Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — FY2021 Earnings Presentation
96 slides from Gmo Internet's earnings presentation, Feb 10, 2022
Slide 1: Fiscal Year 2021 Results Presentation
Fiscal Year 2021 Results Presentation STOCK CODE: 9449 February 10, 2022 1
Slide 2: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 2
Slide 3: Overview | Executive Summary: FY2021
Overview | Executive Summary: FY2021 YoY (JPY billions) FY20 FY21 Change Change Record Net Sales 210.5 241.4 +30.8 +14.7% high Record Operating Profit 27.8 41.0 +13.2 +47.3% high 43.3 Record Ordinary Profit 27.1 +16.2 +59.9% high Net Profit 10.2 17.5 +7.2 +70.4% Record high 3
Slide 4: Overview | Executive Summary: FY2021
Overview | Executive Summary: FY2021 FY21 Internet Net sales JPY 138.7B (Up 5.7% YoY) Maintain high growth rate based on a solid revenue Record Infrastructure OP JPY 19.2B (Up 18.1% YoY) base. Investment in GMO Sign. high Online Ad & Net sales JPY 52.0B (Up 11.1% YoY) Internal measures were effectiv
Slide 5: Overview | Financial Results for FY2021
Overview | Financial Results for FY2021 Record Net Sales Operating Profit high Up 14.7% YoY Up 47.3% YoY 41.09 (JPY billions) 241.4 (JPY billions) 9.09 210.5 196.1 185.1 33.8 27.89 30.8 25.27 0.76 28.5 21.78 2.53 11.71 154.2 30.7 52.0 1.22 0.95 135.0 46.8 10.61 26.3 17.01 17.64 1.18 46.8 8.51 46.7 1
Slide 6: Overview | Executive Summary: FY2021
Overview | Executive Summary: FY2021 Net sales OP 241.4 Up 30.8B YoY +13.9 +0.5 +0.6 Up 13.6B YoY +8.3 +0.6 41.0 (JPY billions) (JPY billions) -0.6 +5.2 +3.0 +7.4 +0.7 +1.0 210.5 +2.9 27.8 FY20 Infrastructure Finance Ad Cryptoassets VC Other FY21 FY20 Infrastructure Finance Ad Cryptoassets VC Other
Slide 7: Overview | Shareholder Returns (Policy)
Overview | Shareholder Returns (Policy) Total Shareholder Dividend Payout Ratio Share Buyback Returns Ratio 50% Over 33% 17% Quarterly dividend Net profit at end of fiscal 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 Dividend increased 21.0 23.0 29.5 24.2 30.8 JPY 21.9 YoY Q1 17.10 Q2 12.20 Q3 10.80 Q4 12.60 16 17 18 19 20 21 8
Slide 9: Overview | Shareholder Returns (treasury stock acquired/retired)
Overview | Shareholder Returns (treasury stock acquired/retired) c.f. press release dated July 30, 2015, entitled “Notice of Revision to Shareholder Returns Policy with Long Term Share Buyback Plan” Long-term aim 38.35M shares Acquired 10.04M shares (progress: 26.2%) Retired 5.91M shares (progress:
Slide 10: Overview | Shareholder Returns (total shareholder returns)
Overview | Shareholder Returns (total shareholder returns) (JPY billions) ■ Acquisition amount of our own stock (not yet retired) ■ Acquisition amount of our own stock (retired) 9.34 Total acquisition 6.17 amount of our own 6.17 stock : 19.7B To be retired 3.10 JPY 2.23 2.01 1.90 1.18 3.16 0.00 16 1
Slide 11: Overview | Shareholder Returns (acquisition of treasury stock)
Overview | Shareholder Returns (acquisition of treasury stock) Total cost of share acquisition Up to JPY 5B Total number of Up to 3M shares (to be retired) shares to be acquired 2.73% of shares issued (as of December 2021) Acquisition period February 15, 2022, through to February 10, 2023 11
Slide 12: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 12
Slide 13: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment (JPY billions) 64.4 61.2 59.2 4.3 6.8 56.4 53.6 52.8 53.2 5.7 3.6 11.3 50.9 1.4 0.8 50.8 2.7 49.1 49.1 8.2 47.5 48.0 1.6 6.9 7.3 45.8 46.8 2.1 1.5 1.0 9.0 6.0 9.1 Revenue up 6.5 43.7 41.8 7.4 7.9 6.7 7.5 6.3 13.5 38.2 38.0 21.1% 7.4 13.6 12.7 12.0 8.1 7.5 12.
