【IR】GMO Internet Group Strategy 2014 Q4 Summary

The following is an overview of our 2014 fiscal year. For more details please refer to the following.

Results presentation materials(here)
Results presentation video (here)

(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy

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■Financial Overview
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●In fiscal year 2014 we generated JPY100 billion for the first time since the company was established. From Net sales through to net profit, all forecasts were achieved.

●The graph below shows quarterly results over the past three years.Net sales and profit both reached record highs in Q4.

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■Group News
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●On December 11, 2014, GMO TECH, Inc. was listed on the Tokyo Stock Exchange MOTHERS Market (6026), becoming the eigth publicly listed company in the Group.

●On October 31 we announced a reorganization in the Internet Securities segment. We are now in the evaluation stage and on April 1, 2015 FX Prime by GMO will be delisted and GMO CLICK HD will be listed in its place.

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■Internet Infrastructure
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●In the fourth quarter Internet Infrastructure revenue grew 20.5% while profit dropped 5.1% as a result of an increase in goodwill, and television advertising of new domains. I would note that these are both temporary costs
and momentum in the segment remains strong.

●Number of contracts in Internet infrastructure reached 5.79 million. This represents ongoing annual growth of around 700,000 new contracts a year. The majority of contracts in this segment represent recurring revenue, the foundation for stable, long-term growth.

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■Online Advertising & Media
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● In Online Advertising & Media, revenue grew 18.1% while profit rose 32.8%. Products performing well in this segment are ad network products including smartphone based reward and affiliate advertising products.

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■Internet Securities
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● In the fourth quarter, Internet Securities revenue increased 38% and profit increased 108%. With high levels of FX trading activity, Q4 was a record quarter for in this segment.

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■Mobile Entertainment
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●In Mobile Entertainment, we continued to shrink losses and by the end of December we were at breakeven point on a monthly basis. Going forward we we plan to maintain a controlled cost structure while aiming to produce a hit title.

We appreciate your ongoing support of GMO Internet Group.

Internet for everyone.

(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy