Fiscal Year 2024 Second Quarter (Interim) Consolidated Financial Results(Japanese GAAP)
August 8, 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 Semi-annual Securities Report Release: August 13, 2024
Start Date of Dividend Payout: September 18, 2024
Supplementary documents available pertaining to financial results: Yes
Financial results briefing: Yes (live stream only and Q&A session for institutional investors)(all amounts rounded down to the nearest million yen)
1. Second Quarter (Interim) Financial Results in the Year Ending December 31, 2024 (01.01.2024 06.30.2024)(1) Consolidated Operating Results (cumulative)(percentages shown represent year-on-year % change)
Profit Attributable to
Net Sales
Operating Profit
Ordinary Profit
Owners of the
ParentSix months ended¥ millions%¥ millions%

Net Profit per
Share

Net Profit per Share(Diluted)¥ millions%¥ millions%

June 30, 2024
136,480
4.9
24,01016.4
25,238
12.0
7,722
21.7
June 30, 2023
130,043
3.6
20,618 -33.4
22,536 -32.7
6,344 -59.1(Note) Comprehensive Income: June 30, 2024: ¥22,500 million (21.6%), June 30, 2023: ¥18,497 million (-58.3%)

Six months ended¥

June 30, 2024
June 30, 2023

72.74
59.47

¥

71.96
58.80

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

Net Assets¥ millions¥ millions%

June 30, 2024
1,925,041
192,098
4.6
December 31, 2023
1,757,636
172,839
4.7(Reference) Shareholders’ Equity: June 30, 2024: ¥89,141 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)

12.20
17.20

End of Q2
¥

7.50
6.90

End of Q3¥

End of Term

Total
¥

¥

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., our subsidiary,
discloses sales indicators, such as foreign exchange transaction volume, stock brokerage trading
value, CFD trading value, cryptoasset trading value and the number of customer accounts, andoperating revenue on a monthly basis.

*Notes(1) Significant changes in the scope of consolidation during the current interim period: Yes
New: One company (Flatt Security Inc.)(2) Special accounting treatments used in preparation of the interim 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)
1. Outstanding shares at end of period (including treasury stock)
109,176,555 shares
As of June 30, 2024
110,113,337 shares
As of December 31, 2023
2. Treasury shares at end of period
As of June 30, 2024
As of December 31, 2023
3. Average number of shares during the interim period
First six months of FYE 12/2024
First six months of FYE 12/2023

3,015,085 shares
3,951,867 shares
106,161,470 shares
106,682,977 shares*Second Quarter (Interim) Consolidated Financial Results are not subject to a 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 August 8, 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) Interim operating results ······················································································2(2) Interim financial condition ····················································································9(3) Consolidated results forecast and other forward-looking information ·····························92. Interim Consolidated Financial Statements and Major Notes ·········································· 10(1) Interim consolidated balance sheet ······································································ 10(2) Interim consolidated statements of income and comprehensive income ······················ 12(3) Notes regarding the interim consolidated financial statements ··································· 14
Segment information, etc. ···················································································· 14
Notes regarding a going concern assumption ·························································· 15
Notes regarding changes impacting shareholders’ equity ··········································· 15
Notes regarding significant changes in the scope of consolidation during the six months
ended June 30, 2024 ·························································································· 15
Additional information ·························································································· 15
Significant subsequent events ·············································································· 17―1―1. Qualitative Information Related to Financial Results(1) Operating results◆

Overview of the Financial Results for the Six Months Ended June 30, 2024
(Unit: ¥millions)

Net Sales

Six months ended Six months ended
June 30, 2023
June 30, 2024
130,043
136,480

Change% Change

6,437

4.9%

Operating Profit

20,61824,010

3,391

16.4%

Ordinary Profit
Profit Attributable to Owners of the
Parent22,53625,238

2,701

12.0%

6,344

7,722

1,378

21.7%

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 which continues to achieve strong performance
thanks to the move towards a cashless society, along with the expansion of customer base mainly inDomain. (2) The Online Advertising & Media segment faced advertising budget reduction in certain
industries in the advertising business, but the number of visitors through in-house products showedsteady growth in the media 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. CFD reported sales
increase due to an increase in volume of index trading in response to global stock market rally.
Meanwhile, the recognition of allowance for doubtful debts of approximately ¥4.5 billion in the
securities business in Thailand during the six months ended June 30, 2024 resulted in a decrease inprofit. (4) The Cryptoassets segment reported profit as the cryptoasset market is back on a recovery
track, which led to strong growth in the transaction volume.
As a result, for the six months ended June 30, 2024, the Group recorded net sales of ¥136,480
million (up 4.9% year-on-year), operating profit of ¥24,010 million (up 16.4% year-on-year), ordinary
profit of ¥25,238 million (up 12.0% year-on-year) and net profit attributable to owners of the parent of¥7,722 million (up 21.7% year-on-year).

