Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q3 2023 Earnings Presentation
118 slides from Gmo Internet's earnings presentation, Nov 14, 2023
Slide 1: Fiscal Year 2023 Third Quarter Results Presentation
Fiscal Year 2023 Third Quarter Results Presentation November 14, 2023 1
Slide 2: Agenda
1. Overview 2. Group Overview 3. Segment Report i ) Internet Infrastructure ii ) Online Advertising & Media iii ) Internet Finance iv ) Cryptoassets 4. Topics 2
Slide 3: Overview | Executive Summary: Q3 FY2023 (Jul-Sep)
Overview | Executive Summary: Q3 FY2023 ( Jul-Sep ) Q3’22 Q3’23 YoY ( JPY billions ) Change ( Jul-Sep ) ( Jul-Sep ) Change Net Sales 57.5 62.5 +4.9 +8.5% Operating Profit 7.0 9.4 +2.3 +33.9% Ordinary Profit 8.9 9.7 +0.7 +8.4% Net Profit -1.6 3.2 +4.9 - 3
Slide 4: Overview | Executive Summary: Q3 FY2023 (Jul-Sep)
Overview | Executive Summary: Q3 FY2023 ( Jul-Sep ) Evaluation Q3 Q2 42.4B ( Up 11.6％ YoY ) Net sales JPY Internet • Collection of No. 1 services Infrastructure • Balanced growth in all businesses OP JPY 6.1B ( Up 29.0％ YoY ) Net • Sales declined due to reactionary fall in Online Ad & sales JPY 8.5B
Slide 5: Overview | Executive Summary: Q3 FY2023 (Jul-Sep)
Overview | Executive Summary: Q3 FY2023 ( Jul-Sep ) Net sales Operating Profit Up 4.9B YoY Up 2.3B YoY ( JPY billions ) ( JPY billions ) +0.9 +0.2 +0.0 9.4 +0.5 +0.1 +0.0 +0.0 62.5 -0.0 +4.4 -0.2 -0.2 +1.3 57.5 7.0 Q3‘ Infra Crypto Q3‘ Q3‘ Infra Crypto Q3‘ Finance Ad VC Other Finance Ad VC Other 22
Slide 6: Overview | Executive Summary: Q3 FY2023
Overview | Executive Summary: Q3 FY2023 Incubation business make a significant contribution in FY2022 Q3’22 Q3’23 YoY ( JPY billions ) Change (Jan-Sep) (Jan-Sep) Change Record Net Sales 183.1 192.5 +9.4 +5.1% high Operating Profit 38.0 30.0 -7.9 -20.8% Ordinary Profit 42.4 32.2 -10.1 -24.0% Net Prof
Slide 7: Overview | Shareholder Returns (Policy)
Overview | Shareholder Returns ( Policy ) Total Shareholder Dividend Payout Ratio Share Buyback Returns Ratio 50% Over 33% 17% Net profit at end of fiscal Quarterly dividend year to form basis of buyback in following year 7
Slide 8: Overview | Shareholder Returns (Dividend per share)
Overview | Shareholder Returns ( Dividend per share ) ( JPY ) 52.7 47.6 Q3’23 12.6 29.5 30.8 10.8 28.0 Dividend per share 11.8 24.2 5.0 10.6 12.2 10.2 10.2 7.2 7.4 7.5 5.5 ■ Q4 ■ Q3 6.2 6.0 6.2 19.6 17.1 ■ Q2 12.2 ■ Q1 6.0 6.0 6.6 18 19 20 21 22 23 8
Slide 9: Overview | Shareholder Returns (Share buyback)
Overview | Shareholder Returns ( Share buyback ) * Acquisitions for the current financial year have been completed Actual results Cost of share acquisition JPY 1.50B Number of shares to be acquired 563K shares *Repurchase of own shares in accordance with Board resolution (23/2/13) 9
Slide 10: Strengths
Strengths 10
Slide 11: Strengths (1) Operations and development of our own technology
Strengths (1) Operations and development of our own technology 11
Slide 12: Strengths (1) | Operations and development of our own technology
Strengths (1) | Operations and development of our own technology 7,393 7,396 7,317 7,361 7,213 7,133 7,042 6,767 6,782 6,554 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 5,767 5,758 5,670 5,691 Goal: Workforce of over 5,454 46.7％ 49.9％ 49.8％ 60% 45.5％ 46.3％ 45.7％ engineers & creators Partners % E
Slide 13: Strengths (2) Solid recurring revenues
Strengths (2) Solid recurring revenues 13
Slide 14: Strengths (2) | Solid recurring revenue
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 14
Slide 15: Strengths (2) | Consolidated net sales
Strengths (2) | Consolidated net sales ( JPY billions ) 245.6* Sustainable growth 7.9 * Impacts from the application of accounting standards for revenue recognition ( accounting standard No. 29 ) 00 02 04 06 08 10 12 14 16 18 20 22 15
Slide 16: Strengths (2) | Analysis of consolidated net sales
Strengths (2) | Analysis of consolidated net sales 53.0% 241.6 245.6 36.1% 210.5 196.1 ( JPY billions ) 185.1 123.9 115.5 Solid recurring 154.2 100.5 revenues that 135.0 support sustainable 103.0 126.3 104.5 109.3 growth 82.9 79.2 79.4 69.9 130.1 110.0 117.7 93.1 Solid recurring revenue* 71.3 80.6 O
