Slide 1: Fiscal Year 2024 Results Presentation
Fiscal Year 2024 Results Presentation STOCK CODE: 9449 February 12, 2025 1
Slide 2: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 2
Slide 3: Overview
Overview Become a group that will continue to over the next century by thoroughly implementing long-term management. Transitioning to a holding company structure to accelerate sustainable growth and further evolve the group structure. In FY24, the impact of independent management across group compan
Slide 4: Consolidated Financial Results for FY24
Consolidated Financial Results for FY24 Strong infrastructure performance absorbed ¥9.5 billion in provisions and exit costs from the Thai securities business, achieving record-high operating profit. YoY ( JPY billions ) FY23 FY24 Change Change Net Sales 258.6 277.4 +18.7 +7.3% Record high Operating
Slide 5: Consolidated Results Trends
Consolidated Results Trends Net Sale Operating Profit Record Record Up 7.3% YoY high Up 9.8% YoY high Changes in rules to record the revenues* 277.4 258.6 46.65 (JPY billions) 9.1 (JPY billions) 42.47 241.6 245.6 43.74 3.40 4.5 41.09 13.3 43.7 4.33 210.5 6.2 47.2 10.09 196.1 9.09 13.75 2.77 33.8 42.
Slide 6: FY24 Results by Segment Evaluation
FY24 Results by Segment Evaluation FY24 FY23 Record high Net sales JPY184.9B (Up 7.8％ YoY) • Strong performance in both payment and Internet non-payment businesses. " " " " Infrastructure JPY 35.9B (Up 25.2％ YoY) • Core businesses and fast-growing unlisted group companies drove growth. Online Ad & N
Slide 7: FY24 Year-on-Year Analysis
FY24 Year-on-Year Analysis Net sales Operating Profit Up 18.7B YoY Up 4.1B YoY ( JPY billions ) ( JPY billions ) +7.2 277.4 +3.8 46.6 +13.4 +4.5 +1.0 +0.5 +4.6 +0.1 -3.5 -0.5 42.4 +0.9 42.4 258.6 -9.4 FY Infra Crypto FY FY Infra Crypto FY Finance Ad VC Other Finance Ad VC Other 23 structure assets 2
Slide 8: Internet Infrastructure | Trends in Operating Profit for the Full Year
Internet Infrastructure | Trends in Operating Profit for the Full Year ( JPY billions ) 35.97 28.72 Infrastructure business 21.98 growth is accelerating. 19.23 16.28 14.06 19 20 21 22 23 24 8
Slide 9: Profit Trends in internet infrastructure | payments and non-payments
Profit Trends in internet infrastructure| payments and non-payments payments The level of profits of non- payment increased non- * payments Company-wide Cost Allocation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Operating income after deduction of one-time expenses 19
Slide 10: Infrastructure Business: Ranking of Profit Contribution by Company
*1 Infrastructure Business: Ranking of Profit Contribution by Company Not only the founding business but also non-listed group companies that have rapidly grown after joining the group contributed. Contribution Listed/Non- Relationship Rank Name Amount Business Description (JPY billions) Listed with
Slide 11: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 11
Slide 12: Purpose: Become a group that thrives over hundreds of years
Purpose Become a group that thrives over hundreds of years. Establishing a Continuously Evolving Group Structure to Achieve Sustainable Growth 12
Slide 13: Significance of Transitioning to a Holding Company Structure
Significance of Transitioning to a Holding Company Structure Promoting independent management Enhancing group synergies to their full potential Accelerating growth and achieving sustainable expansion 13
Slide 14: Key Roles and Functions of the Holding Company
Key Roles and Functions of the Holding Company ①Enhancing group synergies to their full potential ②Creating new growth drivers ③Enhancing group structural efficiency ④Serving as a hub for sharing group management expertise 14
Slide 15: Group structure | At present
Group structure｜At present Under the structure, each company operates themselves independently, leveraging their unique strengths and expertise. 15
Slide 16: Group structure | Going forward
Group structure｜Going forward Under the holding company structure, value creation will be accelerated through strategic organizational restructuring. 16
Slide 17: Enhancing Efficiency in Group Structure①
Enhancing group synergies to their full potential Enhancing Efficiency in Group Structure① Enhancing Structural Efficiency Businesses operated independently by our company have been transferred to GMO AP, transitioned to a holding company structure. present After January 1, 2025 GMO Internet Group,
Slide 18: New GMO Internet, Inc. | Business Overview and Main Services
* New GMO Internet, Inc. | Business Overview and Main Services As a cornerstone of the group, businesses that have been established for 28 years will be transferred to GMO-I for further growth. Domain and Rental Server (Hosting) Business Internet connection (Provider) Business Internet Advertising a
Slide 19: Enhancing Efficiency in Group Structure②
Enhancing group synergies シナジーの極大化 to their full potential Enhancing Efficiency in Group Structure② Enhancing Structural 構造効率化 Efficiency Two companies dedicated to solving consumer needs will merge and embark on a new beginning from April 2025. The company will be renamed 'GMO Product Platform Inc.
