【IR】GMO Internet Group Strategy 2016 Q1 Summary

The following is an overview of the 1st Quarter (January to March) FY12/2016.
For more details please refer to the following.

Results presentation materials (here)

Results presentation video(Under preparation)

(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy

■Financial Overview
●Executive Summary: Q1 FY2016
Net Sales was up 1.8% to JPY 33.1 billion, and operating profit was down 5.0% YoY to JPY 3.65 billion. The graph shows increase and decrease YoY.
It is mixed results at segment level but overall results fall above our expectation.
Contributed by strong results driven by existing business as payment,
our operating profits grew significantly.
Now we are looking forward to seeing results from the startup of ”.shop” and profit growth in ”minne”.

●This graph represents consolidated quarterly earnings.
The darker blue represents Net Sales and the lighter blue is operating profit.
Profitability improved YoY as a result of strategic investment.

■Internet Infrastructure
●In the Internet Infrastructure segment, revenue and profit were up significantly in Q1 YoY. This quarter costs included JPY440 million in promotion of minne. You can easily see the strength of our Internet Infrastructure.

■Internet Securities segment.
●Both Net Sales and profit were down QoQ as well as YoY.
With a spike in trading volume due to increased volatility in FX, cover costs caused a temporary rise in costs and profitability decreased.
However we have since seen a return to calmer trading levels and pressure on profits has diminished.

●For four consecutive years since 2012, we have been the global number one in FX. Our system, development, maintenance and operation are all done in-house, our service is well-reputed among users.

■Online Advertising & Media segment.
●In Q1 Online Advertising & Media segment, Net Sales was down 0.9 % and profit was down 20.4% from the previous year.
Net sales were level with the previous year resulted in strong results.
While we captured advertising demand, profit was down
due to continued investment in-housed developed products.

■Mobile entertainment segment.
●Although we have been streamlining external titles and have
brought operations in-house, building expertise and bringing costs under control, we haven’t produced a new hit title so far.
Under the restructure project “GROW”, we restructure the organization.
We are now making a final effort to produce a new hit title.

Please refer to Masatoshi Kumagai talks about GMO Internet Group in 2016 Overview of the group’s current position and outline of strategy going forward for shareholder returns ratio and important theme.

We appreciate your ongoing support of GMO Internet Group.

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(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy