Fiscal Year 2024 First Quarter Consolidated Financial Results (Japanese GAAP)May 10, 2024
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 Quarterly Report Release: May 14, 2024 Start Date of Dividend Payout: June 17, 2024
Supplementary documents available pertaining to quarterly financial results: Yes
Quarterly financial results briefing: Yes (live stream only and Q&A session for institutional investors)(all amounts rounded down to the nearest million yen)
1. First Quarter Financial Results in the Year Ending December 31, 2024 (01.01.2024 - 03.31.2024)(1) Consolidated Operating Results(percentages shown represent year-on-year % change)
Profit Attributable to
Net Sales
Operating Profit
Ordinary Profit
Owners of the
ParentThree months ended¥ millions%¥ millions%¥ millions%¥ millions%

March 31, 2024
68,861
5.0
14,43631.4
15,503
29.9
5,519
40.4
March 31, 2023
65,59317.0
10,990-1.2
11,933-1.4
3,931 -38.9(Note) Comprehensive Income: March 31, 2024: 12,385 million (72.2%), March 31, 2023: 7,193 million (-36.1%)
Net Profit per
ShareThree months ended

March 31, 2024
March 31, 2023

Net Profit per Share(Diluted)

¥

¥

51.99
36.83

51.59
36.52

(2) Consolidated Financial Condition
Total Assets
As ofShareholders’ Equity
Ratio

Net Assets¥ millions¥ millions%

March 31, 2024
1,937,332
183,099
4.5
December 31, 2023
1,757,636
172,839
4.7(Reference) Shareholders’ Equity: March 31, 2024: ¥86,688 million; December 31, 2023:¥82,541 million
2. Dividends
Annual Dividends
End of Q1

Year Ended 12/2023
Year Ending 12/2024
Year Ending 12/2024 (forecast)End of Q2

End of Q3

End of Term

Total

¥

¥

¥

¥

12.20
17.20

7.50

10.20

14.20

44.10

－

－

－

－

¥

3. Consolidated Results Forecast for the Year Ending December 31, 2024 (01.01.2024 – 12.31.2024)

As the Group's business “Internet Finance business,” "Cryptoassets business" and “Incubation
business” are affected by economic conditions, financial markets, cryptoassets and other market
conditions, it is difficult to forecast business performance, and therefore we do not disclose
consolidated business results and dividend forecast. GMO Financial Holdings Co., Ltd., oursubsidiary, discloses sales indicators, such as foreign exchange transaction volume, stock
brokerage trading value, CFD trading value, cryptoasset trading value and the number of customer
accounts, and operating revenue on a monthly basis.

*Notes(1) Changes to significant subsidiaries in the current term: No(2) Special accounting treatments used in preparation of the quarterly consolidated financial statements:
None(3) Changes in accounting policy, changes in accounting estimates, restatements
1. Changes resulting from revisions to accounting standard, etc.: None
2. Changes other than those specified above: None
3. Changes in accounting estimates: None
4. Restatements: None
(4) Number of Outstanding Shares (Common Shares)(Unit: shares)

1. Outstanding shares at period end (inc. treasury)

Q1 FYE 12/2024

109,176,555

FYE 12/2023

110,113,337

2. Treasury shares at period end

Q1 FYE 12/2024

3,015,085

FYE 12/2023

3,951,867

3. Average number of shares during the period

Q1 FYE 12/2024

106,161,470

Q1 FYE 12/2023

106,724,838*Quarterly financial results are not subject to quarterly review by independent auditors.
*Note regarding the appropriate use of result forecasts and other items
Although the Company aims to pay dividends quarterly with a payout ratio of 33% to net income
attributable to owners of the parent, because it is difficult to forecast business performance, the amountof dividend forecast is yet to be determined at this time. We will promptly disclose dividend forecast
when it becomes available.
On May 10, 2024, 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. Qualitative Information Related to Financial Results. ............................................................................... 2(1) Operating results ................................................................................................................................. 2(2) Financial condition ............................................................................................................................... 8(3) Consolidated results forecast and other forward-looking information ................................................. 8
2. Quarterly Consolidated Financial Statements and Major Notes ............................................................... 9(1) Quarterly consolidated balance sheet ................................................................................................. 9(2) Quarterly consolidated statements of income and comprehensive income ...................................... 11(3) Notes regarding the quarterly consolidated financial statements ...................................................... 13
Notes regarding the going concern assumption ................................................................................ 13
Notes regarding changes impacting shareholders’ equity ................................................................. 13
Segment information, etc. .................................................................................................................. 14
Significant subsequent event ............................................................................................................. 15―1―