Slide 20: Performance Trends
Performance Trends Achieving Rapid Growth Through a Monetization Platform That Solves Consumer needs. ( JPY billions) 2.1 Revenue up 76％ YoY Profits up 0.9 1.2 324％ YoY 0.76 0.18 0.07 Automated Wi-Fi Work Shift & Payroll FY22 FY23 FY24 Connection App Management App 20
Slide 21: Links to videos of the earnings briefings of each company
(Reference) Links to videos of the earnings briefings of each company Financial results and Management * Management strategy briefing session strategy briefing session 25/2/13（Thu） 25/2/12（Wed） 11:00～12:00 16:45～17:45 * You need to register in advance to watch. Please access the registration page fr
Slide 22: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 22
Slide 23: Our response to social trends
Our response to social trends Diffusion of Cloud Acceleration of DX Spread of AI Megatrend / Computing Robotics Depending on the times Promoting a paperless Strengthening of data Growing threat of Widespread of environment privacy regulations cyber crime Cashless Payment Security Cloud/rental server
Slide 24: Products in Internet infrastructure
Products in Internet infrastructure Expanding customer base and new areas of focus on Provide wide range of “indispensable, essential” value. Focus on Security Business. New Foundations Existing business AI x Robotics （ Focus Area Security Payment ） Support for online shops Access Cloud/rental serve
Slide 25: 'GMO will protect your Internet Security' project
Enhancing group synergies シナジーの極大化 to their full potential 'GMO will protect your Internet Security' project Enhancing Structural 成長ドライバー創出 Efficiency GMO will protect your Internet Security A safer future for Everyone 25
Slide 26: Security business | Number of engaged partners
Security business | Number of engaged partners One of the largest security companies in Japan About 1,100 /About 8,000 people 26
Slide 27: Project Part 1: General Internet Security Service
‘GMO will protect your Internet Security’ project | Part 1 General Internet Security Service Security24 27
Slide 28: Project Part 1: GMO Security 24
‘GMO will protect your Internet Security’ project | Part 1 ‘GMO Security 24’ Providing a free 24-hour password leak diagnosis, web risk diagnosis and security consultation AI. Security24 * https://www.gmo.jp/security/ 28
Slide 29: Project Part 1: GMO Security 24 Free Assessment
‘GMO will protect your Internet Security’ project | Part 1 ‘GMO Security 24’ Free assessment of web intrusion risks Provide detailed security diagnostics and countermeasures as a paid service to generate solid recurring revenue Website risk assessment results 29
Slide 30: Security | Three areas
Security | Three areas Preventing Eavesdropping, Tampering, and Identity Spoofing. (Cryptographic Security) Countermeasures against cyberattacks. (Cyber security) Monitoring and removal support for impersonation threats. (Brand security) 30
Slide 31: Project Part 2: Cybersecurity Conference & Awards
‘GMO will protect your Internet Security’ project | Part 2 One of the largest security events in Japan (25/3/6) Cybersecurity Conference & Awards Ceremony 31
Slide 32: Main speakers
Cybersecurity Conference & Awards Ceremony Main speakers Yutaka Matsuo Masaki Hirai Shigeru Ishiba Jiro Hiroe Takayuki Furuta The University of Tokyo, graduate school Government of Japan Government of Japan Japan ground self-defense force Chiba institute of technology of engineering professor Minist
Slide 33: Enhancing Structural Efficiency
Enhancing group synergies シナジーの極大化 to their full potential Enhancing Structural 成長ドライバー創出 Efficiency 33
Slide 34: Full-year results trends
Full-year results trends 3 （ billions ） 2 1 Revenue stabilizing with the * expansion of account numbers. Sales 0 Achieved quarterly profitability. Operating profit -1 -2 * Gross business profit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 22 23 24 34
Slide 35: Net Bank | Business KPI Status
Net Bank | Business KPI Status Customer base expanding steadily * Number of business accounts BaaS by GMO Aozora （Thousand Companies） （Number of Contracts） 170 774 Up 50.9％ YoY 113 Up 33.0％ YoY 582 420 66 233 32 103 16 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
Slide 36: Net Bank | Mid-to-Long-Term Strategy
Net Bank | Mid-to-Long-Term Strategy No changes to the three goals 1 No.1 Bank for Small & Startup Businesses 2 No.1 Embedded Finance 3 No.1 Tech-First Bank 36
Slide 37: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 37
Slide 38: Group of businesses with a customer base of 17.38 million
Group of businesses with a customer base of 17.38million 38
Slide 39: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment Changes in rules to (JPY billions) record the revenues* 69.4 68.8 69.6 71.3 67.6 64.6 65.5 64.4 66.0 1.5 3.5 61.2 62.5 62.5 1.4 2.3 1.7 1.2 0.4 0.9 59.2 4.3 12.8 0.9 2.0 57.5 12.6 9.2 6.8 56.4 56.0 11.6 10.9 10.8 53.6 52.8 53.2 5.7 1.2 0.7 12.7 12.2 10.5 3.6 11.