Slide 17: Strengths (2) | Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 10K*1 ( JPY ) 9,850*1 × Solid recurring ( JPY revenue 130.1*3 Approx. 13M contracts*2 billions ) Number of × contracts 13.22M*2 Approx. JPY 14 15 16 17 18 19 20 21 22 130B *3 17
Slide 18: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts +0.58 14.92 +1.04 14.17 ( millions ) +1.31 +0.32 13.22 13.52 12.88 12.83 12.93 12.63 12.11 11.55 11.51 11.58 11.7111.72 11.26 11.43 10.92 10.73 10.35 9.94 9.60 9.09 9.27 Solid revenue base 14.92M customers Increased approx. 0.81M/year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
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 | Business Segments (Composition)
Group Overview | Business Segments ( Composition ) Solid revenue base + financial customer base 17.50M customers up 2.12M YoY ( Infrastructure 1.19M + Finance 0.13M ) *Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions. *Number of customers is an aggregat
Slide 21: Group Overview | Listed Group Companies: Equity Share
Group Overview | Listed Group Companies: Equity Share Market Cap*1 Equity Share Stock Code Company Name Exchange % Ownership*2 ( JPY billions ) ( JPY billions ) 9449 GMO Internet Group Prime 254.0 3769 GMO Payment Gateway Prime 585.5 40.7% 238.4 4051 GMO Financial Gate Growth 87.2 23.4%*3 20.4 7177
Slide 22: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment Changes in rules to ( JPY billions ) record the revenues* 69.4 64.6 65.5 64.4 61.2 62.5 62.5 1.2 0.9 59.2 4.3 12.8 0.9 56.4 57.5 2.0 6.8 56.0 53.6 52.8 53.2 5.7 1.2 0.7 12.7 12.2 10.5 3.6 0.8 50.8 11.3 11.3 50.9 2.0 Revenue up 48.0 49.1 49.1 1.4 1.6 2.7 8.2 10.0
Slide 23: Group Overview | Profit by Segment
Group Overview | Profit by Segment 19.84 ( JPY billions ) 10.16 12.47 0.07 11.12 10.99 10.53 0.10 Profit up 10.14 0.15 4.02 9.62 9.46 1.24 8.97 3.76 33.9% 8.28 8.13 2.34 8.01 3.65 7.06 3.83 3.60 6.51 0.42 1.48 3.85 2.97 5.95 0.66 3.10 2.68 5.26 0.01 3.81 6.09 0.92 5.73 5.53 4.46 5.00 5.34 5.37 2.12
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 81.7 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 58.3 % ＊3 No. 1 Ecommerce Platform 52K paid stores No.1 Domestic mark
Slide 26: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment ( JPY billions ) Changes in rules to record the revenues* 42.1 42.5 42.4 40.5 1.0 0.9 0.8 1.1 38.0 36.6 0.7 35.8 34.6 34.3 0.7 34.7 0.8 33.5 33.5 33.9 0.7 0.5 0.5 Revenue up 32.8 0.8 15.3 16.3 15.8 31.3 2.0 1.0 1.3 14.5 29.6 1.7 13.1 28.4 28.5 11.6%
Slide 27: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit ( JPY billions ) 6.99 6.28 6.12 6.00 5.53 5.58 5.36 4.67 4.74 4.93 4.75 Profit up 29.0% 4.01 4.02 3.76 3.87 3.61 3.58 3.72 3.15 3.09 2.93 YoY 2.76 2.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 23 27
Slide 28: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No.1 Number of contracts: No.1 28
Slide 29: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) 1.66M Number of e-contract accounts 1.46 No.1 User companies ( extract ) Increased 1.8-fold 0.91 YoY 20/4/15 0.33 Declaration of Abolition of Seals 20/5/13 Campaign launched 0.04 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 30: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts ( millions ) 2.83M 2.47 Increased Number of contracts 1.9-fold 1.48 No.1 YoY 0.67 0.30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 23 30
Slide 31: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by 65 local governments was determined * 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 Kanagawa Shizuoka Gunma Yamaguchi Oita Shibuya-ku
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 ( JPY billions ) Changes in rules to 13.6 13.5 record the revenues* 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 Revenue down 11.0 0.9 0.8 0.9 0.7 0.8 3.0 0.7 0.8 10.7 0.7 0.7 3.7 0.6 3.4% 3.1 2.8 2.7 3.5 2.8 2.9 2.6 2.8 2
