Fiscal Year 2023 Consolidated Financial Results (Japanese GAAP)
February 13, 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 Annual General Shareholders Meeting: March 21, 2024 Start Date of Dividend Payout: March 7, 2024
Date of Annual Report Release: March 22, 2024
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, 2023 (01.01.2023 - 12.31.2023)(1) Consolidated Operating Results(Percentages shown represent year-on-year % change)
Profit Attributable to
Net Sales
Operating Profit
Ordinary Profit
Owners of the Parent
FYE12/2023
FYE12/2022¥ millions%¥ millions%¥ millions%¥ millions%

258,643
245,6965.3
1.7

42,471
43,746-2.9
6.3

45,94746,025-0.2
6.1

14,191
13,2097.4-24.6(Note) Comprehensive Income: FYE 12/2023 ¥ 30,874 million (-27.8%) , FYE 12/2022 ¥ 42,783 million (33.7%)

Net Profit per
Share
FYE12/2023
FYE12/2022

Net Profit per
Share (Diluted)

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

¥

¥

%

%

％

133.33123.21132.20121.58

18.3
18.1

2.8
3.1

16.4
17.8

(Reference) Earnings/Loss on Equity Method Investment: FYE 12/2023 ¥-1,174 million, FYE 12/2022 ¥-414 million(2) Consolidated Financial Condition
Total Assets
FYE12/2023
FYE12/2022

Shareholders’ Equity
Ratio

Net Assets

Shareholders’ Equity
per Share¥ millions¥ millions%¥

1,757,636
1,542,740

172,839
154,6884.7
4.7

777.50676.28(Reference) Shareholders’ Equity: FYE 12/2023 ¥82,541 million, FYE 12/2022 ¥72,176 million(3) Consolidated Cash Flow
Cash Flow fromOperating Activities
FYE12/2023
FYE12/2022

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

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

14,91425,641-16,363-2,82864,97562,442388,917322,229

2. Dividends

End of Q1

FYE12/2022
FYE12/2023
FYE12/2024(forecast)

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

Total
Dividend
Payout

Total

¥

¥

¥

¥

¥

19.60
12.20

28.00
7.50

0.00
10.20

0.00
14.20

47.60
44.10

－

－

－

－

－

PayoutRatio(Consolidated)

Ratio of
Dividends to
Net Assets(Consolidated)¥ millions

%

%

5,085
4,689

38.6
33.1

7.1
6.1

－

3. Consolidated Results Forecast for the Fiscal 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 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: Yes(Transfer of specified subsidiaries resulting in change in scope of consolidation)
Exclusion: 2 (GMO-Z.com Bullion HK Limited, GMO-Z.com Pte. Ltd.)(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) Number of outstanding shares (Common shares)
1. No. of outstanding shares at end of term (including
FYE 12/2023
treasury shares)
2. Number of treasury shares at end of term
FYE 12/2023
3. Average number of shares during term
FYE 12/2023(Unit: shares)

110,113,337 FYE 12/2022

110,704,401

3,951,867 FYE 12/2022

3,979,562

106,435,838 FYE 12/2022

107,206,488(Reference) Summary of Non-Consolidated Financial Results
1. Non-consolidated Results in the Fiscal Year Ended December 31, 2023 (01.01.2023 - 12.31.2023)(1) Non-consolidated Operating Results(Percentages shown represent year-on-year % change)
Net Sales
Operating Profit
Ordinary Profit
Net Profit
FYE12/2023
FYE12/2022¥ millions%¥ millions%¥ millions%¥ millions%

65,161
63,007

3.4
-6.0

947
1,232

-23.2
-71.2

11,851
15,669

-24.4
6.7

7,698
6,001

28.3
-49.3

Net Profit per Share

Net Profit per Share(Diluted)¥

FYE12/2023
FYE12/2022

72.32
55.98

¥

－
－

(2) Non-consolidated Financial Condition
Total Assets
FYE12/2023
FYE12/2022

Net Assets

Shareholders’ Equity
Ratio

Net assets per Share¥ millions¥ millions%¥

261,827
220,777

23,827
20,613

9.1
9.3

224.44193.14(Reference) Shareholders’ Equity: FYE 12/2023 ¥23,827 million, FYE 12/2022 ¥20,613 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 attributableto 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, 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. Overview of Operating Results, etc. .......................................................................................................................... 2(1) Overview of operating results .............................................................................................................................. 2(2) Overview of financial condition ............................................................................................................................ 8(3) Overview of cash flows ........................................................................................................................................ 9(4) Future outlook .....................................................................................................................................................10(5) Basic policy on profit sharing and dividends for the current and next fiscal year ................................................10
2. Policy Regarding Choice of Accounting Standards ..................................................................................................10
3. Consolidated Financial Statements and Major Notes ...............................................................................................11(1) Consolidated balance sheet ................................................................................................................................11(2) Consolidated statements of income and comprehensive income .......................................................................13(3) Consolidated statement of changes in shareholders’ equity, etc. .......................................................................15(4) Consolidated statement of cash flows ................................................................................................................17(5) Notes to consolidated financial statements .........................................................................................................19(Notes regarding going concern assumption).................................................................................................19(Changes in accounting policies)....................................................................................................................19(Changes in presentation method) .................................................................................................................19(Segment information). ...................................................................................................................................20(Per share information)...................................................................................................................................24(Significant subsequent events) .....................................................................................................................25-1-

