Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q3 2021 Earnings Presentation
86 slides from Gmo Internet's earnings presentation, Nov 11, 2021
Slide 1: Fiscal Year 2021 Third Quarter Results Presentation
Fiscal Year 2021 Third Quarter Results Presentation STOCK CODE: 9449 November 11, 2021 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 2
Slide 3: Overview | Executive Summary: Q3 FY2021 (Jul-Sep)
Overview | Executive Summary: Q3 FY2021 (Jul-Sep) Q3’20 Q3’21 YoY (JPY billions) Change (Jul-Sep) (Jul-Sep) Change Net Sales 50.8 56.4 +5.66 +11.1% Operating Profit 6.09 8.01 +1.91 +31.4% Ordinary Profit 5.88 8.60 +2.71 +46.2% Net Profit 2.56 3.59 +1.03 +40.5% 3
Slide 4: Overview | Executive Summary: Q3 FY2021
Overview | Executive Summary: Q3 FY2021 Q3’20 Q3’21 YoY (JPY billions) Change (Jan-Sep) (Jan-Sep) Change Record Net Sales 157.3 176.9 +19.64 +12.5% high Record Operating Profit 22.51 30.63 +8.11 +36.0% high 32.22 Record Ordinary Profit 21.90 +10.31 +47.1% high Net Profit 6.74 13.30 +6.55 +97.3% Reco
Slide 5: Overview | Executive Summary: Q3 FY2021
Overview | Executive Summary: Q3 FY2021 Q2 Q3 Internet Net sales JPY 34.3B (Up 4.6% YoY) Solid revenue base. Strategic investment, especially in Infrastructure OP JPY 4.02B (Up 0.1% YoY) GMO Sign. Online Ad & Net sales JPY 12.0B (Up 5.9% YoY) Internal measures taken since 2020 were effective. Media
Slide 6: Overview | Executive Summary: Q3 FY2021
Overview | Executive Summary: Q3 FY2021 Net sales OP Up 5.6B YoY Up 1.91B YoY +1.09 +0.556.4 8.01 (JPY billions) +2.0 (JPY billions) -0.27 +0.6 +0.20 +0.85 +0.8 +1.5 50.8 6.09 +0.00 Q3‘20 Infrastructure Finance Ad Cryptoassets VC Other Q3‘21 Q3‘20 Infrastructure Finance Ad Cryptoassets VC Other Q3‘2
Slide 7: Overview | 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 FY2020 6.60 6.20 7
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. Topics 8
Slide 9: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment 61.2 (JPY billions) 59.2 6.8 56.4 53.6 52.8 53.2 5.7 3.6 50.9 1.4 0.8 50.8 2.7 49.1 49.1 1.6 8.2 47.5 48.0 6.9 7.3 45.8 46.8 2.1 1.5 1.0 9.0 6.0 9.1 6.5 43.7 41.8 6.7 Revenue up 7.4 7.9 7.5 6.3 38.2 38.0 7.4 13.6 12.7 12.0 8.1 7.5 12.4 36.0 10.7 11.1% 11.3 35
Slide 10: Financial Results | Profit by Segment
Financial Results | Profit by Segment (JPY billions) 12.47 4.02 10.14 0.43 8.97 6.51 1.91 8.28 8.13 0.44 2.34 8.01 Profit up 31.4% 0.42 1.48 5.95 0.42 3.10 5.26 1.56 3.81 6.09 2.12 0.67 5.37 5.65 5.53 4.46 5.34 0.38 5.00 3.39 0.21 5.03 0.25 0.10 2.62 4.49 0.53 2.91 0.08 0.64 0.42 4.29 4.03 3.96 2.31
Slide 11: 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 11
Slide 12: 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 358.0 3769 GMO Payment Gateway TSE1 1,126.9 40.7% 458.8 4051 GMO Financial Gate TSE MOTHERS 128.7 23.6%*3 30.3 7177 GMO Fi
Slide 13: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base 13.97M customers (Infrastructure and Finance) Up 770K 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 14: Group Overview | Strengths: Technology
Group Overview | Strengths: Technology Goal: Workforce of 6,767 6,554 6,272 6,180 over 50% 6,001 6,058 5,995 6,012 5,958 6,048 5,767 5,758 5,670 5,691 5,454 5,275 5,278 5,316 5,156 5,156 5,080 4,876 engineers 4,633 46.7% 45.5% 46.3% 45.7% 43.9% 44.6% All partners (excluding the directors and part-ti
