Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q1 2023 Earnings Presentation
113 slides from Gmo Internet's earnings presentation, May 11, 2023
Slide 1: Fiscal Year 2023 First Quarter Results Presentation
Fiscal Year 2023 First Quarter Results Presentation May 11, 2023 1
Slide 2: Overview, Group Overview, Segment Report, Topics
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: Q1 FY2023
Overview | Executive Summary: Q1 FY2023 Q1’22 Q1’23 YoY (JPY billions) Change (Jan-Mar) (Jan-Mar) Change Net Sales 56.0 65.5 +9.5 +17.0% Operating Profit 11.1 10.9 -0.1 -1.2% Ordinary Profit 12.0 11.9 -0.1 -1.4% Net Profit 6.4 3.9 -2.4 -38.9% 3
Slide 4: Overview | Executive Summary: Q1 FY2023
Overview | Executive Summary: Q1 FY2023 Evaluation Record 42.1B （Up 21.3％ YoY） Services each hold top share in their respective high Net sales JPY Internet markets Infrastructure Ierae and offline payment contributed to an OP JPY 6.9B （Up 11.3％ YoY） increase in net sales Net In-house products and me
Slide 5: Overview | Executive Summary: Q1 FY2023
Overview | Executive Summary: Q1 FY2023 Net sales OP Up 9.5B YoY Down 0.1B YoY (JPY billions) (JPY billions) +1.0 +0.3 +1.9 65.5 +0.1 +0.7 +7.4 -0.8 -0.3 -0.2 11.1 10.9 -0.4 -0.1 -0.0 56.0 Q1‘ Q1‘ Infrastructure Finance Ad Cryptoassets VC Other Q1‘ Q1‘ 22 23 Infrastructure Finance Ad Cryptoassets VC
Slide 6: 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 6
Slide 7: Overview | Shareholder Returns (dividend per share)
Overview | Shareholder Returns (dividend per share) (JPY) 52.7 47.6 12.6 FY2023 Q1 29.5 30.8 10.8 28.0 Dividend per share 12.2 24.2 10.6 11.8 12.2 5.0 7.2 7.4 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 7
Slide 8: Strengths
Strengths 8
Slide 9: Operations and development of our own technology
Strengths (1) Operations and development of our own technology 9
Slide 10: Operations and development of our own technology
Strengths (1) | Operations and development of our own technology 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 48.8％ 50.3％ 60% 44.2％ 45.6％ 45.5％ 45.0％ engineers & creators Partners % Engineers Q1
Slide 11: Solid recurring revenues
Strengths (2) Solid recurring revenues 11
Slide 12: Indispensable products and recurring revenue business model
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 12
Slide 13: Consolidated net sales: Sustainable growth
Strengths (2) | Consolidated net sales (JPY billions) 245.6* Sustainable growth 7.9 * "Accounting standards related to revenue recognition" (accounting standard No. 29) 00 02 04 06 08 10 12 14 16 18 20 22 13
Slide 14: Analysis of consolidated net sales
Strengths (2) | Analysis of consolidated net sales 53.0% 241.6 245.6 36.1% 210.5 196.1 (JPY billions) 185.1 123.9 115.5 Solid recurring 154.2 100.5 revenues that 135.0 support sustainable 103.0 126.3 104.5 109.3 growth 82.9 79.2 79.4 69.9 130.1 110.0 117.7 93.1 Solid recurring revenue* 71.3 80.6 Oth
Slide 15: Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 10K*1 (JPY) 9,850*1 × Solid recurring (JPY billions) revenue 130.1*3 Approx. 13M contracts*2 Number of × contracts 13.22M*2 Approx. JPY 14 15 16 17 18 19 20 21 22 130B *3 15
Slide 16: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts +0.58 +1.04 (millions) +1.31 +0.32 13.22 13.52 12.88 12.83 12.93 12.63 12.11 11.55 11.51 11.58 11.71 11.72 11.26 11.43 10.92 10.73 10.35 9.94 9.60 9.09 9.27 Solid revenue base 13.52M customers Increased approx. 0.81M/year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 17: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 17
Slide 18: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base + financial customer base 16.03M customers Up 0.77M 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) i
Slide 19: 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 Group Prime 295.4 3769 GMO Payment Gateway Prime 818.4 40.7% 333.2 4051 GMO Financial Gate Growth 95.1 23.4%*3 22.2 7177 GMO Fi
Slide 20: 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 61.2 62.5 1.2 59.2 4.3 12.8 2.0 56.4 57.5 6.8 56.0 53.6 52.8 53.2 5.7 1.2 0.7 12.7 3.6 50.9 50.8 11.3 2.0 11.3 Revenue up 1.4 0.8 2.7 49.1 49.1 47.5 48.0 1.6 8.2 6.9 10.3 10.0 45.8 46.8 1.0 9
Slide 21: Group Overview | Profit by Segment
Group Overview | Profit by Segment 19.84 (JPY billions) 10.16 12.47 0.07 11.12 10.99 10.53 0.10 Profit down 10.14 0.15 4.02 1.24 8.97 3.76 1.2% 8.28 8.13 2.34 8.01 3.65 7.06 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 5.00 5.34 5.37 2.12 0.38 0.54 3.39 0.21 2