―2―Net Sales and Operating Profit by Segment for the Six Months Ended June 30, 2024
(Unit: ¥millions)

Six months ended Six months ended
June 30, 2023
June 30, 2024
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% Change

84,70913,001

90,696
18,665

5,986
5,663

7.1%
43.6%

17,3391,026

17,210
1,310

-128
284

-0.7%
27.7%

25,058
7,597

21,823
2,849-3,234-4,747-12.9%-62.5%

2,161
-823

4,100
1,339

1,939
2,162

89.7%
－

651
112

1,004
139

352
27

54.0%
24.7%

2,421
-215

3,850
-236

1,428
-20

59.0%
－

-2,297-79-2,204
-57

93
22

－
－

130,043
20,618

136,480
24,010

6,437
3,391

4.9%
16.4%

◆Overview of Financial Results for the Three Months Ended June 30, 2024
(Unit: ¥millions)

Net Sales
Operating Profit
Ordinary Profit
Profit attributable to Owners of
the Parent

Three months
ended June 30,
2023
64,4509,627
10,603Three months
ended June 30,
2024
67,619
9,573
9,734

2,412

2,203

Change% Change

3,169
-53
-868

4.9%
-0.6%
-8.2%

-209

-8.7%

During the three months ended June 30, 2024, the Internet Infrastructure segment posted recordhigh quarterly net sales thanks to steady growth of Payment and contributions from large deals in
GMOBRAND SECURITY. In the Online Advertising & Media segment, while the advertising businessfaced advertising budget reduction in certain industries, sales of in-house products expanded and thenumber of visitors through in-house products showed steady growth in the media business. The
Internet Finance segment reported a decrease in profit due to a fall in profitability caused by adecline in volatility in the foreign exchange market and the recognition of allowance for doubtful debts
of approximately ¥4.5 billion in the securities business in Thailand. The cryptoassets segment
reported profit for the three months ended June 30, 2024 due to steady growth in the transaction
volume.

―3―

Net Sales and Operating Profit by Segment for the Three Months Ended June 30, 2024
(Unit: ¥millions)Three months ended
June 30, 2023

Three months ended
June 30, 2024

Net Sales
Operating Profit

42,548
6,007

45,655
9,449

3,106
3,441

Online Advertising & MediaNet Sales

8,435

8,250

-184

-2.2%

Operating Profit

358

563

205

57.3%

12,265
3,834

10,852-676-1,412-4,511-11.5%

958
-484

1,784
385

825
869

86.1%

456

106

-349

-76.6%

3

-300

-303

－

973
-92

2,060
173

1,086
266

111.5%-1,1870-1,089
-20

97
-21

－
－

64,4509,627

67,619
9,573

3,169

4.9%

-53

-0.6%

Change% Change

Internet Infrastructure
7.3%
57.3%

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

Segments results for the three months ended June 30, 2024 are as follows.
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 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 June 30, 2024 was
2.16 million (up 23.6% year-on-year), the total number of domains under management as of June 30,2024 was 10.01 million (up 32.1% year-on-year). As a result, net sales amounted to ¥2,590 million(up 8.5% 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 contracts as of June 30, 2024 was 1,114 thousand (down 0.1% year-on-year), and net
sales were ¥5,348 million (up 5.9% year-on-year).