Slide 34: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit ( JPY billions ) 0.92 0.64 0.73 0.66 Profit down 34.2% 0.54 0.48 0.42 0.35 0.31 0.32 0.24 0.14 0.17 0.25 0.25 YoY 0.09 0.06 0.05 0.06 0.04 -0.02 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 23 34
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 12.7 ( JPY billions ) 12.2 11.3 11.3 10.7 Revenue up 10.3 10.5 10.0 5.4% 9.1 9.0 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.7 6.9 6.3 6.5 Profit up 6.0 34.3% Net Sales 3.81 3.85 3.65 3.76 3.83 3.60 3.30 3.39 2.91 3.10 2.97 2.60 2.58 2.62 2.68 YoY 2.26 2.31
Slide 37: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product ( JPY millions ) FX : Weaker yen a headwind 1,648 474 586 2,257 CFD : Steady 1,462 1,459 6,470 5,549 5,403 5,052 3,881 Securities and others 3,335 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
Slide 38: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume 880 Volatility declining but Profitability 576 375 285 on the road to 178 204 recovery 6,470 ■ Net sales of OTC-FX/binary options ( JPY millions ) 5,549 5,403 5,052 ■ FX Trading volume ( JPY trillions )* 3,881 3,335 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
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: Cryptoassets
Cryptoassets Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 40
Slide 41: Cryptoassets | Net Sales
Cryptoassets | Net Sales ( JPY billions ) 6.8 1.3 5.7 1.5 4.3 Revenue up 2.6 2.6 2.7 3.6 0.7 23.6% 2.3 2.1 0.6 5.4 1.6 1.8 2.0 2.0 YoY 1.2 1.2 1.6 4.1 1.2 1.2 0.6 1.5 1.4 0.2 0.2 0.8 1.2 1.2 1.0 0.2 0.4 0.8 0.9 0.9 ■ payment 0.6 1.4 0.7 0.2 2.1 2.0 1.7 0.3 0.7 * 0.2 ■ mining 1.3 1.4 0.2 1.4 0.0 1.6
Slide 42: Cryptoassets | Operating Profit
Cryptoassets | Operating Profit ( JPY billions ) 4.02 2.34 Operating loss 0.53B 1.48 1.24 0.67 * 0.71 JPY 0.42 0.42 0.38 0.25 0.21 0.15 0.10 0.08 -0.22 -0.26 -0.33 -0.39 -0.48 -0.53 -0.73 -0.82 -0.98 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 * The Company started recording
Slide 43: Agenda
1. Overview 2. Group Overview 3. Segment Report i ) Internet Infrastructure ii ) Online Advertising & Media iii ) Internet Finance iv ) Cryptoassets 4. Topics 43
Slide 44: Security | Slogan
Security | Slogan Safe and Secure Internet for Everyone 44
Slide 45: Security | Three areas
Security | Three areas 1. Encryption security 2. Cyber security 3. Brand security 45
Slide 46: Japan's strongest white hat hacker organization
Japan's strongest white hat hacker organization 46
Slide 47: Cybersecurity business | Service usage
Cybersecurity business | Service usage 47
Slide 48: Cybersecurity business | Achievements
Cybersecurity business | Achievements Cyber Security Assessment More than 6,000 cases World's Largest More than largest contest No.1 contest in Japan No.1 120 white hat hackers No.1 enrolled Received Encourage ment Award from the Received a Received a Minister of Internal letter of thanks from Affai
Slide 49: Cybersecurity business | SaaS Products
Cybersecurity business | SaaS Products Started of API collaboration with 14 million infrastructure customers. 49
Slide 50: Efforts Towards Becoming No.1 Corporate Group in Utilizing AI
Efforts Towards Becoming No.1 Corporate Group in Utilizing AI 50
Slide 51: No.1 Corporate Group in Utilizing AI | Themes
No.1 Corporate Group in Utilizing AI | 3 Themes 1. Time and cost savings 2. Improvement in the quality of existing services 3. Offering new services to the AI industry 51
Slide 52: No.1 Corporate Group in Utilizing AI | Improvement in the quality of existing services
No.1 Corporate Group in Utilizing AI | Improvement in the quality of existing services Internet Infrastructure Online Ad & Media New New 52
Slide 53: No.1 Corporate Group in Utilizing AI | Offering new services to the AI industry
No.1 Corporate Group in Utilizing AI | Offering new services to the AI industry 7 Nov 15 Nov Generative AI prompt portal GPU server Release Release 53
Slide 54: Professor Yutaka Matsuo, University of Tokyo, appointed adviser
No.1 Corporate Group in Utilizing AI | Professor Yutaka Matsuo, University of Tokyo, appointed adviser Invited an authority in the field of AI Yutaka Matsuo Professor, Graduate School of Engineering, the University of Tokyo President, Japan Deep Learning Association (JDLA) (since 2017) Member, Counc
Slide 55: Efforts related to Sustainability
Efforts related to Sustainability 55
Slide 56: Sustainability | Materiality
Sustainability | Materiality Solving social issues through business Dedication to the No.1 Service. Challenge We are dedicated to providing the dominant No.1 service in the Internet industry by operating and developing our own technology. Responsibility to protect our customers’ smiles. Safety We en
Slide 57: Internet for Everyone
Internet for Everyone GMO
Slide 58: Next earnings announcement and disclaimer
We are planning on making an earnings announcement for FY2023 4th Quarter after 3 pm on February 14, 2024 This document includes projections based on expectations, premises and plans as of November 14, 2023. These projections may differ from actual results due to factors including changes in the glo
Slide 59: Appendix
Appendix 59
Slide 60: Appendix Contents
Group Overview Financial condition and strategy Consolidated results ESG activities 60
Slide 61: 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 62: Group Structure by each segment (1/2)
Group Structure by each segment(1/2) GMO-AP (4784) GMO-IG (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 GA
Slide 63: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO CLICK GMO-IG(9449) Securities GMO-FH GMO-FH GMO-FH Internet Finance (7177) Cryptoassets (7177) (7177) GMO Coin GMO Gaika* （Gaika ex byGMO) Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD *Gika ex byGMO has changed its name GMO Gaika in July
Slide 64: 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) 64
Slide 65: Appendix Contents
Group Overview Financial condition and strategy Consolidated results ESG activities 65
Slide 66: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 12,013 Human resources 11,270 12,227 12,766 Advertising and promotion 45,000 11,768 11,989 4,218 3,692 3,294 Depreciation and leases 40,000 10,602 4,327 4,047 3,671 3,749 4,162 Outsourcing costs 35,000 3,771 4,724 4,231 3,208 4,137 4,
Slide 67: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/2023 9/2023 (End of 9/23) (End of 9/2023) Current Assets 1,408,015 1,560,537 152,522 1,079,212 167,877 Cash & Deposits 341,970 359,819 17,848 76,735 122,539 Fixed Assets 134,725 146,021 11,295 33,
Slide 68: Consolidated Statement of income
Consolidated Statement of income Q3'22 Q3'23 supplementary (JPY millions) Changes (1-9/2022) (1-9/2023) information Net Sales 183,134 192,545 5.1% Gross Profit on Sales 113,261 111,842 -1.3% Operating Income 38,010 30,085 -20.8% （OP Margin） 20.8% 15.6% -5.1pt Non Operating Profit and Loss 4,428 2,15
Slide 69: Financial Strategy
Financial Strategy ・Avoid excessive risk-taking, considering balance of Shareholders equity ・Aiming to Equity balance, 100 Billion yen. Asset management Procurement ①Business All investments are subjected to ①Multiple our Risk management policy Agile procurement investment which up to 2/3 of Equity
Slide 70: Financial Strategy | Procurement① Multi ways of financing
Financial Strategy｜Procurement① Multi ways of financing • Continuous procurement helps growth capital 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 Bonds Corporate 166 659 717 Individual bond
Slide 71: Financial Strategy | Procurement②③ 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 72: Financial Strategy | Asset management② 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 73: 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) 73
Slide 74: Appendix Contents
Group Overview Financial condition and strategy Consolidated results ESG activities 74
Slide 75: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 9.8% 9.0％ 8.9％ 6.15 Net sales 6.5％ 5.9％ 5.20 5.7% 5.04 Global Sales Ratio YoY 18.2%UP 3.01 2.88 2.84 Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 subsidiary.
