1st Quarter Fiscal Year 215 Results Presentation Supplementary Materials April 3, 215 1
1. GMO Internet Group Significant Group Companies 115 Group Companies (84 consolidated, 23 non-consolidated, 2 equity method affiliates, 6 non-equity method affiliates) 2 GMO Payment Gateway, Inc. (Western Japan Sales Office) GMO Solution Partner, Inc. (Osaka Sales Office) GMO CLOUD West, Inc. GMO DigiRock, Inc. GMO Business Support, Inc. GMO Papebo, Inc. (Fukuoka Branch) GMO DIGITAL Lab, Inc. CMT, Inc. Internet Infrastructure GMO Internet, Inc. (TSE:9449) GMO CLOUD, Inc. (TSE:3788) GMO Pepabo Inc. (JASDAQ: 3633) GMO Payment Gateway, Inc. (TSE:3769) GlobalSign K.K. GMO Fast Translation, Inc. GMO MAKESHOP Co. Ltd. GMO Commerce, Inc. GMO Epsilon, Inc. GMO Payment Services, Inc. GMO Registry, Inc. GMO System Consulting, Inc. GMO Creators Network, Inc. (and other companies) (UK) GMO GlobalSign Ltd. GMO CLICK UK LTD (Belgium) GlobalSign NV (CA) (Finland) Ubisecure Solutions, Inc. (Vietnam) GMO RunSystem Corporation GMO Vietnam Lab Center Co. Ltd. (Singapore) GMO Internet Pte. Ltd. GMO CLOUD Pte. Ltd. GMO GlobalSign Pte. Ltd. GMO Payment Gateway Pte. Ltd. (Myanmar) GMO ACE Company Limited. Philipines GMO GlobalSign Inc. Online Advertising & Media GMO AD Partners, Inc. (JASDAQ:4784) GMO NIKKO, Inc. GMO Mobile, Inc. GMO Research, Inc. (MOTHERS: 3695). GMO Media, Inc. GMO Solution Partner, Inc. JWord, Inc. GMO TECH, Inc. (MOTHERS: 626) Booklog, Inc. GMO Innovators, Inc. GMO Kumapon, Inc. (and other companies) GlobalSign China GMO CLICK HONG KONG LTD GMO GameCenter Korea, Inc. Internet Securities GMO CLICK Holdings, Inc. (JASDAQ:7177) GMO CLICK Securities, Inc. FX PRIME by GMO Corporation Incubation GMO Venture Partners, Inc. Mobile Entertainment GMO GameCenter, Inc. GMO GamePot, Inc. REGXE, Inc. (and other companies) (US) GMO CLOUD AMERICA, Inc. GMO GlobalSign, Inc. GMO GameCenter USA, Inc. Listed Company (total 8 companies)
3 1. GMO Internet Group Group News 1/27 GMO Commerce launches GMO Check In, an affiliate marketing service using Beacon 1/29 2/4 GMO CLOUD launches Energy Monitor, a SaaS based solar energy monitoring service and the company s first Energy Management business product. GMO AppsCloud wins top award in GameBusiness.jp Game Cloud Awards 215 2/14 3/4 Japan s largest online handmade market, minne launches nationwide television ad campaign GMO CLICK HD launches FX service in the UK service under Z.com, the GMO Internet Group global brand. brand.com 3/1 GMO CLOUD becomes Ari partner, selling the On The Go Platforms gesture recognition software in Japan and Asia 3/19 3/2 Russia s number one domain and hosting service REG.RU to include GlobalSign SSL as a standard feature with all hosting products Online handmade market, minne surpasses 1 million product registrations and 1, seller registrations
