Fiscal Year 2022 Consolidated Financial Results (Japanese GAAP)
February 13, 2023
Name of Listed Company: GMO Internet Group, Inc.
Exchange Listing: Tokyo Stock Exchange
Stock Code: 9449
URL: https://www.gmo.jp/en
Representative: Masatoshi Kumagai, Founder, Chairman and Group CEO
Official Contact: Masashi Yasuda, Director, Executive Vice President and Group CFO,
Deputy to Group CEO, Head of Group Management Division
Contact Number: +81-3-5456-2555
Date of Annual General Shareholders Meeting: March 24, 2023 Start Date of Dividend Payout: －Date of Annual Report Release: March 27, 2023
Supplementary documents available pertaining to financial results: Yes
Financial results briefing: Yes (live stream only and Q&A session for institutional investors)
1. Consolidated Results in the Fiscal Year Ended December 31, 2022 (01.01.2022 - 12.31.2022)(1) Consolidated Operating Results(percentages shown represent year-on-year % change)
Profit Attributable to
Net Sales
Operating Profit
Ordinary Profit
Owners of the Parent
FYE12/2022
FYE12/2021¥ millions%¥ millions%¥ millions%¥ millions%

245,696
241,6121.7
14.7

43,746
41,1646.3
47.6

46,02543,393

6.1
59.9

13,20917,527-24.6
70.4(Note) Comprehensive Income: FYE 12/2022 ¥ 42,783 million (33.7%) , FYE 12/2021 ¥ 32,008 million (83.0%)

Net Profit per
Share
FYE12/2022
FYE12/2021

Ratio of Net Profit Ratio of Ordinary
Ratio ofto Shareholders’Profit to Total
Operating Profit to
EquityAssetsNet Sales

Net Profit per
Share (Diluted)
¥

¥

%

%

%

123.21
159.69121.58158.48

18.1
28.2

3.1
3.5

17.8
17.0

(Reference) Earnings/Loss on Equity Method Investment: FYE 12/2022 ¥-414 million, FYE 12/2021 ¥-693 million(2) Consolidated Financial Condition
Total Assets
FYE12/2022
FYE12/2021

Shareholders’ Equity
Ratio

Net Assets

Shareholders’ Equity
per Share¥ millions¥ millions%¥

1,542,740
1,418,936

154,688
140,402

4.7
5.2

676.28670.99(Reference) Shareholders’ Equity: FYE 12/2022 ¥72,176 million, FYE 12/2021 ¥73,548 million(3) Consolidated Cash Flow
Cash Flow fromOperating Activities
FYE12/2022
FYE12/2021

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

Cash and Equivalents
End of Term Balance¥ millions¥ millions¥ millions¥ millions

25,641-23,783-2,828-51,765

62,442
89,889322,229
234,041

2. Dividends
Dividends per Share
End of
End of Q2
End of Q3
Term

End of Q1

FYE12/2021
FYE12/2022
FYE12/2023(forecast)

Total
Dividend
PayoutTotal

PayoutRatio(Consolidated)

Ratio of
Dividends to
Net Assets(Consolidated)

¥

¥

¥

¥

¥

¥ millions

%

%

17.10
19.60

12.20
28.00

10.80
－

12.60
－

52.70
47.60

5,785
5,085

33.0
38.6

9.3
7.1

－

－

－

－

－

－

3. Consolidated Results Forecast for the Fiscal Year Ending December 31, 2023 (01.01.2023 – 12.31.2023)
As the Group's business “Internet Finance business,” “Cryptoassets business” and “Incubation business” are affectedby economic conditions, financial markets, cryptoassets and other market conditions, it is difficult to forecast businessperformance, and therefore we do not disclose consolidated business results and dividend forecast. GMO Financial
Holdings, Inc., our subsidiary, discloses sales indicators, such as foreign exchange transaction volume, stock brokerage
trading value, CFD trading value, cryptoassets trading value and the number of customer account, and operating
revenue on a monthly basis.
*Notes(1) Significant changes in subsidiaries during the current term (transfer of a subsidiary resulting in change in scopeof consolidation): Yes
New: －
Exclusion: 1 (GMO Click Global Markets, Inc.)(2) Changes in accounting policy, changes in accounting estimates, restatements
1. Changes resulting from revisions to accounting standards: Yes
2. Changes other than those specified above: No
3. Changes in accounting estimates: No
4. Restatements: No(3) No. of Outstanding Shares (Common Shares)
1. No. of outstanding shares at end of term (including FYE 12/2022
treasury stock)
FYE 12/2022
2. No. of treasury shares at end of term
FYE 12/2022
3. Average no. of shares during term

(Unit: shares)
110,704,401 FYE 12/2021

111,893,046

3,979,562 FYE 12/2021

2,283,361

107,206,488 FYE 12/2021

109,761,928(Reference) Summary of Non-Consolidated Financial Results
1. Non-consolidated Results in the Fiscal Year Ended December 31, 2022 (01.01.2022 - 12.31.2022)(1) Non-consolidated Operating Results(percentages shown represent year-on-year % change)
Net Sales
Operating Profit
Ordinary Profit
Net Profit
FYE12/2022
FYE12/2021¥ millions%¥ millions%¥ millions%¥ millions%

63,007
67,038

-6.0
4.3

1,232
4,275

-71.2
－

15,66914,681

6.7
103.7

6,001
11,828-49.3
68.0

Net Profit per Share(Diluted)

Net Profit per Share¥FYE12/2022
FYE12/2021

55.98
107.77¥－－(2) Non-consolidated Financial Condition
Total Assets
FYE12/2022
FYE12/2021

Net Assets

Shareholders’ Equity
Ratio

Net assets per Share¥ millions¥ millions%¥

220,777
165,115

20,61329,8709.3
18.1

193.14272.51(Reference) Shareholders’ Equity: FYE 12/2022 ¥20,613 million, FYE 12/2021 ¥29,870 million*Consolidated financial results are not subject to audit by independent auditors.
*Notes regarding the appropriate use of results forecasts and other items
Although the Company aims to pay dividends quarterly with a target payout ratio of 33% to net income attributable
to the owners of the parent, because it is difficult to forecast business performance, the amount of dividend forecast is
yet to be determined at this time. We will promptly disclose dividend forecast when it becomes available.
On February 13, 2023, we plan to stream a financial results briefing live. The presentation and explanation (voice)along with explanatory materials used on the day will be posted on our company website (https://ir.gmo.jp/en/)
promptly after the meeting.

Contents

1. Overview of Operating Results, etc. .......................................................................................................................... 2(1) Overview of operating results .............................................................................................................................. 2(2) Overview of financial condition ............................................................................................................................ 9(3) Overview of cash flows ...................................................................................................................................... 10(4) Future outlook .....................................................................................................................................................11(5) Basic policy on profit sharing and dividends for the current and next fiscal year ................................................11
2. Policy Regarding Choice of Accounting Standards ..................................................................................................11
3. Consolidated Financial Statements and Major Notes ...............................................................................................12(1) Consolidated balance sheet ................................................................................................................................12(2) Consolidated statements of income and comprehensive income .......................................................................14(3) Consolidated statement of changes in shareholders’ equity, etc. .......................................................................16(4) Consolidated statement of cash flows ................................................................................................................18(5) Notes to consolidated financial statements .........................................................................................................20(Notes regarding going concern assumption).................................................................................................20(Changes in accounting policies)....................................................................................................................20(Changes in presentation method) .................................................................................................................21(Additional information) ..................................................................................................................................22(Segment information). ...................................................................................................................................22(Per share information)...................................................................................................................................26(Significant subsequent events) .....................................................................................................................27-1-

