As of Jun 2024

https://www.gmo.jp/en

Group Overview | Corporate Slogan
We concentrate our resources on developing Internet infrastructure that
supports our products and services

2

Group Overview
Company Name

GMO Internet Group, Inc.

Founder, Chairman andGroup CEO

Masatoshi Kumagai

Address(Group Head Office)
Cerulean Tower 26-1 Sakuragaokacho, Shibuya-ku Tokyo(The 2nd Group Head Office)
SHIBUYA FUKURAS1-2-3 Dogenzaka, Shibuya-ku, Tokyo

EstablishedMay 24, 1991

Stock Listing9449 (Tokyo Stock Exchange Prime Market)

Business Segments

Internet Infrastructure
Online Advertising & MediaInternet Finance
Cryptoassets

Capital(including capital reserve)

JPY5.0 billion

Consolidated Staff

7,525

Group companies

112 (As of Jun 2024)3

Group Overview

112 Companies Worldwide
10 Listed Companies

4Group Overview
PrimeStandard
Growth3 companies
3 companies
4 companies

Market Capitalization of the GroupJPY 1.0 trillion※2024/8/7

5Group Overview

7,525
Internet Professionals

6

Strengths
7

Strengths (1)Operations anddevelopment of ourown technology
8Strengths (1) | Operations and development of our own
technology
Limited to hiring ※2
Advanced and AI Talent
7,042

7,133 7,213

7,317 7,361 7,393 7,396

7,438 7,431

7,525

Goal: Workforce of over

6,767 6,782
6,554
6,001 6,058 5,995 6,012 5,958 6,048

6,180

6,272

60%

5,758

45.6％

44.9％

46.2％

48.9％

49.9％

50.0％

engineers & creators
Partners% Engineers & Creators*1 Not including partners of GMO Internet Group affiliates accounted for by
the equity method ( such as GMO Aozora Net Bank ).
The number of the Bank’s employees 323 was excluded as of end of June2024.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
19

20

21

22

23

24

*2 New graduate joining through the “The program of paying JPY 7.1 million
per annum for new graduates”（Apr. 2023～）
Introduced AI test for mid-career hires.（Jun. 2023～）

9

Strengths (2)Solid recurring revenues
10Strengths (2) | Solid recurring revenue

Indispensable products that will not
disappearandrecurring revenue business model11

Strengths (2) | Consolidated net sales
258.6

Changes in rules torecord the revenues*(JPY billions)Sustainablegrowth

9.1
01

03

05

07

09

11

13

15

17

19

21

23

* "Accounting standards related to revenue recognition"( accounting standard No. 29 )12

Strengths (2) | Analysis of consolidated net sales

56.4％
37.1％

241.6

245.6

258.6

210.5
(JPY billions)

185.1

196.1

112.7
123.9

154.2
126.3

115.5

100.5

135.0
104.5

103.0

82.9
79.4

79.2

46.9

55.8

15

16

71.3

80.6

17

18

93.1

19

110.0

117.7

20

21

130.1

Solid recurring
revenues that
support sustainablegrowth

145.9
Solid recurring revenue*
Other revenue
Solid recurring revenue ratio (%)

22

23* The combined recurring and transaction revenues in the infrastructurebusiness (domains, cloud hosting, part of security, part of e-commerce
support, part of payments, and access)13Strengths (2) | Analysis of solid recurring revenues(JPY)

Unit priceApprox. JPY 10.6K*1

10,600*1

Solid recurring(JPY billions) revenue
145.9*3

Number ofcontracts××
Approx. 14M contracts*2

Approx. JPY

13.74M*2

15 16 17 18 19 20 21 22 23

145B

*3

14

Internet Infrastructure | Contracts
COVID-19 Impact period*(millions)

+0.17

+1.36

+0.72

-0.02

+1.59
1,506
1,456
1,374
1,326

995

1,036

1,074

1,093

1,126 1,143

1,155 1,147 1,144 1,152 1,150

1,177

1,217 1,229 1,210 1,202 1,215 1,227

Solid recurring
revenues base

15.06M

1,270

customers

Increased contracts

2.35M
YoY

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

18

19

20

21

22

23

24

*The period of declaration of a state of emergency and application ofpriority measures to prevent the spread

15

Strengths (3)Risk diversificationand independent
management
16Strengths (3) | Risk diversification and independent management

Management that achieves risk
diversification by not relying on
specific products, clients, or partners
17

Strengths (3) | Risk diversification and independent management

93

products

15.06M※1

customers※2

Approx.

