此展望未來，我們希望維持目前的獲利能力與成長率，同時在獲利與資產累積之間取得平衡，並向投資人交出令人滿意的成果——也就是財務結果與績效表現。

Understood. Congratulations on a good quarter. Thank you.

了解。恭喜你們有個不錯的季度。謝謝。

Thank you very much. Next question is from JP Morgan, Koki Sato. (Operator Instructions)

非常感謝。下一題來自 JP Morgan 的 Koki Sato。(接線員指示)

Yes. Hello Sato from JP Morgan here. I have two questions. First one is revision of four-year guidance. Direction of upper revision is understandable but against your beginning of the year plan top-line will increase by JPY11 billion. EBITDA will increase by [JPY14.5 billion]. So the EBITDA increase will be more than the marginal profit together with upward doing better in the top-line.

是的。各位好，我是 JP Morgan 的 Sato。我有兩個問題。第一個是四年期指引的修訂。上修方向可以理解，但相較於年初計畫，營收（top-line）將增加 110 億日圓。EBITDA 將增加[145 億日圓]。因此，EBITDA 的增幅將大於邊際利潤，且同時也反映營收端上修、表現更好。

The second is about the financials and your investments and of course as a listed company you need to generate the profit after tax above your investments accountability in other words. So what kind of return index what kind of hurdle rate that you are using in order to confirm the rationale against this investments.

第二個問題是關於財務與你們的投資；當然，作為上市公司，你們需要在投資之上產生稅後利潤，換句話說，需要對投資負起問責。因此，你們用什麼樣的報酬指標、什麼樣的門檻報酬率（hurdle rate），來確認這些投資的合理性？

Of course based on the various investment project risk return characteristics varies quite a bit but I would like us I would like you to please explain so that we understand your rationale of this investment.

當然，依不同投資專案，其風險與報酬特性差異很大；但我希望——也請你們說明——讓我們能理解你們進行這些投資的邏輯。

I'm not sure whether this will be the answer to your question but as you can see we already in the middle is our revenue less transaction costs, which is really our gross profit margin, RLTC. Actually, there isn't much change year on year, but to the right, our adjusted EBITDA is improved quite a bit, significantly from 27% and past to 34%. So we have applied this increase, this momentum on the four year guidance.

我不確定這是否能完全回答你的問題，但如你所見，我們在中間欄位的「營收扣除交易成本」（也就是我們的毛利率，RLTC）其實年對年變化不大；但在右側，我們的調整後 EBITDA 有相當顯著的改善，從過去的 27% 提升到 34%。因此，我們已將這項提升、這股動能反映到四年期指引之中。

That's our rationale. And why? There are two reasons. The first reason is, from this June time, as Dan asked us, and from members of Social Security, we have revised our reward program from June time, and that's going quite well from June time, and that's being a significant contributor to EBITDA. And we'll see a positive impact for the rest of the year. And GMB is increasing. So we are scaling so we can benefit from operating leverage. So those are the two drivers. And we have reflected this positive momentum to our four-year guidance and that's why we made a revision.

這就是我們的理由。那為什麼呢？有兩個原因。第一個原因是，從今年6月起，正如Dan問到的，以及在社會保險相關成員的意見下，我們自6月起修訂了我們的獎勵計畫；自6月以來進展相當順利，並且已成為EBITDA的重要貢獻來源。而且我們將在今年剩餘期間看到正面影響。同時GMB也在增加。因此我們正在擴張規模，以便受益於營運槓桿。所以這就是兩個驅動因素。我們已將這股正向動能反映在我們的四年期指引中，這也是我們進行修訂的原因。

That's the answer to your first question. And to your second question, you have a point we have calculated quite in precise IRR calculations of course we can and we need to refrain from disclosing that mechanism but we also have studied. With 7-Eleven too based on what we are good at like a data usage or through a personalization of the benefit from a user base big user base we will make a more push type announcements.

這是對你第一個問題的回答。至於第二個問題，你的觀點是對的；我們當然做了相當精準的IRR（內部報酬率）計算，我們可以、也需要避免揭露那套機制，但我們也已經進行研究。另外，與7-Eleven方面，我們也會基於我們擅長的領域，例如數據運用，或透過對龐大用戶基礎的個人化效益，來做更多偏「推播式」的公告。

And we have we've been working together with them and studying in the long-term for the midterm and also a short-term too on the right hand of this page. We would like to grow they are saying that they would like to grow with us. They believe that they can grow together with a pay pay better in terms of improve their profitability and growth that's what led to this times investment thank you very much and this times I wanted [JPY1 billion] investment to [7] and the next year is JPY130 billion investment to F&D Financials.