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

Overview of the financial results for the fiscal year ended December 31, 2023
Under the motto “Internet for Everyone,” GMO Internet Group has consistently focused resources on theservice to provide internet and service infrastructure since its foundation in 1995. With the increased usage of theInternet, the volume of information available on the Internet and the volume of transactions conducted over theInternet have increased exponentially, which has opened new business opportunities for the Group one after
another and the Internet infrastructure business with the recurring business model has been leading revenue
growth. Following the spread of COVID-19, the progress of Digital Transformation (DX) and the spread of 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) in the Internet Infrastructure segment, a collective of No.1 services,
showed steady growth mainly in Payment and Security, with the expansion of customer base mainly in the faceto-face payments. (2) In the Online Advertising & Media segment, while our own media maintained highpageviews and the number of visitors through in-house products increased, the advertising agency service
experienced sluggish sales mainly due to a decline in advertising demand in certain industries. (3) In the Internet
Finance segment, OTC FX showed strong growth thanks to increased volatility in the exchange rates and thepositive effects of profitability improvement measures. CFD showed solid growth mainly due to volatile market
conditions affected by the global situations and the marketing activity for additional tradable assets. On the other
hand, provision of allowance for doubtful debts of approximately ¥3.1 billion was recorded in the securities
business in Thailand. (4) The Cryptoassets segment showed sluggish growth as the trading value significantly
decreased due to sluggish market.
As a result, for the fiscal year ended December 31, 2023, the Group recorded net sales of ¥258,643 million (up5.3% year-on-year), operating profit of ¥42,471 million (down 2.9% year-on-year) and ordinary profit of ¥45,947
million (down 0.2% year-on-year), and net profit attributable to owners of the parent of ¥14,191 million (up 7.4%
year-on-year).
(Unit: ¥millions)
Previous FY

Current FY

Net sales

245,696258,643

12,946

5.3%

Operating profit

43,74642,471-1,274-2.9%

Ordinary profit

46,02545,947-77-0.2%

Profit attributable to owners of the parent

13,20914,191

982

7.4%

-2-

Change% Change

Net sales and operating profit by segment for the consolidated fiscal year ended December 31, 2023
(Unit: ¥millions)
Previous FY

Current FY

Change% Change

Internet Infrastructure
Net sales

150,043

171,500

21,456

14.3%

Operating profit

21,98628,728

6,741

30.7%

34,061
2,188

34,665
1,875

603

1.8%

-312

-14.3%

42,552
9,292

47,277
13,756

4,724
4,463

11.1%
48.0%

6,212

4,554

-1,657-26.7%-342-1,271-929－

13,393
10,095690-140-12,702-10,235-94.8%
－

3,562
-239

4,535

973

27.3%

-397

-158

－

-4,130-4,580

-450

－

765

-78

-844

－

245,696
43,746258,643
42,471

12,946

5.3%-1,274-2.9%

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.
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, 2023 was 7.19 million (up 31.6% year-on-year) and total
number of domains under management as of December 31, 2023 was 8.66 million (up 21.6% year-on-year)
mainly thanks to contribution of enhanced promotion and overseas domain sales. As a result, net sales were
¥9,685 million (up 7.9% 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. Thanks to continued strong growth in sales of retail server, the number of web
hosting contracts as of December 31, 2023 was 1.11 million (up 1.0% year-on-year) and net sales were ¥20,217
million (up 9.6% year-on-year).

