Slide 1: Fiscal Year 2022 Third Quarter Results Presentation
Fiscal Year 2022 Third Quarter Results Presentation STOCK CODE: 9449 November 14, 2022 1
Slide 2: Changes in rules to record the revenues | Impact
Changes in rules to record the revenues* | Impact Net sales based on new rules (concept diagram) Net sales • Online Advertising & Media Net amount processing of ad spot purchase amount in advertising agency leads to an apparent drop • Infrastructure Limited impact is observed despite change from one
Slide 3: Changes in rules to record the revenues | Comparison with the same period last year
Changes in rules to record the revenues* | Comparison with the same period last year Affected divisions (consolidated, Infrastructure, Online Advertising & Media) ▶ Compared to the same period last year (old v.s. old) to show the actual conditions of the business ( Compared to the same period last y
Slide 4: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 4
Slide 5: Overview | Executive Summary: Q3 FY2022 (Jul-Sep)
Overview | Executive Summary: Q3 FY2022 (Jul-Sep) Compared to the same period Old New Old last year (old v.s. old) Q3’21 Q3’22 Q3’22 YoY (JPY billions) Change (Jul-Sep) (Jul-Sep) (Jul-Sep) Change 57.5 65.2 Net Sales 56.4 +8.8 +15.6% 7.0 6.8 Operating Profit 8.0 -1.1 -14.0% Ordinary Profit 8.6 8.9 8.
Slide 6: Overview | Executive Summary: Q3 FY2022 (Jul-Sep)
Overview | Executive Summary: Q3 FY2022 (Jul-Sep) Net sales OP Up 8.8B YoY Down 1.1B YoY (JPY billions) (JPY billions) +3.8 Old +0.4 +2.6 65.2 * -2.9 -0.0 -0.1 Old +0.5+0.0 +5.5 8.0 New Old New Old +0.1 7.0 57.5 +0.1 6.8 56.4 -7.7 -2.3 -0.0 Difference between Difference Q3’21 Infrastructure Finance
Slide 7: Overview | Executive Summary: Q3 FY2022 (Jul-Sep)
Overview | Executive Summary: Q3 FY2022 (Jul-Sep) Compared to the same period Evaluation last year (old v.s. old) Q3 Q2 JPY 39.8B (Up 16.0% YoY) Services each hold top share in their respective markets Net sales Internet in Japan → Infrastructure OP JPY 4.5B (Up 14.0% YoY) Double-digit increase in p
Slide 8: Overview | Executive Summary: Q3 FY2022
Overview | Executive Summary: Q3 FY2022 Compared to the same period Old New Old last year (old v.s. old) Q3’21 Q3’22 Q3’22 YoY (JPY billions) Change (Jan-Sep) (Jan-Sep) (Jan-Sep) Change Net Sales 176.9 183.1 206.7 +29.7 +16.8% Record high Operating Profit 30.6 38.0 37.8 +7.2 +23.6% Record high Ordin
Slide 9: 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 9
Slide 10: Overview | Shareholder Returns (dividend per share)
Overview | Shareholder Returns (dividend per share) (JPY) 52.7 12.6 No dividends 29.5 30.8 10.8 28.0 will be paid in 23.0 11.8 24.2 10.6 12.2 the three months to 6.0 5.0 7.4 September 5.5 7.2 6.0 ■ Q4 ■ Q3 6.2 6.0 6.2 19.6 6.0 17.1 ■ Q2 ■ Q1 5.0 6.0 6.0 6.6 17 18 19 20 21 22 10
Slide 11: Strengths
Strengths 11
Slide 12: Strengths (1) Operations and development of our own technology
Strengths (1) Operations and development of our own technology 12