Slide 22: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 22
Slide 23: 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 81.5 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 57.2 % ＊3 No. 1 ASP Cart 56K paid stores No. 1 Domestic market share
Slide 24: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Changes in rules to (JPY billions) record the revenues* 42.1 40.5 1.0 1.1 38.0 36.6 0.7 35.8 34.7 0.8 34.6 34.3 0.7 33.5 33.5 33.9 0.7 0.5 0.5 Record 32.8 1.0 0.8 15.3 high 31.3 2.0 1.3 14.5 Revenue up 29.6 1.7 13.1 28.4 28.5 12.6 1.2 12.0 27.1 27.4
Slide 25: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 6.99 6.28 Record high 5.53 5.58 5.36 4.67 4.74 4.93 4.75 Profit up 11.3% 4.01 4.02 3.76 3.87 3.61 3.58 3.72 3.15 3.09 2.93 YoY 2.76 2.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 19 20 21 22 23 25
Slide 26: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No. 1 Number of contracts: No. 1 26
Slide 27: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts (millions) 1.25M Number of e-contract accounts 1.07 No. 1 Increased User companies (extract) 2.1-fold 0.58 YoY 2020/4/15 Declaration of Abolition of Seals 2020/5/13 Campaign launched Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 28: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (millions) 2.00M Dual 1.70 crown Increased Number of contracts 2.0-fold 0.99 No. 1 YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 19 20 21 22 23 28
Slide 29: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government Adoption by 34 local governments was determined ※1 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*2 Kanagawa Gunma Yamaguchi Oita Saga Shibuya-ku,
Slide 30: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 128 128 118 Down 0.3% 85 78 72 YoY 122 120 113 80 74 69 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 18 19 20 21 22 23 30
Slide 31: Internet Infrastructure | Price Increase
Internet Infrastructure | Price Increase Implemented cost increase in response to an increase in costs due to rise in electricity charges, weak yen, semiconductor shortages, etc. ▶No impact on customer retention rate and the number of new applications ▶Gradual impact on financial results due to pror
Slide 32: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 32
Slide 33: 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 12.3 12.4 Revenue up 12.2 12.0 12.0 12.0 0.8 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 0.9 0.8 0.9 11.0 0.8 0.7 0.7 10.7 0.7 3.0 12.8% 0.8 0.7 3.7 0.6 3.5 3.1 2.9 2.8 2.7 2.8 2.6 2.8 2.7
Slide 34: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.92 0.64 0.73 0.66 Profit down 28.0% 0.54 0.42 0.31 0.32 0.24 0.14 0.17 0.25 0.25 YoY 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 18 19 20 21 22 23 34
Slide 35: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 35
Slide 36: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter 12.7 (JPY billions) 11.3 11.3 10.7 10.3 10.0 Revenue up 18.5% 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 Profit up 6.0 3.1% Net Sales * 3.81 3.85 3.65 3.76 3.30 3.39 2.91 3.10 2.97 2.60 2.58 2.62 2.68 YoY 2.26 2.31 2.12 1.80 1.77 1.63
Slide 37: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) FX : Recovery 2,412 Continues. 2,408 1,484 1,475 CFD : Record high. 537 7,917 6,337 5,800 5,218 4,651 4,093 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 Q
Slide 38: Internet Finance | FX net sales and trading volume
Internet Finance | FX net sales and trading volume 607 515 FX profitability 292 341 308 improved QoQ 202 7,917 ■ Net sales of OTC-FX/binary options (JPY millions) 6,337 5,800 5,218 ■ FX Trading volume (JPY trillions)* 4,651 4,093 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 20
Slide 39: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 39
Slide 40: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 40
Slide 41: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales (JPY billions) 6.8 1.3 5.7 1.5 4.3 Revenue down 2.6 2.6 2.7 3.6 0.7 41.7% 2.3 2.1 0.6 5.4 1.6 1.8 2.0 2.0 YoY 1.2 1.2 1.6 4.1 1.2 1.2 0.6 1.5 1.4 0.2 0.2 0.8 1.2 1.2 1.0 0.2 0.4 0.8 ■ payment 0.6 0.7 0.2 2.1 2.0 1.7 0.3 0.7 * 0.2 1.6 ■ mining 1.4 1.3 1.4 0.2 1.4 0.0
Slide 42: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit (JPY billions) 4.02 2.34 Operating loss 0.33B 1.48 JPY 1.24 * 0.67 0.71 0.42 0.42 0.38 0.25 0.21 0.15 0.10 0.08 -0.22 -0.26 -0.33 -0.39 -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 * The Company started recording hedging co
Slide 43: Overview, Group Overview, Segment Report, Topics