Slide 14: Financial Results | Profit by Segment
Financial Results | Profit by Segment (JPY billions) 12.47 10.46 0.31 4.02 10.14 0.43 1.24 8.97 6.51 1.91 8.28 8.13 0.44 2.34 8.01 Profit up 94.7% 0.42 1.48 3.85 5.95 0.42 3.10 5.26 1.56 3.81 6.09 0.67 2.12 5.65 5.53 4.46 5.37 5.00 5.34 0.38 3.39 0.21 5.03 0.25 0.10 2.62 4.49 0.53 2.91 0.08 0.64 0.4
Slide 15: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 15
Slide 16: Group Overview | Listed Group Companies: Equity Share
Group Overview | Listed Group Companies: Equity Share Market Cap*1 Equity Share Stock Code Stock Name Exchange % Ownership*2 (JPY billions) (JPY billions) 9449 GMO Internet TSE1 289.2 3769 GMO Payment Gateway TSE1 786.2 40.7% 320.1 7177 GMO Financial Holdings TSE JQS 98.1 65.4% 64.1 4051 GMO Financi
Slide 17: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base 14.96M customers (Infrastructure and Finance) Up 1.68M YoY *Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions. *Number of customers is an aggregate number of customers (the actual number
Slide 18: Group Overview | Strengths: Technology
Group Overview | Strengths: Technology Goal: Workforce of 6,767 6,840 6,554 6,272 over 50% 6,180 6,001 6,058 5,995 6,012 5,958 6,048 5,670 5,691 5,767 5,758 5,454 5,275 5,278 5,316 5,156 5,156 5,080 engineers 4,876 4,633 47.7% 45.8% 46.4% 45.6% 45.5% 44.2% All partners (excluding the directors and p
Slide 19: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 19
Slide 20: Internet Infrastructure | Collection of No.1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 82.5 Strong No. 1 Domain Registry % *1 Domestic market share at Strong No. 1 Domain Registrar 82.5 % *2 Domestic market share at No. 1 Hosting & Cloud 57.0 % *3 No. 1 eSignature 465K accounts No. 1 ASP Cart 63K paid stor
Slide 21: Internet Infrastructure | Full-year results trends
Internet Infrastructure | Full-year results trends Record high Net Sales: Up 5.7% YoY Operating Profit: Up 18.1% YoY (JPY billions) (JPY billions) 138.7 131.2 2.8 19.23 6.2 114.0 16.28 5.5 44.5 100.8 37.4 14.06 6.2 84.6 33.3 7.1 5.3 6.3 11.44 29.0 14.8 16.6 65.4 6.3 24.3 8.47 3.8 5.9 11.8 15.1 16.1
Slide 22: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 35.8 34.6 34.3 0.7 33.5 33.5 33.9 0.7 0.5 32.8 +23.3% 0.8 1.0 31.3 2.0 1.3 29.6 Revenue up 1.7 28.4 28.5 1.2 12.0 27.1 27.4 1.6 1.1 9.7 10.2 10.9 11.3 25.4 1.2 1.5 9.4 8.8 6.8% 24.8 23.3 23.3 1.8 1.4 9.0 9.3 +39.2% 8.0 8.4 1.3 1.6 21.
