Slide 1: Fiscal Year 2024 First Quarter Results Presentation
Fiscal Year 2024 First Quarter Results Presentation STOCK CODE: 9449 May 10, 2024 1
Slide 2: Overview, Group Overview, Segment Report, Topics
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: Q1 FY2024
Overview | Executive Summary: Q1 FY2024 Solid infrastructure business drove performance. Q1’23 Q1’24 YoY ( JPY billions ) Change (Jan-Mar) (Jan-Mar) Change Net Sales 65.5 68.8 +3.2 +5.0% Operating Profit 10.9 14.4 +3.4 +31.4% Ordinary Profit 11.9 15.5 +3.5 +29.9% Net Profit 3.9 5.5 +1.5 +40.4% 3
Slide 4: Executive Summary: Q1 FY2024 Evaluation
Overview | Executive Summary: Q1 FY2024 Evaluation Q1 FY23 Services each hold top share in their respective markets JPY 45.0B (Up 6.8% YoY) Internet Net sales in Japan → Infrastructure OP JPY 9.2B (Up 31.8% YoY) Profits increased 30% in both payment and non-payment segments→ Online Ad & Net sales JP
Slide 5: Executive Summary: Net Sales and Operating Profit Bridge
Overview | Executive Summary: Q1 FY2024 Net sales Operating Profit Up 3.2B YoY Up 3.4B YoY ( JPY billions ) ( JPY billions ) +0.3 68.8 +0.3 +0.7 +1.2 14.4 +2.8 -0.2 +1.1 +2.2 +0.0 +0.0 -0.2 -1.8 65.5 10.9 Q1‘ Infra Crypto Q1‘ Q1‘ Infra Crypto Q1‘ Finance Ad VC Other Finance Ad VC Other 23 structure
Slide 6: 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 6
Slide 7: Shareholder Returns (Dividend per share)
Overview | Shareholder Returns ( Dividend per share ) ( JPY ) 52.7 47.6 12.6 44.1 Based on our policy, 30.8 10.8 28.0 14.2 dividend payout 24.2 ratio is a minimum of 33% 10.6 10.2 12.2 5.0 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 7
Slide 8: Strengths
Strengths 8
Slide 9: Strengths (1) Operations and development of our own technology
Strengths (1) Operations and development of our own technology 9
Slide 10: Operations and development of our own technology
Strengths (1) | Operations and development of our own technology Limited to hiring ※2 Advanced and AI Talent 7,438 7,431 7,317 7,361 7,393 7,396 7,133 7,213 7,042 Goal: Workforce of over 6,767 6,782 6,554 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 60% 5,758 50.3％ 49.5％ 48.8％ engineers & creator
Slide 11: Strengths (2) Solid recurring revenues
Strengths (2) Solid recurring revenues 11
Slide 12: Solid recurring revenue
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 12
Slide 13: Consolidated net sales: sustainable growth
Strengths (2) | Consolidated net sales 258.6 (JPY billions) Changes in rules to record the revenues* Sustainable growth 9.1 * "Accounting standards related to revenue recognition" ( accounting standard No. 29 ) 01 03 05 07 09 11 13 15 17 19 21 23 13
Slide 14: Analysis of consolidated net sales
Strengths (2) | Analysis of consolidated net sales 56.4％ 258.6 37.1％ 241.6 245.6 210.5 (JPY billions) 185.1 196.1 112.7 Solid recurring revenues that 115.5 123.9 154.2 100.5 126.3 135.0 104.5 103.0 support sustainable 79.2 82.9 growth 79.4 145.9 130.1 110.0 117.7 93.1 Solid recurring revenue* 71.3 8
Slide 15: Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 10.6K*1 (JPY) 10,600*1 × Solid recurring (JPY billions) revenue Approx. 14M contracts*2 145.9*3 Number of × contracts 13.74M*2 Approx. JPY 15 16 17 18 19 20 21 22 23 145B *3 15
Slide 16: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts (millions) COVID-19 Impact period* +1.59 -0.02 +0.72 Solid revenue base 14.56 +1.36 +0.17 13.26 13.74 14.56M 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 9.95 Increased 2.29M YoY Q4 Q1 Q2 Q3
Slide 17: Strengths (3) Risk diversification and independent management
Strengths (3) Risk diversification and independent management 17
Slide 18: Risk diversification and independent management
Strengths (3) | Risk diversification and independent management Management that achieves risk diversification by not relying on specific products, clients, or partners 18
Slide 19: Risk diversification: products, customers, partners
