Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q2 2020 Earnings Presentation
100 slides from Gmo Internet's earnings presentation, Aug 11, 2020
Slide 1: Fiscal Year 2020 Second Quarter Results Presentation
Fiscal Year 2020 Second Quarter Results Presentation STOCK CODE: 9449 August 11, 2020 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 (Cryptocurrency) 4. GMO Aozora Net bank 2
Slide 3: Executive Summary: Q2 FY2020 (Apr-Jun)
Overview | Executive Summary: Q2 FY2020 (Apr-Jun) Q2’19 Q2’20 YoY (JPY billions) Change (Apr-Jun) (Apr-Jun) Change Net Sales 49.1 52.8 +3.62 +7.4% Operating Profit 5.95 8.13 +2.18 +36.6% Ordinary Profit 5.76 7.96 +2.19 +38.1% Net Profit 2.01 1.92 -0.08 -4.2% 3
Slide 4: Impact of COVID-19 on the business activities in Q2
Impact of COVID-19 on the business activities in Q2 Evaluation Positive Negative • Consumption increased due to stay- • Focusing more on online sales than at-home orders offline sales for major customers → E-commerce solutions/payment • Worsening market conditions. Internet • Change to new lifestyle
Slide 5: Approach to COVID-19: new workstyle by GMO
Approach to COVID-19: new workstyle byGMO Management that responds flexibly to the ever-changing market environment and contributes to a social DX Thorough safety Improve working New workstyle measures environment ✓ Working from home at ✓ Supplementing the ✓ Accelerating DX the early stage (since co
Slide 6: Executive Summary: Q2 FY2020 (Apr-Jun)
Overview | Executive Summary: Q2 FY2020 (Apr-Jun) Record high Profit was up significantly because of the growth in e- Internet Net sales JPY 33.58B (Up 18.1% YoY) commerce, payment, and provider due to the Infrastructure OP JPY 4.67B (Up 30.4% YoY) consumption of goods and services by those who stay
Slide 7: Net sales and operating profit bridge
Overview | Executive Summary: Q2 FY2020 (Apr-Jun) Net sales +1.5 +5.1 +0.0 52.8 (JPY billions) -0.8 -1.2 Revenue up 49.1 -1.1 3.6B Q2’19 Infrastructure Finance Ad Cryptoassets VC Other Q2’20 OP +1.49 +0.67 8.13 (JPY billions) +1.09 -0.14 +0.00 Profit up 5.95 -0.93 2.18B Q2’19 Infrastructure Finance
Slide 8: Executive Summary: Q2 FY2020 (Jan-Jun)
Overview | Executive Summary: Q2 FY2020 Q2’19 Q2’20 YoY (JPY billions) Change (Jan-Jun) (Jan-Jun) Change 106.5 Record Net Sales 96.0 +10.46 +10.9% high 16.42 +5.46 +49.9% Record Operating Profit 10.95 high Ordinary Profit 10.65 16.01 +5.36 +50.4% Record high Net Profit 4.03 4.18 +0.14 +3.6% 8
Slide 9: Shareholder Returns (Policy and Actual)
Overview | Shareholder Returns (Policy and Actual) Total Shareholder Returns Ratio Dividend Payout Ratio Share Buyback 50% 33% 17% Policy Over Quarterly dividend Net profit at end of fiscal year to form basis of buyback in following year (JPY) Q1 Q2 Q3 Q4 Annual Dividend per share FY2019 6.00 6.00 7
Slide 10: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 10
Slide 11: Net Sales by Segment
Financial Results | Net Sales by Segment (JPY billions) 53.6 52.8 50.9 1.4 0.8 49.1 49.1 47.5 48.0 2.4 45.8 46.8 2.1 1.5 1.0 9.0 2.3 9.1 2.0 43.7 2.6 1.2 Revenue up 6.7 41.8 2.6 7.4 7.9 7.5 6.3 38.2 38.0 7.4 7.4% 8.1 7.5 36.0 10.7 35.1 6.9 12.3 33.1 33.5 33.1 11.8 32.5 6.8 6.9 30.9 31.2 31.5 5.5 11.