我們一直與他們合作，並且就長期、中期以及短期（如本頁右側所示）進行研究。我們希望成長，而他們也表示希望與我們一起成長。他們相信，與PayPay更緊密合作能在提升獲利能力與成長方面帶來更好的成果，這也是促成這次投資的原因。非常感謝；這次我們希望對「7」進行[10億日圓]投資，而明年則是對F&D Financials投資1,300億日圓。

About your liquidity cash on hand regarding that capacity, PayPay Corporation's cash loan or the level of your cash balance is that something that we need to study from a current account at the Bank of Japan held by the bank? Let me have our CFO answer that.

關於你提到的流動性、手上現金以及相關承受能力，PayPay Corporation的現金借款或你的現金餘額水準，是否需要從由銀行持有的日本銀行往來帳戶（當座存款）角度來研究？我請我們的CFO來回答。

Of course, we are also providing financial services and we have a separate management for our customers' money and our own money. So that being said, companies' money, our money is listed here as net debt. Currently, we have JPY127 billion level. And together with that, of course, we have cash on hand. The cash position is when we did following our recent appeal, I mean, we still do have cash that we were able to get from capital raise in hand and from last year onwards we've been generating solid profits.

當然，我們也提供金融服務，因此對客戶資金與公司自有資金是分開管理的。在此前提下，公司資金、也就是我們自己的資金，在這裡以淨負債列示。目前大約是1,270億日圓的水準。此外，當然我們也有手上現金。就現金部位而言，在我們最近一次募資之後——我的意思是——我們手上仍有透過增資取得的現金；而且自去年起我們也持續創造穩健的獲利。

So we have more operating cash flow, so with those two pools if you can add those two you can presume how much money fund we have for our company. I think that would give a good estimation. Thank you very much. Thank you very much.

因此我們有更多的營運現金流；把這兩個資金池加總起來，你就可以推估我們公司可動用的資金規模。我認為那會是一個不錯的估算。非常感謝。非常感謝。

Nate Svensson, Deutsche Securities.

德意志證券（Deutsche Securities）的Nate Svensson。

Hi. Thank you for the question and congrats on the nice results. I had two questions, I'll ask them together. The first is just on online GMV growth and the benefits to take rate that you're seeing. Something that you've talked about on both of your earning calls here saw 44% GMV growth in online, which is really strong. So maybe you could talk about what's driving that strength and how long you think this level of growth can be sustainable. Is this being driven by specific merchant or platform partnerships or is this more of a secular trend with higher e-com adoption in Japan that is helping you out?

你好。謝謝讓我提問，也恭喜你們交出漂亮的成績。我有兩個問題，我一起問。第一個是關於線上GMV成長，以及你們看到的抽成率（take rate）帶來的效益。你們在兩次財報電話會議中都有提到，線上GMV年增44%，非常強勁。所以也許你們可以談談是什麼在驅動這股強勢，以及你們認為這樣的成長水準能維持多久。這是由特定商戶或平台合作夥伴所帶動，還是日本電商滲透率提高的長期趨勢在幫助你們？

And then my second question is just on the one-time benefits that you called out for 1Q. I think you specifically referred to a strong equity market. So it would be interesting to hear what the size of that benefit was in 1Q and whether there's any sustained benefit from these factors contemplated in the guide. I know you called out part of the step down from 1Q to 2Q top-line growth. Related to those one-time factors, but just wondering if there's any ancillary benefits included in there?

第二個問題是關於你們在1Q提到的一次性利多。我記得你們特別提到股市走強。因此我想了解，1Q這項利多的規模大概是多少，以及在指引中是否有把這些因素可能帶來的持續性效益納入考量。我知道你們提到從1Q到2Q營收成長率下滑的一部分，與這些一次性因素有關，但我想確認是否還有任何附帶效益也包含在其中？

Yes. So I will take the first question and the second question will be covered by our CFO. Regarding the first question, like you pointed out, the online GMB is growing very strongly by 44% Y-o-Y. And there are three reasons behind that. The first being that for PayPay. The offline payment. Also, we started the offline merchant first because the users can be available anywhere.

