Slide 1: FY2022/5 Financial Results
FY2022/5 Financial Results Gunosy Inc. TSE Prime (6047) July 15, 2022 July 15, 2022
Slide 2: INDEX
1. Executive Summary P3 2. Financial Results for FY2022/5 P 10 3. Business Overview by Division P 16 INDEX 4. Progress of Medium-Term Management Plan and FY2023/5 Outlook P 25 5. Management Structure P 37 6. Reference Materials: Overview of Gunosy Inc. P 41 （C） Gunosy Inc. All Rights Reserved. 2
Slide 3: Executive Summary
Executive Summary （C） Gunosy Inc. All Rights Reserved. 3
Slide 4: FY2022/5 Full-Year Summary
FY2022/5 Full-Year Summary Summary Both net sales and operating profit exceeded the forecast. Net sales 8,998 million yen Compared to the forecast 102.3 % Operating profit 412 million yen Compared to the forecast 206.2 % Significantly higher Factors • Gunosy Ads results were higher than expected, du
Slide 5: Background of Better-Than-Expected Results
Background of Better-Than-Expected Results Net sales exceeded the forecast due to KPI improvement and success in capturing the needs of March, when advertising demand increases. In light of increasing uncertainty in the macro-environment and other factors, we placed priority on securing profits and
Slide 6: Factors behind the Upside: Improved Profitability per User
Factors behind the Upside: Improved Profitability per User Profitability per user showed improvement throughout the period. DAUs declined slightly as advertising expenses were curbed considering the growing uncertainty of the macro-environment and other factors, and the achievement of the sales plan
Slide 7: Factors behind the Upside: Significant Improvement in Retention Rate in Gunosy
Factors behind the Upside: Significant Improvement in Retention Rate in Gunosy The percentage of new users reached approx. 33% of the total users as of May 2022. The retention rate of new users showed steady improvement throughout the year since the resumption of advertising investment. New users as
Slide 8: "slice" Progress on KPIs
"slice": Progress on KPIs Overwhelming growth has continued. AUM showed significant growth of 700% YonY, while maintaining low default rates. Approx. AUM growth +70% Number of registered users AUM (outstanding 12 million+ loan balance) users (7 million+ at the time of the previous AUM growth announc
Slide 9: "slice" Topics
“slice” Topics Despite the difficult financing environment due to changes in the market, a large-scale fundraising of $50 million was completed. Following the dispatch of directors, slice became an equity-method affiliate of Gunosy. Topics 1 Topics 2 Fundraised in an additional round Gunosy Dispatch
Slide 10: Financial Results for FY2022/5
Financial Results for FY2022/5 （C） Gunosy Inc. All Rights Reserved. 10
Slide 11: FY2022/5 Consolidated Results for Q4
FY2022/5 Consolidated Results for Q4 In Q4, sales and profit marked QonQ growth. Advertising expenses were curbed in line with higher sales, partly reflecting higher sales in March, when advertising demand increases. Although full-year sales increased YonY, profit declined due to an increase of adve
Slide 12: Total Number of Active Users (MAU)
Total Number of Active Users *(MAU) Gunosy's MAUs declined slightly in QonQ due to curbed advertising expenses. MAUs of NewsPass and au Service Today remained stable. LUCRA NewsPass+au Service Today Gunosy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2019/5 FY2020/5 FY2021/5 FY2022/5 * Average
Slide 13: Breakdown of Net Sales
*1 Breakdown of Net Sales Gunosy Ads posted a significant sales increase QonQ, partly backed by advertising demand in March. Game8 also posted record-high sales. Others (Million yen) Game8 ADNW 4,500 *2 Gunosy Ads 178 19 136 254 334 128 280 223 240 206 232 234 317 256 3,000 1,357 1,480 1,422 1,459 1
Slide 14: Cost Structure
Cost Structure Advertising investment decreased by 160 million yen QonQ. We are continuing to hire personnel to solidify our organization to achieve medium- to long-term growth. Other costs continue to be strictly controlled. 3,781 3,646 3,388 3,362 3,307 (Million yen) 3,109 1025 2,908 1,111 3,000 9
Slide 15: Game8
Game8 In Q4, both domestic and overseas business remained strong, partly due to the release of major game titles, and sales reached a record high. On the other hand, in FY2023/3 Q1, sales and profits are expected to decline due to a drop in demand for browsing walkthroughs for existing game titles.
