Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — FY2022 Earnings Presentation
134 slides from Gmo Internet's earnings presentation, Feb 13, 2023
Slide 1: Fiscal Year 2022 Results Presentation
Fiscal Year 2022 Results Presentation STOCK CODE: 9449 February 13, 2023 1
Slide 2: Changes in rules to record 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 revenues: Comparison with prior 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: FY2022
Overview | Executive Summary: FY2022 Both revenue and profit were up for the 14th consecutive year Compared to the same period Old New Old last year (old v.s. old) YoY (JPY billions) FY21 FY22 FY22 Change Change 245.6 276.4 Record Net Sales 241.6 +34.8 +14.4% high Record Operating Profit 41.1 43.7 4
Slide 6: Overview | Executive Summary: FY2022
Overview | Executive Summary: FY2022 Compared to the same period Evaluation Record last year (old v.s. old) FY22 FY21 high JPY 158.2B Services each hold top share in their respective Net sales (Up 14.0% YoY) Internet markets in Japan → Infrastructure OP JPY 21.8B (Up 13.4% YoY) Recurring revenue con
Slide 7: Overview | Financial Results for FY2022
Compared to the same period last Overview | Financial Results for FY2022 year (old v.s. old) Net Sales Operating Profit Record Record Up 14.4% YoY high Up 5.6% YoY high 276.4 43.47 (JPY billions) (JPY billions) 41.16 13.3 241.6 6.2 10.09 20.6 42.5 9.09 210.5 196.1 185.1 33.8 27.89 30.8 60.8 25.27 9.
Slide 8: Overview | Executive Summary: FY2022
Overview | Executive Summary: FY2022 Net sales OP Up 34.8B YoY Up 2.3B YoY (JPY billions) (JPY billions) Old Old 276.4 New +8.7 +11.8 +0.5 43.4 * Old +2.5 +1.3 +0.2 43.7 +8.6 +0.9 +9.3 41.1 +19.4 -14.4 New -2.4 Old 245.6 241.6 -30.7 -9.4 Difference between Difference FY21 Infrastructure Finance Ad C
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 47.6 12.6 Based on our policy, 29.5 30.8 10.8 28.0 dividend payout 23.0 24.2 10.6 ratio is a minimum of 33% 11.8 12.2 5.0 6.0 7.2 7.4 5.5 6.0 ■ Q4 19.6 ■ Q3 6.2 6.0 6.2 6.0 17.1 ■ Q2 ■ Q1 5.0 6.0 6.0 6.6 17 18 19 20 21 22 10
Slide 11: Overview | Shareholder Returns (treasury stock acquired/retired)
Overview | Shareholder Returns (treasury stock acquired/retired) c.f. press release dated July 30, 2015, entitled “Notice of Revision to Shareholder Returns Policy with Long Term Share Buyback Plan” Long-term aim 38.35M shares Acquired 12.12M shares (progress: 31.6%) Retired 7.10M shares (progress:
Slide 12: Overview | Shareholder Returns (total shareholder returns)
Overview | Shareholder Returns (total shareholder returns) (JPY billions) ■ Acquisition amount of our own stock (not yet retired) ■ Acquisition amount of our own stock (retired) 9.36 Total acquisition 15.1 7.51 amount of our own 6.17 stock : 25.3B To be retired 3.10 JPY 2.23 1.90 1.18 3.16 0.00 16 1
Slide 13: Overview | Shareholder Returns (acquisition of treasury stock)
Overview | Shareholder Returns (acquisition of treasury stock) Total cost of share acquisition Up to JPY 1.51B Total number of Up to 0.7M shares (to be retired) shares to be acquired 0.66% of shares issued (as of December 2022) Acquisition period February 14, 2023, through to February 9, 2024 13
Slide 14: Strengths
Strengths 14
Slide 15: Strengths (1): Operations and development of our own technology
Strengths (1) Operations and development of our own technology 15
Slide 16: Operations and development of our own technology
Strengths (1) | Operations and development of our own technology 7,213 7,317 7,133 7,042 6,767 6,782 6,554 Goal: Workforce of over 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 5,767 5,758 5,670 5,691 50% engineers 5,454 5,275 5,278 5,316 5,080 49.6% 48.1% New Goal: 60% 45.8% 46.4% 45.6% 44.2% Par
Slide 17: Strengths (2): Solid recurring revenues
Strengths (2) Solid recurring revenues 17
Slide 18: Indispensable products and recurring revenue business model
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 18
Slide 19: Consolidated net sales: Sustainable growth
Strengths (2) | Consolidated net sales Old (JPY billions) 276.4 Sustainable growth 7.9 00 02 04 06 08 10 12 14 16 18 20 22 19
Slide 20: Analysis of consolidated net sales
Strengths (2) | Analysis of consolidated net sales Old 48.6% 276.4 36.1% 241.6 Solid recurring (JPY billions) 210.5 196.1 142.1 185.1 154.2 100.5 123.9 revenues that 126.3 135.0 104.5 103.0 support sustainable growth 109.3 82.9 79.2 79.4 69.9 134.3 110.0 117.7 93.1 Solid recurring revenue* 71.3 80.6
Slide 21: Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Old Unit price Approx. JPY 10K*1 (JPY) 10,100*1 × Solid recurring (JPY billions) revenue Approx. 13M contracts*2 134.3*3 Number of × contracts 13.22M*2 Approx. JPY 14 15 16 17 18 19 20 21 22 130B *3 21
Slide 22: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts +0.58 +1.04 13.22 (millions) +0.32 12.8812.8312.93 +1.31 12.63 12.11 11.7111.72 11.4311.5511.5111.58 11.26 +0.96 10.92 10.73 10.35 9.94 9.60 9.27 8.97 9.09 Solid revenue base 8.71 8.76 8.75 13.22M customers Increased approx. 0.85M/year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 23: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 23
Slide 24: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base + financial customer base 15.70M customers Up 0.73M 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 number) i
Slide 25: 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 Group Prime 288.7 3769 GMO Payment Gateway Prime 921.7 40.7% 375.3 4051 GMO Financial Gate Growth 73.3 23.5%*3 17.2 7177 GMO Fi
Slide 26: 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 69.7 12.8 65.2 2.0 64.6 64.1 0.7 61.2 1.2 59.2 2.0 11.3 Revenue up 4.3 10.0 6.8 56.4 10.3 53.6 52.8 53.2 5.7 10.8 3.6 7.5% 50.9 0.8 50.8 11.3 49.1 2.7 48.0 49.1 8.2 47.5 46.8 1.6 6.9 7.3 15
Slide 27: 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 down 46.7% 0.07 10.5311.12 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 6.89 1.91 0.44 6.51 0.42 1.48 2.97 YoY 5.95 0.42 3.85 5.26 1.56 3.81 6.09 3.10
Slide 28: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 28
Slide 29: 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 82.3 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 56.9 % ＊3 No. 1 ASP Cart 57K paid stores No. 1 Domestic market share
Slide 30: Internet Infrastructure | Full-year results trends
Internet Infrastructure | Full-year results trends Compared to the same period last year (old v.s. old) Net Sales: Up 14.0% YoY Record Operating Profit: Up 13.4% YoY Record high high (JPY billions) (JPY billions) 158.2 21.80 3.3 138.7 19.23 131.2 2.8 6.2 53.6 114.0 16.28 5.5 44.5 100.8 37.4 14.06 6.
Slide 31: 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) 42.5 1.1 39.8 38.8 0.7 37.0 0.8 35.8 0.5 34.6 34.3 0.7 33.5 33.5 33.9 0.7 32.8 0.5 Revenue up 14.8 0.8 31.3 2.0 1.0 13.3 1.3 13.0 29.6 1.7 12.3 28.4 28.5 18.6% 1.2 12.0 27.1 27.4 1.
