Fiscal Year 2009 Results PresentationFiscal Year 2009 Results Presentation February 10, 2010 GMO Internet, Inc. (TSE First Section: 9449 ) Supplementary Materials Internet for Everyone

Fiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results PresentationFiscal Year 2009 Results Presentation

February 10, 2010

GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.GMO Internet, Inc.

(TSE First Section: 9449)

◆Supplementary Materials◆

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

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

1.GMO Internet Group1.GMO Internet Group1.GMO Internet Group1.GMO Internet Group

2.Web Infrastructure 2.Web Infrastructure 2.Web Infrastructure 2.Web Infrastructure & Ecommerce& Ecommerce& Ecommerce& Ecommerce

3.Internet Media3.Internet Media3.Internet Media3.Internet Media

4.Business Model 4.Business Model 4.Business Model 4.Business Model & Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy


TSE 1st Section: 9449

Copyright (C) 2010 GMO Internet, Inc. All Rights Reserved.

2

1.GMO Internet Group1.GMO Internet Group





2009 Fiscal Year 3rd Quarter2009 Fiscal Year 3rd Quarter2009 Fiscal Year 3rd Quarter2009 Fiscal Year 3rd Quarter 2009 Fiscal Year 4th Quarter2009 Fiscal Year 4th Quarter2009 Fiscal Year 4th Quarter2009 Fiscal Year 4th Quarter

NotesBusiness Business Business Business SegmentSegmentSegmentSegment

Company NameProportion of

Voting Rights (%)Company Name

Proportion of Voting Rights

(%)

Web Web Web Web InfrastructureInfrastructureInfrastructureInfrastructure& Ecommerce& Ecommerce& Ecommerce& Ecommerce

GMO Internet, Inc.

GMO Hosting & Security, Inc

GlobalSign K.K.

GlobalSign Ltd. (England)

GlobalSign NV (Belgium)

GlobalSign, Inc. (US)

Toriton, Inc.

Hosting & Security, INC. (US)

@YMC Corporation

Global Web Co. Ltd.

GMO Managed Hosting, Inc.

GMO Payment Gateway, Inc.

Epsilon, Inc. paperboy & co. Inc.

GMO MAKESHOP Co., Ltd

GMO System Consulting, Inc.

GMO DIGITAL DISTRIBUTION, Inc.

GMO Solution Partner, Inc.

Parent

51.3

(89.8)

(100.0)

(100.0)(100.0)(100.0)

(51.2)

(100.0)

(70.0)

(100.0)

52.3

(100.0)

57.4

58.7

92.5

(90.9)

GMO Internet, Inc.

GMO Hosting & Security, Inc

GlobalSign K.K.

GlobalSign Ltd. (England)

GlobalSign NV (Belgium)


Toriton, Inc.

Hosting & Security, INC. (US)

@YMC Corporation

GMO Fast Translation, Inc.



Epsilon, Inc. paperboy & co. Inc.

GMO MAKESHOP Co., Ltd




Parent

51.3

(89.8)

(100.0)

(100.0)

(100.0)

(100.0)

(51.2)

(100.0)

(70.0)

(100.0)

52.3

(100.0)

57.3

58.7

92.5

(90.9)

76.0

1. GMO Internet Group1. GMO Internet Group1. GMO Internet Group1. GMO Internet Group

FY2009 FY2009 FY2009 FY2009 FY2009 FY2009 FY2009 FY2009 4th Quarter 4th Quarter 4th Quarter 4th Quarter 4th Quarter 4th Quarter 4th Quarter 4th Quarter –––––––– Scope of ConsolidationScope of ConsolidationScope of ConsolidationScope of ConsolidationScope of ConsolidationScope of ConsolidationScope of ConsolidationScope of Consolidation



3


INTERNET Number Corporation

GSS Corporation.

GMO Creators Network, Inc.

