Gmo Internet Group, Inc. · TSE:9449
Gmo Internet — Q1 2020 Earnings Presentation
88 slides from Gmo Internet's earnings presentation, May 12, 2020
Slide 1: Fiscal Year 2020 First Quarter Results Presentation
Fiscal Year 2020 First Quarter Results Presentation STOCK CODE: 9449 May 12, 2020 1
Slide 2: Introduction
Introduction Masatoshi Kumagai [GMO] [Support the world with the Internet] Teleworking, online medical examination, online class. Many need/want what we have been doing for 25 years. Comrades involved in the Internet industry, let's work together to confront the national crisis. 10:49 p.m. on April
Slide 3: Impact of COVID-19 on the business activities in Q1
Introduction | Impact of COVID-19 on the business activities in Q1 Evaluation Positive Negative • Change to new lifestyle • Focusing more on online sales → Provider/hosting & than offline sales for major Internet cloud/security customers Infrastructure • Consumption increased due to stay-at-home ord
Slide 4: Agenda
1. Overview 2. Financial Results 3. Segment Report i) Group Overview ii) Internet Infrastructure iii) Online Advertising & Media iv) Internet Finance v) Cryptoassets (Cryptocurrency) 4. GMO Aozora Net bank 4
Slide 5: Executive Summary: Q1 FY2020
Overview | Executive Summary: Q1 FY2020 Q1’19 Q1’20 YoY (JPY billions) Change (Jan-Mar) (Jan-Mar) Change Record Net Sales 46.8 53.6 +6.83 +14.6％ high Operating Profit 5.00 8.28 +3.28 +65.7％ Ordinary Profit 4.88 8.05 +3.16 +64.9％ Net Profit 2.02 2.25 +0.23 +11.4％ 5
Slide 6: Executive Summary: Q1 FY2020
Overview | Executive Summary: Q1 FY2020 Record high Internet Net sales JPY 31.31B (Up 13.9％ YoY) Growth in payment and Infrastructure OP JPY 3.87B (Up 7.1％ YoY) provider - Online Ad saw steady Net sales JPY 12.33B (Up 2.1％ YoY) growth Online Ad & Media - Media’s performance OP JPY 0.17B (Down 28.4％
Slide 7: Executive Summary: Q1 FY2020
Overview | Executive Summary: Q1 FY2020 Net sales +2.7 +0.2 +0.1 +0.4 53.6 (JPY billions) +3.8 -0.5 Revenue up 46.8 6.8B Q1’19 Infrastructure Finance Ad Cryptoassets VC Other Q1’20 OP +0.65 +0.33 +0.18 8.28 (JPY billions) +1.92 Profit up 5.00 +0.25 -0.06 3.28B Q1’19 Infrastructure Finance Ad Cryptoa
Slide 8: 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 9: 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 9
Slide 10: Net Sales by Segment
Financial Results | Net Sales by Segment (JPY billions) 53.6 50.9 1.4 49.1 49.1 47.5 48.0 2.4 45.8 46.8 2.1 1.5 1.0 2.3 9.1 2.0 43.7 2.6 1.2 41.8 2.6 6.7 7.4 7.9 7.5 6.3 38.2 38.0 7.4 Revenue up 8.1 7.5 36.0 35.1 6.9 12.3 33.1 33.5 33.1 11.8 14.6％ 32.5 6.8 6.9 30.9 31.2 31.5 5.5 11.5 11.3 12.0 12.0
Slide 11: Profit by Segment
Financial Results | Profit by Segment 8.97 (JPY billions) 8.28 1.91 0.44 0.42 6.51 5.95 0.42 5.26 1.56 0.67 Profit up 5.65 5.53 4.46 5.34 3.39 0.25 0.10 5.00 0.38 5.03 0.11 2.91 0.48 65.7％ 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 0.17 2.05 0
Slide 12: 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 12
Slide 13: 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 1 267.5 3769 GMO Payment Gateway TSE1 728.1 42.4％ 308.7 7177 GMO Financial Holdings TSE JQS 69.9 63.0％ 44.0 3788 GMO CLOUD