―4―

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
original merchandise production/sales service, and O2O support service. In EC platform, the numberof paid stores as of June 30, 2024 decreased 6.4% year-on-year to 50 thousand, but the totaltransaction volume was ¥128.5 billion (up 8.1% year-on-year) due to a steady shift to high-priceplans. For minne, on the other hand, the total transaction volume decreased by 12.7% year-on-yearto ¥2.8 billion due to a continued decline in the circulation volume of low-priced products. As a result,net sales were ¥3,643 million (down 10.0% 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 Flatt
Security, and brand security provided by GMO BRAND SECURITY. Net sales increased by 35.4%
year-on-year to ¥4,839 million thanks to contribution from GMO BRAND SECURITY during the threemonths ended June 30, 2024.
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 steady growth, and net sales increased to ¥17,840
million (up 9.4% 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 strong growth, the number of subscriptions at June 30, 2024
decreased to 2.24 million (down 1.2% year-on-year) due to a change in sales mix, and as a result,net sales were ¥10,150 million (down 0.4% year-on-year).
Overall, the Internet Infrastructure segment recorded net sales of ¥45,655 million (up 7.3% year-onyear) and operating profit of ¥9,449 million (up 57.3% 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. The advertising agency service
faced advertising budget reduction in certain industries while sales of in-house products steadily
increased. As a result, net sales amounted to ¥3,925 million (down 13.0% year-on-year).
ii. Internet media
This sub-segment provides advertising space through operation of our own media and services
mainly through GMO Media. The number of visitors through in-house products continued to show
favorable growth. As a result, net sales amounted to ¥3,241 million (up 16.1% year-on-year).
Overall, net sales in the Online Advertising & Media segment increased to ¥8,250 million (down 2.2%
year-on-year), and operating profit increased to ¥563 million (up 57.3% year-on-year).

―5―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 June 30, 2024,
the number of OTC FX accounts increased to 1,521 thousand (up 4.5% year-on-year) and thenumber of securities accounts increased to 530 thousand (up 2.8% year-on-year). OTC FX reported
sluggish sales due to a decline in market volatility attributable to the yen’s steady fall. CFD reported
sales increase due to active movements in stock price indexes in response to global stock market
rally.
Overall, the Internet Finance segment recorded net sales of ¥10,852 million (down 11.5% year-onyear) and operating loss of ¥676 million (operating profit of ¥3,834 million for the three months ended
June 30, 2023) due to the recognition of allowance for doubtful debts of approximately ¥4.5 billion in
the securities business in Thailand.
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, no sales were recorded for the three months ended June 30, 2024 (¥169 million for thethree months ended June 30, 2023). Downside risks to earnings are limited 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 June 30, 2024 increasing to 645 thousand (up12.2% year-on-year), and the trading value also showed favorable growth due to improved market
conditions. As a result, net sales increased to ¥1,743 million (up 121.0% year-on-year).
Overall, the Cryptoassets segment reported net sales of ¥1,784 million (up 86.1% year-on-year) andoperating profit of ¥385 million (operating loss of ¥484 million for the three months ended June 30,2023).
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 ¥106 million (down 76.6% year-on-year), and operating
loss was ¥300 million (operating profit of ¥3 million for the three months ended June 30, 2023) due tosales of investment securities held and the recognition of loss on valuation.
(Reference1)

Changes in Operating Results and Financial Condition by Quarter

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

Q2 2023
64,4509,627
10,603Q3 2023
62,5019,466
9,707

Q4 2023
66,097
12,386
13,703Q1 2024
68,861
14,436
15,503(Unit: ¥millions)
Q2 2024
67,619
9,573
9,734

2,412

3,288

4,558

5,519

2,203

1,669,248
79,3691,706,559
81,804

1,757,636
82,541

1,937,332
86,6881,925,041
89,141―6―

(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)Q1 2024
Q2 2024

Q2 2023

Q3 2023

Q4 2023

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

10,150
2,590
5,348
3,643
4,839
17,8401,241
45,655

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

3,925
3,241
1,083
8,250

12,265

10,53911,67910,971

10,852

789
169
0
958

819
88
50
958

1,294
40
100
1,434

2,206
0
109
2,315

1,743
－
40
1,784

456
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
68,861

106
66,6492,060-1,08967,619Q2 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

Q2 2024
9,449
563
-676
385
-300
9,421
173
-20
9,573

II Operating Profit by Segment
Internet Infrastructure
Online Advertising & MediaInternet Finance
Cryptoassets
Incubation
Sub total
Other
Adjustment
Operating Profit―7―

(Reference3)
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 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

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

(2) Financial condition
Assets, Liabilities and Net Assets(Assets)
As of June 30, 2024, total assets increased ¥167,405 million from December 31, 2023 to ¥1,925,041
million. Major factors included an increase of ¥23,915 million in cash and deposits, an increase of¥77,453 million in cryptoassets under custody, an increase of ¥16,751 million in tangible fixed assets,
an increase of ¥26,344 million in investment securities, and an increase of ¥14,141 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 June 30, 2024, total liabilities increased ¥148,145 million from December 31, 2023 to¥1,732,943 million. Major factors included an increase of ¥58,693 million in debt, an increase of¥77,453 million in deposits received for cryptoassets, an increase of ¥1,247 million in contract
liabilities, and an increase of ¥10,722 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).
(Net Assets)
As of June 30, 2024, total net assets increased ¥19,259 million from December 31, 2023 to¥192,098 million. Major factors included an increase of ¥1,979 million in earned surplus (consistingof an increase from recording profit attributable to owners of the parent totaling ¥7,722 million, adecrease from dividend payments of ¥3,333 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 ¥3,162 million in foreign currency translation adjustments, and an increase of ¥12,655 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.