76.0

(100.0 (100.0)

66.7


INTERNET Number CorporationGMO Creators Network, Inc. Communication Telecom, Inc. CMT, Inc.

76.0

(100.0)

66.7

（100.0）

（100.0）

Internet MediaInternet MediaInternet MediaInternet Media

GMO AD Holdings, Inc.GMO AD Partners Inc.

GMO Mobile, Inc.

Seed Technology, Inc.

NIKKO, Inc.

GMO Research, Inc GMO Media Holdings, Inc.

GMO Media, Inc.

GMO Ad Networks, Inc.

JWord, Inc.

BOM, Inc.

GMO Marketing, Inc.

GMO Games, Inc.

GMO Games Korea, Inc.

GMO SEO Technology, Inc.

and 8 other companies

100.0

(49.1)

(100.0)

(100.0)

100.0

78.2

100.0

(77.2)

(100.0)

70.8

100.0

51.0

100.0

(100.0)

51.0

GMO AD Holdings, Inc.GMO AD Partners Inc.

GMO Mobile, Inc.


NIKKO, Inc.

GMO Research, Inc GMO Media Holdings, Inc.

GMO Media, Inc.

JWord, Inc.

BOM, Inc.

GMO Marketing, Inc.

GMO Games, Inc.

GMO Games Korea, Inc.


and 8 other companies

100.0(49.1)

(100.0)

(100.0)(100.0)

78.2

100.0(77.2)

70.8

100.051.0

100.0

(100.0)51.0

Other Other Other Other BusinessesBusinessesBusinessesBusinesses

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

100.0

(71.4)

(19.8)





Stock CodeTSE Mothers

(3788)

TSE 1st Section

(3769)

OSE Hercules

(4784)

JASDAQ

(3633)

Fiscal Term Q4 FYE 12/2009 Q1 FYE 9/2010 Q4 FYE 12/2009 Q4 FYE 12/2009

Listed SubsidiariesListed Subsidiaries

(JPY millions)




4

Fiscal Term Q4 FYE 12/2009 Q1 FYE 9/2010 Q4 FYE 12/2009 Q4 FYE 12/2009

Sales 1,926 727 1,147 695

Operating

Profit 269 280 11 134

Ordinary

Profit 279 280 35 133

Net Profit 148 137 -14 76

*Figures taken from each company’s quarterly P/L statement





Business Q4/2008Q4/2008Q4/2008Q4/2008 Q1/2009Q1/2009Q1/2009Q1/2009 Q2/2009Q2/2009Q2/2009Q2/2009 Q3/2009Q3/2009Q3/2009Q3/2009 Q4/2009Q4/2009Q4/2009Q4/2009

◆◆◆◆ Web Infrastructure & EC ◆◆◆◆

Internet Access Provider 331 320 307 295 285

Domain 546 603 615 520 502

Web Hosting 2,221 2,241 2,260 2,256 2,251

EC Solutions & Web Development 698 564 440 418 420

Security 281 311 326 304 349

Payment Processing 579 606 627 662 710

Other 39 60 59 84 104

Segment Total 4,6974,6974,6974,697 4,7104,7104,7104,710 4,6364,6364,6364,636 4,5414,5414,5414,541 4,6244,6244,6244,624

◆◆◆◆ Internet Media ◆◆◆◆


Summary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by BusinessSummary of Sales by Business(JPY millions)



5

◆◆◆◆ Internet Media ◆◆◆◆

Internet Media & Search Media 2,318 2,245 2,460 2,988 2,779

Internet Advertising Agencies 3,028 2,697 2,280 2,217 2,166

Other 368 335 272 274 269

Adjustment for internaltransactions

-100 -112 -191 -194 -175

Segment Total 5,6155,6155,6155,615 5,1665,1665,1665,166 4,8224,8224,8224,822 5,2865,2865,2865,286 5,0395,0395,0395,039