1. Overview of Operating Results, etc.
(1) Overview of operating results◆

Overview of the financial results for the fiscal year ended December 31, 2022
Under the corporate slogan “Internet for Everyone,” GMO Internet Group has consistently focused resourceson the service to provide internet and service infrastructure since its foundation in 1995. With the increased
usage of the Internet, the volume of information available on the Internet and the volume of transactions
conducted over the Internet have increased exponentially, which has opened new business opportunities for theGroup one after another and the Internet infrastructure business with the recurring business model has beenleading revenue growth. While there are signs of economic recovery following the implementation of thecountermeasures to prevent the spread of COVID-19, the progress of Digital Transformation (DX) and the spreadof online consumption have been becoming an irreversible trend and there is an increasing need for services
provided by the Group.
Amidst such a business environment, (1) the Internet Infrastructure segment, a collective of No. 1 products,
showed steady growth mainly in Payment and Security, with the expansion of customer base. (2) In the Online
Advertising & Media segment, transactions with customers in certain industries showed strong growth as
economic activities are gradually resuming, and our own media also showed strong growth. (3) In the Internet
Finance segment, OTC FX faced a challenging business environment in terms of profitability due to continued
one-sided depreciation of the yen against the U.S. dollar although transaction volume increased due toconsolidation of Gaika ex byGMO. CFD showed strong growth thanks to increased volatility in the commodity
market. On the other hand, provision of allowance for doubtful debts was recorded in the securities business inThailand. (4) The Cryptoassets segment showed sluggish growth compared to FY2021 which enjoyed active
trading, due to a significant decrease in transaction value caused by lower volatility. (5) The Incubation segment
sold some investment securities.
As a result, for the fiscal year ended December 31, 2022, the Group recorded net sales of ¥245,696 million (up1.7% year-on-year), operating profit of ¥43,746 million (up 6.3% year-on-year) and ordinary profit of ¥46,025
million (up 6.1% year-on-year), marking its 14th straight yearly increase in both net sales and profit. Meanwhile,
net profit attributable to owners of the parent was ¥13,209 million (down 24.6% year-on-year) mainly because
provision of allowance for contract loss was recorded for shares of GMO Aozora net Bank, Ltd.
The impact of applying the Accounting Standard for Revenue Recognition was a decreases in net sales of¥30,774 million and an increase in operating profit of ¥266 million, respectively, and operating reeffesults under
the previous accounting standard would have also been increases in net sales and profit from a year ago. Alsofrom the fiscal year ended December 31, 2022, earnings from the real estate leasing business are included in
the calculation of operating profit, and accordingly the figures for the fiscal year ended December 31, 2021 werealso reclassified to reflect the change.
(Unit: ¥millions)
Previous FY

Current FY

Net sales

241,612245,696

4,083

1.7%

Operating profit

41,16443,746

2,581

6.3%

Ordinary profit

43,39346,025

2,631

6.1%

Profit attributable to owners of the parent

17,527

13,209-4,318-24.6%-2-

Change% Change

Net sales and Operating profit by segment for the consolidated fiscal year ended December 31, 2022
(Unit: ¥millions)
Previous FY

Current FY

Change% Change

138,762
19,232150,043
21,986

11,281
2,753

8.1%
14.3%

52,071

34,061-18,009-34.6%

1,186

2,188

1,001

84.4%

33,89942,552

8,652

25.5%

11,715

9,292-2,422-20.7%

20,634
9,093

6,212
-342

-14,422-9,436-69.9%

1,570

13,393

11,823753.1%

785

10,095

9,309

－

1,758

3,562

1,804

102.7%

-554

-239

315

－

-7,084-295-4,130
765

2,954
1,060

－
－

241,612
41,164

245,696
43,746

4,083

1.7%

2,581

6.3%

Internet Infrastructure
Net sales
Operating profit
Online Advertising & MediaNet sales
Operating profit
Internet FinanceNet sales
Operating profit
Cryptoassets
Net sales
Operating profit
Incubation
Net sales
Operating profit
Other
Net sales
Operating profit－

Adjustment
Net sales
Operating profit
Total
Net sales
Operating profit

1) Internet Infrastructure
The Internet Infrastructure segment provides basic and service infrastructure for customers operating
business in an online environment. Domain, hosting & cloud, ecommerce solutions, payment and security - thefive major businesses in this segment – are all developed and offered in-house and each holds top share in theirrespective markets in Japan. In addition, the segment includes consumer Internet provider services. The
following is a breakdown of results in each of the businesses comprising this segment.
Effective January 1, 2022, in light of the future business development of our service using authentication
technologies to provide secure and safe Internet, including electronic authentication, cybersecurity andtrademark management, we changed the name of a sub-segment and restructured segmentation. Namely,“Digital certificate and eSignature” was changed to “Security,” and the brand security business previously
included in “Domain” was transferred to “Security.” Accordingly, year-on-year comparison is performed using thefigures under the new segmentation.
i. Domain
Positioned as a gateway to the Group’s infrastructure segment, the domain business has steadily grown its
customer base mainly through the Company and GMO Pepabo. The number of domain registration andrenewals during the fiscal year ended December 31, 2022 was 5.46 million (down 1.4% year-on-year) and total
number of domains under management as of December 31, 2022 was 7.11 million (down 1.1% year-on-year)
partly due to the trend of large customers despite strong sales in .shop in Japan and overseas. The effect of thechange in accounting standard was a decrease in net sales of ¥483 million, and as a result, net sales were
¥8,975 million (down 11.4% year-on-year).
ii. Hosting & Cloud
The hosting & cloud business responds to growing diversification of client needs through shared, dedicated,
VPS and cloud-based offerings under a multi-brand strategy mainly through the Company, GMO GlobalSign-3-