Slide 32: 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 5.26 4.67 4.74 4.93 4.58 Profit down 4.8% 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
Slide 33: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No. 1 Number of contracts: No. 1 33
Slide 34: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts (millions) Number of e-contract accounts 1.07 No. 1 Increased 0.91 User companies (extract) 2.3-fold YoY 0.46 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 22 34
Slide 35: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (millions) Dual 1.70 crown 1.48 Increased Number of contracts 2.2-fold 0.79 No. 1 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 22 35
Slide 36: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by 30 local governments was determined*1 Become No. 1 in terms of the number of local governments introducing GMO Sign. Aim at triple crown. Local governments introducing GMO Sign (extract) Tokyo*2 Gunma Yamaguchi Oita Fukuoka City, Fukuoka Prefe
Slide 37: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 139 131 122 Up 6.3% 83 80 77 YoY 131 125 118 76 80 74 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 Q3 Q4 17 18 19 20 21 22 37
Slide 38: Internet Infrastructure | Adjustment costs to maintain our services
Internet Infrastructure | Adjustment costs to maintain our services Introducing adjustment costs, in response to an increase in costs due to rise in the electricity charges, weak yen, semiconductor shortages, etc. ▶Impact on the customer retention rate and the number of new applications is insignifi
Slide 39: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 39
Slide 40: Online Advertising & Media | Full-year results trends
Compared to the same Online Advertising & Media | Full-year results trends period last year (old v.s. old) Net Sales: Up 16.9% YoY Record Operating Profit: Up 77.2% YoY Record high high (JPY billions) (JPY billions) 60.8 2.10 5.1 52.0 46.7 46.8 46.8 4.0 44.0 14.7 3.1 3.2 3.3 3.1 13.6 12.0 11.0 10.3
Slide 41: Online Advertising & Media | Ratio of in-house products
Online Advertising & Media | Ratio of the in-house products 旧 (JPY billions) 57% 44% 26.1 Accelerated in-house 24.4 product shift 23.8 25.9 34.8 28.8 20.7 23.2 Net sales of in-house products and media* Other net sales Ratio of the in-house products (%) 19 20 21 22 * Calculated based on consolidated
Slide 42: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. old) 15.9 15.1 15.1 1.2 14.6 1.1 1.4 13.6 13.5 1.3 0.9 12.7 1.2 12.3 12.4 3.7 Revenue up 12.2 12.0 12.0 0.8 12.0 11.5 11.3 11.8 0.9 3.6 11.5 0.7 11.4 11.3 0.9 3.4 0.9 0.8 0.9 11.0 10.7 10.7 11.0 0.8
Slide 43: 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 0.72 Strategic investment 0.64 0.53 0.31 0.32 0.42 in Q4 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 -0.04 Strategic investment of JPY 640 M -0.13 Q1
Slide 44: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 44
Slide 45: Internet Finance | Full-year results trends
Internet Finance | Full-year results trends Compared to the same period last year (old v.s. new) Net Sales: Up 25.5% YoY Record Operating Profit: Down 20.7% YoY high (JPY billions) (JPY billions) 42.5 33.8 11.71 30.7 30.8 10.75 10.61 28.5 26.3 9.29 8.51 7.98 17 18 19 20 21 22 17 18 19 20 21 22 45
Slide 46: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter Compared to the same period last (JPY billions) 11.3 11.3 year (old v.s. new) Revenue up 10.7 10.3 10.0 0.2% 9.1 9.0 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.8 6.9 6.9 6.9 YoY 6.7 6.5 6.3 6.0 5.5 Net Operating loss 10M Sales 3.81 3.85 3.65 3.30 3.39 2.91
Slide 47: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) 1,635 FX improved QoQ. CFD remained 1,869 365 857 525 strong. 1,068 7,640 6,855 4,661 4,449 4,353 3,154 Securities and others 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
Slide 48: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume 698 393 443 FX profitability 213 206 improved YoY 173 7,640 6,855 ■ Net sales of OTC-FX/binary options (JPY millions) 4,353 4,661 4,449 ■ FX Trading volume (JPY trillions)* 3,154 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 49: Internet Finance | FX Trading Volume
Internet Finance | FX Trading Volume Set the maximum trading volume per 698 27.0% 22.7% 21.2% 20.9% 24.3% 20.7% customer. Market 391 441 share in terms of the trading volume 208 203 172 dropped. 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 Q