◆◆◆◆ Other Businesses ◆◆◆◆

Other 1 0 18 1 1

Adjustment for internaltransactions

1111 0000 18181818 1111 1111

Segment Total ----231231231231 ----206206206206 ----172172172172 ----150150150150 ----126126126126

Consolidated Sales 10,08310,08310,08310,083 9,6719,6719,6719,671 9,3049,3049,3049,304 9,6799,6799,6799,679 9,5389,5389,5389,538





3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)Costs and Cost Composition (Consolidated)

(JPY millions)



6

0

1,000

2,000

Cost of Sales and SGA Total 9,055 8,568 8,198 8,367 8410

Human Resources 2,395 2,411 2,420 2,493 2460

Advertising and Promotion Costs 265 254 263 316 376

Depreciation and Rental Costs 508 435 448 470 424

Outsourcing/Sub contracting expenses 538 523 413 352 373

Communication Costs 180 189 171 171 166

Rent 492 512 516 513 542

Commission Paid 930 858 1,050 977 1014

Media Costs 2,346 2,141 1,795 1,883 1838

Goodwill Amortization 225 181 184 173 169

Other 1,171 1,060 934 1,015 1044

Q4/08 Q1/09 Q2/09 Q3/09 Q4/09

* Revised to reflect the changes to cost of sales, SGA, and sales expenses

* ”Outsourcing/ sub contracting expenses” and “Other” revised in Q1/09





2. Web Infrastructure & 2. Web Infrastructure &

2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure&&&& EcommerceEcommerceEcommerceEcommerce



7

2. Web Infrastructure & 2. Web Infrastructure &

EcommerceEcommerce





1500

5025462,000

2,500

(thousands)

-5.7％％％％(compared to previous

12 months)

+41.5％％％％(YoY)

1-12/2009

2.24 billion

Sales Registrations


Domains Registration Domains Registration Domains Registration Domains Registration –––– Key FactorsKey FactorsKey FactorsKey Factors

(JPY millions)



8

1,210

855

0

500

1000

Q4/08Q4/08Q4/08Q4/08 Q4/09Q4/09Q4/09Q4/09

603617

615613

520601

0

500

1,000

1,500

2008200820082008 2009200920092009

Q4Q4Q4Q4Q3Q3Q3Q3Q2Q2Q2Q2Q1Q1Q1Q1





Q3Q3Q3Q3

Q4Q4Q4Q4

4Q4Q4Q4Q

300

400

500

(thousands)

Q3Q3Q3Q3

Q4Q4Q4Q4

300

400


New Domains and Domain RenewalsNew Domains and Domain RenewalsNew Domains and Domain RenewalsNew Domains and Domain Renewals

New Domain Registrations Renewals(thousands)



9

Q1Q1Q1Q1Q1Q1Q1Q1

Q2Q2Q2Q2

Q2Q2Q2Q2

Q3Q3Q3Q3

Q3Q3Q3Q3

0

100

200

Q4 34,702 49,290 69,400 89,557 107,524

Q3 32,056 47,028 65,603 87,161 106,543

Q2 31,609 43,693 70,630 90,925 111,495

Q1 33,606 42,000 67,826 87,632 107,273

2005 2006 2007 2008 2009

Q1Q1Q1Q1Q1Q1Q1Q1

Q2Q2Q2Q2

Q2Q2Q2Q2

Q3Q3Q3Q3

Q3Q3Q3Q3

Q4Q4Q4Q4

0

100

200

Q4 43,070 51,353 58,631 65,229 144,897

Q3 40,454 49,714 58,615 65,723 119,141

Q2 39,270 45,631 65,066 72,211 118,096

Q1 37,197 43,833 54,837 65,933 90,201

2005 2006 2007 2008 2009





600

800

1000

1200

1400

200

300

400

400

500

600

700

6,000

8,000

10,000


Sales Domain Registrationssales

(JPY millions)

unit price

(JPY)cumulative active domains

(thousands)registrations + renewals

(thousands)