Strengths (3) | Risk diversification and independent management Approx. 94 14.56M 7,800 products ※1 customers ※2 partner ※3 *¹ Source: https://www.gmo.jp/service/list/ *² Number of contracts for infrastructure products *³ Including partners of GMO Internet Group affiliates accounted for by the equit
Slide 20: Overview, Group Overview, Segment Report
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 20
Slide 21: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base + financial customer base 17.22M customers Increased customers 2.44M YoY Internet Infrastructure Internet Finance + Cryptoassets increased 2.29M increased 0.14M *Net sales ratio is calculated based on the numbers before cancelling i
Slide 22: 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 276.7 3769 GMO Payment Gateway Prime 612.1 40.7% 249.2 7177 GMO Financial Holdings Standard 93.1 65.8% 61.2 4
Slide 23: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment COVID-19 Impact period*² Changes in rules to (JPY billions) record the revenues*¹ 69.4 68.8 64.6 65.5 64.4 66.0 62.5 62.5 2.3 61.2 1.2 0.4 1.4 59.2 4.3 12.8 0.9 2.0 0.9 56.4 57.5 10.9 6.8 56.0 11.6 53.6 52.8 53.2 5.7 1.2 0.7 12.7 12.2 10.5 3.6 11.3 50.9 1.4 0.8
Slide 24: 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 11.12 10.99 3.52 10.53 0.25 2.55 Profit up 0.15 4.02 10.14 9.62 9.46 0.00 1.24 0.36 8.97 3.76 0.74 31.4% 8.28 8.13 0.01 8.01 3.65 7.06 3.83 3.60 1.48 3.85 2.97 5.95 0.66 3.10 3.81 6.09 0.92 2.68 5.73 5.34 5.37 2
Slide 25: Overview, Group Overview, Segment Report
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 25
Slide 26: Internet Infrastructure | Collection of No. 1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 83.0 Strong No. 1 Domain Registry % ＊1 Domestic market share at Domain Registrar 82.6 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 58.9 % ＊3 No. 1 ASP Cart 51K paid stores Domestic market share at No.
Slide 27: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment COVID-19 Impact period*¹ (JPY billions) Changes in rules to 44.3 45.0 record the revenues*² 0.9 1.1 42.1 42.5 42.4 40.5 1.0 0.9 0.8 1.1 38.0 36.6 0.7 35.8 34.7 0.8 33.5 34.6 34.3 33.5 33.9 0.7 0.5 0.7 0.5 17.5 18.0 Record Revenue up 32.8 0.8 15.3 16
Slide 28: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 9.59 9.21 6.99 Profit up 31.8% 6.28 6.00 6.12 5.53 5.58 5.36 4.93 4.67 4.74 4.75 3.61 3.58 3.76 3.09 3.87 4.01 3.72 4.02 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 23 24 28
Slide 29: Security | Slogan
Security | Slogan Safe and Secure Internet for Everyone 29
Slide 30: Security | Three areas
Security | Three areas 1. Encryption security 2. Cyber security 3. Brand security 30
Slide 31: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No.1 Number of contracts: No.1 31
Slide 32: Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) Number of e-contract 2.02M accounts No.1 1.83 User companies ( extract ) Increased 1.6-fold 1.25 YoY 0.58 20/4/15 Declaration of Abolition of Seals 20/5/13 Campaign launched Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 33: Number of contracts
Internet Infrastructure | Number of contracts 3.65M ( millions ) 3.34 Increased Number of contracts 1.8-fold 2.00 No.1 YoY 0.99 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 23 24 33
Slide 34: ARR (Annual Recurring Revenue)
Internet Infrastructure | ARR (Annual Recurring Revenue)* (JPY billions) 1.36 0.92 Increased 48.2％ YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 * Calculated by multiplying the total monthly fees at the end of each quarter by twelve (excluding one-time revenues). 22 23 24 34
Slide 35: Digital government
Internet Infrastructure | Digital government Adoption by 100 public bodies 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 Saitama Shizuoka Gunma Hokkaido Yamaguchi O
Slide 36: Overview, Group Overview, Segment Report
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 36
Slide 37: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales COVID-19 Impact period*² (JPY billions) Changes in rules to record the revenues*¹ 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 0.8 Revenue up 0.9 0.7 0.8 3.0 0.8 10.7 0.7 3.7 0.6 3.5 2.7 0.6% 2.9 2.8 2.7 2.6 3.3 2.7 2.4 8.8 8.7 8.9
