Gunosy, Inc. · TSE:6047
Gunosy — Q2 FY2022/5 Earnings Presentation
44 slides from Gunosy's earnings presentation, Jan 14, 2022
Slide 1: FY2022/5 Financial Results for Q2
FY2022/5 Financial Results for Q2 Gunosy Inc. First Section of The Tokyo Stock Exchange (Stock Code: 6047) January 14, 2022
Slide 2: INDEX
1. About “slice”, Our Investment in India P3 2. Financial Results for FY2022/5 Q2 P 18 3. Business Overview by Division P 26 INDEX 4. Medium-Term Management Plan P 35 5. Reference Materials: Overview of Gunosy Inc. P 41 C Gunosy Inc. All Rights Reserved. 2
Slide 3: About slice: Our Investment in India
About “slice” Our Investment in India C Gunosy Inc. All Rights Reserved. 3
Slide 4: Investment Summary
Investment Summary "slice" is performing extremely well currently. As a strategic investment, it is expected to drive discontinuous growth for the Gunosy Group. Valuation/Equity Ratio Over about $ 1 billion Investment Purpose Stockholding ratio: 17 + Strategic (As of the end of the current Q2) Inves
Slide 5: The Most Recent Funding / Additional Investment
The Most Recent Funding / Additional Investment In December 2021, “slice” completed funding from Tiger Global, Insight Partners, and others and reached unicorn status with a valuation of over $1bn. Gunosy has already decided to make a follow- on investment of up to $10mn. TIGER GLOBAL INSIGHT PARTNE
Slide 6: (Reference) Basic information on GaragePreneurs
(Reference) Basic information on GaragePreneurs A start-up established in India in 2015. It started with providing BNPL services for college students and now offers "slice", Credit card challenger mainly for young people. Basic information of the company. Company name GaragePreneurs Internet Pvt. Lt
Slide 7: Highlights of slice
Highlights of "slice" Market Market environment surrounding "slice" Business Product, strengths, and management team KPI KPIs that continue to grow Growth Growth potential to step out of the potential Unicorn
Slide 8: The Status of Unicorns in the Global Market
Market The status of Unicorns in the Global Market There are more than 800 unicorns in the world, and most of them are in FinTech and Internet Software & Services sectors. Number of Business domain Examples unicorns Fintech domain Companies that have There are around 830 accounts for the recently re
Slide 9: Companies Listed in the FinTech Domain
Market Companies Listed in the FinTech Domain Some fintech companies, such as Nubank and Affirm, achieved huge market capitalization by going public. Nubank Affirm Nubank is a digital bank in Brazil that started offering Affirm is a U.S. fintech company that primarily provides credit cards with no a
Slide 10: Many Unicorns Emerging in India
Market Many Unicorns Emerging in India As of 10/13/2021, there are 68 unicorns in India, 30 of which reached unicorn status in 2021, making India a market to watch. Number of unicorns Companies that reached Number of global in India unicorn valuation during 2021 unicorns by country * 68 companies 30
Slide 11: The market that slice is Participating in
Market The market that "slice" is Participating in In India, attractive growth opportunities exist because most people do not have access to credit cards due to difficulties in obtaining credit and complicated acquisition procedures. Credit card issuance rate in India The number of credit cards issu
Slide 12: Provide an Easy Post-Payment Experience
Business Provide an Easy Post-Payment Experience As a Pay Later card for young people in India, it provides an easy post-payment experience regardless of the usage situation. As a pay-later card, provides an easy post-payment experience regardless of the usage scenario
Slide 13: Product Image
Business Product Image Together with physical cards, we provide (1) value that is closely connected to users' lives and (2) a financial experience that goes beyond mere payment through intuitive and simple digital credit card payments. Issue cards through a Manage expenses in a Intuitive UI/UX quick
Slide 14: Strength in slice
Business Strength in “slice” "slice" has gained a strong support from millennials and Gen Z, the volume zone of India's population. It has also achieved a low default rate through its unique credit know-how. Age distribution of the Indian population 60+ 10% Background of rapid growth 40-59 Unique an
Slide 15: Management Team of slice