Slide 13: Strengths (1) | Operations and development of our own technology
Strengths (1) | Operations and development of our own technology 7,213 Goal: Workforce of 7,133 7,042 6,767 6,782 6,554 6,272 over 50% 6,180 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 5,080 49.9％ engineers 46.7％ 46.3％ 45.7％ 45.5％ 44.6％ Partners % Engineers Q1
Slide 14: Solid recurring revenues
Strengths (2) Solid recurring revenues 14
Slide 15: Strengths (2) | Solid recurring revenue
Strengths (2) | Solid recurring revenue Indispensable products that will not disappear and recurring revenue business model 15
Slide 16: Strengths (2) | Consolidated net sales
Strengths (2) | Consolidated net sales 241.4 (JPY billions) Sustainable growth 7.9 00 02 04 06 08 10 12 14 16 18 20 16
Slide 17: Strengths (2) | Analysis of consolidated net sales
Strengths (2) | Analysis of consolidated net sales 48.6% 241.4 36.1% 210.5 196.1 (JPY billions) 185.1 124.0 Solid recurring 154.2 100.5 revenues that 135.0 support sustainable 103.0 126.3 104.4 109.3 growth 82.9 79.2 79.4 69.9 110.0 117.4 93.1 Solid recurring revenue* 71.3 80.7 Other revenue 46.9 55
Slide 18: Strengths (2) | Analysis of solid recurring revenues
Strengths (2) | Analysis of solid recurring revenues Unit price Approx. JPY 10K*1 (JPY) 9,200*1 × Solid recurring (JPY billions) revenue Approx. 12M contracts*2 117.4*3 Number of × contracts 12.63M*2 Approx. JPY 14 15 16 17 18 19 20 21 120B *3 18
Slide 19: Internet Infrastructure | Contracts
Internet Infrastructure | Contracts +1.04 12.88 12.83 12.93 (millions) +1.31 +0.32 12.63 12.11 11.58 11.71 11.72 11.43 11.55 11.51 11.26 +0.96 10.92 10.73 10.35 9.94 9.60 9.27 8.97 9.09 8.71 8.76 8.75 Solid revenue base 12.93M customers Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 20: Social reactions
Social reactions If you look at GMO's financial results, you can GMO is gradually becoming a huge company that see the strength of "continuing to stay on the leads Japan's cutting-edge digital scene. Did President Internet" to reduce all the risks (this is difficult). Kumagai even imagine it? Like a
Slide 21: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 21
Slide 22: Group Overview | Business Segments (Composition)
Group Overview | Business Segments (Composition) Solid revenue base + financial customer base 15.38M customers Up 1.41M 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 23: 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 290.9 3769 GMO Payment Gateway Prime 904.9 40.7% 368.4 7177 GMO Financial Holdings Standard 66.6 65.3% 43.4 3788 GM
Slide 24: Group Overview | Net Sales by Segment
Group Overview | Net Sales by Segment Compared to the same period last (JPY billions) year (old v.s. old) 77.2 12.8 65.2 64.4 64.1 0.7 61.2 1.2 59.2 4.3 2.0 Revenue up 10.0 6.8 56.4 10.3 53.6 52.8 53.2 5.7 10.8 3.6 50.9 50.8 11.3 15.6% 0.8 2.7 49.1 49.1 47.5 48.0 1.6 8.2 6.9 45.8 46.8 9.0 6.0 7.3 9.