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 15
Slide 16: 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 57.5 %*3 No. 1 eSignature 334K accounts No. 1 ASP Cart 63K paid stores
Slide 17: Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 34.6 34.3 33.5 33.5 33.9 0.7 0.5 32.8 0.8 1.0 31.3 2.0 1.3 29.6 1.7 27.1 27.4 28.4 28.5 1.2 10.9 +27.3% Revenue up 1.1 10.2 11.3 1.6 9.7 25.4 1.5 9.4 8.8 1.2 24.8 *2 1.4 9.3 23.3 23.3 4.6% 1.8 9.0 8.0 8.4 1.3 1.6 21.0 8.1 7.8 1.5 1.4
Slide 18: Infrastructure | Net Sales by Sub-Segment (other than Provider and Other)
Internet Infrastructure | Net Sales by Sub-Segment (other than Provider and Other) (JPY billions) 23.7 23.3 22.3 Revenue up 20.9 20.6 21.4 20.3 19.5 18.5 18.2 18.3 18.7 15.2% 16.8 17.1 10.9 11.3 16.1 16.4 10.2 9.4 9.7 8.8 14.4 14.5 14.9 9.3 9.0 8.1 7.8 8.0 8.4 13.2 7.3 7.3 6.8 YoY 12.0 6.7 11.3 11.4
Slide 19: Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 10,892 2,229 10,002 2,128 8,603 1,721 6,902 1,305 4,766 3,497 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017
Slide 20: Infrastructure | Provider (number of lines)
Internet Infrastructure | Provider (number of lines) Optical line Focus on sales Other promotion of Mobile optical line (Since July 2021) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 20
Slide 21: Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 4.93 4.67 4.74 4.01 4.02 3.87 3.76 3.72 Profit up 3.61 3.58 0.1% 3.15 3.09 2.93 2.76 2.50 2.58 2.15 2.02 YoY 1.96 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 16 17 18 19 20 21 21
Slide 22: Infrastructure | Contracts
Internet Infrastructure | Contracts 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 12.11M customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 16 17 18 19 20 21 22
Slide 23: Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts User companies (extract) (thousands) 334 Increased 6.9-fold 226 YoY 48 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 23
Slide 24: Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (thousands) 671 543 Increased 303 2.2-fold YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 24
Slide 25: Infrastructure | Digital government
Internet Infrastructure | Digital government Reducing time and cost significantly Paper contract 268 hours 40 minutes ■ Time required for contract execution GMO Sign 177 hours 44 minutes Shortened by 34% 10,292 hours ■ Period from issuing vouchers until 547 hours 40 minutes Shortened by 95% conclusi
Slide 26: Confirmation of legality through the System to Eliminate Regulatory Gray Zones
Internet Infrastructure | Digital government Confirmation of legality through the System to Eliminate Regulatory Gray Zones* For more details, please refer to the press release "Electronic signature using GMO Sign is a ‘valid alternative to affixing names and seals’: legality is confirmed by Japan D
Slide 27: Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 122 117 118 119 119 Up 111 64 67 65 72 67 68 68 77 72 74 73 80 78 77 81 83 85 6.8% 106 114 YoY 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 16 17
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. Topics 28
Slide 29: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales (JPY billions) 13.6 0.9 12.7 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 10.3 0.6 0.7 0.8 Revenue up 0.7 0.7 0.7 0.7 0.8 3.1 2.9 2.8 0.6 2.7 3.5 +35.
