Gunosy, Inc. · TSE:6047

Gunosy — Q3 FY2024/5 Earnings Presentation

50 slides from Gunosy's earnings presentation, May 31, 2024

Slide 1: FY2024/5 Financial Results for Q3
FY2024/5 Financial Results for Q3 株式会社 Gunosy Gunosy Inc. TSE 東証Prime プライ (6047) ム（証券コード：6047）
Slide 2: Index
1. Financial Highlights P 03 2. Upward Revision of Full-Year Forecasts and Returns to Stockholders P 06 3. Financial Results for FY2024/5 Q3 P 12 INDEX 4. Business Overview by Division P 17 • Media Business • Game8 • Investment (slice) 5. Other Topics P 29 6. Reference Materials P 32 （C） Gunosy Inc.
Slide 4: Executive Summary (1/2)
Executive Summary (1/2) Consolidated operating profit improved significantly QoQ due to the recovery of programmatic advertising profitability in the Media business as well as revenue growth at Game8. As a result, we achieved profitability in Q3 (Dec. 2023 - Feb. 2024). The full-year forecast has be
Slide 5: Executive Summary (2/2)
Executive Summary (2/2) Q3 (Dec 2023 – Feb 2024) (Million yen) Net sales Operating profit Net sales 1,920 million yen YoY 90.7％ Gunosy 1,115 -74 Game8 572 190 Operating profit 93 million yen YoY ---％ Others 232 -22 Q1-Q3 (Jun 2023 – Feb 2024) (Million yen) Net sales Operating profit Net sales 5,649
Slide 7: Revision of FY2024/5 Results Forecast (Consolidated)
Revision of FY2024/5 Results Forecast (Consolidated) Regarding the forecast for consolidated results for the full year, operating profit was revised upward from the revised Q2 forecast of - 260 million yen to -30 million yen, taking into account the consolidated results for the third quarter. The am
Slide 8: Consolidated Operating Profit
Consolidated Operating Profit In Q1, an operating loss was recorded on a consolidated basis due to increased advertising investments. However, from Q2 onwards, advertising investments were reduced, the profitability of the Media business recovered and the Game8 business remained strong, resulting in
Slide 9: Acquisition of Treasury Stock upon Transfer of Smarprise Shares
Acquisition of Treasury Stock upon Transfer of Smarprise Shares In connection with the sale of Smarprise, a gain on sale of shares of subsidiaries and associates of 386 million yen was recorded in the consolidated financial statements, while the cash-based return generated was 295 million yen. It wa
Slide 10: Policy on Future Return to Shareholders
Policy on Future Return to Shareholders *1 Investment status is comprehensively evaluated based on IRR and other indicators. Our policy is to return a certain percentage to shareholders as cash-based returns are generated in the future. It is also our policy to manage the capital invested in the bus
Slide 11: Progress towards Achieving Consolidated and Non-consolidated Operating Profitability in FY2025/5
Progress towards Achieving Consolidated and Non- consolidated Operating Profitability in FY2025/5 We will continue our basic policy of achieving consolidated 1 and non-consolidated operating profitability by FY2025/5. Consolidated operating profit of 93 million yen was achieved in Q3, supported by t
Slide 13: FY2024/5 Consolidated Results for Q3
FY2024/5 Consolidated Results for Q3 We achieved a return to profitability in consolidated operating profit in the third quarter (Dec. 2023- Feb. 2024), driven by the continued strong performance of the Game8 business, as well as a recovery in the profitability of the Media business and control of a
Slide 14: Breakdown of Net Sales
*1 Breakdown of Net Sales Game8 sales increased both YoY and QoQ. In Gunosy Ads, the profitability of programmatic advertising recovered, leading to a QoQ increase in revenues. Others Game8 ADNW (Million yen) Gunosy Ads*2 2,400 221 192 168 203 194 275 441 153 246 457 295 451 142 203 244 366 420 280
Slide 15: Cost Structure
Cost Structure Advertising expenses were unchanged QoQ, reflecting continued restraint in line with previous policy. Other costs were tightly controlled and did not change significantly. (Million yen) 2,400 2,304 2,187 2,176 2,135 2,048 2,085 2,080 2,110 2,118 2,066 1,974 2,010 1,866 1,869 1,826 537
Slide 16: Equity Method Investment Gains/Losses of slice
Equity Method Investment Gains/Losses of slice The stable organic growth of the business continues with appropriately controlled marketing investments, resulting in a decrease in the amount of losses. Equity method investment losses are also on a declining trend. Equity method investment gains/losse
Slide 18: Media Business Total Number of Active Users (MAUs)