1. Qualitative Information Related to Financial Results(1) Operating results◆

Overview of the Financial Results for the Three Months Ended March 31, 2024
(Unit: ¥millions)

Previous Q1

Current Q1

Change% Change

Net Sales

65,59368,861

3,267

5.0%

Operating Profit

10,99014,436

3,445

31.4%

Ordinary Profit

11,933

15,503

3,569

29.9%

Profit Attributable to Owners of the Parent

3,931

5,519

1,588

40.4%

Under the corporate slogan “Internet for Everyone” GMO Internet Group has consistently focusedresources on 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 thevolume of transactions conducted over the Internet have increased exponentially, which has opened
new business opportunities for the Group one after another, and the Internet infrastructure businesswith the recurring business model has been leading revenue growth. Following the recent spread of
COVID-19, the progress of Digital Transformation (DX) and the spread of online consumption havebeen becoming an irreversible trend, contributing to the increasing need for services provided by theGroup and the further expansion of business opportunities for the Group.
Amidst such a business environment, (1) the Internet Infrastructure segment, a collective of No.1
services, showed steady growth mainly in Payment due to the widespread adoption and active use of
cashless payment terminals, along with the expansion of customer base mainly in Domain. (2) The
Online Advertising & Media segment reported profit increase due to sales expansion of in-houseproducts and improvement in efficiency in the sales structure as well as strong growth in the numberof visitors through in-house products and our own media in the internet media business despitebudget reduction and a decrease in the number of customers in certain industries in the online
advertising business. (3) In the Internet Finance segment, OTC FX reported sluggish sales due to a
decline in market volatility attributable to the yen’s steady fall while CFD reported strong sales due tofavorable movements in commodity index as well as stock price index. Although there was no
additional recognition of allowance for doubtful debts in the securities business in Thailand during thethree months ended March 31, 2024, profit decreased due to a decline in profitability in OTC FX. (4)The Cryptoassets segment reported profit for the three months ended March 31, 2024 as thecryptoasset market is back on a recovery track, which led to strong growth in the transaction volume.
As a result, for the three months ended March 31, 2024, the Group recorded net sales of ¥68,861
million (up 5.0% year-on-year), operating profit of ¥14,436 million (up 31.4% year-on-year), ordinary
profit of ¥15,503 million (up 29.9% year-on-year) and net profit attributable to owners of the parent of¥5,519 million (up 40.4% year-on-year).

―2―Net Sales and Operating Profit by Segment for the Three Months Ended March 31, 2024
(Unit: ¥millions)

Previous Q1

Current Q1

42,161
6,994

45,041
9,215

2,879
2,221

6.8%
31.8%

8,904
668

8,959
746

55
78

0.6%
11.8%

12,792
3,762

10,971
3,526-1,821-236-14.2%
-6.3%

1,202
-338

2,315
954

1,113
1,292

92.6%
－

195
108

897
440

702
331

360.1%
305.3%

1,447
-122

1,790
-409

342
-286

23.7%
－

-1,110-80-1,114
-36

-4
44

－
－

65,593
10,99068,861
14,436

3,267
3,445

5.0%
31.4%

Internet Infrastructure
Net Sales
Operating Profit
Online Advertising & MediaNet Sales
Operating Profit
Internet Finance
Net 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

