Slide 1: Fiscal Year 2024 Third Quarter Results Presentation
Fiscal Year 2024 Third Quarter Results Presentation STOCK CODE: 9449 Nov 12, 2024 1
Slide 2: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 2
Slide 3: Overview
Overview Become a group that will continue to over the next century by thoroughly implementing long-term management, pursuing No.1 products and recurring revenue through operations and development of our own technology. In Q3, almost our companies achieved increasing in profits, resulting of indep
Slide 4: Executive Summary: Q3 FY2024
Overview | Executive Summary: Q3 FY2024 Infrastructure driven, Internet Finance business improved profitability. Due to foreign exchange impact, both Ordinary Profit and Net Profit were decreased. Q3‘23 Q3‘24 YoY ( JPY billions ) Change （Jul-Sep） （Jul-Sep） Change Net Sales 62.5 69.6 +7.1 ＋11.4％ Reco
Slide 5: Executive Summary: Q1-Q3 FY2024
Overview | Executive Summary: Q1-Q3 FY2024 Infrastructure business was favorable to absorb temporary costs in Finance business Q3‘23 Q3‘24 YoY （JPY billions） Change （Jan-Sep） （Jan-Sep） Change Net Sales 192.5 206.1 +13.5 +7.0％ Operating Profit 30.0 35.8 ＋5.7 ＋19.1％ Ordinary Profit 32.2 34.6 ＋2.4 +7.6
Slide 6: Executive Summary: Q3 FY2024 Evaluation
Overview | Executive Summary: Q3 FY2024 Evaluation Q3 Q2 Net sales JPY46.3B （Up 9.1％ YoY） • Overwhelmingly No.1 services, both Internet payments and non-payments well performed. " " " " Infrastructure JPY 7.7B （Up 27.2％ YoY） • Achieved record-breaking quarterly sales OP for four consecutive quarters
Slide 7: Net Sales and Operating Profit YoY Changes
Overview | Executive Summary: Q3 FY2024 Net sales Operating Profit Up 7.1B YoY Up 2.3B YoY ( JPY billions ) ( JPY billions ) +1.1 69.6 +0.1 11.8 +0.7 +2.0 +0.5 0.0 +1.6 -0.1 +0.1 +3.8 -0.5 -0.2 9.4 62.5 Q3‘ Infra Crypto Q3‘ Q3‘ Infra Crypto Q3‘ Finance Ad VC Other Finance Ad VC Other 23 structure as
Slide 8: 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 AI x Robotics and Security Business. New Foundations Existing business AI x Robotics （ Focus Area Security Payment ） EC Support Access Hosting Domain
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 * Operating income after deduction of one-time expenses 19 20
Slide 10: 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 Electronic seal Cyber Securi
Slide 11: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 11
Slide 12: Our Strengths for Sustainable Growth
Our Strengths for Sustainable Growth 12
Slide 13: 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 13
Slide 14: 1. 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. 14
Slide 15: Group's overall getting strong
1. Independent management * Infrastructure segment profit archievement by each group excluding payment +22 （ JPY billions ） 12 Most group companies +11 achieved increased in profits companies Profit 7 up companies Group's overall 1 Profit 6 companies companies getting strong down * Excluding new con
Slide 16: Operations and development of our own technology
2. Operations and development of our own technology Engineers & Creators ratio *2 Limited to hiring Advanced and AI Talent 7,546 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％ 50.5％
Slide 17: Solid recurring revenue
3. Solid recurring revenue That means our core business policies, Indispensable products that will not disappear With recurring revenue business model 17
Slide 18: Consolidated Net Sales: Sustainable growth
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 18
Slide 19: Solid recurring revenues
3. Solid recurring revenues Both unit price and number of contracts increased, leading to expansion. Unit price Solid recurring revenue 1.7times × Number of contracts 3.1times Solid recurring revenue Other revenue 1.9times 15 16 17 18 19 20 21 22 23 * The combined value of stock and transaction reve
Slide 20: Internet Infrastructure: Contracts
Internet Infrastructure | Contracts (millions) COVID-19 Impact period* +1.59 15.06 15.18 Solid recurring +0.72 -0.02 revenues base 14.56 +1.36 +0.17 13.74 13.26 15.18M 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 10.74 10.93 10.36 customers 9.95 Increased
Slide 21: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 21
