Slide 1: Fiscal Year 2023 Results Presentation
Fiscal Year 2023 Results Presentation STOCK CODE: 9449 February 13, 2024 1
Slide 2: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 2
Slide 3: Overview | Executive Summary: FY2023
Overview | Executive Summary: FY2023 Revenue grows for 15th consecutive year, driven by core businesses Net profit increased YoY ( JPY billions ) FY22 FY23 Change Change Net Sales 245.6 258.6 +12.9 +5.3% Record high Operating Profit 43.7 42.4 -1.2 -2.9% Ordinary Profit 46.0 45.9 -0.0 -0.2% Net Profi
Slide 4: Overview | Financial Results for FY2023
Overview | Financial Results for FY2023 Net Sales Operating Profit Record Up 5.3% YoY high Down 2.9% YoY Changes in rules to 42.47 record the revenues* 258.6 43.74 245.6 41.09 (JPY billions) 241.6 4.5 (JPY billions) 20.6 13.3 10.09 210.5 6.2 47.2 13.75 9.09 196.1 185.1 33.8 42.5 30.8 34.6 27.89 1.87
Slide 5: Overview | Executive Summary: FY2023 Evaluation
Overview | Executive Summary: FY2023 Evaluation FY23 FY22 Record Services each hold top share in their respective markets JPY 171.5B high Net sales (Up 14.3% YoY) in Japan → Internet OP JPY 28.7B (Up 30.7% YoY) Large transactions in the face-to-face payments business Infrastructure drove sales→ Larg
Slide 6: Overview | Executive Summary: FY2023
Overview | Executive Summary: FY2023 Net sales Operating Profit Up 12.9B YoY Down 1.2B YoY ( JPY billions ) ( JPY billions ) +4.4 +4.7 +0.6 +21.4 -0.3 -0.9 -1.6 +6.7 +0.5 258.6 -12.7 245.6 43.7 42.4 -10.2 -1.0 FY Infra Crypto FY FY Infra Crypto FY Finance Ad VC Other Finance Ad VC Other 22 structure
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 ratio is a minimum 29.5 24.2 of 33% 10.6 10.2 11.8 12.2 5.0 7.2 7.4 7.5 5.5 ■ Q4 ■ Q3 6.2 6.0 6.2 19.6 17.1 ■ Q2 12.2 ■ Q1 6.0 6.0 6.6 18 19 20 21 22 23 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 12.68M shares (progress: 33.1%) Retired 7.69M 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) 9.36 Scheduled to be retired Total：JPY 2.41 Total acquisition 7.51 amount of our own （Resolution on February 13, 2024） sto
Slide 11: Overview | Shareholder Returns (acquisition of treasury stock)
Overview | Shareholder Returns (acquisition of treasury stock) Total cost of share acquisition Up to JPY 2.41B Total number of Up to 1.1M shares (to be retired) shares to be acquired 1.04% of shares issued (as of December 2023) Acquisition period February 14, 2024, through to February 7, 2025 11
Slide 12: Strengths
Strengths 12
Slide 13: Strengths (1) Operations and development of our own technology
Strengths (1) Operations and development of our own technology 13
Slide 14: Strengths (1) | Operations and development of our own technology
Strengths (1) | Operations and development of our own technology 7,393 7,396 7,438 7,317 7,361 7,213 7,133 7,042 6,767 6,782 6,554 6,272 6,180 6,001 6,058 5,995 6,012 5,958 6,048 5,767 5,758 5,670 5,691 Goal: Workforce of over 5,454 48.1％ 49.6％ 50.1％ 60% 45.8％ 46.4％ 45.6％ engineers & creators Partne
Slide 15: Strengths (2) Solid recurring revenues
Strengths (2) Solid recurring revenues 15
Slide 16: Strengths (2) | Solid recurring revenue
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 16
Slide 17: 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 17
Slide 18: 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 19: Strengths (2) | Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 9.5K*1 (JPY) 9,370*1 × Solid recurring (JPY billions) revenue Approx. 15M contracts*2 145.9*3 Number of × contracts 15.57M*2 Approx. JPY 15 16 17 18 19 20 21 22 23 145B *3 19
