Slide 1: Fiscal Year 2024 Second Quarter Results Presentation
Fiscal Year 2024 Second Quarter Results Presentation STOCK CODE: 9449 Aug 8, 2024 1
Slide 2: Overview, Strategy, Group Overview, Segment Report
１．Overview ２. Group Management Strategy ３．Group Overview ４．Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 2
Slide 3: Overview | Executive Summary: Q2 FY2024
Overview | Executive Summary: Q2 FY2024 Despite a strong performance in the infrastructure segment, overall results were flat year-on-year due to the sluggish Thai stock market. Q2‘23 Q2‘24 YoY ( JPY billions ) Change （Apr-Jun） （Apr-Jun） Change Net Sales 64.4 67.6 +3.1 ＋4.9％ Operating Profit 9.6 9.5
Slide 4: Overview | Executive Summary: Q2 FY2024 Evaluation
Overview | Executive Summary: Q2 FY2024 Evaluation Q2 Q1 Net sales JPY45.6B （Up 7.3％ YoY） • Overwhelmingly No.1 services, both settlement and non-settlement Internet well performed. Infrastructure JPY 9.4B （Up 57.3％ YoY） • OP Generated quarterly profit of ¥9 billion for three consecutive quarters. O
Slide 5: Overview | Executive Summary: Q2 FY2024
Overview | Executive Summary: Q2 FY2024 Net sales Operating Profit Up 3.1B YoY Down 0.05B YoY ( JPY billions ) ( JPY billions ) +3.1 +1.1 67.6 +3.4 +0.8 -0.3 -1.4 -0.1 9.6 +0.8 +0.2 9.5 +0.2 -0.3 64.4 -4.5 Q1‘ Infra Crypto Q1‘ Q1‘ Infra Crypto Q1‘ Finance Ad VC Other Finance Ad VC Other 23 structure
Slide 6: Overview | Executive Summary: H1 FY2024
Overview | Executive Summary: H1 FY2024 Q2‘23 Q2‘24 YoY （JPY billions） Change （Jan-Jun） （Jan-Jun） Change Net Sales 130.0 136.4 +64 +4.9％ Operating Profit 20.6 24.0 ＋33 ＋16.4％ Ordinary Profit 22.5 25.2 ＋27 +12.0％ Net Profit 6.3 7.7 ＋13 ＋21.7％ 6
Slide 7: Overview | 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 7
Slide 8: Overview | 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 at least over 33% 10.6 10.2 12.2 5.0 6.9 7.2 7.4 7.5 ■ Q4 ■ Q3 6.0 6.2 19.6 ■ Q2 17.1 17.2 12.2 ■ Q1 6.0 6.6 19 20 21 22 23 24 8
Slide 9: Overview | Shareholder Returns (repurchasing treasury stock)
Overview | Shareholder Returns (repurchasing treasury stock) Expansion of acquisition quota Up to JPY 5.0B(max.) Total cost of share acquisition （JPY2.59B increase from last time） Total number of shares to be Up to 2.9M shares (max.) acquired (they will be retired, +1.8M shares compared to last time
Slide 10: Overview, Group Management Strategy, Group Overview
1. Overview 2. Group Management Strategy 3. Group Overview 4. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 10
Slide 11: Group Management Strategy
Group Management Strategy 11
Slide 12: GMOism
CMO ism ~The most important things for us~ GMO i] Venture Spirit Declaration 55-year plan (SV-Declaration) au Qvalitat Management 4110 Key Values on Establishment of Management Objectives since 219 15110 Key Values for Achieving Objectives (EIGMO Style 10 Point Self-check to foster knowledge and imp
Slide 13: GMOism, Sharing and implement thoroughly
GMOism, Sharing and implement thoroughly Repeat and practice by all partners 13
Slide 14: GMOism | 55-year plan
GMOism | 55-year plan {55-year plan ative goal since 199¢ GMO INTERNET GROUP iss ea plan l May 20, 2024 editio '3 10 Key Values as Management (Eal sent to the al group members fron the CEO Kumagai in 1996 (rigina)] @ Life Planning 4/10 Key Values on Establishment of Management Objectives e 2019 1511
Slide 15: Super long-term Goal | 55-years plan
Super long-term Goal | 55-years plan Internal commitment set in 1998. （Trillion） Ordinary income 1.0 Initiatives for the Second Half of the Internet Revolution Achieve goals through sustainable growth 0.04 00 23 51 15
Slide 16: Industrial Revolution Waves
Industrial Revolution Waves In the latter half of the Internet revolution, AI takes center stage. 16
Slide 17: Transition to holding company structure
In the latter half of the Internet revolution. Transition to holding company structure. 17
Slide 18: Transition to holding company structure | Objectives
Transition to holding company structure | 3 Objectives ①Achievement of the 55-Years Plan ②Promote AI and Robotics Revolution ③Strengthen group management functions 18
Slide 19: Intra-group restructuring | scheme
Intra-group restructuring | scheme GMO Internet Group Inc. is going to be a holding company. GMO Ad Partners Inc. is going to change its name as GMO Internet Inc. ※2 present After the effective date GMO Internet Group Inc. GMO Internet Group Inc. （TSE Prime） （ TSE Prime ） Infrastructure Business Adv