Slide 76: Internet Infrastructure
Internet Infrastructure 76 76
Slide 77: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 4.33 3.35 2.84 2.58 2.34 2.33 1.63 1.83 1.82 1.73 1.56 1.55 -0.26 -0.37 -0.33 -0.40 -0.39 -0.59 Payment business Other Cost distribution Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 23 77
Slide 78: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) Changes in rules to 10,892 record the revenues* 2,229 2,250 2,262 2,128 10,002 10,009 10,020 8,603 1,721 6,902 1,305 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 79: Internet Infrastructure | Provider - KPIs (number of lines)
Internet Infrastructure | Provider - KPIs（number of lines) Wholesale （ etc） Optical line Mobile+Others Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 2023 ※Mobile and others got consolidated after the 3rd Quater. 79
Slide 80: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to 8,177 record the revenues* 2,470 7,045 6,867 6,895 2,379 6,714 6,211 2,132 1,994 1,945 1,867 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 81: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 81
Slide 82: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) 1,981 66.4%* 1,246 986 Renewal rate: 722 676 637 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 2023 * Renewal rate for domains registered between September 2016 and May 2021 (2nd
Slide 83: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,124 5,158 1,097 1,052 4,693 936 4,107 852 867 3,810 3,614 3,606 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 84: 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 84
Slide 85: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) 6,000 Recurring revenue (ASP shopping cart) Changes in rules to record the revenues* 5,000 67.0 64.2 64.5 63.7 4,197 4,144 3,956 58.9 4,000
Slide 86: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 123 119 119 111 YoY 3.2% 81 73 Down 114 117 114 106 78 70 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 18 19 20 21 22 23 86
Slide 87: 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 88: 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 89: Cybersecurity business | Synergy
Cybersecurity business | Synergy Use our customer base Main Marketing strategy service/product Local governments Certain large companies Push Large & medium- sized companies Pull small and medium-sized companies 89
Slide 90: Cybersecurity business | Mid- to long-term growth
Cybersecurity business | Mid- to long-term growth Expand the business scale by using the customer base and introducing SaaS products SaaS products Using the the customer base Existing business New 90
Slide 91: Internet Infrastructure | Payment processing - Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies through ‘contracts,’ ‘payment information,’ and ‘money flow’. Consumer Merchant GMO-PG Payment Company ※1 consolidated subsidiaries 146,539stores 40+ Credit card (As of end-Sep 2023) companies EC Conven
Slide 92: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥14.9 trillion Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 GMO:FY2023.Q3 GMO:FY2023.Q3 GMO:FY2023.Q3 Past 12-month Past 12-month PG:FY2023.Q4 PG:FY2023.Q4 PG:FY2023.Q4 - 1.67 bn 6.20 bn ¥3.9 tr
Slide 93: Online Advertising & Media
Online Advertising & Media 93 93
Slide 94: GMO Research | Audience Engagement Platform
GMO Research｜Audience Engagement Platform Developing a platform across Asia to connect survey clients and monitors who respond to surveys Audience Engagement Platform A platform that brings the voice of the consumer to the company Payment of Payment of Consideration Points Client Company Consumer Re
Slide 95: GMO Research | Business Model
GMO Research｜Business Model Outsourcing Services D.I.Y. Services Service Name Full Sample Self Sample System-Related Sales Operations Service Supply Supply Process 1. Research Design Clients 2. Survey Screen Clients Creation Clients 3. Project Clients Management GMO （*） Research GMO 4. Panel Managem
Slide 96: GMO Research | 2023 Business Strategy and Market Environment
GMO Research｜2023 Business Strategy and Market Environment for Sample Panel Providers ⚫ Continued outsourcing of online panel operations and management for existing research firms, with progress made in responding to the increased size of sample panels and diversification of needs. ⚫ Has been increa
Slide 97: GMO Research | Panel Networks
GMO Research｜Panel Networks ● Builds one of the largest panel network in the industry with over 53.42 million members in 16 Asian countries and regions. ● Capable of handling large-scale, multi-country projects, making us highly competitive and capable of making proposals. ● By further enhancing the
Slide 98: Internet Finance