Holdings and GMO Pepabo. Thanks to a steady growth in sales of retail server, the number of web hosting
contracts as of December 31, 2022 was 1.10 million (up 3.4% year-on-year) and net sales were ¥18,450 million(up 14.0% year-on-year).
iii. Ecommerce solutions
Ecommerce solutions are offered mainly by GMO Pepabo and GMO MAKESHOP and comprise EC platforms
that provide platforms for online stores, minne, a C2C handmade market, SUZURI, an original merchandise
production/sales service, and O2O support service. In EC platform, the number of contracts of Color me shop fora free plan that allows to open an online store without a monthly fee increased, so while the number of paid
stores as of December 31, 2022 decreased 8.5% year-on-year to 57 thousand, total transaction volume showedsolid growth at ¥490.5 billion (up 5.0% year-on-year) mainly in MakeShop which offers high-price plans. For
minne, the total transaction volume decreased by 0.7% year-on-year to ¥15.0 billion as a reaction to stay-athome consumption as economic activities resumed. The effect of the change in accounting standard was adecrease in net sales of ¥2,740 million, and as a result, net sales were ¥15,202 million (down 8.9% year-onyear).
iv. Security
This business offers security services to provide secure and safe Internet for everyone, including digital
certification security such as SSL server certificates and e-contract service GMO Sign provided mainly through
GMO GlobalSign Holdings, cybersecurity provided by GMO Cybersecurity by Ierae, and brand security provided
by GMO BRAND SECURITY Inc. Results of GMO Cybersecurity by Ierae have been included in the consolidated
results from the fiscal year ended December 31, 2022. SSL server certificate service returned to a favorable
growth trend as the effect of the shortened certificate lifespan from two years to one year to improve security fully
subsided. As a result, this sub-segment reported net sales of ¥12,749 million (up 78.0% year-on-year).
v. Payment
Payment services are mainly operated by GMO Payment Gateway and offer comprehensive payment-related
service and finance-related services. In the payment-related service, online/recurring payments in the
Ecommerce market showed strong growth, and sales of a next-generation payment platform “stera” terminal in
the face-to-face payments also increased in response to an expansion of cashless payment market. In financerelated services, the transaction volume of a deferred payment service “GMO Payment After Delivery” continued
to show favorable growth. As a result, the number of transactions and the transaction volume increased, and net
sales increased to ¥52,372 million (up 17.5% year-on-year).
vi. Provider
In this sub-segment, the Company offers Internet provider services for consumers. The mobile line service
which had declined sharply started to show signs of flattening out due mainly to product improvement. The fixedline service also showed steady growth mainly in our in-house services. As a result, the number of subscriptionsat December 31, 2022 was 2.25 million (up 1.2% year-on-year). The effect of the change in accounting standard
was a decrease in net sales of ¥3,625 million, and as a result, net sales were ¥38,981 million (down 5.3% yearon-year).
Overall, the Internet Infrastructure segment recorded net sales of ¥150,043 million (up 8.1% year-on-year) andoperating profit of ¥21,986 million (up 14.3% year-on-year). The effect of applying the Accounting Standard for
Revenue Recognition was a decrease in net sales of ¥8,193 million and an increase in operating profit of ¥181
million.
2) Online Advertising & MediaThe Online Advertising & Media segment provides marketing solutions for online businesses. The following isa breakdown of results in each of the businesses comprising this segment.
i. Online AdvertisingThis sub-segment provides comprehensive Internet advertising services such as advertising agency and ad
platform mainly through GMO AD Partners and GMO TECH. In the advertising agency service, demand foradvertising showed solid growth due to further recovery in the market which was severely hit by the spread of
COVID-19. The high-margin in-house affiliated ads also showed favorable growth. On the other hand, in-house
AdTech products such as AkaNe, an ad network for smartphones, and ReeMo, an ad distribution platform (DSP)
specialized in collecting users most likely to be interested in the contents, continued to show sluggish growth due-4-to competition in media buying. The effect of the change in accounting standard was a decrease in net sales of¥22,351 million, and as a result, net sales amounted to ¥18,600 million (down 45.9% year-on-year).
ii. Internet MediaThis sub-segment provides advertising space through operation of our own media and the marketing support
services mainly through GMO Media. Advertising revenue increased due to a favorable unit price movement andincreased pageviews. The effect of the change in accounting standard was a decrease in net sales of ¥4,455
million, and as a result, net sales were ¥10,320 million (down 24.4% year-on-year).
Overall, the Online Advertising & Media segment recorded net sales of ¥34,061 million (down 34.6% year-onyear), and operating profit of ¥2,188 million (up 84.4% year-on-year). The effect of applying the AccountingStandard for Revenue Recognition was a decrease in net sales of ¥26,807 million and an increase in operating
profit of ¥84 million, and operating results under the previous accounting standard would have been increases inboth net sales and operating profit.
3) Internet Finance
The Internet Finance segment provides online financial services for retail investors mainly through GMO Click
Securities, a consolidated subsidiary of GMO Financial Holdings. As of December 31, 2022, the number of OTC
FX accounts increased to 1,426 thousand (up 3.9% year-on-year), the number of securities accounts increased to
505 thousand (up 5.4% year-on-year) and the number of CFD accounts increased to 185 thousand (up 12.6%
year-on-year). In OTC FX, the transaction volume increased year on year due to the rapid depreciation of the yen
against the U.S. dollar, but we continued to face a challenging environment in terms of profitability due to increased
costs of cover transactions. CFD showed growth both in trading value and revenue thanks to increased volatility
in the crude oil and commodity markets. Meanwhile, the securities business in Thailand recorded provision ofallowance for doubtful debts of approximately ¥3.5 billion, resulting in a significant decrease in profit.
Overall, the Internet Finance segment recorded net sales of ¥42,552 million (up 25.5% year-on-year) andoperating profit of ¥9,292 million (down 20.7% year-on-year).
4) Cryptoassets
The Cryptoassets segment operates business pertaining to “mining,” “exchange” and “payment” ofcryptoassets. Performance of each business is as follows.
i. Cryptoassets mining
The Cryptoassets mining business runs mining centers. Profitability declined significantly from a year earlier
due to increased hash rates and a fall in bitcoin prices, and net sales amounted to ¥1,763 million (down 72.6%
year-on-year).
ii. Cryptoassets exchangeThis sub-segment is engaged primarily in spot trading and leveraged transactions of cryptoassets mainly
through GMO Coin, a consolidated subsidiary of GMO Financial Holdings. Thanks to continued marketing
activities, the customer base has steadily expanded with the number of customer accounts as of December 31,
2022 increasing to 547 thousand (up 15.3% year-on-year). Meanwhile, the transaction value decreased due tothe trend in the stagnant cryptoassets market, and revenue significantly decreased year on year compared to
FY2021 which enjoyed the brisk market. As a result, net sales were ¥4,150 million (down 69.0% year-on-year).
Overall, the Cryptoassets segment recorded net sales of ¥6,212 million (down 69.9% year-on-year) andoperating loss of ¥342 million (operating profit of ¥9,093million for the fiscal year ended December 31, 2021).
5) Incubation
This segment is engaged in investing in domestic and overseas internet related companies aimed at capitalgains, supporting business expansion, and supporting corporate value improvement mainly through GMO
Venture Partners. Net sales were ¥13,393 million (up 753.1% year-on-year), and operating profit was ¥10,095
million (operating profit of ¥785 million for the fiscal year ended December 31, 2021) due to sale of some foreign
investment securities.

-5-

(Reference 1) Changes in Operating Results and Financial Condition by Quarter(Unit: ¥millions)
Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022Net sales

64,66056,06569,49057,57862,561

Operating profit

10,531

11,12819,812

7,069

5,736

Ordinary profit

11,171

12,09921,382

8,955

3,586

Profit attributable toowners of the parent(- represents loss)

4,227

6,431

9,074

-1,651-644

1,418,936

1,487,484

1,433,731

1,545,403

1,542,740

73,54870,41578,904

74,20972,176

Total assets
Shareholders’ equity-6-

(Reference 2) Quarterly Results by Segment/Business(Unit: ¥millions)
I Net Sales by Segment
Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Provider (ISP)

9,825

9,420

9,606

10,009

9,944

Domain

2,188

2,221

2,244

2,379

2,130

Hosting & cloud

4,226

4,484

4,569

4,693

4,703

Ecommerce solutions
Security

4,262

3,559

3,622

3,846

4,173

2,599

2,534

3,090

3,285

3,838

Payment

Internet Infrastructure

12,013

12,025

12,657

13,108

14,579

Other

736

512

874

749

1,174

Total

35,852

34,75936,66638,07440,544

Online advertising

8,602

3,831

4,937

5,076

4,755

Internet media

3,788

2,707

2,401

2,598

2,613

Internet research and other

1,208

1,353

1,174

1,211

1,401

Total

13,599

7,892

8,512

8,886

8,770

11,368

10,796

10,363

10,002

11,389Cryptoassets exchange

1,740

1,078

890

527

1,654

Cryptoassets mining

1,864

856

394

241

270

Online Advertising & MediaInternet Finance
Total
Cryptoassets

Cryptoassets payment
Total

770

127

10

6

154

4,375

2,062

1,294

775

2,079

607

536

12,8560065,80456,047

69,69357,73862,783

562

835

865

903

958

Incubation
Total
Sub total
Other
Adjustment-1,705-817-1,068-1,063-1,181Net Sales

64,66056,06569,49057,57862,561Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

5,530

6,283

5,586

4,753

5,363

II Operating Profit by Segment
Internet Infrastructure
Online Advertising & Media

-136

927

547

737

-24

Internet Finance

3,856

3,650

2,975

2,683

-17

Cryptoassets

1,241

159

-397

-821

717

Incubation

311

252

10,162-96-223

Sub total

10,803

11,272

18,874

7,256

5,816

-171

-90

-3

-85

-60

Other
Adjustment
Operating Profit

-99

-53

941

-101

-20

10,531

11,12819,812

7,069

5,736

-7-

(Reference 3) Description of businesses in each segment

Business Segment
DomainHosting & cloud

Ecommerce
solutionsInternet
Infrastructure

Security

Payment

OnlineAdvertising &Media・Provision, operation, management, and maintenance of shared, VPS,
dedicated and cloud-based web hosting services including Onamae.com
Rental Server, ConoHa by GMO, Z. com Cloud, GMO Cloud VPS, GMO
Cloud ALTUS, GMO Cloud Private, Lolipop!, heteml, and 30days Album
・SaaS based services for online store building including Color me shopand operation of EC platform to set up net shop offered by MakeShop.
・Operation of C2C handmade marketplace “minne”
・Operation of production/sales service of original merchandise including
SUZURI and canvath・Operation of factoring service for freelancers “FREENANCE”
・Operation of ecommerce/O2O support services, etc.
・Operation of OMAKASE, reservation management service forrestaurants
・Web design, operational support and system consulting, etc.
・DomainSSL, OrganizationSSL, and other SSL certificates, code signing
certificates, PDF document signing, client certificates and other digital
certificate services
・e-contract service “e-contract service GMO Sign”
・Cybersecurity service including vulnerability assessment of web andsmartphone applications, penetration test and security incident response
・Brand security service including brand protection measures, detectionand elimination of fake products, provision of trademark management
system, and acquisition and management of domain name
・PG Multi-Payment Service for mail order and ecommerce business,
comprehensive payment processing services for public sector, andfinance-related service including early payment service, transaction
lending, Sokkyu by GMO, and GMO payment after delivery

Provider・GMO TokuToku BB and other Internet provider services.