4 1. GMO Internet Group Group News 3/26 GMO Payment Gateway becomes first payment company to offer chargeback insurance service 3/3 GMO-PG to provide payment processing service for all tax payments to the Tokyo metropolitan government 3/31 SEO Airlines bygmo adds Google mobile-friendly optimization plan 4/1 GMO CLICK HD is listed on Tokyo Stock Exchange JASDAQ market (7177) 4/1 GMO MOBILE to bring worldwide hit game Goat Simulator to au smartpass 4/1 4/2 In 214 MakeShop achieves the industry s highest transaction volume for the third consecutive year GMO Pallet enables smartphone payment and customer data management on tablet POS system. 4/7 GMO Research partners with MRT to launch medical industry research service
1. GMO Internet Group Listed Group Companies (3 mths to Mar) (JPY millions) Stock Code TSE 1st Section 3788 TSE 1st Section 3769 JASDAQ Standard 4784 JASDAQ Standard 3633 JASDAQ Standard 7177 TSE MOTHERS 3695 TSE MOTHERS 626 Fiscal Term Q1 FYE 12/215 Q2 FYE 9/215 Q1 FYE 12/215 Q1 FYE 12/215 Q4 FYE 3/215 Q1 FYE 12/215 Q1 FYE 12/215 Net Sales 2,783 2,24 8,221 1,282 7,522 66 1,83 Operating Profit 125 762 199-12 2,447 52 145 Ordinary Profit 191 772 21-121 2,441 46 145 Net Profit 79 461 44-98 1,233 28 88 *Compiled from each companies quarterly P/L statements 5
1. GMO Internet Group Revenue Breakdown by Segment Q1/214 Q2/214 Q3/214 Q4/214 Q1/215 Internet Infrastructure Internet provider 1,629 1,857 2,67 2,94 2,372 Domain 1,428 1,421 1,351 1,374 1,532 Hosting & cloud 3,422 3,378 3,418 3,436 3,482 Ecommer solutions 1,192 1,123 1,232 1,163 1,344 Security 83 91 724 1,48 998 Payment 1,797 1,774 1,833 1,896 2,152 Other 966 976 888 978 1,156 Segment total 11,24 11,434 11,515 11,991 13,4 Online Advertising & Media Internet media 3,29 3,23 3,45 3,139 3,516 Online advertising 5,59 4,696 4,96 5,739 7,439 Internet research, other 569 514 515 619 647 Segment total 9,17 8,234 8,467 9,498 11,64 Internet Securities Internet securities 5,553 4,792 5,657 6,986 7,522 Segment total 5,553 4,792 5,657 6,986 7,522 Mobile Entertainment Mobile entertainment 1,71 1,659 1,541 1,485 1,279 Segment total 1,71 1,659 1,541 1,485 1,279 Incubation Incubation 16 4 1,261 487 99 Segment total 16 4 1,261 487 99 Internal Transactions Adjustment (62) (698) (989) (99) (964) Consolidated Net Sales 27,26 25,427 27,455 29,458 32,583 6
1. GMO Internet Group Cost Composition (Consolidated) (JPY millions) *Depreciation of business rights, previously included in depreciation and leases is now presented under goodwill depreciation 7
2. Internet Infrastructure Domain Registration Revenue Registrations (JPY millions) 6, +7.3% (3 mths to Mar) (1s) 5, +11.9% (3 mths to Mar) 5, 1,374 4, 4, 1,351 3, 3, 4,889 2, 4,37 2, 1,421 Q4 1, 1,428 1,532 Q3 Q3 1, 214 215 Q1 Q1/214 Q1/215 8
2. Internet Infrastructure New Domains & Domain Renewals New Domain Registrations Renewals 2,5, 2,5, 2,, 2,, 1,5, 1,5, 1,, 1,, 5, 5, 211 212 213 214 215 Q4 353,548 43,68 514,376 616,772 Q3 327,555 371,934 485,626 58,649 Q2 217,449 48,557 494,715 542,212 Q1 217,983 427,949 45,643 518,938 49,434 211 212 213 214 215 Q4 357,347 459,714 466,843 59,793 Q3 339,8 446,897 453,796 59,995 Q2 19,282 475,418 467,533 494,855 Q1 25,82 415,947 463,674 545,661 586,147 9
2. Internet Infrastructure Hosting & Cloud Performance Revenue Contracts (JPY millions) 1.8% (1s) +3.6% (3 mths to Mar) (3 mths to Mar) 1