-3-

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, while the number of paid stores as ofDecember 31, 2023 decreased 10.4% year-on-year to 51 thousand, total transaction volume decreased only
slightly by 0.6% year-on-year to ¥487.6 billion thanks to a shift to high-price plans by MakeShop which offers
high-price service. As a result, net sales were ¥14,274 million (down 6.1% 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, and brand security provided by
GMO BRAND SECURITY Inc. The number of contracts and contract transmission of e-contract service GMO
Sign showed steady growth, and a large project capturing market demands in brand security made contribution
to net sales. As a result, this sub-segment reported net sales of ¥18,212 million (up 42.9% year-on-year).
v. Payment
Payment services are mainly operated by GMO Payment Gateway and offer comprehensive payment-related
services and finance-related services. In the payment-related services, online/recurring payments in the
Ecommerce market showed strong growth, and the number of stores using a next-generation payment platform“stera” terminal also significantly increased with the expansion of cashless payment market in the face-to-facetransactions, resulting in a favorable growth in the number of transactions and the transaction volume. As aresult, net sales were ¥65,107 million (up 24.3% year-on-year).
vi. Provider
In this sub-segment, the Company offers Internet provider services for consumers. Net sales showed solid
growth mainly in the fixed line service due to an increase in the ratio of in-house line service despite a change inproduct sales mix. As a result, the number of subscriptions at December 31, 2023 was 2.26 million (up 0.5%
year-on-year), and net sales were ¥40,221 million (up 3.2% year-on-year).
Overall, the Internet Infrastructure segment recorded net sales of ¥171,500 million (up 14.3% year-on-year)
and operating profit of ¥28,728 million (up 30.7% year-on-year).
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. The advertising agency service showed sluggish
growth due to a decrease in advertising demand in certain industries and the slow response to such decrease.
As a result, net sales amounted to ¥17,584 million (down 5.5% 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. Our own media enjoyed continued growth in pageviews, and the number ofvisitors through in-house products increased. As a result, net sales were ¥12,026 million (up 16.5% year-onyear).
Overall, the Online Advertising & Media segment recorded net sales of ¥34,665 million (up 1.8% year-on-year)
and operating profit of ¥1,875 million (down 14.3% year-on-year).
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, 2023, the number of OTC
FX accounts increased to 1,491 thousand (up 4.5% year-on-year), the number of securities accounts increased to
523 thousand (up 3.6% year-on-year), and the number of CFD accounts increased to 200 thousand (up 8.2% yearon-year). OTC FX showed strong growth due to highly volatile market conditions and the positive effects of-4-

profitability improvement measures. CFD trading maintained a high level of trading value and revenue mainly due
to increased volatility in commodity prices affected by the global situations. Meanwhile, the securities business inThailand recorded provision of allowance for doubtful debts of approximately ¥3.1 billion, weighing on profit.
Overall, the Internet Finance segment recorded net sales of ¥47,277 million (up 11.1% year-on-year) andoperating profit of ¥13,756 million (up 48.0% 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 remained sluggish due to external factors
including continued increase in hash rates. As a result, net sales amounted to ¥577 million (down 67.3% yearon-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. The customer base has steadily
expanded with the number of customer accounts as of December 31, 2023 increasing to 601 thousand (up 9.9%
year-on-year). Trading value remained sluggish due to market conditions. As a result, net sales were ¥3,824
million (down 7.9% year-on-year).
Overall, the Cryptoassets segment recorded net sales of ¥4,554 million (down 26.7% year-on-year) andoperating loss of ¥1,271 million (operating loss of ¥342 million for the fiscal year ended December 31, 2022).
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 ¥690 million (down 94.8% year-on-year), and operating loss was ¥140 million(operating profit of ¥10,095 million for the fiscal year ended December 31, 2022) due to sale of some investment
securities.
(Reference 1) Changes in Operating Results and Financial Condition by Quarter(Unit: ¥millions)
Q4 2022

Q1 2023

Net sales

62,561

65,593Operating profit

5,736

Ordinary profit

3,586

Profit attributable toowners of the parent(- represents loss)
Total assets
Shareholders’ equity

Q2 2023

Q3 2023

Q4 2023

64,45062,50166,097

10,990

9,627

9,466

12,386

11,933

10,603

9,707

13,703

-644

3,931

2,412

3,288

4,558

1,542,740

1,624,445

1,669,248

1,706,559

1,757,636

72,17675,43979,36981,80482,541-5-

(Reference 2) Quarterly Results by Segment/Business(Unit: ¥millions)
I Net Sales by Segment
Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Provider (ISP)

9,944

10,011

10,191

10,0209,998

Domain

2,130

2,291

2,388

2,470

2,534

Hosting & cloud

4,703

4,810

5,048

5,158

5,199

Ecommerce solutions
Security

4,173

3,995

4,046

4,144

2,088

3,838

4,658

3,573

3,955

6,024

Payment

14,57915,386

16,302

15,876

17,541

Other

1,174

1,007

996

852

924

Total

40,544

42,16142,54842,47844,311

Online advertising

4,755

4,628

4,512

4,108

4,335

Internet media

2,613

2,856

2,792

3,272

3,105

Internet research and other

1,401

1,418

1,130

1,207

1,297

Total

8,770

8,904

8,435

8,587

8,738

11,38912,792

12,265

10,53911,679

1,654

921

789

819

1,294

270

278

169

88

40

Internet Infrastructure

Online Advertising & MediaInternet Finance
Total
Cryptoassets
Cryptoassets exchange
Cryptoassets mining
Cryptoassets payment
Total

154

2

0

50

100

2,079

1,202

958

958

1,434

0

195

456

38

0

62,78365,25564,66462,602

66,165

958

1,447

973

1,036

1,077

Incubation
Total
Sub total
Other
Adjustment-1,181-1,110-1,187-1,138-1,144

Net Sales

62,561

65,59364,45062,50166,097Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

5,363

6,994

6,007

6,129

9,596

II Operating Profit by Segment
Internet Infrastructure
Online Advertising & Media