Onlineadvertising・Comprehensive online advertising service including listing, mobile andad networks, reward advertising, affiliate advertising.
・Advertising planning and production

・Operation of online media such as community site for teenage girls“prican,” programming educational portal “coeteko,” point site “Point
Town,” game platform “gesoten,” joint purchase coupon site “Kumapon”
Internet media
and aesthetic medical ticket purchase site “KIREIPASS,” life informationsite for career women “michill” and ad distribution to own media
・SEM Media: Sales of SEO.
Internet research ・Provision of Internet research systems, management and operation of& other
online research panel including GMO Research Cloud PanelInternet FinanceInternet finance

Cryptoassets

Cryptoassets
exchange
Cryptoassets
miningCryptoassets
payment

Incubation

Main Operations
・Domain registry services including “shop” and “tokyo”
・Domain registration services: Onamae.com, MuuMuu Domain, and
VALUE-DOMAIN

Venture capital・Operation of online securities trading, FX trading, CFD trading, etc.
・Spot trading and leveraged transactions of cryptoassets, etc.
・Operation of mining centers
・Issuance and redemption of stablecoin “GYEN” and “ZUSD”
・Investment in private Internet startups-8-

(2) Overview of Financial Condition
Assets, Liabilities and Net Assets(Assets)
As of December 31, 2022, total assets increased ¥123,804 million from December 31, 2021 to ¥1,542,740
million. Major factors included an increase of ¥101,834 million in cash and deposits, an increase of ¥49,212
million in various assets due to fluctuations in customer assets in the Securities segment (deposits, margintransaction assets, loan secured by securities, short-term guarantee deposits and variation margin paid) and adecrease of ¥54,221 million in cryptoassets under custody.
(Liabilities)
As of December 31, 2022, liabilities increased ¥109,518 million from December 31, 2021 to ¥1,388,051
million. Major factors included an increase of ¥37,858 million in short-term debt, an increase of ¥52,858 million in
long-term debt (including current portion), an increase of ¥48,033 million in various liabilities due to fluctuations incustomer assets in the Securities segment (deposits received, margin transaction liability, guarantees received,
variation margin received, and loans payable secured by securities) and a decrease of ¥54,427 million in
deposits received for cryptoassets.
(Net Assets)
As of December 31, 2022, net assets increased ¥14,286 million from December 31, 2021 to ¥154,688 million.
Major factors included an increase of ¥1,974 million in earned surplus (consisting of an increase from recording
profit attributable to owners of the parent totaling ¥13,209 million, a decrease from dividend payments of ¥6,466
million, and a decrease of ¥2,416 million in the beginning balance of earned surplus as a result of application of
Accounting Standard for Revenue Recognition), an increase of ¥15,666 million in non-controlling interests, adecrease of ¥4,482 million due to acquisition and retirement of treasury stock and an increase of ¥2,297 million
in foreign currency translation adjustments.

-9-(3) Overview of Cash Flows
Cash Flows
As of December 31, 2022, cash and equivalents increased ¥88,187 million from December 31, 2021 to¥322,229 million. The following is a summary of cash flow activity during the fiscal year ended December 31,
2022.
(Cash Flow from Operating Activities)
Inflow in operating activities was ¥25,641 million (¥23,783 million of outflow in FY2021). Major inflow included
net profit before adjustment for tax, etc. (¥57,660 million) and an increase in deposits received (¥11,742 million).
Major outflow included a decrease due to recognition of gain on sale of investment securities (¥21,127 million)
and payment of corporate taxes, etc. (¥18,697 million).
(Cash Flow from Investing Activities)
Outflow from investing activities totaled ¥2,828 million (¥51,765 million of outflow in FY2021). Major inflow
included sales of investment securities (¥24,509 million). Major outflow included placement of fixed term deposit(¥10,813 million), acquisition of subsidiary stock resulting in change in scope of consolidation (¥6,561 million),acquisition of intangible fixed assets (¥6,085 million) and acquisition of tangible fixed assets (¥4,316 million).
(Cash Flow from Financing Activities)
Inflow from financing activities totaled ¥62,442 million (¥89,889 million of inflow in FY2021). Major outflow
included repayment of long term debt (¥10,262 million), dividend payments (¥6,467 million), dividend payments
to non-controlling interests (¥9,209 million) and acquisition of treasury stock (¥7,517 million). Major inflow
included proceeds from new long term debt (¥62,270 million), changes in short term debt (¥34,187 million).

(Reference) Cash Flow Indicators
FY2018FY2019FY2020

FY2021

FY2022

Shareholders’ equity ratio (%)

7.0

6.2

4.8

5.2

4.7

Shareholders’ equity ratio(market value) (%)

22.5

27.0

31.3

21.4

17.1

Ratio of interest-bearing
liabilities to cash flow (years)

8.7

17.8

4.8

－

15.4

Interest coverage ratio (times)

19.3

9.6

33.5

－

10.2

Shareholders’ equity ratio (%) : Shareholders’ equity / Total assets
Shareholders’ equity ratio (market Value) : Market capitalization / Total assets
Ratio of interest-bearing liabilities to cash flow: Interest-bearing liabilities / Cash flow
Interest coverage ratio: Cash flow / Interest payment(*1) All financial indicators are calculated on a consolidated basis.
(*2) Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.
(*3) Cash flow refers to operating cash flow.
(*4) Interest-bearing liabilities include all liabilities on the consolidated balance sheet on which interest is payable.
(*5) For the year ended December 31, 2021, ratio of cash flow to Interest-bearing liabilities and interest coverage
ratio are not calculated as the Group reported negative operating cash flow.

- 10 -

(4) Future outlook
As the Group's business “Internet Finance business,” "Cryptoassets business" and “Incubation business” areaffected by economic conditions, financial markets, cryptoassets and other market conditions, it is difficult toforecast business performance, and therefore we do not disclose consolidated business results forecast. Instead,
GMO Financial Holdings Co., Ltd., our subsidiary, discloses sales indicators, such as foreign exchange transaction
volume, stock brokerage trading value, CFD trading value, cryptoasset trading value and the number of customer
account, and operating revenue on a monthly basis.
Meanwhile, we expect other businesses mainly “Internet Infrastructure” to grow steadily on the grounds thatonline consumption maintains high-level growth even after the increase in stay-at-home demand driven by the
spread of COVID-19 and that the customer base continues expanding, while making investments in our e-contract
service “e-contract service GMO Sign” having the potential for further market growth.
(5) Basic policy on profit sharing and dividends for the current and next fiscal years
The Company demonstrates a clear commitment toward returning value to shareholders through its dividend
policy. Under the policy, the Company aims to return 50% of profits to shareholders. The Company’s target dividend
payout ratio is a minimum of 33% of consolidated net profit (net profit attributable to owners of the parent) while wewill aim to allocate 50% of consolidated net profit (net profit attributable to owners of the parent) net of total
dividends to the acquisition of treasury stock after taking into consideration business results and financial condition,and taking a flexible approach in accordance with share price. We have also adopted a quarterly dividend system toenable prompt profit return to shareholders.
The Company will pay annual dividend of ¥47.60 per share (dividend payout ratio: 38.6%) for the fiscal year
ended December 31, 2022.
As it is difficult to forecast business results as explained above, we will not disclose dividend forecast for the next
fiscal year but intend to pay dividends in accordance with the above policy.
2. Policy Regarding Choice of Accounting Standards
The Group prepares its consolidated financial statements based on Japanese GAAP in consideration ofcomparability between periods and with other companies.
Regarding the application of IFRS, we will take appropriate actions in consideration of domestic and international
trends.

