Fiscal Year 2007 Results Presentation

(1)

h t t p : / / w w w . g m o . j p / e n

I n t e r n e t f o r E v e r y o n e

Fiscal Year 2007

Results Presentation

February 14, 2008

GMO Internet, Inc.

(TSE First Section: 9449)

◆

(2)

2

TSE Stock Code: 9449

1.

11. .

1. GMO Internet GroupGMO Internet GroupGMO Internet GroupGMO Internet Group 2

22

2. Internet Infrastructure. Internet Infrastructure. Internet Infrastructure. Internet Infrastructure

3. 3. 3.

3. Internet MediaInternet MediaInternet MediaInternet Media

1. GMO Internet Group

11. GMO Internet Group. GMO Internet Group

1. GMO Internet Group

(3)

3

1.

11. .

22

3. 3. 3.

100.0 (71.4) (19.8) GMO Venture Partners, Inc.

GMO Venture Partners Investment Limited Partnership

Blog Business Fund Investment Limited Partnership

100.0 (71.4) (19.8) GMO Venture Partners, Inc.

GMO Venture Partners Investment Limited Partnership

Blog Business Fund Investment Limited Partnership

Internet

Finance

43.0 78.2 100.0 (86.3) (100.0) (90.0) 51.0 62.7 (100.0) 100.0 100.0 51.0 (100.0) Parent Company 51.3 (88.2) (100.0) (100.0) (100.0) 92.5 (51.2) 69.6 59.6 52.3 (100.0) (100.0) 58.7 (100.0) (100.0) 76.0 70.0 Proportion of Voting Rights (%) Magclick, Inc. GMO Research, Inc. GMO Media Holdings, Inc. GMO Media, Inc. GMO Games Korea, Inc. GMO San Planning, Inc. Tea Cup Communication Ltd. JWord, Inc.

GMO Ad Networks, Inc. GMO Games, Inc. BOM, Inc. GMO Marketing, Inc. GMO Mobile, Inc. GMO Internet, Inc. GMO Hosting & Security, Inc GlobalSign K..K.

GlobalSign Ltd. (England) GlobalSign NV (Belgium) GlobalSign, Inc. (US) Grandsphere Co. Ltd. Hosting & Security, INC. (US) INTERNET Number Corporation paperboy & co.

GMO Payment Gateway, Inc. @YMC Corporation

ＧSS Corporation MakeShop, Inc. Epsilon, Inc. Mighty Server, Inc. GMO Solution Partner, Inc. Global Web Co. Ltd.

Company Name

2007 Fiscal Year 4th Quarter 2007 Fiscal Year 4th Quarter 2007 Fiscal Year 4th Quarter 2007 Fiscal Year 4th Quarter

Notes Notes Notes Notes 2007 Fiscal Year 3rd Quarter

2007 Fiscal Year 3rd Quarter 2007 Fiscal Year 3rd Quarter 2007 Fiscal Year 3rd Quarter

Magclick, Inc. GMO Research, Inc. GMO Media Holdings, Inc. GMO Media, Inc. NETCLUE Co. Ltd. （Korea）

GMO San Planning, Inc. Tea Cup Communication Ltd. JWord, Inc.

GMO Ad Networks, Inc. GMO Games, Inc. BOM, Inc. GMO Marketing, Inc. GMO Mobile, Inc. GMO Internet, Inc. GMO Hosting & Security, Inc GlobalSign K..K.

GlobalSign Ltd. (England) GlobalSign NV (Belgium) GlobalSign, Inc. (US) Grandsphere Co. Ltd. Hosting & Security, INC. (US) INTERNET Number Corporation paperboy & co.

GMO Payment Gateway, Inc. @YMC Corporation

ＧSS Corporation MakeShop, Inc. Epsilon, Inc. Mighty Server, Inc. GMO Solution Partner, Inc. Global Web Co. Ltd.

Company Name Name Change New 43.0 78.2 100.0 (86.3) (100.0) (90.0) 51.0 62.7 (100.0) 100.0 100.0 51.0 (100.0)

Internet

Advertising

Support

(Media)

Internet Use

Support

(Infrastructure)

Business

Segment

Parent Company 51.3 (88.2) (100.0) (100.0) (100.0) 92.5 (51.2) 69.6 59.6 52.3 (100.0) (100.0) 58.7 (100.0) (100.0) 76.0 70.0 Proportion of Voting Rights (%) New

FY2007 4Q Financial Statement

(4)

4

1.

11. .

22

3. 3. 3.