-24

668

358

485

364

Internet Finance

-17

3,762

3,834

3,605

2,553

Cryptoassets

717

-338

-484

-532

83

Incubation

-223

108

3

-112

-140

Sub total

5,816

11,194

9,719

9,576

12,457

-60

-122

-92

-123

-58

Other
Adjustment
Operating Profit

-20

-80

0

14

-12

5,736

10,990

9,627

9,466

12,386-6-

(Reference 3) Description of businesses in each segment

Business Segment
DomainHosting & cloud

Ecommerce
solutionsInternet
Infrastructure

Security

Payment

OnlineAdvertising &Media

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

Cryptoassets

Cryptoassets
exchange
Cryptoassets
miningCryptoassets
payment

Incubation

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, 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

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-7-

(2) Overview of Financial Condition
Assets, Liabilities and Net Assets(Assets)
As of December 31, 2023, total assets increased ¥214,895 million from December 31, 2022 to ¥1,757,636
million. Major factors included an increase of ¥51,482 million in cash and deposits, an increase of ¥12,315
million in owned cryptoassets, an increase of ¥94,759 million in cryptoassets under custody, and an increase of¥10,354 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 December 31, 2023, liabilities increased ¥196,745 million from December 31, 2022 to ¥1,584,797
million. Major factors included an increase of ¥22,926 million in debt, an increase of ¥59,700 million in bonds, anincrease of ¥94,777 million in deposits received for cryptoassets, a decrease of ¥247 million in various liabilities
due to fluctuations in customer 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¥6,341 million in allowance for contract loss due to deduction from acquisition cost of class shares of GMO
Aozora Net Bank, Ltd..
(Net Assets)
As of December 31, 2023, net assets increased ¥18,150 million from December 31, 2022 to ¥172,839 million.
Major factors included an increase of ¥9,685 million in earned surplus (consisting of an increase from recording
profit attributable to owners of the parent totaling ¥14,191 million, a decrease from dividend payments of ¥3,182
million, a decrease of ¥1,510 million due to retirement of treasury stock), an increase of ¥2,076 million in foreign
currency translation adjustments, and an increase of ¥7,772 million in non-controlling interests.

-8-

(3) Overview of Cash Flows
Cash Flows
As of December 31, 2023, cash and equivalents increased ¥66,688 million from December 31, 2022 to¥388,917 million. The following is a summary of cash flow activity during the fiscal year ended December 31,
2023.
(Cash Flow from Operating Activities)
Inflow in operating activities was ¥14,914 million (¥25,641 million of inflow in FY2022). Major outflow included
payment of corporate taxes, etc. (¥15,279 million), a decrease in owned cryptoassets (¥12,315 million). Major
inflow included net profit before adjustment for tax, etc. (¥42,983 million).
(Cash Flow from Investing Activities)
Outflow from investing activities totaled ¥16,363 million (¥2,828 million of outflow in FY2022). Major inflow
included sales of investment securities (¥20,666 million). Major outflow included acquisition of investment
securities (¥26,636 million) and acquisition of tangible fixed assets (¥15,726 million).
(Cash Flow from Financing Activities)
Inflow from financing activities totaled ¥64,975 million (¥62,442 million of inflow in FY2022). Major outflow
included repayment of long term debt (¥21,518 million) and changes in short term debt (¥19,847 million). Major
inflow included proceeds from new long term debt (¥61,700 million) and proceeds from issuance of bonds(¥59,336 million).

(Reference) Cash Flow Indicators
FY2019FY2020

FY2021

FY2022

FY2023

Shareholders’ equity ratio (%)

6.2

4.8

5.2

4.7

4.7

Shareholders’ equity ratio(market value) (%)

27.0

31.3

21.4

17.1

15.5

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

17.8

4.8

－

15.4

29.3

Interest coverage ratio (times)

9.6

33.5

－

10.2

3.6

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 fiscal 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.

-9-(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 that have a material impact on
business results, 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 ¥44.10 per share (dividend payout ratio: 33.1%) for the fiscal year
ended December 31, 2023.
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.

- 10 -

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Unit: ¥millions)
Previous Fiscal Year(As of Dec 31, 2022)

Current Fiscal Year(As of Dec 31, 2023)

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

341,970

393,452

33,96338,133

11,724

13,260Owned cryptoassets

4,730

17,046

Cryptoassets under custody

61,751

156,511

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

486,478

511,989

143,065

127,497

12,695

12,53173,97570,71994,21998,051

Other

152,029

182,679-8,590-7,616

1,408,015

1,614,257

Buildings and structures (net)13,871

14,074Tools and equipment (net)

6,242

6,317

Land

20,80520,805

Lease assets (net)

3,959

4,415

944

1,224

45,82546,836

Goodwill

17,70815,957

Software11,472

15,367

Other

16,756

12,980Total intangible fixed assets

45,93644,305Investment securities

29,78030,687

Deferred tax asset

4,053

3,872

Other

9,791

25,104

Allowance for doubtful debts-662-7,42742,96352,236

134,725

143,379

1,542,740

1,757,636

Allowance for doubtful debts
Total Current Assets
Fixed Assets
Tangible fixed assets

Other (net)Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Total investments and other assets
Total Fixed Assets
Total Assets- 11 -

(Unit: ¥millions)
Previous Fiscal Year(As of Dec 31, 2022)

Current Fiscal Year(As of Dec 31, 2023)

Liabilities
Current liabilities
Trade notes and accounts payable

14,43015,124

Short term debt

201,324

184,133－

10,200Current portion of long term debt

20,693

13,188Amount payable

47,07552,083

Deposits received for cryptoassets

61,734

156,511

Securities segment deposits received

53,57361,555

Securities segment margin transaction liability

35,92931,816

Securities segment guarantees received

554,407560,407

Securities segment variation margin received

11,25911,677

Securities segment debt secured by securities

26,233

15,698

Accrued corporate tax etc.