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 43
Slide 44: Security | Slogan: Safe and Secure Internet for Everyone
Security | Slogan Safe and Secure Internet for Everyone 44
Slide 45: Security | Three areas
Security | Three areas 1. Cryptosecurity 2. Cybersecurity 3. Brand security 45
Slide 46: Japan's strongest white hat hacker organization
Japan's strongest white hat hacker organization 46
Slide 47: Cybersecurity business | Service usage
Cybersecurity business | Service usage 47
Slide 48: Cybersecurity business | Achievements
Cybersecurity business | Achievements Cyber Security Assessment More than 6,000 cases Received World's Encouragement Award largest contingent No.1 from the Minister of Internal Affairs and Communications Largest Received a Received a contingent in Japan No.1 letter of thanks from the National Police
Slide 49: Cybersecurity business | New service
Cybersecurity business | New service The biggest business risk in 2023 is cyber attacks *Through December 31, 2023 Check your company's website for free 49
Slide 50: Cybersecurity business | Synergy
Cybersecurity business | Synergy Use the customer base of 13.52 million Main Marketing strategy service/product Local governments Certain large companies Push Large & medium- sized companies Pull small and medium-sized companies 50
Slide 51: Cybersecurity business | Mid- to long-term growth
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 51
Slide 52: Adapting to AI Technology
Adapting to Al Technology GMO
Slide 53: About AI | CEO Kumagai's tweets (Feb-Mar)
About AI | CEO Kumagai's tweets (Feb-Mar) I personally am making great use of it. The whole group will be using To actively promote the use of ChatGPT, we will hold the "ChatGPT it in the future as well. Business Application Contest" with a total prize money of 10 million yen. How will Japanese comp
Slide 54: About AI | CEO Kumagai's tweets (Apr-May)
About AI | CEO Kumagai's tweets (Apr-May) OpenAI released ChatGPT API on March 1, followed by plug-in I have known the Internet for 30 years. I have been running an internet support on March 23. company for 28 years.I feel that this industry has changed the most in the last 3 months. March 2023 will
Slide 55: from Anticipation to Alarm
from Anticipation to Alarm 55
Slide 56: Our approach to ChatGPT
Our approach to ChatGPT Proactive use to improve operational efficiency and introduction to services Division Description Timing Started using ChatGPT in operations March 2023 （All entities） Started marketing support function in 3 EC-related services March 2023 Launched AI research project “GMO TECH
Slide 57: No. 1 AI Application Group
No. 1 AI Application Group 57
Slide 58: Internet for Everyone
Internet for Everyone 58 58
Slide 59: Next earnings announcement and forward-looking statements
We are planning on making an earnings announcement for FY2023 Second Quarter after 3 pm on August 9, 2023. This document includes projections based on expectations, premises and plans as of May 11, 2023. These projections may differ from actual results due to factors including changes in the global
Slide 60: Appendix
Appendix 60
Slide 61: Group Overview / Financial condition and strategy / Consolidated results / ESG
Group Overview Financial condition and strategy Consolidated results ESG activities 61
Slide 62: Group Overview
Group Overview Company Name GMO Internet Group, Inc. Decentralized group management Founder, Chairman Masatoshi Kumagai in order to adapt rapid changes of and Group CEO Internet industry. Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo (The 2nd Group Head Office) SHI
Slide 63: 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 GAT
Slide 64: Group Structure by each segment (2/2)
Group Structure by each segment(2/2) GMO CLICK Securities GMO-IG(9449) GMO-FH GMO-FH GMO-FH Internet Finance (7177) Gaika ex byGMO Cryptoassets (7177) (7177) GMO Coin Other Other Incubation Other Listed subsidiaries GMO-FH：GMO FINANCIAL HD 64
Slide 65: 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) 65
Slide 66: Financial condition and strategy
Group Overview Financial condition and strategy Consolidated results ESG activities 66
Slide 67: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 12,013 Human resources 11,270 Advertising and promotion 45,000 11,768 11,989 4,218 3,692 Depreciation and leases 40,000 10,602 4,327 4,047 3,749 Outsourcing costs 35,000 3,771 4,724 4,655 3,208 4,012 4,137 Communication costs 30,000 3