Slide 25: Group Overview | Profit by Segment
Group Overview | Profit by Segment Compared to the same period last (JPY billions) year (old v.s. old) 19.84 12.47 10.16 Profit down 14.0% 0.07 10.4611.12 0.25 4.02 10.14 0.31 0.15 0.43 1.24 8.97 8.28 8.13 2.34 8.01 3.65 6.89 1.91 0.44 6.51 0.42 1.48 2.97 YoY 5.95 0.42 3.85 5.26 1.56 3.81 6.09 3.10
Slide 26: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 26
Slide 27: Internet Infrastructure | Collection of No. 1 services
Internet Infrastructure | Collection of No. 1 services Domestic market share at 83.0 Strong No. 1 Domain Registry % ＊1 Domestic market share at Domain Registrar 82.4 Strong No. 1 % ＊2 Domestic market share at No. 1 Hosting & Cloud 56.7 % ＊3 No. 1 ASP Cart 59K paid stores No. 1 Domestic market share
Slide 28: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. old) 39.8 38.8 0.7 37.0 0.8 35.8 0.5 34.6 34.3 0.7 33.5 33.5 33.9 0.7 32.8 0.8 0.5 Revenue up 31.3 2.0 1.0 13.3 1.3 13.0 29.6 1.7 12.3 28.4 28.5 12.0 1.2 27.1 27.4 16.0% 1.1 10.2 10.9 11
Slide 29: Internet Infrastructure | Operating Profit
Internet Infrastructure | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) 6.32 5.53 5.62 4.67 4.74 4.93 4.58 Profit up 14.0% 4.01 4.02 3.87 3.76 3.72 3.61 3.58 3.15 3.09 2.93 YoY 2.76 2.50 2.58 2.15 2.02 1.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 30: Internet Infrastructure | Cryptosecurity
Internet Infrastructure | Cryptosecurity Dual crown Number of e-contract accounts: No. 1 Number of contracts: No. 1 30
Slide 31: Internet Infrastructure | Number of e-contract accounts
Internet Infrastructure | Number of e-contract accounts (thousands) Number of e-contract accounts 914 No. 1 Increased 732 User companies (extract) 2.7-fold YoY 334 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 31
Slide 32: Internet Infrastructure | Number of contracts
Internet Infrastructure | Number of contracts (millions) Dual 1.48 crown Increased 1.21 Number of contracts 2.2-fold No. 1 YoY 0.67 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 19 20 21 22 32
Slide 33: Internet Infrastructure | Digital government
Internet Infrastructure | Digital government New 福岡市 Adoption by24 local governments was determined 33
Slide 34: Internet Infrastructure | Ecommerce Solutions: transaction volume
Internet Infrastructure | Ecommerce Solutions: transaction volume (JPY billion) 131 128 122 125 123 117 118 119 119 111 Up 67 68 68 77 72 74 73 80 78 77 81 83 85 3.9% 106 114 117 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
Slide 35: Agenda
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: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. old) 15.9 15.1 1.2 14.6 1.1 13.6 13.5 1.3 0.9 12.7 1.2 12.3 12.4 3.7 Revenue up 12.2 12.0 12.0 0.8 12.0 11.5 11.3 11.8 0.9 3.6 11.5 0.7 11.4 11.3 0.9 0.9 0.8 0.9 11.0 10.7 10.7 11.0 0.8 3.9 0.8 0.7
Slide 37: Online Advertising & Media | Operating Profit
Online Advertising & Media | Operating Profit Compared to the same period last (JPY billions) year (old v.s. old) 0.88 0.72 Profit up 189% 0.64 0.53 0.42 YoY 0.31 0.32 0.28 0.25 0.23 0.24 0.25 0.25 0.19 0.17 0.14 0.09 0.06 0.05 0.06 0.04 -0.05 -0.13 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 38: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 38
Slide 39: Internet Finance | Historical Performance by Quarter
Internet Finance | Historical Performance by Quarter Compared to the same period last (JPY billions) year (old v.s. new) 11.3 10.7 10.3 Revenue up 10.0 9.1 9.0 35.4% 8.1 8.2 7.9 7.5 7.4 7.5 7.4 7.3 6.8 6.9 6.9 6.7 6.9 6.5 Profit up 6.3 6.0 5.5 2.1% Net Sales 3.81 3.85 3.65 YoY 3.30 3.39 2.91 3.10 2.