-6,735

6,707

7,077

Loans & Credit

-469

246

1

32

Internet Securities

2

1

0

4

1

0

Other

2

22

2

1

11

1

7,204

6,957

7,220

Segment Total

-56

-116

-105

-131

-229

Adjustment for internal

transactions

37

1

3

1

8

283

279

33

1

Other

1

,735

1

,352

1

,365

1

,583

1

,764

Internet Advertising Agencies

523

476

555

54

1

437

Domain

1

4,90

1

4,90

1

4,90

1

-

---174

174

3,387

1

,52

1

4,467

1

45

450

2

1

6

638

2,043

536

2006/4Q

1

5,059

1

5,059

1

5,059

1

5,059

-

---88

88

3,426

1

,694

4,764

1

32

497

288

733

2,049

52

1

200

2007

77

7/

/

1

Q

1

4,970

1

4,970

1

4,970

1

4,970

-

---94

94

3,206

1

,662

4,653

1

05

479

239

688

2,097

488

200

2007

77

7/

//

/2

22

2Q

Q

7,685

-

---57

57

3,

1

78

3,

1

78

3,

1

78

1

,623

4,562

111

449

209

74

1

2,

1

02

472

200

2007

77

7/3Q

/3Q

8,60

1

8,60

1

8,60

1

8,60

1

-

---7

77

73

33

3

3,783

1

, 73

1

4,888

1

35

500

223

957

2,088

459

200

2007

77

7/

//

/4

44

4Q

Q

Payment Processing

Other

Consolidated Sales

Adjustment for internal

transactions

◆

Internet Finance

◆

Segment Total

Internet Media & Search Media

◆

Internet Advertising Support (Media)

◆

Segment Total

Security

Web Development & EC Solutions

Web Hosting

Access Provider

◆

Internet Use Support (Infrastructure)

◆

Business

_(¥millions)

Sales Breakdown Under New Business Classification

(5)

5

TSE Stock Code: 9449

1.

11. .

22

3. 3. 3.

1

,

1

24

1

,009

1

,092

997

9

1

9

JWord

1

75

1

48

1

4

1

35

2

1

4

Online Games

20

25

1

7

5

1

53

Corporate Communications

399

345

269

282

3

1

7

E-Commerce Support

2

1

7,204

6,957

7,220

Internet Finance

2

22

2

1

11

1

7,204

6,957

7,220

Segment Total

-56

-116

-105

-131

-229

Adjustment for internal transactions

1

97

1

69

1

42

1

43

11

6

Other

1

,735

1

,352

1

,365

1

,583

1

,764

Internet Advertising Sales

523

476

555

54

1

437

Domain

1

4,90

1

4,90

1

4,90

1

4,90

1

-

---174

174

3,387

60

1

4,467

9

1

450

2

1

6

32

1

2,043

536

2006/4Q

1

5,059

1

5,059

1

5,059

1

5,059

-

---88

88

3,426

697

4,764

8

1

497

288

45

1

2,049

52

1

200

2007

77

7/

/

1

Q

1

4,970

1

4,970

1

4,970

-

---94

94

3,206

570

4,653

87

479

239

4

1

8

2,097

488

200

2007

77

7/

//

/2

22

2Q

Q

7,685

-

---57

57

3,

1

78

3,

1

78

3,

1

78

3,

1

78

6

1

4

4,562

85

449

209

395

2,

1

02

472

200

2007

77

7/

//

/3

33

3Q

Q

8,60

1

8,60

1

8,60

1

8,60

1

-

---7

77

73

33

3

3,783

606

4,888

11

5

500

223

557

2,088

459

200

2007

77

7/

//

/4

44

4Q

Q

Payment Processing

Other

Consolidated Sales

Adjustment for internal transactions

◆

Internet Finance

◆

Segment Total

Internet Media Construction

◆

Internet Advertising Support (Media)

◆

Segment Total

Security

Web Construction

Web Hosting

Access Provider

◆

Internet Use Support (Infrastructure)

◆

Business

(¥millions)

Sales Breakdown Under Former Business Classification

(6)

6

1.

11. .

22

3. 3. 3.

0

5,000

1

0,000

1

5,000

20,000

25,000

30,000

Business Expenses + SGA Total 9,620 10,732 10,301 12,360 13,176 13,116 27,408 6,958 7,754

Human Resources 2,019 2,138 2,245 2,441 2,753 2,700 2,767 2,065 2,203

Advertising and Promotion Costs 688 666 620 897 1,049 802 573 427 388

Depreciation and Rental Costs 710 731 753 821 910 916 771 517 458

Outsourcing / Sub-contracting Expenses 839 977 768 792 935 1,107 1,254 825 770

Communication Costs 213 211 221 239 297 254 243 133 115

Rent 421 400 431 465 514 508 519 437 471

Comission Paid 653 541 626 706 780 806 853 609 698

Media Costs 1,222 1,180 827 849 1,054 966 836 810 1,141

Finance Expenses / Bad Debt Costs 1,452 2,474 2,283 3,283 2,431 3,020 17,380 15 43

Consolidated Adjustment Account Depreciation 326 333 333 414 630 545 555 208 184

Other 1,071 1,076 1,190 1,447 1,819 1,487 1,653 904 1,279

05/4Q 06/1Q 06/2Q 06/3Q 06/4Q 07/1Q 07/2Q 07/3Q 07/4Q

(¥millions) 1. GMO Internet Group

Changes in Costs and Cost Composition (Consolidated)

(7)

7

TSE Stock Code: 9449

1.