Slide 68: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO End of End of (JPY millions) Change Financial HD Internet Group 12/22 3/23 (End of 3/23) (End of 3/23) Current Assets 1,408,015 1,483,746 75,730 1,024,683 138,054 Cash & Deposits 341,970 358,863 16,892 76,713 110,477 Fixed Assets 134,725 140,698 5,973 29,380 105,29
Slide 69: Consolidated Profit and Loss
Consolidated Profit and Loss Q1'22 Q1'23 supplementary (JPY millions) Change (1-3/2022) (1-3/2023) information Net Sales 56,065 65,593 17.0% Gross Profit on Sales 34,276 38,412 12.1% Operating Profit 11,128 10,990 -1.2% （OP Margin） 19.8% 16.8% -3.0pt Non Operating Profit and Loss 971 942 -3.0% Ordin
Slide 70: Financial Strategy
Financial Strategy ・Avoid excessive risk-taking, considering balance of Shareholders equity ・Aiming to increase the absolute amount of Shareholders Equity, 100 Billion yen. Asset management Procurement ①Business Risk investment in principle ①Multiple admitted within 2/3 of each Agile procurement inv
Slide 71: Financial Strategy | Procurement: Multi ways of financing
Financial Strategy｜Procurement① Multi ways of financing • Continuous procurement helps growth capital to be ensured. The way to procure Totall Interest-bearing debt Direct Indirect （JPY 100M） FY20 FY21 FY22 Domestic Total 2,083 2,946 3,911 Debt finance Corporate Bonds Corporate 166 659 717 Individua
Slide 72: Financial Strategy | 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） FY20 FY21 FY22 （％） FY20 FY21 FY22 Corporate bond 2.4 5.7 3.9 Corporate bond 100.0 100.0 100.0 Debt finance Debt finance 3.0 3.8 3
Slide 73: Financial Strategy | Asset management: 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） FY20 FY21 FY22 cash and cash equivalents 2,186 2,340 3,222 Balance of interest debt within 187 2,057 429 793
Slide 74: 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) 74
Slide 75: Group Overview / Financial condition and strategy / Consolidated results
Group Overview Financial condition and strategy Consolidated results ESG activities 75
Slide 76: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 8.8% 9.2％ 7.1％ 5.77 Net sales 6.5% 6.1％ 4.5％ YoY 5.17 Global Sales Ratio 4.36 11.6%UP 3.20 2.97 1.93 Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidated subsidiary. We deducted MacroKiosk values from net sales retroactively to Q1 FY20
Slide 77: Internet Infrastructure
Internet Infrastructure 77 77
Slide 78: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 5.19 4.09 Payment business Other Cost distribution 3.45 2.68 2.60 2.43 2.19 1.75 1.76 1.69 1.63 1.11 -0.27 -0.34 -0.34 -0.51 -0.42 -0.63 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 19 20 21 22 23 78
Slide 79: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) Changes in rules to record the revenues* 2,244 2,266 10,728 10,011 9,420 1,946 9,248 7,744 1,526 5,586 1,065 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 Q
Slide 80: Internet Infrastructure | Provider - KPIs (number of lines)
Internet Infrastructure | Provider - KPIs（number of lines) Optical line (Since July 2021) Others Mobile Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 80
Slide 81: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 7,289 7,189 2,291 7,008 2,221 2,175 6,528 6,549 2,136 2,028 6,065 1,877 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
Slide 82: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 82
Slide 83: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) 1,620 1,125 588 731 829 Renewal rate: 67.9%* 530 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 * Renewal rate for domains registered between September 2016 and February 2021 (2nd r
Slide 84: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) Changes in rules to record the revenues* 1,117 1,093 995 4,810 895 4,484 864 809 3,909 3,740 3,527 3,549 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
Slide 85: 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 85
Slide 86: Internet 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) Changes in rules to record the revenues* 74.5 4,032 71.5 3,995 68.2 65.4 64.6 63.8 3,559 3,250 3,038 2
Slide 87: 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 88: 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 89: Internet Infrastructure | Payment processing - Our Role
Internet Infrastructure | Payment processing -Our Role Connecting merchants and payment companies on contracts, payment data and money flow Consumer Merchant GMO-PG Payment Company ※1 consolidated subsidiaries 160,721stores 40+ Credit card (As of end-March 2023) companies EC Convenience store BtoB・B