Slide 38: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 0.64 0.73 0.66 0.74 Profit up 11.8% 0.54 0.48 0.42 0.35 0.36 0.24 0.14 0.17 0.25 0.25 YoY 0.09 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 19 20 21 22 23 24 38
Slide 39: Overview, Group Overview, Segment Report
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: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter COVID-19 Impact period*¹ 12.7 (JPY billions) 12.2 11.6 11.3 11.3 10.7 10.9 10.3 10.5 Revenue down 10.0 9.1 9.0 14.2% YoY 8.2 7.9 7.4 7.3 6.7 6.9 6.3 6.5 6.0 Net Profit down 6.3% YoY Sales 3.81 3.85 3.65 3.76 3.83 3.60 3.39 3.52 2.91 3.10 2.97 2.62
Slide 41: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) Revenue down 2,408 2,412 2,484 FX *¹ 25.2% YoY Revenue up 1,484 *² 1,475 CFD 3.0% YoY 537 7,917 6,337 5,800 5,922 4,651 4,093 Securities and others CFDs / Stock Index Binary Options*² Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 42: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume Improved 607 622 profitability 515 through narrowing 341 308 of 202 transaction volume （Q4 FY22~) 7,917 6,337 5,800 5,922 ■ Net sales of OTC-FX/binary options (JPY millions) 4,651 4,093 ■ FX Trading volume (JPY trillions)* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 43: Overview, Group Overview, Segment Report
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: Cryptoassets business | Historical Performance by Quarter
Cryptoassets business | Historical Performance by Quarter (JPY billions) COVID-19 Impact period*² 6.8 Revenue up 92.6% 5.7 4.3 3.6 YoY 2.7 Profit up 2.3 2.1 2.0 2.0 4.02 Net 1.6 JPY 1.2B 1.5 1.4 1.4 Sales 1.2 1.0 1.2 1.2 0.8 2.34 0.9 0.9 0.7 1.48 1.24 OP 0.67 0.42 0.08 0.42 0.38 0.21 0.15 0.71 0.08
Slide 45: Overview, Group Overview, Segment Report
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 45
Slide 46: Efforts Towards Becoming No.1 Corporate Group in Creating the Future with AI
Efforts Towards Becoming No.1 Corporate Group in Creating the Future with AI 46
Slide 47: Themes
No.1 Corporate Group in Creating the Future with AI | 3 Themes 1. Time and cost savings 2. Improvement in the quality of existing services 3. Offering new services to the AI industry 47
Slide 48: Time and cost savings
No.1 Corporate Group in Creating the Future with AI | ①Time and cost savings Creation of work time worth 106K hours (increased 10K hours compared to the previous time) 48
Slide 49: Offering new services to the AI industry
No.1 Corporate Group in Creating the Future with AI | ③Offering new services to the AI industry Plans to provide GPU cloud services using the latest chip, the H200, by the end of this year as the fastest in Japan. 49
Slide 50: GPU cloud services investment outline
No.1 Corporate Group in Creating the Future with AI | ③Offering new services to the AI industry • Planned investment of JPY 7.1B to provide GPU cloud services Outline for generative AI. (Initial estimate JPY 10.0B) • The subsidy of JPY 1.93B , or 1/3 of the JPY 5.8B targeted for ※ METI subsidies, is
Slide 51: GMO OMAKASE
GMO OMAKASE
Slide 52: Internet Infrastructure | GMO OMAKASE
Internet Infrastructure | GMO OMAKASE The only official partner in the web service and gourmet area（July 2023 ～） 52
Slide 53: Internet for Everyone
Internet for Everyone GMO
Slide 54: Next earnings announcement and cautionary notes
We are planning on making an earnings announcement for FY2024 second Quarter after 3 pm on August 8, 2024. This document includes projections based on expectations, premises and plans as of May 10, 2024. These projections may differ from actual results due to factors including changes in the global
Slide 55: Appendix
Appendix 55
Slide 56: Appendix contents
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 56
Slide 57: Group Overview
Group Overview Company Name GMO Internet Group, Inc. Decentralized group management in order to adapt rapid changes of Founder, Chairman Masatoshi Kumagai and Group CEO Internet industry. Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo (The 2nd Group Head Office) SHI