Slide 20: Intra-group restructuring | synthesis effect
Intra-group restructuring | synthesis effect GMO GMO Internet Group’s AD Partners Inc. infrastructure business To attract customers No. 1 stock Marketing more strongly merchandises expertise 20
Slide 21: Become a general trading company of AI and robots
②Promote AI and Robotics Revolution Become a general trading company of AI and robots 21
Slide 22: Promote AI and Robotics Revolution | GMO AIR
②Promote AI and Robotics Revolution | GMO AIR AI and Robotics for Everyone 22
Slide 23: Become a group that will continue to win over the next century
Become a group that will continue to win over the next century 23
Slide 24: Strengths
Strengths 24
Slide 25: Strengths (1): Operations and development of our own technology
Strengths (1) Operations and development of our own technology 25
Slide 26: Strengths (1) | Operations and development of our own technology
Strengths (1) | Operations and development of our own technology Limited to hiring ※2 Advanced and AI Talent 7,525 7,438 7,431 7,317 7,361 7,393 7,396 7,133 7,213 Goal: Workforce of over 7,042 6,767 6,782 6,554 6,272 6,180 60% 6,001 6,058 5,995 6,012 5,958 6,048 5,758 50.0％ engineers & creators 48.9
Slide 27: Strengths (2): Solid recurring revenues
Strengths (2) Solid recurring revenues 27
Slide 28: Strengths (2) | Solid recurring revenue
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 28
Slide 29: Strengths (2) | Consolidated net sales
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 29
Slide 30: Strengths (2) | 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 31: Strengths (2) | Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 10.6K unit price*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 31
Slide 32: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts (millions) COVID-19 Impact period* +1.59 +0.72 -0.02 Solid recurring revenues base 1,506 +1.36 +0.17 1,374 1,456 1,326 15.06M 1,270 1,217 1,229 1,210 1,202 1,215 1,227 1,177 1,155 1,147 1,144 1,152 1,150 1,126 1,143 1,093 1,074 1,036 customers 995 Increased contra
Slide 33: Strengths (3): Risk diversification and independent management
Strengths (3) Risk diversification and independent management 33
Slide 34: Strengths (3) | 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 34
Slide 35: Strengths (3) | Risk diversification and independent management
Strengths (3) | Risk diversification and independent management Approx. 93 15.06M 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 36: Overview, Group Management Strategy, Group Overview
1. Overview 2. Group Management Strategy 3. Group Overview 4. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 36
Slide 37: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid recurring revenue base + financial customer base = 17.75M customers 15.06 million customers 2.05 million Accounts 620k Accounts Increased customers 2.50M YoY Internet Infrastructure Internet Finance + Cryptoassets increased 2.35M increased 0.15M
Slide 38: Group Overview | 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 39: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment (JPY billions) COVID-19 Impact period*² Changes in rules to record the revenues*¹ 69.4 68.8 67.6 64.6 65.5 64.4 66.0 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 Revenue up 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 10
Slide 40: Group Overview | Profit by Segment
Group Overview | Profit by Segment 19.84 (JPY billions) 14.43 0.44 0.95 12.47 12.38 0.08 11.12 10.99 3.52 10.53 2.55 9.57 Profit down 0.25 10.14 0.15 4.02 9.62 9.46 1.24 0.00 0.38 0.36 0.74 0.56 8.97 3.76 0.6% 8.28 8.13 8.01 3.65 7.06 0.01 3.83 3.60 1.48 3.85 2.97 5.95 0.66 3.10 2.68 3.81 6.09 0.92
Slide 41: Overview, Group Management Strategy, Group Overview
1. Overview 2. Group Management Strategy 3. Group Overview 4. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 41
Slide 42: Internet Infrastructure | Collection of No.1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 83.0 Strong No. 1 Domain Registry % ＊1 Domestic market share at Domain Registrar 83.5 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 58.9 % ＊3 No. 1 ASP Cart 50K paid stores Domestic market share at No.