Slide 20: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts +2.35 (millions) +1.04 +0.58 15.57 14.92 +1.31 +0.32 14.17 13.52 13.22 12.8812.8312.93 12.63 12.11 11.5511.5111.5811.7111.72 11.2611.43 Solid revenue base 10.7310.92 10.35 9.94 9.60 15.57M 9.09 9.27 customers Increased approx. Avg.1.12M/year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 21: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 21
Slide 22: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base + financial customer base 18.19M customers Up 2.49M 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 23: 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 287.5 3769 GMO Payment Gateway Prime 696.7 40.7% 283.4 4051 GMO Financial Gate Growth 87.0 23.3%*3 20.3 7177
Slide 24: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment Changes in rules to (JPY billions) record the revenues* 69.4 64.6 65.5 64.4 66.0 61.2 62.5 62.5 1.4 1.2 0.9 59.2 4.3 12.8 0.9 56.4 57.5 2.0 6.8 56.0 11.6 53.6 52.8 53.2 5.7 1.2 0.7 12.7 12.2 10.5 3.6 11.3 50.9 50.8 2.0 11.3 Revenue up 1.4 0.8 2.7 49.1 49.1 10.0
Slide 25: Group Overview | Profit by Segment
Group Overview | Profit by Segment 19.84 (JPY billions) 10.16 12.47 12.38 0.07 0.08 11.12 10.99 10.53 0.10 2.55 Profit up 10.14 0.15 4.02 9.62 9.46 1.24 0.36 8.97 3.76 115.9% 8.28 8.13 2.34 8.01 3.65 7.06 3.83 3.60 6.51 0.42 1.48 3.85 2.97 5.95 0.66 3.10 2.68 5.26 0.01 3.81 6.09 0.92 5.73 5.53 4.46
Slide 26: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 26
Slide 27: Internet Infrastructure | Collection of No. 1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 83.0 Strong No. 1 Domain Registry % ＊1 Domestic market share at Domain Registrar 82.7 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 58.7 % ＊3 No. 1 ASP Cart 51K paid stores Domestic market share at No.
Slide 28: Internet Infrastructure | Full-year results trends
Internet Infrastructure | Full-year results trends Net Sales: Up 14.3% YoY Record Operating Profit: Up 30.7% YoY Record (JPY billions) Changes in rules to high (JPY billions) high record the revenues*1 171.5 3.7 28.72 150.0 138.7 3.3 131.2 2.8 65.1 21.98 6.2 114.0 52.3 44.5 19.23 100.8 5.5 37.4 6.2
Slide 29: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) Changes in rules to 44.3 record the revenues*1 42.1 42.5 42.4 0.9 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 Revenue up 32.8 0.8 15.3 16.3 15.8 31.3 2.0 1.0 1.3 14.5 29.6 1.7 13.1 28
Slide 30: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 9.59 6.99 Profit up 78.9% 6.28 6.00 6.12 5.53 5.58 5.36 4.93 4.67 4.74 4.75 3.15 3.61 3.58 3.76 3.09 3.87 4.01 3.72 4.02 YoY 2.76 2.93 2.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 22 23 30
Slide 31: Security | Slogan
Security | Slogan Safe and Secure Internet for Everyone 31
Slide 32: Security | Three areas
Security | Three areas 1. Encryption security 2. Cyber security 3. Brand security 32
Slide 33: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No.1 Number of contracts: No.1 33
Slide 34: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts ( millions ) 1.83M Number of e-contract accounts 1.66 User companies ( extract ) No.1 Increased 1.7-fold 1.07 YoY 0.46 20/4/15 Declaration of Abolition of Seals 20/5/13 Campaign launched 0.14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 35: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts 3.34M ( millions ) 2.83 Increased Number of contracts 1.9-fold 1.70 No.1 YoY 0.79 0.36 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18 19 20 21 22 23 35
Slide 36: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by 72 local governments was determined * Become No.1 in terms of the number of local governments introducing GMO Sign. Aim at triple crown. Local governments introducing GMO Sign ( extract ) Tokyo Kanagawa Shizuoka Gunma Hokkaido Yamaguchi Oita S