Slide 50: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 50
Slide 51: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 51
Slide 52: Cryptoassets business | Full-year results trends
Cryptoassets business | Full-year results trends Compared to the same period last year (old v.s. new) Net Sales: Down 69.9% YoY Operating Loss: 0.34B (JPY billions) (JPY billions) 20.6 0.8 9.09 6.4 8.2 7 6.2 6 13.3 4.2 1.3 0.3 ■ payment 0.95 0.76 2.1 1.7 ■ mining 0.20 ■ exchange 5.3 0.8 4 3.9 4.1 -0
Slide 53: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales Compared to the same period last (JPY billions) 6.8 year (old v.s. new) 1.3 5.7 1.5 4.3 Revenue down 2.6 2.6 2.7 3.6 0.8 52.5% YoY 5.4 1.6 2.3 1.8 2.1 0.6 2.0 2.1 1.2 1.2 4.1 1.6 0.16 1.2 1.2 0.6 1.5 1.4 0.2 0.2 0.8 1.2 0.4 1.0 0.2 0.9 0.8 ■ payment 0.2 2.1 2.0 0.3
Slide 54: 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 Profit down 1.48 1.24 * 42.2% YoY 0.67 0.71 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 -0.82 -0.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 55: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 55
Slide 56: Social issues
Social issues Cyberattacks are the greatest corporate risks (according to ) Risks in 2023 chosen by Chief Risk Officers (CROs) Cybersecurity risks 72% Credit risks 59% Environmental risks, such as climate change 36% Source: “12th annual EY/IIF global bank risk management survey” 56
Slide 57: Security | Corporate slogan
Security | Corporate slogan Safe and Secure Internet for Everyone 57
Slide 58: Security | Three areas
Security | Three areas 1. Cryptosecurity 2. Cybersecurity 3. Brand security 58
Slide 59: Service usage | (1) Cryptosecurity business (SSL)
Service usage | (1) Cryptosecurity business (SSL) 59
Slide 60: Service usage | (2) Cybersecurity business
Service usage | (2) Cybersecurity business 60
Slide 61: Service usage | (3) Brand security business
Service usage | (3) Brand security business 61
Slide 62: (2) Cybersecurity business | Working with public institutions
(2) Cybersecurity business | Working with public institutions Self-defense forces National Police Agency Carried out training to improve the Received a letter of thanks for skills of Cyber Defense Command*1 technical assistance*2 *1: "Penetration test drills for JSDF Cyber Defense Command carried ou
Slide 63: (2) Cybersecurity business | New service
(2) Cybersecurity business | New service 63
Slide 64: (2) Cybersecurity business | New service
(2) Cybersecurity business | New service Site seal displayed on website after diagnosis 64
Slide 65: The only listed business group offering security solutions
Security The only listed business group that can offer solutions to security challenges 65
Slide 66: Conclusion
GMO Conclusion 66
Slide 67: FY2023 Outlook
FY2023 Outlook Sustainable growth through solid recurring revenues. We offer solutions to Internet Internet security issues and our position will be unmatched by any other Infrastructure company. Online Ad & Continue to enhance in-house products and media. Further expansion of Media the business’ pe
Slide 68: Internet for Everyone
Internet for Everyone 68 68
Slide 69: Next earnings date and disclaimer
We are planning on making an earnings announcement for FY2023 First Quarter after 3 pm on May 12, 2023. This document includes projections based on expectations, premises and plans as of February 13, 2023. These projections may differ from actual results due to factors including changes in the globa
Slide 70: Appendix
Appendix 70
Slide 71: Appendix contents
Group Overview Financial condition and strategy Consolidated results ESG activities 71
Slide 72: Group Overview
Group Overview Company Name GMO Internet Group, Inc. Decentralized group management Founder, Chairman Masatoshi Kumagai in order to adapt rapid changes of and Group CEO Internet industry. Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo (The 2nd Group Head Office) SHI
Slide 73: 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 74: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO CLICK Securities GMO-I(9449) GMO-FH GMO-FH GMO-FH Internet Finance (7177) Gaika ex byGMO Cryptoassets (7177) (7177) GMO Coin Other Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD 74
Slide 75: Internet services operations