―9―2. Interim Consolidated Financial Statements and Major Notes(1) Interim consolidated balance sheet
FYE 12/2023(As of Dec 31, 2023)(Unit: ¥millions)First six months of
FYE 12/2024(As of June 30, 2024)

AssetsCurrent Assets
Cash and deposits
Trade notes, accounts receivable and contract
assets393,452

417,368

38,13336,310Operational investment securities

13,26014,331Inventory

20,70924,946

Cryptoassets under custody

156,511

233,965

Securities segment deposits

511,989

515,826

Securities segment margin transaction assets

127,497

132,309

Securities segment loan secured by securities

12,531

5,147

Securities segment short term guarantee deposits

70,71974,240

Securities segment variation margin paid

98,051

107,405

Other

179,016

187,350

Allowance for doubtful debts
Total Current Assets-7,616-9,071

1,614,257

1,740,130

46,836

63,588Fixed Assets
Tangible fixed assets
Intangible fixed assets
Goodwill

15,957

17,467

Software15,367

15,874Other

12,98013,140Total intangible fixed assets

44,30546,482

Investment securities

30,68757,032

Deferred tax asset

3,872

3,352

Other

25,10425,751

Allowance for doubtful debts-7,427-11,295

Investments and other assets

Total investments and other assets
Total Fixed Assets
Total Assets―10―

52,236

74,840143,379

184,9111,757,636

1,925,041

FYE 12/2023(As of Dec 31, 2023)(Unit: ¥millions)First six months of
FYE 12/2024(As of June 30, 2024)

Liabilities
Current Liabilities
Trade notes and accounts payable

15,124

13,368

Short term debt

197,322

224,895

Current portion of bonds

10,200226

Amount payable

52,08345,576

Deposits received for cryptoassets

156,511

233,965

Securities segment deposits received

61,55558,953

Securities segment margin transaction liability

31,81629,958

Securities segment guarantees received

560,407568,025

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

11,67722,67015,69812,270

7,957

7,248

Allowance for bonuses

2,422

2,224

526

440

Allowance for bonuses to directors
Advance payment received

1,264

1,738

Contract liabilities

23,05324,300

Deposits received

130,175

128,909

Other

29,217

39,1381,307,015

1,413,910

Bonds

100,500

111,475

Convertible bonds with equity warrants

20,55020,440Long term debt

144,996

176,116

Deferred tax liability

1,145

1,108

Other

9,647

8,945

276,839

318,085942

948

Total Current Liabilities
Fixed Liabilities

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

942

948

1,584,797

1,732,943

Net Assets
Shareholders’ Equity
Capital stock

5,000

5,000

Capital surplus

31,86631,889Earned surplus

47,41649,395

Treasury stock-10,166-7,756

Total Shareholders’ Equity

74,11578,528

3,542

2,476

Accumulated Other Comprehensive Income
Other securities valuation differences

-78

12

Foreign currency translation adjustments

4,962

8,124

Total Accumulated Other Comprehensive Income

8,425

10,613

Deferred hedging profit/loss

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

―11―

55

59

90,242

102,897

172,839

192,098

1,757,636

1,925,041

(2) Interim consolidated statements of income and comprehensive income
Interim consolidated statement of income
For the six months ended June 30, 2023 and 2024
(Unit: ¥millions)First six months of
FYE 12/2023(Jan. to June 2023)
130,043First six months of
FYE 12/2024(Jan. to June 2024)
136,480

