Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q1 2022 Earnings Presentation
92 slides from Gmo Internet's earnings presentation, May 12, 2022
Slide 1: Fiscal Year 2022 First Quarter Results Presentation
Fiscal Year 2022 First Quarter Results Presentation STOCK CODE: 9449 May 12, 2022 1
Slide 2: Changes in rules to record the revenues | Impact
Changes in rules to record the revenues* | Impact Net sales based on new rules (concept diagram) Net sales • Online Advertising & Media Net amount processing of ad spot purchase amount in advertising agency leads to an apparent drop • Infrastructure Limited impact is observed despite change from one
Slide 3: Changes in rules to record the revenues | Comparison with the same period last year
Changes in rules to record the revenues* | Comparison with the same period last year Affected divisions (consolidated, Infrastructure, Online Advertising & Media) ▶ Compared to the same period last year (old v.s. old) to show the actual conditions of the business ( Compared to the same period last y
Slide 4: 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. Strategic Efforts 4
Slide 5: Overview | Executive Summary: Q1 FY2022
Overview | Executive Summary: Q1 FY2022 Compared to the same period Old New Old last year (old v.s. old) Q1’21 Q1’22 Q1’22 YoY (JPY billions) Change (Jan-Mar) (Jan-Mar) (Jan-Mar) Change Net Sales 61.2 56.0 64.1 +2.9 +4.7% Operating Profit 12.4 11.1 11.1 -1.3 -10.8% Ordinary Profit 13.5 12.0 12.0 -1.
Slide 6: Overview | Executive Summary: Q1 FY2022
Overview | Executive Summary: Q1 FY2022 Net sales OP Up 2.9B YoY Down 1.3B YoY +0.9 +0.2 (JPY billions) Old (JPY billions) +0.5 +2.5 +1.5 64.1 +3.1 +0.7 * Old +0.3 Old 61.2 -4.7 12.4 Old New New +0.1 11.1+0.011.1 56.0 -3.8 -0.0 -8.0 Difference between Difference Q1‘21 Infrastructure Finance Ad Crypt
Slide 7: Overview | Executive Summary: Q1 FY2022
Overview | Executive Summary: Q1 FY2022 Compared to the same period last year (old v.s. old) Evaluation Services each hold top share in their respective markets Internet Net sales JPY 37.0B (Up 9.2% YoY) in Japan. Net sales and operating profit achieved a Record Infrastructure OP JPY 6.3B (Up 33.3%
Slide 8: 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. Strategic Efforts 8
Slide 9: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment Compared to the same period last (JPY billions) year (old v.s. old) 64.4 64.1 61.2 59.2 4.3 2.0 6.8 56.4 53.6 52.8 53.2 5.7 10.8 3.6 11.3 50.9 0.8 50.8 2.7 49.1 49.1 Revenue up 48.0 1.6 8.2 47.5 6.9 7.3 45.8 46.8 9.0 6.0 9.1 6.5 43.7 4.7% 41.8 7.4 7.9 6.7 13.