Domain RegistrationDomain RegistrationDomain RegistrationDomain RegistrationDomain RegistrationDomain RegistrationDomain RegistrationDomain Registration


0

200

400

0

100

Cumulative

active

domains

855 913 1012 1,101 1,210

Registrations

+ Renewals

154 197 229 225 252

Total

Cumulative

Domains

1,405 1,496 1,614 1,733 1,878

Q408 Q109 Q209 Q309 Q409


10

0

100

200

300

0

2,000

4,000

Sales 546 603 615 520 502

Avg Unit

Price

5,749 4,880 3,575 2,990 2657

Avg Unit

Price for

Individuals

1,631 1,688 1,815 1,620 1350

Q408 Q109 Q209 Q309 Q409





300

400

1,500

2,000

2,500

4,000

6,000


Web Hosting

Sales Contractssales(JPY millions)

unit price(JPY)

(thousands)

Individual Customer Contracts



11

0

100

200

Individual Contracts 267 276 284 291 297

Corporate Contracts 116 119 123 129 134

Q408 Q109 Q209 Q309 Q409

0

500

1,000

0

2,000

Sales 2,221 2,241 2,260 2,256 2251

Avg. Unit Price 5,507 5,434 5,253 4,992 4760

Avg. Unit Price

for Individuals

397 398 400 395 394

Q408 Q109 Q209 Q309 Q409

Corporate Contracts





400

500

2,221 2,2518,000

10,000

(thousands)(JPY millions)

+3.6％％％％(compared to previous

12 months) +12.9％％％％(YoY)1-12/2009

9.01 billion

Sales Contracts2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure&&&& EcommerceEcommerceEcommerceEcommerce

Web Hosting Business Web Hosting Business Web Hosting Business Web Hosting Business –––– Key FactorsKey FactorsKey FactorsKey Factors



12

383432

0

100

200

300

Q4/08Q4/08Q4/08Q4/08 Q4/09Q4/09Q4/09Q4/09

2,142 2,241

2,176 2,260

2,156 2,256

2,221 2,251

0

2,000

4,000

6,000

2008200820082008 2009200920092009






30,000698

3,000

+32.9％％％％(YoY)

-39.2％％％％(compared to previous

12 months)

1-12/2009


EC Solutions & Web Development Business EC Solutions & Web Development Business EC Solutions & Web Development Business EC Solutions & Web Development Business ––––Key FactorsKey FactorsKey FactorsKey Factors

Sales Contracts

(JPY millions)



13

29,738

39,516

0

10,000

20,000

Q4/08Q4/08Q4/08Q4/08 Q4/09Q4/09Q4/09Q4/09

775564

715

440

841

418

420

0

1,000

2,000

2008200820082008 2009200920092009


1-12/2009

1.84 billion





Ecommerce Competitor Comparison

3

4


Ecommerce Store Contracts Ecommerce Store Contracts Ecommerce Store Contracts Ecommerce Store Contracts ---- Competitor ComparisonCompetitor ComparisonCompetitor ComparisonCompetitor Comparison

(10,000s)

39,000 Stores

GMO Internet Group Rakuten



14

0

1

2

3

2008

年1月

2008

年4月

2008

年7月

2008

年10

月20

09年

1月20

09年

4月20

09年

7月20

09年

10月

2008Q1

2008Q2

2008Q3

2008Q4

2009Q1

2008Q2

2008Q3

2008Q4

E Store

Yahoo!

Ochanoko

*No . o f me rchan t con t r ac ts (e x . OEM)

*Chart compiled by GMO Internet using documents obtained from the respective company website.