Internet services operations GMO-IG(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Other Other GMO-PG (3769) GMO-IG Payment GMO-FG (4051) GMO-GSHD (3788) Hosting & cloud Other GMO-PB (3633) Other Provider GMO-IG GMO-PB (3633) E-commerce solutions Other Listed subsidiaries (stock code) 75
Slide 76: Appendix contents
Group Overview Financial condition and strategy Consolidated results ESG activities 76
Slide 77: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 12,013 Human resources 10,189 Advertising and promotion 45,000 11,768 11,989 4,218 4,532 Depreciation and leases 40,000 10,602 4,327 3,678 3,749 Outsourcing costs 35,000 3,771 4,329 4,724 3,208 4,012 4,137 Communication costs 30,000 3
Slide 78: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO INTERNET End of End of (JPY millions) Change Financial HD GROUP 12/2021 12/2022 (End of 12/2022) (End of 12/2022) Current Assets 1,292,984 1,408,015 115,031 963,834 120,235 Cash & Deposits 240,136 341,970 101,834 74,396 94,207 Fixed Assets 125,952 134,725 8,772 27,
Slide 79: Consolidated Profit and Loss
Consolidated Profit and Loss supplementary (JPY millions) FY2021 FY2022 Change information Net Sales 241,612 245,696 1.7% Gross Profit on Sales 128,883 149,886 16.3% Operating Profit 41,164 43,746 6.3% （OP Margin） 17.0% 17.8% +0.8pt Non Operating Profit and Loss 2,228 2,278 2.2% Ordinary Profit 43,3
Slide 80: Consolidated Cash Flow
Consolidated Cash Flow GMO-FH （JPY billions） FY21 FY22 Significant Factors （Jan- December） Net profit before adjustment for tax esc. :57.6B(43.7B in 2021) Operating Cash Flow -23.7 +25.6 Depreciation expanses :11.3B(8.8B in 2021) +3.4 Acquisition of tangible and intangible fixed assets:- 10.4B(-36.8
Slide 81: Financial Strategy
Financial Strategy ・Avoid excessive risk-taking, considering balance of Shareholders equity ・Aiming to increase the absolute amount of Shareholders Equity, 100 Billion yen. Asset management Procurement ①Business Risk investment in principle ①Multiple admitted within 2/3 of each Agile procurement inv
Slide 82: Financial Strategy | Procurement: Multiple ways of financing
Financial Strategy｜Procurement① Multipul way of financing • Continuous procurement helps growth capital to be ensured. The way to procure Totall Interest-bearing debt Direct Indirect （JPY 100M） FY20 FY21 FY22 Domestic Total 2,083 2,946 3,911 Debt finance Corporate bond Corporate 166 659 717 bond Oth
Slide 83: Financial Strategy | Lengthening term, fixed interest rate
Financial Strategy｜Procurement②③ Lengthening term・Fixed interest rate • Aiming to build a strong financial base Debt balance average term Fixed interest rate ratio （Year） FY20 FY21 FY22 （％） FY20 FY21 FY22 Corporate bond 2.4 5.7 3.9 Corporate bond 100.0 100.0 100.0 Debt finance Debt finance 3.0 3.8 3
Slide 84: Financial Strategy | Asset management: Cash on hand
Financial Strategy｜Asset management②Cash on hand • Keeping enough repayment cash(the amount for debt financing repayment next year and for corporate bond’s repayment next 2 years) （100M Yen） FY20 FY21 FY22 cash and cash equivalents 2,186 2,340 3,222 Balance of interest debt within 187 2,057 793 3Yea
Slide 85: Others | Credit rating
Others｜Credit rating Thinking • Plan to maintain current rating and aiming to be upgraded. • Having conversation with R&I before-hand, when decision making on a huge investment to be carried out. Current situation Rating agency Issuer Rating JCR A-(Stable) R&I BBB+(Stable) 85
Slide 86: Appendix contents
Group Overview Financial condition and strategy Consolidated results ESG activities 86
Slide 87: Financial Results | Full-year results trends
Compared to the same period Financial Results｜Full-year results trends last year (old v.s. new) Net Sales Operating Profit Record Up 1.7% YoY Up 6.3% YoY Record high high 43.74 (JPY billions) 245.6 (JPY billions) 41.16 241.6 30.7 10.09 9.09 20.6 13.3 210.5 6.2 196.1 185.1 33.8 42.5 27.89 30.8 25.27
Slide 88: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment Compared to the same period last year (old v.s. new) (JPY billions) 69.4 7.8 62.5 64.6 57.5 56.0 7.1 61.2 59.2 4.3 12.8 7.7 2.0 8.0 56.4 Revenue Down 6.8 53.6 52.8 53.2 5.7 1.2 0.7 3.6 50.9 0.8 50.8 11.3 2.0 11.3 49.1 2.7 49.1 3.2% 47.5 48.0 1.6 8.2 6.9 10.0
Slide 89: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 10.1% 9.0％ Net sales 6.30 6.4% 6.3％ 6.4％ 5.81 Global Sales Ratio 4.2％ YoY 8.4%UP 3.42 2.98 3.00 1.67 Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated subsidiary. We deducted MacroKiosk values from net sales retroactively to Q1 FY20