7,800
partner※3*¹ Source: https://www.gmo.jp/service/list/*² Number of contracts for infrastructure products*³ Including partners of GMO Internet Group affiliates accounted for by the equity method.

18

Consolidated results transition
Sales increased for 15 consecutive fiscal years
258.6

Sales
(JPY billion)

210.5
185.1

154.2
126.3
109.3

21.4

14

55.4

15

10.09
9.09

34.6
52.0

27.89
25.27 0.76

34.0

21.78 2.53

46.8

17.01

9.14

171.5

100.8

131.2

138.7

150.0

Other
Incubation
Crypto-assets
Internet Finance
Online Advertising & MediaInternet Infrastructure

65.4

16

17

17.64
10.75

14.80

114.0

18

19

9.29

20

21

13.75

22

23

4.44
1.91

11.00
4.77
1.96

12.93
9.62

2.18

6.24

9.66

0.97

1.20

4.25

5.28

4.79

4.31

12

13

14

15

0.42

6.59

16

28.72

0.76

1.29
1.63

1.18

8.51

0.54

7.98

8.47

17

11.44

18

1.87

11.71

10.61

46.8

40.5

46.1

(JPY billion)

42.47

42.5

44.1

84.6

13

30.8

33.8

47.2

44.0

27.5

12

6.0

30.7

35.3

38.1

6.7

13.3
6.2

41.09

46.7

31.5

30.2

196.1

20.6

28.5

26.3

27.3

22.9

16.5

135.0

29.8

93.7
74.3

Profit241.6 245.6

43.74

14.06

19

16.28

20

19.23

21

21.98

22

23

19

Group Overview | Business Segments (Composition)
Solid recurring revenue base+financial customer base =17.75M customers

15.06 million customers

2.05 million Accounts

620k Accounts

Increased customers

2.50M
YoY

Internet Infrastructure
increased 2.35M

Internet Finance + Cryptoassets
increased 0.15M*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 ) in Infrastructure, Finance, and Cryptoassets segments.
*Regarding Internet Finance, the number of accounts does not include GMO Aozora Net Bank’s accounts.

20

Internet Infrastructure21

21

Domain Registration
No.1*
Market Share

83.5％
Domains underManagement

10.0M* Based on ICANN data

22

Web Hosting
No.1*
Market Share

58.9％
Contracts

1.1M* Based on domaintools.com

23

Ecommerce Solutions

Paid Stores

50K

24

Payment

Transaction Volume

17.7

JPY

tr/year25

ISP(Provider)“Hikari Collaboration Award”
Satisfaction Ranking *No.1
Contracts

2.24

million networks* Winner of the Best Satisfaction Award in Hikari Collaboration
Award 2023

26

Infrastructure
Three Types of Security

27

Security | Slogan

Safe and SecureInternet for Everyone
28Security | Three areas

1. Encryption security
2. Cyber security

3. Brand security
29

SSL Security

Market Share

*

No.1

*Country code (according to Netcraft's research)30

① Cryptosecurity | Service usage (SSL)31

① Cryptosecurity | eSignature

No.1
Market Share

Dual
crown

Number of e-contract
accounts

2.2M
Number of contracts

3.8M/Q32

① Cryptosecurity | Service usage (eSignature)33

① Cryptosecurity | Digital government
Adoption by 121 public bodies was determined*

Become No.1 in terms of thenumber of local governments
introducing GMO Sign.
Aim at triple crown.

Excerpted list of Local governments:
Tokyo Kanagawa Saitama Shizuoka Gunma Hokkaido Yamaguchi Oita

* Public bodies with paid contracts

Shibuya-ku, Tokyo
Kitakyushu City, Fukuoka Pref
Chita City, Aichi Pref
Chigasaki City, Kanagawa Pref
Hirakata City, Osaka Pref
Osakasayama City, Osaka Pref
Yao City, Osaka Pref
Suita City, Osaka Pref
Minoh City, Osaka Pref
Kashiwa-machi, Osaka Pref
Takatsuki City, Osaka Pref
Amami City, Kagoshima Pref
Sakai City, Fukui Pref
Nagahama City, Shiga Pref
Iwaki City, Fukushima Pref