Slide 10: Financial Results | Profit by Segment
Financial Results | Profit by Segment Compared to the same period last (JPY billions) year (old v.s. old) 12.47 0.07 11.12* 10.46 0.25 0.31 0.15 4.02 10.14 0.43 1.24 Profit down 8.97 3.65 8.28 8.13 2.34 8.01 10.8% 1.91 0.44 6.51 0.42 1.48 3.85 5.95 0.42 3.10 0.88 5.26 1.56 0.01 3.81 6.09 2.12 0.67 5
Slide 11: 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 11
Slide 12: Overview | Shareholder Returns (dividend per share)
Overview | Shareholder Returns (dividend per share) (JPY) 52.7 12.6 Dividend increased 2.5 YoY 10.8 30.8 29.5 24.2 JPY 23.0 10.6 11.8 12.2 5.0 6.0 7.2 7.4 5.5 ■ Q4 6.0 ■ Q3 6.2 6.0 6.2 19.6 ■ Q2 6.0 17.1 ■ Q1 5.0 6.0 6.0 6.6 17 18 19 20 21 22 12
Slide 13: 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. Strategic Efforts 13
Slide 14: 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 Prime 271.6 3769 GMO Payment Gateway Prime 755.6 40.7% 307.6 7177 GMO Financial Holdings Standard 92.6 65.3% 60.4 4051 GMO Fina
Slide 15: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base 15.25M customers (Infrastructure and Finance) Up 1.78M 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 16: Group Overview | Strengths: Technology
Group Overview | Strengths: Technology 7,042 6,767 6,782 Goal: Workforce of 6,554 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 over 50% 5,767 5,758 5,670 5,691 5,454 5,275 5,278 5,316 5,080 49.3% engineers 45.5% 45.0% 44.2% 45.4% 44.8% Partners % Engineers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 17: 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. Strategic Efforts 17
Slide 18: Infrastructure | Change in certain subsegments
Internet Infrastructure | Change in certain subsegments Until Q4'21 From Q1‘22 Brand security Domain Domain Hosting & cloud Hosting & cloud Ecommerce solutions Ecommerce solutions Digital certificate and eSignature (New) Security Payment Payment Internet provider Internet provider * * Consolidated i
Slide 19: Infrastructure | (New) Security business comprises three areas
Internet Infrastructure | (New) Security business comprises three areas 1. Cryptosecurity 2. Cybersecurity *1 3. Brand security *2 *1: Consolidated in Q2 FY2022, affecting profit and loss. *2: Change of company name from GMO Brights Consulting (May 11). Transferred from the domain business. 19
Slide 20: 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 Domain Registrar 83.6 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 57.2 % ＊3 No. 1 ASP Cart 64K paid stores No. 1 Domestic market share
Slide 21: Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. old) 37.0 35.8 0.5 34.6 34.3 0.7 33.5 33.5 33.9 0.7 0.5 32.8 0.8 1.0 31.3 2.0 Record 1.3 28.4 28.5 29.6 1.7 12.0 12.3 +21.0% high 1.2 27.1 27.4 Revenue up 1.1 10.2 10.9 11.3 1.6 9.7 25.4
Slide 22: Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) 6.32 * 5.53 Record high 4.93 Profit up 4.67 4.74 33.3% 4.01 4.02 3.87 3.76 3.72 3.61 3.58 3.15 3.09 2.93 2.76 YoY 2.50 2.58 2.15 2.02 1.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 23: Infrastructure | Contracts
Internet Infrastructure | Contracts 12.88 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 8.97 9.09 8.71 8.76 8.75 Solid revenue base 12.88M customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 17 18 19 20 21 22 23
Slide 24: Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts User companies (extract) (thousands) 588 465 Increased 3.1-fold YoY 186 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 19 20 21 22 24
Slide 25: Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (thousands) 992 791 Increased 2.3-fold 434 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 19 20 21 22 25
Slide 26: Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by twelve local governments and groups was determined* Improve the efficiency of business with GMO Sign for Administrative Reform DX * As of May 2022 26
Slide 27: Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 131 128 122 117 118 119 119 111 Up 8.2% 83 85 80 81 77 78 77 72 74 73 67 68 68 YoY 122 113 80 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 17 18 19 20