Slide 14: Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base 13.04M customers (Infrastructure and Finance) Up 1.26M YoY *Net sales ratio is calculated based on the numbers before cancelling inter-segment transactions. *13.04M is an aggregate number of customers (the actual number) in Infrastr
Slide 15: Strengths: Technology
Group Overview | Strengths: Technology 6,001 6,058 5,995 6,012 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 over 50% 4,876 4,600 4,633 4,415 4,435 4,188 45.5％ engineers 45.4％ 44.8％ 44.2％ 43.2％ 41.2％ Partners % Engineers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 16: 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 16
Slide 17: Collection of No. 1 services
Internet Infrastructure | Collection of No. 1 services 87.4 Domestic market share at Strong No. 1 Domain Registry ％*1 87.2 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 69,821 paid stores 50.5 Domestic market share a
Slide 18: Internet Infrastructure: Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment (JPY billions) 31.3 29.6 1.7 28.4 28.5 1.2 27.1 27.4 1.6 1.1 25.4 1.2 1.5 24.8 Record 1.4 9.3 23.3 23.3 high Revenue up 1.8 9.0 8.4 1.3 1.6 8.0 21.0 8.1 7.8 20.4 19.7 13.9％ 1.4 7.3 1.4 6.8 1.6 1.2 17.6 7.3 6.7 1.5 1.5 1.6 16.5 0.7 1.5 1.5 3.2 15.8 5
Slide 19: Internet Infrastructure: Operating Profit
Internet Infrastructure | Operating Profit (JPY billions) 3.87 3.76 3.61 3.58 Record 3.15 3.09 high Profit up 2.93 2.76 2.58 7.1％ 2.50 2.15 1.96 2.02 1.80 1.65 YoY 1.59 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 2015 2016 2017 2018 2019 2020 19
Slide 20: Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) 2.68 2.42 2.34 Payment 2.19 2.08 2.08 1.75 1.73 1.58 1.63 1.83 Other 1.76 1.40 1.69 1.33 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 1.11 0.76 0.81 1.06 0.67 0.70 0.68 0.66 0.66 0.51 0.57 0.49 0.29 -0.14
Slide 21: Internet Infrastructure: Contracts
Internet Infrastructure | Contracts (millions) 11.43 11.26 10.93 10.74 10.36 9.95 9.60 9.27 8.97 8.98 9.10 8.61 8.72 8.77 8.75 8.35 Solid revenue base 7.88 7.68 7.16 6.85 11.43M 6.45 customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2019 2020 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: 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 11.3 11.8 11.5 0.7 11.4 0.8 0.9 0.6 11.1 11.1 11.0 10.7 10.7 11.0 0.9 0.8 0.7 0.8 0.7 0.7 10.3 10.3 0.6 0.7 0.7 0.8 0.7 0.8 0.7 9.5 Revenue up 0.6 0.7 3.1 2.8 2.8 2.9 9.0 2.8 2.7 2.6 3.5 0.7 2.7 3.3 2.1％ 0.5 3.8
Slide 24: Online Advertising & Media: Operating Profit
Online Advertising & Media | Operating Profit (JPY billions) 0.56 0.44 Profit down 28.4% 0.41 0.31 0.32 0.28 0.21 0.26 0.21 0.20 0.25 0.23 0.24 YoY 0.19 0.17 0.15 0.14 0.09 0.06 0.05 0.06 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2019 2020 24
Slide 25: 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 25
Slide 26: Internet Finance: Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter (JPY billions) 9.1 8.1 Record 7.8 7.8 7.9 Revenue up high 7.5 7.6 7.5 7.4 7.5 7.4 6.8 6.9 6.9 43.1% 6.7 6.7 6.7 6.7 6.3 6.0 5.5 Net Profit up 131.0% Sales 3.31 3.30 3.39 YoY 2.80 2.91 2.47 2.60 2.58 2.18 2.19 2.07 2.24 2.35 2.33 2.26 2.31 1.97 2.0
Slide 27: Internet Finance: FX Trading Volume
