Gunosy, Inc. · TSE:6047

Gunosy — Q1 FY2024/5 Earnings Presentation

46 slides from Gunosy's earnings presentation, October 2023

Slide 1: FY2024/5 Financial Results for Q1
FY2024/5 Financial Results for Q1 株式会社 Gunosy Inc.G u n o s y TSE 東証Prime (6047) ⼀部（証券コード：6047）
Slide 2: INDEX
1. Executive Summary P3 2. Financial Results for FY2024/5 Q1 P 20 3. FY2024/5 Outlook P 26 INDEX 4. Business Overview by Division P 28 5. Company Information P 35 6. Reference Materials P 40 （C） Gunosy Inc. All Rights Reserved. 2
Slide 4: FY2024/5 Q1 Summary
FY2024/5 Q1 Summary Financial Summary Net sales 1,880 Million yen Operating profit -185 Million yen YoY 97.6％ YoY - (Million yen) Net sales Operating profit 14% Percentage of consolidated net sales Gunosy 1,169 -265 24% Game8 456 91 62% Gunosy Game8 Others 254 -11 Others Summary Product KPIs in Guno
Slide 5: Portfolio Summary
Portfolio Summary The profitability forecast for our media business has been lowered, but Game8 is making up for it. The growth potential of "slice" has improved significantly in both the short and medium to long term. In the area of large language models (LLM), "Udekiki", a product for our corporat
Slide 6: Sales Increase / Decrease
Sales Increase / Decrease In Gunosy Ads, the recovery of profitability was slower than expected, resulting in lower sales. Game8 and Others saw both QoQ and YoY sales growth. Details of sales increase/decrease (Million yen) FY2024/5 Difference Factors behind increase/decrease Q1 result YoY QoQ Gunos
Slide 7: Progress Summary of Gunosy's Key KPIs
Gunosy Progress Summary of Gunosy's Key KPIs DAUs increased both YoY and QoQ as the retention rate maintained its post-improvement level. On the other hand, S/D declined both YoY and QoQ due to a slower than expected recovery in profitability. Gunosy Sales DAUs*1 Sales/DAUs YoY 106％ QoQ 101％ YoY 93％
Slide 8: Status of S/D Improvement
Gunosy Status of S/D Improvement The number of new deliveries of programmatic advertising increased as a result of increased sales volumes. On the other hand, the number of suspended deals also increased and direct media buying orders remained weak, resulting in a slower than expected recovery in S/
Slide 9: Gunosy Advertising Expenses and Estimated IRR
Gunosy Advertising Expenses and Estimated IRR As retention rates and user acquisition efficiency remained strong, we made an advertising investment in anticipation of a return to profitability. However, the S/D recovery was delayed and the estimated IRR fell below the investment criteria in July and
Slide 10: Advertising Investment in Gunosy
Gunosy Advertising Investment in Gunosy Given the increased uncertainty around profitability, we intend to raise the IRR criteria and curb advertising investment in Q2. We will reconsider our policy of expanding sales through advertising investment on the assumption that profitability on a non-conso
Slide 11: Game8 (Sales and Operating Profit)
Game8 Game8 (Sales and Operating Profit) Sales in the media solutions business, primarily "game8.jp," remained strong, and both sales and profit continued to increase. In Q2, business is expected to be steady, particularly supported by improved profitability in the overseas media business. (Million
Slide 12: slice Progress on KPIs
slice Progress on KPIs "slice" has been back on the growth track since the completion of the product release that complied with the Digital Lending Guidelines. AUM Focus on growth while controlling risks AUM (outstanding loan balance) Product transition period AUM recorded a temporary decline Organi
Slide 13: Topics about slice
slice 2 Topics about "slice" (1) A full PPI (*) license was acquired in August 2023. Product upgrades have been implemented. (2) The Reserve Bank of India (RBI) approved the merger of slice with North East Small Finance Bank (NESFB). 1 Acquisition of a full PPI license 2 Approval of RBI regarding me
Slide 14: Acquisition of a Full PPI License
slice Acquisition of a Full PPI License Product has been updated upon acquisition of a full PPI (prepaid payment instrument) license. The user experience is now that users can deposit money into their slice account at any time and use it for purchases and money transfers. Service enhancements with f
Slide 15: RBI Approves Merger with NESFB
slice RBI Approves Merger with NESFB 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 16: Banking Licenses in India
slice (Reference Information) Banking Licenses in India India has a small number of banks relative to its population. Therefore, holding a banking license is considered rare and highly valued. This is also the first time an Indian fintech company has entered a private sector bank. The number of bank
Slide 17: LLM Progress in New Business
LLM Progress in New Business We developed the first of our Large Language Models (LLM) solution products to support all organizations facing the challenges of driving internal IT utilization and digital transformation. “Udekiki”, a generative AI service focused on business support, will be available
Slide 18: Overview of Udekiki
LLM Overview of “Udekiki” The user experience we have designed allows users to easily use ChatGPT without requiring any special knowledge for their business. By closing the productivity gap between those who are skilled in using generative AI and those who are not, we aim to help more businesses dri
Slide 19: Udekiki Expected Future Developments