Healthy growth in Healthy growth in Healthy growth in Healthy growth in shopping cart shopping cart shopping cart shopping cart

contractscontractscontractscontracts

*No. of merchant contracts (ex. OEM)




4.Business Model 4.Business Model 4.Business Model 4.Business Model & Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy Total

Stores 26,000 13,000 39,000


Ecommerce Business ParametersEcommerce Business ParametersEcommerce Business ParametersEcommerce Business Parameters



15

Value of Orders(Quarterly)

JPY12.1B JPY14.5BJPY

26.7B

No. of Orders(Quarterly)

1.21M 890,000 2.11M

(As of fourth quarter 2009)

(All figures rounded down)





30,0001,500

+17.8％％％％(YoY)


12 months)

1-12/2009

1.29 billion

Certificates Issued

(cumulative/domestic only)

Sales2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure&&&& EcommerceEcommerceEcommerceEcommerce

Security Business Security Business Security Business Security Business –––– Key FactorsKey FactorsKey FactorsKey Factors

(JPY millions)



16

22,859

26,936

0

10,000

20,000

Q4/08Q4/08Q4/08Q4/08 Q4/09Q4/09Q4/09Q4/09

275 311

263326

255

304

281

349

0

500

1,000

2008200820082008 2009200920092009

Q4Q4Q4Q4

Q3Q3Q3Q3

Q2Q2Q2Q2

Q1Q1Q1Q1





4000

5000

Total

2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure&&&& EcommerceEcommerceEcommerceEcommerce Monthly Certificate Issues by Region

(New and Renewed)




17

0

1000

2000

3000

Q1.08 Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 Q3.09 Q4.09

Total

Japan

Europe

US





Domestic Market Share

60%





18

2008 2009

GeoTrust

Comodo

Secom

0%

20%

40%





Sales

280

1,000

727

2,000

3,000

(JPY millions) +17.3％％％％(compared to previous

12 months)


12 months)

Ordinary Profit2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure2. Web Infrastructure&&&& EcommerceEcommerceEcommerceEcommerce

Credit Card Payment Processing Business Credit Card Payment Processing Business Credit Card Payment Processing Business Credit Card Payment Processing Business ––––Key FactorsKey FactorsKey FactorsKey Factors

(JPY millions)



19

189 228

193236

212239

222

280

0

500

2008200820082008 2009200920092009


538 627

552646

598676

595

0

1,000

2,000

2008200820082008 2009200920092009


*GMO Payment Gateway figures revised to the GMO Internet fiscal year








20

3.Internet Media3.Internet Media





0

2,000

4,000

6,000

8,000

10,000

12,000

Stock PV

Distributed PV


Overture Business Overture Business Overture Business Overture Business –––– Key FactorsKey FactorsKey FactorsKey Factors

(million page views)

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Page

Vie

ws

Page

Vie

ws

Page

Vie

ws

Page

Vie

ws



21

0

Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09

2007 2008 2009

Decline on Interest Match® etc.

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Sto

ck/

Distrib

ute

d

Daily S

ales

Daily S

ales

Daily S

ales

Daily S

ales

Revenue declines on drop in bid

amounts





1,7496,000

8,000

(JPY millions) +34.1％％％％(compared to previous

12 months)

200

250

1-12/2009

6.41 billion

SEM Media SEM Media – Sales Reps


SEM Media SEM Media SEM Media SEM Media –––– Key FactorsKey FactorsKey FactorsKey Factors



22

1,075 1,233

1,1231,457

1,307

1,9701,272

0

2,000

4,000

2008200820082008 2009200920092009


0

50

100

150

Q4.08 Q1.09 Q2.09 Q3.09 Q4.09





GMO Internet

8

10

SEO Sales Comparison

(excluding affiliates)3.Internet Media3.Internet Media3.Internet Media3.Internet Media

OvertureOvertureOvertureOverture–––– Key FactorsKey FactorsKey FactorsKey Factors

(JPY 100 millions)

No.1No.1No.1No.1



23

Full Speed

CyberAgent

AUN Consulting

iREP

0

2

4

6

6Qs ago 5Qs ago 4Qs ago 3Qs ago 2Qs ago Latest Q

No.1No.1No.1No.1SEO SalesSEO SalesSEO SalesSEO Sales





4.Business Model & Growth 4.Business Model & Growth

4.Business Model4.Business Model4.Business Model4.Business Model& Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy



24

4.Business Model & Growth 4.Business Model & Growth

StrategyStrategy




4.Business Model 4.Business Model 4.Business Model 4.Business Model & Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy4.Business Model4.Business Model4.Business Model4.Business Model& Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy

Striving to be the “Internet Department” to Japan

The company that has most increased the number of websites (volume of

information) on the Internet in Japan

The GMO Internet GroupThe GMO Internet Group



25

Internet for EveryoneInternet for Everyone





ServicesServices

Web Infrastructure & Ecommerce Segment

・・・Everything required to publish information on the Internet

Domain RegistrationAddresses for the

Internet

Web Hosting

Ecommerce Solutions& Web Dev.

Ecommerce systems provider



26

Web HostingWebsite and email

data storage

Security

Data encryption

Payment Processing

Online payment processing





① ①JWord

Displays ads at the top of affiliated

websites. Directs users to registered

sites according to keywords entered

into the browser address bar.

Internet Media segment (1)

・・・Helping websites attract customers

ServicesServices



27

②②SEO

into the browser address bar.

HTML, site structure and links

optimized to improve rankings in

search results listings.

Premium Word

Area




4.Business Model 4.Business Model 4.Business Model 4.Business Model & Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy4.Business Model4.Business Model4.Business Model4.Business Model& Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy Overture

Overture ads distributed to blog pages

and other long tail media.

Blog post content is analyzed and

relevant advertising is displayed.

ServicesServices

Internet Media segment (2)

・・・Advertising revenue from owned & operated media



28





Business SegmentsBusiness SegmentsBusiness SegmentsBusiness SegmentsManagement resources concentrated in two business areas.Our operations support the information delivery and net businesses of 1.73 million customers (*7).

Web Infrastructure & Ecommerce

1.21 million IDs *1

Website

Brokerage

* 5

EC Solutions & Web Dev.

SecurityPayment

Processing

NetRatings No.6 No. 1 in Japan

(approx.) 9.65 million IDs *2

Internet Media


29

Research

870,000 Business Customers*3

850,000 Individual Customers*4

12 million

Plug-ins

28.8 million

Users

SEM Media

& Web Dev.

(58 million

cumulative plug-ins)

O v e r t u r e

Advertising

AgenciesAccess ProviderDomain

Web

Hosting

Notes:

*1. Business and individual domain registrations = no. of integrated customer database IDs

*2. GMO Toku Toku ID members

*3. Total business members of five major services

*4. Total individual members of domain and web hosting services

*5. Based on total number of e-commerce solutions (MakeShop + Color Me Shop!) contracts

*6. Approximately 71,000 Internet access provider business customers not included in the above figures

*7. Paying members only

Owned & Operated

Media (O&O Media)

(approximate no. of customers)

No.1 Share





800 thousand of the 5.7 million businesses in Japan use our

Infrastructure segment services

Businesses in Japan

Businesses in

Japan: 5.7 million (*1)

38% of companies in

Japan (approx. 1.081

million) have

registered domains

（ccTLD＋gTLD） (2*)

Over 1,000 Employees: 1,200

Over 100 Employees: 55,000

Web Infrastructure & Ecommerce Segment CustomersWeb Infrastructure & Ecommerce Segment Customers



30*1.Ministry of Internal Affairs and Communications Statistics Bureau 2006 statistical report on business and industry (October 1, 2006)

*2.Our own calculations, JPRS statistics (December, 2006) and the ICANN monthly registry report December 2006.