7,324

7,957

Allowance for bonuses

2,293

2,422

657

526

Current portion of bonds

Allowance for bonuses to directors
Allowance for contract loss

6,341

－

Advance payment received

3,195

1,264

Contract liabilities

18,31423,053

Deposits received

122,657

130,175

Other

20,202

29,2171,207,649

1,307,015

Total Current Liabilities
Fixed Liabilities
Bonds

51,000100,500

Convertible bonds with equity warrants

20,77020,550Long term debt

97,373

144,996

Deferred tax liability

1,319

1,145

Other

8,988

9,647

179,451

276,839

Financial instruments transaction liability reserve

949

942

Total Statutory Reserve

949

942

1,388,051

1,584,797

Total Fixed Liabilities
Statutory Reserve

Total Liabilities
Net Assets
Shareholders’ Equity
Capital stock

5,000

5,000

Capital surplus

33,28031,866

Earned surplus

37,73047,416

Treasury stock-10,166-10,166

Total Shareholders’ Equity

65,843

74,115

3,397

3,542

Accumulated Other Comprehensive Income
Other securities valuation differences

48

-78

Foreign currency translation adjustments

2,886

4,962

Total Accumulated Other Comprehensive Income

6,332

8,425

43

55

Deferred hedging profit/loss

Equity Warrants
Non-Controlling Interests

82,46990,242

Total Net Assets

154,688

172,839

1,542,740

1,757,636

Total Liabilities and Net Assets- 12 -

(2) Consolidated statements of income and comprehensive income
Consolidated statement of income(Unit: ¥millions)
Previous Fiscal Year(01.01.2022-12.31.2022)

Current Fiscal Year(01.01.2023-12.31.2023)

245,696258,643

Cost of Sales

95,809105,512Gross Profit on Sales

149,886

153,130

Sales, General & Administrative Expenses

106,139

110,658

Operating Profit

43,74642,471

Interest received

584

1,428

Dividends received

1,099

1,100

Foreign exchange gain

Net Sales

Non-Operating Revenue

1,371

525

Gain on sale of investment securities

－

3,702

Gain on investments in partnership

195

506

Other

1,877

1,052

Total Non-Operating Revenue

5,128

8,317

Interest paid

922

1,853

Commission paid

477

558

Equity method investment loss

414

1,174

Loss on derivatives

648

96

Bond issuance cost

32

466

Provision of allowance for doubtful accounts

－

315

Other

354

376

2,850

4,842

46,02545,947

21,127

81

－

24

－

7

Non-Operating Expenses

Total Non-Operating Expenses
Ordinary Profit
Extraordinary Profit
Gain on sale of investment securities
Gain on sale of subsidiaries’ shares
Reversal of financial instruments transaction
liability reserve
Other

1,060

2

Total Extraordinary Profit

22,187

115

3,290

1,907

Loss on valuation of investment securities

507

994

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

6,341

－

25

－

386

176

Total Extraordinary Loss

Extraordinary Loss
Impairment loss

10,552

3,078

Net Profit Before Adjustment for Tax etc.

57,66042,983

Corporate, Municipal and Enterprise Taxes

19,49816,722

Corporate Tax etc. Adjustment-1,5307

Total Corporate Taxes etc.

17,967

16,729Net Profit

39,692

26,254

Profit Attributable to Non-Controlling Interests

26,482

12,062

Profit Attributable to Owners of the Parent

13,20914,191- 13 -

Consolidated statement of comprehensive income(Unit: ¥millions)
Previous Fiscal Year(01.01.2022-12.31.2022)

Current Fiscal Year(01.01.2023-12.31.2023)

39,692

Net Profit

26,254

Other 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
Comprehensive Income-1,192

268

69

-190

4,464

4,477

-250

64

3,090

4,620

42,78330,874

15,394

16,28527,38914,589(Breakdown)Comprehensive income attributable to Owners of
the Parent
Comprehensive income attributable to Noncontrolling Interests- 14 -

(3) Consolidated statement of changes in shareholders’ equity, etc.
Previous 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

Total
Treasury stock shareholders’equityEarnedsurplus35,756-5,684

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-3,032

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

-7,515-7,515

3,032－-2,352－-367

Ending balance

-367

－

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

33,28037,730-10,166

65,843

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－

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

-8

15,666

17,842

Total changes during the year

-161

48

2,297

2,184

-8

15,666

16,702Ending balance

3,397

48

2,886

6,332

43

82,469154,688- 15 -

Current Fiscal Year (01.01.2023 – 12.31.2023)(Unit: ¥millions)Shareholders’ equity
CapitalsurplusCapital