11. .

22

3. 3. 3.

2. Internet Infrastructure 2. Internet Infrastructure2. Internet Infrastructure 2. Internet Infrastructure

2.

Internet Use Support

(Infrastructure)

(8)

8

1.

11. .

22

3. 3. 3.

0

1

00

200

300

400

500

600

0

2,000

4,000

6,000

8,000

1

0,000

Sales 437 541 555 476 523

Average Unit Price /per month

7,038 6,814 6,474 6,240 6,640 Average Unit Price for

Individuals 1,605 1,540 1,343 1,467 1,637 06 4Q 07 1Q 07 2Q 07 3Q 07 4Q

0

1

00

200

300

400

500

600

700

800

0

1

0

20

30

40

50

60

70

80

90

1

00

11

0

1

20

1

30

1

40

Cumulative Active

Domains

585

6

1

8

653

685

7

1

8

Registrations +

Renewals

1

0

1

22

1

35

1

24

1

28

Total Cumulative

Registrations

899

954

1

,0

1

9

1

,078

1

,

1

36

06 4Q 07

1

Q 07 2Q 07 3Q 07 4Q

2. Internet Infrastructure 2. Internet Infrastructure2. Internet Infrastructure 2. Internet Infrastructure

Domain Registration

Sales

Domain Registrations

sales

(¥millions) unit price_(¥) active registered domains(thousands) registrations + renewals(thousands)

■Registrations + Renewals Active Registered Domains ▲Average Unit Price for

Individuals Sales ■

Average Unit Price/Month

(9)

9

TSE Stock Code: 9449

1.

11. .

22

3. 3. 3.

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 260,000 280,000 300,000 4Q 14,314 17,583 34,702 49,290 69,400 3Q 11,939 15,694 32,056 47,028 65,603 2Q 19,646 19,970 31,609 43,693 70,630 1Q 14,162 21,506 33,606 42,000 67,826 2003 2004 2005 2006 2007

3 Q

４

Q

2

22

2 Q

Q

1

11

1

Q

3 Q

４

Q

2

22

2 Q

Q

1

11

1

Q

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 4Q 17,471 32,098 43,070 51,353 58,631 3Q 16,854 27,465 40,454 49,714 58,615 2Q 19,811 26,707 39,270 45,631 65,066 1Q 17,638 27,999 37,197 43,833 54,837 2003 2004 2005 2006 2007

3 Q

４

Q

2

22

2 Q

Q

1

11

1

Q

3 Q

４

Q

2

22

2 Q

Q

1

11

1

Q

2. Internet Infrastructure

2. Internet Infrastructure2. Internet Infrastructure 2. Internet Infrastructure

New Domains and Domain Renewals

Renewals

(10)

10

1.

11. .

22

3. 3. 3.

0 50 100 150 200 250 300 350 400 Individual Contracts 208 216 224 232 240 Corporate Contracts 116 117 117 117 117 06 4Q 07 1Q 07 2Q 07 3Q 07 4Q 0 500 1,000 1,500 2,000 0 2,000 4,000 6,000 Sales 2,043 2,049 2,097 2,102 2088

Average Unit Price 5,195 5,179 5,278 5,246 5,187 Average Unit Price for

Individuals

362 364 367 373 369

06 4Q 07 1Q 07 2Q 07 3Q 07 4Q 2. Internet Infrastructure

2. Internet Infrastructure2. Internet Infrastructure 2. Internet Infrastructure

We

Web Hosting

b Hosting

sales

(¥millions)

Sales

unit price (¥) (thousands)

Contracts

Individual Customer Contracts

Corporate Contracts

▲ Average Unit Price for Individuals Sales ■ Average Unit Price/Month

(11)

11

1.

11. .

22

3. 3. 3.

3. Internet Media3 Internet MediaInternet MediaInternet Media

33

3.... Internet Internet Internet Internet MediaMediaMediaMedia

2.

Internet

Advertising

Support

((((

(12)

12

TSE Stock Code: 9449

1.

11. .

22

3. 3. 3.

0

200

400

600

800

1

,000

1

,200

1

,400

1

,600

1

,800

2,000

Total

1

,893

1

,7

1

3

1

,48

1

,420

1

85

1

Recruitment Advertising

960

78

1

636

587

924

Advertising

932

845

833

926

06/4Q

07/

1

Q

07/2Q

07/3Q

07/4Q

(¥millions) (¥millions)

0

20

40

60

80

1

00

1

20

1

40

1

60

1

80

200

Total

86

1

69

1

00

4

1

75

86

Recruitment Advertising

35

1

0

1

72

1

8

33

78

Advertising

5

1

68

28

23

42

8

06/3Q

06/4Q

07/

1

Q

07/2Q

07/3Q

07/4Q

3 33

3.... Internet Internet Internet Internet MediaMediaMediaMedia

Internet Advertising Agencies

Internet Advertising Agency

Sales

Internet Advertising Agency

Ordinary Profit