LLM “Udekiki” Expected Future Developments In Phase 1, we will reach out to a wide range of customers and help them promote business efficiency through the use of ChatGPT. In Phase 2 and beyond, we will strengthen the link with Gunosy AI, which we are developing in-house, to provide even more advanc
Slide 21: FY2024/5 Consolidated Results for Q1
FY2024/5 Consolidated Results for Q1 Sales of Gunosy Ads declined YoY and QoQ due to changes in the advertising market, etc. In Q1, advertising investment was increased by 120 million yen YoY, resulting in a decrease in operating profit. (Million yen) QoQ comparison YoY comparison FY2024/5 Q1 FY2023
Slide 22: Gunosy's Key KPIs
Gunosy's Key KPIs The product improvements we have been working on since the previous fiscal year have helped the retention rate to maintain the improved figures and increased significantly YoY. Although we have taken measures to improve S/D, the recovery has been slower than expected. Product side
Slide 23: Total Number of Active Users (MAUs)
* Total Number of Active Users (MAUs) MAUs increased slightly due to the positive effects of measures to improve the retention rate, which we have been working on since the previous fiscal year. For NewsPass and au Service Today, we will conduct promotions in cooperation with KDDI to increase the nu
Slide 24: Breakdown of Net Sales
Breakdown of Net Sales*1 While Game8's sales grew steadily YoY and QoQ, Gunosy Ads' sales declined significantly, resulting in a YoY and QoQ decline in sales for the Group as a whole. We will continue to work on improving the profitability of Gunosy Ads and aim to improve its performance. Others Gam
Slide 25: Cost Structure
Cost Structure Advertising expenses increased QoQ due to increased investment in Gunosy. Other costs are tightly controlled with no major changes. (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 1,866 537 580 540 515 550 639 668 1,090 561 673 810 1,600 779
Slide 27: FY2024/5 Results Forecast (Consolidated)
FY2024/5 Results Forecast (Consolidated) The sales progression rate in Q1 was 23.9%. Based on the improved profitability of Gunosy, we have shifted to a policy of temporarily reducing advertising investment in Q2. We will reconsider our advertising investment policy from Q3 while reviewing profitabi
Slide 29: Media Business Gunosy
Media Business Gunosy Improvements have been made to segment users by frequency of use and method of use, and to achieve a proper balance of "information you should know" and "information you want to know" articles according to the characteristics of each segment. We will continue to improve the acc
Slide 30: Media Business au Service Today
Media Business au Service Today In addition to a campaign to promote the use of au Service Today as a portal application, a joint promotion with KDDI was conducted. The number of new users increased recently. Ponta point present campaign Number of new users Since Sep. 15 Various measures taken to in
Slide 31: Media Business Ad Network (ADNW)
Media Business Ad Network (ADNW) While impressions grew QoQ, in line with last year's trend, cost per mille (CPM) remained weak. Number of Impressions and CPM (Million imp) 60,000 ¥40 ¥31.33 imp CPM ¥29.06 ¥27.70 45,000 30,000 ¥20 ¥15.14 50,988 ¥12.59 46,718 ¥11.48¥11.91¥11.87 ¥11.86 43,325 ¥11.14 ¥
Slide 32: colleize, a Service of Smarprise
Game8 “colleize”, a Service of Smarprise “colleize", a service provided by Smarprise (a Game8 subsidiary), contributed to the growth of “Other sales" for the entire Group. New initiatives, such as the provision of original products, are also being promoted. “colleize” is an "e-commerce platform" spe
Slide 33: Investment
Investment Investment *1 The overall cumulative investment remains in the range of approximately 5 billion yen. Caster Co., Ltd. went public on October 4. We view this as a positive event for the company's future growth potential and intend to continue to hold the stock. * Investments made since Oct
Slide 34: New Business YOU IN
New Business YOU IN Spending per customer is increasing as a result of the expanded product range and price revisions. We are targeting growth in Q2 and beyond by encouraging shoppers interested in well-being to buy our products for their own use and by capturing demand during the winter season. Pro
Slide 37: History
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 business 2012 2
Slide 38: 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 New • Gunosy • Game8 • Gunosy Capital • LLM • NewsPass • Smarprise • YOU IN • Au Service Today • Data accumulated since the inception of the company DAT
Slide 39: Investment / Media business 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. 39
Slide 41: 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, Yuya Taketani Yuya Taketani Director and Chief Investment Office
Slide 42: 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(N&C) in December 2021. N&C N&C Representative Chief D
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: Status of the Estimated Value of the Investment Portfolio
Investment 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) 25,741 26,546 *1 Accumulated investment “Accumulated investment” and *2 “Estimated value + Sale Estima
Slide 45: 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 46: Optimally deliver information to people around the world
Optimally deliver information to people around the world

