Slide 1: Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2025
(4784) Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2025 Financial announcement: May 14, 2025 Financial Results Meeting: May 15, 2025 Tadashi Ito, President and CEO Copyright © GMO Internet, Inc. All Rights Reserved.
Slide 2: Agenda
1. First Quarter 2025 Financial Summary 2. Progress and measures in growth strategies and each area 3. Shareholder Returns 4. reference data 2
Slide 3: 1. First Quarter 2025 Financial Summary
1. First Quarter 2025 Financial Summary 2. Progress and measures in growth strategies and each area 3. Shareholder Returns 4. reference data 3
Slide 4: Consolidated Financial Summary
Consolidated Financial Summary Full Year Full Year (Billions of Yen) Q1, 2025 Forecast Progress Rate - Solid performance in both Net sales 19 75 25.4% existing and new businesses - Full-year progress is Operating income 1.63 8 20.4% in line with forecast. (Cost increase due to upfront GPU cloud expe
Slide 5: Consolidated Results Summary (by Segment)
Consolidated Results Summary (by Segment) (Billions of Yen) Net sales Operating income Domain and rental Server Business 4.87 0.93 Internet Internet Infrastructure Connecting Business 10.4 2.0 Business Internet Infrastructure Business Infrastructure Business Common expenses, etc. 0.25 (1.28) Other 3
Slide 6: Consolidated Performance Summary (Number of Contracts KPI Progress)
Consolidated Performance Summary (Number of Contracts KPI Progress) 0.16 million overseas contracts 8.2 million contracts in Japan Steady increase despite quarterly fluctuations Z.com Overseas Infrastructure Business Number of contracts Internet Connection Business Number of domestic business contra
Slide 7: 2. Progress and measures in growth strategies and each area
1. First Quarter 2025 Financial Summary 2. Progress and measures in growth strategies and each area 3. Shareholder Returns 4. reference data 7
Slide 8: 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. 8
Slide 9: Growth Strategies
Growth Strategies 1. Stable and continuous growth of existing businesses 2. Infrastructure and Advertising Media Business Synergies 3. new business 4. M&A (Existing Businesses) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 9
Slide 10: Consolidated sales and recurring ratio
Consolidated sales and recurring ratio Recurring ratio 81.6% Increase in sales due to the busy season for the advertising media business Recurring ratio remained at a high level Consolidated net sales (billions of yen) Recurring ratio Q *The figures for 2023-2024 are estimated figures assuming the c
Slide 11: Domain and Rental Server (Hosting) Business Q1 Progress
Domain and Rental Server(Hosting) Business Q1 Progress Sales progress is steady Increased costs due to GPU cloud launch period Net sales (Billions of yen) Operating income (billions of yen) Q *The figures for 2023-2024 are estimated figures assuming the current structure. As of January 1, 2025, GMO
Slide 12: Existing Business Topics｜Domain and Rental Server Business
Existing Business Topics｜Domain and Rental Server Business GMO also provides internet security A secure future for everyone Security measures service “Net de Diagnosis” (Online Security Diagnosis) bundled with onamae.com Differentiation as infrastructure Onamae.com Online Security Diagnosis that can
Slide 13: Existing Business Topics
Existing Business Topics ASP that enables browser-based use of image generation AI “Stable Diffusion”* For AI image generation, try CohoHa AI Canvas. Intuitive AI image generation Generated image Meets a wide range of customer needs *First domestic operator to adopt Comfy UI As of January 1, 2025, G
Slide 14: Internet Connection Business (Provider) Q1 Progress
Internet Connection Business (Provider) Q1 Progress Revisions due to changes in revenue recognition criteria Sales remained flat, but operating income continued to increase due to an increase in the ratio of in-house products and improved customer attraction efficiency. Net sales (Billions of yen) O
Slide 15: Internet Connection Business (Provider) Services
Internet Connection Business (Provider) Services Number of contracts High-speed optical line with up to 10 gigabits YoY +42.2 Our own product, with strong sales of the 10-gigabyte plan Toku-Toku BB Hikari (*Product name means affordable fiber optic Grand Prize Contributing to improved profitability
Slide 16: Internet Advertising and Media Business Q1 Progress
Internet Advertising and Media Business Q1 Progress Advertising agency business saw a decline in sales Sales of proprietary products increased, and profits recovered year-on-year Net sales (Billions of yen) Q Operating income (billions of yen) *The figures for 2023-2024 are estimated figures assumin
Slide 17: Existing Business Topics | Case Studies
Existing Business Topics| Case Studies TikTok in-app random selection feature “Instant Win” Released for the first time in the world * FamilyMart Asahi Soft Earth Corporation Co.,Ltd. Drinks Co., Ltd. *Confirmed by the TikTok API for Business team as the world's first case of a solution built with T
Slide 18: Growth Strategies
Growth Strategies 1. Stable and continuous growth of existing businesses 2. Infrastructure and Advertising Media Business Synergies 3. new business 4. M&A (Synergies) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 18
Slide 19: 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 Number of contracts Both businesses are stro
Slide 20: Infrastructure and Advertising Media Business Synergies
Infrastructure and Advertising Media Business Synergies Operating website for existing customers of the Internet Connection Business using expertise in the Advertising Media Business Toku-Toku Club (*Website for existing customers of Toku-Toku BB ) Toku-Toku BB Development and operation based on exp