Slide 37: Japan's strongest white hat hacker organization
Japan's strongest white hat hacker organization 37
Slide 38: Internet Infrastructure | Cybersecurity Opened SOC
Internet Infrastructure ｜Cybersecurity Opened SOC 23 Jan. Open 38
Slide 39: Internet Infrastructure | Cybersecurity SaaS Products
Internet Infrastructure | Cybersecurity SaaS Products Finished of API collaboration with 6 million customers for domain. 39
Slide 40: Internet Infrastructure | Flatt Security Inc. joined the Group
Internet Infrastructure | Flatt Security Inc. joined the Group 13 Feb. Disclose Product Security Expert Group 40
Slide 41: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 41
Slide 42: Online Advertising & Media | Full-year results trends
Online Advertising & Media | Full-year results trends Net Sales: Up 1.8% YoY Operating Profit: Down 14.3% YoY (JPY billions) (JPY billions) 2.18 Changes in rules to record the revenues* 1.87 52.0 46.7 46.8 46.8 4.0 3.1 3.2 3.3 13.6 12.0 11.0 10.3 34.0 34.6 1.18 5.1 5.0 10.3 0.76 12.0 0.54 31.5 32.4
Slide 43: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales (JPY billions) Changes in rules to record the revenues* 13.6 13.5 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 Revenue down 11.0 0.9 0.8 0.9 0.7 0.8 3.0 0.7 0.8 10.7 0.7 0.7 3.7 0.6 0.4% 3.1 2.8 2.7 3.5 2.8 2.9 2.6 2.8 2.7
Slide 44: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 0.73 0.64 0.66 Operating Profit JPY 0.36B 0.54 0.48 0.42 0.35 0.36 0.31 0.32 0.24 0.25 0.25 0.17 0.14 0.09 0.06 0.05 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 Q3 Q4 18 19 20 21 22 23
Slide 45: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 45
Slide 46: Internet Finance | Full-year results trends
Internet Finance | Full-year results trends Net Sales: Up 11.1% YoY Record Operating Profit: Up 48.0% YoY high (JPY billions) (JPY billions) Record high 47.2 42.5 13.75 * 11.71 33.8 10.75 10.61 30.7 30.8 * 28.5 9.29 8.51 18 19 20 21 22 23 18 19 20 21 22 23 * Thailand‘s Internet Securities : the prov
Slide 47: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter 12.7 (JPY billions) 12.2 11.6 11.3 11.3 Revenue up 10.7 10.5 10.3 10.0 2.6% YoY 9.1 9.0 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.7 6.9 6.3 6.5 6.0 Increased profit JPY 2.5B Net Sales 3.81 3.85 3.65 3.76 3.83 3.60 3.30 3.39 2.91 3.10 2.97 2.60 2.58 2.62 2
Slide 48: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) FX : Profitability 1,635 2,117 improved CFD: Firm 1,869 857 525 1,068 7,640 7,287 6,855 4,661 4,449 Securities and others 3,154 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
Slide 49: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume FX：Profitability 697 441 610 measures implemented 391 203 172 （from Q4 2022） 7,640 7,287 6,855 ■ Net sales of OTC-FX/binary options (JPY millions) 4,661 ■ FX Trading volume (JPY trillions)* 4,449 3,154 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 50: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 50
Slide 51: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 51
Slide 52: Cryptoassets business | Full-year results trends
Cryptoassets business | Full-year results trends Net Sales: Down 26.7% YoY Operating Loss: 1.27B (JPY billions) (JPY billions) 9.09 20.6 6.4 8.2 6.7 6.0 13.3 6.2 0.95 0.76 4.2 1.3 4.5 ■ payment 2.1 1.7 ■ mining 0.5 ■ exchange 5.3 4.0 3.9 4.1 3.8 -0.34 -1.36 -1.27 18 19 20 21 22 23 18 19 20 21 22 23
Slide 53: 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 49.6% 2.3 2.1 0.6 5.4 1.6 1.8 2.0 2.0 QoQ 1.2 1.2 1.6 4.1 1.2 1.2 0.6 1.5 1.4 0.2 1.4 0.2 0.8 1.2 1.2 1.0 0.2 0.4 0.8 0.9 0.0 ■ payment 0.2 2.1 2.0 0.3 0.7 * 0.2 0.9 0.6 1.4 0.7 1.4 0.2 1.4 1.7 0.0 1.