Slide 43: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment COVID-19 Impact period*¹ (JPY billions) 45.6 Changes in rules to 44.3 45.0 1.2 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 34.6 34.3 0.7 34.7 0.8 33.5 33.5 33.9 0.7 0.5 0.5 17.5 18.0 17.8 Record Revenue up 32
Slide 44: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 9.59 9.44 9.21 Profit up 57.3% 6.99 6.28 6.00 6.12 5.53 5.58 5.36 YoY 4.93 4.67 4.74 4.75 3.87 4.01 4.02 3.61 3.58 3.76 3.72 3.09 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 44
Slide 45: Security | Slogan
Security | Slogan Safe and Secure Internet for Everyone 45
Slide 46: Security | Three areas
Security | Three areas 1. Encryption security 2. Cyber security 3. Brand security 46
Slide 47: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No.1 Number of contracts: No.1 47
Slide 48: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) 2.20M Number of e-contract accounts No.1 2.02 User companies ( extract ) Increased 50.3% up 1.46 YoY 0.73 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 49: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts 3.86M ( millions ) 3.65 Increased Number of contracts 55.9% up 2.47 No.1 YoY 1.21 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 49
Slide 50: Internet Infrastructure | ARR (Annual Recurring Revenue)
Internet Infrastructure | ARR (Annual Recurring Revenue)* (JPY billions) 1.29 0.95 Increased 0.58 35.9％ 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 50
Slide 51: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government * Adoption by 121 public bodies was determined Become No.1 in terms of the number of local governments introducing GMO Sign. Aim at triple crown. Excerpted list of Local governments: Tokyo Kanagawa Saitama Shizuoka Gunma Hokkaido Yamaguchi Oita Shibuya-ku
Slide 52: Internet Infrastructure | Cyber security strengthen structure
Internet Infrastructure ｜Cyber security strengthen structure Former Interpol cybercrime investigator, Daiki Fukumori joined Daiki Fukumori GMO Cybercrime Control Center (GC3) Graduated from the Faculty of Informatics, University of Tsukuba in 2002, and joined one of the largest security company in J
Slide 53: 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 53
Slide 54: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales COVID-19 Impact period*² (JPY billions) Changes in rules to record the revenues*¹ 136 135 Revenue down 9 127 12 120 123 124 8 120 115 113 118 9 113 9 8 2.2% 9 7 8 107 30 8 7 37 6 35 29 28 27 27 26 24 33 89 89 27 88 87 85 87 22 85 84 82 78 12 14 13 14 12 YoY 11
Slide 55: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 0.64 0.73 0.66 0.74 Profit up 57.3% 0.54 0.56 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 Q2 19 20 21 22 23 24 55
Slide 56: Overview, Group Management Strategy, Group Overview
1. Overview 2. Group Management Strategy 3. Group Overview 4. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 56
Slide 57: 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 10.8 10.3 10.5 10.0 9.1 9.0 7.4 7.9 8.2 Revenue down 11.5% YoY 7.3 6.7 6.9 6.3 6.5 6.0 Net And operating loss Sales 3.81 3.85 3.65 3.76 3.83 3.60 3.39 3.52 2.91 3.10 2.97 2
Slide 58: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) Revenue down 1,926 2,485 FX *¹ 22.1% YoY Revenue up 2,302 2,369 *² CFD 29.0% YoY 554 1,127 8,185 6,375 5,946 5,124 4,873 3,754 Securities and others CFDs / Stock Index Binary Options*² Currency-related over-the-counter derivatives*¹ Q1 Q2 Q
Slide 59: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume 840 Improved 616 profitability 533 through narrowing 339 of transaction volume 288 172 （Q4 FY22~) 8,185 6,375 5,946 5,124 ■ Net sales of OTC-FX/binary options (JPY millions) 4,873 3,754 ■ FX Trading volume (JPY trillions)* Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 60: Overview, Group Management Strategy, Group Overview
1. Overview 2. Group Management Strategy 3. Group Overview 4. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 60
Slide 61: Cryptoassets business | Historical Performance by Quarter
Cryptoassets business | Historical Performance by Quarter (JPY billions) COVID-19 Impact period*² 6.8 Revenue up 5.7 4.3 86.1% 3.6 YoY 2.7 Net 2.1 1.6 4.02 2.0 2.0 2.3 1.7 Profit up JPY 0.8B 1.5 1.4 1.4 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 0.21 0
Slide 62: Internet for Everyone
Internet for Everyone GMO
Slide 63: Next earnings announcement and disclaimer
We are planning on making an earnings announcement for FY2024 third Quarter after 3 pm on November 12th, 2024. This document includes projections based on expectations, premises and plans as of August 8, 2024. These projections may differ from actual results due to factors including changes in the g
Slide 64: Appendix
Appendix 64