Slide 40: Group Overview | Profit by Segment
Group Overview | Profit by Segment 19.84 (JPY billions) 14.43 0.44 0.95 12.47 12.38 0.08 11.8110.82 11.12 10.99 0.22 3.52 10.53 Profit down 0.25 2.55 9.57 10.14 0.15 4.02 9.62 9.46 1.83 1.24 0.00 0.38 3.30 0.36 0.74 0.56 8.97 12.6% 3.76 8.28 8.13 8.01 3.65 7.06 0.01 3.83 3.60 0.62 1.48 3.85 2.97 5.9
Slide 41: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 41
Slide 42: Internet Infrastructure | Full-year results trends
Internet Infrastructure | Full-year results trends Net Sales: Up 7.8% YoY Record Operating Profit: Up 25.2% YoY Record Changes in rules to high (JPY billions) high 184.9 record the revenues*1 171.5 4.9 (JPY billions) 3.7 35.97 150.0 138.7 3.3 131.2 75.2 2.8 65.1 28.72 6.2 114.0 52.3 5.5 44.5 37.4 21
Slide 43: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 46.3 47.8 45.6 Changes in rules to 44.3 45.0 1.2 1.2 record the revenues*1 1.1 42.1 42.5 42.4 0.9 40.5 1.0 0.9 0.8 1.1 38.0 36.6 0.7 35.8 20.0 34.6 34.3 0.7 34.7 0.8 17.8 19.3 33.5 33.5 33.9 0.7 0.5 17.5 18.0 Revenue up 0.5 32.8 0.8 1
Slide 44: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 9.59 9.44 9.51 9.21 Profit down 0.9% 7.79 6.99 6.28 6.00 6.12 5.53 5.58 5.36 4.67 4.74 4.93 4.75 YoY 3.87 4.01 4.02 3.76 3.72 3.61 3.58 Although large-scale projects contributed in 3.09 the same period last year, profits remained at the same
Slide 45: Online Advertising & Media | Full-year results trends
Online Advertising & Media | Full-year results trends Net Sales Operating profit Up Down 1.7% YoY 48.2% YoY 2.77 (JPY billions) (JPY billions) Changes in rules to record the revenues* 52.0 2.18 46.8 46.8 4.0 1.87 3.2 3.3 13.6 11.0 10.3 34.0 34.6 34.0 5.1 5.0 4.9 1.18 10.3 12.0 13.2 32.4 33.1 34.3 ■
Slide 46: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales (JPY billions) Changes in rules to record the revenues* 13.6 13.5 0.9 12.7 1.2 12.0 12.3 12.4 0.8 12.0 11.5 11.3 11.8 0.9 11.3 0.9 Revenue up 0.8 0.9 0.7 0.8 3.0 0.8 10.7 0.7 3.7 0.6 3.5 0.8% 2.9 2.8 2.7 2.7 2.6 3.3 2.7 2.4 8.8 8.7 8.9 8.7 8.9 8.8 2.2 8.5 8.4 8
Slide 47: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 Operating Profit up 0.84 0.73 0.74 JPY 131%YoY 0.64 0.66 0.62 0.54 0.56 0.48 0.42 0.35 0.36 0.24 0.25 0.25 0.09 0.14 0.17 Growth in high-margin our 0.06 0.04 products and in-house Media. -0.02 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 48: Internet Finance | Full-year results trends
Internet Finance | Full-year results trends Net Sales Operating profit Down 7.5% YoY Down 68.5% YoY (JPY billions) 47.2 (JPY billions) 43.7 * 42.5 Provision for Thai Securities Business 11.71 13.75 33.8 30.8 10.61 28.5 8.51 9.29 4.33 19 20 21 22 23 24 19 20 21 22 23 24 * Thailand‘s Internet Securiti
Slide 49: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter 12.7 12.6 Changes in rules to record the revenues* 12.2 (JPY billions) 11.6 11.3 11.3 10.7 10.9 10.8 10.3 10.5 10.0 9.1 9.0 9.2 Revenue down 20.6% YoY 8.2 7.9 7.4 7.3 6.7 6.9 6.3 6.5 6.0 Net Operating loss JPY 1.8B Sales 3.81 3.85 3.65 3.76 3.83 3