好的。我先回答第一個問題，第二個問題由我們的CFO來說明。關於第一個問題，如你所指出，線上GMB年增44%，成長非常強勁。背後有三個原因。第一個是對PayPay而言，我們的線下支付。另外，我們一開始先從線下商戶著手，因為用戶可以在任何地方使用。

Also, users were first starting to use the service for offline payment with the merchant. And then came the peer-to-peer and then later we started to exploit the online payment service. So now the users that were using the offline payment are now using the service online. So that's the first reason.

同時，用戶最初是先在商戶端用於線下支付來使用我們的服務。接著是點對點轉帳，之後我們才開始拓展線上支付服務。因此，原本使用線下支付的用戶，現在也開始在線上使用我們的服務。這是第一個原因。

The second reason is that we are now making efforts to increase the merchant for the online payment. So the larger pool of merchant is the second reason. And thirdly, we are strong with the younger generation, so they have a high usage. And for the online payment, it suits the young people's needs. So the fact that we are strong with the younger segment is uplifting and driving the online GMB growth. So that's my response to your first question. The second question will be covered by Kagechika-san.

第二個原因是，我們目前正致力於增加可使用線上支付的商戶。因此，更大的商戶池是第二個原因。第三，我們在年輕族群中很強勢，因此他們的使用頻率很高。而線上支付也更符合年輕人的需求。所以我們在年輕客群的優勢，正在推升並帶動線上GMB的成長。以上是我對第一個問題的回覆。第二個問題將由Kagechika先生回答。

Yes. So looking at the first quarter top revenue. The year-on-year growth was 27% for the first quarter for the total revenue. And this included the impact of the buoyant equity market. Also, with PayPay Securities, the Commission on Trading with SpaceX IPO, we took a sizable chunk for that deal. And that helped to uplift the total revenue.

好的。就第一季的營收來看，總營收年增率為27%。其中包含股市景氣熱絡所帶來的影響。此外，在PayPay Securities方面，針對SpaceX IPO的交易手續費，我們在那筆交易中取得了相當可觀的一部分。這也有助於推升總營收。

And another reason is we don't have a big exposure. But at PayPal Bank, we have equity-based ETF. And the sales gain also contributed to the top-line growth. So the contribution of the market-related profit on the year-on-year growth would be like 1% to 2% from the good market. Thank you very much.

另外一個原因是，我們的曝險並不大，但在PayPay Bank，我們持有以股票為基礎的ETF。其出售收益也對營收成長有所貢獻。因此，市場相關獲利對年增成長的貢獻，大約是來自良好市況的1%到2%。非常感謝。

Thank you very much.

非常感謝。

Cantor Fitzgerald, Ryan Campbell.

Cantor Fitzgerald 的 Ryan Campbell。

Alright, congrats on the strong results and thank you for taking my question today. PayPay Card growth was impressive this quarter, both the new cards issued and financing balance as well as GMV. Can you talk a bit about what's driving that? You mentioned SoftBank mobile plans. Should we expect that to continue at this pace? And what other levers can you pull on to improve adoption of PayPay Card? Thank you.

好的，恭喜你們有強勁的成果，也謝謝今天讓我提問。本季PayPay Card的成長令人印象深刻，無論是新發卡數、融資餘額以及GMV都表現亮眼。能否談談背後的驅動因素？你們提到SoftBank的行動方案。我們是否應該預期這樣的成長速度會持續？另外，還有哪些槓桿可以用來提升PayPay Card的採用率？謝謝。

Well, thanks for everybody's support. PayPay card is experiencing significant momentum right now, a growth rate. I'd like to elaborate what in the context. PayPay card started as Yahoo Japan card. It was linked with Yahoo Japan's e-commerce. That's how this credit card started, but now that it belongs to PayPay, and about three years ago it rebranded itself to call it a PayPay card, and at that time it was no longer.

好的，感謝大家的支持。PayPay Card目前正展現顯著的動能與成長率。我想在脈絡上多做一些說明。PayPay Card最初是Yahoo Japan Card。它與Yahoo Japan的電商業務連結。這就是這張信用卡的起點；但在歸屬於PayPay之後，大約三年前它重新品牌化，改稱為PayPay Card，而在那個時候它就不再是。

Online dedicated, Yahoo e-commerce dedicated. We had our vision to convert these cards to be the card that they can carry with for everyday payment. So there were certain functions that we had to augment about 30 plus and we developed them, so that now we have this card usable to all. So and that is resonating among especially younger generations.