- 11 -

3. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: ¥millions)
Previous Fiscal Year(As of Dec 31, 2021)

Current Fiscal Year(As of Dec 31, 2022)

AssetsCurrent Assets
Cash and deposits
Trade notes, accounts receivable andcontract assets
Trade notes and accounts receivable
Operational investment securities

240,136

341,970－

33,96327,382－

8,449

11,724

Owned cryptoassets

16,296

4,730

Cryptoassets under custody

115,973

61,751

Securities segment deposits
Securities segment margintransaction assets
Securities segment loan secured by
securities
Securities segment short term
guarantee deposits
Securities segment variation margin paid

478,489

486,478

134,732

143,065

9,626

12,69567,86273,97570,512

94,219Other

127,359

152,029

Allowance for doubtful debts
Total Current Assets-3,835-8,5901,292,984

1,408,015

13,584

13,871

Fixed Assets
Tangible fixed assets
Buildings and structures (net)
Tools and equipment (net)

6,046

6,242

Land

20,78120,805

Lease assets (net)

3,526

3,959

850

944

44,78845,825

Goodwill

14,251

17,708

Software

10,181

11,472Other

15,132

16,756

Total intangible fixed assets

39,56645,93628,60529,780

Deferred tax asset

2,328

4,053

Other

11,362

9,791

-699

-662

Other (net)Total tangible fixed assets
Intangible fixed assets

Investments and other assets
Investment securities

Allowance for doubtful debts
Total investments and other assets
Total Fixed Assets
Total Assets- 12 -

41,59742,963125,952

134,725

1,418,936

1,542,740

(Unit: ¥millions)
Previous Fiscal Year(As of Dec 31, 2021)

Current Fiscal Year(As of Dec 31, 2022)

Liabilities
Current liabilities
Trade notes and accounts payable

11,921

14,430

Short term debt

163,465

201,324

9,530

20,693

Amount payable

45,22847,075

Deposits received for cryptoassets

116,161

61,734

Securities segment deposits received

55,39253,573

Securities segment margin transaction liability

30,55435,929Securities segment guarantees received

519,131554,407

Current portion of long term debt

Securities segment variation margin received

7,677

11,259Securities segment debt secured by securities

20,614

26,233

Accrued corporate tax etc.

4,731

7,324

Allowance for bonuses

2,948

2,293

Allowance for bonuses to directors

1,452

657

Allowance for contract loss

－

6,341

Advance payment received

11,082

3,195

Contract liabilities－

18,314

Deposits received

110,817

122,657

Other

34,272

20,202

1,144,982

1,207,649

Bonds

45,00051,000Convertible bonds with equity warrants

20,99020,770Long term debt

55,67897,373

Deferred tax liability

1,568

1,319

Other

9,390

8,988

132,627

179,451924

949

Total Current Liabilities
Fixed Liabilities

Total Fixed Liabilities
Statutory Reserve
Financial instruments transaction liability reserve
Total Statutory Reserve
Total Liabilities

924

949

1,278,533

1,388,051

Net Assets
Shareholders’ Equity
Capital stock

5,000

5,000

Capital surplus

34,32833,280Earned surplus

35,75637,730Treasury stock-5,684-10,166

Total Shareholders’ Equity

69,40065,843

3,559

3,397

－

48

588

2,886

4,147

6,332

Accumulated Other Comprehensive Income
Other securities valuation differences
Deferred hedging profit/loss
Foreign currency translation adjustments
Total Accumulated Other Comprehensive Income
Equity Warrants
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets- 13 -

52

43

66,802

82,469140,402

154,688

1,418,936

1,542,740

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Unit: ¥millions)
Previous Fiscal Year(01.01.2021-12.31.2021)

Current Fiscal Year(01.01.2022-12.31.2022)

241,612Net Sales

245,696

Cost of Sales

112,72995,809Gross Profit on Sales

128,883

149,886

Sales, General & Administrative Expenses

87,718106,139

Operating Profit

41,16443,746

Non-Operating Revenue
Interest received

231

584

Dividends received

757

1,099

1,540

1,371

Gain on investments in partnership

462

195

Gain on deposit settlement

193－

Currency translation gain

Other

837

1,877

4,023

5,128

Interest paid

500

922

Commission paid

76

477

Equity method investment loss

693

414

Bond issuance cost

267

32

Loss on derivatives－

648

Total Non-Operating Revenue
Non-Operating Expenses

Other
Total Non-Operating Expenses
Ordinary Profit

256

354

1,794

2,850

43,39346,025649

21,127

268

－

221

1,060

1,139

22,187Extraordinary Profit
Gain on sale of investment securities
Reversal of financial instruments transaction
liability reserve
Other
Total Extraordinary Profit
Extraordinary Loss
Loss on valuation of investment securities

30

507

Impairment loss

725

3,290

－

6,341

－

25

Provision of allowance for contract loss
Provision of financial instruments transaction
liability reserve
Other

62

386

Total Extraordinary Loss

818

10,552

Net Profit Before Adjustment for Tax etc.

43,71557,660

Corporate, Municipal and Enterprise Taxes

13,737

19,498

Corporate Tax etc. Adjustment

1,521-1,530Total Corporate Taxes etc.

15,25917,967

Net Profit

28,456

39,692

Profit Attributable to Non-Controlling Interests

10,92826,482

Profit Attributable to Owners of the Parent

17,527

13,209- 14 -

Consolidated Statement of Comprehensive Income(Unit: ¥millions)
Previous Fiscal Year(01.01.2021-12.31.2021)
Net Profit

Current Fiscal Year(01.01.2022-12.31.2022)

28,456

39,692

2,231-1,192Other Comprehensive Income
Other securities valuation differences
Deferred hedging profit/loss
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income

9

69

1,281

4,464

29

-250

3,552

3,090

Comprehensive Income

32,00842,783(Breakdown)Comprehensive income attributable to Owners of
the Parent
Comprehensive income attributable to Noncontrolling Interests

20,937

15,394

11,071

27,389- 15 -

(3) Consolidated Statement of Changes in Shareholders’ Equity, etc.
Previous Fiscal Year (01.01.2021 – 12.31.2021)(Unit: ¥millions)Shareholders’ equity
CapitalsurplusCapital

5,000

Beginning balance

27,574

EarnedsurplusTreasurystock

26,959Total
shareholders’equity-9,36650,167

Cumulative effects of changes in accounting
policies－

5,000

Restated balance

27,574

26,959-9,36650,167

Changes during the year
Dividends-5,562-5,562

Profit attributable to owners of the parent

17,527

17,527

Acquisition of treasury stock-1,903-1,903Retirement of treasury stock-3,1683,168－

Disposition of treasury stock

680

2,417

3,097

Transfer from earned surplus to capital surplus

3,168

Changes in the parent’s interests due totransactions with non-controlling interests
Changes in items other than shareholders’equity during the year (net)Total changes during the year

-3,168

－

6,072

6,072
－

Ending balance

－

6,753

8,796

3,682

19,2325,000

34,32835,756-5,684

69,400(Unit: ¥millions)
Accumulated other comprehensive income
Othersecurities
valuationdifferences

Beginning balance

1,184

Deferredhedging
profit/loss

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income

-437

738

-9

Equitywarrants

Noncontrollinginterests

67

49,140

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets100,114
－

1,184

-9

-437

738

67

49,140100,114

Changes during the year
Dividends-5,562

Profit attributable to ownersof the parent

17,527

Acquisition of treasury stock-1,903Retirement of treasury stock－

Disposition of treasury stock

3,097

Transfer from earned surplus
to capital surplus
Changes in the parent’s
interests due totransactions with noncontrolling interests
Changes in items other thanshareholders’ equity during
the year (net)

－

6,072

2,374

9

1,025

3,409

-15

17,66121,055

Total changes during the year

2,374

9

1,025

3,409

-15

17,66140,288Ending balance

3,559

－

588

4,147

52

66,802

140,402- 16 -

Current Fiscal Year (01.01.2022 – 12.31.2022)(Unit: ¥millions)Shareholders’ equity
CapitalsurplusCapital