Slide 30: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.64 Increased 5.7-fold 0.44 0.41 0.42 0.31 0.32 0.28 0.25 0.24 0.25 0.25 0.23 YoY 0.21 0.20 0.19 0.17 0.14 0.09 0.06 0.05 0.06 0.04 -0.05 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 16 17 18 19 20 21 30
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. Topics 31
Slide 32: Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter (JPY billions) 9.1 9.0 8.2 Revenue up 8.1 7.8 7.9 7.5 7.4 7.5 7.4 7.3 12.9% 6.7 6.7 6.8 6.9 6.9 6.7 6.9 6.5 6.3 6.0 6.0 5.5 Net Profit up 48.0% Sales 3.81 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 OP 2.07 1.97 2.05 1.80
Slide 33: Finance | FX Trading Volume
Internet Finance | FX Trading Volume 377 314 No.1 285 261 206 182 market share in 27.7% Japan 24.1% 24.7% 20.7% 21.7% 21.1% 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 Q3 16 17 18 19 20 21 - Prepared based on Results Presentation of GMO
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. Topics 34
Slide 35: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment business ┗Issue stablecoin 35
Slide 36: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales (JPY billions) 6.8 1.3 5.7 0.04 1.5 Revenue up 2.6 2.6 2.7 3.6 121% YoY 5.4 1.6 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 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 -0.1 0.1 Q2
Slide 37: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit (JPY billions) 4.02 Profit up 1.09B 2.34 1.48 0.53 0.25 0.67 0.42 0.42 0.38 YoY 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 17 18 19 20 21 37
Slide 38: Cryptoassets payment business | Stablecoin GYEN
Cryptoassets payment business | Stablecoin GYEN Determined the listing of GYEN on the world’s leading crypto assets exchange 38
Slide 39: 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 39
Slide 40: NFT marketplace
NFT marketplace Launched beta version (on August 31) Launch official version (December, tentative) 40
Slide 41: GMO AOZORA NET BANK
GMO AOZORA NET BANK GMO
Slide 42: Net Bank | Entrepreneur & challenger support project
Net Bank | Entrepreneur & challenger support project Incorporated financial services (issue Company’s scale dedicated card, etc.) Bank API connection, Aims to grow with small fees to transfer money, loans, etc. businesses & startups Account opening Time passed since founding 42
Slide 43: Net Bank | Reduce fees to transfer money
Net Bank | Reduce fees to transfer money Offer the lowest commission rate in the industry by utilizing the strengths of in-house development*1 ※2 Transfer money to Before change After change*2 GMO Aozora Net Bank Free Free Individual JPY 157*3 JPY 75 Other banks 261 145 Business/self- JPY 30K or mor
Slide 44: Net Bank | Number of business accounts
Net Bank | Number of business accounts (thousands) 27.3 23.2 19.5 Increased 2.0-fold 16.2 13.1 10.0 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 20 21 44
Slide 45: Net Bank | Number of bank API connection companies
Net Bank | Number of bank API connection companies 167 137 106 Growing as bank API's 85 67 front runner 48 35 18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 20 21 45
Slide 46: Next-generation air mobility
Next-generation air mobility 46
Slide 47: Flying car market estimates
Flying car market estimates JPY 160 T* * Global forecast in 2040. Source: “Are Flying Cars Preparing for Takeoff?” published by Morgan Stanley Research on January 23, 2019 47
Slide 48: Next-generation air mobility
Next-generation air mobility • Making capital investments in fund specializing in the area of drone and air mobility • Giving technology to companies the fund makes capital investments in • Joining in the Public-Private Council for Air Transportation Revolution operated by the Ministry of Economy, T
Slide 49: Next-generation air mobility: Use SSL, enhance security
Next-generation air mobility Drone, flying car Control system ① Access encryption ② Certification of airframe Use SSL, enhance security 49
Slide 50: Internet for Everyone
Internet for Everyone 50 50
Slide 51: Earnings announcement date and disclaimer
We are planning on making an earnings announcement for FY2021 after 3 pm on February 10, 2022. This document includes projections based on expectations, premises and plans as of November 11, 2021. These projections may differ from actual results due to factors including changes in the global economy
Slide 52: Appendix
Appendix 52
Slide 53: 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 53
Slide 54: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO-I(9449) GMO CLICK Securities GMO-FH Internet Finance (7177) Cryptoassets GMO Coin Other Other Incubation Other Listed subsidiaries 54
Slide 55: 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 56: Consolidated results transition
Consolidated results transition Increased sales and profits in 12 consecutive term Sales Profit (JPY billion) (JPY billion) 210.5 27.89 6.7 25.27 0.76 196.1 185.1 21.78 2.53 6.0 30.8 8.2 1.22 0.95 28.5 10.61 154.2 30.7 46.8 17.64 135.0 17.01 8.51 126.3 26.3 10.75 46.8 14.80 0.42 27.3 46.7 12.93 109.