Slide 50: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) Revenue down FX 22.6％ YoY CFD 6.3％ YoY 1,635 2,117 1,869 1,984 525 Although lower year-on-year due to the prior year’s strong activity, performance remains at a high level. 1,068 7,640 7,287 6,855 5,640 4,449 Securities and others 3,154 CFD
Slide 51: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume 697 785 610 391 441 Measures to boost transaction activity successfully drove 172 customer base expansion. 7,640 7,287 6,855 5,640 ■ Net sales of OTC-FX/binary options (JPY millions) 4,449 3,154 ■ FX Trading volume (JPY trillions)* Q1 Q2 Q3 Q4 Q1 Q2
Slide 52: Cryptoassets business | Full-year results trends
Cryptoassets business | Full-year results trends Net Sales Operating profit Up 100% YoY Up 4.6B YoY (JPY billions) (JPY billions) 9.09 20.6 3.40 9.1 6.7 6.2 0.95 6.0 0.76 4.5 -0.34 -1.27 19 20 21 22 23 24 19 20 21 22 23 24 52
Slide 53: Cryptoassets business | Historical Performance by Quarter
Cryptoassets business | Historical Performance by Quarter (JPY billions) COVID-19 Impact period* 6.8 Revenue up 145％ YoY 5.7 4.3 3.6 Increase in profit 3.5 1.7B YoY 2.7 2.3 2.1 2.0 2.0 1.6 4.02 1.7 1.5 1.4 1.4 1.5 1.2 1.2 1.2 1.0 2.34 0.9 0.9 0.8 0.7 * 1.83 1.48 1.24 0.71 0.95 0.67 0.42 0.08 0.42 0.
Slide 54: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 54
Slide 55: 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 55
Slide 56: Shareholder Returns (Dividend per share)
Overview | Shareholder Returns ( Dividend per share ) ( JPY ) 52.7 47.6 12.6 44.1 Based on our policy, 41.8 30.8 10.8 28.0 14.2 10.0 dividend payout 24.2 7.7 ratio is a minimum of 33% 10.6 10.2 12.2 5.0 6.9 7.2 7.4 7.5 ■ Q4 ■ Q3 6.0 6.2 19.6 ■ Q2 17.1 17.2 12.2 ■ Q1 6.0 6.6 19 20 21 22 23 24 56
Slide 57: Shareholder Returns (acquisition of treasury stock)
Overview | Shareholder Returns (acquisition of treasury stock) Total cost of share acquisition Up to JPY 10.0B Total number of Up to 4.6M shares (to be retired) shares to be acquired 4.4% of shares issued (as of December 2024) Acquisition period February 13, 2025, through to February 10, 2026 57
Slide 58: Shareholder Return Performance
Shareholder Returns｜Shareholder Return Performance 145.3% 107.8% Revised shareholder benefits, focusing on 83.2% profit returns through dividends and share 57.3% 59.0% 14.41 buybacks. 49.9% 12.11 Total payout ratio is expected to reach 8.55 10.03 4.25 8.37 10.00 108％ 9.36 6.59 3.68 5.16 1.50 5.78 5.
Slide 59: Agenda
1. Overview 2. Further Evolution of Group Management 3. Key Initiatives in Growth Strategy i) "Internet Security by GMO" Project ii) GMO Aozora Net Bank 4. Segment Performance & Shareholder Returns i) Group Overview ii) Performance by Segment iii) Shareholder Returns 5. Summarization 59
Slide 60: Summarization
Summarization Become a group that will continue to over the next century by thoroughly implementing long-term management. In FY24, the group's performance was driven by the strong performance of core businesses, along with contributions from non-listed companies, accelerating infrastructure growth.
