Slide 1: Financial Results Briefing Material FY2020
Financial Results Briefing Material FY2020 (ended Dec 31, 2020) Neural Pocket Inc. February 12, 2021 Copyright © Neural Pocket Inc. All Rights Reserved. 1
Slide 2: Agenda
• Business overview • FY2020 performance • Business highlights • FY2021 forecast Copyright © Neural Pocket Inc. All Rights Reserved. 2
Slide 3: Company information
Company information Company Neural Pocket Inc. Established January 22, 2018 Location Headquarters Tokyo Midtown Hibiya, Hibiya Mitsui Tower 32F, 1-1-2, Yurakucho, Chiyoda-ku, Tokyo, Japan Singapore branch 9 Straits View, Marina One West Tower, #06-07, Singapore 018937 Representative Roi Shigematsu E
Slide 4: History of Neural Pocket
History of Neural Pocket Founding Singapore office launch IPO (Public listing) Jan ’18 May ’20 Aug ‘20 2018 2019 2020 2021 Oct ’20 Biz WFH Security Dev • Launch Remo Desk to support work from home Aug ’20 Parking/ Mobility Initiate dev. of parking space availability tracing Dec ’19 People Flow • Kic
Slide 5: AI Smart City Revolution
What Neural Pocket is trying to achieve Neural Pocket provides digital services for physical spaces to enhance our real world experiences through introducing intelligent AI cameras “AI Smart City Revolution” Copyright © Neural Pocket Inc. All Rights Reserved. 5
Slide 6: A new major market is being created in the field of smart cities
A new major market is being created in the field of smart cities Global Smart City market size is Asia is the source of growth for approx. 100-200 trillion yen smart cities Smart City Market Growth Rate by Region (2019-2024) Research Company / Global Market Report Name Size*1 Allied Market Research
Slide 7: Edge AI solves many of the problems traditional Cloud AI faces
Edge AI is a technology that solves 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 Larg
Slide 8: The world is undergoing a large shift from the Cloud to the Edge
The world is undergoing a large shift from the Cloud to the Edge 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%) • Data created and processed at the edge today is limit
Slide 9: Data volume will grow rapidly in smart cities, accelerating migration to the Edge
Data volume will grow rapidly in smart cities, accelerating the migration from the Cloud to the Edge Peter Levine (General Partner) Data explosion associated Cloud becomes inefficient as with IoT will cause data volume increases the end of Cloud computing Computer power will become The role the Clou
Slide 10: We provide six smart city-related services
We have developed and provide six smart city-related services People Flow, Crime Prevention Parking and Mobility 3D City Maps Signage Advertisements WFH Security Fashion Analysis Copyright © Neural Pocket Inc. All Rights Reserved. 10
Slide 11: People flow and crime prevention services are essential for smart cities
People flow and crime prevention services are essential for smart cities Face recognition for security and Measurement of people flow Identification of people flow lost child detection in outdoor public spaces with temperature detection 4000 3000 Average number of pedestrians per hour People flow de
Slide 12: Parking and mobility services are universal across countries
Parking and mobility services are universal across countries Real-time occupancy detection using AI cameras Commercial parking SMARK Isesaki operated by Tokyo Tatemono (left: daytime, right: nighttime) Parking management system screen Logistics facilities managed by Prologis Automatic generation of
Slide 13: 3D city mapping services accelerate mobility services
3D city mapping services accelerate mobility services Collects anonymized data from 100,000+ users on a daily basis, to then be provided to customers Speed Up and down Sensors built into smartphone AI analysis through external camera info *1 - GPS (Latitude and longitude) - Information on surroundin
Slide 14: Our AI signage connects real advertisements to the Internet
Our AI signage connects real advertisements to the Internet AI camera Facility info & ads Large LCD Edge AI box Guest attribute Measuring of analysis ad views Original advertising and content management system (CMS) Guest traffic analysis conducted within signage Edge computing enables automatic dat
Slide 15: RemoDesk ensures safety and security for WFH operations
RemoDesk ensures safety and security for WFH operations Utilize built-in PC camera Remote monitoring to ensure WFH governance Examples of detection items Built-in camera Absence Spoofing Peeking Smart phone usage Utilize external camera External camera Eating Raising hand • By simply logging into th
Slide 16: Fashion analysis enables product planning, EC marketing, and O2O
Fashion analysis enables product planning, EC marketing, and O2O* Item detection from social media Automatic classification of detected items Trends over seasons and years Contributions across the country Winner of Deep Learning Business Award • Digitizing apparel product Awarded for contribution to
Slide 17: Our business model
Our business model Contracted Co-Business Development SaaS/ Licensing Development (AI delivery) • Develop solutions based • Providing solutions through • Share sales by developing on customer requirements a subscription model medium-to-long term, • Submission of software, • Number of new large-scale
Slide 18: Agenda
• Business overview • FY2020 performance • Business highlights • FY2021 forecast Copyright © Neural Pocket Inc. All Rights Reserved. 18
Slide 19: Net sales grew by 144.9%
Net sales grew by 144.9% (million JPY) 762 144.9% growth 311 Despite the rapid changes in social conditions caused by the new coronavirus, the company has achieved sales growth largely in line with its business plan, thanks to its strong customer base and diversification of services. FY2019 FY2020 (