線上專用、Yahoo 電商專用。我們的願景是把這些卡片轉型成一張可隨身攜帶、用於日常支付的卡。因此有一些功能我們必須擴充，約 30 項以上，我們也已開發完成，讓這張卡現在能夠普遍使用。而這點特別在年輕世代之間引起共鳴。

So they are PayPay users to start out with and now they have a PayPay credit card as well. So they're using both and that is boosting the card usage year on year. And furthermore, SoftBank users by using a PayPay card receives cashback incentives. It's more beneficial to them, better value. So that's also a synergy effect that we are benefiting so those two initiatives is really driving this business so we would like to allocate continue to allocate managing resources to grow this credit card business.

所以他們一開始就是 PayPay 使用者，現在也持有 PayPay 信用卡。因此兩者都在使用，這也逐年推升信用卡使用量。此外，SoftBank 用戶使用 PayPay 卡可獲得現金回饋等獎勵。對他們更有利、性價比更高。因此這也帶來協同效應，我們正受惠其中；這兩項措施確實在推動這項業務，所以我們希望持續配置並投入經營資源，以擴大這項信用卡業務。

Thank you very much.

非常感謝。

Nagasaka.

Nagasaka。

Yes, this is Nagasaka from [BLB securities]. I have two questions. My first question is regarding the investment into TND Financial Life. Also, if I may talk about the peer after LifeNet -- life. The online life companies have tried to attack the market for about 20 years but the online life product sorry the life product is not something that people will purchase passively it has to be promoted by the sales agent so that's why the online companies have not been able to pave their ways fully into. The market competing against the incumbents. So how do you plan to approach this structural issue?

是的，我是來自[BLB 證券] 的 Nagasaka。我有兩個問題。第一個問題是關於對 T&D Financial Life 的投資。另外，如果可以的話，我也想談談 LifeNet 之後的同業——壽險。線上壽險公司約 20 年來一直嘗試攻占市場，但線上壽險產品——抱歉，壽險產品並不是人們會被動購買的商品，必須由業務員推廣，因此線上公司一直無法完全打開局面。在與既有業者競爭的市場中。那麼你們打算如何因應這個結構性問題？

So if you are just going to be similar with the strategy of the previous online instruments, it may be just like an insurance shop that you can find on the street. So what is going to be your differentiating strategy? And the second question is regarding your alliance with 7-Eleven. The [7] total revenue, I think, is about JPY5 trillion per annum. And the PayPay penetration, how much is that within the 7 revenue? And by interacting the ID and establishing a close relationship, how do you expect the pay pay penetration to go up?

如果你們只是採取與過去線上工具相似的策略，可能就會變成街上隨處可見的保險店。那麼你們的差異化策略會是什麼？第二個問題是關於你們與 7-Eleven 的合作。[7] 的總營收我記得大約每年 5 兆日圓。在 7 的營收中，PayPay 的滲透率大概是多少？以及透過 ID 互通並建立緊密關係後，你們預期 PayPay 的滲透率會如何提升？

Even if it's only 10% of JPY5 trillion, it will be JPY500 billion. So if successful, I think the contribution to GMB could be significant. And furthermore, if possible, can you tell me? Because I understand that there are 20 million visitors to 7-Eleven. And by integrating ID, you have the MTU of 40 million people. How much of that would you expect to see as an incremental growth on top of the current MTU with the collaboration with 7-Eleven to integrate the ID?

即使只占 5 兆日圓的 10%，也有 5,000 億日圓。所以若成功，我認為對 GMB 的貢獻可能相當可觀。另外，如果可以的話，能否也請你們說明：我理解 7-Eleven 有 2,000 萬名訪客。而透過 ID 整合，你們的 MTU 有 4,000 萬人。在與 7-Eleven 合作整合 ID 的情況下，你們預期在現有 MTU 之上，能帶來多少增量成長？

Yes. So regarding the T&D financial, the first question. I will be repeating my previous answer, but the closing will be about 18 months. So we have a lot of time to prepare. And first, looking at the track records, we have a PayPay mini app. On the home screen of PayPay, you can buy insurance products. It's a small ticket, a short-term insurance. But most of that is what we offer as the insurance product lineup. But by just placing that on the platform, the 75 million users, will be looking for different type of insurance products, such as the insurance to cover for the heat stroke and also for Bicycles.