Slide 54: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit (JPY billions) 4.02 2.34 Turning 1.48 1.24 a profit QoQ 0.67 0.71 * 0.42 0.42 0.38 0.25 0.21 0.10 0.08 0.15 0.08 -0.22 -0.26 -0.39 -0.33 -0.48-0.53 -0.73 -0.82 -0.98 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * The Company started
Slide 55: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 55
Slide 56: Efforts Towards Becoming No.1 Corporate Group in Creating the Future with AI
New Efforts Towards Becoming No.1 Corporate Group in Creating the Future with AI 56
Slide 57: Outlook for the Generative AI Market
Outlook for the Generative AI Market （USD billions） 1,400 in 2032 1,200 1,000 USD 1.3 800 600 400 trillion 200 0 Source: Bloomberg 2022 2027E 2032E 57
Slide 58: Investor's Focus
No.1 Corporate Group in Creating the Future with AI | Investor's Focus 1. How much cost savings? 2. How many personnel reductions? (General Hiring Restraints, Hiring Advanced AI Talent, Convert existing personnel to AI Talent) 3. How much sales expansion? 58
Slide 59: Cost savings
No.1 Corporate Group in Creating the Future with AI | Cost savings FY24 Targets worth JPY 1.8B of operational efficiencies 59
Slide 60: Personnel cut (General Hiring Restraints, Hiring Advanced AI Talent)
No.1 Corporate Group in Creating the Future with AI | Personnel cut (General Hiring Restraints, Hiring Advanced AI Talent) Number of partners Directed to the entire group * General Hiring 6,554 6,767 6,782 7,042 7,133 7,213 7,317 7,361 7,393 7,396 7,438 Restraints 6,272 6,180 6,001 6,058 5,995 6,012
Slide 61: Personnel cut (Convert existing personnel to AI Talent)
No.1 Corporate Group in Creating the Future with AI | Personnel cut (Convert existing personnel to AI Talent) Contents Start Jun. 2023～ Sep. 2023～ Short-term AI Talent New Development Feb. 2024～ Program 61
Slide 62: Outlook for the Generative AI Market
Outlook for the Generative AI Market （USD billions） 1,400 in 2032 1,200 1,000 USD 1.3 800 600 400 trillion 200 0 Source: Bloomberg 2022 2027E 2032E 62
Slide 63: Expand sales
No.1 Corporate Group in Creating the Future with AI | Expand sales Revenue Forecast by Generated AI Segment （USD billions） 500 400 Areas of greatest growth in the AI industry 300 200 100 Infrastructure 0 2022 2027E 2032E Source: Bloomberg intelligence, IDC, eMarketer, Statista Infrastructure Device
Slide 64: Expand sales
No.1 Corporate Group in Creating the Future with AI | Expand sales Various initiatives are underway to become the infrastructure of the AI industry Infrastructure Startup Support Entered into a partnership agreement Participate in “NVIDIA Partner Network” 64
Slide 65: Expand sales
No.1 Corporate Group in Creating the Future with AI | Expand sales Accelerate collaboration to Expansion of AI Industry Plans to Invest in server Approx. JPY 10B *We are planning to submit an application to the Ministry of Economy, Trade and Industry (METI) regarding a plan to secure the supply of t
Slide 66: Conclusion
GMO Conclusion 66
Slide 67: Conclusion
Conclusion The core businesses of infrastructure and finance both achieved record-breaking performance 26.6% profit increase excluding discontinuous operations, strong growth This fiscal year, we aim to pursue sustainable growth based on our solid recurring revenues. Under our new policy to No.1 Cor
Slide 68: Internet for Everyone
Internet for Everyone 68 68
Slide 69: Disclaimer and next earnings announcement
We are planning on making an earnings announcement for FY2024 First Quarter after 3 pm on May 10, 2024. This document includes projections based on expectations, premises and plans as of February 13, 2024. These projections may differ from actual results due to factors including changes in the globa
Slide 70: Appendix
Appendix 70
Slide 71: Group Overview, Financial condition and strategy, Consolidated results, ESG
Group Overview Financial condition and strategy Consolidated results ESG activities 71
Slide 72: 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 73: Group Structure by each segment (1/2)