Slide 22: Group of businesses with a customer base of 17.91 million
Group of businesses with a customer base of 17.91 million 22
Slide 23: 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 292.9 3769 GMO Payment Gateway Prime 677.5 40.7% 275.8 7177 GMO Financial Holdings Standard 81.8 65.8% 53.8 405
Slide 24: Net Sales by Segment
Net Sales by Segment (JPY billions) COVID-19 Impact period*² Changes in rules to record the revenues*¹ 69.4 69.5 Revenue up 68.8 67.6 64.6 65.5 64.4 66.0 1.5 11.4% 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 56.4 57.5 12.6 6.8 56.0 11.6 10.9 10.8 53.6 52.8 53.2 5.7 1.2 0.7 12.7 12.2
Slide 25: Profit by Segment
Profit by Segment 19.84 (JPY billions) 14.43 0.44 0.95 12.47 12.38 Profit up 0.08 11.62 11.12 10.99 3.52 0.22 10.53 0.25 2.55 24.8% 0.15 9.57 4.02 10.14 9.62 9.46 1.24 0.00 0.38 0.36 0.56 3.33 8.97 3.76 0.74 8.28 8.13 0.01 8.01 3.65 7.06 3.83 3.60 0.60 1.48 3.85 2.97 0.66 YoY 5.95 3.10 3.81 6.09 0.9
Slide 26: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 26
Slide 27: Internet Infrastructure: Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 46.3 COVID-19 Impact period*¹ 45.0 45.6 Revenue up 44.3 1.7 1.2 Changes in rules to 42.1 42.5 42.4 0.9 1.1 Record high 0.9 0.8 record the revenues*² 40.5 1.0 9.1% 1.1 38.0 36.6 0.7 35.8 34.6 34.3 34.7 0.8 0.7 17.8 33.5 33.5 33.9 0.7 0
Slide 28: Internet Infrastructure: Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 9.59 9.21 9.44 Profit up 6.99 7.56 27.2% 5.53 6.28 5.58 5.36 6.00 6.12 YoY 4.93 4.67 4.74 4.75 In Q3, profits increased due to the 3.61 3.58 3.76 3.87 4.01 3.72 4.02 accumulation of Solid recurring revenues 3.09 without large project. Q1 Q2 Q
Slide 29: Security: Safe and Secure Internet for Everyone
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: Cyber security achievements
Internet Infrastructure｜Cyber security achievements Vulnerability Assessment・ Penetration test Total results Over 9,800 cases 31
Slide 32: Cloud service for generative AI
Internet Infrastructure ｜Cloud service for generative AI The service will be available in late November 2024 32
Slide 33: Online Advertising & Media: Net Sales
Online Advertising & Media | Net Sales (JPY billions) COVID-19 Impact period*² Revenue down Changes in rules to 13.6 13.5 record the revenues*¹ 6.2% 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 0.9 0.7 0.8 3.0 0.8 10.7 0.7 3.7 0.6 YoY 2.8 2.7 3.5 2.9 2.7 2.6 3.3 2.7 2.4 8.8 8
Slide 34: Online Advertising & Media: Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 0.73 0.74 Profit up 29.5% 0.64 0.66 0.62 0.54 0.56 0.48 0.42 0.24 0.25 0.25 0.35 0.36 YoY 0.17 Growth in high margin 0.14 0.09 0.06 0.04 our products -0.02 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 35: Internet Finance: Historical Performance by quarter
Internet Finance | Historical Performance by quarter 12.7 12.6 COVID-19 Impact period*¹ 12.2 (JPY billions) 11.6 11.3 11.3 Revenue up 10.7 10.9 10.8 10.3 10.5 10.0 19.9% YoY 9.1 9.0 8.2 7.9 7.4 7.3 6.9 6.3 6.7 6.5 Although profitability improved, 6.0 the impact of provisions in Thailand, Net Sales P
Slide 36: Internet Finance: Net sales by each product
Internet Finance | Net sales by each product (JPY millions) Increased trading volume Revenue Up 1,648 1,960 FX *¹ 30.2% YoY 2,257 18.9% YoY 586 *² 1,459 1,462 8,421 CFD 6,470 5,549 5,403 3,881 3,335 Securities and others CFDs / Stock Index Binary Options*² Currency-related over-the-counter derivativ
Slide 37: Internet Finance: FX net sales and trading volume
Internet Finance | FX net sales and trading volume 928 880 576 375 285 Favorable, due to increased Exchange volatility 204 8,421 Cost efficiency in progress. 6,470 5,549 5,403 ■ Net sales of OTC-FX/binary options (JPY millions) 3,881 3,335 ■ FX Trading volume (JPY trillions)* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 38: Cryptoassets business: Historical Performance by Quarter
Cryptoassets business | Historical Performance by Quarter (JPY billions) COVID-19 Impact period*² 6.8 Revenue up 58.4% 5.7 4.3 3.6 YoY 2.7 Profit up 2.3 2.1 2.0 2.0 Net 1.6 4.02 1.7 JPY 0.7B 1.5 1.4 1.4 1.5 Sales 1.2 1.2 1.2 1.0 2.34 0.9 0.9 0.8 0.7 1.48 1.24 OP 0.67 0.42 0.08 0.42 0.71 0.95 0.38 0.
