Slide 1: Fiscal Year 2022 Second Quarter Results Presentation
Fiscal Year 2022 Second Quarter Results Presentation STOCK CODE: 9449 August 8, 2022 1
Slide 2: Changes in rules to record the revenues | Impact
Changes in rules to record the revenues* | Impact Net sales based on new rules (concept diagram) Net sales • Online Advertising & Media Net amount processing of ad spot purchase amount in advertising agency leads to an apparent drop • Infrastructure Limited impact is observed despite change from one
Slide 3: Changes in rules to record the revenues | Comparison with the same period last year
Changes in rules to record the revenues* | Comparison with the same period last year Affected divisions (consolidated, Infrastructure, Online Advertising & Media) ▶ Compared to the same period last year (old v.s. old) to show the actual conditions of the business ( Compared to the same period last y
Slide 4: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 4
Slide 5: Overview | Executive Summary: Q2 FY2022 (Apr-Jun)
Overview | Executive Summary: Q2 FY2022 (Apr-Jun) Compared to the same period Old New Old last year (old v.s. old) Q2’21 Q2’22 Q2’22 YoY (JPY billions) Change (Apr-Jun) (Apr-Jun) (Apr-Jun) Change Net Sales 59.2 69.4 77.2 +18.0 +30.5% Record high 19.8 Record 19.8 +9.7 +95.7% Operating Profit 10.1 hig
Slide 6: Overview | Executive Summary: Q2 FY2022 (Apr-Jun)
Overview | Executive Summary: Q2 FY2022 (Apr-Jun) Net sales OP Up 18.0B YoY Up 9.7B YoY Old (JPY billions) (JPY billions) Old New +12.1 +0.277.2 * +1.0 19.8 19.8 New +9.7 -0.0 +2.4 69.4 +3.4 -7.8 Old +4.1 -4.4 Old +0.8 +0.1 59.2 +0.6 10.1 -2.7 Difference between Difference Q2‘21 Infrastructure Finan
Slide 7: Overview | Executive Summary: Q2 FY2022 (Apr-Jun)
Overview | Executive Summary: Q2 FY2022 (Apr-Jun) Compared to the same period last year (old v.s. old) Evaluation JPY 38.8B Services each hold top share in their respective markets Net sales (Up 12.0% YoY) Internet in Japan → 〇 Infrastructure OP JPY 5.6B (Up 14.0% YoY) Double-digit increase in profi
Slide 8: Overview | Executive Summary: Q2 FY2022
Overview | Executive Summary: Q2 FY2022 Compared to the same period Old New Old last year (old v.s. old) Q2’21 Q2’22 Q2’22 YoY (JPY billions) Change (Jan-Jun) (Jan-Jun) (Jan-Jun) Change Net Sales 120.4 125.5 141.4 +20.9 +17.4% Record high 30.9 Record 30.9 +8.3 +36.9% Operating Profit 22.6 high 33.4
Slide 9: Overview | Shareholder Returns (Policy)
Overview | Shareholder Returns (Policy) Total Shareholder Dividend Payout Ratio Share Buyback Returns Ratio 50% Over 33% 17% Quarterly dividend Net profit at end of fiscal year to form basis of buyback in following year 9
Slide 10: Overview | Shareholder Returns (dividend per share)
Overview | Shareholder Returns (dividend per share) (JPY) 52.7 12.6 Dividend increased 15.8 YoY 10.8 30.8 28.0 JPY 29.5 24.2 23.0 10.6 11.8 12.2 5.0 6.0 7.2 7.4 5.5 ■ Q4 6.0 ■ Q3 6.2 6.0 6.2 19.6 ■ Q2 6.0 17.1 ■ Q1 5.0 6.0 6.0 6.6 17 18 19 20 21 22 10
Slide 11: Rock-solid recurring revenues that support sustainable growth
Rock-solid recurring revenues that support sustainable growth 11
Slide 12: Sustainable growth
Consolidated Net sales 241.4 (JPY billions) Sustainable growth 7.9 00 02 04 06 08 10 12 14 16 18 20 12
Slide 13: Rock-solid recurring revenue
Rock-solid recurring revenue Business structure that GMO Internet Group has been aiming at since its founding Indispensable products that will not disappear and recurring revenue business model 13
Slide 14: Analysis of consolidated net sales | Rock-solid recurring revenue