* Media Business Total Number of Active Users (MAUs) In Q3, the size of the media was maintained QoQ, while advertising investment was kept under control. LUCRA (Service ended in February 2023) NewsPass + au Service Today Gunosy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2021/5 FY2022/5 FY2023/5
Slide 19: Progress Summary of Gunosy's Key KPIs
Media Business Progress Summary of Gunosy's Key KPIs Profitability continued to recover on the back of algorithmic improvements implemented in Q2, with S/D following an upward trend QoQ. While DAUs increased YoY driven by a favorable retention rate, DAUs declined slightly QoQ due to continued contro
Slide 20: Gunosy: Advertising Expenses and Estimated IRR
Media Business Gunosy: Advertising Expenses and Estimated IRR Since November 2023, the IRR has remained well above the criteria due to the control of advertising investment and improved profitability. We will continue to control the level of advertising investment from March 2024. The IRR for Februa
Slide 22: Game8 (Sales and Operating Profit)
Game8 Game8 (Sales and Operating Profit) As was the case in the second quarter, sales in the Media business grew significantly, both domestically and internationally, driven by strong PVs and a significant improvement in profitability. As a result, sales and operating profit reached record levels. (
Slide 23: Key KPIs of Game8
Game8 Key KPIｓof Game8 * significantly, in part due to PVs, one of the most important KPIs, remained strong. RPM has improved improvements in overseas eCPM. PVs RPM Although there was some volatility RPM remained strong, partly due to depending on game title sales, page improved profitability in ove
Slide 25: slice Latest Update
slice Latest Update On March 12, 2024, Competition Commission of India (CCI) approved the merger of GaragePreneurs Internet, which operates "slice", with NESFB (the "Merger"). Application to CCI • In India, prior approval from the CCI is required for mergers and acquisitions exceeding certain thresh
Slide 26: Progress of the Merger Process
slice Progress of the Merger Process The merger process is progressing well with the filing of the application with the NCLT (National Company Law Tribunal) completed. The only major process remaining for the merger is the approval of the NCLT. September 2023 March 2024 April 2024 l Complete l Not c
Slide 27: slice AUM
slice AUM The customer base was significantly expanded through marketing investments until the first half of 2022. Since the launch of a product compliant with the Digital Lending Guidelines in December 2023, "slice" has expanded its business scale while appropriately managing its burn rate by acqui
Slide 28: slice Future Policy
slice Future Policy Our goal is to become profitable in “slice” business and maintain a healthy financial position, while continuing to steadily increase AUM through organic growth. After the merger with NESFB, we aim to further accelerate growth by providing customers with a comprehensive digital f
Slide 30: New Business LLM (Udekiki)
New Business LLM (Udekiki) "Udekiki," our generative AI service, supports all organizations looking to leverage internal IT and drive digital transformation. A new feature has been added to the service, which answers questions and summarizes the results based on uploaded PDF documents. Topics in Q3
Slide 31: Reorganization of the Business Portfolio
New Business Reorganization of the Business Portfolio In order to reorganize the business portfolio, it was decided to discontinue the ad network business and the YOU IN service. Reorganization of the Business Portfolio Ad network business YOU IN Deliver ads that can be targeted directly to users "Y
Slide 34: Company History
Company History November 2021 June 2016 Achieved unicorn status in the fintech sector by raising “NewsPass” released significant funds in its Series B funding round November 2012 July 2018 Established Gunosy Capital Established Gunosy Inc. in and started investment Roppongi, Minato-ku, Tokyo busines
Slide 35: Gunosy Group Business Portfolio
Gunosy Group Business Portfolio Medium- to long-term growth driven by three businesses 1 2 3 ＋ New Media business Game8 group Investment businesses • Gunosy • Game8 • Gunosy Capital • LLM • NewsPass • Au Service Today • Data accumulated since the inception of the company DATA • • Knowledge of algori
Slide 36: Growth Image
Growth Image Increase corporate value through growth of existing businesses and development of new businesses Aim for group-wide growth with a market capitalization of 100 billion yen as a medium- Investment to long-term target Game8 Media business Established （C） Gunosy Inc. All Rights Reserved. 36