Change% Change1) 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 andsecurity - the five major businesses in this segment – are all developed and offered in-house andeach holds top share in their respective markets in Japan. In addition, the segment includes
consumer Internet provider services. The following is a breakdown of results in each of thebusinesses comprising this segment.
i. Domain
Positioned as a gateway to the Group’s infrastructure segment, the domain business continues togrow its customer base with a low-pricing strategy mainly through the Company and GMO Pepabo.
The number of domain registration and renewals during the three months ended March 31, 2024 was
2.39 million (up 49.7% year-on-year), the total number of domains under management as of March
31, 2024 was 9.47 million (up 31.8% year-on-year). As a result, net sales amounted to ¥2,594 million(up 13.2% 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 Holdings and GMO Pepabo. Due to a sagging demand for certain retail server, thenumber of web hosting contracts as of March 31, 2024 slightly declined to 1,113 thousand (down
0.4% year-on-year), and net sales were ¥5,195 million (up 8.0% year-on-year).
iii. Ecommerce solutions
Ecommerce solutions are offered mainly by GMO Pepabo and GMO MAKESHOP and comprises EC
platforms that provide platforms for online stores, minne, a C2C handmade market, SUZURI, an―3―

original merchandise production/sales service, and O2O support service. In EC platform, the numberof paid stores as of March 31, 2024 decreased 9.4% year-on-year to 51 thousand, but the totaltransaction volume was ¥127.9 billion (up 5.9% year-on-year) due to a steady shift to high-priceplans. For minne, on the other hand, the total transaction volume decreased by 16.2% year-on-yearto ¥3.1 billion due to a continued decline in the circulation volume of low-priced products. As a result,net sales were ¥3,591 million (down 10.1% year-on-year).
iv. Security
This business offers security services to provide secure and safe Internet for everyone, including
cipher 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, andbrand security provided by GMO BRAND SECURITY. While the number of contracts and contract
transmission of e-contract service GMO Sign showed strong growth, net sales decreased by 3.9%
year-on-year to ¥4,474 million due to an absence of contribution of a non-recurring project recorded
a year ago.
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 services,
online/recurring payments in the Ecommerce market showed strong growth, and the number ofstores using a next-generation payment platform “stera” terminal showed favorable growth with the
expansion of cashless payment market in the face-to-face transactions. As a result, the number oftransactions and the transaction volume showed favorable growth, and net sales increased to¥18,061 million (up 17.4% year-on-year).
vi. Provider
In this sub-segment, the Company offers Internet provider services for consumers. While the numberof in-house fixed lines showed stable growth, the number of subscriptions at March 31, 2024
remained almost flat at 2.25 million (down 0.4% year-on-year) due to a change in sales mix, and as aresult, net sales were ¥9,995 million (down 0.2% year-on-year).
Overall, the Internet Infrastructure segment recorded net sales of ¥45,041 million (up 6.8% year-onyear) and operating profit of ¥9,215 million (up 31.8% year-on-year).
2) Online Advertising & MediaThe Online Advertising & Media segment provides marketing solutions for online businesses. The
following is a 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. While affiliate advertising
showed favorable growth, the advertising agency service showed sluggish growth due to decreases
in advertising demand and the number of customers in certain industries. As a result, net sales
amounted to ¥4,351 million (down 6.0% year-on-year).
ii. Internet media
This sub-segment provides advertising space through operation of our own media and services
mainly through GMO Media. Our own media enjoyed continued growth in pageviews, and thenumber of visitors through in-house products showed favorable growth. As a result, net sales
amounted to ¥3,262 million (up 14.2% year-on-year).
Overall, net sales in the Online Advertising & Media segment increased to ¥8,959 million (up 0.6%
year-on-year), and operating profit increased to ¥746 million (up 11.8% year-on-year).

