GMO internet : 3rd Quarter Transcription

GMO Internet Group, Inc.

Q3 Financial Results Briefing for the Fiscal Year Ending December 2022

November 14, 2022

Event Summary

[Company Name]	GMO Internet Group, Inc.
[Company ID]	9449-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Q3 Financial Results Briefing for the Fiscal Year Ending December 2022
[Fiscal Period]	FY2022 Q3
[Date]	November 14, 2022
[Number of Pages]	41
[Time]	15:30 - 16:03
	(Total: 33 minutes, Presentation: 33 minutes)
[Venue]	Webcast
[Venue Size]
[Participants]
[Number of Speakers]	2
	Masashi Yasuda	Director, Executive Vice President and Group
		CFO, Deputy to Group CEO
	Noriko Inagaki	Group Executive Officer, General Manager of
		Group Financial Department

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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Presentation

Moderator: Hello, everyone. Thank you very much for participating in GMO Internet Group, Inc.'s Q3 financial results presentation today.

I will introduce you to the attendees of today's presentation. Group Vice President and CFO, Masashi Yasuda; and Group Executive Officer and General Manager of Group Financial Department, Noriko Inagaki, will be present at this quarterly presentation.

Today, I will provide an overview of the financial results, followed by a question-and-answer session.

Before the presentation, I will explain the changes to the recording rules.

The accounting standard for revenue recognition has been applied from the current fiscal year, resulting in a change in rules for recording net sales.

In this material, figures before the rule change are shown as the old standard, whereas those after the implementation as the new standard. Our approach to net sales and operating income is described here.

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Now, to accurately convey the situation of the business on a YoY comparison basis, we will use the old standard as the same yardstick and compare the affected segments, namely consolidated, infrastructure, and online advertising & media.

A comparison of the old and new standards can be found in the appendix. In addition, comparative calculations are made in old and new standards for segments that were minimally affected.

Our CFO, Yasuda, will now explain the situation.

Yasuda: My name is Yasuda, and I'm the CFO of GMO Internet Group. Thank you for participating in the presentation of our financial results for Q3 of the fiscal year ending December 31, 2022. I am happy to meet you all.

Since our fiscal year ends in December, I will explain our financial results for the period from July to September. Today's agenda is as shown.

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First, here is the summary of the financial results.

The figures based on the old standard, highlighted in blue in the center, indicate sales of JPY65.2 billion, operating income of JPY6.8 billion, and ordinary income of JPY8.7 billion. As for final profit, there was a net loss of JPY1.8 billion due to an extraordinary loss on GMO Aozora Net Bank shares.

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Japan	050.5212.7790	North America	1.800.674.8375
Tollfree	0120.966.744	Email Support	[e-mail]

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