Q4 FYE 12/22 Results Presentation - Q&AThe following is a summary of questions asked by attendees at the earnings presentation to investors heldon February 13, 2023. The questions are answered by Founder & Group CEO Masatoshi Kumagai, CFO
Masashi Yasuda, Tomitaka Ishimura.
●Consolidated Financial Results[Q1]
How do you evaluate Q4 results? You seem to have invested aggressively in each segment.
[A1]
We used our savings in the first half of 2022 to invest in Internet Infrastructure and Online
Advertising & Media businesses. While the existing business performed well, the securities
business in Thailand recorded the provision of allowance for doubtful accounts, which wasunexpected.
●Internet Infrastructure[Q2]
What is the impact on profit and loss of Ierae's joining the Group?
[A2]
Ierae started to have an impact on profit and loss in Q2. Although net sales were about 800
million yen in Q4, it pushed down the consolidated operating profit by more than 400 million yen,including the amortization of goodwill of 200 million yen, as investment costs preceded profits.
Please note that this figure is within the expectations at the time of Ierae's joining the Group.
Through the development of SaaS products, we will strive to create synergies over the mediumterm.
[Q3]
[A3]

Please tell us about the costs associated with sales expansion, the return, and when the customers
will have to start paying for the service.
We have not yet decided when the customers will have to start paying for the service and will
make a decision based on various KPIs.
We would like to extend the online diagnosis service to all 13 million existing customers and newcustomers. Online diagnosis service and GMO Sign, which have similar marketing strategies, areindispensable, and these are services that are unique to the company in the sense that we cancross-sell them to our existing customer base. If the customers pay for the service, it will impact
business performance significantly.

[Q4]
[A4]

Regarding adjustment costs to maintain your services, how much will the cost increase and how
will it be resolved in the future?
In 2022, there was an impact of several hundred million yen, mainly due to an increase in thepurchase cost of domains. In light of future increases in electricity bills and procurement costs ofservers, we have decided to introduce an adjustment cost to maintain our services. As a result, notonly net sales but also costs are expected to increase, so we believe that the impact on profits will
be insignificant.

●Internet Finance[Q5]
Is there a possibility that the securities business in Thailand will record an additional provision ofallowance for doubtful accounts? Please comment on the scale and accuracy.
[A5]
We have already accepted securities as collateral for the customers’ borrowing on margintransactions of approximately 7.9 billion yen at the end of the fiscal year and recorded theprovision of allowance for doubtful accounts of 3.5 billion yen. There is also the possibility thatthe provision of allowance for doubtful accounts will increase if the value of the securities
accepted as collateral plummets. We are striving to recover customers’ borrowing on margintransactions, taking legal measures.

●Other
[Q6]

[A6]

[Q7]
[A7]

Please tell us about the progress towards the air transportation revolution. There was also a press
release a few days ago about a trip to the stratosphere by a balloon-shaped spacecraft. Is thisrelated to the air transportation revolution?
We believe that we can put "flying cars" into practical use after the Expo 2025, Osaka, Kansai,
Japan, and our group will contribute to the safety of the sky through SSL security. Although weare considering commercializing a balloon-shaped spacecraft, our first objective is to experience
it.
What kind of internal discussions did you have about the change in the accounting period?
At most listed companies, the fiscal period ends in March, and we have started discussions basedon the disadvantages of having companies with different accounting periods within the group.
After that, we revised our plan to change the accounting period in order to appropriately respondto changes in the funding environment due to rapid changes in the interest rate environment.