Neural Group Inc. · TSE:4056

Neural — Neural Pocket — Q3 2021 Earnings Presentation

81 slides from Neural's earnings presentation, Nov 12, 2021

Slide 1: Financial Results Briefing Material FY2021 Q3
Financial Results Briefing Material FY2021 Q3 (ended Sep 30th, 2021) Neural Pocket Inc. Nov 12th, 2021 Copyright © Neural Pocket Inc. All Rights Reserved. 1
Slide 4: Our management team
Our management team Name Career overview Former Partner at McKinsey, working in 11 countries including Japan, Germany, and the U.S as CEO leader in IoT and AI field. Founded Neural Pocket in January 2018 with the goal of realizing the Roi Shigematsu digitization of the real world through AI. He hold
Slide 5: History of Neural Pocket
History of Neural Pocket We have been developing our core technology and deploying unique AI services in rapid succession since inception. 1st term 2nd term 3rd term 4th term (FY2018 ended Dec.) (FY2019 ended Dec.) (FY2020 ended Dec.) (FY2021 ending Dec.) Service related milestones Development and D
Slide 6: AI Smart City Revolution
Applying proprietary AI libraries to enable smart cities 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. 6
Slide 7: Smart City-related AI service market expected to reach 1T USD
Smart City-related AI service market expected to reach 1T USD The industrial market related to AI in general is expected as 87 trillion yen in Japan (2030). In addition, the Smart City market, is expected to be worth 100 trillion yen worldwide, with massive investments into the space. Collective AI
Slide 8: We develop proprietary AI-enabled image recognition technology
We develop proprietary AI-enabled image recognition technology Through the development of proprietary detection logic and generation of original training data, the company has a large number of compact, high-quality proprietary AI libraries adequate for installation in edge devices. Marketing Securi
Slide 9: Edge AI can overcome many issues traditional Cloud AI faces
Edge AI can overcome many issues traditional Cloud AI faces We have focusing on the development of "edge AI" which has many advantages over traditional cloud AI, namely low cost, low latency, low power consumption, and enhanced privacy protection. Cloud AI Edge AI Conventional approach Our approach
Slide 10: Technological evolution of AI and positioning of Edge AI
Technological evolution of AI and the positioning of “Edge AI” While AI, which has been attracting attention since 2012, has settled down, "edge AI" is still in its infancy and is expected to undergo further technological innovation and mass adoption. AI technology evolution and the implications for
Slide 11: Rapid expansion of Edge is expected
Rapid expansion of Edge is expected The growth of the edge data is expected to significantly outpace the growth of the cloud, with an annual growth rate of 69%. Edge vs Cloud share forecast *1*2 Growth forecast Through 2018 to 2025 Through 2018 to 2025 2025年 Edge 175ZB*3 CAGR*4 2018年 69% 33ZB*3 Edge
Slide 12: FY2021 Q3 key highlights
FY2021 Q3 key highlights Sales growth has continued to progress whilst maintaining a high profit margin. In addition, we continue to construct the business’s foundation to further scale our business, including the execution of our first M&A. Revenue growth Profitability (Gross profit) Employees*1 Q1
Slide 13: FY2021 Q3 ended Sep. performance trajectory
FY2021 Q3 ended Sep. performance trajectory In FY2021 Q3 cumulatively, sales grew 53% compared to last year. Achieved steady growth in both sales and operating income. (million JPY) +53% Net sales Operating profit 784 511 185 150 96 0 -144 2018 Q3 2019 Q3 2020 Q3 2021 Q3 (Cumulative) (Cumulative) (C
Slide 14: FY2021 Q3 ended Sep. Statement of Income
FY2021 Q3 ended Sep. Statement of Income Achieved steady sales and profit growth while maintaining high profit margins. FY2020 Q3 FY2021 Q3 ended Sep. ended Sep. Increase Increase (million JPY) (cumulative) (cumulative) Amount Percentage Net sales 511 784 +272 +53.3% Gross profit 466 643 +176 +37.8%
Slide 15: Applying edge AI technology to 3 domains
Applying edge AI technology to 3 domains to create unique value We are enabling a more convenient society through applying our core edge AI technology to various domains. Our two main service domains are "AI Media Platform" and "AI Digi Solutions“. 3 Service Domains AI x Signage Media AI x Social In
Slide 16: Revenue trajectory per service domain
Revenue trajectory per service domain Since inception, the company has achieved steady sales growth while promoting the development of various seeds that constitute "AI Media Platform" and "AI Digi Solutions". Through FY2021, we are selectively promoting activities to evolve these seed technologies
Slide 17: Quarterly trajectory of gross profit and EBITDA