Slide 57: Consolidated Balance Sheet
Consolidated Balance Sheet GMO End of End of (JPY millions) Change Financial HD 12/2020 9/2021 (End of 9/2021) Current Assets 1,005,226 1,273,552 268,326 969,063 Cash & Deposits 220,745 256,341 35,595 76,044 Fixed Assets 65,318 95,857 30,538 27,749 Goodwill 657 20,138 19,481 16,779 Software 7,924 9,
Slide 58: Consolidated Profit and Loss
Consolidated Profit and Loss Q3'20 Q3'21 supplementary (JPY millions) Change (1-9/2020) (1-9/2021) information Net Sales 157,311 176,951 12.5% Gross Profit on Sales 79,645 93,004 16.8% Operating Profit 22,518 30,633 36.0% （OP Margin） 14.3% 17.3% +3.4pt Non Operating Profit and Loss -614 1,589 - 20.Q
Slide 59: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 8.9% Net sales 5.04 6.5％ 5.9％ 4.84 4.36 5.7％ Global 5.0％ 3.42 YoY Sales Ratio 3.20 3.6% 3.07 67.5% UP 2.98 2.97 3.00 3.01 2.80 2.88 2.84 2.86 1.93 1.66 1.67 Net 1.44 1.39 1.41 1.35 Sales 1.09 1.14 Since Q2 FY2020, MacroKiosk is no longer a consolid
Slide 60: Cost Composition (Consolidated)
Cost Composition (Consolidated) (JPY millions) 50,000 45,000 10,635 9,997 10,147 10,035 Human resources 40,000 9,164 9,457 Advertising and promotion 1,786 2,848 2,695 2,860 35,000 2,307 2,715 2,910 Depreciation and leases 2,169 2,948 2,834 2,615 2,841 3,939 3,704 30,000 3,782 3,861 Outsourcing costs
Slide 61: Internet Infrastructure
Internet Infrastructure 61 61
Slide 62: Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 3.63 3.45 Payment business 3.12 Other 3.04 Cost distribution 2.84 2.68 2.58 2.42 2.34 2.19 2.08 2.08 1.75 1.73 1.58 1.63 1.95 1.63 1.68 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 1.38 1.36 0.87 1.25 1.1
Slide 63: Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 10,892 2,229 10,002 2,128 8,603 1,721 6,902 1,305 4,766 3,497 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017
Slide 64: Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 6,867 6,895 2,449 6,714 2,375 6,211 2,204 6,027 2,100 5,759 2,045 2,015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
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: Registration progress
Internet Infrastructure | Domain Business“ ”: Registration progress (thousands) 986 957 829 792 731 722 696 676 669 656 614 637 603 588 539 530 Renewal rate: 71.4%* 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 2016 2017 2018 2019 2020 2021 * Renewal rate for doma
Slide 67: Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,107 1,052 3,810 3,614 3,606 936 3,451 3,494 852 867 799 777 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2
Slide 68: 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 68
Slide 69: Infrastructure | Ecommerce Solutions - KPIs
Internet Infrastructure | Ecommerce Solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) 4,197 Recurring revenue (ASP shopping cart) 3,956 69.7 68.8 68.5 67.0 64.2 64.5 2,984 2,620 2,167 2,021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 70: Infrastructure | Digital Certificate and eSignature business
Internet Infrastructure | Digital Certificate and eSignature business The number of SSL valid digital certificates 【 】 ■ Overseas ■Domestic 1.50 (millions) 2020Q1 Q2 Q3 Q4 2021Q1 Q2 Q3 * The number of valid digital certificates is the number of certificates that are actually used. 70
Slide 71: 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 72: 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 123,938 stores ※1 (end of Sep 2021) EC Convenience store BtoB・BtoC・CtoC Account transfer PC Public money Carrier B