Slide 37: Overview of Gunosy Inc.
Overview of Gunosy Inc. Basic Information Representative Director and Chairman, Company name: Gunosy Inc. Officers: Group Chief Executive Officer (CEO), Shinji Kimura Representative: Shinji Kimura Representative Director and President, Kentaro Nishio Yuya Taketani Director and Chief Investment Offic
Slide 38: From Gunosy Way to Gunosy Pride
From “Gunosy Way” to “Gunosy Pride” The concept of "Gunosy Way", which had been defined as a milestone for Gunosy to follow, was redesigned as "Gunosy Pride“, which inherits the original thoughts and concepts. 1 “Triple win” philosophy Benefit the customer, the user, and the world. Benefit yourself,
Slide 39: Status of the Estimated Value of the Investment Portfolio
Status of the Estimated Value of the Investment Portfolio (Disclosed on July 14, 2023) FY2019/5 FY2020/5 FY2021/5 FY202/5 FY2023/5 Investment ratio 0.98 0.99 1.11 5.36 5.16 (Million yen) *1 25,741 26,546 Accumulated investment *2 “Accumulated 「累計投資額」と Estimated value + Sale price investment” and 「推定
Slide 41: Relationship with slice
slice Relationship with “slice” Since 2019, we have invested a cumulative total of over 3 billion yen in slice. In April 2022, we dispatched a director, making it an equity-method affiliate. GaragePreneurs Internet Pvt Ltd., which operates 2015 Jun "slice" established Percentage of ownership by the
Slide 42: slice Company Overview
slice Company Overview Foundation Amount raised to date 2015 Approx. $290 million (Cumulative amount) Major shareholders TIGER INSIGHT Gunosy GLOBAL PARTNERS Most recent financial statements Number of employees (P/L and B/S) (FY2023/3) Profit (loss) Sales before income taxes 15.2 billion yen -7.1 bi
Slide 43: slice Company History
slice Company History Founded in 2015, “slice” expanded its digital payments business by focusing on BNPL (Buy Now Pay Later), which was not widely used in India at the time. Since then, slice has grown dramatically and finally became a unicorn in December 2021. Transforming the financial experience
Slide 44: slice inc. Business Description
slice slice inc. Business Description "slice" is India's leading fintech company providing payment services. It offers intuitive and easy digital payments and is highly supported by Millennials and Gen Z, the largest segment of the population. With more than 15 million users, slice is the market lea
Slide 45: slice Business Environment
slice slice Business Environment In India, credit card penetration is low compared to other countries, leaving significant room for market growth. Digital payment transactions Credit card penetration Digital consumer lending volume in India Number of digital Credit card penetration Total digital con
Slide 46: slice's Strengths
ビジネス slice slice’s Strengths ”slice” boasts a strong brand image that is highly supported by the Millennial Generation Z, the volume segment of the population. Low default rate is achieved through its unique credit expertise. Appeal to the younger generation, the volume segment of the 1 population,
Slide 47: slice P&L: Sales and Profit/Loss before Income Taxes
slice slice P&L: Sales and Profit /Loss before Income Taxes (Million yen) 15,273 FY2023/3 highlights Sales Profit (loss) before income taxes Sales CAGR 211% FY2019/3 – FY2023/3 15,273 Million yen 5,155 YoY 296％ Profit (loss) before income taxes 715 1,200 162 ▲ 174 ▲ 17 ▲ 148 -7,123 Million yen YoY ー
Slide 48: slice B/S (As of the End of FY2023/3)
slice slice B/S (As of the End of FY2023/3) Total assets as of March 31, 2023 were 33.9 billion yen. The company is in sound financial condition, with an equity ratio of more than 50%. As of March 31, 2023 (Million yen) Current asset Liabilities 30,448 16,728 Total assets: 33.9 billion yen Equity ra
Slide 49: Overview of Merging with slice
slice Overview of Merging with slice This merger is an extremely important step in increasing slice's growth potential. Gunosy will continue to support slice as a corporate shareholder after the merger. NESFB Overview of the merger Merger will deliver a more Small finance bank operating primarily co
Slide 50: (Reference) Schedule since Guideline Release
slice (Reference) Schedule since Guideline Release Changes were made to ensure that the product experience was compliant with the Reserve Bank of India's (RBI) Digital Lending Guidelines, and the new product was released on time. The transition to the went smoothly with no major issues. September 2,

