Gunosy, Inc. · TSE:6047
Gunosy — Q2 FY2023/5 Earnings Presentation
37 slides from Gunosy's earnings presentation, Jan 13, 2023
Slide 1: FY2023/5 Financial Results for Q2
FY2023/5 Financial Results for Q2 Gunosy Inc. TSE Prime (6047) January 13, 2023
Slide 2: Index
1. Executive Summary P3 2. Financial Results for FY2023/5 Q2 P 14 INDEX 3. FY2023/5 Outlook P 20 4. Business Overview by Division P 25 5. Reference Materials: Overview of Gunosy Inc P 31 C Gunosy Inc. All Rights Reserved. 2
Slide 3: Executive Summary
Executive Summary C Gunosy Inc. All Rights Reserved. 3
Slide 4: Financial Summary for FY2023/5 Q2
Financial Summary for FY2023/5 Q2 Summary Net sales 2,001 million yen Operating profit -79 million yen QonQ 103.9 YonY 95.1 QonQ - YonY - 1 Net sales increased QonQ due to improved profitability of Gunosy Ads, mainly in the “Gunosy” app. 2 Advertising investment in the "Gunosy" app was increased fro
Slide 5: Factors behind Sales Increase / Decrease
Factors behind Sales Increase / Decrease Gunosy Ads net sales increased QonQ due to steady progress in improving profitability and increased investment in advertising. Game8 and Others also posted sales increases. Sales increase / decrease by Segment (Million yen) FY2023/5 Difference Factors behind
Slide 6: Policy Regarding Advertising Investment in Gunosy
Gunosy Policy Regarding Advertising Investment in Gunosy In November, as planned, we used our advertising budget ahead of schedule to verify the return on investment. As a result, user acquisition was stronger than expected and exceeded our return-on- investment criteria, so we made the decision to
Slide 7: Background Leading to Decision to Increase Advertising Expenses
Gunosy Background Leading to Decision to Increase Advertising Expenses During the 1H, we carefully evaluated the status of KPI improvement at Gunosy app and actually verified the increase in advertising investment. As a result, we determined that the investment level could be raised while fully sati
Slide 8: Advertising Expenses and Estimated IRR
Advertising Expenses and Estimated IRR Through the improvement of Gunosy's products, the estimated IRR for 1H has consistently exceeded our investment criteria. We doubled our advertising investment in November (at the ¥120 million/month level), and the results it yielded also exceeded our criteria.
Slide 9: Gunosy's Basic KPIs on an Improving Trend
Gunosy Gunosy's Basic KPIs on an Improving Trend Profitability of Gunosy app per user has been on an upward trend since September through the improvement of ad logic. It has been further improved by increased advertising investment since November. Financial data Gunosy’s net sales Profitability per
Slide 10: Indicators Referred to When Making Advertising Investment Decisions
(Reference) Indicators Referred to When Making Gunosy Advertising Investment Decisions We make our decisions based on the improvement of KPIs and the final return on investment. The advertising investments made since November were examined with KPIs set to criteria that would provide a satisfactory
Slide 11: Timeline since the Release of the Guidelines
slice Timeline since the Release of the Guidelines For "slice," the product experience was changed to adhere to the Digital Lending Guidelines issued by the Reserve Bank of India (RBI), and the new product release was completed on time. The transition to the new product is well underway with no majo
Slide 12: Release of New Products
slice Release of New Products The new products, released on December 1 and adhering to the Digital Lending Guidelines, provide a flexible and seamless payment experience. slice UPI slice borrow slice mini Most seamless UPI Your account for everyday Most flexible way to borrow experience payments C G
Slide 13: slice Progress on KPIs
slice Progress on KPIs Business at "slice“ is operating under controlled marketing expenses. Furthermore, the transition to new products has been underway since September, and temporary declines in AUM are continuing. AUM Commencement of investment control Sep: RBI Guidelines issued AUM (outstanding
Slide 14: Financial Results for FY2023/5 Q2
Financial Results for FY2023/5 Q2 C Gunosy Inc. All Rights Reserved. 14
Slide 15: FY2023/5 Consolidated Results for Q2
FY2023/5 Consolidated Results for Q2 In Q2, net sales increased QonQ as a result of improved profitability of Gunosy Ads and a recovery of Game8's performance. Ordinary profit improved QonQ due to a steady decrease in the loss at "slice". (Million yen) QonQ YonY FY2023/5 Q2 FY2023/5 Q1 QonQ FY2023/5
Slide 16: Total Number of Active Users (MAU)
Total Number of Active Users (MAU)* MAU of Gunosy app continued to increase due to an improvement in retention rates and increased advertising investment since November. MAU of au Service Today increased supported by the campaign. QonQ LUCRA Growth NewsPass + au Service Today Gunosy Q1 Q2 Q3 Q4 Q1 Q
Slide 17: Breakdown of Net Sales