Business Management Team of "slice" A highly talented management team, mostly millennials, has revolutionized the financial experience for young people as a Credit Card Challenger. Founder COO CTO & CEO ex- Flipkart Product Manager ex- Independent commodity trader ex- Myntra Engineering Director Chi
Slide 16: Main KPIs
KPI Main KPIs AUM achieved significant growth YonY. In particular, growth accelerated after the follow-on investment by Gunosy in 2021/6. The number of cards issued per month is one of the highest in India. Number of credit cards issued per month AUM (outstanding loan balance) Approx. AUM growth 200
Slide 17: Potential Future Growth
Growth Potential Future Growth It is expected to go beyond the realm of unicorns and grow significantly to become India's leading fintech company. Mid- to Past Present long-term Long term- Redesigning the Provide BNPL Credit card Leader in the credit personal finance experience for challenger for yo
Slide 18: Financial Results for FY2022/5 Q2
Financial Results for FY2022/5 Q2
Slide 19: FY2022/5 Q2 Summary
FY2022/5 Q2 Summary Compared to the 1H forecast, both sales and profit exceeded the plan. Steady progress is being made in the preparations to achieve medium- to long-term growth. • Although MAU remains weak in the aftermath of the Olympics Media Business and other factors, the profitability of Guno
Slide 20: FY2022/5 Consolidated Results for Q2 (vs. forecast)
FY2022/5 Consolidated Results for Q2 (vs. forecast) Business results exceeded 1H forecast, which was due to improved profitability per user of Gunosy, strong performance of ADNW, and solid sales growth even during the expansion phase of COVID-19. (Million yen) FY2022/5 FY2022/5 Progression rate 1H r
Slide 21: FY2022/5 Consolidated Results for Q2 (vs. results)
FY2022/5 Consolidated Results for Q2 (vs. results) Although sales declined QonQ due to weak MAUs in some services, 1H sales increased YonY driven by the contribution from au Service Today. The YonY decline in 1H profits is due to YonY increase in advertising expenses by approximately 440 million yen
Slide 22: Total Number of Active Users (MAU)
* Total Number of Active Users (MAU) MAU increased 26.2% YonY driven by the contribution of au Service Today, although it decreased QonQ in the aftermath of the Olympics. Gunosy's users are being replaced by quality users while maintaining the scale of MAU. * Average for each quarter of MAU (monthly
Slide 23: Breakdown of Net Sales
Breakdown of Net Sales Net sales increased YonY with the contribution of au Service Today. The QonQ decline was largely due to temporary factors such as the post-Olympics pullback, seasonal factors (Gunosy Ads), and changes in business terms in the creator area (Game8), and we are aiming for a rever
Slide 24: Cost Structure
Cost Structure Advertising investment in Gunosy was at the same level as Q1. We resumed investment in recruitment as part of our efforts to build an organization for medium- to long-term growth, but other costs remain strictly controlled. (Million yen) *”Revenue sharing” included in “Others” in FY20
Slide 25: Game8
Game8 In Q2, despite factors causing a decline in sales, such as a change in the contract terms with our affiliated partners in the creator domain, sales increased on a year-on-year basis. We will continue to focus on acquiring medium- to long-term growth drivers such as overseas development. (Milli
Slide 26: Business Overview by Division
Gunosy Business Overview by Division (C) Gunosy Inc. All Rights Reserved. 26
Slide 27: Status of Investment for the Re-growth of Gunosy (1/3)
Media Business Status of Investment for the Re-growth of Gunosy (1/3) Profitability per user showed steady growth following Q1 through the acquisition of new users upon resumption of investment. Financial data Net sales of Gunosy Growing Number of users Profitability per user (Index: DAU) (Index: Sa
Slide 28: Profitability of New Users (2/3)
Media Business Profitability of New Users (2/3) The profitability of new users acquired after the resumption of investment tends to be higher than that of existing users. As a result of our efforts in product relaunch throughout the previous fiscal year, we succeeded in attracting users with a high
Slide 29: Acquisition of New Users after Resumption of Investment (3/3)
Media Business Acquisition of New Users after Resumption of Investment (3/3) The percentage of new users acquired since the resumption of investment in March 2021 has been steady, reaching 24% of the total users as of November 2021. We expect further improvement in profitability through user turnove