Slide 58: 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) Others GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS Other GMO-FG：GMO FINANCIAL G
Slide 59: 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 Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD 59
Slide 60: Internet services operations
Internet services operations GMO-IG(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Others Others GMO-PG (3769) GMO-IG Payment GMO-FG (4051) GMO-GSHD (3788) Hosting & cloud Others GMO-PB (3633) Other Provider GMO-IG GMO-PB (3633) E-commerce solutions Other Listed subsidiaries (stock code) 60
Slide 61: Appendix contents
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 61
Slide 62: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 Human resources 11,270 12,227 12,506 12,766 13,433 Advertising and promotion 45,000 3,692 3,294 Depreciation and leases 40,000 3,564 4,047 3,671 3,880 4,162 Outsourcing costs 4,067 35,000 4,231 4,217 4,655 4,909 Communication costs 5,
Slide 63: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/23 3/24 (End of 3/24) (End of 3/24) Current Assets 1,614,257 1,759,929 145,672 1,207,241 187,422 Cash & Deposits 393,452 402,725 9,272 70,028 127,580 Fixed Assets 143,379 177,403 34,023 38,482 131
Slide 64: Consolidated Statement of income
Consolidated Statement of income Q1'23 Q1'24 supplementary (JPY millions) Changes (1-3/2023) (1-3/2024) information Net Sales 65,593 68,861 5.0% Gross Profit on Sales 38,412 40,456 5.3% Operating Income 10,990 14,436 31.4% （OP Margin） 16.8% 21.0% +4.2pt Non Operating Profit and Loss 942 1,066 13.2%
Slide 65: 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 66: Financial Strategy | Procurement: 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） FY21 FY22 FY23 Domestic Total 2,946 3,911 4,735 Debt finance Corporate Bonds Corporate 659 717 1,312 Individual bo
Slide 67: Financial Strategy | Lengthening term, Fixed interest rate
Financial Strategy｜Procurement②③ Lengthening term・Fixed interest rate • Aiming to build a strong financial base Debt balance average term Fixed interest rate ratio （Year） FY21 FY22 FY23 （％） FY21 FY22 FY23 Corporate bond 5.7 3.9 3.5 Corporate bond 100.0 100.0 100.0 Debt finance Debt finance 3.8 3.8 3
Slide 68: Financial Strategy | Asset management: Cash on hand
Financial Strategy｜Asset management②Cash on hand • Keeping enough repayment cash(the amount for debt financing repayment next year and for corporate bond’s repayment next 2 years) （100M Yen） FY21 FY22 FY23 cash and cash equivalents 2,340 3,222 3,889 Balance of interest debt within 429 793 1,106 3Yea
Slide 69: 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) 69
Slide 70: Appendix contents
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 70
Slide 71: Consolidated results transition
Consolidated results transition Sales increased for 15 consecutive fiscal years 258.6 42.47 43.74 Sales 241.6 245.6 Profit 41.09 13.3 20.6 (JPY billion) 210.5 6.2 47.2 (JPY billion) 10.09 13.75 9.09 196.1 6.7 33.8 42.5 185.1 6.0 30.8 34.6 27.89 1.87 28.5 25.27 0.76 9.29 154.2 34.0 30.7 52.0 11.71 21
Slide 72: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 9.2％ 9.2% 8.8％ 6.5％ 7.1％ 6.31 Net sales 6.1% 5.77 YoY 5.17 Global Sales Ratio 4.36 9.4%UP 3.20 2.97 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 Q4 Q
Slide 73: Internet Infrastructure
Internet Infrastructure 73 73
Slide 74: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 6.76 +30.3％ 5.19 4.09 3.45 2.68 2.19 2.60 2.43 3.21 +32.0％ 1.76 1.69 1.63 -0.34 -0.34 -0.42 Payment business -0.51 -0.63 -0.76 Except payment business Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Cost allocation
Slide 75: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) We focuse on our in-house product, resulting in a stable Changes in rules to trend in the number of line record the revenues* 10,728 2,244 2,266 2,256 2,205 10,011 9,995 9,420 1,946 9,248 7,744 1,526 Q1 Q2 Q3
Slide 76: 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 2019 2020 2021 2022 2023 2024 ※Mobile and others indicated combined after FY23Q3 76