Analysis of consolidated net sales | Rock-solid recurring revenue 48.6% 241.4 36.1% 210.5 196.1 (JPY billions) 185.1 124.0 Rock-solid recurring 154.2 100.5 revenues that 135.0 support sustainable 103.0 126.3 104.4 109.3 growth 82.9 79.2 79.4 69.9 110.0 117.4 93.1 Rock-solid recurring revenue* 71.3 8
Slide 15: Analysis of Rock-solid recurring revenue | Unit price and number of contracts
Analysis of Rock-solid recurring revenue | Unit price and number of contracts Unit price Approx. JPY 10K (JPY) 9,200 x Rock-solid 6,200 recurring Approx. 12M contracts (JPY billions) revenue 117.4 x Number of 39.4 contracts 12M 14 15 16 17 18 19 20 21 Rock-solid 6M recurring revenue 15
Slide 16: Growth of consolidated net sales (concept diagram)
Growth of consolidated net sales (concept diagram) Aims at sustainable growth based on Rock-solid recurring revenues Rock-solid recurring revenue Other revenue 14 15 16 17 18 19 20 21 22 23 ・・・ 16
Slide 17: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts 12.88 12.83 (millions) 12.63 12.11 11.58 11.71 11.72 11.43 11.55 11.51 11.26 10.92 10.73 10.35 9.94 9.60 Rock-solid 9.27 8.97 9.09 8.71 8.76 8.75 revenue base 12.83M customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 18 19 20 21 22 17
Slide 18: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Rock-solid revenue base 15.25M customers (Infrastructure and Finance) Up 1.70M YoY *Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions. *Number of customers is an aggregate number of customers (the actual n
Slide 19: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 19
Slide 20: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment Compared to the same period last (JPY billions) year (old v.s. old) 77.2 12.8 64.4 64.1 61.2 1.2 59.2 4.3 2.0 Revenue up 6.8 56.4 10.3 53.6 52.8 53.2 5.7 10.8 3.6 50.9 50.8 11.3 30.5% 0.8 2.7 49.1 49.1 47.5 48.0 1.6 8.2 6.9 45.8 46.8 9.0 6.0 7.3 9.1 6.5 43.7 15.
Slide 21: Group Overview | Profit by Segment
Group Overview | Profit by Segment Compared to the same period last (JPY billions) year (old v.s. old) 19.84 12.47 10.16 Profit up 95.7% 0.07 10.46 11.12 0.25 4.02 10.14 0.31 0.15 0.43 1.24 8.97 8.28 8.13 2.34 8.01 3.65 1.91 0.44 6.51 0.42 1.48 2.97 YoY 5.95 3.85 5.26 0.01 0.42 6.09 3.10 0.88 5.65 1
Slide 22: Group Overview | Listed Group Companies: Equity Share
Group Overview | Listed Group Companies: Equity Share Market Cap*1 Equity Share Stock Code Stock Name Exchange % Ownership*2 (JPY billions) (JPY billions) 9449 GMO Internet Prime 298.6 3769 GMO Payment Gateway Prime 890.3 40.7% 362.5 7177 GMO Financial Holdings Standard 89.8 65.3% 58.6 3788 GMO Glob
Slide 23: Group Overview | Strengths: Technology
Group Overview | Strengths: Technology Goal: Workforce of 7,133 7,042 6,767 6,782 6,554 6,272 over 50% 6,180 6,001 6,058 5,995 6,012 5,958 6,048 5,767 5,758 5,670 5,691 5,454 5,275 5,278 5,316 5,080 48.9% engineers 46.2% 45.6% 44.9% 44.2% 44.9% Partners % Engineers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 24: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 24
Slide 25: Internet Infrastructure | Collection of No.1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 83.0 Strong No. 1 Domain Registry % ＊1 Domestic market share at Domain Registrar 83.1 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 57.1 % ＊3 No. 1 ASP Cart 59K paid stores No. 1 Domestic market share
Slide 26: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. old) 38.8 37.0 0.8 35.8 0.5 34.6 34.3 0.7 33.5 33.5 33.9 0.7 32.8 0.8 0.5 1.0 31.3 2.0 1.3 Revenue up 13.0 29.6 1.7 12.3 28.4 28.5 12.0 1.2 27.1 27.4 1.6 1.1 9.7 10.2 10.9 11.3 12.0% 25.