Slide 90: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches approx. ¥13.2 trillion 223,041 Proportion of Representative contract in online TRX value：approx. 40%*2 ※1 Figures exclude an operating stores of a specific case and fincode byGMO. Figures exclude the stores related
Slide 91: Online Advertising & Media
Online Advertising & Media 91 91
Slide 92: 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 93: 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 Company A Survey Distribution Company A Panel Data Collection Company’s own Survey Tab
Slide 94: 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 95: Internet Finance
Internet Finance 95 95
Slide 96: Provision for doubtful accounts at Thai securities subsidiary
The recognition of provision for doubtful accounts at consolidated subsidiary in the Thai securities business Background and Response to Recognition of this matter ・In Q4'22, there were suspicious transactions related to More Return shares in the Thai securities market, which raised concerns of unfa
Slide 97: Internet Finance | Domestic FX Volume and share transition (1)
Internet Finance |Domestic FX Volume and share transition(1) Implementing a daily 26.6％ 607 trading limit, 515 24.8％ 22.2％ 19.6％ 19.9％ 19.3％ our market share 341 has declined 308 292 202 ■ 取引高（兆円） Transaction Volume(JPY Tri) ■ 国内シェア（％） Domestic Share(%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 98: Internet Finance | Domestic FX Volume and share transition (2)
Internet Finance |Domestic FX Volume and share transition(2) Despite of a daily trading limit, profitability has improved. Domestic trading volume Domestic share USD／JPY (Sum of 3 companies ※1 (Sum of 3 companies （JPY Trilion） SHARE: At the end March 2023 JAN 2003 JAN 2018 JAN 2023 GMOFH made this m
Slide 99: Internet Finance | CFD Transaction and Profit transition
Internet Finance | CFD Transaction and Profit transition transaction(right) （JPY Trillion） Profit (left) （JPY 1Million） Transaction volume YoY 18.9 %Down Profit YoY 1.4% UP * Prepared based on Results Presentation of GMO-Financial Holdings 99
Slide 100: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY billion） YoY 13.4 %UP * Prepared based on Results Presentation of GMO-Financial Holdings 100
Slide 101: 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 102: Cryptoassets
Cryptoassets 102 102
Slide 103: Cryptoasset Business
Cryptoasset Business ｍining Mining Business Crypto Exchange Exchange business asset payment Payment business ┗ Issuing Stablecoin 103
Slide 104: Cryptoasset Exchange Business | Transaction volume
Cryptoasset Exchange Business | Transaction volume （JPY Billion） YoY 62.7％ DOWN ＜ New Services ＞ • 1st March: "lending premium for cryptocurrency" service to corporate accounts • 22nd March:handling Aster (ASTR) • 26th April:started providing "foreign exchange FX" services * Prepared based on Result
Slide 105: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition Accounts Deposit Asset Accounts （JPY Billion） （thousand accounts） YoY 58K UP Deposit Asset YoY 17.4% DOWN * Prepared based on Results Presentation of GMO-Financial Holdings 105
Slide 106: 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 107: GMO AozoraNet Bank
GMO AozoraNet Bank 107
Slide 108: Net Bank | Number of business accounts
Net Bank | Number of business accounts （Thousands） 77 66 1.9-fold UP YoY 57 47 39 32 27 23 19 16 13 10 6 4 1 3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 23 108
Slide 109: Net Bank | Total number of contracted Embedded Financial service
Net Bank |Total number of contracted Embedded Financial service 454 420 367 Strong trend 322 281 233 196 158 127 103 79 59 39 29 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 20 21 22 23 109
Slide 110: Group Overview / Financial condition and strategy / ESG activities
Group Overview Financial condition and strategy Consolidated results ESG activities 110
Slide 111: ESG | Sustainability management for SDGs
ESG｜Sustainability management for SDGs Our business help Social and environmental issues to be solved. ・ ・ ・ 111
Slide 112: ESG | Disclosure processes
ESG｜Disclosure processes ◼ Released our Activities for SDGs ■Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion committee ◼ Updated CG report Preferentially atempting to expand ◼ Introduced of a group executive officer 2022 system ESG disclosure ◼ Expanding ESG disclosure ht
Slide 113: Internet for Everyone
Internet for Everyone 113 113