Slide 77: Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Overseas sales and domestic demands are strong Changes in rules to record the revenues* 9,473 2,594 2,291 2,221 2,136 2,175 7,289 7,189 2,028 7,008 6,528 6,549 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 78: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 78
Slide 79: Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) Favorable in 2,791 overseas sales 1,620 Renewal rate: 65.9%* 1,125 829 731 588 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 2024 * Renewal rate for domains registered between September
Slide 80: Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,117 1,113 1,093 5,195 995 4,810 4,484 895 864 3,909 3,740 3,549 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 81: 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 81
Slide 82: 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 6,000 Changes in rules to number of high-priced record the
Slide 83: Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 132 128 128 118 YoY 85 74 80 113 122 120 127 3.6% UP Freenance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SUZURI, Canvath minne 19 20 21 22 23 24 Ecommerce Platform 83
Slide 84: 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 85: 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 86: Internet Infrastructure | Achievements
Internet Infrastructure | Achievements Cyber Security Assessment More than 7,500 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 Affa
Slide 87: Internet Infrastructure | Service usage
Internet Infrastructure | Service usage 87
Slide 88: 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 88
Slide 89: 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 89
Slide 90: Payment processing - Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies trough ‘contracts,’ ‘payment information,’ and ‘money flow’. Consumer Merchant GMO-PG Payment Company ※1 consolidated subsidiaries 153,336 stores 40+ Credit card companies (As of end-March 2024) EC Conv
Slide 91: Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥16.7 trillion in the past 12 months Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 At the end of FY2024.3 FY2024.1-3 Past 12-months FY2024.1-3 Past 12-months - 1.77 bn 6.80 bn ¥4.6 trn ¥16.7 trn
Slide 92: Online Advertising & Media
Online Advertising & Media 92 92
Slide 93: GMO Research&AI | Audience Engagement Platform
GMO Research&AI｜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
Slide 94: GMO Research&AI | Business Strategy for 2024
GMO Research&AI｜Business Strategy for 2024 Focus on transactions with high gross profit margins Domestics Expand direct sales to End Clients, etc. and International Further growth in sales and improved gross increase gross profit margin by providing AI-based research profit margins for Research Firm
Slide 95: Internet Finance
Internet Finance 95 95
Slide 96: Thai securities business | credit balance and non-performing loans
Thai securities business | The outstanding credit balance and the trend of non-performing loans After the incident in the Thai securities market Current progress in November 2022, all doubtful accounts were （Million THB） transferred to bankruptcy rehabilitation claims. Credit Balance Under the new c
Slide 97: Domestic FX volume and share transition
Internet Finance |Domestic FX volume and share transition Stable trading share 20％ or so USD／JPY （JPY Trilion） Domestic trading volume Domestic share Volatility (Sum of 3 companies ※1 (Sum of 3 companies) SHARE20.3%: At the end March 2024 Feb 2018 Feb 2024 ※The information you provided is related to
Slide 98: CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition ■Transaction （JPY Trillion） ■Revenue （JPY Million） Transaction volume YoY 5.2 %Down Profit YoY 2.5% Up Trading volume has been decreased, but profitability improved. * Prepared based on GMO-Financial Holdings presentation materials 98
Slide 99: CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 6.4 %Down A slight decrease but the level remains high * Prepared based on GMO-Financial Holdings presentation materials 99