Quarterly trajectory of gross profit and EBITDA Promoting revenue growth while maintaining high gross profit margin and EBITDA margin. Going forward, we plan to prioritize sales growth while maintaining current profitability. Gross Profit EBITDA (million JPY) Gross profit margin Gross profit EBITDA
Slide 18: Quarterly cost (COGS and SG&A)
Quarterly cost (COGS and SG&A） Approximately half of total costs are allocated to technology development and service development (personnel and R&D costs). 235 COGS Depreciation Others 202 197 Rent 177 Subcontract fees R&D Labor 140 138 137 114 112 115 104 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2019 end
Slide 19: Customer base
Customer base*1 We have constructed a solid customer base providing services across a wide range of industries, mainly to major corporations, public institutions and local governments. Advertising Real Estate Public services, Government Kamakura City MURORAN CITY Taisho University IT, Telecom, Tradi
Slide 20: Public appearances at many public organization sponsored events
Publc app at many public organization sponsored events Participation in events to promote our visibility and presence in the field of AI-enabled urban development. AI technology ▪ Soft Bank World 2021 ▪ Japan Council of Shopping Centers Business conference ▪ JR East Mobility Transformation Consortiu
Slide 21: List of member organizations
List of member organizations Leading AI smart city activities as an active member of various industry associations. Smart City related Ministry of Land, Infrastructure, Transport and Tourism Smart City Public-Private Partnership Platform Kamakura City Smart City Public Private Sector Research Associ
Slide 22: Trajectory of employees
Trajectory of employees*1: Continue to strengthen personnel to ensure sustainable growth Since inception, the organization has been steadily expanding with a focus on engineers. The ratio of engineers among the total workforce is around 70%, where we attract excellent AI talent globally. 31engineers
Slide 23: Profile of development functions and technical personnel
Profile of the development functions and technical personnel who support our technology development A team of engineers with diverse backgrounds support the development of functions such as AI logic research and development, edge operation systems, ad content management systems, front-end, back- end
Slide 24: Company group structure
Company group structure In Oct. we established a subsidiary, Neural Engineering Inc., and in Nov. we acquired 100% of the shares of Focus Channel Inc. to make it a wholly owned subsidiary, transforming Neural Pocket from a non-consolidated company to a group company. Consolidation of financial resul
Slide 25: Patent acquisition status
Patent acquisition status Strategically acquiring patents regarding core technologies to increase service defensibility. Also applied for international patents for particularly important technologies, in foreseeing overseas business development. Domestic Granted Domestic Pending Have been granted In
Slide 26: Agenda
• Business Overview and FY2021 Q3 Highlights • Business Progress Per Service Domain • AI Media Platform • AI Digi Solutions • Other AI Services • Mid-Term Business Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 27
Slide 27: Business progress for AI Media Platform domain
Business progress for AI Media Platform domain After steadily growing the installation base for "AI Media Platform“ the business recently greatly progressed through the acquisition of Focus Channel Inc. in Nov. 2021. We will continue installation at an accelerated pace, aiming to become one of the l
Slide 28: Market environment: Digital signage expects significant growth
Market environment: Digital signage expects significant growth Outdoor advertising (OOH advertising) is the third largest market after TV advertising, and within that, digital signage is a very attractive market, especially with significant growth expected in the future. Domestic advertising market
Slide 29: Huge existing potential for digital signage installation
Market environment: Huge existing potential for digital signage installation across various urban locations There is an inexhaustible list of potential locations for digital signages to be installed across the city. Growth is expected both through increase in share among existing OOH advertising*1 a
Slide 30: Characteristics of Neural Pocket's AI signage
Characteristics of Neural Pocket’s AI signage We developed AI signage equipped with (1) remote control and management functions for advertising and (2) effectiveness measurement functions that solve current issues in the outdoor advertising market. EdgeAICamera Large LCD Facility info display & ads