Slide 23: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 5.53 4.93 4.67 4.74 Profit up 4.01 4.02 3.87 3.76 3.72 3.61 3.58 48.5% 3.15 3.09 2.93 2.76 2.50 2.58 YoY 2.15 1.96 2.02 1.80 1.59 1.65 1.39 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16 17 18 19 20 21 23
Slide 24: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts 12.63 12.11 (millions) 11.58 11.71 11.72 11.43 11.55 11.51 11.26 10.92 10.73 10.35 9.94 9.60 9.27 8.96 8.97 9.09 8.60 8.71 8.76 8.75 8.34 Solid revenue base 7.88 12.63M customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16 17 18 19 2
Slide 25: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts User companies (extract) (thousands) 465 Increased 334 3.3-fold YoY 140 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 25
Slide 26: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (thousands) 791 671 Increased 365 2.2-fold YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 26
Slide 27: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government 98 municipalities are participating in the demonstration experiment 27
Slide 28: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 131 122 117 118 119 119 Up 111 64 67 65 72 67 68 68 77 72 74 73 80 78 77 81 83 85 6.6% YoY 125 118 Freenance SUZURI, Canvath minne Ecommerce Platform Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 29: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 29
Slide 30: Online Advertising & Media | Full-year results trends
Online Advertising & Media | Full-year results trends Net Sales: Up 11.1% YoY Operating Profit: Up 181.1% YoY (JPY billions) (JPY billions) 52.0 1.29 46.7 46.8 46.8 4.0 1.18 44.1 44.0 3.1 3.2 3.3 2.9 3.1 13.6 0.97 12.0 11.0 10.3 14.4 12.6 0.76 0.54 0.42 32.4 33.1 34.3 31.5 ■ Internet Research/Other
Slide 31: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales (JPY billions) 13.6 13.5 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 11.5 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 0.8 11.1 11.1 11.0 10.7 10.7 11.0 0.9 0.9 0.7 0.8 3.0 0.7 0.8 0.7 10.7 0.7 +36.1% 10.3 0.6 0.7 0.8 Revenue up 0.7 0.7 3.7 0.7 0.8 0.6 0.7 2.8
Slide 32: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.64 Strategic investment 0.44 0.41 0.42 520M 0.31 0.32 0.28 JPY 0.25 0.24 0.25 0.25 0.23 0.21 0.20 0.19 0.17 0.14 0.09 0.06 0.05 0.06 0.04 Investment in the promotion of: -0.05 - GMO Media (JPY 270 M); and -0.13 - GMO TECH (JPY 250 M). Q1
Slide 33: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 33
Slide 34: Internet Finance | Full-year results trends
Internet Finance | Full-year results trends Record high Net Sales: Up 9.9% YoY Operating Profit: Up 10.3% YoY (JPY billions) (JPY billions) 33.8 11.71 30.7 30.8 28.5 10.75 10.61 27.3 26.3 9.62 8.51 7.98 16 17 18 19 20 21 16 17 18 19 20 21 34
Slide 35: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter (JPY billions) 11.3 9.1 9.0 Revenue up 86.7% 8.1 8.2 7.8 7.9 7.5 7.4 7.5 7.4 7.3 6.7 6.7 6.8 6.9 6.9 6.7 6.9 6.5 6.3 Profit up 6.0 6.0 5.5 Net 136.4% Sales 3.81 3.85 YoY 3.31 3.30 3.39 2.91 3.10 2.60 2.58 2.62 2.24 2.35 2.33 2.26 2.31 2.07 2.05 2.
Slide 36: Internet Finance | FX Trading Volume
Internet Finance | FX Trading Volume 443 No.1 393 351 market share in Japan 213 for the 10th 206 173 consecutive year and 26.5% 27.0% worldwide for the 24.3% 22.7% 21.2% 20.9% 2nd consecutive year Trading volume (JPY trillions) Share (%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 37: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 37
Slide 38: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment business ┗Issue stablecoin 38
Slide 39: Cryptoassets business | Full-year results trends
Record Cryptoassets business | Full-year results trends high Net Sales: Up 206.6% YoY Operating Profit: Up 1,081.8% YoY (JPY billions) (JPY billions) 9.09 20.6 8.2 6.7 0.95 6.0 0.76 0.20 0.8 -1.36 17 18 19 20 21 17 18 19 20 21 39
Slide 40: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales (JPY billions) 6.8 1.3 5.7 1.5 4.3 Revenue up 2.6 2.6 2.7 3.6 0.7 57.4% YoY 5.4 1.6 1.8 2.3 0.6 2.1 1.2 1.2 4.1 1.6 1.2 0.6 1.5 1.4 1.2 0.2 0.4 1.0 0.2 0.9 0.8 2.1 2.0 ■ payment 0.7 0.2 1.7 0.6 1.4 1.3 1.4 0.2 1.4 ■ mining 0.8 0.4 1.0 1.0 0.8 1.2 0.5 0.6 ■ exchange