5,000

Beginning balance

34,328Cumulative effects of changes in accounting
policies

EarnedsurplusTreasurystock

35,756

Total
shareholders’equity-5,684

69,400-2,416
5,000

Restated balance

34,328-2,41633,340-5,684

66,984

Changes during the year
Dividends-6,466-6,466

Profit attributable to owners of the parent

13,20913,209Acquisition of treasury stock
Retirement of treasury stock-7,515-7,515

3,032－-3,032

Disposition of treasury stock－

Transfer from earned surplus to capital surplus

2,352

Changes in the parent’s interests due totransactions with non-controlling interests
Changes in items other than shareholders’equity during the year (net)Total changes during the year

-2,352－-367

Ending balance

-367

－

-1,0484,390-4,482-1,1405,000

33,28037,730-10,166

65,843(Unit: ¥millions)
Accumulated other comprehensive income
Othersecurities
valuationdifferences

Beginning balance

3,559

Deferredhedging
profit/loss

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income

588

4,147

－

Equitywarrants

Noncontrollinginterests

52

66,802

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets140,402-2,416

3,559

588

－

4,147

52

66,802

137,986

Changes during the year
Dividends-6,466

Profit attributable to ownersof the parent

13,209Acquisition of treasury stock-7,515Retirement of treasury stock－

Disposition of treasury stock－

Transfer from earned surplus
to capital surplus－

Changes in the parent’s
interests due to transactions
with non-controlling interests
Changes in items other thanshareholders’ equity during
the year (net)

-367

-161

48

2,297

2,184

Total changes during the year

-161

48

2,297

Ending balance

3,397

48

2,886

- 17 --8

15,666

17,842

2,184-8

15,666

16,7026,332

43

82,469154,688

(4) Consolidated Statement of Cash Flows(Unit: ¥millions)
Previous Fiscal Year(01.01.2021-12.31.2021)

Current Fiscal Year(01.01.2022-12.31.2022)

Cash Flow from Operating Activities
Net profit before adjustment for tax etc.

43,71557,660Depreciation expenses

8,817

11,339725

3,290

Impairment loss
Amortization of goodwill

699

2,327

Interest and dividends received-989-1,683

Interest paid

500

2,480

Gain or loss on derivatives (- represents gain)－

648

Commission paid

76

477

Bond issuance cost
Equity method investment gain or loss(- represents gain)
Gain or loss on investments in partnership(- represents gain)
Gain or loss on valuation of investment securities(- represents gain)
Gain or loss on sale of investment securities(- represents gain)
Changes in allowance for doubtful debts(- represents decrease)
Changes in financial instruments transaction
liability reserve (- represents decrease)
Changes in allowance for bonuses(- represents decrease)
Changes in allowance for contract loss(- represents decrease)
Changes in trade receivables (- represents increase)

267

32

693

414

-462

-195

30

507

-1,033-21,127

482

4,705

-268

25

622

-1,607－

6,341-2,361

2,110

Changes in trade payables (- represents decrease)-5,089-9,230Changes in amount payable (- represents decrease)

3,848

844

Changes in deposits received (- represents decrease)
Changes in securities segment deposits(- represents increase)
Changes in securities segment guarantee deposits(- represents increase)
Changes in securities segment margin variation paid andreceived
Changes in securities segment deposits and guarantees
received (- represents decrease)
Changes in securities segment margin transaction assets
and liabilities
Changes in securities segment debt secured by securities(- represents decrease)
Changes in securities segment loan secured by securities(- represents increase)
Changes in owned cryptoassets (- represents increase)

3,202

11,742-12,599-7,989-6,059-6,113628-20,125

6,668

33,457-31,941-2,957

-956

5,619

77

-3,069-6,834

11,565

Other-10,824-35,748

Sub total-8,36245,741724

1,115Interest and dividends received
Interest paid

-1,548-2,518

Corporate tax etc. paid

-14,597-18,697

Cash Flow from Operating Activities-23,783

25,641- 18 -

(Unit: ¥millions)
Previous Fiscal Year(01.01.2021-12.31.2021)

Current Fiscal Year(01.01.2022-12.31.2022)

Cash Flow from Investing Activities
Placement of fixed term deposit-2,438-10,813

Withdrawal of fixed term deposit

2,061

2,279

Acquisition of tangible fixed assets-33,082-4,316

Acquisition of intangible fixed assets-3,806-6,085Acquisition of investment securities-9,955-3,938Proceeds from sale of investment securities

11,191

24,509-5-1,305

Origination of loans receivableCollection of loans receivable
Payment of deposit money
Collection of deposit money
Acquisition of subsidiary stock resulting in change inscope of consolidation
Proceeds from acquisition of subsidiary stock resulting inchange in scope of consolidation
Other
Cash Flow from Investing Activities

67

1,621

-5,862-5,489

5,951

7,087

-16,066-6,561

35

212

145

-28

-51,765-2,828-6,121

34,187

Cash Flow from Financing Activities
Net changes in short term debts (- represents decrease)
Proceeds from new long term debt

79,32862,270

Repayment of long term debt

-36,524-10,262

Acquisition of treasury stock-1,904-7,517

Acquisition of subsidiaries’ treasury stock

-168

-201

Proceeds from issuance of bonds
Proceeds from issuance of convertible bonds with equity
warrants
Gain on sale and leasebacks

44,808

5,967

21,023－993－

Payment of installment and lease obligations-1,029-1,785

Payment from investment partners

877

2,281

Payment to investment partners-198-7,036

273

344

Payment of dividends-5,558-6,467

Payment of dividends to non-controlling interests
Acquisition of subsidiary stock without change in scope of
consolidation
Cash Flow from Financing Activities-5,452-9,209-458-12789,88962,442

1,023

2,933

Payment from non-controlling interests

Currency Translation Adjustment on Cash and Equivalents
Changes in Cash and Equivalents (- represents decrease)

15,364

88,187

Balance of Cash and Equivalents at Beginning of Year

218,676

234,041

Balance of Cash and Equivalents at End of Year

234,041

322,229- 19 -

(5) Notes to consolidated financial statements(Notes regarding going concern assumption)
Not applicable(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
On January 1, 2022, the Company applied “Accounting Standard for Revenue Recognition” (AccountingStandards Board of Japan (“ASBJ”) Statement No.29, March 31, 2020, “Accounting Standard for Revenue
Recognition”), etc., and recognizes revenue at an amount that it expects to receive in exchange for the promised
goods or services when the control of the goods or services is transferred to a customer.
Accordingly, we identified performance obligations in the contracts with customers and changed the method torecognize certain initial cost revenue in the Internet Infrastructure segment from recognizing at the commencementof service to recognizing over the service contract period. In addition, the method to recognize revenue for services
which the Group is deemed to have provided as an agent was changed from recognizing at gross amount torecognizing at net amount.
We applied the Accounting Standard for Revenue Recognition, etc. from January 1, 2022 pursuant to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition, with the cumulative effect of the retrospective application, assuming the new accounting policy had
been applied to periods prior to January 1, 2022, adjusted to the beginning balance of earned surplus as of January
1, 2022.
As a result, net sales for the fiscal year ended December 31, 2022 decreased by ¥30,774 million, cost of sales
decreased by ¥28,074 million, sales, general and administrative expenses decreased by ¥2,956 million, andoperating profit, ordinary profit and net profit before adjustment for tax etc. increased by ¥266 million, respectively.
Also, the beginning balance of earned surplus decreased by ¥2,416 million.
As a result of the application of the Accounting Standard for Revenue Recognition, etc., “Trade notes and accounts
receivable” which was presented in “Current Assets” on the consolidated balance sheet as of December 31, 2021
is included in “Trade notes, accounts receivable and contract assets” from January 1, 2022. Also, “Advance payment
received” which was presented in “Current liabilities” and “Unearned revenue” which was included in “Other” in“Current liabilities” are presented as “Advance payment received” (¥3,195 million) and “Contract liabilities” (¥18,314
million), respectively, for the fiscal year ended December 31, 2022.
Pursuant to the transitional treatment stipulated by Paragraph 89-2 of the Accounting Standard for Revenue
Recognition, the Group did not reclassify figures for the year ended December 31, 2021 to conform to the newpresentation method.
(Application of Accounting Standard for Fair Value Measurement)
On January 1, 2022, the Company applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019, “Accounting Standard for Fair Value Measurement”), etc., and the new accounting policies
specified in the Accounting Standard for Fair Value Measurement, etc. are applied prospectively pursuant to thetransitional treatment prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement andParagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The
impact on the Consolidated Financial Statements is insignificant.