Slide 65: Group Overview, Financial condition and strategy, Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 65
Slide 66: 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 67: 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) Other Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS GMO-FG：GMO FINANCIAL GATE GMO-TE：GM
Slide 68: 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 68
Slide 69: 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) 69
Slide 70: Group Overview, Financial condition and strategy, Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 70
Slide 71: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 65,000 60,000 55,000 Human resources 13,193 50,000 Advertising and promotion 12,227 12,506 12,766 13,433 45,000 Depreciation and leases 3,251 40,000 3,294 3,564 Outsourcing costs 4,086 3,671 3,880 4,162 4,067 35,000 4,231 4,217 5,451 Communication costs 4
Slide 72: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/23 6/2024 (End of 6/2024) (End of 6/2024) Current Assets 1,614,257 1,740,130 125,873 1,198,152 183,755 Cash & Deposits 393,452 417,368 23,915 89,912 122,185 Fixed Assets 143,379 184,911 41,531 37,
Slide 73: Consolidated Statement of income
Consolidated Statement of income Q2'23 Q2'24 supplementary (JPY millions) Changes (1-6/2023) (1-6/2024) information Net Sales 130,043 136,480 4.9% Gross Profit on Sales 75,743 81,481 7.6% Operating Income 20,618 24,010 16.4% （OP Margin） 15.9% 17.6% +1.7pt Non Operating Profit and Loss 1,918 1,227 -3
Slide 74: Financial Strategy: Asset management and Procurement
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 75: 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 76: 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 77: 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 78: 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) 78
Slide 79: Group Overview, Financial condition and strategy, Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 79
Slide 80: 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 81: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 11.0% 9.2％ 8.2％ 7.42 Net sales 7.4％ 6.4％ Global Sales Ratio 5.5% 5.12 5.93 YoY 4.84 3.07 2.86 25.2%UP Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated subsidiary. We deducted MacroKiosk values from net sales retroactively to Q1 FY2
Slide 82: Internet Infrastructure
Internet Infrastructure 82 82
Slide 83: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 6.79 YoY+21.6％ 5.58 4.38 3.63 YoY+168.6％ 3.12 3.43 2.42 1.85 1.95 1.68 1.59 1.27 -0.42 -0.40 -0.38 -0.64 -0.77 Payment business -0.85 Except payment business Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Cost
Slide 84: 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* 2,271 10,593 2,262 2,243 10,524 2,213 10,191 10,150 2,087 9,606 8,429 1,650 Q1 Q2 Q
Slide 85: Internet Infrastructure | 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 Q2 2019 2020 2021 2022 2023 2024 ※Mobile and others indicated combined after FY23Q3 85
Slide 86: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Overseas sales Changes in rules to and domestic record the revenues* demands are strong 2,590 10,016 2,388 2,244 2,144 2,179 2,020 7,585 6,920 7,084 6,704 6,573 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 87: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 87
Slide 88: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) Favorable in domestic and overseas sales 3,121 1,795 Renewal rate: 65.4%* 1,161 957 696 656 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024 * Renewal rate for domains registered b
Slide 89: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,115 1,114 5,348 1,095 5,048 1,025 4,569 917 866 3,946 3,726 3,610 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 90: 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 90
Slide 91: 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 Changes in rules to number of high-priced record the revenu
Slide 92: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 133 125 125 117 119 YoY 77 6.2% UP 128 119 118 112 113 74 Freenance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 SUZURI, Canvath minne 19 20 21 22 23 24 Ecommerce Platform 92
Slide 93: 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 94: 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 95: 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 ※1: 2023 DEF CON 31 'Cloud Village CTF: World No.1 ※2:Practical CAN Bus hacking CTF in 2017: No.1 in Japan ※
Slide 96: Internet Infrastructure | Service usage
Internet Infrastructure | Service usage 96
Slide 97: 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 97
Slide 98: 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 98
Slide 99: Internet Infrastructure | 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 consolidated Payment Company ※1 subsidiaries 155,671 stores 40+ Credit card companies (As of end of June 2024) EC Co