Slide 40: Internet Finance | Net sales by each product
Internet Finance | Net sales by each product (JPY millions) CFD remained strong though 2,257 the FX struggled 322 474 586 to increase profitability 1,462 1,459 5,549 5,403 5,052 4,725 3,881 3,335 Securities and others CFDs / Stock Index Binary Options OTC-FX / Binary Options Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 41: Internet Finance | FX Trading Volume
Internet Finance | FX Trading Volume 880 Trading volume 24.1％ 24.7％ 24.8％ reached a record 21.7％ high*3 20.7％ 21.1％ 375 285 257 204 178 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 17 18 19 20 21 22 Prepared based on Results Presentati
Slide 42: GMO Aozora Net Bank
GMO AOZORA NET BANK GMO
Slide 43: Net bank | Extraordinary loss
Net bank | Extraordinary loss Reduction in the valuation of shares the Company will acquire in the future due to delays in achieving positive figures, recording the difference as an extraordinary loss (JPY millions) Provision for loss contracts 12.51 JPY 6.34B 6.17 Amount to be acquired*1 Assessed v
Slide 44: Net bank | KPI
Net bank | KPI Steadily growing Number of business accounts Number of customers using built-in type financial services* (thousands) (contracts) 367 Increased 571 Increased 322 2.1-fold 1.8-fold 473 281 392 233 321 196 YoY 232 273 YoY 127 158 195 162 103 131 79 100 59 69 39 47 29 30 9 17 Q1 Q2 Q3 Q4
Slide 45: Net bank | Mid- to long-term strategies
Net bank | Mid- to long-term strategies No changes to the three pillars 1 No. 1 bank for small and start-up companies 2 No. 1 built-in type finance 3 No. 1 tech first bank 45
Slide 46: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 46
Slide 47: Cryptoassets business
Cryptoassets business Mining Cryptoassets mining business Cryptoassets Exchange Cryptoassets exchange business Payment Cryptoassets payment ┗Issue stablecoin 47
Slide 48: Cryptoassets business | Net Sales
Cryptoassets business | Net Sales Compared to the same period last (JPY billions) year (old v.s. new) 6.8 1.3 5.7 1.5 4.3 Revenue down 2.7 3.6 0.8 78.9% YoY 2.6 2.6 5.4 1.6 2.3 1.8 2.1 0.6 2.0 1.2 1.2 4.1 1.6 1.5 1.4 1.2 1.2 0.6 0.2 1.0 0.2 0.8 1.2 0.9 0.4 0.8 ■ payment 0.2 2.1 2.0 0.3 0.7 ■ mining
Slide 49: Cryptoassets business | Operating Profit
Cryptoassets business | Operating Profit Compared to the same period last (JPY billions) year (old v.s. new) 4.02 2.34 Operating loss 0.82B 1.48 1.24 0.67 JPY 0.53 0.42 0.42 0.38 0.25 0.21 0.10 0.08 0.15 -0.07 -0.23 -0.22 -0.26 -0.39 -0.73 -0.82 -0.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 50: Agenda
1. Overview 2. Group Overview 3. Segment Report i) Internet Infrastructure ii) Online Advertising & Media iii) Internet Finance iv) Cryptoassets 4. Topics 50
Slide 51: Japan's strongest white hat hacker organization
Japan's strongest white hat hacker organization 51
Slide 52: New service | Site seal
New service | Site seal Site seal displayed on gmo.jp Site seal displayed on website after diagnosis 52
Slide 53: New service | Site seal: de facto symbol of cyber defense
New service | Site seal Become the de facto symbol of cyber defense Click 53
Slide 54: New service | In brief
New service | In brief ＝ Technological capability (Certificate Authority, white hat hacker) × Solid recurring revenues Products cannot be replicated ＝ 54
Slide 55: Internet for Everyone
Internet for Everyone 55 55
Slide 56: Earnings announcement date and disclaimer
We are planning on making an earnings announcement for FY2022 after 3 pm on February 13, 2023. This document includes projections based on expectations, premises and plans as of November 14, 2022. These projections may differ from actual results due to factors including changes in the global economy
Slide 57: Appendix
Appendix 57