Slide 28: 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. Strategic Efforts 28
Slide 29: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. old) 14.6 13.6 13.5 1.3 +41.4% 0.9 12.7 Record 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 high +30.2% 0.9 0.8 0.9 Revenue up 11.0 10.7 10.7 11.0 0.8 3.9 0.8 0.7
Slide 30: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) Record 0.88* high 0.64 Profit up 0.31 0.32 0.42 37.7% YoY 0.28 0.25 0.23 0.24 0.25 0.25 0.19 0.17 0.14 0.09 0.06 0.05 0.06 0.04 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 31: 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. Strategic Efforts 31
Slide 32: Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter Compared to the same period last 11.3 (JPY billions) year (old v.s. new) 10.7 9.1 9.0 Revenue up 31.2% 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.8 6.9 6.9 6.9 6.7 6.5 6.3 Profit up 6.0 5.5 Net 17.7% Sales 3.81 3.85 3.65 YoY 3.30 3.39 2.91 3.10 2.60 2.58 2
Slide 33: Finance | FX Trading Volume
Internet Finance | FX Trading Volume 516 363 296 340 309 No.1 market share in Japan 205 27.3% 24.8% 26.6% 22.2% 19.6% 19.9% 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 17 18 19 20 21 22 Prepared based on Results Presentation of GMO Financia
Slide 34: 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. Strategic Efforts 34
Slide 35: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 35
Slide 36: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales Compared to the same period last (JPY billions) 6.8 year (old v.s. new) 1.3 5.7 1.5 4.3 Revenue down 69.9% 3.6 0.8 2.6 2.6 2.7 YoY 5.4 1.6 2.3 1.8 2.1 0.6 2.0 1.2 1.2 4.1 1.6 1.2 1.2 0.6 1.5 1.4 0.2 0.8 0.4 1.0 0.2 0.9 0.8 2.1 2.0 ■ payment 0.6 1.4 0.7 0.2 1.7 1.4 0
Slide 37: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit Compared to the same period last 4.02 year (old v.s. new) (JPY billions) Profit down 2.34 1.48 1.24 96.0% YoY 0.67 0.53 0.42 0.42 0.38 0.25 0.21 0.10 0.08 0.15 -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 Q1 17
Slide 38: 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. Strategic Efforts 38
Slide 39: Structure of security industry
Structure of security industry 39
Slide 40: Cyberattacks became increasingly sophisticated
Social issues Cyberattacks became increasingly sophisticated 40
Slide 41: Security | Corporate slogan
Security | Corporate slogan Safe and Secure Internet for Everyone 41
Slide 42: Security | Three areas
Security | Three areas 1. Cryptosecurity 2. Cybersecurity *1 3. Brand security *2 *1: Consolidated in Q2 FY2022, affecting profit and loss. *2: Change of company name from GMO Brights Consulting (May 11). Transferred from the domain business. 42
Slide 43: 1. Cryptosecurity | Strength
1. Cryptosecurity | Strength Develops globally the only Japanese Certificate Authority 43
Slide 44: 2. Cybersecurity | Strength
2. Cybersecurity | Strength Japan's strongest white hat hacker organization 44
Slide 45: 3. Brand security | Strength
3. Brand security | Strength * Domain/trademark professionals protect company/service brands * Change of company name from GMO Brights Consulting (May 11) 45
Slide 46: Security: The only listed business group offering security solutions
Security The only listed business group that can offer solutions to security challenges 46
Slide 47: Internet for Everyone
Internet for Everyone 47 47
Slide 48: Next earnings announcement and forward-looking statements
We are planning on making an earnings announcement for FY2022 Second Quarter after 3 pm on August 9, 2022. This document includes projections based on expectations, premises and plans as of May 12, 2022. These projections may differ from actual results due to factors including changes in the global
Slide 49: Appendix
Appendix 49
Slide 50: Group Overview | Market Capitalization of the Group
Group Overview Prime 4 companies Standard 2 companies Growth 4 companies Market Capitalization of the Group JPY1.26trillion ※2022/5/11 50