Slide 12: Profit by Segment
Financial Results | Profit by Segment (JPY billions) 8.97 8.13 8.28 1.91 0.44 0.42 6.51 Profit up 5.95 0.42 3.81 5.26 1.56 0.67 5.65 5.53 4.46 5.34 36.6% 0.25 0.10 5.00 3.39 0.38 5.03 0.11 2.91 0.48 4.64 4.49 0.53 0.08 2.31 4.29 3.96 0.18 2.26 1.46 3.30 0.48 4.03 2.58 3.85 3.65 2.60 1.80 3.58 3.53 0
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 (Cryptocurrency) 4. GMO Aozora Net bank 13
Slide 14: Group Overview | Changing company name
Group Overview | Changing company name 14
Slide 15: Newly listed company: GMO Financial Gate
Group Overview | Newly listed company July 15, 2020 Listed on the Mothers (Tokyo Stock Exchange): 4051 15
Slide 16: Change the payments and society
Change the payments and society. Working toward No. 1 cashless platform. 16
Slide 17: GMO-FG Business domain
GMO-FG｜Business domain GMO Financial Gate GMO Payment Gateway (Offline shop payment + IoT payment) (E-commerce payment) E-commerce payment (terminals are basically Payment terminal Payment unnecessary) method Input a credit card information in devices, such as Hand over (hold up) the physical card P
Slide 18: 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 TSE 1 347.0 3769 GMO Payment Gateway TSE1 907.2 42.4% 384.6 3788 GMO CLOUD TSE1 85.9 51.8% 44.5 7177 GMO Financial Holdings TSE
Slide 19: Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base 13.21M customers (Infrastructure and Finance) Up 0.98M YoY *Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions. *13.21M is an aggregate number of customers (the actual number) in Infrastr
Slide 20: Strengths: Technology
Group Overview | Strengths: Technology 6,001 6,058 5,995 6,012 5,958 5,767 5,758 5,670 5,691 Goal: Workforce of 5,454 5,275 5,278 5,316 5,156 5,156 5,080 4,876 over 50% 4,600 4,633 4,415 4,435 4,188 engineers 44.9% 45.6% 44.9% 44.2% 42.0% 40.0% Partners % Engineers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 21: Strengthen technology: tech conference
Group Overview | Strengthen technology: tech conference 21
Slide 22: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 22
Slide 23: Collection of No. 1 services
Internet Infrastructure | Collection of No. 1 services 81.0 Domestic market share at Strong No. 1 Domain Registry %*1 86.9 Domestic market share at Strong No. 1 Domain Registrar %*2 Domestic market share at No. 1 Hosting & Cloud 56.4 %*3 No. 1 ASP Cart 69,853 paid stores 50.5 Domestic market share a
Slide 24: Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 33.5 31.3 2.0 29.6 1.7 28.4 28.5 1.2 27.1 27.4 1.1 Record +18.0％ 1.6 25.4 1.5 9.4 high Revenue up 1.2 24.8 1.4 9.3 23.3 23.3 1.8 9.0 8.4 18.1% 1.3 1.6 8.0 21.0 8.1 7.8 20.4 1.6 19.7 1.4 7.3 1.4 6.8 1.6 +30.9％ 1.2 17.6 7.3 6.7 1.5 1.5
Slide 25: Internet Infrastructure Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 4.67 Record high 3.61 3.58 3.76 3.87 Profit up 30.4% 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 1.21 1.12 1.00 0.96 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 2020 25
Slide 26: Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 3.12 Payment 2.68 2.42 2.34 2.08 2.19 2.08 Other 1.75 1.73 1.58 1.63 1.95 1.83 1.40 1.76 1.33 1.69 1.56 1.59 1.20 1.46 1.07 1.07 1.38 1.36 1.26 1.25 0.87 0.87 0.86 1.16 0.76 0.81 1.06 1.11 0.67 0.70 0.68 0.66 0.66 0.51 0.57 0.49
Slide 27: Internet Infrastructure Contracts
