Slide 1: Explanation of financial results and strategies for fiscal year ending December 31, 2024
(4784) Explanation of financial results and strategies for the fiscal year ending December 31, 2024 February 12, 2025 Representative Director, President and Chief Executive Officer Tadashi Ito Copyright © GMO Internet, Inc. All Rights Reserved.
Slide 2: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 2
Slide 3: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 3
Slide 4: About the new structure
About the new structure January 1, 2025 Start of new organization and company name change Tokyo Stock Exchange Prime Market Change (4784) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 4
Slide 5: Restructuring Overview
Restructuring Overview The business of GMO Internet Group, Inc. was transferred to GMO Ad Partners, Inc, Company name changed to GMO Internet; GMO-IG became a holding company. ～December 31, 2024 From 1.1.2025 GMO Internet Group, Inc. GMO Internet Group, Inc. (TSE Prime 9449) (TSE Prime 9449) Group M
Slide 6: About Us
About Us Number of partners 1178 (as of January 2025) (employees) Tokyo, Osaka, Miyazaki, Kitakyushu, location Sendai, Okinawa 2024 Net sales 74 billion yen (estimate) Consolidated Group Companies Company Website URL https://internet.gmo/ representative Tadashi Ito, President and Representative Dire
Slide 7: Representative Profile Tadashi Ito
Representative Profile Representative Director, President and Chief Executive Officer Tadashi Ito 1974 Born in Kobe City, Hyogo Prefecture, Japan Age 50 (28 years with the company) Main Career 1997 Joined InterQ Corporation* at age 23 1997 Joined InterQ Corporation*. Oversees the Company's core Inte
Slide 8: This part is explained in a video
This part is explained in a video. Please click here to view it. As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 8
Slide 9: Strengths of GMO Internet
Strengths of GMO Internet No. 1 strategy (specs, price, own products) Marketing strategy and ability to attract customers Technical and operational capabilities Improving efficiency through the use of AI As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 9
Slide 10: Technological and Operational Strengths
Technological and Operational Strengths In-house product development capabilities with a 53.6%* ratio of engineers and creators Operational strength to support 8.65 million customers CS/Sales Offices Sendai CS/Sales Offices Osaka development base Kitakyushu head office Tokyo CS/Operation Center Miya
Slide 11: Reinforce security services
Reinforce security services Cooperation with GMO Internet Group security services. Reinforce security services in our business to create unique strengths. As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 11
Slide 12: Efficiency through the use of AI
Efficiency through the use of AI Utilized to improve operational efficiency in development work, advertising creative production, etc. Progress is also being made in improving operational efficiency through the use of AI in call centers. Monthly hours of work reduction (*) Business Reduction Time 16
Slide 13: Solid recurring revenue
Solid recurring revenue Indispensable products that will not disappear with recurring revenue business model. Number of contracts 8.65 million * *As of December 2024 As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 13
Slide 14: Recurring sales ratio
Recurring sales ratio Net sales 74 billion yen (estimate) Recurring sales ratio 82.3% 8.65 million Number of contracts Solid recurring revenue due to a recurring ratio of over 80%. Contribution to stable growth As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 1
Slide 15: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 15
Slide 16: Growth Strategies
Growth Strategies 1. Stable and continuous growth of existing businesses 2. Infrastructure and Advertising Media (M&A) Business Synergies 3. new business 4. M&A (New Business) (Synergies) (Existing Businesses) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 16
Slide 17: Stable and continuous growth of existing businesses
Stable and continuous growth of existing businesses No. 1 strategy (specs, price, own products) Marketing strategy and ability to attract customers Technical and operational capabilities Improving efficiency through the use of AI As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to G
Slide 18: Infrastructure and Advertising Media Business Synergies
Infrastructure and Advertising Media Business Synergies Strengthen marketing capabilities Internet Internet advertising Infrastructure Media Business Business Strengthening Strengths: Solid Sales Capability Strengths: Marketing recurring revenue expertise Both businesses are stronger As of January 1
Slide 19: New Business | Generation AI Market Outlook
New Business│Generation AI Market Outlook （Billion USD） Year 2032 1.3 trillion dollars Source: Bloomberg As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 19
Slide 20: New Business | Generation AI Market Outlook
New Business│Generation AI Market Outlook （Billion USD） In the AI Industry What is the greatest growth? infrastructure Infrastructure Devices Software Others Source: Bloomberg intelligence,IDC,eMarketer,Statista As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc.
Slide 21: New Business | GMO GPU Cloud
New Business│GMO GPU Cloud Capital investment of 10 billion yen November 22, 2024 Start of service As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 21
Slide 22: New Business | GMO GPU Cloud (Spec.)
New Business│GMO GPU Cloud (Spec.) NVIDIA H200 Tensor Core GPUs Fastest in Japan First use of NVIDIA Spectrum-X in Japan NVIDIA H200 Tensor Core GPUs Server for installing NVIDIA H200 Tensor Core GPUs Nov. 12-13, 2024 at AI Summit Japan 2024 hosted by NVIDIA Corporation Photo with NVIDIA Corporation
Slide 23: New Business | GMO GPU Cloud (Spec.)
New Business│GMO GPU Cloud (Spec.) Unparalleled performance even when using multiple nodes Inter-node network bandwidth 2-8 times that of other companies (3,200 Gbps) Open Source Job Scheduler DDN's ultra-fast storage ・・・・ ・・・・ NVIDIA AI Enterprise NVIDIA H200 Tensor Core GPU NVIDIA Spectrum-X Uses
Slide 24: New Business | GMO GPU Cloud (Spec.)
