Q3 FYE 12/23 Results Presentation - Q&AThe following is a summary of questions received from participants at the earnings presentation held on
November 14, 2023, and answered by GMO Internet Group CFO Yasuda, Vice President Ito, Group
Executive Officer Inagaki, President and COO of GMO Financial Holdings Ishimura, and GMO Ad Partners
Representative Director Hashiguchi. Some of the answers have been supplemented by the IR department.
●Consolidated Financial Results【Q1】
There was talk about a negative impact of approximately 20 billion yen due to special
factors in Q2. How about Q3? Also, could you provide the future outlook?
【A1】
In Q3, progress was made in the recovery of non-performing loans, resulting in a(Yasuda)
return gain of approximately 600 million yen combined from the FREENANCE businessand the securities business in Thailand.
Regarding the FREENANCE business, as a result of implementing a restructuring of thebusiness strategy, it is anticipated that no additional provisions will be recorded.
As for the securities business in Thailand, efforts are underway to advance the recovery
through regular repayments from customers and the sale of collateral. Additionally, inorder to minimize risks, measures such as the compression of outstanding credit
balances are being implemented, especially in light of recent events.
【Q2】
【A2】
(Yasuda)Could you provide the total evaluation of the consolidated results of this Quarter?
Despite some challenges in the advertising and media business, excluding specialfactors, the consolidated performance is generally progressing smoothly【Q3】

We would like to hear your current thoughts on achieving 15 consecutive years ofrevenue and profit growth.
Given the substantial profit of over 10 billion yen recorded in the incubation businesslast year, we are currently working towards achieving 15 consecutive years of increased
profit in a situation where the bar is not set low.
While there was a return gain from the reversal of bad debt allowance in Q3, we willcontinue to focus on accumulating solid reccuring profits and improving theprofitability of our financial business to achieve further growth and increased profit.

【A3】(Yasuda)●Internet Infrastructure【Q4】
What are the PL impacts of IERAE?
【A4】(Inagaki)In the Q3, IERAE reported sales of approx.700 million yen and loss of around 100 million
yen. Additionally, in the consolidated figures, there was an additional depreciation of
200 million yen for goodwill.
However, there is no change in the initial outlook for archieving profitability on astandalone basis for the fiscal year.

【Q5】

BASE, which is considered as the competitor in the Ecommerce Solutions business, hasannounced a plan change, how do you deal with it?
With BASE enhancing both functionality and pricing, we believe that there may besome merchants withdraw. On the other hand, our group adopts a multi-brand

【A5】
(Ito)

strategy with Makeshop and ColorMe shops, and we believe we have a competitive
advantage in terms of functionality and plan variations.
Ultimately, we consider functionality and cost-effectiveness to be crucial factors, andwe will respond by steadily enhancing functionality.
●Online Advertising & Media【Q6】
You can see a deceleration in performance in the Advertising and Media business.
Could you please provide the background and your outlook for the Q4 and beyond?
【A6】
This fiscal year, our in-house AD network advertising has been showing a soft trend in(Hashiguchi)
anticipation of cookie regulations. We have been compensating for this throughAdvertising and Media segment. However, with the recent changes in advertisingdemand in the latter half of the year, the negative impact of advertising agency
services has temporarily increased.
While there is no significant disruption to our internal structure, we have not yet
observed a substantial bottoming out in the Q4.
We aim for a revival through increased deals with new customers acquired in the latterhalf and group-wide restructuring●Internet Finance【Q7】
Since Q4 last year, you have continued to emphasize profitability in your operations.
What is your outlook for Q4 and beyond, including your approach to campaign
measures?
【A7】
As you noted, since Q4 last year, we have implemented measures to stabilize(Ishimura)profitability in our FX and CFD operations with positive outcomes. Considering themarket environment and potential events that could increase volatility, such as interest
rate trends, we anticipate the risk of a downturn in performance to be low.
Regarding campaigns, given the current dynamism in the FX market, we are looking
to move forward with initiatives aimed at acquiring new customers and re-engaging
inactive ones, depending on our financial performance.
●Cryptoassets【Q8】

The deficit has been gradually increasing every quarter since the beginning of thisfiscal year, and we would like an outlook for the period after the fourth quarter.

【A8】(Ishimura)

As for the Cryptoassets exchange business, the market environment has been
improving in October and November. We have established a system to ensure
earnings as transaction volume increases. Therefore, we encourage you to review themonthly disclosure of transaction volumes【Q9】

Mining sales declined in QoQ, what is the situation in HR? What is the outlook for thefuture?
Due to operational issues at the local mining center, the utilization rate has beensluggish, and the hash rate has declined to around 100 PH/s. However, fixed costs
keep low, and with cost containment efforts, the deficit remains at a level similar tothe Q2. Although a low utilization situation is expected to continue in the future, we
anticipate that the impact on performance will be minor.

【A9】
(Ito)

●Other
【Q10】

【A10】
(Yasuda)You increased the ownership shares of GMO Aozora Net Bank of Equity method.
Could you provide insights into the impact on consolidated performance and yourapproach toward achieving profitability?
We increased in equity participation resulted from the additional acquisition of Classshares. With additional investments from our group company GMO-FH, approximately
41% will be incorporated as 'equity method affiliate investment gains and losses' at
the ordinary income stage starting from Q3.
Aiming for a shift to profitability in March FY2025, we are actively supporting thesteady execution of the new mid-term management plan, which involves
fundamentally strengthening our core business to enhance overall profitability.
Currently, we have dispatched executives from GMO-IG and are focusing onstrengthening web marketing initiatives.

【Q11】

【A11】
(Yasuda)Your company is advancing the initiatives in AI-related activities, I would like to hear
your current thoughts on the performance contribution and monetization timing of
the AI-related business.
We are so much passionated about engaging in initiatives related to AI across in thewhole company. However, to be honest, there is currently limited visibility into
specifics such as the timing of monetization.