Neural Group Inc. · TSE:4056

Neural — Neural Pocket — Q1 FY2021 Earnings Presentation

25 slides from Neural's earnings presentation, May 14, 2021

Slide 1: Financial Results Briefing Material FY2021 Q1
Financial Results Briefing Material FY2021 Q1 (ended Mar 31st, 2021) Neural Pocket Inc. May 14th, 2021 Copyright © Neural Pocket Inc. All Rights Reserved. 1
Slide 2: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy
• Business Overview • FY2021 Q1 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 2
Slide 3: The future we envision: AI Smart City Revolution
The future we envision Neural Pocket provides digital services for physical spaces to enhance real world experiences through introducing intelligent AI cameras “AI Smart City Revolution” Copyright © Neural Pocket Inc. All Rights Reserved. 3
Slide 4: A large new Smart City market is being created
A large new Smart City market is being created Global Smart City market size is Asia is the source of growth for approx. $1-2 trillion USD smart cities Smart City Market Growth Rate by Region (2019-2024) Research Company / Global Market Report Name Size*1 Allied Market Research In 2025 Smart Cities
Slide 5: Edge AI overcomes many of the problems traditional Cloud AI faces
Edge AI is a technology that overcomes many of the problems traditional Cloud AI faces Cloud AI Edge AI Conventional approach Our approach Original data (video, etc.) before AI analysis Metadata after AI analysis (text data) Real-time marketing and security data AI analysis in a large cloud server L
Slide 6: A large macro trend from the Cloud to the Edge is expected
A large macro trend from the Cloud to the Edge is expected Growth forecast Edge vs Cloud share forecast *1*2 (2018→2025) 2025 175ZB Edge 2018 33ZB Edge 25% 40X growth (CAGR*3 69%) Cloud 10% Cloud 90% Edge Cloud 1.5X growth 75% (CAGR*3 6%) • As data volumes explode, processing data in the cloud becom
Slide 7: Edge AI technology contributes to carbon neutrality and SDGs
Edge AI technology contributes to carbon neutrality and SDGs Power consumption for AI processing per 100 cameras*1 1500W Data communication Low power consumption Cooling -90% contributing to the reduction of Data CO2 emissions processing 130W Cloud AI Edge AI processing processing Comparison of powe
Slide 8: AI services contributing to CO2 emission reduction and SDGs
We provide AI enabled services that contribute to the reduction of CO2 emissions and the pursuant of SDGs Traffic congestion Reduction of mitigation clothing waste Enabling work-from-home Awarded for contribution to the reduction of waste of clothes and improvement of gross profit margin of apparel
Slide 9: Six smart city-related AI services
We have developed and provide six smart city-related AI services People Flow, Crime Prevention Parking and Mobility 3D City Maps Signage Advertisements WFH Security Fashion Analysis Copyright © Neural Pocket Inc. All Rights Reserved. 9
Slide 10: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy
• Business Overview • FY2021 Q1 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 10
Slide 11: Domestic and overseas smart city-related engagements
Domestic and overseas smart city-related engagements Domestic Muroran City Regional revitalization through AI-based urban planning and tourism Muroran City Tawara-motocho, Nara Pref. Tourism promotion through visualization of usage of tourism facilities New Analyzing people flow in a Local developme
Slide 12: Joined 3D city model project promoted by the Ministry of LITT
Government Agency Collaboration Joined 3D city model project promoted by the Ministry of LITT*1 Vehicle and pedestrian traffic visualization Vehicle counting Pedestrian border counting border • Joined 3D city model project "PLATEAU" promoted by the Ministry Map position plotting via of LITT*1 as a p
Slide 13: Collaboration agreement with Taisho University
Academic Institution Collaboration Collaboration agreement with Taisho University • Signed industry-university collaboration agreement with Taisho University Taisho University • Promote data utilization and digitization in university education and research activities • In addition to campus smartifi
Slide 14: Installation of Digi-Park to Tokyo Ryutsu Center
Industry Collaboration Installation of “Digi-Park” to Tokyo Ryutsu Center On-site traffic detection A Group Company • Installed "Digi-Park," an AI parking and vehicle management solution, in Tokyo Ryutsu Center’s Logistics Center*1 • Visualization of on-site traffic through camera images enabling ef
Slide 15: Optimizing training data collection and AI detection accuracy with CG technology
Technology Development Optimizing training data collection and AI detection accuracy with CG technology (TSE: 4056) (NYSE: U) 【Conventional approach】【Approach utilizing CG (Computer Graphics)】 Collect training data one by one Generating countless training data from a single CG Picture #1 Picture #2
Slide 16: Compliance with AI development and data security policies
Technology Development Compliance with AI development and data security policies Compliance with government Certified information security management issued guidelines for data system in place to manage and protect data acquisition and AI development Privacy Mark ISO/ISMS Certification Japan Industr
Slide 17: Status of Patent Acquisition
Technology Development Status of Patent Acquisition Domestic Domestic International Granted Pending Pending Cumulative Cumulative In preparation 12 patents 10 patents 4 patents 2 patents newly granted in Q1 2021 （As of Mar. 2021）（As of Mar. 2021） (As of Mar. 2021) Copyright © Neural Pocket Inc. All
Slide 18: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy
• Business Overview • FY2021 Q1 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 18
Slide 19: FY2021 Q1 quarterly trajectory
FY2021 Q1 ended Mar. quarterly trajectory Net Sales Operating Profit Operating Profit Margin (百万円) (百万円) (%) 287 251 184 29.5% 29.7% 163 163 24.0% 126 15.5% 90 74 85 9.3% 62 16.5% 44 32 25 27 11 -21 -52 -71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2019 FY202
Slide 20: FY2021 Q1 Statement of Income
FY2021 Q1 ended Mar. Statement of Income FY2020 Q1 FY2021 Q1 Increase Increase (million JPY) ended Mar. ended Mar. (amount) (percentage) Net sales 163 287 +124 +76.4% Operating profit 25 85 +60 +237.4% % of net sales 15.5% 29.7% Ordinary profit 24 84 +59 +246.2% % of net sales 14.9% 29.3% Net profit
Slide 21: FY2021 Q1 Balance Sheet
FY2021 Q1 ended Mar. Balance Sheet FY2020 Q4 FY2021 Q1 Increase (million JPY) ended Dec. ended Mar. (amount) Total current assets 1,673 1,780 +106 Cash and cash deposits 1,424 1,455 +30 Total non-current assets 247 263 +16 Total assets 1,920 2,044 +123 Total liabilities 714 695 (18) Interest bearing
Slide 22: Future growth strategy (Illustration of business growth)
Future growth strategy (Illustration of business growth) Self-propelling sales growth in collaboration with business partners (Outstanding growth) Public Today Service creation and listing stable sales expansion Founding (Continuous growth) Jan. 2018 Aug. 2020 Approx. 2022 Business Deepening of Busi
Slide 23: Management policy for FY2021: From fee-based to unit-based sales
Management policy for FY2021 From fee-based to unit-based sales In addition to expansion through individual contracts with companies/ governments, we aim to accelerate sell-propelling sales from generalized services 【Theme 1】【Theme 2】【Theme 3】 Expansion of co- Towards easy-to-use Commitment to AI
Slide 24: Disclaimer
Disclaimer Handling of the material This document contains forward-looking statements. These statements are based solely on the information available at the time the statements were made. Furthermore, such statements are not guarantees of future results and are subject to risks and uncertainties. Ac