5,000

Beginning balance

33,280Total
Treasury stock shareholders’equityEarnedsurplus37,730-10,166

65,843

Changes during the year
Dividends-3,182-3,182

Profit attributable to owners of the parent

14,191

14,191

Acquisition of treasury stock
Retirement of treasury stock-1,510-1,5101,510－-1,510

Increase in earned surplus due to a decrease inconsolidated subsidiaries
Transfer from earned surplus to capital surplus

1,510

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

186

186

-1,510－-1,413Ending balance-1,413－-1,413

9,685

-0

8,271

5,000

31,86647,416-10,166

74,115

Accumulated other comprehensive income
Othersecurities
valuationdifferences

Beginning balance

3,397

Deferredhedging
profit/loss

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income

2,886

6,332

48

Equitywarrants

Noncontrollinginterests

43

82,469Total net
assets154,688

Changes during the year
Dividends-3,182

Profit attributable to ownersof the parent

14,191

Acquisition of treasury stock-1,510Retirement of treasury stock－

Increase in earned surplus
due to a decrease inconsolidated subsidiaries

186

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)Total changes during the year
Ending balance-1,413

144

-127

2,076

2,093

144

-127

2,076

2,093

11

7,772

18,150

3,542

-78

4,962

8,425

55

90,242

172,839- 16 -

11

7,772

9,878

(4) Consolidated statement of cash flows(Unit: ¥millions)
Previous Fiscal Year(01.01.2022-12.31.2022)

Current Fiscal Year(01.01.2023-12.31.2023)

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

57,66042,983

Depreciation expenses

11,33911,646

Impairment loss

3,290

1,907

Amortization of goodwill

2,327

1,934

Interest and dividends received-1,683-2,529Interest paid

2,480

4,196

Gain or loss on derivatives (- represents gain)

648

96

Commission paid

477

558

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)

32

466

414

1,174

-195

-506

507

994

-21,127-3,784

4,705

5,413

25

-7

-1,607-10

6,341-6,341

Changes in trade payables (- represents decrease)
Changes in amount payable (- represents decrease)
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)

2,110-1,403-9,230-7,248844

4,604

11,742

7,505-7,989-25,510-6,113

3,256-20,125-3,41333,457

13,982-2,957

15,357

5,619-10,535-3,069163

11,565-12,315

Other-35,748-11,127

Sub total

45,741

31,508Interest and dividends received

1,115

2,875

Interest paid

-2,518-4,189Corporate tax etc. paid

-18,697-15,279

Cash Flow from Operating Activities

25,641

14,914- 17 -

(Unit: ¥millions)
Previous Fiscal Year(01.01.2022-12.31.2022)

Current Fiscal Year(01.01.2023-12.31.2023)

Cash Flow from Investing Activities
Placement of fixed term deposit-10,813-9,999Withdrawal of fixed term deposit

2,279

23,547-15,726

Acquisition of tangible fixed assets-4,316

Acquisition of intangible fixed assets-6,085-6,715Acquisition of investment securities-3,938-26,636

Proceeds from sale of investment securities
Acquisition of subsidiary stock resulting in change inscope of consolidation
Origination of loans receivable

24,50920,666-6,561-55-1,305-883

Collection of loans receivable

1,621

147

Payment of deposit money-5,489-1,669Collection of deposit money

7,087

1,004

Other
Cash Flow from Investing Activities

184

-43

-2,828-16,363

34,187-19,847

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

62,27061,700

Repayment of long term debt

-10,262-21,518

Proceeds from issuance of bonds

5,967

59,336

Payment of installment and lease obligations-1,785-1,969Payment from investment partners

2,281

772

Payment to investment partners-7,036-230

Payment from non-controlling interests
Acquisition of treasury stock
Acquisition of subsidiaries’ treasury stock

344

50

-7,517-1,510-201-0Payment of dividends-6,467-3,187

Payment of dividends to non-controlling interests
Acquisition of subsidiary stock without change in scope of
consolidation
Other-9,209-5,927-127-2,592－-100