Slide 90: Internet Infrastructure
Internet Infrastructure 90 90
Slide 91: Internet Infrastructure | Full-year results trends
Compared to the same period Internet Infrastructure | Full-year results trends last year (old v.s. new) Net Sales: Up 8.1% YoY Operating Profit: Up 14.3% YoY Record (JPY billions) high (JPY billions) Record high 150.0 21.98 8.1 138.7 3.3 131.2 19.23 2.8 6.2 114.0 52.3 16.28 5.5 44.5 100.8 37.4 14.06
Slide 92: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY 100M) year (old v.s. new) 405 380 19 366 11 17 347 21 7 358 346 343 7 22 8 335 335 339 5 328 7 5 8 Revenue up 313 20 10 13 145 296 17 131 284 285 126 12 120 271 274 13.1% 109 113 120 16 11 97 102 254 12 15 94 88
Slide 93: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 5.06 Payment business Other Cost distribution 4.10 3.04 2.08 2.08 1.88 1.58 1.36 1.46 1.25 1.18 0.91 -0.33 -0.29 -0.45 -0.49 -0.45 -0.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 17 18 19 20 21 22 93
Slide 94: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 11,043 2,258 2,230 2,152 9,825 9,944 8,841 1,801 7,333 1,381 5,205 923 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 95: 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 Q3 Q4 2017 2018 2019 2020 2021 2022 95
Slide 96: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 7,197 7,119 7,069 2,188 2,130 6,586 6,406 1,926 1,955 1,948 6,114 1,910 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 97: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 97
Slide 98: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) 1,461 1,049 669 792 Renewal rate: 68.6%* 603 539 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 2022 * Renewal rate for domains registered between September 2016 and Nov 2020 (2
Slide 99: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,703 1,106 1,070 4,226 960 3,881 3,604 3,602 857 872 3,511 801 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 100: 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 100
Slide 101: 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) 4,262 75.0 4,173 3,973 70.8 69.1 66.2 63.9 64.6 3,019 2,985 2,448 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 102: 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 103: 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 104: Internet Infrastructure | Payment processing - Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies on contracts, payment data and money flow Consumer Merchant GMO-PG Payment Company ※1 consolidated subsidiaries 147,204 stores 40+ Credit card (As of end-Dec 2022) companies EC Convenience store BtoB・Bt
Slide 105: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs ※２ Group-wide annual TRX value reaches approx. ¥12.2 trillion (100 Mil transactions) 14 140,000 12 120,000 10 100,000 8 80,000 6 60,000 4 40,000 20,000 2 0 0 Recurring billing TRX Volume Pay-as-you-go billing TRX volume Operating stores ※1 Figures exc
Slide 106: Online Advertising & Media
Online Advertising & Media 106 106
Slide 107: Online Advertising & Media | Full-year results trends
Compared to the same period last Online Advertising & Media | Full-year results trends year (old v.s. new) Net Sales: Down 34.6% YoY Operating Profit: Up 84.4% YoY (JPY billions) (JPY billions) Record high 2.18 34.0 52.0 46.7 46.8 46.8 4.0 44.0 26.8 3.1 3.2 3.3 3.1 13.6 12.0 11.0 10.3 1.18 12.6 5.1
Slide 108: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. new) 8.8 8.5 8.7 7.8 13.6 13.5 0.9 12.7 1.2 12.3 12.4 Revenue down 12.2 12.0 12.0 0.8 12.0 7.0 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 6.6 6.3 0.9 0.8 0.9 11.0 10.7 10.7 11.0 0.8 6.7 0.8 0.7 0.7 1
Slide 109: 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 110: 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 Company A Survey Distribution Company A Panel Data Collection Company’s own Survey Tab
Slide 111: 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 112: Internet Finance
Internet Finance 112 112
Slide 113: Provision of allowance for doubtful accounts at consolidated subsidiary
FY2022｜Recorded the Provision of Allowance for doubtful accounts at consolidated subsidiary Background of this matter GMO-Z com Securities (Thailand) -GMO Financial HD’s subsidiary. • Considered Nontransparent transactions have taken place across the stock market of Thailand regarding substitute sec
Slide 114: Internet Finance | Domestic FX Volume and share transition