―4―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 March 31, 2024,
the number of OTC FX accounts increased to 1.50 million (up 4.5% year-on-year) and the number of
securities accounts increased to 527 thousand (up 3.1% year-on-year). OTC FX reported sluggish
sales due to a decline in market volatility attributable to the yen’s steady fall while CFD reported sales
increase due to active movements in commodity and stock price indexes. Although there was norecognition of allowance for doubtful debts in the securities business in Thailand during the threemonths ended March 31, 2024, profit decreased due to sluggish performance in OTC FX.
Overall, the Internet Finance segment recorded net sales of ¥10,971 million (down 14.2% year-onyear) and operating profit of ¥3,526 million (down 6.3% year-on-year).
4) Cryptoassets
The Cryptoassets segment operates businesses pertaining to “mining,” “exchange,” and “payment” ofcryptoassets. Performance of each business is as follows.
i. Cryptoassets mining
The Cryptoassets mining business runs mining centers. As mining centers are currently not in
operation, net sales were ¥0 million (down 100.0% year-on-year). Downside risks to earnings arelimited as the fixed cost is reduced.
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. The customer base
expanded with the number of customer accounts as of March 31, 2024 increasing to 626 thousand(up 12.1% year-on-year). The trading value showed favorable growth due to improved market
conditions. As a result, net sales increased to ¥2,206 million (up 139.5% year-on-year).
Overall, the Cryptoassets segment reported net sales of ¥2,315 million (up 92.6% year-on-year) andoperating profit of ¥954 million (operating loss of ¥338 million for the three months ended March 31,2023).
5) Incubation
This segment is engaged in investing in domestic and overseas internet related companies aimed at
capital gains, supporting business expansion, and supporting corporate value improvement mainly
through GMO Venture Partners. Net sales were ¥897 million (up 360.1% year-on-year), andoperating profit was ¥440 million (up 305.3% year-on-year) due to sales of investment securities held.

(Reference1)

Changes in Operating Results and Financial Condition by QuarterQ1 2023

Net sales
Operating profit
Ordinary profit
Profit attributableto owners of the parent
Total assets
Shareholders’ equity

Q2 2023

Q3 2023

Q4 2023(Unit: ¥millions)Q1 2024

65,593
10,99011,93364,4509,627
10,60362,501
9,466
9,707

66,097
12,386
13,70368,861
14,436
15,503

3,931

2,412

3,288

4,558

5,519

1,624,445
75,4391,669,248
79,3691,706,559
81,804

1,757,636
82,541

1,937,332
86,688―5―

(Reference2)
Quarterly Results by Segment/Business
I Net Sales by Segment
Internet Infrastructure
Provider (ISP)
DomainHosting & cloud
Ecommerce solutions
Security
Payment
Other
Total
Online Advertising & Media
Online advertisingInternet media
Internet research & other
Total
Internet Finance
Total
Cryptoassets
Cryptoassets exchange
Cryptoassets mining
Cryptoassets payment
Total
Incubation
Total
Sub total
Other
Adjustment
Net Sales(Unit: ¥millions)
Q4 2023
Q1 2024

Q1 2023

Q2 2023

Q3 2023

10,011
2,291
4,810
3,995
4,658
15,386
1,007
42,161

10,191
2,388
5,048
4,046
3,573
16,302996
42,54810,020
2,470
5,158
4,144
3,955
15,876852
42,478

9,998
2,534
5,199
2,088
6,024
17,541924
44,311

9,995
2,594
5,195
3,591
4,474
18,061
1,127
45,041

4,628
2,856
1,418
8,904

4,512
2,792
1,130
8,435

4,108
3,272
1,207
8,587

4,335
3,105
1,297
8,738

4,351
3,262
1,346
8,959

12,792

12,265

10,53911,67910,971

921
278
2
1,202

789
169
0
958

819
88
50
958

1,294
40
100
1,434

2,206
0
109
2,315

195
65,255
1,447-1,11065,593456
64,664973-1,18764,45038
62,602
1,036-1,13862,501

0
66,165
1,077-1,14466,097897
68,185
1,790-1,114
68,861Q1 2023
6,994
668
3,762
-338
108
11,194-122-80
10,990Q2 2023
6,007
358
3,834
-484
3
9,719
-92
0
9,627

Q3 2023
6,129
485
3,605
-532
-112
9,576
-123
14
9,466

Q4 2023
9,596
364
2,553
83
-140
12,457-58-12
12,386

Q1 2024
9,215
746
3,526
954
440
14,882-409-36
14,436

II Operating Profit by Segment
Internet Infrastructure
Online Advertising & MediaInternet Finance
Cryptoassets
Incubation
Sub total
Other
Adjustment
Operating Profit―6―

(Reference3)
Description of Businesses in Each Segment
Business Segment
DomainHosting & cloud