Slide 41: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit (JPY billions) 4.02 Profit up 2.34 JPY1.02 B YoY 1.48 1.24 despite actively 0.53 0.25 0.67 0.42 0.42 0.38 making investments in GMO Coin 0.10 0.21 0.08 -0.07 -0.23 -0.22 -0.26 -0.73 -0.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 17 18 19 20 21
Slide 42: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 42
Slide 43: Changes in rules to record the revenues
Changes in rules to record the revenues* Net sales images based on new rules in FY2021 • Online Advertising & Media Net amount processing of ad spot purchase amount in advertising agency is expected to lead to an apparent drop in net sales • Infrastructure Limited impact is observed despite change f
Slide 44: Board and executive officer system changes
Introduced group executive officer system Officers to be disclosed soon Dividing/strengthening the Scale back the Board. management decisions/ Increase the share of external directors. oversight function and the execution of business 44
Slide 45: Sustainability management | Contribute to SDGs
Sustainability management | Contribute to SDGs Various businesses enable GMO Internet Group to contribute to resolving social and environmental issues ・ ・ ・ 45
Slide 46: Sustainability management | Disclosure
Sustainability management | Disclosure ◼ Released initiatives on SDGs ◼ Developed Sustainability Basic Policy 2021 ◼ Established Sustainability Promotion Committee ◼ Updated corporate governance report Prioritize more ◼ Introduced group executive officer system ESG disclosure At this moment ◼ More E
Slide 47: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets 4. Topics 5. Strategic Efforts 6. Conclusion 47
Slide 48: Full-scale entry into cybersecurity business
Full-scale entry into cybersecurity business 48
Slide 49: Bh | MY
Bh | MY fal Ab banneae ui
Slide 50: Japan's leading white hat hacker organization
Ierae Security, Inc. joined the Group Japan's leading white hat hacker organization 50
Slide 51: Synergies: No.1 service with security
Synergies No. 1 service with security 51
Slide 52: Conclusion
GMO Conclusion 52
Slide 53: FY2022 Outlook
FY2022 Outlook Existing No. 1 products are expected to see two-digit growth in Internet FY2022. GMO Sign establishes the position of the market leader. Work on Infrastructure generating synergies between infrastructure and cybersecurity businesses and our position will be unmatched by any other comp
Slide 54: Internet for Everyone
Internet for Everyone 54 54
Slide 55: Next earnings announcement and forward-looking statements
We are planning on making an earnings announcement for FY2022 First Quarter after 3 pm on May 12, 2022. This document includes projections based on expectations, premises and plans as of February 10, 2022. These projections may differ from actual results due to factors including changes in the globa
Slide 56: Appendix
Appendix 56
Slide 57: Group Structure by each segment (1/2)
Group Structure by each segment(1/2) GMO-AP (4784) GMO-I(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) Other Other Listed subsidiaries 57
Slide 58: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO CLICK Securities GMO-I(9449) GMO-FH GMO-FH Internet Finance (7177) Gaika ex byGMO Cryptoassets (7177) GMO Coin Other Other Incubation Other Listed subsidiaries 58
Slide 59: Internet services operations
Internet services operations GMO-I(9449) Digital certificate GMO-GSHD (3788) and eSignature Domain GMO-PB (3633) Other GMO-PG (3769) GMO-I Payment GMO-FG (4051) GMO-GSHD (3788) Hosting & cloud Other GMO-PB (3633) Other Provider GMO-I GMO-PB (3633) E-commerce solutions Listed subsidiaries Other (stoc
Slide 60: Consolidated results transition
Consolidated results transition Increased sales and profits in 13 consecutive term Sales 241.4 Profit 41.09 (JPY billion) 20.6 (JPY billion) 210.5 196.1 6.7 33.8 9.09 185.1 6.0 30.8 28.5 27.89 154.2 25.27 30.7 52.0 0.76 46.8 21.78 2.53 11.71 135.0 126.3 26.3 46.8 10.61 109.3 27.3 46.7 17.01 17.64 8.