Less than 10 Employees: 4,580,000

Corporate entities:2.85 million(*1)

GMO

Customers:

870 thousand

companies


(approximate no. of businesses)





3,513

4,189

5,255

4.Business Model4.Business Model4.Business Model4.Business Model& Growth Strategy& Growth Strategy& Growth Strategy& Growth Strategy

Internet Media Segment UsersInternet Media Segment UsersInternet Media Segment UsersInternet Media Segment UsersInternet Media Segment UsersInternet Media Segment UsersInternet Media Segment UsersInternet Media Segment Users

28.8 million users28.8 million users

Ranking: Visitors per Month

(10,000’s)



31

2,441

2,732

2,773

2,783

2,961

3,312

2,8802,8802,8802,880

Nielsen//NetRatings, (12/2009)





We are not a portal site or an online shopping mall; we operate a We are not a portal site or an online shopping mall; we operate a

vast linevast line--up of services up of services (major services popular with many of our 28.8 million users)(major services popular with many of our 28.8 million users)

approx. 5.79 million

users


users


users

Internet Media Segment Internet Media Segment -- Major Internet Media SitesMajor Internet Media Sites



32Nielsen//NetRatings, (12/2009)


users


users


users





GMO Internet Group StrengthsGMO Internet Group Strengths

Sophisticated technology, organizational strength & a broad Sophisticated technology, organizational strength & a broad

customer basecustomer base

Stable Customer Base870,000* businesses850,000* individuals 1.21 million* IDs

Customer

Base

NetRatings Japan Ranking: 6

28.8 million individual users

9.65 million IDs

Up-Sell Cross-Sell*figures rounded down



33

マーケティング＆

営業力自社開発

技術力顧客満足No.1

サポート力最新情報キャッチ

リサーチ力Overwhelming Domain

& Server Market Shares

Latest Industry Trends

Research

Venture CapitalSecuring the latest business innovations

Pay-per-Click AdvertisingOn top of industry marketing trends

Net Professionals

1,796

Research Panel

7.23 million members

All supported by a formidable organizational strength!

We Develop Our Own

Technology

Advancing into the

Global Security Market

Ecommerce Payment Processing

operating 46 thousand stores

Search / CGM

55 million Plug-ins

No. 1 Customer Satisfaction

Support

Support Center Open

24 hours 365 days

Quick ResponsePhone 9 secs Mail 9 mins

CTICustomer Management

System

HDI Japan 2 Stars

Web Marketing70 Sites

Call Center600 Reps

Sales

Approx. 7,500 Partners

Marketing &

Selling Power





Main Group CompaniesMain Group Companies

59 Companies (consolidated: 46 non consolidated:12) 1,796 Employees59 Companies (consolidated: 46 non consolidated:12) 1,796 Employees


(Western Japan Sales Office)


(Osaka Sales Office)

@YMC Corporation

(Yamaguchi Head Office)

paperboy & co.

(Fukuoka Branch)


GlobalSign Ltd.

(England)

GlobalSign NV

ＧMO Games Korea, Inc.

(Korea)

GlobalSign China

(China) (non-consolidated)

Hosting & Security, INC.(US)




34

Listed Company

Internet Media Segment

GMO AD Partners, Inc. (OSE:4784)

NIKKO, Inc.

GMO Mobile, Inc.

GMO Research, Inc.

GMO Media Holdings, Inc.

GMO Media, Inc.

JWord, Inc.

GMO Marketing, Inc.

GMO Games, Inc.

BOM, Inc.



8 other companies

Web Infrastructure & Ecommerce Segment

GMO Internet, Inc. (TSE:9449)

GMO Hosting & Security, Inc. (TSE:3788)

paperboy & co. Inc. (JASDAQ: 3633)

GMO Fast Translation, Inc.


GMO MAKESHOP Co. Ltd.

GlobalSign K.K.

GMO Payment Gateway, Inc. (TSE:3769)

Epsilon, Inc.




Toriton, Inc.

GMO Creators Network, Inc.