Internet Infrastructure | Contracts (millions) 11.43 11.56 11.27 10.93 10.74 10.36 9.95 9.60 9.27 8.97 8.98 9.10 8.72 8.77 8.75 Solid revenue base 8.61 8.35 7.88 7.68 11.56M 7.16 6.85 6.45 customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 2020 27
Slide 28: GMO's e-contract service Agree
Internet Infrastructure | GMO's e-contract service Agree Type and competence of evidence of electronic contracts digital-Sign Business plan Conforms to the Articles 2 and 3 of the Act on Electronic Signatures and Certification Business Verification by Intensity of the legal effect digital certificat
Slide 29: E-contract service Agree: number of accounts
Internet Infrastructure | GMO's e-contract service Agree (accounts) 8,864 Number of accounts up 232.5% YoY 2,666 1,215 Goodbye Seal Impression Campaign*1 "Wasteful seal impression survey 2020" and providing services for free to participants for up to 2 years to discourage the use of seal impression
Slide 30: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 30
Slide 31: Online Advertising & Media Net Sales
Online Advertising & Media | Net Sales (JPY billions) 12.2 12.3 12.0 12.0 11.6 11.5 11.5 0.7 11.4 0.8 11.5 11.3 11.8 0.9 11.1 11.1 11.0 10.7 10.7 11.0 0.9 Revenue down 0.6 0.8 0.7 10.3 0.6 0.8 0.7 0.7 0.8 10.7 10.3 0.7 0.7 0.7 0.7 0.8 0.6 9.5 0.6 0.7 3.1 2.8 7.2% 2.8 2.9 9.0 2.8 2.7 2.6 3.5 -18.1% 0
Slide 32: Online Advertising & Media Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.56 0.44 0.41 Operating loss 0.05B 0.31 0.32 0.28 0.26 0.25 0.23 0.24 0.21 0.21 0.20 0.19 0.17 0.15 0.14 0.09 0.06 0.05 0.06 -0.05 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 2020 32
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 (Cryptocurrency) 4. GMO Aozora Net bank 33
Slide 34: Internet Finance Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter (JPY billions) 9.1 9.0 Record Revenue up high 8.1 7.8 7.8 7.9 7.5 7.6 7.5 7.4 7.5 21.3% 7.4 6.7 6.7 6.7 6.8 6.9 6.9 6.7 6.3 6.0 5.5 Net Profit up 64.7% Sales 3.81 OP 2.18 2.80 2.47 2.19 2.07 3.31 2.24 2.35 2.33 3.30 2.60 2.58 2.26 2.31 2.91 3.39 Y
Slide 35: FX Trading Volume
Internet Finance | FX Trading Volume 354 327 341 257 244 Japan's No. 1 FX 174 provider 26.8% 24.4% 24.8% 24.0% 22.5% 22.7% 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 Q2 2015 2016 2017 2018 2019 2020 Prepared based on Results Presentation of GM
Slide 36: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 36
Slide 37: Finance, Payment, and Cryptoassets
Finance, Payment, and Cryptoassets Mining Exchange Payment (Daiwa Securities Group Inc., ) Cryptoassets Securities/FX Share acquisition: JPY9.7B (9.37%) Payment Net Bank 決済 Launched on July 17, 2018 GMO Aozora Net Bank JV established (Sumitomo Mitsui Banking Corporation ) (Aozora Bank) Investment: J
Slide 38: Cryptoassets Historical performance by quarter
Cryptoassets business | Historical performance by quarter (JPY billions) 2.65 2.61 2.33 2.10 1.29 1.57 1.09 1.43 Revenue and profit were down YoY 0.96 0.84 Net 0.63 Sales and QoQ 0.67 0.53 0.42 0.08 0.42 0.25 0.10 OP -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 2017 2018
Slide 39: Cryptoassets Mining historical performance
Cryptoassets Mining business | Historical performance by quarter (JPY billions) 1.29 1.23 1.17 0.79 0.61 0.61 Operating our new mining centers since early June. 0.49 0.09 0.25 0.23 0.22 Bitcoin halving leads to the Net sales* 0.19 -0.05 0.17 0.11 -0.12 -0.11 -0.22 fall in profitability. -0.36 OP -0.