Cash Flow from Financing Activities

62,44264,975Currency Translation Adjustment on Cash and Equivalents

2,933

3,162

Changes in Cash and Equivalents (- represents decrease)88,187

66,688

Balance of Cash and Equivalents at Beginning of Year

234,041

322,229

Balance of Cash and Equivalents at End of Year322,229

388,917- 18 -

(5) Notes to consolidated financial statements(Notes regarding going concern assumption)
Not applicable(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
On January 1, 2023, the Company applied “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (Accounting Standards Board of Japan (“ASBJ”) Guidance No.31, June 17, 2021, “Implementation
Guidance on Accounting Standard for Fair Value Measurement”), and the new accounting policies stipulated in the
Implementation Guidance on Accounting Standard for Fair Value Measurement are applied prospectively pursuant
to the transitional treatment stipulated by Paragraph 27-2 of the Implementation Guidance on Accounting Standard
for Fair Value Measurement. The application had no impact on the consolidated financial statements.
(Changes in presentation method)(Consolidated statement of cash flows)“Proceeds from acquisition of subsidiary stock resulting in change in scope of consolidation” which was
separately presented in “Cash flows from investing activities” for the fiscal year ended December 31, 2022 isincluded in “Other” from the fiscal year ended December 31, 2023 as the amount became immaterial. The
consolidated financial statements for the fiscal year ended December 31, 2022 were reclassified to reflect thischange in presentation.
As a result, in the consolidated statement of cash flows for the fiscal year ended December 31, 2022, “Proceedsfrom acquisition of subsidiary stock resulting in change in scope of consolidation” of ¥212 million in “Cash flows
from investing activities” was reclassified to “Other.”- 19 -

(Segment information, etc.)(Segment information)
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 and
CFD trading service. The Cryptoassets segment engages in cryptoassets exchange, cryptoassets trading service,mining and payment businesses. 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 in accordance with those adopted in preparing 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.

- 20 -

3. Net Sales, Profit or Loss, Assets, Liabilities and Other Items by Reportable Segment
Previous 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.
Current Fiscal Year (01.01.2023– 12.31.2023)(Unit: ¥millions)
Reportable segment
OnlineInternet
Advertising
Infrastructure& MediaInternet
Finance

Cryptoassets Incubation

Total

Other
（*1）

Adjustment
（*2）

Total
（*3）

Net Sales
Sales to unaffiliatedcustomers
Inter-segment sales
and transfers

170,011

32,13847,252

4,554

690

254,647

3,995－

258,643

1,488

2,526

24

－

－

4,040

540

-4,580－

Total

171,500

34,66547,2774,554

690

258,687

4,535-4,580258,643

Segment profit/loss(-represents loss)

28,728

1,875

13,756-1,271-140

42,948-397-78

42,471

8,200

447

2,508

120

2

11,279367－

11,646

Other items
Depreciation(notes) 1. “Other” represents Real estate leasing and other businesses not included in reportable segments.
2. Adjustment for Segment profit/loss (¥-78 million) is an elimination of inter-segment transactions.
3.Segment profit/loss is adjusted to operating profit presented on the consolidated statement of income.

- 21 -

(Related Information)
Previous 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.
Current Fiscal Year (01.01.2023 – 12.31.2023)
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.

- 22 -

(Information relating to impairment loss on fixed assets by reportable segment)
Previous 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

Current Fiscal Year (01.01.2023 – 12.31.2023)(Unit: ¥millions)
Reportable segment

Impairment
loss

Internet
Infrastructure

OnlineAdvertising& Media

193

1,327

Internet
Finance

Cryptoassets

Incubation

56

－

329

Total

Other
(Note)

1,907

Corporate/elimination

－

－

Total

1,907

(Information regarding goodwill amortization and unamortized balance by reportable segment)
Previous Fiscal Year (01.01.2022 – 12.31.2022)(Unit: ¥millions)
Reportable segment

Amortization
during theyear
Balance at
end of year

Internet
Infrastructure

OnlineAdvertising& Media

1,387

12

7,711

53

Internet
Finance

Other(Note)

Corporate/elimination

Total

Cryptoassets Incubation

Total

925

－

－

2,325

1

－

2,327

9,943

－

－

17,708－－17,708Current Fiscal Year (01.01.2023 – 12.31.2023)(Unit: ¥millions)
Reportable segment

Amortization
during theyear
Balance at
end of year

Internet
Infrastructure

OnlineAdvertising& Media

1,000

8

6,712

31

Internet
Finance

Other(Note)

Corporate/elimination

Total

Cryptoassets Incubation

Total

924

－

－

1,934

－

－

1,934

9,018

－

－

15,761

195－

15,957(Note) “Other” relates to Data Analytics business, etc.
(Information regarding profit arising from negative goodwill by reportable segment)
There was no significant profit arising from negative goodwill.

- 23 -

(Per share information)(Unit: yen)Previous Consolidated Fiscal Year(01.01.2022 – 12.31.2022)

Item

Current Consolidated Fiscal Year(01.01.2023 – 12.31.2023)

Net assets per share

676.28777.50Net profit per share
Net profit per share (diluted)

123.21121.58133.33132.20(Notes) Calculation of net profit per share and net profit per share (diluted) is based on the following:
Item

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year(01.01.2022 – 12.31.2022)(01.01.2023 – 12.31.2023)(1) Net profit per share
Profit attributable to owners of theparent (¥millions)
Amount not attributable to commonshareholders (¥millions)
Net profit attributable to owners of theparent related to common stock(¥millions)Average number of common stock
outstanding during the period (shares)
Average number of treasury stockduring the period (shares)
Average number of stock during theperiod (shares)

