Heroz, Inc. · TSE:4382
Heroz — Q1 FY04/2019 Earnings Presentation
21 slides from Heroz's earnings presentation, Sep 11, 2018
Slide 1: Presentation Material for FY04/2019 Q1 Financial Results
Notice This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Presentation Material for FY04/2019 Q1 Financial Results
Slide 2: 1. Business Overview
1. Business Overview 2. FY04/2019 Q1 Performance 3. Growth Strategy 4. Reference Materials
Slide 3: Our Vision
Our Vision Creating the future through artificial intelligence (AI) revolutions 3
Slide 4: Global Leader in Mind Game AI
Global Leader in Mind Game AI Chess AI Shogi AI Go AI Deep Blue (’97) AI developed by our Google acquired Deep Mind defeated a human engineers defeated a (’14) being champion professional shogi AlphaGo, developed by (Japanese Chess) Deep Mind, defeated a player (’13) professional Go player (’16) IBM
Slide 5: B-to-B Services: Profit Model and High Switching Costs
B-to-B Services: Profit Model and High Switching Costs Research/develop Shogi AI Standardize AI technology accumulated through shogi AI Establish “HEROZ Kishin”=MLaaS （Machine Learning as a Service） Establish an infrastructure which allows HEROZ to provide AI services efficiently Output after machin
Slide 6: B-to-B Services: Replacing Shogi Game Records with Corporate Data
B-to-B Services: Provide Services by Replacing Shogi Game Records with Corporate Data Structural design data, Shogi game records financial data, etc. HEROZ Kishin Deep learning and other machine learning: MLaaS (Machine Learning as a Service) Shogi AI Construction AI, Finance AI, etc. MLaaS： What is
Slide 7: B-to-B Services: Engines included in HEROZ Kishin and Examples of Applications
B-to-B Services: Engines included in HEROZ Kishin and Examples of Applications ◼ Create AI products by combining engines and achieve an efficient operating structure Know-how on AI-related technology development and and R&D capabilities service operations (deep learning, etc.) (massive servers, etc.
Slide 8: B-to-C Services: Fees from Application Users
B-to-C Services: Fees from Application Users Charging fees for B-to-C content which user AI ◼ Leveraging AI-related technology to provide brain games such as shogi, chess, and backgammon worldwide ◼ Also engaging in collaboration with IP characteristics Shogi Wars Animal Igo Wars CHESS HEROZ Backgam
Slide 9: 2. FY04/2019 Q1 Performance
1. Business Overview 2. FY04/2019 Q1 Performance 3. Growth Strategy 4. Reference Materials
Slide 10: Our Key Performance Indicator
Our Key Performance Indicator ◼ We believe that EBITDA, as calculated below, is our key performance indicator EBITDA = Operating Profit + Depreciation/Amortization Expenses ◼ In AI-related businesses, server investments, etc. are required to engage in advanced machine learning, leading to various de
Slide 11: Performance Overview (May-July 2018)
Performance Overview (May-July 2018) ◼ We made steady progress towards achievement of fiscal year forecasts in the first quarter, driven by an increase in new and ongoing AI (B-to-B) projects and steady performance of Shogi Wars in AI (B-to-C) services (Reference) FY04/2019 (Units: JPY millions) FY0
Slide 12: Performance Trends
Performance Trends ◼ We forecast that revenues from AI (B-to-B) services, which is the core pillar of our growth strategy, will more than double on a year-on-year basis in FY04/2019 ◼ On the other hand, we expect revenues from AI (B-to-C) services to decrease on a year- on-year basis as full year re
Slide 13: Balance Sheet (as of July 31, 2018)
Balance Sheet (as of July 31, 2018) ◼ We expect to continue to invest cash and deposits in efforts to achieve the medium-to- long-term growth strategy (computing servers, R&D, etc.) ◼ Tangible fixed assets increased in the first quarter due to the purchase of computing servers for about 50 million y
Slide 14: 3. Growth Strategy
1. Business Overview 2. FY04/2019 Q1 Performance 3. Growth Strategy 4. Reference Materials
Slide 15: Medium-to-long-term Growth Strategy
Medium-to-long-term Growth Strategy ・Net Sales B-to-B ・EBITDA Provide AI services AI B-to-B to businesses (Growth market) Growth area →core operation for ￥ the medium-to-long term B-to-C • Focus on partnership strategy, IP strategy, and recruiting Shogi AI, IPO • Enhance competitiveness through othe
Slide 16: Initiatives Aimed at Achieving the Growth Strategy (1)
Initiatives Aimed at Achieving the Growth Strategy (1) ◼ Member of the Japan Deep Learning Association (JDLA) since July 19, 2018 ◼ Contributing to JDLA’s activities (advice to governmental organizations and corporations, human resource development, international coordination, dialogues with society
Slide 17: Initiatives Aimed at Achieving the Growth Strategy (2)
Initiatives Aimed at Achieving the Growth Strategy (2) ◼ Completed investment of about 50 million yen in proprietary computing server for machine learning in the first quarter (planning total investment of about 200 million yen during the fiscal year) ◼ Allows for R&D efforts using larger, more comp
Slide 18: 4. Reference Materials
1. Business Overview 2. FY04/2019 Q1 Performance 3. Growth Strategy 4. Reference Materials
Slide 19: Company Overview
Company Overview 2018 Listed on Tokyo Stock Exchange (TSE) Mothers Name HEROZ, Inc. Capital and business alliance with Netmarble Games Corporation Location PMO Tamachi 2F, 5-31-17 Shiba, Minato-ku, 2017 Tokyo Capital and business alliances with Takenaka Corporation, Hearts Established April 2009 Uni
Slide 20: HEROZ's Competitive Advantages
HEROZ’s Competitive Advantages Backgrounds of Management Team and Key Shogi AI Business Members Experience Defeated active shogi AI technology suited Ability to establish Competitive professional (shogi AI for real-world “battles” business alliances Advantage talent backed by real- (AI technology wi
Slide 21: Disclaimer
Disclaimer The contents set out in this material are prepared based on generally acknowledged economic, social and other conditions, and on certain assumptions deemed rational by HEROZ, Inc. and may therefore be subject to change without prior notice due to changes in the managerial environment or f