Ecommerce
solutionsInternet
Infrastructure

Security

Payment

OnlineAdvertising &Media

Main Operations
・Domain registry services including “.shop” and “.tokyo”
・Domain registrations services: Onamae.com, MuuMuu Domain, and
VALUE-DOMAIN
・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, Cloud VPS by GMO,
ALTUS by GMO, GMO Cloud Private, Lolipop!, heteml, and 30days
Album・Operation of EC platform to set up net shop offered by Color me shopand MakeShop.
・Operation of C2C handmade marketplace “minne”
・Operation of production/sales service of original merchandise including
SUZURI and canvath・Operation of ecommerce/O2O support services, etc.
・Operation of OMAKASE, reservation management service forrestaurants
・Web design, operational support and system consulting service, 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
research panel including GMO Research Cloud PanelInternet FinanceInternet finance・Operation of online securities trading, FX trading, CFD trading, etc.
・Spot trading and leveraged transactions of cryptoassets, etc.

Cryptoassets

Cryptoassets
exchange
Cryptoassets
miningCryptoassets
payment
Venture capital・Investment in private Internet startups

Incubation

・Operation of mining centers
・Issuance and redemption of stablecoin “GYEN” and “ZUSD”―7―

(2) Financial condition
Assets, Liabilities and Net Assets(Assets)
As of March 31, 2024, total assets increased ¥179,695 million from December 31, 2023 to¥1,937,332 million. Major factors included an increase of ¥9,272 million in cash and deposits, anincrease of ¥98,375 million in cryptoassets under custody, an increase of ¥16,706 million in tangible
fixed assets, an increase of ¥16,586 million in investment securities, and an increase of ¥19,956
million in various assets due to fluctuations in customer assets in the Securities segment (deposits,
margin transaction assets, loan secured by securities, short-term guarantee deposits, and variation
margin paid).
(Liabilities)
As of March 31, 2024, total liabilities increased ¥169,435 million from December 31, 2023 to¥1,754,232 million. Major factors included an increase of ¥39,560 million in debt, an increase of¥4,899 million in bonds, an increase of ¥98,375 million in deposits received for cryptoassets, anincrease of ¥4,895 million in deposits received, and an increase of ¥17,659 million in various
liabilities due to fluctuations in customer assets in the Securities segment (deposits received, margintransaction liability, guarantees received, variation margin received, and loans payable secured by
securities).
(Net Assets)
As of March 31, 2024, total net assets increased ¥10,260 million from December 31, 2023 to¥183,099 million. Major factors included an increase of ¥1,602 million in earned surplus (consistingof an increase from recording profit attributable to owners of the parent totaling ¥5,519 million, adecrease from dividend payments of ¥1,507 million, and a decrease from retirement of treasury
stock of ¥2,410 million), a decrease of ¥2,410 million in treasury stock due to retirement, an increaseof ¥1,452 million in foreign currency translation adjustments, and an increase of ¥6,111 million in
non-controlling interests.
(3) Consolidated results forecast and other forward-looking information
For the fiscal year ending December 31, 2024, the Group plans to increase both net sales andoperating profit, mainly in Internet Infrastructure segment. Meanwhile, there are certain factors thatcannot be reasonably predicted at this point, including: (1) fluctuation of cryptoasset prices andglobal hash rate trends in Cryptoassets business, (2) potential impact of economic situations andmarket conditions in Internet Finance segment, and (3) when and how much capital gains will be
realized in Incubation segment. Accordingly, we do not disclose the consolidated results forecast for
the fiscal year ending December 31, 2024.

―8―

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet
Previous Fiscal Year(As of Dec 31, 2023)(Unit: ¥millions)
1st Quarter
Current Fiscal Year(As of Mar 31, 2024)

AssetsCurrent Assets
Cash and deposits

393,452

402,725

Trade notes, accounts receivable and contract
assets38,13338,412

Operational investment securities

13,26013,599Cryptoassets under custody

156,511

254,887

Securities segment deposits

511,989

518,687

Securities segment margin transaction assets

127,497

137,234

Securities segment loan secured by securities

12,531

15,196

Securities segment short term guarantee deposits

70,71966,897

Securities segment variation margin paid

98,051

102,729

Other

199,725

217,792

Allowance for doubtful debts-7,616-8,234

1,614,257

1,759,929

46,83663,543

Total Current Assets
Fixed Assets
Tangible fixed assets
Intangible fixed assets
Goodwill

15,957

18,146

Software15,367

15,735

Other

12,98012,991

Total intangible fixed assets

44,30546,873

Investment securities

30,68747,273

Deferred tax asset

3,872

3,773

Other

25,10423,356

Investments and other assets

Allowance for doubtful debts-7,427-7,416

Total investments and other assets

52,236

66,986

Total Fixed Assets
Total Assets―9―143,379

177,403

1,757,636

1,937,332

Previous Fiscal Year(As of Dec 31, 2023)(Unit: ¥millions)
1st Quarter
Current Fiscal Year(As of Mar 31, 2024)

Liabilities
Current Liabilities
Trade notes and accounts payable

15,124

14,353

Short term debt

197,322

203,652

Current portion of bonds

10,200

10,226

Amount payable

52,083

46,599Deposits received for cryptoassets

156,511

254,887

Securities segment deposits received

61,55563,083

Securities segment margin transaction liability

31,81647,129Securities segment guarantees received

560,407557,581

Securities segment variation margin received
Securities segment loans payable secured by
securities
Accrued corporate tax, etc.

11,677

18,037

15,69812,983

7,957

7,507

Allowance for bonuses

2,422

2,474

526

569

Allowance for bonuses to directors
Advance payment received

1,264

998

Contract liabilities

23,05323,718Deposits received

130,175

135,071

Other

29,21738,342

1,307,015

1,437,218

Bonds

100,500

105,373

Convertible bonds with equity warrants

20,55020,495Long term debt

144,996

178,225

1,145

785

Total Current Liabilities
Fixed Liabilities

Deferred tax liability
Other
Total Fixed Liabilities

9,647

11,172276,839

316,051942

962

Statutory Reserve
Financial instruments transaction liability reserve
Total Statutory Reserve

942

962

1,584,797

1,754,232

Capital stock

5,000

5,000

Capital surplus

31,866

31,869Earned surplus

47,41649,018Treasury stock-10,166-7,756

Total Shareholders’ Equity

74,115

78,131

3,542

2,177

Total Liabilities
Net Assets
Shareholders’ Equity

Accumulated Other Comprehensive Income
Other securities valuation differences

-78

-35

Foreign currency translation adjustments

4,962

6,415

Total Accumulated Other Comprehensive Income

8,425

8,557

Deferred hedging profit/loss

Equity Warrants
Non-controlling Interests
Total Net Assets
Total Liabilities and Net Assets

―10―

55

57

90,242

96,353

172,839

183,099

1,757,636

1,937,332

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income
1st Quarter(Unit: ¥millions)
1st Quarter
Previous Fiscal Year
(3 months to March 2023)
65,593

1st Quarter
Current Fiscal Year
(3 months to March 2024)
68,861

Cost of Sales

27,18028,404Gross Profit on Sales

38,41240,456

Sales, General & Administrative Expenses

27,421

26,020Operating Profit

10,99014,436

Interest received

307

390

Net Sales

Non Operating Revenue
Dividends received

325

46

Foreign exchange gain

66

818

Gain on investments in partnership

292

567

Other

764

822

1,757

2,645

Interest paid

342

623

Equity method investment losses

73

577

Bond issuance cost

154

24

Commission paid

184

205

Total Non Operating Revenue
Non Operating Expenses

Other

58

147

Total Non Operating Expenses

814

1,579

11,933

15,503Gain on sale of investment securities

44

52

Reversal of financial instruments transaction
liability reserve

1－

Ordinary Profit
Extraordinary Profit

Other

0

2

Total Extraordinary Profit

46

55

Loss on disposal of fixed assets

14

296

Provision of financial instruments transaction
liability reserve－

20

Extraordinary Loss

Other

0

0

Total Extraordinary Loss

14

316

Net Profit before Adjustment for Tax, etc.