Slide 16: Business Overview by Division
Business Overview by Division （C） Gunosy Inc. All Rights Reserved. 16
Slide 17: Media Business Gunosy
Media Business Gunosy “2022 Election of the House of Councilors” was featured as a topic in the "Good to Know" section of the Gunosy app. A new corporate section was established to better understand KPI trends and user behavior to quickly and efficiently implement quality measures. Special project i
Slide 18: Media Business au Service Today
Media Business au Service Today The recommendation tab was redesigned to improve convenience for au users. Continuous improvements in UI, UX, and algorithms resulted in steady profitability per user throughout the year. Recommendation tab was redesigned Status of profitability Profitability per user
Slide 19: Media Business Ad Network (ADNW)
Media Business Ad Network (ADNW) The imps marked a high level due to successful media development efforts through organizational reinforcement that were carried out up to the previous quarter. Number of Impressions and CPM (Million imp) 60,000 \36.84 \40 \35.75 \31.33 imp CPM \29.71 \29.98 \29.06 45
Slide 20: Game8 Group Game8
Game8 Group Game8 We are expanding our support for game publishers by providing them solutions. At the same time, we are enhancing our organizational structure and are considering global expansion of our business. Solutions we offer Support to solve various challenges in the game lifecycle from game
Slide 21: New Business YOU IN
New Business YOU IN Multiple sales channels were developed for both online and offline shopping. We will continue to meet the demand for casual gifts, while catering to formal gifts at hotels, wedding halls, and other venues. We also want to support the purchase of products for personal use by those
Slide 22: Investment "slice" Product Update
Investment “slice” Product Update The UPI (Unified Payments interface) payments feature, a key infrastructure in India for small value transactions, was launched. User engagement is expected to improve. UPI feature launched Infrastructure for small-value transactions that makes it easy to make payme
Slide 23: Investment
Investment Investment *1 The overall cumulative investment remains in the range of approximately 5 billion yen. *1 Despite the challenging financial environment for growth companies, the overall portfolio continues to maintain a high degree of soundness. * Investments made since October 2018, when t
Slide 24: Investment Portfolio
Investment Investment Portfolio May 2019 May 2020 May 2021 May 2022 Investment ratio 0.98 0.99 1.11 5.36 (Million yen) *1 Accumulated investment 25,741 *2 Estimated value + Sale price “Accumulated 5.4 investment” and times “Estimated value + Sale price” 4,805 813 808 1,867 2,068 253 249 Investme nt
Slide 25: Progress of Medium-Term Management Plan and FY2023/5 Outlook
Progress of Medium-Term Management Plan and FY2023/5 Outlook （C） Gunosy Inc. All Rights Reserved. 25
Slide 26: Mid-term Target (Announced in July 2021)
Mid-term Target (Announced in July 2021) The target indicator in the Mid-term Management Plan announced in 2021 is maintained. We aim to achieve a market capitalization of 100 billion yen over the mid- to long-term through achieving growth across the Gunosy Group as a whole. Enhance corporate value
Slide 27: Business Environment
Business Environment In determining the short- and medium-term management policy, we updated our assessment of the business environment from the time the Mid-term Management Plan targets were developed as of January 2022, mainly with respect to the following issues. Assessment of the business enviro
Slide 28: Near-term Investment Policy in Light of Changes in the Business Environment
Near-term Investment Policy in Light of Changes in the Business Environment At present, we will execute growth investments with an eye to achieving consolidated/non- consolidated operating surplus. We will consider switching to bolder growth investments once we have confirmed improved growth and pro
Slide 29: Update on Figures in Medium-term Management Plan
Update on Figures in Medium-term Management Plan Due to the change in investment policy in view of changes in the business environment, FY2023/5 results are expected to be lower than the forecast disclosed in Q2. However, based on the status of existing/new businesses, we aim to achieve the mid-term
Slide 30: FY2023/5 Results Forecast (Consolidated)