Slide 40: Hash rate and amount of mined Bitcoin
Cryptoassets mining | Our hash rate and the amount of mined Bitcoin Our hash rate (PH/s)*1 Our hash rate (monthly average) (PH/s)*1 Amount of mined Bitcoin Cash (JPY millions)*2 Amount of mined Bitcoin (JPY millions)*2 670 657 489 479 464 496 Finished restructuring in 379 392 376 400 382 388 Q2. Exp
Slide 41: Cryptoassets mining | Data centers
Cryptoassets mining | Data centers 41
Slide 42: Cryptoassets mining | Data centers
Cryptoassets mining | Data centers 42
Slide 43: Cryptoassets Trading historical performance
Cryptoassets Trading business | Historical performance by quarter (JPY billions) 1.49 1.42 1.36 1.21 1.05 1.08 0.86 0.84 0.62 Increase in costs of cover 0.50 Net 0.74 transactions, which led to Sales the fall in profitability 0.19 0.55 0.54 0.50 0.50 0.24 0.31 0.21 OP -0.07-0.23 -0.16 -0.02 -0.76 Q2
Slide 44: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 44
Slide 45: Finance, Payment, and Cryptoassets
Finance, Payment, and Cryptoassets Mining Exchange Payment (Daiwa Securities Group Inc., ) Cryptoassets Securities/FX Share acquisition: JPY9.7B (9.37%) Payment Net Bank 決済 Launched on July 17, 2018 GMO Aozora Net Bank JV established (Sumitomo Mitsui (Aozora Bank) Banking Corporation ) Investment: J
Slide 46: Net Bank | API integration
Net Bank | API integration Become No. 1 in terms of the number of bank API connection 35 firms → 48 firms (Q1 ’20) (Q2 ’20) Released business version of hometown tax site on Jun. 17, 2020 Corporate resources to regions Regional development Corporate growth Man Thing Money Information Local governmen
Slide 47: Upfront payment for payroll GMO Aozora Prime
Net Bank | User-friendliness improvement measures for corporations Upfront payment for payroll First Japanese GMO Aozora Prime bank (Bank transfer fee subscription) Fixed- Free the first month of monthly subscription, JPY 1,980 from payments the following month Bank transfer fee Flat fee of JPY 180
Slide 48: Conclusion | Future outlook
- Difference between Q1 and Q2 Conclusion | Future outlook - Blue: Added - Red: Modified Assumption Outlook • Change in society due to new coronavirus • Expect current trend to continue • Promoting cashless penetration • Strengthen promotion of GMO's e- • Accelerating DX contract service Agree Inter
Slide 49: Internet for Everyone
Internet for Everyone 49 49
Slide 50: Next earnings announcement and disclaimer
We are planning on making an earnings announcement for FY2020 Third Quarter after 3 pm on November 11, 2020. This document includes projections based on expectations, premises and plans as of August 11, 2020. These projections may differ from actual results due to factors including changes in the gl
Slide 51: Appendix
Appendix 51
Slide 52: Significant Group Companies
Significant Group Companies 129 Group Companies (102 consolidated, 20 non-consolidated, 4 equity method affiliates, 3 non-equity method affiliates) *As of June 2020 Internet Infrastructure GMO Internet, Inc. (TSE:9449) - Europe Internet Finance (UK) GMO Payment Gateway, Inc. (TSE:3769) GMO Financial
Slide 53: Group relationship
Finance, Payment, and Cryptoassets | Group relationship Net Bank Domain, hosting & cloud, provider, Cryptoassets mining Cryptoassets GMO Aozora Net Bank mining (Aozora Bank 85.1% / GMO Internet 7.45% / GMO Financial HD 7.45%) GMO Internet (TSE1) Infrastructure & Ecommerce Finance Rental server, host
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet GMO End of End of (JPY millions) Change Financial HD Change 12/2019 6/2020 (End of 6/2020) Current Assets 811,083 879,344 68,260 625,631 27,485 Cash & Deposits 160,315 199,416 39,101 50,610 -11,107 Fixed Assets 60,130 62,451 2,320 8,182 -199 Goodwill 2,778 2,445 -332 366 -
Slide 55: Consolidated Profit and Loss