Adachi-ku, Tokyo
Nagoya City, Aichi Pref
Kawasaki, Kanagawa Pref
Higashi-Osaka City, Osaka Pref
Shijonawate City, Osaka Pref
Kadoma City, Osaka Pref
Kawachinagano City, Osaka Pref
Tondabayashi City, Osaka Pref
Kishiwada City, Osaka Pref
Izumi City, Osaka Pref
Moriguchi City, Osaka Pref
Inabe City, Mie Pref
Tatsuno City, Hyogo Pref
Mihara City, Hiroshima Pref
Kitakami City, Iwate Pref

Fukuoka City, Fukuoka Pref
Toyota City, Aichi Pref
Yokosuka City, Kanagawa Pref
Toyonaka City, Osaka Pref
Neyagawa City, Osaka Pref
Izumisano City, Osaka Pref
Sakai City, Osaka Pref
Habikino City, Osaka Pref
Ibaraki City, Osaka Pref
Tadaoka-cho, Osaka Pref
Ikeda City, Osaka Pref
Sanjo City, Niigata Pref
Shiso City, Hyogo Pref
Koriyama City, Fukushima Pref

34

② Cybersecurity

Number ofwhite hat hackers
in Japan *No.1* Fermi estimation

35

② Cybersecurity | Service usage36

② Cybersecurity | Working with public institutions
Self-defense forces
Carried out training to improve theskills of Cyber Defense Command*1

National Police Agency
Received a letter of thanks fortechnical assistance*2*1: "Penetration test drills for JSDF Cyber Defense Command carried out by GMO Cybersecurity by Ierae" (February 1, 2023)*2: Received a letter of thanks from National Police Agency (January 30, 2023)

37

38

③ Brand security | Trademark & Rights Protection

72.0%

*

Of Companies in the Top
100 Japanese Corporate
Brand Ranking
Are using* % of the Best Japan Brands 2024 Rankings Top 100

39

③ Brand security | Service usage

40

Finance, Payment, andCryptoassets

Finance, Payment, and Cryptocurrency
MiningExchange
Payment

決済

Cryptocurrency

Securities/ FX

Payment

Net Bank

Share acquisition: 2.13%*1*1 As of the end of Jun 2024

Launched on July 17, 2018

(GMO Aozora Net Bank)JV established→(Sumitomo Mitsui Banking
Corporation )Investment: JPY3.86B (3.26%)(Aozora Net Bank)

50.0%

*

50.0％(14.9%)*2 If approved by major shareholders, the expected voting rights ratio will be 50%.

42

Internet Securities

Accounts

FX : 1.5M
CFD: 210K
Securities: 530K

43

Cryptoassets

CryptoassetsMiningCryptoassets mining business

Exchange

Cryptoassets Trading
Business

Payment

Crypto Accounts

640K

Cryptoassets payment┗ Issue stablecoin
44Net Bank

Bank×IT

Born in July 2018

Banking management know-how

Technology

45

Net Bank | Vision

46

Net Bank
Point1

Point2Focus on corporate clients
The core business :Exchange, Debit cards, and business loans

Point3

Bank System＋Bank API＋In-house development

Point4BaaS byGMOAozora

Point5

Approximately 40% of employees are engineers47

48

Our initiatives towards realization （1/2）
We have been driving research and development in AI, particularly in financial data analysis, andhave achieved significant results since hiring our first data scientist approximately 10 years ago.
FY2013

GMO NIKKO has built and analyzed big data analytics(DMP)infrastructure
GMO AdMarketing developed and analyzing recommendation widget systems and machinelearning models.

FY2014

Consistently reinforce our recruitment efforts for AI talented after the 1st data scientist was
hired.

FY2015Intensified our research and development efforts in AI

FY2016The initial AI-supported product ”TAXEL” was released, marking the beginning of GMO Click
Securities data analysis platform development.

FY2017

GMO Click Securities started data analysis operations

Jan.2020

Restructured to the data analysis and development group.
GMO TownWifi started utilizing casual inference techniques for measuring the effectivenessof functions and initiatives.

Apr.2022

Established of the AI Research and Development Department

49

Our initiatives towards realization （2/2）
We promptly began utilizing ChatGPT across the entire group, expecting its potential impact
after the emergence of it in November 2022.