Slide 30: Progress in au Service Today
Media Business Progress in au Service Today We are continuing to update the app UI and UX, including the introduction of dark mode and carousel ads, as well as enhance monetization. Profitability per user is steadily improving. Update app UX and enhance monetization Improved user interface to give u
Slide 31: Ad Network (ADNW)
Media Business Ad Network (ADNW) Although sales declined in Q2, CPM is currently on a recovery trend. From Q3 onward, further growth is expected through customer expansion by strengthening the sales network. Number of Impressions and CPM
Slide 32: Progress in Overseas Business
Game8 Group Progress in Overseas Business The number of PVs of game walkthrough content for North America increased due to successful localization and is starting to contribute to sales. We will continue to focus on overseas business in Q3 and beyond. Overseas Business The number of PVs of the overs
Slide 33: Investment
Investment Investment We have invested over 4 billion yen*to date, both overseas and in Japan, and as a limited partner, considering risk and return. “slice”, in which we are making strategic investments, surpassed a valuation of $1 billion in its most recent funding round and became a unicorn statu
Slide 34: New Business YOU IN
New Business YOU IN YOU IN was launched in June 2021 with the concept of "mood pairing tea". In order to expand the scale of the business, we are focusing on developing personalized gifts, such as LINE gifts and the Hometown Tax Donation Program (Furusato Nozei), and developing sales channels for co
Slide 35: Medium-Term Management Plan
Gunosy Medium-Term Management Plan (C) Gunosy Inc. All Rights Reserved. 35
Slide 36: Disclosure of Figures in Medium-Term Management Plan
Disclosure of Figures in Medium-Term Management Plan Assumptions in developing the plan • In the Medium-Term Management Plan announced on July 13, 2021, we mainly released a qualitative strategy. Although the situation is still unpredictable, we are disclosing numerical information to the extent tha
Slide 37: Progress Since the Release of the Previous Medium-Term Management Plan
Progress Since the Release of the Previous Medium-Term Management Plan In FY2022/5 1H, steady progress was made in each of the three business pillars that are expected to drive medium- to long-term growth. Among them, the investment business achieved significant results earlier than expected. Disclo
Slide 38: Target Values in the Medium-Term Management Plan
Target Values in the Medium-Term Management Plan In existing businesses, we plan to achieve 10% growth YonY in both sales and gross profit on a consolidated basis. In the investment business, we will continue to seek out strategic investments and aim for discontinuous growth. Consolidated net sales
Slide 39: FY2022/5 Results Forecast (Consolidated)
FY2022/5 Results Forecast (Consolidated) We are planning for zero operating profit as we pursue further growth in the next fiscal year and beyond, focusing on investments in human resources to strengthen the organization. Compared to 1H, we added 110 million yen in personnel expenses and 60 million
Slide 40: Impact of slice on the Income Statement (Under J-GAAP)
Impact of "slice" on the Income Statement (Under J-GAAP) Points 1. Our voting interest in “slice” is in the range of 15%-20% as defined in "Accounting Standard for Equity Method of Accounting for Investments". We are currently discussing with our auditing firm about our intention to start applying t
Slide 41: Reference Materials: Overview of Gunosy Inc.
Reference Materials: Overview of Gunosy Inc.
Slide 42: Overview of Gunosy Inc.
Overview of Gunosy Inc. Basic Information Representative Director and Chairman, Group Officers: Chief Executive Officer (CEO), Shinji Kimura Company name: Gunosy Inc. Representative Director and President, Yuya Representative: Shinji Kimura Taketani Yuya Taketani Director and CFO, Yuki Maniwa Establ
Slide 43: Disclaimer
Disclaimer Forward-looking statements contained in these materials are prepared from judgments and assumptions based on information available at the time of preparing the materials, and do not guarantee their accuracy. These materials contain financial data that have not been audited by an independe
Slide 44: Optimally deliver information to people around the world
Optimally deliver information to people around the world