Slide 27: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) 6.32 5.53 5.62 4.67 4.74 4.93 Profit up 14.0% 4.01 4.02 3.87 3.76 3.72 3.61 3.58 3.15 3.09 2.93 YoY 2.76 2.50 2.58 2.15 2.02 1.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 28: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts User companies (extract) (thousands) 732 Increased 588 3.2-fold YoY 226 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 19 20 21 22 28
Slide 29: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (thousands) 1,212 Increased 992 2.2-fold 543 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 19 20 21 22 29
Slide 30: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by18 local governments and groups was determined 30
Slide 31: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 131 128 122 125 117 118 119 119 111 Up 67 68 68 77 72 74 73 80 78 77 81 83 85 5.2% 112 113 119 YoY Freenance SUZURI, Canvath minne Ecommerce Platform Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 1
Slide 32: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 32
Slide 33: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) 15.1 year (old v.s. old) 14.6 1.1 13.6 13.5 1.3 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 3.6 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 0.9 0.8 0.9 11.0 Revenue up 11.0 10.7 10.7 0.7 0.8 3.0 3.9 0.8 0.7 10.7
Slide 34: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) 0.88 Profit up 25.5% 0.64 0.53 0.42 YoY 0.31 0.32 0.28 0.25 0.23 0.24 0.25 0.25 0.19 0.17 0.14 0.09 0.06 0.05 0.06 0.04 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 35: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 35
Slide 36: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter Compared to the same period last (JPY billions) year (old v.s. new) 11.3 10.7 10.3 9.1 9.0 Revenue up 49.9% 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.8 6.9 6.9 6.9 6.7 6.5 Profit up 6.3 6.0 5.5 39.8% Net Sales 3.81 3.85 3.65 YoY 3.30 3.39 2.91 3.10 2.97 2
Slide 37: Internet Finance | FX Trading Volume
Internet Finance | FX Trading Volume 840 No.1 market share in Japan*3. Trading volume 341 290 reached a record high. 257 244 24.8% 174 26.2% 24.0% 22.5% 22.7% 19.6% Trading volume (JPY trillions) Share (%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 18 19 20 21 22 Prepared b
Slide 38: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 38
Slide 39: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 39
Slide 40: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales Compared to the same period last (JPY billions) year (old v.s. new) 6.8 1.3 5.7 1.5 4.3 Revenue down 2.7 3.6 0.8 77.4% YoY 2.6 2.6 5.4 1.6 2.3 1.8 2.1 0.6 2.0 1.2 1.2 4.1 1.6 1.5 1.4 1.2 1.2 0.6 0.2 1.0 0.2 0.8 1.2 0.9 0.4 0.8 ■ payment 2.1 2.0 0.3 0.6 0.7 0.2 1.7 ■
Slide 41: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit Compared to the same period last (JPY billions) year (old v.s. new) 4.02 2.34 Operating loss 0.39B 1.48 1.24 0.67 JPY 0.53 0.42 0.42 0.38 0.25 0.21 0.10 0.08 0.15 -0.07 -0.23 -0.22 -0.26 -0.39 -0.73 -0.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 42: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 42
Slide 43: Japan's strongest white hat hacker organization
Japan's strongest white hat hacker organization 43
Slide 44: GMO Cybersecurity for Synergies
Synergies Enhance group service defense White hat hacker education within the group GMO Cybersecurity for Bank Development of SaaS products 44
Slide 45: Working on Web3 area
Working on Web3 area GMO
Slide 46: Web3
Web3 Services using blockchain and cryptoassets are collectively referred to as the Web3. Global trends. Read Write Own Source: a16z, "State of Crypto", https://a16zcrypto.com/wp-content/uploads/2022/05/state-of-crypto-2022_a16z-crypto.pdf 46
Slide 47: Accumulated know-how of blockchain and cryptoassets since 2015