Slide 100: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥17.7 trillion in the past 12 months Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 At the end of FY2024.6 FY2024.4-6 Past 12-months FY2024.4-6 Past 12-months - 1.86 bn 7.09 bn ¥4.7 trn ¥17.7 trn
Slide 101: Online Advertising & Media
Online Advertising & Media 101 101
Slide 102: 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 103: 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 104: Internet Finance
Internet Finance 104 104
Slide 105: Thai securities business | credit balance and non-performing loans
Thai securities business | The outstanding credit balance and the trend of non-performing loans Margin trading service to be terminated in December 2024. Debt collection efforts to be pursued with full force Residual risks related to non-performing loans After the incident in the Thai securities mar
Slide 106: Internet Finance | 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) SHARE19.2%: At the end June 2024 Feb 2018 March 2024 ※This information is prepared by GMO-FH ac
Slide 107: Internet Finance | CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition ■Transaction （JPY Trillion） ■Revenue （JPY Million） Transaction volume YoY 10.9 %UP Profit YoY 33.2% UP Transaction and profitability increased * Prepared based on GMO-Financial Holdings presentation materials 107
Slide 108: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 5.8 %Down Slight decrease YoY but Increased QoQ * Prepared based on GMO-Financial Holdings presentation materials 108
Slide 109: Internet Finance | Stock brokerage commission and rate transition
Internet Finance｜Stock brokerage commission and the rate transition （JPY million） 株式委託手数料 ■Stock Brokerage 株式委託手数料率 Rate Commission Rate ■Commission （百万円） （bp） (bp) (bp) commission (Million Yen) Stock Brokerage Commission YoY 17.2%Down Trading volume declined and the commission fees also decreased Q
Slide 110: 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 111: Cryptoasset
Cryptoasset 111 111
Slide 112: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 112
Slide 113: Cryptoasset Exchange Business | Trading volume
Cryptoasset Exchange Business｜Trading volume (JPY Billion) YoY 99.6%UP Trading volume increased YoY due to the rise of cryptocurrency prices, especially Bitcoin. ※Regarding market share, the market's trading volume is based on the data published by the Japan Cryptocurrency Exchange Association, whil
Slide 114: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition （JPY Billion） （thousand accounts） ■Client Asset ■Cryptoasset Accounts under Custody accounts YoY 70 K UP Deposit Asset YoY 88.7%UP * Prepared based on GMO-Financial Holdings presentation materials 114
Slide 115: 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 116: GMO Aozora Net Bank
GMO Aozora Net Bank 116
Slide 117: Net Bank | Bank × IT
Net Bank Bank×IT Born in July 2018 Banking management know-how Technology 117
Slide 118: 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 118
Slide 119: 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 119
Slide 120: Net Bank | Number of business accounts
Net Bank | Number of business accounts （Thousands） 142 125 1.6-fold 113 101 77 89 about 66 57 32 39 47 UP YoY 27 23 19 16 13 10 4 6 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 19 20 21 22 23 24 120
Slide 121: Net Bank | BaaS by GMO Aozora KPI
Net Bank |BaaS byGMO Aozora KPI Total number of contracted Embedded Financial service （per contract） 679 506 322 progressing well 158 59 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 20 21 22 23 24 121
Slide 122: Group Overview, Financial condition and strategy, Consolidated results
Group Overview Financial condition and strategy Consolidated results Topics ESG activities 122
Slide 123: Topics
—* Becoming the No.1 Corporate Grou Pioneering the Future with Al . 123
Slide 124: 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 125: 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 126: Established GMO-AIR Co.Ltd | Business Model
Established GMO-AIR Co.Ltd |Business Model Aiming for a lean, High-performance Organization that fully utilizes AI 126
Slide 127: Group Overview, Financial condition and strategy, ESG activities
Group Overview Financial condition and strategy Consolidated results ESG activities 127
Slide 128: 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 129: 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." 129
Slide 130: ESG activities | Sustainability management for SDGs
ESG activities | Sustainability management for SDGs Our business helps Social and environmental issues to be solved. ・ ・ ・ 130
Slide 131: 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 132: Internet for Everyone
Internet for Everyone GMO