Slide 31: Remote content distribution and signage terminal management
Remote content distribution and signage terminal management Our in-house content management system (CMS) enables remote control of all signage terminals at once, ensuring smooth content distribution and stable operation. IoT signage operation at the world's highest level is achieved. Proprietary con
Slide 32: Measuring effectiveness of OOH advertising with AI cameras
Measuring the effectiveness of OOH advertising with AI cameras Edge processing makes it possible to analyze and measure the effectiveness of outdoor advertising while respecting privacy, and will enable marketing analysis at the level of Internet advertising. Visualization of AI viewing analysis adv
Slide 33: Number of units of signage installed to date
Number of units of signage installed to date In addition to the official launch of the service in November 2021, the number of installed units increased rapidly with the acquisition of Focus Channel Inc. 286 20 new units 20 installed after the service-in. FC 214 installed 122 119 103 97 94 97 97 95
Slide 34: Full-scale entry into digital signage through Focus Channel acquisition
Full-scale entry into the digital signage business through the acquisition of Focus Channel Inc. Expanded signage installation to high-grade residential apartments in addition to previously installed commercial facilities and office buildings. Characteristics of apartment signages Total of 200+ buil
Slide 35: Creating significant business synergies within the group
Creating significant business synergies within the Neural Pocket group By combining the strengths of both Neural Pocket and Focus Channel, there are significant opportunities to create business synergies within the signage media domain, starting with high grade apartment signages. One and only in hi
Slide 36: Business scheme: Example for apartment signages
Business scheme: Example for apartment signages In the signage business, by becoming the media owner, the company can take a more proactive role in managing the media, collaborating with advertising agencies, and expanding the business at an accelerated speed. Media side Advertiser side management C
Slide 38: Media overview
Media overview Delivering content to residents of high-end urban apartments. We will deliver your message to sensitive residents of urban apartments. Locations Household reach Population reach The company operates in over 220 condominiums, 220 50,000 110K~ buildings households mainly in Tokyo. A lif
Slide 39: Locations
Locations Located in popular areas, mainly in the 23 wards of Tokyo. Expanding business to apartments in popular areas. List of apartments installed (excerpt) ■Chuo-ku ■Shingawa, Meguro-ku • The Tokyo Towers (Mid Tower) • Shinagawa Seaside Residence • The Tokyo Towers (Sea Tower) • Oase Shinagawa Re
Slide 40: Locations (Apartment list)
Locations (Apartment list) The Tokyo Towers (Mid Tower) Urban Flats Shibaura (Esty Maison Esty Maison Oshima The Park Habio Shinagawa-Togoshi Royal Parks Hanakoganei Shibaura) The Tokyo Towers (Sea Tower) Comforia Toyosu Residia Higashi Shinagawa Price Hill Esty Maison Azabu Nagasaka Kachidoki The T
Slide 41: Audience Profile
Audience Profile Repeatedly reach fashion-conscious and highly motivated business people. Household income 20M+ JPY 70% of the respondents live in urban Below 8M JPY condominiums with annual household 7% 9% incomes of 10 million yen or more. Since 15-20M JPY 8-10M JPY most of the condominiums are fo
Slide 42: Media Contents
Media Contents In order to increase user view rates we deliver sophisticated content that meets the lifestyles of apartment residents alongside advertisements. Copyright © Neural Pocket Inc. All Rights Reserved. 43
Slide 43: Advertising effectiveness
Advertising effectiveness A high brand lift can be obtained, contributing to the recognition and understanding of products and services. Cognitive impact Understanding of services regarding advertising and products promoted Approx. x Approx. x Non- Residents Residents Non- Residents Residents I‘ve h
Slide 45: Customer voices (advertisers)
Customer voices (advertisers) “The targeting effect is significant and leads to much better results than via other advertising.” “We were able to deliver advertising that directly appealed to the target audience. and succeeded in developing our business.” “We have seen the effect of signage in attra
Slide 46: Media characteristics
Media characteristics Impression Frequency Targeting Stable impressions with Located in the line of daily Advertising possible in high-grade no influence of Covid-19 activities and can repeatedly apartments where conventional appeal to all residents. posting is unallowed Measurable Reasonable Cross-