Slide 39: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 39
Slide 40: Purpose
Purpose Become a group that thrives over hundreds of years. Strong organization to realize sustainable growth. 40
Slide 41: Transition to a holding company structure
Transition to a holding company structure Focus on group management functions, with responsible for optimizing business portfolio and building a foundation for powerful group synergies. Delegate authorities to each group company to accelerate their growth. 41
Slide 42: Group Structure: At present
Group Structure｜At present Under the structure, each company operates themselves independently, leveraging their unique strengths and expertise. GMO-IG (9449) （business holding company） GMO-PG GMO-GSHD GMO-PB GMO-AP GMO-TE GMO-ME GMO-RE GMO-FH Other （3769） （3788） （3633） (4784) (6026) (6180) (3695) (
Slide 43: Internet-group restructuring scheme
Internet-group restructuring | scheme Transferring the core business to GMO-AP. *2 present After the effective date GMO Internet Group, Inc. GMO Internet Group, Inc. (9449, Prime market.) (9449, Prime market.) Group management Group management Infrastructure business etc. functions, etc. functions,
Slide 44: 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 GMOI for further growth. Domain Internet Cloud Hosting Infrastructure Access Online Advertising Online Advertising & Media Media * A
Slide 45: New GMO Internet, Inc.: FY2023 Financial Highlights
* New GMO Internet, Inc. | FY2023 Financial Highlights This merger greatly expands the scope of our businesses. Infrastructure Business Online Ad & Media （Succession from GMO-IG） （GMO-AP） Net Sales JPY 61.5B *2 14.9B JPY 6.1B -0.02B Operating Profit *2 * As of January 1, 2025 *2 Pro-forma PL, not au
Slide 46: New GMO Internet, Inc.: synthesis effect
* New GMO Internet, Inc. | synthesis effect Infrastructure business Online Ad & Media (Succession from GMO-IG) (GMO-AP) To attract customers No. 1 stock Marketing more strongly merchandises expertise * After January 1, 2025 46
Slide 47: Future Plans
Future Plans GMO Internet • To achieve 55-years plan, which is super long-term goal, we Group will optimize business portfolio and building a foundation （9449） for powerful group synergies. * GMO Internet, Inc. • Synergy creation by leveraging existing businesses. （4784） • Launch of GPU Cloud Servic
Slide 48: Agenda
1. Overview 2. Group Management Strategy 3. Segment Report ⅰ)Group Overview ⅱ) Internet Infrastructure ⅲ) Online Advertising & Media ⅳ)Internet Finance ⅴ) Cryptoassets 4. Transition to a holding company structure 5. Shareholder Returns 48
Slide 49: Shareholder Returns: Policy
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 49
Slide 50: Shareholder Returns: Dividend per share
Shareholder Returns | Dividend per share ( JPY ) 52.7 47.6 12.6 44.1 30.8 10.8 28.0 14.2 Based on our policy, 7.7 dividend payout ratio 24.2 5.0 10.6 12.2 10.2 at least over 33% 6.9 7.2 7.4 7.5 ■ Q4 6.2 19.6 ■ Q3 6.0 17.1 17.2 ■ Q2 12.2 ■ Q1 6.0 6.6 19 20 21 22 23 24 50
Slide 51: Shareholder Returns: repurchasing treasury stock and retirement
Shareholder Returns | repurchasing treasury stock・Retirement Progress smoothly Progress Plan （As of the end of October） Total cost of share acquisition JPY 5.0B(max.) * . JPY 3 64B Total number of shares to be acquired 2.9M * 1.51M shares (max.) *Plans to retire all treasury shares acquired during t
Slide 52: Internet for Everyone
Internet for Everyone GMO
Slide 53: Next earnings announcement and forward-looking statements
Earning announcement for FY2024 Fourth Quarter to be planned after 3 pm on February 12th, 2025. This document includes projections based on expectations, premises and plans as of November 12, 2024. These projections may differ from actual results due to factors including changes in the global econom
Slide 54: Appendix
Appendix 54
Slide 55: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 55
Slide 56: 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 57: Operating companies (1/2)
Operating companies(1/2) GMO-PG GMO-FG GMO-AP （3769） （4051） (4784) GMO-TE GMO-GSHD (6026) （3788） Internet GMO-IG Online Advertising GMO-ME Infrastructure （9449） & Media (6180) GMO-PB （3633） GMO-RE (3695) その他 Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS GMO-FG：GMO FINANCIAL GATE GMO-TE：GMO
Slide 58: Operating companies (2/2)
Operating companies(2/2) 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 58
Slide 59: 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) Others Hosting & cloud GMO-PB (3633) Other Provider GMO-IG GMO-PB (3633) E-commerce solutions Other Listed subsidiaries (stock code) 59
Slide 60: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 60
Slide 61: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 65,000 60,000 55,000 Human resources 13,193 14,044 50,000 Advertising and promotion 12,506 12,766 13,433 45,000 Depreciation and leases 3,251 3,351 40,000 3,564 4,086 1,949 Outsourcing costs 3,671 3,880 4,067 5,374 35,000 4,231 4,217 5,451 Communication c