- 20 -

(Changes in presentation method)(Changes in the real estate business)
Real estate leasing revenue and costs were previously recorded in “Non operating revenue” and “Non operating
expenses” but are recorded in “Net sales” and “Cost of sales” from the fiscal year ended December 31, 2022.
The Company acquired multiple trust beneficiary rights in December 2021. We also determined that the realestate leasing business will generate long-term and stable revenue and decided to operationalize the business as
a new profit center from the fiscal year ended December 31, 2022. Accordingly, we changed the presentation
method to more appropriately present a true picture of the business operation.
Following such change, “Land” which was included in “Other” in “Tangible fixed assets” for the fiscal year ended
December 31, 2021 is separately presented from the fiscal year ended December 31, 2022 as it became material.
The consolidated financial statements for the fiscal year ended December 31, 2021 were reclassified to reflect
this change in presentation.
As a result, in the consolidated balance sheet as of December 31, 2021, “Buildings and structures (net)” of¥5,692 million and “Other (net)” of ¥1,126 million which were presented in “Tangible fixed assets” and “Other” of¥39,760 million which was presented in “Investments and other assets” were reclassified to “Buildings andstructures (net)” of ¥13,584 million, “Land” of ¥20,781 million and “Other (net)” of ¥850 million in “Tangible fixed
assets” and “Other” of ¥11,362 million in “Investments and other assets.” Also, “Other” of ¥165 million which waspresented in “Non operating revenue” in the consolidated statement of income for the fiscal year ended December
31, 2021 was reclassified to “Net sales.” “Other” of ¥98 million presented in “Non operating expenses” wasreclassified to “Cost of sales.” And “Outflow in investment property” of ¥-28,391 million which was presented in“Cash Flow from Investing Activities” in the consolidated statement of cash flows for the fiscal year ended
December 31, 2021 was reclassified to “Acquisition of intangible fixed assets.”(Consolidated statement of income)“Commission paid” which was included in “Other” in “Non operating expenses” for the fiscal year ended
December 31, 2021 is separately presented from the fiscal year ended December 31, 2022 as it became material.
The consolidated financial statements for the fiscal year ended December 31, 2021 were reclassified to reflect
this change in presentation.
As a result, in the consolidated statement of income for the fiscal year ended December 31, 2021, “Commissionpaid” of ¥76 million which was included in “Other” in “Non operating expenses” is now separately presented.
“Gain on business transfer” was presented separately in “Extraordinary profit” for the fiscal year ended
December 31, 2021, but it is included in “Other” from the fiscal year ended December 31, 2022 as it became
immaterial. The consolidated financial statements for the fiscal year ended December 31, 2021 were reclassified
to reflect this change in presentation.
As a result, in the consolidated statement of income for the fiscal year ended December 31, 2021, “Gain on
business transfer” of ¥149 million which was presented in “Extraordinary profit” was reclassified to “Other.”(Consolidated statement of cash flows)“Commission paid” and “Gain on investments in partnership (- represents gain)” which were included in “Other”
in “Cash flows from operating activities” are presented separately from the fiscal year ended December 31, 2022
as they became material. The consolidated financial statements for the fiscal year ended December 31, 2021
were reclassified to reflect this change in presentation.
As a result, in the consolidated statement of cash flows for the fiscal year ended December 31, 2021, “Other” of¥-11,209 million in “Cash flows from operating activities” was reclassified to “Commission paid ” of ¥76 million,“Gain on investments in partnership (- represents gain)” of ¥-462 million, and “Other” of ¥-10,824 million.
(Additional information)(Recognition of allowance for doubtful debt in a consolidated subsidiary)With regard to an issue of substitute securities which was received as a collateral from a customer in a margin
trading at a consolidated subsidiary engaging in securities business in Thailand, the value declined significantly
because transactions suspected of being unfair occurred in the Thai securities market.
Based on the assessment of the recoverability of loans on margin transactions of ¥7,994 million to the customer
who deposited the securities as a collateral based on the most recent available information, and as a result, werecorded provision of allowance for doubtful debts of ¥3,527 million as sales, general & administrative expenses.

(Segment information, etc.)(Segment information)- 21 -

1. Overview of reportable segments
Method to determine reportable segments
The Company’s reportable segments are components of the Group for which separate financial information isavailable that are reviewed by the Board of Directors regularly to make decisions regarding the allocation ofmanagement resources and evaluate operating performance.
The Group operates a comprehensive line up of Internet related services. The Group’s operation is divided
according to service type into five reportable segments: Internet Infrastructure, Online Advertising & Media,
Internet Finance, Cryptoassets, and Incubation.
The Internet Infrastructure segment provides services that comprise the business base for customers with
online businesses. Services include domain, hosting & cloud, ecommerce solutions, Security, payment andprovider. The Online Advertising & Media segment provides marketing solutions for customers with online
businesses, and includes online advertising, Internet media and Internet research sub-segments. The Internet
Finance segment operates online securities transaction service, foreign exchange margin transaction service andcryptoassets trading service. The Cryptoassets segment engages in cryptoassets exchange, mining and paymentbusinesses. The Incubation segment invests primarily in unlisted Internet related businesses.
2. Calculation of net sales, profit or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those introduced to prepare theconsolidated financial statements. Reportable segment profit is based on operating profit. Inter-segment sales
and transfers are based on the same transaction conditions as those applied to external customers. The
Company does not allocate assets and liabilities to reportable segments.
As described in “Changes in accounting policies,” following the application of the Accounting Standard for
Revenue Recognition, etc. on January 1, 2022, the Group changed the accounting treatment for revenue
recognition and also the method to measure segment profit or loss accordingly.
As a result of this change, compared to the previous method, for the fiscal year ended December 31, 2022, in
the Internet Infrastructure segment, net sales decreased by ¥8,193 million and segment profit increased by ¥181
million; in the Online Advertising & Media segment, net sales decreased by ¥26,807 million and segment profit
increased by ¥84 million; and in the Internet Finance segment, net sales decreased by ¥23 million and there was
no impact on segment profit. There was no impact on the Cryptoassets and Incubation segments. Also,“Adjustment” for internal transactions or transfer decreased by ¥4,250 million and there was no impact on theadjustment for segment profit.
Also, as described in “3. Consolidated Financial Statements and Major Notes, (5) Notes to consolidated
financial statements (Changes in presentation method),” real estate leasing revenue and costs are recorded in“Net sales” and “Cost of sales” from the fiscal year ended December 31, 2022.
Segment information for the fiscal year ended December 31, 2021 is prepared under the new presentation
method and presented as Previous Fiscal Year in “3 Net Sales, Profit or Loss, Assets, Liabilities and Other Items
by Reportable Segment.”- 22 -

3. Net Sales, Profit or Loss, Assets, Liabilities and Other Items by Reportable Segment
Previous Fiscal Year (01.01.2021 – 12.31.2021)(Unit: ¥millions)
Reportable segment
Other
（*1）

Adjustment
（*2）

Total
（*3）

OnlineInternet
Advertising
Infrastructure& MediaInternet
Finance

137,564

46,47733,89920,6341,570

240,1461,465－

241,612

1,197

5,594

－

－

－

6,792

292

-7,084－

Total

138,762

52,07133,89920,634

1,570

246,939

1,758-7,084

241,612Segment profit/loss(-represents loss)

19,232

1,186

11,715

9,093

785

42,014-554-295

41,164

7,057

240

1,302

136

2

8,739

77

－

8,817

Cryptoassets Incubation

Total

Net Sales
Sales to unaffiliatedcustomers
Inter-segment sales
and transfers

Other items
Depreciation(notes) 1. “Other” represents Mobile entertainment and other businesses not included in reportable segments.
2. Adjustment for Segment profit/loss (¥-295 million) is an elimination of inter-segment transactions.
3.Segment profit/loss is adjusted to operating profit presented on the consolidated statement of income.
Current Fiscal Year (01.01.2022 – 12.31.2022)(Unit: ¥millions)
Reportable segment
Other
（*1）

Adjustment
（*2）

Total
（*3）

OnlineInternet
Advertising
Infrastructure& MediaInternet
Finance148,686

31,64242,552

6,212

13,393

242,486

3,209－

245,696

1,357

2,419

－

－

－

3,777

353

-4,130－

Total

150,043

34,061

42,552

6,212

13,393

246,2633,562-4,130245,696

Segment profit/loss(-represents loss)

21,986

2,188

9,292

-342

10,09543,220-239

765

43,746

7,908

319

2,606

79

2

10,917421－

11,339Cryptoassets Incubation

Total

Net Sales
Sales to unaffiliatedcustomers
Inter-segment sales
and transfers

Other items
Depreciation(notes) 1. “Other” represents Real estate leasing and other businesses not included in reportable segments.
2. Adjustment for Segment profit/loss (¥765 million) is an elimination of inter-segment transactions.
3.Segment profit/loss is adjusted to operating profit presented on the consolidated statement of income.