Cost of Sales

54,30054,999Gross Profit on Sales

75,743

81,481

Sales, General & Administrative Expenses

55,12457,470Operating Profit

20,61824,010Interest received

657

751

Dividends received

402

260

Foreign exchange gain

780

1,209

Gain on sale of investment securities

750

1,515

Gain on investments in partnership

450

473

Other

629

633

3,670

4,844

Interest paid

826

1,364

Equity method investment losses

139

935

Bond issuance cost

305

86

Commission paid

259

897

Net Sales

Non Operating Revenue

Total Non Operating Revenue
Non Operating Expenses

221

332

1,751

3,616

22,53625,238Gain on sale of investment securities

57

1,641

Reversal of financial instruments transaction
liability reserve

3

－

Other
Total Non Operating Expenses
Ordinary Profit
Extraordinary Profit

Other

0

4

Total Extraordinary Profit

61

1,646

Impairment loss

320－

Loss on disposal of fixed assets

19

321

Loss on valuation of investment securities

892

176

Provision of financial instruments transaction
liability reserve－

5

Extraordinary Loss

2

42

1,234

545

Net Profit before Adjustment for Tax, etc.

21,363

26,338

Corporate, Municipal and Enterprise Taxes

9,097

9,878

Corporate Tax etc. Adjustment

-483

632

Total Corporate Taxes, etc.

8,614

10,511Net Profit

12,74915,827

Profit attributable to Non-controlling Interests

6,404

8,104

Profit attributable to Owners of the Parent

6,344

7,722

Other
Total Extraordinary Loss―12―

Interim consolidated statement of comprehensive income
For the six months ended June 30, 2023 and 2024
(Unit: ¥millions)First six months of
FYE 12/2023(Jan. to June 2023)
12,749First six months of
FYE 12/2024(Jan. to June 2024)
15,827

Other securities valuation differences

981

-501

Deferred hedging profit/loss

-307

148

Foreign currency translation adjustments

4,975

7,092

98

-65

Net Profit
Other Comprehensive Income

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive Income

5,748

6,673

18,49722,500(Breakdown)Comprehensive income attributable to owners of the parent

8,995

9,910

Comprehensive income attributable to non-controlling interests

9,502

12,590―13―

(3) Notes regarding the interim consolidated financial statements(Segment Information, etc.)【Segment information】
I For the six months ended June 30, 2023 (01.01.2023-06.30.2023)
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

84,007

15,98625,044

2,161

651

127,851

2,192－

130,043

702

1,352

13

－

－

2,068

229

-2,297－84,70917,33925,0582,161

651

129,919

2,421-2,297130,043

13,001

1,026

7,597

-823

112

20,914-215-79

20,618Cryptoassets 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 (¥-79 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 impairment loss on fixed assets)
For the six months ended June 30, 2023, the Internet Finance segment recognized impairment
loss on fixed assets of ¥320 million.
II For the six months ended June 30, 2024 (01.01.2024-06.30.2024)
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

89,801

16,227

21,811

4,100

1,004

132,9443,536－

136,480

894

983

12

－

－

1,890

314

-2,204－90,696

17,21021,823

4,100

1,004

134,834

3,850-2,204

136,480

18,665

1,310

2,849

1,339

139

24,304-236-57

24,010

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 (¥-57 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 six months ended June 30, 2024 was ¥1,627 million.

―14―

(Notes regarding a 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, the Company
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 June 30, 2024 were ¥49,395 million and ¥7,756
million, respectively.
(Notes regarding significant changes in the scope of consolidation during the six months ended June30, 2024)
We acquired shares of Flatt Security Inc. and included it in the scope of consolidation from the six
months ended June 30, 2024.
(Additional information)(Transition to a holding company structure through a company split)
The Company resolved at its Board of Directors meeting held on June 25, 2024 to transfer its
Internet Infrastructure business (Domain, Hosting & cloud, and Provider) and Online Advertising &Media business (“Target Businesses”) to its consolidated subsidiary GMO AD Partners Inc. (“GMOAP”) through an absorption-type company split (“Absorption Split”), and an absorption split
agreement was signed on the same day.
As a result of the Absorption Split, the Company will transition to a holding company structure.
1. Purpose of the transition to a holding company structure through the Absorption Split(1) Strengthening the System for the AI & Robotics Revolution
Our Group, under the slogan “Becoming the No. 1 Corporate Group Pioneering the Futurewith AI,” is actively promoting the use of AI across the entire group quickly. We have established
GMO AI & Robotics Corporation, anticipating significant progress in the development of robots
highly compatible with AI. We are building a framework for the upcoming AI robotics revolution.
We believe that the transitioning to a holding company structure at this time will streamline thebusiness flow and create smoother synergies.
(2) Sustainable growth and maximization of corporate value for GMO-AP
GMO-AP is the core company of the internet advertising and media business. To respond to
rapid changes and intensifying competition in the Internet advertising market, we aim to develop
our business quickly by leveraging the strengths of both companies by integrating our Internet
infrastructure business with GMO-AP's internet advertising and media business. We havedetermined that these actions will lead to the sustainable growth and maximization of corporate
value for GMO-AP and the Company.
(3) Strengthening group management functions
By transitioning to a holding company structure, we will further strengthen our system forachieving sustainable growth, by focusing group management functions and further enabling
speedy management.
2. Summary of the Absorption Split(1) Schedule of the Absorption Split
Date of resolution of the Board of Directors meeting to approve
the Absorption Split Agreement