11,965

15,241

Corporate, Municipal and Enterprise Taxes

4,437

4,972

21

-178

Total Corporate Taxes, etc.

4,458

4,794

Net Profit

7,507

10,447

Profit attributable to Non-controlling Interests

3,575

4,927

Profit attributable to Owners of the Parent

3,931

5,519

Corporate Tax etc. Adjustment―11―

Quarterly consolidated statement of comprehensive income
1st Quarter(Unit: ¥millions)

Net Profit

1st Quarter
Previous Fiscal Year
(3 months to March 2023)
7,507

1st Quarter
Current Fiscal Year
(3 months to March 2024)
10,447

Other Comprehensive Income
Other securities valuation differences-1,056-1,325

Deferred hedging profit/loss

-228

71

Foreign currency translation adjustments

884

3,234

Share of other comprehensive income of associates accounted
for using equity method

86

-42

Total other comprehensive income

-313

1,938

7,193

12,385Comprehensive income attributable to owners of the parent

3,283

5,651

Comprehensive income attributable to non-controlling interests

3,909

6,734

Comprehensive Income(Breakdown)―12―(3) Notes regarding the quarterly consolidated financial statements(Notes regarding the going concern assumption)
Not applicable.
(Notes regarding changes impacting shareholders’ equity)
Pursuant to the resolution at the Board of Directors meeting held on February 13, 2024, theCompany retired 936,782 shares of treasury stock, which resulted in decreases in earned surplus
and treasury stock of ¥2,410 million, respectively.
As a result, earned surplus and treasury stock as of March 31, 2024 were ¥49,018 million and¥7,756 million, respectively.

―13―

(Segment Information, etc.)【Segment information】
I 1st Quarter of Previous Fiscal Year (01.01.2023-03.31.2023)
1. Information relating to net sales and profit or loss by reportable segment
2.

(Unit: ¥millions)
Reportable Segment
Internet
Finance

Other
(*i)

Adjustment Consolidated(*ii)
P/L (*iii)

Internet
Infrastructure

Online Ad& Media

41,8098,261

12,7871,202

195

64,255

1,337－

65,593

351

642

5

－

－

999

110

-1,110－42,161

8,904

12,792

1,202

195

65,255

1,447-1,11065,593

6,994

668

3,762

-338

108

11,194-122-80

10,990

Cryptoassets Incubation

Total

Net Sales
Sales to unaffiliatedcustomers
Intersegment
transactions ortransfer
Total
Segment Profit/Loss*Notesi. “Other” represents real estate leasing and other businesses not included in reportable segments.
ii. Segment profit/loss adjustment (¥-80 million) is an elimination of intersegment transactions.
iii. Segment profit/loss is based on operating profit in the quarterly consolidated statement of income.

II 1st Quarter of Current Fiscal Year (01.01.2024-03.31.2024)
1. Information relating to net sales and profit or loss by reportable segment(Unit: ¥millions)
Reportable Segment
Internet
Finance

Other
(*i)

Adjustment Consolidated(*ii)
P/L (*iii)

Internet
Infrastructure

Online Ad& Media

44,628

8,442

10,9652,315

897

67,2491,611－

68,861

412

517

6

－

－

935

178

-1,114－45,041

8,959

10,971

2,315

897

68,185

1,790-1,114

68,861

9,215

746

3,526

954

440

14,882-409-36

14,436

Cryptoassets Incubation

Total

Net Sales
Sales to unaffiliatedcustomers
Intersegment
transactions ortransfer
Total
Segment Profit/Loss*Notesi. “Other” represents real estate leasing and other businesses not included in reportable segments.
ii. Segment profit/loss adjustment (¥-36 million) is an elimination of intersegment transactions.
iii. Segment profit/loss is based on operating profit in the quarterly consolidated statement of income.

2. Information on impairment losses on fixed assets or goodwill, etc. by reportable segment(Significant change in goodwill)
The Internet Infrastructure segment acquired shares of Flatt Security Inc. and included thecompany in the scope of consolidation, which resulted in the recognition of goodwill. The resulting
increase in goodwill during the three months ended March 31, 2024 was ¥1,627 million.

―14―

(Significant subsequent event)Not applicable.

―15―