Internet Finance | FX Trading Volume 413 370 363 340 296 Trading volume up 27.3％ 205 65.6％ 21.9％ 25.8％ 24.8％ 22.2％ 19.6％ YoY 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 2015 2016 2017 2018 2019 2020 Prepared based on Results Presentation of GMO
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 (Cryptocurrency) 4. GMO Aozora Net bank 28
Slide 29: 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 30: Cryptoassets business: Historical performance by quarter
Cryptoassets business | Historical performance by quarter (JPY billions) 2.65 2.61 2.33 2.10 1.57 1.43 0.96 1.29 1.09 Revenue and profit Net Sales 0.53 0.63 0.67 were up YoY and QoQ 0.25 0.10 0.42 0.08 0.42 -0.07-0.23 -0.22 OP -0.73 -0.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 2020 30
Slide 31: Cryptoassets Mining business: Historical performance
Cryptoassets Mining business | Historical performance by quarter (JPY billions) 1.29 1.23 1.17 0.79 0.61 0.61 0.49 Relocation of mining centers: transition period 0.25 0.23 0.09 Net sales* 0.19 0.17 0.11 -0.05 -0.12 -0.11 OP -0.36 -0.65 -1.21 *Gross figure including revaluation gain (loss) of crypto
Slide 32: Cryptoassets Trading business: 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 0.50 Rise in trading volume Net Sales 0.50 0.19 0.55 0.74 0.50 0.54 Revenue and profit were up QoQ 0.24 0.31 0.21 -0.07-0.23 -0.16 OP -0.76 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 201
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: 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 35: Net Bank: API integration
Net Bank | API integration Become No. 1 in terms of the number of bank API connection 18 firms → 35 firms （Q4 ’19 ） （Q1 ’20 ） freee株式会社/株式会社ザイム/マネーツリー株式会社/株式会社マネーフォワード フォビジャパン株式会社/トランスゲートウェイ株式会社/コインチェック株式会社 GMOコイン株式会社/ Queen Bee Capital株式会社/株式会社キャリア 35
Slide 36: Net Bank: Accelerating API connection
Net Bank | Accelerating API connection First Japanese bank API Lab Opening up staging environment of API development for free (from April 7, 2020) SANDBOX [Test environment of API] × BAR [Community] 36
Slide 37: Conclusion: Future outlook
Conclusion | Future outlook Assumption Outlook • Change in society due to new coronavirus • Expect current trend to • Promoting cashless penetration continue Internet • Accelerating DX Infrastructure • “.gmo,”the world’s first dedicated domain for IoT Online Ad & • Worsening external environment. Wo
Slide 38: Introduction
Masatoshi Kumagai [GMO] [Support the world with the Internet] Teleworking, online medical examination, online class. Many need/want what we have been doing for 25 years. Comrades involved in the Internet industry, let's work together to confront the national crisis. 10:49 p.m. on April 19, 2020 38
Slide 39: Internet for Everyone
Internet for Everyone 39 39
Slide 40: Next earnings announcement and cautionary notes
We are planning on making an earnings announcement for FY2020 Second Quarter after 3 pm on August 11, 2020. This document includes projections based on expectations, premises and plans as of May 12, 2020. These projections may differ from actual results due to factors including changes in the global
Slide 41: Appendix
Appendix 41
Slide 42: Significant Group Companies
Significant Group Companies 141 Group Companies (114 consolidated, 20 non-consolidated, 4 equity method affiliates, 3 non-equity method affiliates) *As of March 2020 Internet Infrastructure GMO Internet, Inc. (TSE:9449) - Europe Internet Finance (UK) GMO Payment Gateway, Inc. (TSE:3769) GMO Financia