Slide 21: Growth Strategies
Growth Strategies 1. Stable and continuous growth of existing businesses 2. Infrastructure and Advertising Media Business Synergies 3. new business 4. M&A (New Business) 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
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. 22
Slide 23: New Business│GMO GPU Cloud Sales Progress
New Business│GMO GPU Cloud Sales Progress Companies that have introduced GMO GPU Cloud AI Robot Association Turing Inc. NEC Corporation As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 23
Slide 24: New Business│GMO GPU Cloud Customer's Voice (1)
New Business│GMO GPU Cloud Customer's Voice (1) AI Robot Association, a general incorporated association, has adopted Company aiming for fully automated operation GMObyGPU by 2030. Founded Cloud Kazunari as famous Yamamoto, its computing for his Shogi AI. Based on camera infrastructure image informa
Slide 25: New Business│GMO GPU Cloud Customer's Voice (2)
New Business│GMO GPU Cloud Customer's Voice (2) Aiming for fully automated operation by 2030 Company aiming for fully automated operation by 2030. Founded by Kazunari Yamamoto, famous for his Shogi AI. Based on camera image AI information, AI performs both analysis recognition of camera and control
Slide 26: New Business│GMO GPU Cloud Additional Investment
New Business│GMO GPU Cloud Additional Investment Investment Performance / Plan 2023/12 Participation in NVIDIA Partner Program Making Approximately 10 billion yen invested 2024/2 in GPU servers equipped with NVIDIA H200 METI has approved the “Cloud Program” 2024/4 supply security plan. A maximum sub
Slide 27: 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 As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 27
Slide 28: 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. 28
Slide 29: M&A
M&A March, 2025 The Company acquired shares in 11 companies in six countries that provide Internet infrastructure services under the unified overseas brand “ ” from GMO Internet Group (9449). Number of contracts: 160,000 Providing Internet infrastructure services such as domain names in six Asian co
Slide 30: M&A Sales trends of overseas companies
M&A Sales trends of 11 overseas companies Sustained growth (simple sum of sales, excluding consolidation adjustments) mainly in Vietnam and Thailand From the second quarter of 2025 PL Consolidation Net sales (billions of yen) As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO I
Slide 31: 3. Shareholder Returns
1. First Quarter 2025 Financial Summary 2. Progress and measures in growth strategies and each area 3. Shareholder Returns 4. reference data 31
Slide 32: Quarterly Dividends
Quarterly Dividends 4.61 yen quarterly net income per share * Dividend payout ratio 100 * （ 65％ + 35％ （ ％ (Basic Dividend (Commemorative ＝ Payout Ratio) dividend) Q1 Dividend 4.61 yen 18.2 yen Full-year Dividend Forecast *This is the dividend payout ratio before adjustment for deduction of treasury
Slide 33: Conclusion
Conclusion Q1 results are progressing as planned in line with full-year forecasts. GMO GPU Cloud is going well Acquired overseas business through M&A from GMO-IG (9449) Consolidated PL from Q2 As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 33
Slide 34: As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to
As of January 1, 2025, GMO Ad Partners, Inc. has changed its name to GMO Internet, Inc. 34
Slide 35: 4. Reference data
1. First Quarter 2025 Financial Summary 2. Progress and measures in growth strategies and each area 3. Shareholder Returns 4. reference data 35
Slide 36: Reference data│BS Overview
Reference data│BS Overview (Millions of yen) Current assets current liabilities Short-term debt and cash equivalent 9,621 4,406 current portion of long-term debt Notes, accounts receivable 12,312 arrears 6,809 and contract assets prepaid expenses 5,754 Accounts payable 3,488 Other 2,779 Contract lia
Slide 37: 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 38: 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 NVI
Slide 39: Reference data│IR Frequently Asked Questions
Reference data│IR Frequently Asked Questions Q: What are the details and financial impact of the acquisition of 11 Z.com overseas infrastructure companies? A: - The impact of this matter on sales and operating income in 2025 is not expected to be material. - Revenue for the relevant business segment
Slide 40: Reference Materials│Overseas Business Segment
Reference Materials│Overseas Business Segment Domain and Rental Server (hosting) business Internet Infrastructure Business Internet connection (Provider) Business Internet Advertising and Media Business Other (company-wide common expenses, etc.) As of January 1, 2025, GMO Ad Partners, Inc. has chang
Slide 41: Reference Materials│Impact of Mutual Tariffs
Reference Materials│Impact of Mutual Tariffs Conclusion: No particular impact Business Segment affect No impact: Server component procurement prices Domain and Rental Server (impact on suppliers, not on the Company) Business Semiconductors are basically excluded, but the situation is being closely m
Slide 42: 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 43: 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 S
Slide 44: Precautions for handling this material
Precautions for handling this material This document is intended to explain the contents of our financial results for the first quarter of the fiscal year ending December 2025 and has not been prepared for the purpose of soliciting investments whether in or outside Japan. Additionally, this press re