Consolidated Profit and Loss Q2'19 Q2'20 supplementary (JPY millions) Change (1-6/2019) (1-6/2020) information Net Sales 96,038 106,500 10.9% Gross Profit on Sales 45,950 54,528 18.7% Operating Profit 10,957 16,420 49.9% （OP Margin） 11.4% 15.4% +4.0pt Non Operating Profit and Loss -304 -401 - Ordina
Slide 56: Revenue Breakdown by Segment
Revenue Breakdown by Segment 2019/Q2 2019/Q3 2019/Q4 2020/Q1 2020/Q2 (JPY millions) ◆Internet Infrastructure Internet provider 8,429 8,603 8,841 9,248 10,524 Domain 2,380 2,204 2,255 2,394 2,427 Cloud & hosting 3,610 3,606 3,602 3,740 3,726 Ecommercd solutions 2,816 2,984 2,985 3,250 3,687 Security
Slide 57: Global Operations | Locations
Global Operations | Locations 21 countries, 62 locations, 1,197 global partners (“staffs”) Infrastructure Finance Mining *As of Jun. 2020 57
Slide 58: Global Net Sales
Global Operations | Global Net Sales (JPY billions) 8.4％ 8.9％ 7.2％ 5.9％ 4.67 Down 4.35 4.43 4.31 Global 4.22 4.19 4.10 4.00 Sales Ratio 12.2％ 3.82 3.4％ 3.71 3.9％ 2.97 2.29 2.27 2.24 YoY 1.66 1.44 Net 1.20 1.21 1.26 1.11 1.09 1.14 Sales Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 59: Cost Composition (Consolidated)
Cost Composition (Consolidated) (JPY millions) 45,000 8,573 40,000 8,742 9,164 7,816 8,338 Human resources 35,000 2,282 2,301 1,797 2,307 Advertising and promotion 2,013 2,646 2,416 2,709 2,615 Depreciation and leases 30,000 2,543 3,612 3,146 3,164 3,592 3,372 Outsourcing costs 25,000 6,951 6,576 6,
Slide 60: Internet Infrastructure
Internet Infrastructure 60 60
Slide 61: Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 10,524 2,087 8,429 1,650 6,460 1,202 4,455 3,272 2,584 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 20
Slide 62: Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Renewals 6,920 6,704 Registrations 6,118 6,050 2,427 2,380 5,574 5,173 2,141 2,046 1,949 1,516 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 Q3 Q4 Q1 Q2
Slide 63: Domain - New Businesses
Internet Infrastructure | Domain - New Businesses 99.4 Selected by ICANN as Asia's first registrar 99.9 Launched domain registrar business “Onamae.com" ②2009- 04.3 paperboy&co. (currently, GMO Pepabo), which operates “MuuMuu Domain", becomes a Registry consolidated subsidiary (wholesale) 09.7 Establ
Slide 64: Domains Industry Structure
Internet Infrastructure | Domains Industry Structure ・Global domain management ・NPO ICANN ・Operators of .com, .net, etc. Registry ・Only one operator per domain 520 Registrar ・Domain registration sales 2,240 Agency ・Agency 64
Slide 65: Domains Registry Share
Internet Infrastructure | Domains Registry Share Japan gTLD Operation and Management Market Share No.1 in Japan 81.0% Others + 81.0% 65
Slide 66: .shop registration progress
Internet Infrastructure | “.shop”: Registration progress “.shop” came in 9th place for the (thousands) 731 category of New gTLD*1 696 Renewal rate: 72.9％*2 676 669 656 637 614 603 588 539 530 New gTLD registration rankings No. 1 .icu 6.38M No. 2 .top 3.58M 328 No. 3 .xyz 3.30M 228 No. 4 .site 2.05M
Slide 67: Domains Global Registrars
Internet Infrastructure | Domains Global Registrars １ ６ ２ ７ ３ ８ ４ ９ ５ 10 Source: https://www.webhosting.info/domain-registrar-statistics (as of June 2020) 67 67
Slide 68: Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 3,726 3,610 917 3,533 3,519 3,436 3,445 866 815 796 776 753 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017
Slide 69: Ecommerce Solutions - KPIs
Internet Infrastructure | Ecommerce Solutions - KPIs Revenue Contracts (ASP shopping cart) (JPY millions) 3,687 (thousands) 75.6 76.0 73.2 74.0 71.2 69.9 Other Transaction revenue (minne・SUZURI) 2,816 Recurring revenue (ASP shopping cart) 2,510 2,109 1,973 1,442 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 70: Ecommerce solutions: total transaction volume
Internet Infrastructure | Ecommerce solutions business : Total transaction volume (JPY millions) 4,136 2,992 2,960 2,493 2,041 927 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018 2019 2020 70 70