①Time and Cost savings②Improvement in the quality of existing services③Offering new services to the AI Industry
With those 3 themes, we continue our efforts to realize in order to “becoming the No.1
Corporate Group Pioneering the Future with AI” which is our new slogan since 2024.
Details is here : https://www.gmo.jp/ai-history/50

③Offering new services to the AI Industry

Become ageneral trading company
of AI and robots

51

③Offering new services to the AI Industry | GMO AIR

AI and Robotics for Everyone

52Efforts related to Sustainability

53

ESG activities | Materiality
Solving social issues through business
Challenge

SafetyEnvironment

Dedication to the No.1 Service.
We are dedicated to providing the dominant No.1 service in the Internet
industry by operating and developing our own technology.

Responsibility to protect our customers’ smiles.
We ensure a safe and secure Internet infrastructure to protect ourcustomers’ smiles.

Solving social issues through business activities.
We strive to address pressing challenges that benefit the environment,
society, and individuals.

Strengthening the foundation of management
Human
Talent

Trust

Governance

Cultivating a group that evolves together.
An environment where every partner excels is key to creating the No.1
service.

Maximizing stakeholders’ smiles.
We aim to increase our fanbase through dialogue with everyone involved.

Foundation for Hundreds of Years.

We are building a robust structure that will ensure our business groupthrives for hundreds of years, prioritizing sustainable growth.

54

ESG activities ｜Materiality Matrix

The key issues were identified through an assessment based on opportunities andrisks from the perspective of both "importance to stakeholders" and “Significance to
GMO Internet Group."55

ESG activities ｜Sustainability management for SDGs

Our business helps
Social andenvironmental issues
to be solved.

・
・
・

56

ESG activities | Disclosure Processes/External Evaluation

Jan. 2024[Disclosure Progress]

FTSE ESG Ratings

Assessment by ESG rating agencies / Inclusion in ESG indexes

2.8

Mar. 2023

Dec. 2023*2

In April 2024, GMO Internet Group, Inc.
received a rating of “BBB” (on a scale of
AAA-CCC) in the MSCI ESG Ratings
assessment *1

Expanding Human
capital disclosure

FTSE ESG Ratings

Identifying Material Issues.

2.3

TCFD Disclosure

Expanding ESG disclosure
FTSE ESG Ratings

Introduced of a group executive
officer system

1.2

Updated CG report

Set up sustainability
promotion committee

Dec. 2013

Drawn up basic
sustainability policy
Released our Activities for SDGs

2021

2022

*1 THE USE BY GMO Internet Group, Inc. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT,RECOMMENDATION, OR PROMOTION OF GMO Internet Group, Inc. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF
MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI.

2023

2024

*2 FTSE Russell confirms that GMO Internet Group, Inc. has been independently assessed according to the index criteria, andhas satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom
Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment
funds and other products.

57

Domestic Bases andGlobal Operations

58

Domestic Bases

Sendai

5,993

Sapporo2 companies
56 partners

Domestics partners (“employees”)

Fukuoka /Kitakyushu

Osaka

2 companies
196 partners

8 companies
149 partners

12 companies
358 partners

Niigata

1 companies
3 partners

Tokyo

47 companies
4,568 partners

NagoyaMiyazaki

Shimonoseki
3 companies
156 partners

5 companies
254 partners

4 companies
10 partners
Shizuoka / Hamamatsu
4 companies
14 partners
Kobe

Kagoshima
1 companies
17 partners

1 companies
3 partners

Okinawa
4 companies 44 partners

59

Global Operations | Locations
21 countries, 56 locations, 1,674 global partners (“employees”)

Infrastructure

Finance
Cryptoassets

60

Global Operations | Wholesale & Directsale

Wholesale

Directsale

Exclusive wholesale Internet addresses
Providing the No.1 proven service in Japan

Wholesale encryption technology(SSL certificates)

61

Global Operations | Global Net Sales
11.0%(JPY billions)

9.2％

8.2％

7.42

7.4％

6.4％

GlobalSales Ratio

5.5%

Net sales
YoY

5.93

5.12
4.84

25.2%UP

3.07
2.86

Net Sales

Q1

Q2

Q3

2019

Q4

Q1

Q2

Q3

2020

Q4

Q1

Q2

Q3

2021

Q4

Q1

Q2

Q3

2022

Q4

Q1

Q2

Q3

2023

Q4

Q1

Q2

Since Q2 FY2020, MacroKiosk is no longer a consolidated
subsidiary. We deducted MacroKiosk values from net sales
retroactively to Q1 FY2017 in this chart.

2024

62

Internet for Everyone

6363