FY2023/5 Results Forecast (Consolidated) We expect sales growth and profit decline YonY. slice, our equity method affiliate, is expected to post a loss, but extraordinary gain is expected to be recorded in connection with the Series C round. As a result, we assume a large YonY increase in net income
Slide 31: Differences from the Medium-term Management Plan disclosed in Q2
Differences from the Medium-term Management Plan disclosed in Q2 In light of the uncertain macro-environment, we shifted to a policy of curbing advertising investments and placing priority on securing operating profit. As a result, both sales and gross profit in the next fiscal year are expected to
Slide 32: Policy: Media Business
Policy: Media Business We will focus on improving retention rate and profitability through ongoing UI/UX enhancements and the creation of our unique value by leveraging our own resources. In order not to miss the opportunity to increase advertising investment, we want to be prepared with a business
Slide 33: Policy: Game8 Group
Policy: Game8 Group Anticipating changes in the business environment, such as the maturation of the smartphone game market, the management structure was changed: The CEO was replaced by Shunsuke Sawamura (former COO), from Kentaro Nishio (founder of Game8). (See p. 40 for details). We will strive to
Slide 34: Investment Policy
Investment Policy Approximately 5 billion yen has been invested to date. slice, one of our strategic investments, has grown into a key growth driver in the medium to long term. We will continue to explore investments in India and Japan with the aim of finding the "next slice". Examine mainly seed- t
Slide 35: slice
slice Shift to a growth strategy focused on profitability while maintaining growth. Although loss may be accounted for under the equity method for the full year, the business itself is expected to return to profit by the end of this fiscal year. Business policy of slice Previous policy Future policy
Slide 36: Supplementary Information on Consolidated Full-year Forecasts
Supplementary Information on Consolidated Full-year Forecasts Due to profit and loss accounted for under equity method, ordinary loss is expected to be posted, but extraordinary income to be recorded in connection with the execution of slice's funding round in June 2022. As a result, the profit/loss
Slide 37: Management Structure
Management Structure （C） Gunosy Inc. All Rights Reserved. 37
Slide 38: Our Management Team
Our Management Team The management structure for FY2023/5 is as follows. We are continuing to strengthen our governance, including the transition from a non-statutory Compensation Committee to a non-statutory Nomination and Compensation Committee (*) in December 2021. (*) N&C N&C N&C Representative
Slide 39: Structural Changes to Further Strengthen Future External Investments
Structural Changes to Further Strengthen Future External Investments The position of Chief Investment Officer was established to grow and accelerate the investment business. At the same time, we aim to establish a structure that combines bold decision-making with appropriate governance by clearly se
Slide 40: Game8 Group
Game8 Group Anticipating changes in the business environment, the CEO was changed from Nishio, founder of Game8, to Sawamura, former COO. Representative Director, Director Representative Director and President and CEO of Chairman（Founder） Gunosy Shunsuke Sawamura Kentaro Nishio Graduated from the Sc
Slide 41: Reference Materials: Overview of Gunosy Inc.
Reference Materials: Overview of Gunosy Inc. （C） Gunosy Inc. All Rights Reserved. 41
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, Hiroki Maniwa Esta
Slide 43: 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 44: Effect of Application of Equity Method on "slice" in FY2022/5
Effect of Application of Equity Method on "slice" in FY2022/5 (Supplementary information) Points 1. Our voting interest in “slice” is in the range of 15%-20% as defined in "Accounting Standard for Equity Method". We started application of the equity method upon completion of dispatch of directors to
Slide 45: Gunosy's Advertising Investment (FY22/5 Q3 – FY23/5)
Gunosy's Advertising Investment (FY22/5 Q3 – FY23/5) Policy External factors Advertising investment with a • Continue to take a cautious stance in order to achieve consolidated operating view to achieving a profit in view of increasing uncertainty in the financial markets and other areas. consolidat
Slide 46: 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 47: Optimally deliver information to people around the world
Optimally deliver information to people around the world