Internet Finance 98 98
Slide 99: Thai securities business | Regarding of Bad debts
Thai securities business｜Regarding of Bad debts ・As of the end of September 2023, the subsidiary in Thailand has recorded a bad debt balance of 8.45 billion yen on its balance sheet due to a significant decrease in the fair value of substitute securities received from customers. The allowance for do
Slide 100: Thai securities business | Outstanding credit balance and risk management
Thai securities business | The outstanding credit balance and the status of risk management （Million THB） New transaction have been Exposure to risks suspended since Nov.2023 ● Concentration in specific collateral securities ● Concentration of lending to specific investors Handling with those risks
Slide 101: Internet Finance | Domestic FX volume and share transition
Internet Finance |Domestic FX volume and share transition Trading volume decreased but profitability improved. Domestic trading volume Domestic share USD／JPY (Sum of 3 companies ※1 (Sum of 3 companies） （JPY Trilion） Volatility SHARE20.3%: At the end Sep 2023 Feb 2018 JUNE2023 The information you pro
Slide 102: Internet Finance | CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition Transaction(right) （JPY Trillion） Revenue (left) （JPY Million） Transaction volume YoY 26.8 %Down Profit YoY 27.3% Down Trading volume has decreased such as U.S. stock index and crude oil and natural gas * Prepared based on GMO-Financial Holdi
Slide 103: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 1.8 %Down * Prepared based on GMO-Financial Holdings presentation materials 103
Slide 104: Equity service | Stock brokerage commission and commission rate transition
Equity service｜Stock brokerage commission and commission rate transition Stock Brokerage 株式委託手数料 株式委託手数料率 Commission Rate commission （百万円） （bp） (bp) (Million Yen) Stock Brokerage Commission YoY 10.5%Up We do not intend to follow the trend of fee abolition Q3’23 Stock Transaction Value：YoY13.2％UP Q3'
Slide 105: 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 106: Cryptoassets
Cryptoassets 106 106
Slide 107: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 107
Slide 108: Cryptoasset Exchange Business | Trading volume share transition
Cryptoasset Exchange Business｜Trading volume share transition （Trillion Yen） Cryptocurrency trading GMO Coin share 暗号資産取引高（業界） volume(the whole market) GMOコインのシェア（基準変更前） (before the standard changed) GMO Coin share GMOコインのシェア（基準変更後） (after the standard changed) Trading volume share on per with the s
Slide 109: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition Client Asset Cryptoasset （thousand accounts） Accounts （JPY Billion） under accounts Custody YoY 48 K Up Deposit Asset YoY 27.4%Up Trading volume has decreased such as U.S. stock index and crude oil and natural gas * Prepared based
Slide 110: Cryptoassets Exchange | Business model
Cryptoassets Exchange | Business model OTC Trading Exchange Trading Hedging counter part positions Offering the order matching by cover order platform Liquidity Provider Customer Broker Trading Cover order Trading BUY Exchange SELL Main income：Spreads Main income：Transaction fee （buy and sell spread
Slide 111: GMO Aozora Net Bank
GMO Aozora Net Bank 111
Slide 112: Net Bank | Number of business accounts
Net Bank | Number of business accounts （Thousands） 101 89 1 about .7-fold 77 66 57 UP YoY 47 39 32 27 23 19 16 13 10 6 3 4 0 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 20 21 22 23 112
Slide 113: Net Bank | BaaS by GMO Aozora KPI
Net Bank |BaaS byGMO Aozora KPI Total number of contracted Embedded Financial service （per contract） 551 504 454 420 367 progressing well 322 281 233 196 158 127 103 79 59 29 39 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 20 21 22 23 113
Slide 114: Appendix Contents
Group Overview Financial condition and strategy Consolidated results ESG activities 114
Slide 115: ESG | Sustainability management for SDGs
ESG｜Sustainability management for SDGs Our business help Social and environmental issues to be solved. ・ ・ ・ 115
Slide 116: ESG | Disclosure processes
ESG｜Disclosure processes ◼ Released our Activities for SDGs ■Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion committee ■GMO Health Management ◼ Updated CG report Declaration The company's declaration to increase the smiles of its partners is reiterated as the AAA Health M
Slide 117: ESG | Materiality Matrix
ESG｜Materiality Matrix The key issues were identified through an assessment based on opportunities and risks from the perspective of both "importance to stakeholders" and "importance to the GMO Internet Group." 117
Slide 118: Internet for Everyone
Internet for Everyone 118 118