Group Structure by each segment(1/2) GMO-AP (4784) GMO-IG (9449) GMO-TE GMO-PG GMO-FG (6026) (3769) (4051) Internet GMO-GSHD Online Advertising GMO-ME Infrastructure (3788) & Media (6180) GMO-PB (3633) GMO-RE (3695) Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNERS Other GMO-FG：GMO FINANCIAL GA
Slide 74: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO CLICK GMO-IG(9449) Securities GMO-FH GMO-FH GMO-FH Internet Finance (7177) Cryptoassets (7177) (7177) GMO Coin GMO Gaika* （Gaika ex byGMO) Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD *Gika ex byGMO has changed its name GMO Gaika in July
Slide 75: Internet services operations
Internet services operations GMO-IG(9449) GMO-GSHD (3788) Domain GMO-PB (3633) Security Other Other GMO-PG (3769) GMO-IG Payment GMO-FG (4051) GMO-GSHD (3788) Hosting & cloud Other GMO-PB (3633) Other Provider GMO-IG GMO-PB (3633) E-commerce solutions Other Listed subsidiaries (stock code) 75
Slide 76: Group Overview, Financial condition and strategy, Consolidated results, ESG
Group Overview Financial condition and strategy Consolidated results ESG activities 76
Slide 77: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 12,013 Human resources 11,270 12,227 12,766 13,433 Advertising and promotion 45,000 11,768 11,989 4,218 3,692 3,294 Depreciation and leases 40,000 10,602 4,327 4,047 3,671 3,880 3,749 4,162 Outsourcing costs 35,000 3,771 4,724 4,231 4
Slide 78: Consolidated Balance Sheets
Consolidated Balance Sheets GMO GMO End of End of (JPY millions) Changes Financial HD Internet Group 12/22 12/23 (End of 12/23) (End of 12/23) Current Assets 1,408,015 1,614,257 206,242 1,089,851 165,380 Cash & Deposits 341,970 393,452 51,482 83,095 117,949 Fixed Assets 134,725 143,379 8,653 35,647
Slide 79: Consolidated Statement of income
Consolidated Statement of income supplementary (JPY millions) FY2022 FY2023 Changes information Net Sales 245,696 258,643 5.3% Gross Profit on Sales 149,886 153,130 2.2% Operating Income 43,746 42,471 -2.9% （OP Margin） 17.8% 16.4% -1.4pt Non Operating Profit and Loss 2,278 3,475 52.5% Ordinary Profi
Slide 80: Consolidated Cash Flow
Consolidated Cash Flow （JPY billions） Significant Factors(compare to FY2022) GMO-FH FY22 FY23 （Jan-December） ・Net profit for the current period before tax adjustments: +42.9B (+57.6B in 2022) Operating Cash Flow +25.6 +14.9 ・Corporate tax and other tax payments: -15.2B (-18.6B) +9.6 ・Net change in s
Slide 81: Financial Strategy
Financial Strategy ・Avoid excessive risk-taking, considering balance of Shareholders equity ・Aiming to Equity balance, 100 Billion yen. Asset management Procurement ①Business All investments are subjected to ①Multiple our Risk management policy Agile procurement investment which up to 2/3 of Equity
Slide 82: Financial Strategy | Procurement 1: 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 83: Financial Strategy | Procurement 2-3: 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 84: Financial Strategy | Asset management 2: 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 85: 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) 85
Slide 86: Group Overview, Financial condition and strategy, Consolidated results, ESG
Group Overview Financial condition and strategy Consolidated results ESG activities 86
Slide 87: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 10.1％ 10.0% 9.0％ 6.62 Net sales 6.30 5.81 Global Sales Ratio 6.4％ 6.3% 6.4％ YoY 5.0%UP 3.42 2.98 3.00 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 88: Internet Infrastructure
Internet Infrastructure 88 88
Slide 89: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 5.73 5.06 4.10 4.57 YoY＋3.6 B JPY ・GMO-Brand Security‘s major projects contributed 3.04 2.08 2.08 1.88 1.36 1.46 1.18 0.91 -0.29 -0.45 -0.49 -0.45 -0.58 -0.71 Payment business Except payment business Cost allocation Q1 Q2 Q3 Q4 Q
Slide 90: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) To offset the decrease in mobile product sales , we focused on our in-house product, resulting in a Changes in rules to stable trend in the number of line 11,043 record the revenues* 2,230 2,258 2,269 2,152 9,
Slide 91: 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 Q3 Q4 2018 2019 2020 2021 2022 2023 ※Mobile and others indicated combined after FY23Q3 91