Slide 51: 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 51
Slide 52: 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 52
Slide 53: Internet services operations
Internet services operations GMO-I(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Other 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 (stock code) 53
Slide 54: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment Compared to the same period last (JPY billions) year (old v.s. new) 64.4 56.0 61.2 59.2 4.3 8.1 6.8 56.4 53.6 52.8 53.2 5.7 3.6 11.3 50.9 0.8 50.8 2.7 2.0 Revenue down 49.1 49.1 8.2 47.5 48.0 1.6 6.9 7.3 45.8 46.8 9.0 6.0 9.1 10.7 6.5 43.7 8.5% 41.8 7.4 7.9 6
Slide 55: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO End of End of (JPY millions) Change Financial HD INTERNET 12/2021 3/2022 (End of 3/2022) (End of 3/2022) Current Assets 1,292,984 1,354,234 61,250 995,861 99,815 Cash & Deposits 240,136 289,057 48,921 82,546 67,567 Fixed Assets 125,952 133,250 7,297 29,108 99,677 G
Slide 56: Consolidated Profit and Loss
Consolidated Profit and Loss Q1'21 Q1'22 supplementary (JPY millions) Change (1-3/2021) (1-3/2022) information Net Sales 61,246 56,065 -8.5% Gross Profit on Sales 32,937 34,276 4.1% Operating Profit 12,479 11,128 -10.8% （OP Margin） 20.4% 19.8% -0.5pt Non Operating Profit and Loss 1,064 971 -8.7% Ord
Slide 57: Global Operations | Global Net Sales
Global Operations | Global Net Sales 9.2% (JPY billions) 5.81 7.1％ 6.5％ 6.1％ 4.84 5.04 5.17 Net sales 4.36 4.5% Global 4.0％ Sales Ratio YoY 3.42 3.20 2.98 2.97 3.07 18.5% UP 3.00 3.01 2.80 2.88 2.84 2.86 1.93 1.67 1.39 1.41 1.35 Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated subsi
Slide 58: 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 4,532 Depreciation and leases 40,000 10,602 1,786 2,848 2,860 3,678 Outsourcing costs 35,000 2,715 2,910 2,834 4,329 3,208 Communication costs 3,939 3,704 3
Slide 59: Internet Infrastructure
Internet Infrastructure 59 59
Slide 60: Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. new) 34.7 35.8 34.6 34.3 2.3 0.7 33.5 33.5 33.9 0.7 0.5 0.5 32.8 0.8 1.0 31.3 2.0 1.3 29.6 28.4 28.5 1.2 1.7 12.0 +17.4% 27.1 27.4 Revenue up 1.1 10.2 10.9 11.3 12.0 1.6 9.7 25.4 1.5 9.4
Slide 61: Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) Payment business 4.09 Other Cost distribution 3.45 2.68 2.60 2.19 1.75 1.33 1.76 1.69 1.63 1.06 1.11 -0.25 -0.27 -0.34 -0.34 -0.51 -0.42 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 17 18 19 20 21 22 61
Slide 62: Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 2,244 10,728 2,205 9,420 1,946 9,248 7,744 1,526 5,586 1,065 3,968 696 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 20
Slide 63: 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 2017 2018 2019 2020 2021 2022 63
Slide 64: Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 7,289 2,221 7,008 2,175 2,136 2,028 6,528 6,549 1,877 6,016 6,065 1,788 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017
Slide 65: Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 65
Slide 66: Infrastructure | Domain business progress: Registration
Internet Infrastructure | Domain business“ ”: Registration progress (thousands) 1,125 829 731 530 588 Renewal rate: 70.9%* 180 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 2020 2021 2022 * Renewal rate for domains registered between September 2016 and Septemberr 2020
Slide 67: Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,484 1,093 3,909 995 3,740 3,532 3,527 3,549 895 864 809 791 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 202
Slide 68: Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) Recurring revenue (ASP shopping cart) 4,032 71.5 69.3 68.2 65.4 64.6 3,559 63.8 3,250 3,038 2,379 2,146 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 69: 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 69
Slide 70: Infrastructure | Security business
Internet Infrastructure | Security business Sales progress by each product 2,500 2,000 1,500 Increasing security 1,000 management sales for Devices and Documents 500 0 2020Q1 Q2 Q3 Q4 2021Q1 Q2 Q3 Q4 2022Q1 ■ SSL ■ E-signature・Others※ ※ Sales of E-signature service, The client certification, E-contr