Slide 58: Group Overview / Finance conditions / Consolidated results / ESG
Group Overview Finance conditions and policy Consolidated results ESG activities 58
Slide 59: Group Overview
Group Overview Company Name GMO Internet Group, Inc. (Changed from GMO Internet, Inc. on 1st Sep 2022) Founder, Chairman and Masatoshi Kumagai Group CEO Decentralized group management in order Address (Group Head Office) Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo to adapt rapid changes (Th
Slide 60: 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-IG: GMO INTERNET GROUP Other GMO-PG：GMO PAYMENT GATEWAY GMO-AP：GMO ADPARTNE
Slide 61: 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 61
Slide 62: 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 Listed subsidiaries Other (stock code) 62
Slide 63: Strategic Topics
Group Overview Finance conditions and policy Consolidated results Strategic Topics 63
Slide 64: Consolidated Cost Composition
Consolidated Cost Composition (JPY millions) 60,000 55,000 50,000 Human resources 10,189 Advertising and promotion 45,000 11,768 11,989 10,147 4,532 Depreciation and leases 40,000 10,602 2,860 3,678 3,749 Outsourcing costs 35,000 3,771 2,834 4,329 3,208 4,012 4,137 Communication costs 30,000 3,861 3
Slide 65: Consolidated Balance Sheet
Consolidated Balance Sheet GMO GMO End of End of (JPY millions) Change Financial HD Internet Group 12/2021 9/2022 (End of 9/2022) (End of 9/2022) Current Assets 1,292,984 1,411,533 118,549 1,003,563 120,016 Cash & Deposits 240,136 311,600 71,464 60,387 89,566 Fixed Assets 125,952 133,870 7,917 27,05
Slide 66: Consolidated Profit and Loss
Consolidated Profit and Loss Q3'21 Q3'22 supplementary (JPY millions) Change (1-9/2021) (1-9/2022) information Net Sales 176,951 183,134 3.5% Gross Profit on Sales 93,004 113,261 21.8% Operating Profit 30,633 38,010 24.1% （OP Margin） 17.3% 20.8% +3.4pt Non Operating Profit and Loss 1,589 4,428 178.7
Slide 67: Finance policy
Finance policy Investment Policy Avoid excessive risk-taking, considering balance of Shareholders equity. As of September FY.22 Future plans After June.2021, ①Try to issue debt finance from short term to long Issued unsecured straight corporate bond totally term. Financial 51billion Yen. ②Continuous
Slide 68: ESG activities
Group Overview Finance conditions and policy Consolidated results ESG activities 68
Slide 69: Financial Results | Net Sales by Segment
Financial Results | Net Sales by Segment Compared to the same period last (JPY billions) year (old v.s. new) 69.4 7.8 64.4 57.5 56.0 61.2 59.2 4.3 12.8 7.7 Revenue UP 8.0 6.8 56.4 53.6 52.8 53.2 5.7 1.2 0.7 3.6 50.9 0.8 50.8 11.3 2.0 2.0% 49.1 2.7 48.0 49.1 1.6 8.2 10.0 47.5 46.8 6.9 7.3 10.3 45.8 9
Slide 70: Global Operations | Global Net Sales
Global Operations | Global Net Sales (JPY billions) 9.0% 8.9％ Net sales 5.81 5.17 5.12 5.20 5.04 6.5% 4.84 5.9％ Global Sales Ratio 5.9％ 4.36 YoY 3.42 3.6％ 3.2%UP 3.20 2.98 2.97 3.07 3.00 3.01 2.80 2.88 2.84 2.86 1.93 1.67 1.39 1.41 1.35 Net Sales Since Q2 FY2020, MacroKiosk is no longer a consolidat
Slide 71: Internet Infrastructure
Internet Infrastructure 71 71
Slide 72: Internet Infrastructure | Net Sales by Sub-Segment
Internet Infrastructure | Net Sales by Sub-Segment Compared to the same period last (JPY billions) year (old v.s. new) 38.0 36.6 1.7 34.7 2.1 0.7 35.8 0.8 34.6 34.3 0.7 2.2 33.5 33.5 33.9 0.7 0.5 Revenue up 32.8 0.8 0.5 31.3 2.0 1.0 1.3 29.6 1.7 13.1 28.4 28.5 12.6 10.9% 1.2 12.0 27.1 27.4 1.6 1.1 1
Slide 73: Internet Infrastructure | Breakdown of Operating Profit
Internet Infrastructure | Breakdown of Operating Profit (JPY billions) Payment business Other Cost distribution 3.35 2.84 2.58 2.34 1.63 1.07 1.83 1.82 1.73 1.56 1.55 1.16 -0.21 -0.26 -0.40 -0.39 -0.37 -0.33 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 17 18 19 20 21 22 73