Slide 61: Internet for Everyone
Internet for Everyone GMO
Slide 62: Disclaimer and next earnings announcement
We are planning on making an earnings announcement for FY2025 First Quarter after 3:31 pm on May 15, 2025. This document includes projections based on expectations, premises and plans as of February 13, 2024. These projections may differ from actual results due to factors including changes in the gl
Slide 63: Appendix
Appendix 63
Slide 64: Group Overview
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 64
Slide 65: Group Overview
Group Overview Company Name GMO Internet Group, Inc. Founder, Chairman Masatoshi Kumagai and Group CEO Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo (The 2nd Group Head Office) SHIBUYA FUKURAS1-2-3 Dogenzaka, Shibuya-ku, Tokyo Established May 24, 1991 Stock Listing
Slide 66: Operating companies (1/2)
Operating companies(1/2) As of the end of December 2024 GMO-PG GMO-FG GMO-AP （3769） （4051） (4784) GMO-TE GMO-GSHD (6026) （3788） Internet GMO-IG Internet Advertising GMO-ME Infrastructure （9449） and Media (6180) GMO-PB （3633） GMO-RE (3695) その他 Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS GM
Slide 67: Operating companies (2/2)
Operating companies(2/2) As of the end of December 2024 GMO CLICK Securities GMO Coin GMO-FH GMO-FH Internet Finance (7177) Cryptoasset （7177） GMO Gaika Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD 67
Slide 68: Internet services operations
Internet services operations As of the end of December 2024 GMO-IG(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Others Others GMO-PG (3769) GMO-IG Payment GMO-FG (4051) Cloud and Rental GMO-GSHD (3788) Others Server (Hosting) Business GMO-PB (3633) Other Provider GMO-IG GMO-PB (3633) E-commer
Slide 69: Our Strengths for Sustainable Growth
Our Strengths for Sustainable Growth 69
Slide 70: Our Strengths for Sustainable Growth
Our Strengths for Sustainable Growth 1. Independent management 2. Operations and development of our own technology 3. Solid recurring revenue 70
Slide 71: Independent management
1. Independent management Each group company pursues the No. 1 strategy under the “GMO-ism” and creates growth products. As a result, our group with diversified risk management strategy. 71
Slide 72: Operations and development of our own technology
2. Operations and development of our own technology Engineers & Creators ratio Limited to hiring ※2 Advanced and AI Talent 7,546 7,565 7,525 7,438 7,431 7,317 7,361 7,393 7,396 7,133 7,213 7,042 6,767 6,782 6,554 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 Goal: Workforce of over 5,758 60% 49.8%
Slide 73: Solid recurring revenue
3. Solid recurring revenue That means our core business policies, Indispensable products that will not disappear With recurring revenue business model 73
Slide 74: Consolidated Net Sales
Consolidated Net Sales (JPY billions) Changes in rules to 277.4 record the revenues* Sustainable growth 9.1 * "Accounting standards related to revenue recognition" ( accounting standard No. 29 ) 00 02 04 06 08 10 12 14 16 18 20 22 24 74
Slide 75: Solid recurring revenues
3. Solid recurring revenues Both unit price and number of contracts increased, leading to expansion. Unit price Solid recurring revenue 1.6times × Number of contracts 2.8times Solid recurring revenue Other revenue 1.7times 16 17 18 19 20 21 22 23 24 * The combined value of stock and transaction reve
Slide 76: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts *1 *2 (millions) COVID-19 Impact period +0.86 +1.59 15.06 15.18 Solid recurring +0.72 -0.02 revenues base 14.56 14.61 +0.17 13.26 13.74 14.61M 12.70 12.17 12.29 12.10 12.02 12.15 12.27 11.77 11.55 11.47 11.44 11.52 11.50 11.26 11.43 10.93 10.74 10.36 customers Inc
Slide 77: Listed Group Companies | Market Cap and Equity Share
Listed Group Companies | Market Cap and Equity Share Market Cap*1 Equity Share Stock Code Company Name Exchange % Ownership*2 ( JPY billions ) ( JPY billions ) 9449 GMO Internet Group Prime 305.9 3769 GMO Payment Gateway Prime 666.0 40.7% 271.1 4784 GMO Internet Prime 269.4 98.0% 264.0 7177 GMO Fina