- 23 -

(Related Information)
Previous Fiscal Year (01.01.2021 – 12.31.2021)
1. Information by product and service
This section is omitted as the relevant information is disclosed in the Segment information section.
2. Information by geographic region(1) Net Sales
This section is omitted as sales to external customers in Japan account for over 90% of net sales stated on the
consolidated statement of income.
(2) Tangible fixed assets
This section is omitted as the balance of tangible fixed assets located in Japan accounts for over 90% of
tangible fixed assets stated on the consolidated balance sheet.
3. Information by major customer
This section is omitted as no external customer accounts for more than 10% of net sales stated on the
consolidated statement of income.
Current Fiscal Year (01.01.2022 – 12.31.2022)
1. Information by product and service
This section is omitted as the relevant information is disclosed in the Segment information section.
2. Information by geographic region(1) Net Sales
This section is omitted as sales to external customers in Japan account for over 90% of net sales stated on the
consolidated statement of income.
(2) Tangible fixed assets
This section is omitted as the balance of tangible fixed assets located in Japan accounts for over 90% of
tangible fixed assets stated on the consolidated balance sheet.
3. Information by major customer
This section is omitted as no external customer accounts for more than 10% of net sales stated on the
consolidated statement of income.

- 24 -

(Information relating to impairment loss on fixed assets by reportable segment)
Previous Fiscal Year (01.01.2021 – 12.31.2021)(Unit: ¥millions)
Reportable segment
Internet
Infrastructure

OnlineAdvertising& MediaInternet
Finance

Cryptoassets

Incubation

Impairment
473
43
144
－
loss
(Note) “Other” relates to Mobile entertainment business, etc.

Total

Other
(Note)

661－

64

Corporate/elimination

－

Total

725

Current Fiscal Year (01.01.2022 – 12.31.2022)(Unit: ¥millions)
Reportable segment
Internet
Infrastructure

OnlineAdvertising& MediaInternet
Finance

Cryptoassets

Impairment
2,715
74
－
loss
(Note) “Other” relates to Real estate Tech business, etc.

Incubation

－

－

Total

Other
(Note)

2,790

500

Corporate/elimination

－

Total

3,290

(Information regarding goodwill amortization and unamortized balance by reportable segment)
Previous Fiscal Year (01.01.2021 – 12.31.2021)(Unit: ¥millions)
Reportable segment

Amortization
during theyear
Balance at
end of year

Other
(Note)

Corporate/elimination

Total

Internet
Infrastructure

OnlineAdvertising& Media

455

12

231

－

－

698

1

－

699

3,327

54

10,868－－14,2501－

14,251

Internet
Finance

Cryptoassets Incubation

Total(Note) “Other” relates to Mobile entertainment business, etc.
Current Fiscal Year (01.01.2022 – 12.31.2022)(Unit: ¥millions)
Reportable segment

Amortization
during theyear
Balance at
end of year

Other
(Note)

Corporate/elimination

Total

Internet
Infrastructure

OnlineAdvertising& Media

1,387

12

925

－

－

2,325

1

－

2,327

7,711

53

9,943

－

－

17,708－－17,708Internet
Finance

Cryptoassets Incubation

Total(Note) “Other” relates to Mobile entertainment business, etc.
(Information regarding profit arising from negative goodwill by reportable segment)
There was no significant profit arising from negative goodwill.

- 25 -

(Per share information)(Unit: yen)
Item

Previous Consolidated Fiscal Year(01.01.2021 – 12.31.2021)

Current Consolidated Fiscal Year(01.01.2022 – 12.31.2022)

Net assets per share

670.99676.28Net profit per share
Net profit per share (diluted)

159.69158.48123.21121.58(Notes) Calculation of net profit per share and net profit per share (diluted) is based on the following:
Item

Previous Consolidated Fiscal Year(01.01.2021 – 12.31.2021)

Net profit per share
Profit attributable to owners of theparent (¥millions)
Amount not attributable to commonshareholders (¥millions)
Net profit attributable to owners of
the parent related to common stock(¥millions)Average number of common shares
outstanding during the period(shares)
Average number of treasury stockduring the period (shares)
Average number of shares during
the period (shares)

Current Consolidated Fiscal Year(01.01.2022 – 12.31.2022)

17,527

13,209－－17,527

13,209112,100,160

110,929,104-2,338,232-3,722,616

109,761,928

107,206,488

Net profit per share (diluted)
Adjustment to net profit attributable-132
to owners of the parent (¥millions)(including adjustment for dilutive
shares in consolidated subsidiaries)(-132)(¥millions)
Increase in no. of common shares－(shares)
1. Consolidated subsidiaries
Dilutive shares not included in thei. GMO Financial Holdings, Inc.
calculation of net profit per share
Equity Warrants 2nd Round(diluted) because of their anti-dilutive
Common stock: 2,285,000 shareseffect.
ii. GMO TECH, Inc.
Equity Warrants 1st Round
Common stock: 7,530 sharesiii. GMO Epsilon, Inc.
2010 Stock Options
Common stock: 67 shares
iv. GMO CONNECT, Inc.
Equity Warrants 1st Round
Common stock: 40 shares- 26 --174(-174)－
1. Consolidated subsidiaries
i. GMO AD Partners, Inc.
Stock Options 6th Round
Common stock: 252,000 shares
ii. GMO Financial Holdings, Inc.
Equity Warrants 2nd Round
Common stock: 2,165,000 sharesiii. GMO TECH, Inc.
Equity Warrants 1st Round
Common stock: 7,530 shares
iv. GMO Media, Inc.
Equity Warrants 2nd Round
Common stock: 66,800 sharesv. GMO CONNECT, Inc.
Equity Warrants 1st Round
Common stock: 40 shares

(Significant subsequent events)(Acquisition of treasury stock)
At the Board of Directors meeting held on February 13, 2023, it was resolved to acquire treasury stock inaccordance with the Company’s Articles of Incorporation pursuant to the provisions of Article 459, Paragraph 1of the Companies Act of Japan. Details are as follows:(1) Reason for acquisition
To improve shareholder returns and capital efficiency(2) Details of the acquisition(i) Class of shares to be acquired: Common stock(ii) Total number of shares to be acquired: 700,000 shares (maximum)(iii) Total cost of share acquisition: JPY 1,510 million (maximum)(iv) Acquisition period: From February 14, 2023, to February 9, 2024(v) Acquisition method: Market purchase at the Tokyo Stock Exchange(Retirement of treasury stock)
At the Board of Directors meeting held on February 13, 2023, it was resolved to retire treasury stock inaccordance with the Company’s Articles of Incorporation pursuant to the provisions of Article 178 of theCompanies Act of Japan. Details are as follows:(i) Reason for retirement: To improve shareholder returns and capital efficiency(ii) Class of shares to be retired: Common stock of GMO Internet Group, Inc.
(iii) Total number of shares to be retired: 591,064 shares (0.53% of shares prior to retirement)(iv) Retirement date: March 13, 2023
(v) Total number of shares after retirement: 110,113,337 shares- 27 -