Slide 62: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/23 9/2024 (End of 9/24) (End of 9/2024) Current Assets 1,614,257 1,677,295 63,038 1,119,904 193,225 Cash & Deposits 393,452 446,004 52,551 100,168 127,373 Fixed Assets 143,379 197,435 54,055 37,00
Slide 63: Consolidated Statement of income
Consolidated Statement of income Q3'23 Q3'24 supplementary (JPY millions) Changes (1-9/2023) (1-9/2024) information Net Sales 192,545 206,104 7.0% Gross Profit on Sales 111,842 123,494 10.4% Operating Income 30,085 35,825 19.1% （OP Margin） 15.6% 17.4% +1.8pt Non Operating Profit and Loss 2,158 -1,12
Slide 64: 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 65: Financial Strategy: 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 66: Financial Strategy: Lengthening term and 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 67: Financial Strategy: 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 68: 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) 68
Slide 69: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 69
Slide 70: 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 71: Global Operations: Global Net Sales
Global Operations | Global Net Sales (JPY billions) 9.8％ 9.0％ 8.9％ 8.5% Net sales 5.9% 5.7％ YoY 6.15 Global 5.90 Sales Ratio 5.20 5.04 2.84 3.01 4.0%Down 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
Slide 72: Internet Infrastructure
Internet Infrastructure 72 72
Slide 73: Internet Infrastructure: Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) YoY+29.3％ 5.60 4.33 3.35 2.84 2.34 2.58 2.93 YoY+22.5％ 2.39 1.83 1.82 1.73 1.55 Payment business -0.37 -0.33 -0.59 -0.74 Except payment business -0.40 -0.39 Cost allocation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 74: 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 record the revenues* 10,892 2,262 2,229 2,250 2,225 10,002 10,009 10,020 2,128 9,917 8,603 1,721 1,650 Q
Slide 75: 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 2019 2020 2021 2022 2023 2024 *Mobile and others indicated combined after FY23Q3 75
Slide 76: 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 2,635 2,470 10,178 2,379 2,132 1,994 8,177 1,945 6,895 7,045 6,867 6,714 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 77: Internet Infrastructure: Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 77
Slide 78: Internet Infrastructure: Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) Favorable demands in domestic and overseas 3,475 1,981 Renewal rate: 73.8%* 1,246 986 676 722 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2024 From FY24.Q3, the renewal rate cal
Slide 79: Internet Infrastructure: Hosting & Cloud KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,097 1,124 1,100 5,302 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 80: Group synergies case: ASP shopping cart x 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 81: 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 Changes in rules to plans are expandi
Slide 82: Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 128 YoY 123 119 119 111 7.5% UP 81 124 114 117 114 106 78 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 Ecommerce Platform 19 20 21 22 23 24 82
Slide 83: Internet Infrastructure: Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) 2.37M Number of e-contract accounts No.1 2.02 User companies ( extract ) 43%UP 1.66 YoY 20/4/15 0.91 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 Q4 Q1 19 20 2
Slide 84: Internet Infrastructure: Number of contracts
Internet Infrastructure | Number of contracts ( millions ) 4.19M 3.86 Number of contracts 48%UP No.1 YoY 2.83 1.48 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 20 21 22 23 24 84
Slide 85: Internet Infrastructure: ARR (Annual Recurring Revenue)
Internet Infrastructure | ARR (Annual Recurring Revenue)* (JPY billions) 1.40 1.00 0.65 40％UP 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 85
Slide 86: Internet Infrastructure: Achievements
Internet Infrastructure | Achievements Cyber Security Assessment More than 9,800 cases World's Largest More than largest contest No.1 contest in Japan No.1 120 white hat hackers No.1 enrolled *1: 2023 DEF CON 31 'Cloud Village CTF: World No.1 *2:Practical CAN Bus hacking CTF in 2017: No.1 in Japan *
Slide 87: Internet Infrastructure: Service usage
Internet Infrastructure | Service usage 87
Slide 88: 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 88
Slide 89: Payment processing: Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies through ‘contracts,’ ‘payment information,’ and ‘money flow’. GMO-PG Consumer Merchant consolidated Payment Company *1 subsidiaries 156,575stores 40+ Credit card companies (As of end of Sep 2024) EC Con
Slide 90: Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥18.7 trillion in the past 12 months Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 At the end of FY2024.9 FY2024. 7-9 Past 12-months FY2024.7-9 Past 12-months - 1.98 bn 7.40 bn ¥4.9 trn ¥18.7 trn
Slide 91: 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 84.1 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 59.9 % ＊3 No. 1 ASP Cart 48K paid stores Domestic market share at No.