Working on Web3 area Accumulated know-how of blockchain and cryptoassets since 2015 Cryptoassets mining Cryptoassets exchange Stablecoin NFT marketplace Goods creation with Blockchain NFT domain Metaverse NFT contents vulnerability diagnosis 47
Slide 48: Hands-on corporate venture capital (CVC) that specializes in the Web3
Establishment Hands-on corporate venture capital (CVC) that specializes in the Web3 venture capitals 48
Slide 49: Business description
Business description Supporting the Web3 venture capital issues with technologies. Planning to make investment. Balance sheet of Web3 venture capital Supporting with lending, etc. Blockchain technology support Loans from existing financial institutions Business Investment Business support Financial
Slide 50: Members
Members With internal and external experts as Directors and an Advisor Representative Director Chairman Director Director Director Director and CEO Masakazu Masatoshi Kumagai Yuki Naito Toshiaki Horiuchi Kentaro Sato Tomohiro Uchida Masushima Director Director Satoshi Makita Director Director Adviso
Slide 51: Changing company name
Changing company name GMO
Slide 52: Changing company name
Changing company name Date of entry into force (planned): September 1, 2022 GMO Internet, Inc. GMO Internet Group, Inc. 52
Slide 53: Internet for Everyone
Internet for Everyone 53 53
Slide 54: Next earnings announcement and disclaimer
We are planning on making an earnings announcement for FY2022 third quarter after 3 pm on November 14, 2022. This document includes projections based on expectations, premises and plans as of August 8, 2022. These projections may differ from actual results due to factors including changes in the glo
Slide 55: Appendix
Appendix 55
Slide 56: Group Overview; Finance conditions and policy; Consolidated results; ESG activities
Group Overview Finance conditions and policy Consolidated results ESG activities 56
Slide 57: Group Overview
Group Overview Company Name GMO Internet, Inc. Decentralized group Founder, Chairman and Group CEO Masatoshi Kumagai management in order to adapt rapid changes of Internet industry. Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo (The 2nd Group Head Office) SHIBUYA F
Slide 58: Group Structure by each segment(1/2)
Group Structure by each segment(1/2) GMO-AP (4784) GMO-I(9449) GMO-TE GMO-PG GMO-FG (6026) (3769) (4051) Internet GMO-GSHD Online Advertising GMO-ME Infrastructure (3788) & Media (6180) GMO-PB (3633) GMO-RE (3695) Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS Other GMO-FG：GMO FINANCIAL GATE
Slide 59: Group Structure by each segment(2/2)
Group Structure by each segment(2/2) GMO CLICK Securities GMO-I(9449) GMO-FH GMO-FH Internet Finance (7177) Gaika ex byGMO Cryptoassets (7177) GMO Coin Other Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD 59
Slide 60: Internet services operations
Internet services operations GMO-I(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Other Other GMO-PG (3769) GMO-I Payment GMO-FG (4051) GMO-GSHD (3788) Hosting & cloud Other GMO-PB (3633) Other Provider GMO-I GMO-PB (3633) E-commerce solutions Listed subsidiaries Other (stock code) 60
Slide 61: Group Overview; Finance conditions and policy; Consolidated results
Group Overview Finance conditions and policy Consolidated results Strategic Topics 61
Slide 62: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 Human resources 10,189 Advertising and promotion 45,000 9,997 10,147 11,768 4,532 Depreciation and leases 40,000 10,602 2,848 2,860 3,678 Outsourcing costs 3,771 35,000 2,910 2,834 4,329 3,208 3,704 4,012 Communication costs 30,000 3,
Slide 63: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO End of End of (JPY millions) Change Financial HD INTERNET 12/2021 6/2022 (End of 6/2022) (End of 6/2022) Current Assets 1,292,984 1,301,883 8,899 950,877 67,125 Cash & Deposits 240,136 280,607 40,471 78,052 37,838 Fixed Assets 125,952 131,848 5,895 28,868 104,338 G