Slide 61: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO End of End of Financial HD INTERNET (JPY millions) Change 12/2020 12/2021 (End of (End of 12/2021) 12/2021) Current Assets 1,005,226 1,292,984 287,757 967,276 75,223 Cash & Deposits 220,745 240,136 19,390 66,018 48,096 Fixed Assets 65,318 125,952 60,634 28,772 89,9
Slide 62: Consolidated Profit and Loss
Consolidated Profit and Loss supplementary (JPY millions) FY2020 FY2021 Change information Net Sales 210,559 241,446 14.7% Gross Profit on Sales 105,675 128,815 21.9% Operating Profit 27,893 41,097 47.3% （OP Margin） 13.2% 17.0% +3.9pt 20.Q4 Foreign exchange loss JPY -0.65B Non Operating Profit and L
Slide 63: Consolidated Cash flow
Consolidated Cash flow GMO-FH (JPY billions) FY20 FY21 Significant Factors （Jan.-Dec.) Operating Cash Flow +38.2 -23.7 Corporate tax payment: -14.5B (-4..8B in FY2020) -32.5 Purchase of tangible and intangible fixed assets: -8.4B (-7.4B in FY2020) Investing Cash Flow -15.9 -51.7 Acquisition of subsi
Slide 64: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 9.0% Net sales 5.81 6.4％ 6.3％ 6.4％ 4.84 5.04 Global 4.36 YoY Sales Ratio 4.1％ 4.2% 69.7% UP 3.42 3.20 2.98 2.97 3.07 3.00 3.01 2.80 2.88 2.84 2.86 1.93 Net 1.66 1.67 Sales 1.44 1.39 1.41 1.35 Since Q2 FY2020, MacroKiosk is no longer a 1.09 1.14 con
Slide 65: Cost Composition (Consolidated)
Cost Composition (Consolidated) (JPY millions) 60,000 55,000 50,000 Human resources 10,189 Advertising and promotion 45,000 10,635 9,997 10,147 10,035 4,532 Depreciation and leases 40,000 1,786 2,848 2,860 3,678 Outsourcing costs 2,695 35,000 2,715 2,910 2,948 2,834 4,329 Communication costs 3,939 3
Slide 66: Internet Infrastructure
Internet Infrastructure 66 66
Slide 67: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 4.10 Payment business Other 3.63 Cost distribution 3.45 3.12 3.04 2.84 2.68 2.58 2.42 2.34 2.19 2.08 2.08 1.75 1.73 1.58 1.63 1.63 1.68 1.95 1.88 1.40 1.76 1.83 1.82 1.26 1.20 1.33 1.69 1.56 1.59 1.55 1.07 1.07 1.46 0.87 1.38 1.3
Slide 68: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 11,043 2,230 2,152 9,825 8,841 1,801 7,333 1,381 5,205 3,653 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016
Slide 69: Internet Infrastructure | Provider - KPIs (number of lines)
Internet Infrastructure | Provider - KPIs（number of lines) Optical line (Since July 2021) Others Mobile Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 2021 69
Slide 70: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 2,718 7,197 7,069 6,586 2,345 6,406 2,255 6,014 6,114 2,138 2,132 1,910 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 71: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 71
Slide 72: Internet Infrastructure | Domain business: Registration progress
Internet Infrastructure | Domain business“ ”: Registration progress (thousands) 1,049 986 957 829 792 731 722 696 676 669 656 614 637 603 588 539 530 Renewal rate: 71.2%* 328 228 180 111 71 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 2021 * Renewal rate
Slide 73: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,226 1,070 3,881 3,604 3,602 960 3,554 3,511 857 872 801 782 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 74: 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 74
Slide 75: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other 4,262 Transaction revenue (minne・SUZURI) Recurring revenue (ASP shopping cart) 3,973 70.8 68.9 69.1 66.2 63.9 64.6 3,019 2,985 2,448 2,299 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 76: Internet Infrastructure | Digital Certificate and eSignature business
Internet Infrastructure | Digital Certificate and eSignature business The number of SSL valid digital certificates 【 】 ■ Overseas ■Domestic 149万枚 (millions) 2020Q2 Q3 Q4 2021Q1 Q2 Q3 Q4 * The number of valid digital certificates is the number of certificates that are actually used. Prepared based on
Slide 77: Internet Infrastructure | Digital Certificate and eSignature business