Slide 92: Internet Finance
Internet Finance 92 92
Slide 93: Thai securities business: credit balance and non-performing loans
Thai securities business | The outstanding credit balance and the trend of non-performing loans Provision for doubtful accounts in Q3'24 was approximately 2.2 billion yen cumulative total of approximately 6.7 billion yen for Jan-Sep Residual risks related to non-performing loans Maximum risk amount:
Slide 94: Domestic FX volume and share transition
Internet Finance |Domestic FX volume and share transition Stable trading share 20％ or so USD／JPY （JPY trillion） Volatility Domestic trading volume Domestic share (Sum of 3 companies *1 (Sum of 3 companies) SHARE22.1%: At the end Sep 2024 Feb 2018 Aug 2024 *This information is prepared by GMO-FH acco
Slide 95: CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition ■Transaction （JPY trillion） ■Revenue （JPY million） Transaction volume YoY 51.5 %UP Profit YoY 21.1% UP Transaction increased、profit decreased Due to a tightening of spreads * Prepared based on GMO-Financial Holdings presentation materials 95
Slide 96: CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 6.3 %DOWN Stable balance Hit by Recent Volatility Losses * Prepared based on GMO-Financial Holdings presentation materials 96
Slide 97: 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 3.2%DOWN Trading volume down Commission fees decreased Q3’24 Stock Transaction Value：YoY
Slide 98: 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 99: Cryptoasset
Cryptoasset 99 99
Slide 100: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 100
Slide 101: Cryptoasset Exchange Business: Trading volume
Cryptoasset Exchange Business｜Trading volume (JPY Billion) YoY 192.1%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 102: 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 73 K UP Deposit Asset YoY 84.6%UP * Prepared based on GMO-Financial Holdings presentation materials 102
Slide 103: 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 104: GMO Aozora Net Bank
GMO Aozora Net Bank 104
Slide 105: Net Bank: Bank x IT
Net Bank Bank×IT Born in July 2018 Banking management know-how Technology 105
Slide 106: Net Bank: Vision
Net Bank | Vision GMO AOZORA NET BANK TNTELEBEEDKHO(K. SL F9/OY-NYIEAHLT All for our customers. Strive to be the No.1 Tech Bank. GMO 106
Slide 107: 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 107
Slide 108: Net Bank: Number of business accounts
Net Bank | Number of business accounts （Thousands） 156 142 125 1.5-fold 113 about 101 89 77 66 UP YoY 57 47 39 32 27 23 19 13 16 4 6 10 0 1 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 20 21 22 23 24 108
Slide 109: Net Bank: BaaS by GMO Aozora KPI
Net Bank |BaaS byGMO Aozora KPI Total number of contracted Embedded Financial service （per contract） 731 552 367 progress well 196 79 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20 21 22 23 24 109
Slide 110: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 110
Slide 111: Topics: Pioneering the Future with AI
—* Becoming the No.1 Corporate Grou Pioneering the Future with Al . 111
Slide 112: 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 113: 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 114: Established GMO-AIR Co.Ltd: Business Model
Established GMO-AIR Co.Ltd |Business Model Aiming of a lean, High-performance Organization that fully utilizes AI 114
Slide 115: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results ESG activities 115
Slide 116: 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 117: 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." 117
Slide 118: ESG activities: Sustainability management for SDGs
ESG activities ｜Sustainability management for SDGs Our business helps Social and environmental issues to be solved. ・ ・ ・ 118
Slide 119: 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 Plans to publish integrated report （September 2025.) In April 2024, GM
Slide 120: Internet for Everyone
Internet for Everyone 120 120