好的。關於第一個問題，T&D Financial。我會重申先前的回答，交割完成大約需要 18 個月。所以我們有很多時間可以準備。首先，從實績來看，我們有 PayPay 迷你 App。在 PayPay 的首頁畫面上，就可以購買保險產品。那是小額、短期的保險。而目前我們提供的保險產品組合大多屬於這一類。但僅僅把它放在平台上，7,500 萬用戶就會尋找不同類型的保險產品，例如防中暑的保險，以及自行車相關保險。

We already have a track record of selling 10 million policies, so we are a known we are not a life insurance company but we already have the track record of having sold 10 million policies and I think this is unprecedented in Japan.

我們已經有銷售 1,000 萬張保單的實績，所以我們是眾所周知的——我們不是壽險公司，但我們已經有賣出 1,000 萬張保單的紀錄，我認為這在日本是前所未有的。

So I understand your point, but compared to the online players that have challenged the market, I want to say that we are different because we already have built the track record. And on the second point, if you look at the graph on the right, it's a licensed business. So we have the PP bank deposits and also PP securities mutual funds. And then going forward with T&D Financial Life, we will have the savings type insurance product. And that's how we will explain to the professionals, but to the users.

所以我理解你的觀點，但相較於那些挑戰市場的線上業者，我想說我們不同，因為我們已經建立了實績。第二點，如果你看右側的圖表，這是需要牌照的業務。我們有 PP 銀行存款，也有 PP 證券的共同基金。接下來與 T&D Financial Life 合作後，我們將提供儲蓄型保險產品。這是我們對專業人士的說法，但對用戶則是——

Rather than where the products are coming from, we will look at the life stage of each users. Are they looking for low return, low risk, or middle return or middle risk, or high return or high risk? So how can we build a portfolio for that particular individual to optimize and serve their needs? So we are planning to make a proposal to offer the optimal solution.

我們不會著眼於產品來自哪裡，而是會看每位用戶的人生階段。他們是在尋找低報酬低風險、中報酬中風險，或高報酬高風險？那麼我們如何為該個人建立投資組合，以最佳化並滿足其需求？因此我們計畫提出建議，提供最適解。

So we're not just going to push the bank's ordinary deposit or time deposit, or just the proposed equity trading ETF from PB securities or just to offer the saving type life product from the life entity. So we will look at what is going to be the optimal solution, optimal investment portfolio that suit that person's life stage. And I think that is going to be the competitive edge for PayPay and how we'll be able to achieve that with UX. Also, I think this is a challenge that is totally different from what the others have done. So I hope that you will be patient to see what we can deliver and achieve.

所以我們不會只是推銀行的活期存款或定期存款，或只是推薦 PB 證券的股票交易、ETF，或只是提供壽險公司的儲蓄型壽險產品。我們會看什麼才是最適解、最適合那個人所處人生階段的最佳投資組合。我認為這將成為 PayPay 的競爭優勢，以及我們如何透過 UX 來實現。而且我認為這是一個與其他人所做的完全不同的挑戰。所以也希望你能耐心期待我們能交付並達成的成果。

Also, on the second question, regarding alliance with Seven and I, we cannot offer you the actual penetration rate of pay-pay service vis-a-vis their revenue. But the very reason why Seven is willing to partner with us. Of this deal is because they saw a good penetration rate of our service within their sales.

另外，第二個問題，關於與 Seven & i 的合作，我們無法提供 PayPay 服務相對於其營收的實際滲透率。但 Seven 願意與我們合作的根本原因，就是因為他們在其銷售中看到了我們服務具有良好的滲透率。

Also, with the usage [711], that will increase the daily usage of the payment services. Also, I think this will also have a ripple effect to other merchants. That's been the successful business model that we have built in the last eight years with Seven and i. And we want to increase the market share at the cash wrap so that we can also use that data to leverage that for our stock business. That's the new business model that we would like to establish.

此外，隨著在 [711] 的使用，將提高支付服務的日常使用頻率。我認為這也會對其他商戶產生外溢效應。這是我們在過去八年與 Seven & i 一起建立的成功商業模式。我們希望提升收銀台端的市占率，並利用這些數據，進一步槓桿運用到我們的股票業務。這就是我們想要建立的新商業模式。

Yes, thank you very much for such a detailed answer. I have now a better understanding of your strategy. I look forward to your further progress.

好的，非常感謝如此詳細的回答。我現在對你們的策略有更好的理解。期待你們後續的進展。

Thank you.

謝謝。

Thank you. So this concludes the Q1 earnings announcement. Thank you again for joining us today. Thank you.

謝謝。以上為第一季財報發布會的問答結束。再次感謝各位今天的參與。謝謝。