Slide 74: Internet Infrastructure | Provider - KPIs
Internet Infrastructure | Provider - KPIs Revenue Subscriptions (JPY millions) (thousands) 10,892 2,229 2,250 2,128 10,002 10,009 8,603 1,721 6,902 1,305 4,766 839 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 Q
Slide 75: 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 Q2 Q3 2017 2018 2019 2020 2021 2022 75
Slide 76: Internet Infrastructure | Domain Registration - KPIs
Internet Infrastructure | Domain Registration - KPIs Revenue Contracts (JPY millions) (thousands) 2,379 7,045 6,867 6,895 2,132 6,714 1,994 6,211 1,945 6,027 1,867 1,796 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 77: Internet Infrastructure | Domain business
Internet Infrastructure | Domain business ②2009～ Registry (wholesale) ①1999～ ③2012～ Registrar (registration/sale) Japan Overseas 77
Slide 78: Internet Infrastructure | Domain business contracts progress
Internet Infrastructure | Domain business contracts progress (thousands) 1,246 986 637 676 722 Renewal rate: 69.5%* 328 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 2022 * Renewal rate for domains registered between September 2016 and Aug 2020 (2nd re
Slide 79: Internet Infrastructure | Hosting & Cloud - KPIs
Internet Infrastructure | Hosting & Cloud - KPIs Revenue Contracts (JPY millions) (thousands) 4,693 1,097 1,052 4,107 936 3,810 3,614 3,606 852 867 3,494 799 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 2017
Slide 80: 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 80
Slide 81: Internet Infrastructure | Ecommerce solutions - KPIs
Internet Infrastructure | Ecommerce solutions - KPIs Revenue Contracts (ASP shopping cart)* (JPY millions) (thousands) Other Transaction revenue (minne・SUZURI) 4,197 74.4 Recurring revenue (ASP shopping cart) 3,956 69.7 3,846 68.5 67.0 64.2 64.5 2,984 2,620 2,167 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 82: 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 83: 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 84: Internet Infrastructure | Payment processing - Overview
Internet Infrastructure | Payment processing - Overview Connecting merchants and payment companies on contracts, payment data and money flow Consumer Merchant GMO-PG consolidated Payment Company subsidiaries 142,396 stores ※1 40+ Credit card (As of end-Sep 2022) companies EC Convenience store B2B・B2
Slide 85: Internet Infrastructure | Payment Quarterly KPIs
Internet Infrastructure | Payment Quarterly KPIs Group-wide annual TRX value reaches ¥11.4 trillion ※1 ※2 Operating stores: 142,396 stores, TRX volume approx. 1.33 bil., TRX value approx. ¥3.0 trillion. (100M transactions) (Stores) (¥Tr.) （Reference）Online payment: TRX volume approx. 1.22 bil., TRX
Slide 86: Online Advertising & Media
Online Advertising & Media 86 86
Slide 87: Online Advertising & Media | Net Sales
Online Advertising & Media | Net Sales Compared to the same period last (JPY billions) year (old v.s. new) 8.8 8.5 7.8 13.6 13.5 0.9 12.7 1.2 12.2 12.3 12.4 12.0 12.0 0.8 12.0 7.0 11.5 0.7 11.4 11.5 11.3 11.8 0.9 11.3 0.9 Revenue down 0.8 6.6 11.0 0.9 0.9 11.0 10.7 10.7 0.7 0.8 3.0 6.7 0.8 0.7 10.7
Slide 88: 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 89: 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 Survey Distribution Company A Panel Company A Data Collection Company’s own Survey Tab
Slide 90: 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 91: Internet Finance
Internet Finance 91 91
Slide 92: Internet Finance | CFD Transaction and Profit transition
Internet Finance | CFD Transaction and Profit transition （JPY 100 million） （JPY trillion） 30 transaction(right) 30 Profit (left) 25 25 25 25 Transaction volume 76.6 %UP 22 21 20 YoY 20 15 14 15 Profit 61.6 %UP 13 YoY 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 20