Slide 78: Shareholder Returns (treasury stock acquired/retired)
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 14.22M shares (progress: 37.1%) Retired 8.63M shares (progress: 22.5%) 78
Slide 79: Shareholder Returns (total shareholder returns)
Shareholder Returns (total shareholder returns) (JPY billions) 9.36 Total acquisition amount of our own stock : 30.4B 5.16 4.25 3.68 JPY 3.10 2.23 ■ Acquisition amount of our own stock (not yet retired) 1.50 1.18 ■ Acquisition amount of our own stock (retired) Scheduled to be retired 0.00 Total：JPY
Slide 80: Financial condition and strategy
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 80
Slide 81: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 65,000 60,000 55,000 Human resources 14,805 13,193 14,044 50,000 Advertising and promotion 12,506 13,433 45,000 Depreciation and leases 3,251 3,190 3,351 40,000 3,564 3,544 Outsourcing costs 4,086 1,949 3,880 4,067 5,374 5,814 35,000 4,217 5,451 Communica
Slide 82: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/23 12/24 (End of 12/24) (End of 12/24) Current Assets 1,614,257 1,945,899 331,642 1,357,691 174,674 Cash & Deposits 393,452 469,168 75,715 117,708 118,833 Fixed Assets 143,379 205,215 61,835 37,12
Slide 83: Consolidated Statement of income
Consolidated Statement of income supplementary (JPY millions) FY2023 FY2024 Changes information Net Sales 258,643 277,407 7.3% Gross Profit on Sales 153,130 166,142 8.5% Operating Income 42,471 46,653 9.8% （OP Margin） 16.4% 16.8% +0.4pt Non Operating Profit and Loss 3,475 -87 - Ordinary Profit 45,94
Slide 84: Consolidated Cash Flow
Consolidated Cash Flow （JPY billions） Significant Factors(compare to FY2023) GMO-FH FY23 FY24 （Jan-December） ・Net profit before adjustment for tax etc. +44.8B (+42.9B in 2023) Operating Cash Flow +14.9 +84.7 ・Corporate tax etc. paid: -17.6B (-15.2B) +24.0 ・Acquisition of tangible fixed assets: -26.1
Slide 85: 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 our Risk management policy ①Multiple ways Agile procurement investment which up to 2/3 of Eq
Slide 86: 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） FY22 FY23 FY24 Domestic Total 3,911 4,735 5,345 Debt finance Corporate Bonds Corporate 717 1,312 1,419 Individual
Slide 87: 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） FY22 FY23 FY24 （%） FY22 FY23 FY24 Corporate bond 3.9 3.5 2.9 Corporate bond 100.0 100.0 100.0 Debt finance Debt finance 3.8 3.6 4
Slide 88: 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） FY22 FY23 FY24 cash and cash equivalents 3,222 3,889 4,665 Balance of interest debt within 793 1,106 1,904 3Y
Slide 89: Others | Credit rating
Others｜Credit rating Strategy • 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) 89
Slide 90: Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 90
Slide 91: Consolidated results transition
Consolidated results transition Sales increased for 16 consecutive fiscal years 277.4 46.65 Sales 241.6 245.6 258.6 Profit 43.74 42.47 3.40 41.09 (JPY billion) 20.6 13.3 43.7 (JPY billion) 4.33 210.5 6.2 47.2 10.09 13.75 2.77 196.1 6.7 9.09 33.8 42.5 185.1 34.0 6.0 30.8 34.6 28.5 27.89 154.2 1.87 52
Slide 92: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 10.1% 10.0% 9.5% 9.0% Net sales 6.4% 6.78 6.3% 6.62 YoY 6.30 Global 5.81 Sales Ratio 3.00 3.42 2.4% Up Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated subsidiary. We deducted MacroKiosk values from net sales Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 93: Internet Infrastructure
Internet Infrastructure 93 93
Slide 94: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 7.14 YoY 24.7%Up 5.73 5.06 4.57 4.10 3.04 3.23 YoY 29.3%Down 2.08 1.88 1.46 1.18 0.91 Payment business -0.40 -0.37 -0.33 -0.39 -0.59 -0.87 Except payment business Cost allocation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 95: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) Focusing on our in-house product, resulting in a stable trend in the Changes in rules to number of lines 11,043 record the revenues* 2,258 2,269 2,230 2,209 2,152 9,944 9,998 9,825 8,841 8,935 1,801 Q1 Q2 Q3 Q