Slide 71: Ecommerce solutions business model
Internet Infrastructure | Ecommerce solutions business : Business model Bank Virtual account ② Request purchase of the receivable ④ Payment ③ Immediate payment (fee) User Client ① Receivable Services for individuals (customer base) Credit (expertise) The Company created the above diagram based on GM
Slide 72: Total value of purchased receivables
Internet Infrastructure | Ecommerce solutions business : Total value of purchased receivables (JPY billions) 4.3 0.43 3.8 0.38 3.2 0.32 Increase slowed down, 1.6 0.16 affected by COVID-19 0.7 0.07 0.3 0.03 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 72
Slide 73: Security - KPIs
Internet Infrastructure | Security - KPIs Strong results in sales for major customers in Japan, Europe, and the USA Issued digital Issued digital Newly issued digital certificates *1 certificates Valid Digital Certificates (JPYSales millions) certificates (ten thousands) 100,000 (as of the end of th
Slide 74: Payment Processing - KPIs
Internet Infrastructure | Payment Processing - KPIs Annual GMO-PG group-wide TRX value reaches ¥5.5 trillion Operating stores: 129,404*1; TRX volume: 672 million; TRX value:¥1.3trillion*2 (stores) (billion yen) (million TRX) 140,000 14,000 (Reference) Consolidated transaction value (past 12 months)
Slide 75: 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 40+ Credit card 129,404 stores* company (end of June 2020) Convenience store EC BtoB・BtoC・CtoC Account transfer PC
Slide 76: Internet Finance
Internet Finance 76 76
Slide 77: Internet Finance Net sales by product
Internet Finance | Net sales by product (JPY millions) 9,067 7,838 7,808 7,560 7,474 6,869 415 2,369 287 418 554 270 5,802 5,893 5,095 5,124 4,873 4,823 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 2
Slide 78: FX, CFD, and Securities: KPIs
Internet Finance | FX, CFD, and Securities: KPIs FX CFD Securities Trading Volume Trading value Trading value JPY 341 tr JPY 15.4 tr JPY 3.4 tr Q2 FY2019: JPY 174tr Q2 FY2019: JPY 5.3tr Q2 FY2019: JPY 2.5tr Share of Trading Account Share of Trading Volume Value 22.7 % 140,000 3.8 % Jun. 30, 2019: 10
Slide 79: FX Business Model (Matching)
Internet Finance | FX Business Model (Matching) • Effective matching and thorough risk minimization with cover transactions executed with counter parties as soon as customer orders exceed acceptable risk position. • As a new hedging method, “BtoB” is in trial to reduce cover costs and generate profi
Slide 80: FX Volatility and Revenues
Internet Finance | FX Volatility and Revenues Revenue Customer Trades Cover Trades Structure (Customer spread x Trading volume) －(Cover spread x Cover trades) Trading Volume Cover Costs Increase in Increase Increase Volatility Decrease in Decrease Decrease Volatility (Concept diagram) 80 80
Slide 81: Cryptoassets
Cryptoassets 81 81
Slide 82: Cryptoassets mining | Bitcoin macro data
0.0 20.0 30.0 60.0 10.0 40.0 50.0 Jan. ’17 2017年1月 2017年3月 Mar. ’17 2017年5月 May ’17 2017年7月 Jul. ’17 Bitcoin price 2017年9月 Sep. ’17 Total hash rate* 2017年11月 Nov. ’17 2018年1月 Jan. ’18 2018年3月 Mar. ’18 2018年5月 May ’18 2018年7月 Jul. ’18 2018年9月 Sep. ’18 2018年11月 Nov. ’18 2019年1月 Jan. ’19 2019年3月 Mar. ’
Slide 83: Cryptoassets Trading value and customer accounts
Cryptoassets Trading | Trading value and customer accounts Trading value (JPY billions) Customer accounts (thousands) 8,121 319 311 299 289 271 245 225 197 169 4,177 144 3,142 3,018 2,680 2,618 1,449 1,283 524 643 535 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 83
Slide 84: GMO Aozora Net Bank
GMO Aozora Net Bank 84 84
Slide 85: Connected securities account
Net Bank | Connected securities account Customer asset balance Customer account (thousands) (JPY billions) 60 Customer asset balance 証券コネクト口座残高(右軸) 275 27.5 Connected securities account 証券コネクト口座数(左軸) 25.0 250 50 Connected 22.5 225 20.0 200 securities account 40 17.5 175 15.0 150 30 12.5 125 and cust