Slide 64: Consolidated Profit and Loss
Consolidated Profit and Loss Q2'21 Q2'22 supplementary (JPY millions) Change (1-6/2021) (1-6/2022) information Net Sales 120,480 125,556 4.2% Gross Profit on Sales 64,059 80,087 25.0% Operating Profit 22,620 30,941 36.8% （OP Margin） 18.8% 24.6% +5.9pt Non Operating Profit and Loss 1,000 2,541 154.1%
Slide 65: Finance policy
Finance policy ■Investment Policy Avoid excessive risk-taking, considering balance of Shareholders equity. As of June FY.22 Future plans ①Try to issue debt finance from short term to long After June.2021, term. Financial ②Continuous issuing Issued unsecured straight corporate bond totally Activity 5
Slide 66: Group Overview; Finance conditions and policy; Consolidated results; ESG activities
Group Overview Finance conditions and policy Consolidated results ESG activities 66
Slide 67: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment Compared to the same period last (JPY billions) 69.4 year (old v.s. new) 7.8 64.4 56.0 61.2 59.2 4.3 12.8 56.4 8.0 6.8 53.6 52.8 53.2 5.7 1.2 3.6 50.8 11.3 Revenue down 50.9 0.8 2.7 2.0 49.1 49.1 47.5 48.0 1.6 8.2 6.9 10.3 45.8 46.8 9.0 6.0 7.3 9.1 10.7 17.3%
Slide 68: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 8.2％ 5.81 7.4% 6.4％ 5.5％ 4.84 5.04 5.17 5.12 Net sales YoY 4.36 Global Sales Ratio 6.1% 3.8％ 3.42 3.20 2.98 2.97 3.07 5.8%UP 3.00 3.01 2.80 2.88 2.84 2.86 1.93 1.67 Net 1.39 1.41 1.35 Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated su
Slide 69: Internet Infrastructure
Internet Infrastructure 69 69
Slide 70: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. new) 36.6 34.7 2.1 35.8 2.2 0.8 34.6 34.3 0.7 33.5 33.5 33.9 0.7 0.5 0.5 32.8 0.8 1.0 31.3 2.0 1.3 29.6 1.7 28.4 28.5 Revenue up 12.0 12.6 1.2 27.1 27.4 1.6 1.1 9.7 10.2 10.9 11.3 12.0 2
Slide 71: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 4.38 Payment business Other Cost distribution 3.63 3.12 2.42 1.85 1.73 1.40 1.95 1.59 1.68 1.38 0.66 -0.25 -0.27 -0.34 -0.34 -0.51 -0.64 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 18 19 20 21 22 71
Slide 72: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 2,262 2,213 10,524 10,593 2,087 9,606 8,429 1,650 6,460 1,202 4,455 764 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017
Slide 73: Internet Infrastructure | Provider - KPIs (number of lines)
Internet Infrastructure | Provider - KPIs（number of lines) Optical line (Since July 2021) Others Mobile Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021 2022 73
Slide 74: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 2,244 7,084 6,920 2,144 2,179 6,704 6,573 2,020 6,118 6,050 1,902 1,806 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 75: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 75
Slide 76: Internet Infrastructure | Domain business Registration progress
Internet Infrastructure | Domain business“ ” Registration progress (thousands) 1,161 957 614 696 656 Renewal rate: 70.4%* 228 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021 2022 * Renewal rate for domains registered between September 2016 and May 2020 (2nd
Slide 77: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,569 1,095 1,025 3,946 917 3,726 3,610 866 3,533 3,519 815 796 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018
Slide 78: Broad ASP shopping cart businesses
Broad ASP shopping cart businesses Recurring revenue and transaction revenue through a natural cross-selling Feature Online store Payment Service Business model Recurring Transaction Revenue Number of stores x unit price GMV x commission rate, etc. Reportable segments Ecommerce Solutions Payment 78
Slide 79: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) Recurring revenue (ASP shopping cart) 4,195 72.5 69.4 67.7 66.7 3,687 65.1 64.2 3,622 2,816 2,510 2,109 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 80: Internet Infrastructure | Security business