Slide 47: Revenue drivers for AI Media Platform business
Revenue drivers for AI Media Platform business Revenues are based on advertising revenue, which can be broken down into revenue per signage, multiplied by the total number of signages installed for KPI management. AI Media Number Revenue Platform of per Biz Total signages signage Revenue installed •
Slide 48: Revenue per signage trajectory
Revenue per signage trajectory In terms of revenue per unit of signage, there is an opportunity to increase sales. On the other hand, since the cost side is basically fixed, the profit ratio will improve year by year as sales per unit grows. Increase in revenue per unit through • Improvement of ad p
Slide 49: Number of installed signages
Number of installed signages We aim to expand the business by adding 2,000 units in high-end apartments and office buildings, mainly in the Tokyo and Kansai area. By doing so, we aim to increase the media value and rapidly create one of the largest outdoor advertising medias in Japan. 2,000+ units C
Slide 50: Agenda
• Business Overview and FY2021 Q3 Highlights • Business Progress Per Service Domain • AI Media Platform • AI Digi Solutions • Other AI Services • Mid-Term Business Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 51
Slide 51: Business progress for AI Digi Solutions
Business progress for AI Digi Solutions “AI Digi Solutions” is expanding its track record of actual implementation beyond demonstration experiments in both the private and public sectors. We have also established a subsidiary, Neural Engineering, to accelerate efforts for nationwide implementation.
Slide 52: Overview of AI Digi Solutions
Overview of AI Digi Solutions We currently offer a variety of AI detection functions under two product lines, DigiPark and DigiFlow. Setup is designed according to the site’s needs and provides solutions with stable quality. AI detection menu AI device offering (partial list) DigiPark Occupancy AI e
Slide 53: Market environment for AI Digi Solutions in urban spaces
Market environment: There are a huge market where AI Digi Solutions can be used in urban spaces A huge market is identified for AI Digi Solutions across various location types, where the potential number of locations for further installation is enormous. Number of potential installation sites by loc
Slide 54: Business Scheme: Utilizing Neural Engineering subsidiary
Business Scheme : Utilizing Neural Engineering, a subsidiary, to develop the business AI Digi Solutions often involves installation in parking lots and other installation locations. The company plans to expand the number of installation sites over a wide area by utilizing its subsidiary, Neural Engi
Slide 55: Features of our AI Digi Solutions
Features of our AI Digi Solutions By taking advantage of the features of edge AI, it is possible to achieve high recognition accuracy at a low running cost while protecting privacy. AI recognition Privacy protection Running costs accuracy Analyzed camera images Only send data after AI On-the-fly pro
Slide 56: Parking management solution: DigiPark
Parking management solution: DigiPark With Digipark, customers can freely set up the parking spaces they want to detect with simple and intuitive operations on their side, and can monitor the usage of parking spaces in real time without complicated construction or operations. Real-time visualization
Slide 57: DigiPark: Use case at SMARK Isesaki
DigiPark :Use case at at “SMARK Isesaki (commercial facility)”, operated by Tokyo Tatemono In the use case at SMARK Isesaki, the results of the AI camera monitoring of full-occupancy are (1) freely viewable on the facility's website, and (2) smoothly guided by outdoor signage and full-occupancy ligh
Slide 58: DigiPark: Use case at Logicross Ebina
DigiPark : Use case at “Logicross Ebina (logistics facility)”, operated by Mitsubishi Estate In the use case of this system at Logicross Ebina, the status of truck berth usage and reception was visualized using security camera images, leading to smooth guidance and work instructions, which is useful
Slide 59: People Flow Analysis solution: DigiFlow
People Flow Analysis solution: DigiFlow With Digiflow, customers can freely set the area and content they want to be detected by simply operating the system intuitively and easily, and can use various functions such as human movement and intrusion detection in the designated area without complicated
Slide 60: DigiFlow: Implementation in Kashiwanoha Smart City
DigiFlow :Case study of implementation in "Kashiwanoha Smart City" in collaboration with Mitsui Fudosan In the case of the installation in the Kashiwanoha Campus Station area, approximately 30 AI cameras have been installed in the district to provide services for monitoring and safety in the town, a