Slide 86: Net Bank | Vision
Net Bank | Vision Customer first at any time to become the technology bank Our objective is a differentiation with Safe existing banks by utilizing technology, New Fast offering customers 5 values. Easy-to-use Cheap *Source: GMO Aozora Net Bank launch presentation on July 17, 2018 86
Slide 87: Other
Other 87 87
Slide 88: Group News (1) 3 mths to June
Group News (1) 3 mths to June GMO Epsilon has launched financing service for the users of "NETSEA," a B2B wholesale mall: 4/1 develops financing services utilizing brand names of platforms and shopping carts GMO's Electronic Contract Service "Agree" offered by GMO Cloud launches the option that allo
Slide 89: Group News (2) 3 mths to June
Group News (2) 3 mths to June GMO Internet's free WiFi automatic connection application "Town WiFi byGMO" offers 4/30 restaurant delivery and takeout customer acquisition support for free GMO Medical Reservations Technology's Medical Kakumei byGMO, a reservation management system specializing in the
Slide 90: Group News (3) 3 mths to June: Covid-19
Group News (3) 3 mths to June: Covid-19 GMO Research is opening up "ASIA Cloud Panel" for free and looking for projects studying for the 4/13 purpose of preventing the contagion of COVID-19 GMO Internet offers GPU Cloud byGMO, a GPU server, for free until the end of 2020 to projects 4/20 researching
Slide 91: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE 1st Section 3769 Stock Code Internet Infrastructure (Payment) Q3 FYE 9/2019 Q3 FYE 9/2020 Q3 FYE 9/2020 FYE 9/2020 (3mths to Jun) (3mths to Jun) (9mths to Jun) Forecast (Progress) Net Sales 6,661 8,623 24,118 31,418 (76.8%) Operating Profit
Slide 92: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE 1st Section 3788 Stock Code Internet Infrastructure (Hosting & Cloud, Security) Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 3,239 3,336 6,781 13,691 (49.
Slide 93: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE 2nd Section 3633 Stock Code Internet Infrastructure (Domain, Hosting & Cloud, Ecommerce Solutions) Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 2,234 2,95
Slide 94: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE MOTHERS 4051 Stock Code Internet Infrastructure (Payment) Q3 FYE 9/2019 Q3 FYE 9/2020 Q3 FYE 9/2020 FYE 9/2020 Forecast (3mths to Jun) (3mths to Jun) (9mths to Jun) (Progress) Net Sales - 784 2,834 3,600 (78.7%) Operating Profit - 70 416 450
Slide 95: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) JASDAQ Standard 7177 Stock Code Internet Finance & Cryptoaasets Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast Net Sales 8,965 9,699 20,064 ー Operating Profit 2,936 3,815 7,863 ー Or
Slide 96: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) JASDAQ Standard 4784 Stock Code Online Advertising & Media Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 8,603 8,005 17,146 36,000 (47.6％) Operating Profit 134
Slide 97: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE MOTHERS 6026 Stock Code Online Advertising & Media Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 611 579 1,356 3,100 (43.8％) Operating Profit 3 -30 0 50 (0
Slide 98: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE MOTHERS 6180 Stock Code Online Advertising & Media Q2 FYE 12/2019*1 Q2 FYE 12/2020*2 Q2 FYE 12/2020*2 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 1,046 1,238 2,187 5,700 (38.4%) Operating Profit -9
Slide 99: Listed Group Companies (3 mths to June)
Listed Group Companies (3 mths to June) (JPY millions) TSE MOTHERS 3695 Stock Code Online Advertising & Media Q2 FYE 12/2019 Q2 FYE 12/2020 Q2 FYE 12/2020 FYE 12/2020 (3mths to Jun) (3mths to Jun) (6mths to Jun) Forecast (Progress) Net Sales 767 696 1,612 3,630 (44.4％) Operating Profit 0 -24 33 240
Slide 100: Internet for Everyone
Internet for Everyone 100 100