Slide 43: 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 44: Consolidated Balance Sheet
Consolidated Balance Sheet GMO End of End of (JPY millions) Change Financial HD Change 12/2019 3/2020 (End of 3/2020) Current Assets 811,083 844,984 33,901 618,744 20,598 Cash & Deposits 160,315 207,319 47,003 88,456 26,738 Fixed Assets 60,130 57,510 -2,619 8,010 -371 Goodwill 2,778 2,605 -173 407 -
Slide 45: Consolidated Profit and Loss
Consolidated Profit and Loss Q1'19 Q1'20 supplementary (JPY millions) Change (1-3/2019) (1-3/2020) information Net Sales 46,863 53,699 14.6% Gross Profit on Sales 22,482 27,377 21.8% Operating Profit 5,000 8,283 65.7% （OP Margin） 10.7% 15.4% +4.8pt Non Operating Profit and Loss -114 -226 - Ordinary
Slide 46: Revenue Breakdown by Segment
Revenue Breakdown by Segment (JPY millions) 2019/Q1 2019/Q2 2019/Q3 2019/Q4 2020/Q1 ◆Internet Infrastructure Internet provider 7,744 8,429 8,603 8,841 9,248 Domain 2,234 2,380 2,204 2,255 2,394 Cloud & hosting 3,549 3,610 3,606 3,602 3,740 Ecommercd solutions 3,038 2,816 2,984 2,985 3,250 Security 1
Slide 47: Global Operations: Locations
Global Operations | Locations 21 countries, 72 locations, 1,470 global partners (“staffs”) Infrastructure Finance Mining *As of Mar. 2020 47
Slide 48: Global Operations: Global Net Sales
Global Operations | Global Net Sales (JPY billions) 6.8％ 9.0％ 8.7％ 6.4％ 4.67 4.43 4.31 4.22 4.35 4.10 4.19 4.00 10.5％ Global 3.71 Sales Ratio 3.4％ 3.3％ 2.97 2.29 2.27 2.24 YoY growth 1.66 1.44 1.21 1.26 Net 1.11 1.20 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 2015
Slide 49: Cost Composition (Consolidated)
Cost Composition (Consolidated) (JPY millions) 45,000 8,573 40,000 7,816 8,742 7,535 8,338 Human resources 35,000 2,282 2,301 1,797 Advertising and promotion 2,621 2,013 2,646 2,416 2,709 2,307 Depreciation and leases 30,000 2,543 3,612 3,146 3,164 3,221 3,372 Outsourcing costs 25,000 6,951 6,576 6,
Slide 50: Internet Infrastructure
Internet Infrastructure 50 50
Slide 51: Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 9,248 7,744 1,946 1,526 5,586 1,065 3,968 3,057 2,372 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2015 2016 2017 2018 2019 2020
Slide 52: Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Registrations and renewals (JPY millions) (thousands) Renewals Registrations 2,394 1,418 1,410 2,234 2,104 1,270 1,233 1,995 1,939 1,122 1,076 1,532 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 53: Domains Industry Structure
Internet Infrastructure | Domains Industry Structure ・Global domain management ・NPO ICANN ・Operators of .com, .net, etc. Registry ・Only one operator per domain 370 ・Domain registration sales Registrar ・Many registrar resellers 2,460 Agency ・Agency 53
Slide 54: Domains Registry Share
Internet Infrastructure | Domains Registry Share Japan gTLD Operation and Management Market Share No.1 in Japan 87.4% Others + 87.4% 54
Slide 55: .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: 73.5％*2 676 669 637 614 603 588 539 530 New gTLD registration rankings No. 1 .icu 6.68M No. 2 .top 3.82M No. 3 .xyz 3.19M 328 No. 4 .site 2.13M 228 No.
