August 13, 2007
For Immediate Release
Company Name:

GMO Internet Inc.
(TSE First Section, Code: 9449）

Address:

26-1 Sakuragaoka-cho Shibuya-ku Tokyo JAPAN

Representative:

Masatoshi Kumagai, CEO and Representative Director

Contact:

Masashi Yasuda, Managing Director

Telephone:+81 3 5456 2555

URL:

http://www.gmo.jp

Revision to Results Forecast and Dividends for the Fiscal Year Ending December 2007
GMO Internet Inc. has made the following revisions to the results forecast for fiscal year ending December
2007. The forescasts were previously announced on February 22, 2007 in the Financial Results for the TermEnding December 2006 and on May 11, 2007 in Revision to Interim Results Forecast for the Fiscal YearEnding 2007.
Please also refer to An Explanation of Today’s Series of Disclosures and Strategy Regarding Pullout ofLoans and Credit Business – Presentation Materials.
http://ir.gmo.jp/irlibrary/pdf/20070813_en_01.pdf
1. Revision to Consolidated Results Forecast(1) Interim Term (01.01.2007 – 30.06.2007)
Sales

Operating Profit

Ordinary Profit

Net Profit

Previous Forecast (a)¥ millions¥ millions¥ millions¥ millions(May 11, 2007)

29,0003,300

3,000700

New Forecast (b)30,029-10,495-10,813-15,699

Amount of Change

1,029-13,795-13,813-16,399

3.5%

−%

−%−%

23,042

2,009

1,927

193(b-a)Percentage Change(Reference)
Actual results in thePrevious Term (Termended June 2006)

Copyright (C) 2007 GMO Internet, Inc. All Rights Reserved.

(2) Full Term (01.01.2007 – 31.12.2007)
Sales

Operating Profit

Ordinary Profit

Net Profit

Previous Forecast (a)¥ millions¥ millions¥ millions¥ millions(February 22, 2007)

60,000

7,000

6,300

2,500

New Forecast (b)46,500-8,600-9,300-13,000

Amount-13,500-15,600-15,600-15,500-22.5%−%−%−%

50,842

4,271

3,992

-12,099

ofChange(b-a)
Percentage Change(Reference)
Actualresults

PreviousinTermthe(Termended December 2006)

2. Revision to Non-Consolidated Results Forecast(1) Interim Term (01.01.2007 – 30.06.2007)
Sales

Operating Profit

Ordinary Profit¥ millions¥ millions¥ millions¥ millions(May 11, 2007)

6,500

750

700

500

New Forecast (b)

6,589

788

738

-22,770

Amount of Change

893838-23,270

1.4%

5.1%

5.4%

−%

5,938

577

1,325

1,417

Previous Forecast (a)Net Profit(b-a)
Percentage Change(Reference)
Actual results in thePrevious Term (Termended June 2006)(2) Full Term (01.01.2007 – 31.12.2007)
Sales

Operating Profit

Ordinary Profit

Net Profit

Previous Forecast (a)¥ millions¥ millions¥ millions¥ millions(February 22, 2007)

13,000

1,230

1,580

1,250

New Forecast (b)13,0001,230

950-20,800

Amount of Change

00-630-22,050−%−%-39.9%−%

12,133

1,188

1,867

-3,891(b-a)
Percentage Change(Reference)
Actual results in thePrevious Term (Termended December 2006)

3. Reasons for the Revised Forecast
In regard to the interim consolidated results forecast, interest repayment related losses were recorded ofCopyright (C) 2007 GMO Internet, Inc. All Rights Reserved.

approximately ¥14 billion over initial forecasts. This was largely a result of recent interest repayments and themaximum risk expected in relation to future interest repayment demand taking into account changes in theindustry in the loans and credit business. (note: in this interim term ¥7.2 billion was added to the interest
repayment reserve and ¥10.5 billion was added to the allowance for bad debt). In addition, the decision towithdraw from the loans and credit business has resulted in goodwill shrinkage of approximately ¥5.9 billion
and an appraisal loss of ¥500 million on share warrants. As a result of the above factors deferred tax assetsof ¥3.3 billion will be recorded and we expect an increase in income taxes-deferred. The revision has been
made in light of these factors.
In regard to the full term consolidated results forecast, in addition to the reasons stated above, as a result of
the withdrawal from the loans and credit business GMO LOAN-CREDIT HOLDINGS Inc. and 18 consolidated
subsidiaries will be excluded from the consolidation. At the same time consolidated subsidiary GMO InternetSecurities will also be excluded from the consolidation after a stock transfer. We expect this to result in
decreases in sales of approximately ¥14.5 billion, operating profit of ¥2 billion, ordinary profit of ¥2 billion andnet profit of ¥1.2 billion. We expect to record an extraordinary profit of ¥3.5 billion as a result of the sale ofstock in a subsidiary, also announced today. The revision has been made in light of these factors.
Due to our withdrawal from the loans and credit business no further interest repayment related losses will berecorded.
In regard to the interim non-consolidated results forecast, a ¥26.3 billion loss on appraisal of stock in a
subsidiary (GMO LOAN-CREDIT HOLDINGS Inc.) will be recorded in addition to ¥500 million appraisal loss
on share warrants as a result of withdrawal from the loans and credit business. As a result of the above
factors deferred tax assets of ¥3.3 billion will be recorded and we expect an increase in incometaxes-deferred. The revision has been made in light of these factors.
In regard to the full term non-consolidated results forecast, in addition to the reasons stated above, following
a pullout from the loans and credit business we will no longer receive dividends from a subsidiary and this will
result in a reduction of approximately ¥600 million. However, we expect to record an extraordinary profit of¥3 billion as a result of the sale of stock in an affiliated company, also announced today. The revision has
been made in light of these factors.
(Reference Materials)

１．Factors contributing to the full term forecast revision from a group perspective

Unit: ¥millions

Sales
Operating
ProfitOrdinary
ProfitDifference in theLoans andCredit Businessin the First Halfof the Term
(Mainly Interest
Repayment
RelatedExpenses)

Impact of theExclusion fromthe Consolidationof the Finance
Segment in the
Latter Half of theTerm(In Comparisonto Initial
Forecast)

Increase in
Full Term
Forecast intheInfrastructureand Media
Segments

60,000-1,800-14,500

2,800

46,5007,000-13,800-2,000200-8,6006,300-13,800-2,000200-9,300InitialForecastCopyright (C) 2007 GMO Internet, Inc. All Rights Reserved.

NewForecast

２．Infrastructure and Media Segment Results Forecast (Excluding Finance Segment)
Increase in
Full Term
Forecast in
InitialtheNew Forecast
Unit: ¥millions Forecast
Infrastructureand Media
Segments
Sales
Operating
ProfitOrdinary
Profit30,2002,800

33,000

3,500

200

3,700

2,800

200

3,000

４．Revision to Forecast Dividends
It is with much reluctance that we have revised the dividend forecast released on February 22, 2007 in
the Non Consolidated Financial Results for the Year Ending February 22 for the reasons stated above.

Interim Dividend

End of Term

Full Year Dividend

Dividend
Year Ending December

¥0.00

¥0.00

¥0.00

¥3.00

¥7.00

¥10.002007
Previous Forecast(February 22, 2007)
Note: The above projections are based on information available at the time of release, this includes
indeterminable factors. Actual results may vary from the projected figures as a result of changes inbusiness conditions.

Copyright (C) 2007 GMO Internet, Inc. All Rights Reserved.