Progress of the Mid-Term Policy and Future Outlook (FY2027 Net Sales / Operating Profit Targets)

GMO Pepabo, Inc. announced the progress of its mid-term policy and its future direction in the full-year financial results for the fiscal year ended December 2025. We continue to aim for the targets outlined in our mid-term policy: consolidated net sales of 12.6 billion yen (CAGR 5.0%) and a consolidated operating profit of 1.26 billion yen (CAGR 15.0%) for the fiscal year ending December 2027. Although the exclusion of the Financial Support Business from the scope of consolidation has created a gap in both net sales and operating profit, we aim to achieve these targets through building partnerships.

Strengthening the Recurring Revenue Base and Expanding Business Domains

Sales from our recurring revenue businesses, which form our core earnings base, have grown steadily due to a higher ratio of premium plan contracts. The ratio of recurring revenue reached 73.0%, an increase of 2.8 percentage points from the previous fiscal year.

Background of New Service Rollouts

To achieve mid-to-long-term growth, we are adapting to environmental changes driven by AI utilization and corporate DX (Digital Transformation). We will strengthen the rollout of options surrounding MuuMuu Domain and the provision of high-value-added, higher-tier corporate products. By reliably capturing expanding corporate demand, upscaling our client base, and increasing unit prices, we will establish a rock-solid recurring revenue base.

Aiming for Growth through New Services and Building Partnerships

We will strengthen our earnings base by increasing ARPU through new services and rolling out AI-driven solutions. We aim to drive growth through agile partnership building on a scale of 3 billion yen.

Enhancing Corporate Value and Sustainability

ESG and SDGs (Sustainability Strategy)

GMO Pepabo has identified three key issues (materialities) in our sustainability strategy. By providing various services that support creative expression, we aim to increase the output of humanity.

(Three Key Issues / Materialities)

• Considering and preserving the global environment by reducing environmental impact

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• Empowering all people and increasing the output of humanity

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• Ensuring sound and transparent corporate management through strengthened governance

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(Changes in Output Culture and Our Journey)

Value Creation Process

Through the provision of services based on our corporate philosophy, "Make it more playful," and our mission, we eliminate barriers to entry for creative output and support the dissemination and development of expressive activities. By expanding the economic spheres created by creators and users, and by providing value that makes society more interesting, we achieve a sustainable increase in corporate value.

GMO Internet Group's Corporate Management Strategy

The GMO Internet Group pursues a group management approach based on the "decentralization of authority" and the "creation of group synergies." Specifically, to adapt to the rapidly changing internet market, each group company selects its area of expertise, concentrates management resources on that area to become No. 1, and operates independently. Within this framework, GMO Pepabo, Inc. is responsible for the e-commerce support, web hosting, and domain businesses.

Furthermore, we are growing while creating group synergies based on the shared and thorough implementation of "GMO-ism"—the collective term for the corporate philosophy and credos of the GMO Internet Group.