Internet Infrastructure｜Digital Certificate and eSignature business Having our own Certificate Authority, we can provide both of types ◆E-sign ◆Digital-Sign Proof strength ◎ ○ (Electronic Signature Law Article 3) Process Approvement by Certificate Verification by email Authority Less load of contrac
Slide 78: Internet Infrastructure | Payment processing - Overview
Internet Infrastructure | Payment processing - Overview Connecting merchants and payment companies on contract, payment data and money flow Consumer Merchant Our Company Payment Company 129,659 stores ※1 40+ Credit card (end of Dec 2021) companies EC Convenience store BtoB・BtoC・CtoC Account transfer
Slide 79: Internet Infrastructure | Payment processing - KPIs
Internet Infrastructure | Payment processing - KPIs Group-wide annual TRX value reaches ¥8.7 trillion ※2 ※1 Operating stores: 129,659 stores, TRX volume approx. 1.12 bil., TRX value approx. ¥2.6 trillion. (10K transactions) (Stores) (¥100 Mil.)（Reference）Online payment: TRX volume approx. 1.04 bil.,
Slide 80: Internet Finance
Internet Finance 80 80
Slide 81: Internet Finance | Net sales by product
Internet Finance | Net sales by product (JPY millions) 1,635 380 857 525 365 7,640 1,068 4,824 4,661 4,353 4,449 3,154 Securities and others CFDs / Stock Index Binary Options OTC-FX / Binary Options Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 2021
Slide 82: Internet Finance | FY21Q4: FX, CFD, and Securities KPIs
Internet Finance | FY21Q4 : FX, CFD, and Securities KPIs (JPY millions) FX CFD Securities Trading Volume Trading value Trading value JPY 443 tr JPY 15.7 tr JPY 2.9 tr Q4 FY2020: JPY 393tr Q4 FY2020: JPY 9.8tr Q4 FY2020: JPY 3.0tr Share of Trading Account Share of Trading Volume Value 27.0 % 164 K 3.
Slide 83: 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 ● ● ● Foreign ● ● ● exchange risk Cover order Method (1) ● ● ● Existing coun
Slide 84: Cryptoassets
Cryptoassets 84 84
Slide 85: Cryptoasset Trading | Trading value and customer accounts
Cryptoasset Trading | Trading value and customer accounts 474 444 Trading value (JPY billions) Customer accounts (thousands) 11,575 341 299 8,121 8,062 225 5,007 5,152 4,687 4,177 3,142 3,018 2,680 2,618 2,003 1,283 1,449 524 643 535 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018
Slide 86: Business Model | Cryptoassets Exchange
Business Model | Cryptoassets Exchange OTC Trading Exchange Trading Hedging counter part positions Offering the order matching platform by cover order Liquidty Provider Customer Broker Trading Cover order Trading BUY Exchange SELL Main income：Spread Main income：Transaction fee （buy and sell spread）
Slide 87: GMO AOZORA NET BANK
GMO AOZORA NET BANK 87 87
Slide 88: Net Bank | Number of business accounts
Net Bank | Number of business accounts (thousands) 32.1 27.3 23.2 Increased 2.0-fold 19.5 16.2 13.1 10.0 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 88
Slide 89: Net Bank | Number of bank API connection companies
Net Bank | Number of bank API connection companies 197 167 137 Growing as bank API’s front runner 106 85 67 48 35 18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 89
Slide 90: TOPICS
TOPICS 90 90
Slide 91: GMO-RESEARCH
GMO-RESEARCH 91 91
Slide 92: GMO-RESEARCH Business Model
Business Model Standardization of low-cost internet research tools which were previously developed on a per-company basis Survey Tabulation Past Creation /Analysis Each company’s own system Research Survey Distribution Company A Panel Company A Data Collection Company’s own Survey Tabulation Creatio
Slide 93: What's happening in the Sample Panel Market
What’s happening in the Sample Panel Market ・Established Market Research companies continue to outsource online sample management ・Marketers easily perform lite research with panels (consumers) with Self Service Platforms ・API connections with other sample panel providers using lite research platfor
Slide 94: NFT
NFT 94 94
Slide 95: NFT marketplace
NFT marketplace Launched beta version (on August 31 ‘21) Launch official version (in December ‘21) * Prepared based on GMO-FH presentation materials. 95
Slide 96: Internet for Everyone
Internet for Everyone 96 96