New Business│GMO GPU Cloud (Spec.) World Supercomputer Ranking “TOP500" (Nov. 19, 2012) World 37th 6th in Japan As a commercial cloud service No.1 in Japan As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 24
Slide 25: New Business | GMO GPU Cloud (Progress)
New Business│GMO GPU Cloud (Progress) Announced on 11/22/2024 Pre-sales activities through participation in conferences and seminars Full-scale sales activities are underway to acquire budgets of major clients for the new fiscal year. NVIDIA AI Summit Japan 2024 to be held on 11/12-13, 2024 Seminar
Slide 26: M&A: Accelerate growth through aggressive M&A
M&A Accelerate growth through aggressive M&A theme Expand market share of existing businesses Strengthening of stock-type products Reorganization within the Group As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 26
Slide 27: A- Rating Acquisition
Rating Acquisition A- February 10 Issuer Rating Acquisition (R&I) Support for future bond financing, etc. As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 27
Slide 28: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 28
Slide 29: Full year 2024 financial results (former GMO Ad Partners)
Full year 2024 financial results (former GMO Ad Partners) 257 million for restructuring costs Sales decreased, but operating income increased due to an increase in the ratio of in-house products. Year 2024 Year 2024 Year 2024 Forecast at Revised Forecast track record beginning of term Net sales 15 b
Slide 30: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 30
Slide 31: 2025 Full Year Earnings Forecast
2025 Full Year Earnings Forecast Year 2024 Year 2025 (Earnings forecast) Net sales 12.9 billion yen 75 billion yen Operating income 139 million yen 8 billion yen Ordinary income 151 million yen 7.8 billion yen Attributable to: Shareholders of the parent company (4 million yen) 5 billion yen Net inco
Slide 32: Shareholder Return Policy
Shareholder Return Policy Increase in dividend payout ratio (50% or more → 65% or more) Quarterly dividends As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 32
Slide 33: TSE Prime Listing commemorative dividend
Commemorative dividend (2 years) Year ending December 31, 2025~. Year ending December 31, 2026 (2 years) TSE Prime Listing Dividend payout ratio 100% commemorative dividend Total Basic policy 65% + 35% for commemorative dividend As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GM
Slide 34: Dividend Forecast
Dividend Forecast 18.20 yen per share Net income * Dividend payout 100 （ 65 ％ + 35％ （ ratio ％ (Basic Dividend (Commemorative (2 years) Payout Ratio) dividend) ＝ 18.20 yen Annual Dividend Forecast As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 34
Slide 35: Conclusion
Conclusion Stable revenue (80% of sales) from the solid recurring revenue brought by 8.65 million subscriptions Launch of GMO GPU Cloud As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 35
Slide 36: Conclusion
Conclusion 1. Stable and continuous growth of existing businesses 2. Infrastructure and Advertising Media (M&A) Business Synergies 3. new business 4. M&A (New Business) (Synergies) (Existing Businesses) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 36
Slide 37: Agenda
1. About GMO Internet, Inc. 2. Growth Strategies 3. Full year 2024 financial results (former GMO Ad Partners) 4. Earnings Forecasts and Shareholder Returns 5. reference data 37
Slide 38: Reference data | Net Sales for Full Year 2024
Reference data│Net Sales for Full Year 2024 (Breakdown by Business Segment, Reference Values) Year 2024 Net sales Domain and Rental Server (approximate) (Hosting) Business 19.4 billion yen Internet connection (Provider) Business 41.2 billion yen Internet Advertising and Media Business 15 billion yen
Slide 39: Reference data | Board of Directors
Reference data│Board of Directors Director representative representative chairman of board of director Executive Vice board member directors President and Chief President Masatoshi Kumagai Executive Officer Masashi Yasuda Makoto Hashiguchi Tadashi Ito Directors who are Audit Committee Members Direct
Slide 40: Reference data | Board of Directors
Reference data│Board of Directors Executive Officer Executive Vice Managing Executive Managing Executive Executive Officer President Officer Officer Hiroshi Yamashita Yasuo Hayashi Kimihiro Kodama Toshihiko Sugaya Executive Officer Executive Officer Executive Officer Executive Officer Isamu Sakuma M
Slide 41: Reference data | New Dividend Policy and Shareholder Benefit Plan
Reference data│New Dividend Policy and Shareholder Benefit Plan Before change After change Basic Dividend Payout Ratio 50% 65% Dividend frequency Once a year quarterly dividend Commemorative dividend payout ratio - 35% (2025-2026) Total payout ratio (2025-2026) 50% 100% GMO CLICK Securities, Inc. sh
Slide 42: Reference data | IR Frequently Asked Questions
Reference data│IR Frequently Asked Questions Q: What is the plan for conforming to the tradable share ratio? A: As of the effective date of the transaction, the Company's ratio of shares in circulation is expected to be 1.44%. The ratio of tradable shares in the prime market's listing maintenance cr
Slide 43: Reference data | IR Frequently Asked Questions
Reference data│IR Frequently Asked Questions Q: What is the status of the GPU cloud and its future prospects and advantages over the competition? A: The scale of investment is 10 billion yen, and the subsidy from METI will be 1.93 billion yen. We have procured approximately 800 H200 chips from NVIDI
Slide 44: Precautions for handling this material
Precautions for handling this material This material is intended to provide information regarding our company's corporate presentation and is not intended as a solicitation to invest in securities issued by our company. This material is prepared based on data as of February 12, 2025. The opinions an