13,20914,191－－

13,20914,191

110,929,104

110,228,311-3,722,616-3,792,474

107,206,488

106,435,838

-174

-120

(-174)(-120)－－

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: 35 shares

1. Consolidated subsidiaries
i. GMO AD Partners, Inc.
Stock Options 6th Round
Common stock: 241,000 shares
ii. GMO Financial Holdings, Inc.
Equity Warrants 2nd Round
Common stock: 1,775,000 sharesiii. GMO CONNECT, Inc.
Equity Warrants 1st Round
Common stock: 35 shares
Equity Warrants 2nd Round
Common stock: 42 shares(2) Net profit per share (diluted)
Adjustment to net profit attributable toowners of the parent (¥millions)(including adjustment for dilutive sharesin consolidated subsidiaries) (¥millions)
Increase in number of common stock(shares)
Dilutive shares not included in thecalculation of net profit per share (diluted)
because of their anti-dilutive effect.

- 24 -

(Significant subsequent events)(Acquisition of trust beneficiary rights (fixed assets))
At the Board of Directors meeting held on November 29, 2023, it was resolved to acquire trust beneficiaryrights (fixed assets) from TOKYU CORPORATION, TOKYU BUS CORPORATION and CT Realty Limited. We
signed the sales and purchase agreement on November 30, 2023 and acquired the trust beneficiary rights(fixed assets) on January 31, 2024.
(1) Reason for acquisition of trust beneficiary rights (fixed assets)
To secure long-term stable revenue and enhance GMO Internet Group’s brand value(2) Details of the acquisition(i) Name and type of assets: 35% of the trust beneficiary rights (fixed assets) set for Setagaya Business
Square(ii) Location: Yoga, Setagaya-ku, Tokyo(iii) Acquisition cost: ¥15,206 million(iv) Funding method: Borrowings from financial institutions(3) Impact on for the consolidated financial statements
We do not expect this share acquisition to have a material impact on our consolidated financial results
for the fiscal year 2024.
(Share acquisition and conversion to a consolidated subsidiary through third-party allotment)
At the Board of Directors meeting held on February 13, 2024, it was resolved to acquire shares of Flatt
Security Inc. from its existing shareholders and through subscription to a third-party allotment of shares tomake the company our consolidated subsidiary. The share transfer agreement and the share subscription
agreement were entered into on the same day.
(1) Name and business description of the subject company(i) Name of the subject company: Flatt Security Inc. (“Flatt Security”)(ii) Business description: Cyber security-related service(2) Reason for share acquisition and subscription to a third-party allotment
While DX has advanced in all areas including business, cyberattacks targeting corporate andorganizational information assets are repeated on a daily basis, and the leakage of information and businessinterruptions caused by these attacks have become serious social issues. Under the slogan “Safe andSecure Internet for Everyone,” the security business in the Internet Infrastructure segment, our corebusiness, offers security services to provide safe and secure Internet for everyone, including “digital
certification security,” “cybersecurity,” and “brand security” to meet the ever-accelerating security needs.
Since the launch of its security business in 2019, Flatt Security, a team of professionals of productsecurity, has supported product security initiatives of various companies across industries under the
corporate slogan “Deliver next-generation security to developers and accelerate product development
around the world.” The company provides customer-oriented accompanying style product security services
by taking advantage of insights acquired through the in-house development of security products, provisionof various support to product development companies, and thorough feedback from users.
By welcoming Flatt Security, a group of highly talented security engineers with strong productdevelopment capabilities and abundant knowledge and know-how about product security of any industry,
into the Group, we expect to achieve great synergy between our core Internet Infrastructure business, suchas “Domain,” “Hosting & cloud,” and “Payment,” and the company’s security products. We also anticipate
business development through collaboration with GMO Cyber Security by Ierae, Inc., which operates acybersecurity business.
(3) Timing of share acquisition and subscription to a third-party allotment
February 29, 2024 (plan)(4) Number of shares to be acquired, acquisition cost and shareholding ratio after the transfer(i) Number of shares to be acquired: 1,535,619 shares(ii) Acquisition cost: ¥2,332 million(iii) Shareholding ratio after the acquisition: 66.6%- 25 -

(Acquisition of treasury stock)
At the Board of Directors meeting held on February 13, 2024, 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 of treasury stock
To improve shareholder returns and capital efficiency(2) Details of the acquisition(i) Class of shares to be acquired: Common stock of the Company(ii) Total number of shares to be acquired: 1.10 million shares (maximum)(iii) Total cost of share acquisition: ¥2,410 million (maximum)(iv) Acquisition period: From February 14, 2024 to February 7, 2025(v) Acquisition method: Market purchase at the Tokyo Stock Exchange(Retirement of treasury stock)
At the Board of Directors meeting held on February 13, 2024, 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 of treasury stock: To improve shareholder returns and capital efficiency(ii) Class of shares to be retired: Common stock of the Company(iii) Total number of shares to be retired: 936,782 shares (percentage to total number of outstanding shares
before retirement: 0.85%)(iv) Scheduled date of retirement: March 18, 2024(v) Total number of outstanding shares after retirement: 109,176,555 shares- 26 -