Gunosy — Q3 FY2024/5 Earnings Presentation on 6ix

Gunosy — Q3 FY2024/5 Earnings Presentation

Slide 1: FY2024/5 Financial Results for Q3

Slide 2: Index

Slide 3: Financial Highlights

Slide 4: Executive Summary (1/2)

Slide 5: Executive Summary (2/2)

Slide 6: Upward Revision of Full-Year Forecasts and Returns to Stockholders

Slide 7: Revision of FY2024/5 Results Forecast (Consolidated)

Slide 8: Consolidated Operating Profit

Slide 9: Acquisition of Treasury Stock upon Transfer of Smarprise Shares

Slide 10: Policy on Future Return to Shareholders

Slide 11: Progress towards Achieving Consolidated and Non-consolidated Operating Profitability in FY2025/5

Slide 12: Financial Results for FY2024/5 Q3

Slide 13: FY2024/5 Consolidated Results for Q3

Slide 14: Breakdown of Net Sales

Slide 15: Cost Structure

Slide 16: Equity Method Investment Gains/Losses of slice

Slide 17: Business Overview by Division: Media Business

Slide 18: Media Business Total Number of Active Users (MAUs)

Slide 19: Progress Summary of Gunosy's Key KPIs

Slide 20: Gunosy: Advertising Expenses and Estimated IRR

Slide 21: Business Overview by Division: Game8

Slide 22: Game8 (Sales and Operating Profit)

Slide 23: Key KPIs of Game8

Slide 24: Business Overview by Division: Investment (slice)

Slide 25: slice Latest Update

Slide 26: Progress of the Merger Process

Slide 27: slice AUM

Slide 28: slice Future Policy

Slide 29: Other Topics

Slide 30: New Business LLM (Udekiki)

Slide 31: Reorganization of the Business Portfolio

Slide 32: Reference Materials

Slide 33: Mission

Slide 34: Company History

Slide 35: Gunosy Group Business Portfolio

Slide 36: Growth Image

Slide 37: Overview of Gunosy Inc.

Slide 38: From Gunosy Way to Gunosy Pride

Slide 39: Status of the Estimated Value of the Investment Portfolio

Slide 40: Reference Materials (slice)

Slide 41: Relationship with slice

Slide 42: slice Company Overview

Slide 43: slice Company History

Slide 44: slice inc. Business Description

Slide 45: slice Business Environment

Slide 46: slice's Strengths

Slide 47: slice P&L: Sales and Profit/Loss before Income Taxes

Slide 48: slice B/S (As of the End of FY2023/3)

Slide 49: Overview of Merging with slice

Slide 50: (Reference) Schedule since Guideline Release