Slide 20: The impact of Covid-19 has varied across services
The impact of Covid-19 has varied across services, but the overall impact is balanced Impact of Covid-19 across businesses in FY2020 Periodical Increase in delay demand Signage Advertisement 3D City Maps People Flow WFH Security Parking/ Mobility Fashion Analysis Impact of refraining As companies re
Slide 21: FY2020 ending Dec. Statement of Income
FY2020 ending Dec. Statement of Income FY2019 FY2020 Increase Increase (million JPY) ended Dec. ended Dec. (amount) (percentage) Net sales 311 762 +451 +144.9% Turned Operating profit -133 170 +303 profitable % of net sales 22.4% Turned Ordinary profit -139 148 +287 profitable % of net sales 19.4% T
Slide 22: FY2020 ending Dec. difference from forecast
FY2020 ending Dec. difference from forecast FY2020 FY2020 ended Dec. ended Dec. Difference Difference (million JPY) forecast results (amount) (percentage) Net sales 776 762 -13 -1.7% Operating profit 165 170 +5 +3.0% % of net sales 21.3% 22.4% Ordinary profit 139 148 +9 +6.5% % of net sales 17.9% 19
Slide 23: FY2020 ending Dec. quarterly results
FY2020 ending Dec. quarterly results Net Sales Operating Profit Operating Profit Margin (millions JPY) (millions JPY) (percentage) 251 184 29.5% 163 163 24.0% 126 90 15.5% 74 62 9.3% 16.5% 44 32 25 27 11 -21 -52 -71 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2019 FY202
Slide 24: FY2020 ending Dec. Balance Sheet
FY2020 ending Dec. Balance Sheet FY2019 FY2020 Increase (million JPY) ended Dec. ended Dec. (amount) Total current assets 919 1,673 +753 Cash and cash deposits 825 1,424 +599 Total non-current assets 137 247 +110 Total assets 1,056 1,920 +864 Total liabilities 431 714 +283 Interest bearing debt*1 37
Slide 25: FY2020 ending Dec. Cash Flows
FY2020 ending Dec. Cash Flows FY2019 FY2020 (million JPY) ended Dec. ended Dec. Cash flows from △198 138 operating activities Cash flows from △46 △142 investing activities Cash flows from 860 603 financing activities Increase of cash and cash 615 599 equivalents Cash and cash equivalents 825 1,424 a
Slide 26: Increase in free float weight
Increase in free float weight August 20, 2020 October 31, 2020 December 31, 2020 (Immediately after IPO) (at time of Q3 earnings) (end of Q4) Shares sold by Shares sold by IPO*1 IPO*1 VCs etc.*2 IPO*1 VCs etc.*3 (Company research) (Company research) 4.6% 4.6% 4.5% 10.6% 14.3% Total # of Total # of T
Slide 27: Agenda
• Business overview • FY2020 performance • Business highlights • FY2021 forecast Copyright © Neural Pocket Inc. All Rights Reserved. 27
Slide 28: Urban development and smart city activities
Urban development and smart city activities People Flow Muroran Japan Domestic City Tawara-motocho, Nara Pref. Muroran City Tourism promotion through Regional revitalization Osaka City Umekita 2nd visualization of usage of through AI-based urban Phase Development tourism facilities planning and tour
Slide 29: Public Sector: Participating in Japan 3D City Model
Public Sector: Participating in “Japan 3D City Model" led by the People Flow Ministry of Land, Infrastructure, Transport and Tourism Until now, information on cities has been divided among different sectors, and there has been a limit to the information that can be obtained. However, in the future,
Slide 30: Private Sector: Collaboration with real estate developers for parking lot control
Private Sector: Deepening collaboration with real estate Parking/ Mobility developers for parking lot control solutions Example of initial Live visualization of parking status installation Location XXX Copyright © Neural Pocket Inc. All Rights Reserved. 30
Slide 31: Private sector: Collaboration with major real estate developer on people flow
Private sector: Collaboration with major real estate developer People Flow across multiple applications for people flow analysis Collaboration in the Collaboration in urban area of logistics development • At the end of 2019, a demonstration was conducted • Collaboration in “Umekita Phase 2,” a large
Slide 32: RemoDesk: Launched commercial provision of WFH call center support system
RemoDesk: Launched commercial provision of WFH call center WFH Security support system Absence Smart phone usage Peeking Spoofing Function 1 Security Raising hand Apology Escalated Concentrated Function 2 Business Behavior Smiling Fatigue Loss of focus Troubled Function 3 Health Monitoring Unengaged
Slide 33: Fashion Apparel: Realizing O2O experiences using AI tech
Fashion Apparel: Realizing O2O*1 experiences using AI tech Fashion Analysis AI-based demand forecasting and product planning Analysis of visitors and Trend/ product information information broadcasting Apparel EC engine Trend/ product in physical stores through information utilizing AI MD AI signage
Slide 34: Agenda
• Business overview • FY2020 performance • Business highlights • FY2021 forecast Copyright © Neural Pocket Inc. All Rights Reserved. 34
Slide 35: Future growth strategy
Future growth strategy (Illustration of business growth) Self-running 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 Busines
Slide 36: FY2021 ending Dec. forecast
FY2021 ending Dec. forecast FY2020 FY2021 ended Dec. ending Dec. Difference Difference (million JPY) results forecast (amount) (percentage) Net sales 762 1,256 493 +64.7% Operating profit 170 380 209 +122.5% % of net sales 22.3% 30.3% +7.9pt Ordinary profit 148 370 221 +149.5% % of net sales 19.4% 2
Slide 37: 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
Slide 38: Copyright © Neural Pocket Inc. All Rights Reserved.
Copyright © Neural Pocket Inc. All Rights Reserved. 38