Breakdown of Net Sales*1 Net sales of Gunosy Ads, Game8, and Others increased QonQ. Meanwhile, net sales of ADNW decreased. (See p.5 for details). Others (Million yen) Game8 ADNW 4,500 *2 Gunosy Ads 178 19 223 240 128 317 3,000 1,357 1,480 1,298 251 320 221 192 203 168 194 246 275 441 153 457 530 36
Slide 18: Cost Structure
Cost Structure In November, we began to increase advertising expenses for the Gunosy app business. While communication expenses increased in line with the growth in the number of active users, costs are strictly controlled. There has been no significant change QonQ. 3,646 3,781 3,362 (Million yen) 1
Slide 19: Game8
Game8 Although operating profit declined YonY following Q1 due to lower sales in the media business, which has a high gross margin, the solutions business remained strong resulting in operating profit on a recovery track QonQ. In Q3, we expect to see a positive impact from major game titles. (Millio
Slide 20: FY2023/5 Outlook
FY2023/5 Outlook C Gunosy Inc. All Rights Reserved. 20
Slide 21: Revision of FY2023/5 Results Forecast (Consolidated)
Revision of FY2023/5 Results Forecast (Consolidated) The sales forecast was revised downward, mainly due to the weak performance of ADNW. We decided to increase our advertising investment in the Gunosy app based on the strength of the current KPIs, keeping in mind the uncertainty of the macro enviro
Slide 22: Background of Revision of Results Forecasts: Operating Profit
Background of Revision of Results Forecasts: Operating Profit (Consolidated) Operating profit (initial forecast and revised forecast) (Million yen) POINT 1 Increase due to Gunosy app 3 • Sales of Gunosy app increased driven by higher profitability and increased Cost reduction Decrease advertising ex
Slide 23: Investment Policy Updates
Investment Policy Updates In the media business, the return on investment showed progress due to the improvement of KPIs in Gunosy app. Therefore, we reassessed the growth potential of the Gunosy business and updated our investment policy, focusing on increasing investment as a medium- to long-term
Slide 24: Medium Term Management Plan Released in FY2022/5 Q2
Medium Term Management Plan Released in FY2022/5 Q2 • Following the revision of the full-year forecast for FY23/5, we will review the target values in the Medium-Term Management Plan announced on January 14, 2022. • While there are significant delays in the ADNW business, improvements in the media b
Slide 25: Business Overview by Division
Business Overview by Division C Gunosy Inc. All Rights Reserved. 25
Slide 26: Media Business Gunosy
Media Business Gunosy Original characters were released on December 26, 2022. They will be featured in tutorials etc. within the Gunosy app to make it more fun and exciting. Original characters Gunopen Tokumaro Kuwasy C Gunosy Inc. All Rights Reserved. 26
Slide 27: Media Business au Service Today
Media Business au Service Today A point campaign was launched for au users with the aim of encouraging them to establish the habit of reading news articles. Profitability per user remained stable. Ponta point present campaign Status of profitability Profitability per user remained stable May Jun Jun
Slide 28: Media Business Ad Network (ADNW)
Media Business Ad Network (ADNW) CPM has been weak since Q1. From Q3 onward, we will strive to increase the number of customers by strengthening our organizational capabilities through cross-selling with Gunosy Ads. Number of Impressions and CPM (Million imp) 60,000 ¥40 ¥31.33 imp CPM ¥29.06 ¥27.70
Slide 29: Investment
Investment Investment *1 The overall cumulative investment remains in the range of approximately 5 billion yen. There was no major change in the overall portfolio except for one new investment in an Indian company. * Investments made since October 2018, when the investment project was launched, are
Slide 30: New Business YOU IN
New Business YOU IN As a part of new market exploration, new products deriving from tea were developed and released. Inquiries increased as a result of media coverage, and the number of business partners increased. Sales by business Develop new products operators Sparkling tea Partnership CHEERS-MOO
Slide 31: Reference Materials: Overview of Gunosy Inc.
Reference Materials: Overview of Gunosy Inc. C Gunosy Inc. All Rights Reserved. 31
Slide 32: 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 33: 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 Representative Chief Direct
Slide 34: 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 35: Investment Portfolio
Investment Portfolio (Reposted from FY2022/5 Financial Results released on July 15, 2022) May 2019 May 2020 May 2021 May 2022 Investment ratio 0.98 0.99 1.11 5.36 (Million yen) Accumulated investment *1 25,741 *2 Estimated value + Sale price “Accumulated 5.4 investment” and times “Estimated value +
Slide 36: 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 37: Optimally deliver information to people around the world
Optimally deliver information to people around the world