Slide 96: Internet Infrastructure | Provider - KPIs (number of lines)
Internet Infrastructure | Provider - KPIs（number of lines) 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 Q4 2019 2020 2021 2022 2023 2024 ※Mobile and others indicated combined after FY23Q3 96
Slide 97: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Strong demands Changes in rules to In overseas record the revenues* and domestic 2,690 2,534 9,593 2,188 2,130 8,661 1,955 1,948 7,069 7,197 7,119 6,586 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 98: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 98
Slide 99: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) Favorable demands in domestic and 3,680 overseas 2,320 Renewal rate: 73.3%* 1,461 1,049 792 669 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024 From FY24.Q3, the renewal rat
Slide 100: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 5,440 1,097 1,124 1,125 5,158 1,052 4,693 936 867 4,107 3,810 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 101: Group synergies case: ASP shopping cart × payment
Group synergies case ASP shopping cart × payment 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 Solutio
Slide 102: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart) (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) Despite of the ongoing Recurring revenue (ASP shopping cart) downward trends, the number of high-priced plans are Changes in rules to expandi
Slide 103: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 145 139 138 131 YoY 122 83 5.3% UP 140 131 133 125 118 80 Freenance SUZURI, Canvath minne Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ecommerce Platform 19 20 21 22 23 24 103
Slide 104: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) 2.57M Number of e-contract accounts User companies ( extract ) No.1 40.0%UP 1.83 YoY 1.07 20/4/15 Declaration of Abolition of Seals 20/5/13 0.46 Campaign launched Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 105: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts ( millions ) 4.67M Number of contracts 39.6%UP 3.34 YoY 1.70 No.1 0.79 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 22 23 24 105
Slide 106: Internet Infrastructure | ARR (Annual Recurring Revenue)
Internet Infrastructure | ARR (Annual Recurring Revenue)* 1.59 (JPY billions) 1.10 0.75 44.7%UP YoY * Calculated by multiplying the total monthly fees at the end of each Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 quarter by twelve (excluding one-time revenues). 22 23 24 106
Slide 107: Countermeasures against cyberattacks business | Achievements
Countermeasures against cyberattacks business | Achievements Cyber Security Assessment More than 10,500 cases More than 150 World's Largest No.1 No.1 white hat No.1 largest hackers contest in contest enrolled Japan two years in a row ※1:Based on our survey ※2:HTB Business CTF 2024: No.1 in Japan ※:3
Slide 108: Countermeasures against cyberattacks business | Service usage
Countermeasures against cyberattacks business | Service usage 108
Slide 109: Countermeasures against cyberattacks business | Mid- to long-term growth
Countermeasures against cyberattacks 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 109
Slide 110: 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 consolidated Payment subsidiaries Companies 160,350 stores*1 40+ Credit card (As of end-Dec 2024) companies EC Conv
Slide 111: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥19.8 trillion in the past 12 months Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 GMO:FY2024.Q4 GMO:FY2024.Q4 GMO:FY2024.Q4 Past 12-month Past 12-month PG:FY2025.Q1 PG:FY2025.Q1 PG:FY2025.Q1 - 2
Slide 112: 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 83.7 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 60.2 % ＊3 No. 1 ASP Cart 47K paid stores Domestic market share at No.