Slide 56: 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 April 2020) 56 56
Slide 57: Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 3,740 3,532 3,527 3,549 895 3,482 3,430 864 809 791 770 750 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2015 2016 2017 2018
Slide 58: Ecommerce Solutions - KPIs
Internet Infrastructure | Ecommerce Solutions - KPIs Revenue Contracts (ASP shopping cart) (JPY millions) (thousands) 75.0 75.9 3,250 74.6 73.2 71.6 3,038 69.8 Other Transaction revenue (minne) Recurring revenue (ASP shopping cart) 2,379 2,146 1,883 1,344 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 59: Ecommerce solutions business: Total transaction volume
Internet Infrastructure | Ecommerce solutions business : Total transaction volume 3,402 (JPY millions) 3,197 2,945 2,436 1,971 612 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2015 2016 2017 2018 2019 2020 59 59
Slide 60: 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 61: Total value of purchased receivables
Internet Infrastructure | Ecommerce solutions business : Total value of purchased receivables Consumer base is growing, mainly existing users ■ New user ■ Existing user 1Q 2Q 3Q 4Q 1Q 2019 2020 61
Slide 62: Security - KPIs
Internet Infrastructure | Security - KPIs Issued digital Issued digital certificates Valid Digital Certificates 発行枚数(枚) certificates Newly issued digital certificates *1 発行枚数 (万枚) (ten thousands) Sales (JPY millions) (as of the end of the month) *2 100,000 150 海外 Overseas 国内 Domestic セキュリティ売上 Sales
Slide 63: Payment Processing - KPIs
Internet Infrastructure | Payment Processing - KPIs Annual GMO-PG group-wide TRX value reaches ¥5.1 trillion Operating stores: 122,328*1; TRX volume: 581 million; TRX value:¥1.2trillion*2 (million TRX) (stores) (billion yen) (Reference) Consolidated transaction value (past 12 months) ¥5.1 trillion 1
Slide 64: 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 122,328 stores* 40+ Credit card (end of March 2020) company EC Convenience store BtoB・BtoC・CtoC Account transfer P
Slide 65: Internet Finance
Internet Finance 65 65
Slide 66: FX and securities: KPIs
Internet Finance | FX and securities: KPIs FX Trading Volume Share of Trading Volume Customer Assets Balance (Jan-Mar, 2020) (Jan-Mar, 2020) (As of March 31, 2020) JPY 340tr 19.6 % JPY 191.2B JPY 205tr YoY 22.1% YoY JPY 173.9B Securities Trading Volume Share of Trading Volume Margin Transaction Bala
Slide 67: 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 68: 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) 68 68
Slide 69: Cryptoassets (Cryptocurrency)
Cryptoassets (Cryptocurrency) 69 69
Slide 70: Cryptoassets mining: Bitcoin macro data
Cryptoassets mining | Bitcoin macro data 60.0 Total hash rate* Bitcoin price 92,900 PH/s 50.0 40.0 30.0 20.0 USD 6,405 10.0 0.0 * Total hash rate and Bitcoin price are graphed assuming their values at the start of 2017 are 1. Source: https://www.blockchain.com 70
Slide 71: Our hash rate and the amount of mined Bitcoin
Cryptoassets mining | Our hash rate and the amount of mined Bitcoin Our hash rate (PH/s)*1 Amount of mined Bitcoin Cash (JPY millions)*2 670 Amount of mined Bitcoin (JPY millions)*2 479 496 489 464 400 379 392 376 382 388 321 294 296 384 256 247 259 219 207 167 169 162 179 160 219 137 106 100 99 129
Slide 72: Trading value and customer accounts
Cryptoassets Trading | Trading value and customer accounts Trading value (JPY billions) Customer accounts (thousands) 8,121 311 299 289 245 271 Customer accounts are 225 growing steadily 197 169 4,177 144 3,142 2,680 2,618 1,449 1,283 524 643 535 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 20
Slide 73: GMO Aozora Net Bank
GMO Aozora Net Bank 73 73
Slide 74: Connected securities account