Neural Pocket — Q1 FY2021 Earnings Presentation on 6ix

Neural — Neural Pocket — Q1 FY2021 Earnings Presentation

Slide 1: Financial Results Briefing Material FY2021 Q1

Slide 2: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy

Slide 3: The future we envision: AI Smart City Revolution

Slide 4: A large new Smart City market is being created

Slide 5: Edge AI overcomes many of the problems traditional Cloud AI faces

Slide 6: A large macro trend from the Cloud to the Edge is expected

Slide 7: Edge AI technology contributes to carbon neutrality and SDGs

Slide 8: AI services contributing to CO2 emission reduction and SDGs

Slide 9: Six smart city-related AI services

Slide 10: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy

Slide 11: Domestic and overseas smart city-related engagements

Slide 12: Joined 3D city model project promoted by the Ministry of LITT

Slide 13: Collaboration agreement with Taisho University

Slide 14: Installation of Digi-Park to Tokyo Ryutsu Center

Slide 15: Optimizing training data collection and AI detection accuracy with CG technology

Slide 16: Compliance with AI development and data security policies

Slide 17: Status of Patent Acquisition

Slide 18: Business Overview; FY2021 Q1 Business Progress; Performance Highlights and Growth Strategy

Slide 19: FY2021 Q1 quarterly trajectory

Slide 20: FY2021 Q1 Statement of Income

Slide 21: FY2021 Q1 Balance Sheet

Slide 22: Future growth strategy (Illustration of business growth)

Slide 23: Management policy for FY2021: From fee-based to unit-based sales

Slide 24: Disclaimer

Slide 25: Copyright © Neural Pocket Inc. All Rights Reserved.