Internet Infrastructure｜Security business Having our own Certificate Authority, we can provide both of types ◆E-sign ◆Digital-Sign Proof strength ◎ ○ (Electronic Signature Law Article 3) Process Approved by Certificate Verified by email Authority Less load for contractual Merit strict governance par
Slide 81: Internet Infrastructure | Security business | Our vision
Internet Infrastructure | Security business | Our vision Contribute to the world that securely connects important information Digital ID Digital Asset Asset certification Finance, Information and Rights IDaaS E-Sign IoT for Certification for semiconductors Individual ID Certification for device ID I
Slide 82: Internet Infrastructure | Payment processing - Overview
Internet Infrastructure | Payment processing - Overview Connecting merchants and payment companies on contracts, payment data and money flow Consumer Merchant Our Company Payment Company ※1 138,119 stores 40+ Credit card (As of end-June 2022) companies EC Convenience store BtoB・BtoC・CtoC Account tra
Slide 83: Internet Infrastructure | Payment processing – KPIs
Internet Infrastructure | Payment processing – KPIs Group-wide annual TRX value reaches ¥10.4 trillion ※1 ※2 Operating stores: 138,119 stores, TRX volume approx. 1.25 bil., TRX value approx. ¥2.9 trillion. (10M transactions) (Stores) (¥Tr.) 14 160,000 2.2 （Reference）Online payment: TRX volume approx
Slide 84: Online Advertising & Media
Online Advertising & Media 84 84
Slide 85: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) 7.8 8.5 year (old v.s. new) 13.6 13.5 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 11.5 0.7 11.4 0.8 11.5 11.3 11.8 0.9 11.3 0.9 6.6 11.0 0.9 0.9 11.0 10.7 10.7 0.7 0.8 3.0 6.7 0.8 0.7 10.7 0.7 Revenue down 0.8
Slide 86: GMO-Research | Audience Engagement Platform
GMO-Research | Audience Engagement Platform Audience 3 Number of Engagement Consumer’s Voice increase Platform Client-side API Panel-side API Quality (Supply-side) Management 2 1 Client-side Panel-side API connection API connection increase increase * Prepared based on Presentation material of GMO-R
Slide 87: GMO-Research | Business Model
GMO-Research | Business Model Standardization of low-cost internet research tools which were previously developed on a per-company basis Survey Tabulation Past Creation /Analysis Each company’s own system Research Survey Distribution Company A Panel Company A Data Collection Company’s own Survey Tab
Slide 88: GMO-Research | What's happening in the Sample Panel Market
GMO-Research | What’s happening in the Sample Panel Market • ・Established Market Research companies continue to outsource online sample management • ・Marketers easily perform lite research with panels (consumers) with Self Service Platforms • ・API connections with other sample panel providers using
Slide 89: Internet Finance
Internet Finance 89 89
Slide 90: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) 2,302 2,369 418 554 270 1,127 5,946 5,095 5,124 4,873 4,823 Securities and others 3,754 CFDs / Stock Index Binary Options OTC-FX / Binary Options Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021 202
Slide 91: Internet Finance | CFD Transaction and Profit transition
Internet Finance | CFD Transaction and Profit transition （Billion Yen） 30 transaction(right) CFD売買代金（右軸） 30 Profit (left) CFD収益（左軸） 28 25 25 23 25 22 Transaction volume 20 20 Y/Y 122.9 %UP 15 15 Profit 11 10 10 10 Y/Y 115.2%UP 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2
Slide 92: Internet Finance | FX Business Model
Internet Finance | FX Business Model • Effective matching and thorough risk minimization with cover transactions executed with counter parties as soon as customer orders exceed acceptable risk position. GMO CLICK Securities ● ● ● Hedge the client transactions ● ● ● that exceed Cover order Method (1)