Slide 71: Infrastructure | 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 72: 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 Approvement by Certificate Verification by email Authority Less load of contractual Merit strict governan
Slide 73: Infrastructure | Payment processing - Overview
Internet Infrastructure | Payment processing - Overview Connecting merchants and payment companies on contracts, payment data and money flow Consumer Merchant Our Company Payment Company 134,096 stores ※1 40+ Credit card (end of March 2022) companies EC Convenience store BtoB・BtoC・CtoC Account trans
Slide 74: Infrastructure | Payment processing – KPIs
Internet Infrastructure | Payment processing – KPIs Group-wide annual TRX value reaches ¥9.5 trillion ※1 ※2 Operating stores: 134,096 stores, TRX volume approx. 1.15 bil., TRX value approx. ¥2.7 trillion. (10K transactions) (Stores) (¥Tr.) （Reference）Online payment: TRX volume approx. 1.07 bil., TRX
Slide 75: Internet Finance
Internet Finance 75 75
Slide 76: Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) 2,408 1,484 541 1,475 537 284 6,337 5,800 5,218 4,651 4,093 3,615 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 2017 2018 2019 2020 2021 2022 7
Slide 77: Finance | CFD margin deposit balance changes
Internet Finance | CFD margin deposit balance changes （Billion Yen） 700 70 63.5 635 600 60 55.5 555 Increased by 46.6 500 50 466 400 40 36.1 % YoY 300 30 200 20 100 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 * Prepared based on Results Presentation of GMO-FH 77
Slide 78: 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 79: Cryptoassets
Cryptoassets 79 79
Slide 80: Cryptoasset Exchange business | Number of accounts and deposit asset
Cryptoasset Exchange business | Number of accounts and deposit asset （thousand accounts） （Billion） 600 Client Asset(R) 顧客預り資産（右軸） 1,800 Accounts Accounts(L) 暗号資産口座数（左軸） 1,556 126 K Increased YoY 1,514 1,600 500 1,289 500 1,400 474 400 1,200 Deposit Asset 20.7% Increased YoY 374 1,000 300 800 200 600
Slide 81: Cryptoassets Exchange | Business model
Cryptoassets Exchange | Business model 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 82: GMO Aozora Net Bank
GMO AOZORA NET BANK 82 82
Slide 83: Net Bank | Number of business accounts
Net Bank | Number of business accounts (thousands) 39.2 32.1 27.3 Increased 2.0-fold 23.2 19.5 16.2 YoY 13.1 10.0 6.9 4.7 3.0 0.9 1.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 83
Slide 84: Net Bank | Number of bank API connection companies
Net Bank | Number of bank API connection companies 228 197 167 137 106 Strong trend 85 67 48 35 18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 84
Slide 85: Online Advertising & Media
Online Advertising & Media 85 85
Slide 86: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. new) 13.6 13.5 7.8 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 0.9 0.8 0.9 11.0 10.7 10.7 11.0 0.8 0.8 0.7 3.0 0.7 0.8 10.7 0.7 0.7 5.7 0.7 3.7 Revenue d
Slide 87: GMO-Research | Audience Engagement Platform
GMO-Research | Audience Engagement Platform Audience 3 Number of Engagement Consumer’s Voice increase Platform Client-side API Panel-side API Quality (Supply-side) Management 2 1 Client-side Panel-side API connection API connection increase increase * Prepared based on Presentation material of GMO-R
Slide 88: GMO-Research | Business Model
GMO-Research | 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 Tab
Slide 89: GMO-Research | What's happening in the Sample Panel Market
GMO-Research | 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
Slide 90: NFT
NFT 90 90
Slide 91: NFT marketplace
NFT marketplace • New released app optimized UI/UX for smartphones • Accessible NFT search, appreciation and secondary sales anytime, anywhere On 31st March, Released app for iOS・Android * Prepared based on Results Presentation of GMO-FH 91
Slide 92: Internet for Everyone
Internet for Everyone 92 92