June 18, 2024

Company Name:

GMO Internet Group, Inc.
(TSE Prime Market, Code: 9449)

Address:

26-1 Sakuragaoka-cho, Shibuya-ku, Tokyo, JAPAN

Representative:

Masatoshi Kumagai, Founder, Chairman and Group CEO

Contact:

Masashi Yasuda, Director, Executive Vice President and Group
CFO, Deputy to Group CEO, Head of Group Management
Division

Telephone:+81 3 5456 2555

URL:

https://www.gmo.jp/en

Notice Regarding Establishment of Subsidiary
to Support the Introduction and Use of AI and Robotics
GMO Internet Group, Inc. (the "Company") hereby announces that our Board of Directors has resolved at ameeting held on June 17, 2024, to establish a subsidiary.
1. Purpose of Establishing a Subsidiary (GMO AI & Robotics Corporation, hereafter GMO AIR)
GMO Internet Group, with the catchphrase "Becoming the No.1 Corporate Group Pioneering the Future with AI,"
with the emergence of "ChatGPT" in November 2022, we foresaw a transformative shift and quickly began
leveraging it across the entire group.
Focusing on (1) time and cost savings, (2) improving the quality of existing services, and (3) providing newservices to the AI industry, we stay updated with the latest AI developments, and are working to achieve these.
The AI robotic market is expected to grow at a CAGR (Compound Annual Growth Rate) of 38.6%, increasingfrom USD 6.9 billion in 2021 to USD 35.3 billion by 2026.¹ This reflects the rapid advancement in thedevelopment of robots, which have a high affinity with AI, driven by the accelerated evolution of AI due toinnovations such as the evolution of GPUs.
Under such circumstances, while some data indicates that many people in Japan are still cautious about using
generative AI², it has been predicted that Japan will be short of 11 million workers by 2040³. In order to breakthrough the near-future situation predicted by such data and promote the growth of the Japanese economy,
GMO AIR was established to encourage the spread of AI, robots, and industrial drones in Japan.
GMO AIR, with the slogan "AI and Robots for Everyone," plans to develop business centered on supporting theintroduction and utilization of AI and robots/drones.
GMO AIR will not only procure robots from domestic and international sources by leveraging its global network,
but it will also offer GMO Internet Group's internet infrastructure products (including internet connectivity,domains, cloud services, SSL, payment services, security, data centers, and maintenance).
Additionally, leveraging the strengths of our financial business, we will provide services such as rentals, leases,loans, insurance, and government grant utilization support. Furthermore, based on AI research and applications
that have been advanced since 2013, we will offer AI utilization know-how that can reduce work hours by
106,000 hours per month and cut costs by 1.8 billion yen annually to our customers.

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GMO AIR aims to be a comprehensive trading company for AI and robots, offering customers integrated
solutions through these products and services.
In the future, GMO AIR aims to build an "Interaction Data Platform" and provide "Financial Services/LaaS (Laboras a Service) Joint Venture Establishment (including financing, IPO Support, and government grant utilizationsupport)" to domestic and international robot manufacturers and industrial drone manufacturers.
The behavioral and observational data (interaction data) obtained from robots and drones will be compiled into
comprehensive data with high precision, safety, and reliability, and fed back to domestic and international robot
and industrial drone manufacturers, as well as AI-related companies. We believe this will form a significant
foundation for the development of the AI and robotics industry.
References:
1. Artificial Intelligence Robotics Market Size, Share, Industry Growth, Trends and Analysis (2030)(marketsandmarkets.com)
2. Those who are positive about the use of generative AI at their workplaces are more than twice the numberof those who are negative about it | GMO Research & AI survey
3. Book "Impact of 11 million worker shortage" (by Seito Furuya / Recruit Works Research Institute)

2. Outline of New Subsidiary

(1)

Name

GMO AI & Robotics Corporation(2)

Location26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN(3)

Name & Title ofRepresentative

Representative Director Tomohiro Uchida(4)

Business Description

Support the Introduction and Use of AI and Robotics(5)

Capital

100 million yen(6)

Establishment

June 18, 2024

(7)

Major Shareholders andOwnership Ratios

GMO Internet Group, Inc. 100%.
The Company plans to find the company
Capital relationship as a consolidated subsidiary of theCompany.

(8)

Relationship between thePersonnel
Company and said company relationship

The Company's offers plan to concurrently
serve as directors of the said subsidiary.
The Company plans to sign a businessentrustment contract with the saidsubsidiary.

Businessrelationship3. Schedule(1)

Date of Resolution by theBoard of Directors

June 17, 2024

(2)

Date of Establishment ofthe Said Subsidiary

June 18, 2024 (planned)(3)Date of Business Launch

June 18, 2024 (planned)24. Future outlook
Regarding the consolidated results of the Company in the fiscal year ending December 2024, the Company
considers that this has limited impact. The Company shall also immediately disclose any further important
information which has come to light.

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