Gunosy — Q1 FY2024/5 Earnings Presentation on 6ix

Gunosy — Q1 FY2024/5 Earnings Presentation

Slide 1: FY2024/5 Financial Results for Q1

Slide 2: INDEX

Slide 3: Executive Summary

Slide 4: FY2024/5 Q1 Summary

Slide 5: Portfolio Summary

Slide 6: Sales Increase / Decrease

Slide 7: Progress Summary of Gunosy's Key KPIs

Slide 8: Status of S/D Improvement

Slide 9: Gunosy Advertising Expenses and Estimated IRR

Slide 10: Advertising Investment in Gunosy

Slide 11: Game8 (Sales and Operating Profit)

Slide 12: slice Progress on KPIs

Slide 13: Topics about slice

Slide 14: Acquisition of a Full PPI License

Slide 15: RBI Approves Merger with NESFB

Slide 16: Banking Licenses in India

Slide 17: LLM Progress in New Business

Slide 18: Overview of Udekiki

Slide 19: Udekiki Expected Future Developments

Slide 20: Financial Results for FY2024/5 Q1

Slide 21: FY2024/5 Consolidated Results for Q1

Slide 22: Gunosy's Key KPIs

Slide 23: Total Number of Active Users (MAUs)

Slide 24: Breakdown of Net Sales

Slide 25: Cost Structure

Slide 26: FY2024/5 Outlook

Slide 27: FY2024/5 Results Forecast (Consolidated)

Slide 28: Business Overview by Division

Slide 29: Media Business Gunosy

Slide 30: Media Business au Service Today

Slide 31: Media Business Ad Network (ADNW)

Slide 32: colleize, a Service of Smarprise

Slide 33: Investment

Slide 34: New Business YOU IN

Slide 35: Company Information

Slide 36: Mission: Optimally deliver information to people around the world

Slide 37: History

Slide 38: Gunosy Group Business Portfolio

Slide 39: Investment / Media business growth image

Slide 40: Reference Materials

Slide 41: Overview of Gunosy Inc.

Slide 42: Our Management Team

Slide 43: From Gunosy Way to Gunosy Pride

Slide 44: Status of the Estimated Value of the Investment Portfolio

Slide 45: Disclaimer

Slide 46: Optimally deliver information to people around the world