Slide 73: Infrastructure | Payment Processing - KPIs
Internet Infrastructure | Payment Processing - KPIs Group-wide annual TRX value reaches ¥8.0 trillion ※1 ※2 Operating stores: 123,938 stores, TRX volume approx. 970 mil., TRX value approx. ¥2.0 trillion. (Stores) (¥100 Mil.) (10K Cases) 100,000 (Reference)Online payment: TRX volume approx. 920 mil.,
Slide 74: Internet Finance
Internet Finance 74 74
Slide 75: Finance | Net sales by product
Internet Finance | Net sales by product (JPY millions) 586 474 322 1,462 313 1,459 5,549 5,052 4,725 4,310 3,881 3,335 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 2016 2017 2018 2019 2020 2021 *
Slide 76: Finance | FX, CFD, and Securities: KPIs
Internet Finance | FX, CFD, and Securities : KPIs (JPY millions) FX CFD Securities Trading Volume Trading value Trading value JPY 285 tr JPY 14.5 tr JPY 3.0 tr Q3 FY2020: JPY 377tr Q3 FY2020: JPY 12.7tr Q3 FY2020: JPY 2.9tr Share of Trading Account Share of Trading Volume Value 21.1 % 161 K 3.2 % Se
Slide 77: Finance | FX Business Model (over the counter derivatives)
Internet Finance | FX Business Model (over the counter derivatives) • 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 cost
Slide 78: FX | Gaika ex byGMO just joined our group
FX｜Gaika ex byGMO just joined our group GMO-FH has completed the acquisition procedures of Gaika ex byGMO shares, making it a wholly owned subsidiary on 27th Sep,2021. Aiming for the market share expansion in transaction volume and acceleration of profitability improvement by mutual cooperation. htt
Slide 79: FX | BS changes after owing Gaika ex byGMO
FX｜BS changes after owing Gaika ex byGMO BS (end of Sep. 2021) BS (end of Sep.2021) Debt Asset 118.5B Debt 130.6B 955.2B Asset Net worth Equivalent to (+267.2B) net assets Acquisition price 996.8B 12.1B (+271.4B) Difference: 16.6B 28.7B Net worth • Difference of JPY 16.6 B recognized as a 41.5B good
Slide 80: FX | Gaika ex byGMO financial results before joining
FX｜Gaika ex byGMO financial results before joining Revenue Profit Net income 97 9.7 27 2.7 (JPY billions) 85 8.5 25 2.5 2.1 21 7.7 77 19 1.9 15 1.5 0.99 Mar.FY19 19/3期 Mar.FY20 20/3期 Mar.FY21 21/3期 Mar.FY19 19/3期 Mar.FY20 20/3期 Mar.FY21 21/3期 Mar.FY19 19/3期 Mar.FY20 20/3期 Mar.FY21 21/3期 * Reflecting
Slide 81: Cryptoassets
Cryptoassets 81 81
Slide 82: Cryptoasset Trading | Trading value and customer accounts
Cryptoasset Trading | Trading value and customer accounts Trading value (JPY billions) Customer accounts (thousands) 444 424 11,575 374 341 327 319 311 299 289 271 8,121 8,062 245 225 197 169 144 5,007 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
Slide 83: Other
Other 83 83
Slide 84: Group News ① 3 mths to September
Group News ① 3 mths to September 7/14 First in Japan! GMO GlobalSign HD's e-contract service GMO Sign, which has a No.1 market share, is now compatible with WAN-Sign for digital signatures: Realizing DX of Japanese society by discouraging the use of seal impression, and boosting the user-friendlines
Slide 85: Group News ② 3mths to September
Group News ② 3mths to September Next-generation compatible all-in-one payment terminal released in September 2021: Mobile payment terminal 8/31 A920 The number of elementary and junior high schools that introduce GMO Optical Access for Education, an 9/14 Internet connection dedicated to an education
Slide 86: Internet for Everyone
Internet for Everyone 86 86