Slide 113: Internet Finance
Internet Finance 113 113
Slide 114: Thai securities business | The outstanding credit balance
Thai securities business | The outstanding credit balance ・Provision for doubtful accounts in Q4'24 was approximately 2.8 billion yen cumulative total of approximately 9.5 billion yen for FY2024. ・As of the end of Sept 2024, the balance of margin trading loans stood at approximately JPY 17.4 billion
Slide 115: Thai securities business | Receivables under Amortization Agreements
Thai securities business | The outstanding Receivables under Amortization Agreements Initially planned to mitigate risk through receivable sales, but after considering the offered purchase price and collateral coverage, we decided to focus on recovering approximately JPY 11.0 billion in receivables
Slide 116: Internet Finance | Domestic FX volume and share transition
Internet Finance | Domestic FX volume and share transition Trading activation initiatives have been successful, leading to a rising trend in market share of trading volume. USD／JPY （JPY trillion） Volatility Domestic trading volume Domestic share (Sum of 3 companies ※1 (Sum of 3 companies) SHARE25.6%
Slide 117: Internet Finance | CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition ■Transaction （JPY trillion） ■Revenue （JPY million） Transaction volume YoY 8.6 %UP Profit YoY 5.9% DOWN Both trading value and revenue have remained at high levels. * Prepared based on GMO-Financial Holdings presentation materials 117
Slide 118: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） （JPY billion） YoY 1.6 %DOWN Stable balance Hit by Recent Volatility Losses * Prepared based on GMO-Financial Holdings presentation materials 118
Slide 119: Internet Finance | Stock brokerage commission and rate transition
Internet Finance｜Stock brokerage commission and the rate transition ■Stock Brokerage ■Commission Rate 株式委託手数料 株式委託手数料率 Commission Rate commission（百万円） (bp) （bp） (bp) (JPY million) Stock Brokerage Commission YoY 10.3%DOWN Both trading value and brokerage commissions declined year over year. Q4’24 Sto
Slide 120: 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 Cover the client transactions that exceed acceptable limits ● ● ● Cover orde
Slide 121: Cryptoasset
Cryptoasset 121 121
Slide 122: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 122
Slide 123: Cryptoasset Exchange Business | Trading volume
Cryptoasset Exchange Business｜Trading volume (JPY Billion) YoY 183.9%UP BTC price increased, Trading volume up YoY ※Regarding market share, the market's trading volume is based on the data published by the Japan Cryptocurrency Exchange Association, while the trading volume of GMO Coin is an approxim
Slide 124: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition ■Client Asset ■Crypto-asset under Custody accounts Accounts （JPY billion） （1K accounts） YoY 94 K UP Deposit Asset YoY 144.2 %UP * Prepared based on GMO-Financial Holdings presentation materials 124
Slide 125: 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 126: GMO Aozora Net Bank
GMO Aozora Net Bank 126
Slide 127: Net Bank | Bank × IT
Net Bank Bank×IT Born in July 2018 Banking management know-how Technology 127
Slide 128: Net Bank | Vision
GMO AOZORA NET BANK Net Bank | Vision TNTESESE EDLH, — ce SL F9/OY—-NYIEBILT All for our customers. Strive to be the No.1 Tech Bank. GMO
Slide 129: Net Bank | Key points
Net Bank Point1 Focus on corporate clients The core business : Point2 Exchange, Debit cards, and business loans Point3 Bank System＋Bank API＋In-house development Point4 BaaS byGMOAozora Point5 Approximately 40% of employees are engineers 129
Slide 130: Topics
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 130
Slide 131: Topics: Becoming the No.1 Corporate Group Pioneering the Future with AI
—* Becoming the No.1 Corporate Grou Pioneering the Future with Al . 131
Slide 132: Our initiatives towards realization (1/2)
Our initiatives towards realization （1/2） Driving research and development in AI, particularly in financial data analysis, and achieved significant results since hiring our first data scientist approximately 10 years ago. GMO NIKKO has built and analyzed big data analytics(DMP)infrastructure FY2013
Slide 133: Our initiatives towards realization (2/2)
Our initiatives towards realization （2/2） We promptly began utilizing ChatGPT across the entire group, expecting its potential impact after the emergence of it in November 2022. ①Time and Cost savings ②Improvement in the quality of existing services ③Offering new services to the AI Industry Based on
Slide 134: GMO-AIR Co.Ltd | Business Model
GMO-AIR Co.Ltd | Business Model Aiming of a lean, High-performance Organization that fully utilizes AI 134
Slide 135: ESG activities
Group Overview Financial condition and strategy Consolidated results ESG activities 135
Slide 136: ESG activities | Materiality
ESG activities | 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 137: ESG activities | Materiality Matrix
ESG activities | Materiality Matrix The key issues were identified through an assessment based on opportunities and risks from the perspective of both "importance to stakeholders" and “Significance to GMO Internet Group." 137
Slide 138: ESG activities | Sustainability management for SDGs
ESG activities | Sustainability management for SDGs Our business helps Social and environmental issues to be solved. ・ ・ ・ 138
Slide 139: ESG activities | Disclosure Processes/External Evaluation
ESG activities | Disclosure Processes/External Evaluation [Disclosure Progress] Jan. 2024 FTSE ESG Ratings FTSE ESG Ratings 2.8 2.9 Assessment by ESG rating agencies / Inclusion in ESG indexes Mar. 2023 Dec. 2023 *2 Expanding Human capital disclosure Plans to publish integrated report （September 202
Slide 140: Internet for Everyone
Internet for Everyone 140 140