INTERNET Number Corporation


(Fukuoka Sales Office)

GMO Media, Inc. (Okinawa

Branch)

GlobalSign NV

(Certificate Authority,

Belgium)





Registry Business Terminology (I)Registry Business Terminology (I)

ccTLD

Country code Top Level Domain Eg. .jp (Japan), .us (US), .uk (UK) Top level domains based on two

letter ISO 3166-1 country codes. There are approximately 250 ccTLDs used to identify countries

including .jp (Japan), .us (US) .cn (China), .uk (UK) and .be (Belgium).

DNS

Domain Name System The network that handles domain names and IP addresses. When a user

accesses a web site, their local name server queries DNS servers to determine the IP address of the

domain name. DNS returns the IP address allowing the user to view the web server at that address.

DNS ServerA server that supports the operation of DNS, also known as a name server. DNS servers are used to

translate a hostname or domain name to its corresponding IP address.

Domain/ Domain

A domain name is a string of letters that identifies a computer on the Internet in accordance with a set of

rules. Although it is often referred to as an Internet “address” , in fact only an IP address can enable



35

Domain/ Domain

name

rules. Although it is often referred to as an Internet “address” , in fact only an IP address can enable

access to a computer on the Internet. More accurately speaking a domain is a string of letters that

enables addresses on the Internet to be easily located. Each domain name has an IP address and this

relationship is managed on the name server (DNS server).

gTLDgeneric Top Level Domain Eg. .com, .net, .org etc. Before the establishment of ICANN there were 8

gTLDs, ICANN introduced an additional 13 and there are now 21 gTLDs in use.

ICANN

Internet Corporation for Assigned Names and Numbers is a US based not for profit organization

responsible for managing the assignment of domain names and IP addresses. ICANN also holds the

authority to designate official domain registrars. ICANN holds international conferences three times a

year, in between it also hosts workshops and other events. ICANN is the decision making body for the

Internet.

IDNInternationalized Domain Names. Refers to non-alphabet domain names. Includes any script

that conforms to Unicode standards.





IP AddressAn IP address is a numerical identification assigned to computers on the Internet in accordance with

Internet Protocol. Eg. 123.456.12.3 All computers connected to the Internet have an IP address.

Japanese

language

(character)

domain

An IDN that contains a Japanese language character string. Eg. ドメイン.com, 日本語.jp. Japanese

language domain names have been available using .com, .net and .org since 2000 and with .jp since

2001.

new gTLD

The ICANN new gTLD program, will allow new top level domains to be introduced, it is expected to

expand both the number of domains and usage of domains on the Internet. It will also allow applications

for top-level domains (IDN gTLD) in other languages.

Registrar

ICANN accredited registrars can directly register domain data into registry databases under contract with

the relevant registry. While there is only one registry for each top-level domain, multiple registrars exist

to promote competitive pricing and service. Onamae.com is one of 10 ICANN accredited registrars in

Japan.

Registry Business Terminology (II)Registry Business Terminology (II)



36

Japan.

Registry

An organization that maintains a central database of domain names data for a particular domain.

Different domains are managed by different registries. Registries are required to maintain neutrality and

guarantee equal access to the Shared Registry System (SRS) for all registrars. Under the new gTLD

program, successful applicants will be able to operate registry services for new gTLDs.

Root server

The root server is a DNS server that operates the DNS root zone at the top level of the DNS hierarchy.

When a new domain is registered or a domain name server is changed it is first recognized as valid by

the root server. There are currently 13 root servers worldwide, including Japan, that balance server load

and reduce risk.

Top level domain

Domain names have a hierarchical structure. For example in the domain www.gmo-registry.com “.com”

on the far right is the top-level domain, to the left of top level domain separated by a dot is the second

level domain (SLD) next to that is the third level domain (3LD) Top level domains are managed by a

registry (as are some SLDs), second level domains are managed by a registrar under contract with the

registry.

Documents

Fiscal Year 2009 Results PresentationFiscal Year 2009 Results Presentation February 10, 2010 GMO Internet, Inc. (TSE First Section: 9449 ) Supplementary Materials Internet for Everyone