Internet Finance |Domestic FX Volume and share transition Set up trading limits temporarily, the share declined （JPY Trilion） USDJPYボラティリティ Volatility 400 30% Domestic trading volume(Sum up each companies ※1 国内取引高（グループ各社合計）※1 Domestic share(Sum up each 国内シェア（グループ各社合計）※2 350 company 26.2% 25% 300 20%
Slide 115: Internet Finance | CFD Transaction and Profit transition
Internet Finance | CFD Transaction and Profit transition （JPY 100 Million） （JPY Trillion） transaction(right) 30 Profit (left) 30 25 25 23 25 Transaction volume 21 20 15 20 YoY 16.5 %UP 15 18 15 Profit 51.9 %UP 15 10 10 YoY 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019
Slide 116: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY 100M） 800 71.3 71.3 700 600 55 31.4 %UP 500 400 YoY 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 * Prepared based on Results Presentation of GMO Financial Holdings 116
Slide 117: 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 118: Cryptoassets
Cryptoassets 118 118
Slide 119: Cryptoasset Business
Cryptoasset Business ｍining Mining Business Crypto Exchange Exchange business asset payment Payment business ┗ Issuing Stablecoin 119
Slide 120: Cryptoasset Exchange Business | Transaction volume
Cryptoasset Exchange Business | Transaction volume （JPY Billion） 14,000 12,000 10,000 YoY 77.7 8,000 DOWN 6,000 4,000 ＜Q4’22 New Services ＞ 12th Oct added SOL to OTC and deposit crypto 2nd Nov Added QTUM at Staking 2,000 17th Nov DOT,ATOM added o tStaking 12th Dec New ver. leased on smarthone app 21
Slide 121: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition （thousand accounts） （JPY 100M） 700 1,800 Client Asset(R) Accounts(L) Accounts 1,514 1,600 600 547 72 K UP 537 YoY 1,400 500 1,200 1,048 400 1,000 Deposit Asset 873 42.3 800 YoY 300 600 200 400 %DOWN 100 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 122: 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 123: GMO AozoraNet Bank
GMO AozoraNet Bank 123
Slide 124: Net Bank | Number of business accounts
Net Bank | Number of business accounts （Thousands） 66.9 57 2.0-fold UP YoY 47 39 32 27 23 19 16 13 10 6 4 1 3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 22 124
Slide 125: Net Bank | Total number of contracted Embedded Financial service
Net Bank |Total number of contracted Embedded Financial service 420 Strong trend 367 322 281 233 196 158 127 103 79 59 39 29 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 22 125
Slide 126: GMO Web3
GMO Web3 126
Slide 127: Team
Team Chairman Representative Director and CEO Masatoshi Kumagai Tomohiro Uchida GMO Internet Group, Inc. GMO Internet Group, Inc. Chairman and Group CEO General Manager, Corprate Expertise: Growth and Development management of IT companies Expertise:Investment, M&A Director Director Yuki Naito Masak
Slide 128: Team
Team Director Director Toshiaki Horiuchi Kentaro Sato GMO Internet Group, Inc. GMO Pepabo, Inc. Group Senior Managing Executive Officer Representative Director and CEO Expertise:Research and development/technical Expertise:Web Creative support for cutting-edge technologies such as AI Creator Support
Slide 129: Team
Team Director Satoshi Makita Kosuke Kotani GMO Internet Group, Inc. GMO Coin, Inc. General Manager, Infrastructure & Operations Division, Director Systems Management Headquarters Expertise:Crypto asset (cryptocurrency) Expertise:Blockchain, Mining operations exchange IEO Support Director Director Ta
Slide 130: Team
Team Advisor Advisor（CPA） Kazuyuki Shudo Takao Yoshimura Kyoto University Former President of Deloitte Tohmatsu Venture Professor Support Co. Expertise:Computer Science and Engineering Expertise:Venture support, IPO support Advisor Advisor Sota Watanabe Isao Moriyasu Astar Network Former President a
Slide 131: Appendix contents
Group Overview Financial condition and strategy Consolidated results ESG activities 131
Slide 132: ESG | Sustainability management for SDGs
ESG｜Sustainability management for SDGs Our business help Social and environmental issues to be solved. ・ ・ ・ 132
Slide 133: ESG | Disclosure processes
ESG｜Disclosure processes ◼ Released our Activities for SDGs ■Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion committee ◼ Updated CG report Preferentially atempting to expand ◼ Introduced of a group executive officer 2022 system ESG disclosure ◼ Expanding ESG disclosure ht
Slide 134: Internet for Everyone
Internet for Everyone 134 134