June 25, 2024

Date of signing of the Absorption Split Agreement

June 25, 2024

Effective date of the Absorption Split

January 1, 2025 (planned)―15―

(Note) As the Absorption Split falls under a simplified demerger as defined in Article 784,
Paragraph 2 of the Companies Act, a general meeting of shareholders will not be held by theCompany for the approval of the Absorption Split.
(2) Method of the Absorption Split
The Target Businesses operated by the Company will be transferred to GMO-AP through anabsorption-type demerger, with the Company as the demerged company and GMO-AP as the
successor company.
(3) Detail of the allotment pertaining to the Absorption Split
GMO-AP will allot and deliver 257,941,328 shares of GMO-AP’s common stock to theCompany as consideration for the Target Businesses.
3. Overview of the parties to the Absorption Split
The Demerged Company

The Successor Company(1) Name

GMO Internet Group, Inc

GMO AD Partners Inc.

(2) Location

26-1 Sakuragaoka-cho, Shibuyaku, Tokyo(3) Name and Title ofRepresentative

Masatoshi Kumagai, Founder,
Chairman and Group CEO

26-1 Sakuragaoka-cho, Shibuyaku, Tokyo
Makoto Hashiguchi
Representative Director,
President and CEO(4) Business Description

Internet Infrastructure
Online Advertising & MediaInternet Finance
Cryptoassets
Incubation(5) Capital¥5,000 million(6) Operating results and financial
condition for the most recent
fiscal year

FY 2023 (Consolidated)

Comprehensive online
Advertising and Media¥1,301 million
FY2023 (Consolidated)

Net assets¥172,839 million¥5,242 million

Total assets¥1,757,636 million¥10,847 million¥777.50¥320.98

Net sales¥258,643 million¥14,903 million

Operating profit (loss)¥42,471 million¥-25 million

Ordinary profit¥45,947 million¥180 million

Profit attributable to owners of theparent¥14,191 million¥40 million

Earnings per share¥133.33¥2.50

Dividend per share¥44.10¥1.30

Net assets per share

4. Overview of the business division to be split off
Business activities of the division to be split off
Internet Infrastructure business (Domain, Hosting & cloud, Provider) and Online Advertising &Media business
5. Overview of accounting treatments
We plan to account for the Absorption Split as a transaction under common control inaccordance with the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
January 16, 2019) and the “Implementation Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10,
January 16, 2019).

―16―

(Significant subsequent event)(Expansion of Acquisition Limit)
The Board of Directors of GMO Internet Group, Inc.(“GMO”) at its meeting held on August 8, 2024,
resolved that GMO will expand the acquisition limit for its own shares, although GMO had resolved at
its meeting held on February 13, 2024 that GMO would repurchase its own shares pursuant to Articleof 459-1 of the Japanese Companies Act and the company’s articles of incorporation.
(1) Reason for Change
To improve shareholder returns and capital efficiency(2) Description of change
Present(The resolution at the Board of Directors'
meeting on February 13, 2024)(i) Class of shares to beacquired(ii) Total number of shares tobe acquired(iii) Total amount ofrepurchase price(iv) Acquisition period(v) Acquisition method

Proposed articles

Shares of common stock

Shares of common stock

1.10 million shares (maximum)

2.90 million shares (maximum)

Up to 2,410 million yen

Up to 5,000 million yen

From February 14, 2024 to February
7, 2025
Market purchases through the Tokyo
Stock Exchange

From February 14, 2024 to
February 7, 2025
Market purchases through theTokyo Stock Exchange(Reference)(1) Total own shares repurchased in accordance with the resolution at the Board of Directors' meetingon February 13, 2024 (as of August 8, 2024)(i) Total number of shares repurchased: zero(ii) Total amount of repurchase price: zero―17―