Slide 1: Financial Results Presentation for the Fiscal Year ending May 31, 2016
Financial Results Presentation for the Fiscal Year ending May 31, 2016 (From June 2015 to May 2016) Gunosy Inc. July 14, 2016
Slide 2: 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. Please note that actual results may differ materially from the forecasts due to v
Slide 3: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 3
Slide 4: 1. Summary of Quarterly Results
1. Summary of Quarterly Results Both sales and profits increased from the previous quarter, with rises in sales to 1,520 million yen and operating income to 200 million yen. Continued to mark a record high and grew steadily. Sales in Gunosy Ads: 1,080 million yen QoQ: Up 15% Sales Sales in Ad Ne
Slide 5: 1. Quarterly Results: Trends
1. Quarterly Results: Trends Achieved higher sales and profits for the third consecutive quarter with sales at 1,520 million yen (up 28% QoQ) and operating income at 200 million yen (up９％ QoQ). (Million yen) 1,600 1,521 1,400 1,191 1,200 1,006 Sales 995 1,000 892 880 790 800 706 626 637 591 Operat
Slide 6: 1. Quarterly Results: Consolidated Statement of Income
1. Quarterly Results: Consolidated Statement of Income Sales in Gunosy Ads increased 15％ quarter on quarter due to a steady increase in the number of active users. Sales in ADNW rose 55% quarter on quarter, reflecting initiatives with external media partners, and contributed significantly to the
Slide 7: 1. Quarterly Results: Cost Structure
1. Quarterly Results: Cost Structure Advertising expenses increased by 100 million yen, taking into account the recent status of sales, etc. and the cost-benefit performance. Rents increased due to increased office floor space for accommodating a rise in the number of employees. (Unit: Million y
Slide 8: 1. Quarterly Results: Trends in the Number of Downloads
1. Quarterly Results: Trends in the Number of Downloads (Cumulative total in Japan at the end of each quarter) Steady increase in the number of downloads continued. (10,000 DLs) 1,600 1,436 1,400 1,302 1,191 1,200 1,084 977 1,000 866 800 746 600 515 400 352 185 200 91 144 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 9: 1. Quarterly Results: Status of Advertisers
1. Quarterly Results: Status of Advertisers The number of active advertisers increased significantly as a result of the development of new agencies. The composition ratios of “Beauty Care” and “Health” increased with the addition of advertisers associated with the new agencies. Share of advertiser
Slide 10: 1. Quarterly Results: Active Affiliated Media in Ad Network
1. Quarterly Results: Active Affiliated Media in Ad Network Affiliated media continued to increase, making a significant contribution to the rise in sales. Structure of Ad Network Number of active affiliated media (Number of media) 600 Users 536 495 Advertiser Displaying ads Delivery Media A 500 4
Slide 11: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 11
Slide 12: 2. Full Year Results: Consolidated Statement of Income
2. Full Year Results: Consolidated Statement of Income (Chronological Trends) Sales came to 4,590 million yen, up 45% year on year, attributable to growth in sales in ADNW, which was launched in the previous term, in addition to steady growth in sales in Gunosy Ads. Operating income came to 560
Slide 13: 2. Full Year Results: Consolidated Statement of Income (Comparative Analysis)
2. Full Year Results: Consolidated Statement of Income (Comparative Analysis) Operating income increased 370 million yen from a year ago, attributable to a significant increase in sales and the impact of a reduction in advertising expenses, which was partially offset by increases in personnel and
Slide 14: 2. Full Year Results: Consolidated Balance Sheet
2. Full Year Results: Consolidated Balance Sheet Due to proactive investments for the purpose of overseas expansion and development into peripheral businesses, intangible assets (goodwill) and investments and other assets (investment securities) increased. (Unit: Million yen) End of previous End o
Slide 15: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 15
Slide 16: Expansion in User Scale (Collaboration with KDDI)
3. Overview of Business and Strategies: Expansion in User Scale (Collaboration with KDDI) “News Pass” has been developed as a business alliance with KDDI CORPORATION (“KDDI”). This product is more focusing on the users to read the formal news such as economic and politics. Making maximum use of
Slide 17: Increased Advertising Revenues (Alliances with Ad Tech Partners)
3. Overview of Business and Strategies: Increased Advertising Revenues (Alliances with Ad Tech Partners) Alliances with external ad tech partners, including CyberAgent, Inc. and Supership Inc., were aggressively promoted with the aim of increasing advertising revenues for the optimization of adver
Slide 18: Overseas Expansion (Through Investments and Management Support)
3. Overview of Business and Strategies: Overseas Expansion (Through Investments and Management Support) Commenced overseas expansion, building on investments to two overseas news app operators. – Indonesia: Acquired shares of Kurio’s stock and started supporting its business management – South Kor
Slide 19: Medium- to Long-Term Image
3. Overview of Business and Strategies: Medium- to Long-Term Image Aim to achieve high rates of growth in News Pass in addition to the existing businesses (Gunosy, ADNW and Game8). Allocate resources (human resources and funds) proactively to new businesses, including overseas expansion, in orde
Slide 20: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 20
Slide 21: 4. Results Forecast
4. Results Forecast The forecasts on a consolidated basis are sales of 6,500 million yen (up 42% YoY), ordinary income of 860 million yen, (up 53% YoY) and net income of 750 million yen (up 24% YoY). Aim to achieve higher sales and profits for three consecutive years, while maintaining high grow
Slide 22: Table of Contents
Table of Contents 1. Quarterly Results 2. Full Year Results 3. Overview of Business and Strategies 4. Results Forecast 5. Supplementary Materials © Gunosy Inc. 22
Slide 23: Company Profile
Company Profile Company name: Gunosy Inc. Business: Development and operation of information circulation service and other media Corporate philosophy: “Optimally deliver information to people around the world” Established: November 14, 2012 Head office: Roppongi Hills Mori Tower, 6-10-1 Roppongi, Mi
Slide 24: Directors
Directors Representative Director and CEO Director and COO Director and CFO Director and CTO Yoshinori Fukushima Yuya Taketani Mitsushige Ito Masakazu Ishibashi Attended the Graduate School of Graduated from the School of Creative Graduated from the Graduate School of Graduated from the Language and
Slide 25: Business Model
Business Model We aggregate data on users’ interests by delivering information via our apps. By using such data, we provide advertisers with a cost-effective advertisement product (Gunosy Ads). We also provide other various marketing solutions that promote the sales of our customers’ products or ser
Slide 26: Business Model: Gunosy Ads
Business Model: ①Gunosy Ads Revenue • Targeting advertisement delivery by • interest cluster • Charging method • Click-guaranteed (CPC = Cost per Click) • Impression-guaranteed (CPM = Cost per Mille) Features • In-feed advertisements (ads inserted into • articles) enhance visibility • Highly frequen
Slide 27: Business Model: Ad Network
Business Model: ②Ad Network Users Advertiser Displaying Delivery ads Media A A Advertiser Media B B Gunosy Advertiser C Ad Network Media C Server Advertiser Media D D Advertiser Media E E In addition to delivering advertisements inside Gunosy (① Gunosy Ads), we release Gunosy Ad Network service, whi
Slide 28: Attributes of Users
Attributes of Users The largest segment is users in their 20s to 30s among both males and females. It is possible to approach the user segment that cannot be reached by mass communication such as TV by utilizing Gunosy. Females approx. Males 40% approx. 60% 60ss and older 60s and older 6% 10s 7% 6