Net Bank | Connected securities account Customer asset balance Customer account (thousands) (JPY billions) 50 Customer asset balance 証券コネクト口座残高(右軸) 22.5 225 Connected securities account 証券コネクト口座数(左軸) 45 20.0 200 Connected 40 17.5 175 35 securities account 15.0 150 30 12.5 and customer 125 25 10.0 10
Slide 75: 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 75
Slide 76: Net Bank: Roadmap
Net Bank | Roadmap Before launch After launch Linked transfer account Credit card Blockchain payment (virtual account) Payment Debit card Open API payment Connected securities account OTC securities product sales Collaboration between (sweep account) banking and securities Foreign currency deposit F
Slide 77: Other
Other 77 77
Slide 78: Group News (1)
Group News (1) 3 mths to March GMO Mobility Cloud has launched OBD Ⅱ Connector, which automatically detects and notifies 1/20 traffic accident, the first of its kind in Japan: Automobiles become IoT enabled packed with multiple features, such as LTE communication and sensors GMO NIKKO implemented ca
Slide 79: Group News (2)
Group News (2) 3 mths to March GMO GlobalSign has launched trust service, which conforms to the EU's eIDAS and PSD2, mainly 2/13 in Europe: Supporting international e-commerce and electronic contract between companies within Japan and those within the EU GMO Payment Gateway's "GMO B2B Early Payment,
Slide 80: Listed Group Companies: GMO Payment Gateway
Listed Group Companies (3 mths to March) (JPY millions) TSE 1st Section 3769 Stock Code Internet Infrastructure (Payment) Q2 FYE 9/2019 Q2 FYE 9/2020 Q2 FYE 9/2020 FYE 9/2020 Forecast (3mths to Mar) (3mths to Mar) (6mths to Mar) (Progress) Net Sales 7,769 9,356 18,386 36,618 (50.2%) Operating Profit
Slide 81: Listed Group Companies: GMO CLOUD
Listed Group Companies (3 mths to March) (JPY millions) TSE 1st Section 3788 Stock Code Internet Infrastructure (Hosting & Cloud, Security) Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 3,222 3,445 13,691 (25.2％) Operating Profit 395 415 1,542
Slide 82: Listed Group Companies: GMO Pepabo
Listed Group Companies (3 mths to March) (JPY millions) TSE 2nd Section 3633 Stock Code Internet Infrastructure (Domain, Hosting & Cloud, Ecommerce Solutions) Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 2,185 2,398 9,600 (25.0％) Operating Pro
Slide 83: Listed Group Companies: GMO Financial Holdings
Listed Group Companies (3 mths to March) (JPY millions) JASDAQ Standard 7177 Stock Code Internet Finance & Cryptoassets Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast Net Sales 6,905 10,365 ー Operating Profit 1,348 4,048 ー Ordinary Profit 1,314 3,820 ー Net Profit 61
Slide 84: Listed Group Companies: GMO AD Partners
Listed Group Companies (3 mths to March) (JPY millions) JASDAQ Standard 4784 Stock Code Online Advertising & Media Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 8,886 9,141 36,000 (25.4％) Operating Profit 114 191 280 (68.4%) Ordinary Profit 128
Slide 85: Listed Group Companies: GMO TECH
Listed Group Companies (3 mths to March) (JPY millions) TSE MOTHERS 6026 Stock Code Online Advertising & Media Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 710 776 3,100 (25.1%) Operating Profit 14 30 50 (61.0%) Ordinary Profit 12 31 50 (62.1%
Slide 86: Listed Group Companies: GMO Media
Listed Group Companies (3 mths to March) (JPY millions) TSE MOTHERS 6180 Stock Code Online Advertising & Media Q1 FYE 12/2019*1 Q1 FYE 12/2020*2 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 1,134 948 5,700 (16.6%) Operating Profit 68 -6 -600 (-) Ordinary Profit 68 -6 -600
Slide 87: Listed Group Companies: GMO Research
Listed Group Companies (3 mths to March) (JPY millions) TSE MOTHERS 3695 Stock Code Online Advertising & Media Q1 FYE 12/2019 Q1 FYE 12/2020 FYE 12/2020 (3mths to Mar) (3mths to Mar) Forecast (Progress) Net Sales 807 915 3,630 (25.2%) Operating Profit 57 58 240 (24.2%) Ordinary Profit 56 47 220 (21.
Slide 88: Internet for Everyone
Internet for Everyone 88 88