Slide 93: Cryptoassets
Cryptoassets 93 93
Slide 94: Cryptoasset business
Cryptoasset business ｍining Mining Business Crypto Exchange Exchange business asset payment Payment business ┗ Issuing Stablecoin 94
Slide 95: Cryptoasset Exchange business | Transaction volume transition
Cryptoasset Exchange business |Transaction volume transition （10 B） 14,000 60.3% 12,000 10,000 Y/Y 8,062 8,000 DOWN 6,000 3,497 4,000 3,199 ＜Q2’22 Main enhanced service activities＞ 4/27 Started to accept IEO 2,000 5/18 Started handling with FCR Coin（FCR） 6/8 Added those new coins to OTC 0 OMG、XTZ、EN
Slide 96: Cryptoasset Exchange business | Accounts and deposit asset transition
Cryptoasset Exchange business | Accounts and deposit asset transition （thousand accounts） （Billion） 700 1,800 Client Asset(R) 顧客預り資産（右軸） Accounts(L) 暗号資産口座数（左軸） 1,558 1,600 Accounts 600 500 526 101 K UP YoY 1,400 1,133 500 1,200 400 1,000 424 866 Deposit Asset 23.6%DOWN 300 800 600 200 YoY 400 100 2
Slide 97: Cryptoassets Exchange | Business model
Cryptoassets Exchange | Business model OTC Trading Exchange Trading Hedging counter part positions Offering the order matching platform by cover order Liquidty Provider Customer Broker Trading Cover order Trading BUY Exchange SELL Main income：Spread Main income：Transaction fee （buy and sell spread）
Slide 98: GMO AOZORA NET BANK
GMO AOZORA NET BANK 98 98
Slide 99: Net Bank | Number of business accounts
Net Bank | Number of business accounts 47.3 (thousands) 39.2 32.1 Increased 2.0-fold 27.3 23.2 19.5 16.2 10.0 13.1 YoY 6.9 4.7 3.0 0.9 1.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 20 21 22 99
Slide 100: Net Bank | Total contracted number of Embedded Financial service
Net Bank |Total contracted number of Embedded Financial service （API Included) 322 281 233 Strong trend 196 158 127 103 79 59 39 29 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 20 21 22 100
Slide 101: NFT
NFT 101 101
Slide 102: NFT marketplace
NFT marketplace • New released app optimized UI/UX for smartphones • Accessible NFT search, appreciation and secondary sales anytime, anywhere Released app for iOS・Android On 31 March * Prepared based on Results Presentation of GMO-FH 102
Slide 103: GMO Web3
GMO Web3 103
Slide 104: Team
Team Chairman Representative Director and Masatoshi Kumagai CEO GMO Internet, Inc. Tomohiro Uchida Chairman and Group CEO GMO Internet, Inc. Expertise:Growth and General Manager, Corprate management of IT Development companies Expertise:Investment, M&A Director Director Yuki Naito Masakazu Masushima
Slide 105: Team
Team Director Director Toshiaki Horiuchi Kentaro Sato GMO Internet, Inc. GMO Pepabo, Inc. Group Senior Managing Executive Officer Representative Director and CEO Expertise:Research and Expertise:Web Creative development/technical support for Creator Support cutting-edge technologies such as AI and b
Slide 106: Team
Team Satoshi Makita Director GMO Internet, Inc. Kosuke Kotani General Manager, Infrastructure & Operations GMO Coin, Inc. Division, Systems Management Headquarters Director Expertise:Blockchain, Mining operations Expertise:Crypto asset (cryptocurrency) exchange IEO Support Director Advisor Takeo Hay
Slide 107: ESG Activities
ESG Activities 107 107
Slide 108: ESG | Sustainability management for SDGs
ESG｜Sustainability management for SDGs Our business help Social and environmental issues to be solved. ・ ・ ・ 108
Slide 109: ESG | Disclosure processes
ESG｜Disclosure processes ◼ Released our Activities for SDGs ◼ Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion committee Preferentially ◼ Updated CG report atempting to expand ◼ Introduced of a group executive officer ESG disclosure NOW system 2022 ◼ Expanding ESG disclosu
Slide 110: Internet for Everyone
Internet for Everyone 110 110