2. Internet Infrastructure Ecommerce Solutions Performance (JPY millions) 5, Revenue +12.7% (3mths to Mar) 3, Contracts +5.6% (3mths to Mar) 25, 4, 1,163 2, 3, 1,232 15, 1, 2, 1,123 Q4 Q3 5, 1, 1,192 1,344 214 215 Q2 Q1 211 212 213 214 215 4Q 54,694 63,8 69,43 71,985 3Q 52,269 62,499 68,649 71,676 2Q 5,369 59,33 67,854 7,369 1Q 49,11 57,62 66,411 69,314 73,216 11
2. Internet Infrastructure Ecommerce Business Parameters Total Stores 56, 17, 73, Transaction Volume (Quarterly) No. of Transactions (Quarterly) JPY25.1B JPY31.2B JPY 56.3B 2.29M 1.9M 4.19M (As of March 215) 12
2. Internet Infrastructure Ecommerce Business Parameters tetote Creema iichi Sellers 12, 31, Approx. 42, 14, Products 1.2M 75, 91, 27, Operator GMO Pepabo OC Island Creema Iichi Item Limit none none none 5 Monthly Fee free free free free Commission (ex. Tax) 1% 12% 8% -12% 2% Buyer Costs none Processing fee for payments under JPY1,5 none none Launched 1/212 6/211 6/21 7/211 App ios 1/212 Android 11/213 no ios 14/211 Android 1/215 no *Compiled by GMO Pepabo (as of 3/215) 13
2. Internet Infrastructure Security Performance Revenue (JPY millions) +24.3% (3mths to Mar) Certificates Issued (cumulative/domestic only) +3.4% (3mths to Mar) 14
2. Internet Infrastructure Payment Performance (JPY millions) Revenue Ordinary Profit +19.6% (JPY millions) +2.5% (3mths to Mar) (3mths to Mar) *Based on GMO Payment Gateway, Inc. disclosures 15
2. Internet Infrastructure Payment Processing Key Indicators Steady growth in merchants, transaction volume and transactions. Merchants: 54,47 Transaction volume: approx. JPY38 billion, No. of Transactions: 198 million (JPY1 millions) 4, Significant new client (1,s) 2, 6, 3, 18, 5, 4, 3, 2, 1, Merchant revenue as a percentage of total transaction volume as of 11/12 Approx. 2% Merchant revenue as a percentage of total transaction volume: Approx. 3% 16, 14, 12, 1, 8, 2, 6, 4, 1, 2, 9/3 9/6 9/9 9/12 1/3 1/6 1/9 1/12 11/3 11/6 11/9 11/12 12/3 12/6 12/9 12/12 13/3 13/6 13/9 13/12 14/3 14/6 14/9 14/12 15/3 Recurring Online Merchants Transaction Volume 16 * Merchants is number of merchants at the end of the quarter. Online and Recurring show quarterly results. Based on GMO-PG materials.
3. Internet Securities FX Accounts & Trading Volume (GMO CLICK Securities, FX Prime bygmo) No. of Accounts (1,s) 6 Trading Volume (JPY trillions) 18 153 16 5 4 115 115 134 122 122 12 124 14 12 3 2 96 1 85 67 63 56 63 88 78 73 66 57 46 42 52 95 1 8 6 4 1 2 13/4 13/5 13/6 13/7 13/8 13/9 13/1 *Compiled based on GMO CLICK and FX Prime bygmo data 13/1 1 13/1 2 14/1 14/2 14/3 14/4 14/5 14/6 14/7 14/8 14/9 14/1 Accounts (CLICK/Prime) Volume (CLICK/Prime) 14/1 1 14/1 2 15/ 1 15/ 15/ 2 3 Trading Accounts 423 432 439 445 45 455 459 463 467 472 477 481 485 49 495 52 59 516 522 528 534 541 547 552 Monthly Trading Volume 96 1 115 115 85 67 63 56 63 88 78 73 66 57 46 42 52 95 122 122 134 153 12 124 17 16
3. Internet Securities Securities Accounts & Trading Volume (GMO CLICK Securities) No. of Accounts (1,s) Trading Volume (JPY millions) 18 17 *Compiled based on GMO CLICK and FX Prime bygmo data Accounts (CLICK) Volume (CLICK)