Slide 100: Stock brokerage commission and commission rate transition
Internet Finance｜Stock brokerage commission and commission rate transition ■Stock Brokerage 株式委託手数料 株式委託手数料率 Rate Commission Rate ■Commission （百万円） commission （bp） (bp) (bp) (Million Yen) Stock Brokerage Commission YoY 18.8%UP With the increase in trading volume, commission fees also rise Q4’23 Stoc
Slide 101: 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 102: Cryptoassets
Cryptoassets 102 102
Slide 103: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 103
Slide 104: Cryptoasset Exchange Business | Trading volume
Cryptoasset Exchange Business｜Trading volume (JPY Billion) YoY 109.1%UP Trading volume has increased by the rise in cryptocurrency prices, particularly Bitcoin. ※Regarding market share, the market's trading volume is based on the data published by the Japan Cryptocurrency Exchange Association, while
Slide 105: Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition ■Client Asset ■Cryptoasset under Custody accounts （JPY Billion） （thousand accounts） Accounts YoY 67 K Up Deposit Asset YoY 128.6 %Up * Prepared based on Results Presentation of GMO-Financial Holdings 105
Slide 106: 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 107: GMO Aozora Net Bank
GMO Aozora Net Bank 107
Slide 108: Net Bank | Bank x IT
Net Bank Bank×IT Born in July 2018 Banking management know-how Technology 108
Slide 109: Net Bank | Vision
Net Bank | Vision GMO AOZORA NET BANK TNTISERZE EDLH, O. -7/09-KY 74580 — All for our customers. Strive to be the No.1 Tech Bank. GMO 109
Slide 110: Net Bank | Focus on corporate clients
Net Bank Point 1 Focus on corporate clients The core business : Point 2 Exchange, Debit cards, and business loans Point 3 Bank System＋Bank API＋In-house development Point 4 BaaS byGMOAozora Point 5 Approximately 40% of employees are engineers 110
Slide 111: Net Bank | Number of business accounts
Net Bank | Number of business accounts 125 （Thousands） 113 101 1.6-fold 89 77 57 66 about 47 27 32 39 UP YoY 23 19 16 13 10 4 6 0 1 3 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 19 20 21 22 23 24 111
Slide 112: Net Bank | BaaS by GMO Aozora KPI
Net Bank |BaaS byGMO Aozora KPI Total number of contracted Embedded Financial service 629 （per contract） 454 progressing well 281 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 23 24 112
Slide 113: Appendix contents
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 113
Slide 114: Topics: Becoming the No.1 Corporate Group Pioneering the Future with AI
—* Becoming the No.1 Corporate Grou Pioneering the Future with Al . « 114
Slide 115: Our initiatives towards realization (1/2)
Our initiatives towards realization （1/2） We have been driving research and development in AI, particularly in financial data analysis, and have achieved significant results since hiring our first data scientist approximately 10 years ago. GMO NIKKO has built and analyzed big data analytics(DMP)infr
Slide 116: 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. ①How much cost savings? ②How many personnel reductions? ③How much sales expansion? With those 3 themes, we continue our ef
Slide 117: Appendix contents
Group Overview Financial condition and strategy Consolidated results ESG activities 117
Slide 118: 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 119: 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." 119
Slide 120: Sustainability management for SDGs
ESG activities ｜Sustainability management for SDGs Our business helps Social and environmental issues to be solved. ・ ・ ・ 120
Slide 121: ESG activities | Disclosure Processes/External Evaluation
ESG activities | Disclosure Processes/External Evaluation [Disclosure Progress] Jan. 2024 FTSE ESG Ratings 2.8 Assessment by ESG rating agencies / Inclusion in ESG indexes Mar. 2023 Dec. 2023 *2 Expanding Human capital disclosure In April 2024, GMO Internet Group, Inc. Identifying Material Issues. F
Slide 122: Internet for Everyone
Internet for Everyone 122 122