Slide 93: Internet Finance | CFD deposit margin balance
Internet Finance | CFD deposit margin balance （JPY100 million） 800 713 700 680 600 542 31.4 %UP 500 400 YoY 300 200 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 * Prepared based on Results Presentation of GMO Financial Holdings 93
Slide 94: 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 95: Cryptoassets
Cryptoassets 95 95
Slide 96: Cryptoasset Business
Cryptoasset Business ｍining Mining Business Crypto Exchange Exchange business asset payment Payment business ┗ Issuing Stablecoin 96
Slide 97: Cryptoasset Exchange Business | Transaction volume
Cryptoasset Exchange Business | Transaction volume （JPY billion） 14,000 12,000 10,000 YoY 53.6% 8,000 DOWN 6,000 5,007 ＜Q3’22 New Services ＞ 13th July New Added ADA,MKR,DAI,LINK on Trading Exchange 4,000 3,199 25th July Started to accept New IEO 21st Sep Started Staking service 2,321 28th Sep Expand
Slide 98: Cryptoasset Exchange Business | Accounts and deposit asset transition
Cryptoasset Exchange Business | Accounts and deposit asset transition （thousands） （JPY 100million） 700 1,800 Client Asset(R) Accounts Accounts(L) 1,600 600 537 93 K UP 1,374 526 1,400 500 1,200 YoY 400 1,048 1,000 866 Deposit Asset 300 800 200 600 YoY23.8% 400 100 200 DOWN 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 99: 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 100: GMO AozoraNet Bank
GMO AozoraNet Bank 100
Slide 101: GMO AozoraNet Bank | Our Share holding situation
GMO AozoraNet Bank｜Our Share holding situation ① Recorded extraordinary loss 6.34B JPY, downgraded the amount of acquisition for the future. ② Will acquire at the re-planned unit price for the amount of capital increased at this time. (Non extraordinary loss) ③ Total expenditure for future will be 1
Slide 102: GMO Web3
GMO Web3 102
Slide 103: Team
Team Chairman Representative Director and CEO Masatoshi Kumagai Tomohiro Uchida GMO Internet Group, Inc. GMO Internet Group, Inc. Chairman and Group CEO General Manager, Corprate Expertise: Growth and Development management of IT companies Expertise:Investment, M&A Director Director Yuki Naito Masak
Slide 104: Team
Team Director Director Toshiaki Horiuchi Kentaro Sato GMO Internet Group, Inc. GMO Pepabo, Inc. Group Senior Managing Executive Officer Representative Director and CEO Expertise:Research and development/technical Expertise:Web Creative support for cutting-edge technologies such as AI Creator Support
Slide 105: Team
Team Director Satoshi Makita Kosuke Kotani GMO Internet Group, Inc. GMO Coin, Inc. General Manager, Infrastructure & Operations Division, Director Systems Management Headquarters Expertise:Crypto asset (cryptocurrency) Expertise:Blockchain, Mining operations exchange IEO Support Director Director Ta
Slide 106: Team
Team Advisor Advisor Kazuyuki Shudo Sota Watanabe Kyoto University Astar Network Professor Founder Expertise:Computer Science and Engineering Expertise:Public blockchain development Advisor Isao Moriyasu Former President and CEO of DeNA Co. Expertise:Business development and business growth 106
Slide 107: ESG Activities
ESG Activities 107 107
Slide 108: ESG | Sustainability management for SDGs
ESG｜Sustainability management for SDGs Our business help Social and environmental issues to be solved. ・ ・ ・ 108
Slide 109: ESG | Disclosure processes
ESG｜Disclosure processes ◼ Released our Activities for SDGs ◼ Drawn up basic sustainability policy 2021 ◼ Set up sustainability promotion committee Preferentially ◼ Updated CG report atempting to expand ◼ Introduced of a group executive officer ESG disclosure 2022 system ◼ Expanding ESG disclosure N
Slide 110: Internet for Everyone
Internet for Everyone 110 110