Slide 92: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Overseas sales and strengthening domestic sales promotion Changes in rules to 8,661 record the revenues* 2,534 7,069 7,197 7,119 2,188 2,130 6,586 6,406 1,926 1,955 1,948 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 93: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 93
Slide 94: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) 2,320 Favorable in overseas sales 1,461 1,049 Renewal rate: 66.2%* 792 669 603 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2023 * Renewal rate for domains registered between
Slide 95: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,106 1,117 5,199 1,070 4,703 960 4,226 857 872 3,881 3,604 3,602 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
Slide 96: 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 96
Slide 97: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart) (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) Despite the ongoing 6,000 Recurring revenue (ASP shopping cart) downward trend, The number of high- Changes in rules to priced plans are reco
Slide 98: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume ( JPY billion ) 139 138 131 122 YoY 0.8% 83 80 131 133 125 118 76 80 Down Freenance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SUZURI, Canvath minne 18 19 20 21 22 23 Ecommerce Platform 98
Slide 99: 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 100: Internet 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 101: Internet Infrastructure | Cybersecurity business | Achievements
Internet Infrastructure | Cybersecurity business | Achievements Cyber Security Assessment More than 7,500 cases World's Largest More than largest contest No.1 contest in Japan No.1 120 white hat hackers No.1 enrolled Received Encourage ment Award from the Received a Received a Minister of Internal l
Slide 102: Internet Infrastructure | Cybersecurity business | Service usage
Internet Infrastructure | Cybersecurity business | Service usage 102
Slide 103: Internet Infrastructure | Cybersecurity business | Synergy
Internet Infrastructure | 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 103
Slide 104: Internet Infrastructure | Cybersecurity business | Mid- to long-term growth
Internet Infrastructure | 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 104
Slide 105: Internet Infrastructure | Payment processing - Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies through ‘contracts,’ ‘payment information,’ and ‘money flow’. Consumer Merchant GMO-PG Payment Company ※1 consolidated subsidiaries 151,519stores 40+ Credit card companies (As of end-Dec 2023) EC Conven
Slide 106: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥15.8 trillion Operating TRX volume*2*3 TRX value*2 Stores*1/Terminals*2 GMO:FY2023.Q4 GMO:FY2023.Q4 GMO:FY2023.Q4 Past 12-month Past 12-month PG:FY2024.Q1 PG:FY2024.Q1 PG:FY2024.Q1 - 1.76 bn 6.51 bn ¥4.4 tr
Slide 107: Online Advertising & Media
Online Advertising & Media 107 107
Slide 108: GMO Research | Audience Engagement Platform
GMO Research｜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 R
Slide 109: GMO Research | Business Strategy for 2024
GMO Research｜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 Firms t
Slide 110: Internet Finance
Internet Finance 110 110
Slide 111: Thai securities business | Non-performing loans and special losses
Thai securities business｜Regarding of Non-performing loans and special losses situation ・As of the end of December 2023, the balance of non-performing loans recorded in the balance sheet amounted to 13.54 billion yen, with an allowance for doubtful accounts of 7.05 billion yen (including an addition
Slide 112: Thai securities business | Credit balance and risk management
Thai securities business | The outstanding credit balance and the status of risk management After the incident in the Thai securities market in November 2022, all doubtful accounts were （Million THB） transferred to bankruptcy rehabilitation claims. Credit Balance Under the new contract, we are curre
Slide 113: Internet Finance | Domestic FX volume and share transition
Internet Finance | Domestic FX volume and share transition Stable trading share 20％ or so Domestic trading volume Domestic share USD／JPY （JPY Trilion） (Sum of 3 companies ※1 (Sum of 3 companies) Volatility SHARE20.3%: At the end Dec 2023 Feb 2018 JUNE2023 ※The information you provided is related to
Slide 114: Internet Finance | CFD transaction and revenue transition
Internet Finance | CFD transaction and revenue transition ■Transaction （JPY Trillion） ■Revenue （JPY Million） Transaction volume YoY 6.5 %Down Profit YoY 14.2% UP Trading Volume has increased, particularly in stock index for Japan and the United States, as well as commodities such as crude oil and go
Slide 115: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 4.9 %Down A slight decrease but the level remains high * Prepared based on GMO-Financial Holdings presentation materials 115
Slide 116: Equity service | Stock brokerage commission and commission rate transition
Equity service | Stock brokerage commission and commission rate transition ■Stock 株式委託手数料 Brokerage 株式委託手数料率 ■Commission Rate Commission Rate commission （百万円） （bp） (bp) (bp) (Million Yen) Stock Brokerage Commission YoY 2.9%Down Due to the impact of competitor companies offering commission-free servi
Slide 117: 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 118: Cryptoassets
Cryptoassets 118 118
Slide 119: Cryptoasset Business
Cryptoasset Business Mining Mining Business Crypto Exchange Exchange business asset Payment Payment business ┗ Issuing Stablecoin 119
Slide 120: Cryptoasset Exchange Business | Trading volume
Cryptoasset Exchange Business | Trading volume (JPY Billion) YoY 13.8%UP Trading volume has increased by the rise in cryptocurrency prices, particularly Bitcoin. ※Regarding market share, the market's trading volume is based on the data published by the Japan Cryptocurrency Exchange Association, whil
Slide 121: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition ■Client Asset ■Cryptoasset under Custody accounts Accounts （JPY Billion） （thousand accounts） YoY 53 K Up Deposit Asset YoY 107.9 %Up * Prepared based on Results Presentation of GMO-Financial Holdings 121
Slide 122: 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 123: GMO Aozora Net Bank
GMO Aozora Net Bank 123
Slide 124: Net Bank | Bank x IT
Net Bank Bank×IT Born in July 2018 Banking management know-how Technology 124
Slide 125: Net Bank | Vision
GMO AOZORA NET BANK Net Bank | Vision TNTISERZE EDLH, O. -7/09-KY 74580 — All for our customers. Strive to be the No.1 Tech Bank. GMO 125
Slide 126: 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 126
Slide 127: Net Bank | Number of business accounts
Net Bank | Number of business accounts 113 （Thousands） 101 89 1.9-fold UP 77 66 47 57 about YoY 39 32 27 23 19 16 13 10 6 4 0 1 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 22 23 127
Slide 128: Net Bank | BaaS byGMO Aozora KPI
Net Bank |BaaS byGMO Aozora KPI Total number of contracted Embedded Financial service 582 552 （per contract） 506 454 420 367 322 281 196 233 progressing well 158 127 103 79 59 29 39 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 21 22 23 128
Slide 129: Group Overview, Financial condition and strategy, Consolidated results, ESG
Group Overview Financial condition and strategy Consolidated results ESG activities 129
Slide 130: 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 131: 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." 131
Slide 132: ESG activities | Sustainability management for SDGs
ESG activities | Sustainability management for SDGs Our business helps Social and environmental issues to be solved. ・ ・ ・ 132
Slide 133: ESG activities | Disclosure Processes/Health Management/External Evaluation
ESG activities | Disclosure Processes/Health Management/External Evaluation Disclosure Processes Health Management External Evaluation （FTSE ESG Ratings） ◼ Released our Activities for SDGs ◼ Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion 1.2 committee As of Dec. 2021 ◼ U
Slide 134: Internet for Everyone
Internet for Everyone 134 134