Slide 61: Cumulative number of AI Digi Solutions units installed
Cumulative number of AI Digi Solutions units installed and deployed to date and future plans Digipark/Digiflow are steadily increasing the number of units installed in 2021, and from 4Q21 onward, we will further expand the scale of installation and installation by utilizing the established Neural En
Slide 62: AI Digi Solutions adopted in many urban development projects
AI Digi Solutions and other services are being adopted and implemented in many urban development projects. The introduction of AI solutions for both private and public sectors are progressing in many areas, and the use of AI solutions is expanding in actual facility management and urban development
Slide 63: Agenda
• Business Overview and FY2021 Q3 Highlights • Business Progress Per Service Domain • AI Media Platform • AI Digi Solutions • Other AI Services • Mid-Term Business Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 64
Slide 64: Business progress for Other AI Services
Business progress for Other AI Services Business was steady across both fashion and work-from-home solutions. We will continue to refine each solution and work towards expanding customer adoption. 3 Service Domains AI x Signage Media AI x Social Infrastructure DigiPark DigiFlow AI Media AI Digi + Pl
Slide 65: AI MD and RemoDesk are steadily expanding deployment
AI MD and RemoDesk are steadily expanding deployment We continue to promote new sales and upsell to existing customers for both AI MD and RemoDesk. • AI MD continues to be introduced by • After the official launch of the SaaS and existing customers API versions in the first half of 2021, the • Provi
Slide 67: Our vision for business growth
Our vision for business growth We have pursued our business growth vision ever since being publicly listed. Growth plan is described within this quarterly report. • Packaging of AI services in preparation for business scaling beyond FY2022 Self-propelling sales growth in • Formulation and partial di
Slide 68: Management policy for FY2021
Management policy for FY2021 For FY2021, business is being promoted with focus on prioritizing the deepening of the business model and the completion of services versus short-term sales growth. As a result we are establishing a system aimed towards the expansion of sales for generalized services/ so
Slide 69: Comparison of SaaS and AI players
Comparison of SaaS and AI players The adoption of SaaS services has grown, triggered by accelerated digitization and cost reviews in the workplace initiated by the spread of telework due to Covid-19 and other factors. Meanwhile, the timing is ripe for AI companies to rethink the value they provide.
Slide 70: Evolution of our business model
Evolution of our business model Promoting a strong shift away from fee-based revenues to unit-based revenues through FY2021. Accelerating the provision of improved AI services through direct contact with customers' needs as unit-based services grow. Business model based on revenue Business model bas
Slide 71: Trajectory of fee-based vs unit-based sales
Trajectory of fee-based vs unit-based sales Since the completion of AI services in 2021, unit-based sales growth (+138% annually) has surpassed fee- based sales growth (+53% annually). In light of the establishment of a accelerated growth planned for 2022 and beyond, some fee-based projects for Q4 h
Slide 72: Revision of financial forecast for FY2021
Revision of financial forecast for FY2021 ending Dec. We plan to invest progressively to achieve rapid growth in FY2022. To allow for accelerated growth in FY2022, we expect to forego a portion of fee-based sales in Q4 within the range of remaining in the black. FY2021 FY2021 FY2020 ending Dec. endi
Slide 73: Operating profit bridge
Operating profit bridge (Previous forecast vs revised forecast) Full-year forecast has been revised due to the forgoing of a portion of fee-based projects in Q4, growth investments, and M&A associated costs, to allow for future growth beyond FY2022. (million JPY) 380 250 49 40 25 16 Previous Foregoi
Slide 74: Direction of business growth leveraging business characteristics
Direction of business growth leveraging business characteristics Characteristics of AI companies that originate from the technology axis, is that they can readily expand services and execute M&As across industries, to then become comprehensive AI service providers. In addition to organic growth, we
Slide 75: Plan to accelerate and scale business growth
Plan to accelerate and scale business growth We aim to achieve growth by leveraging our core edge AI technologies and services, and acquiring related services in Japan and overseas in an orderly manner. On Nov. 1, 2021, we consummated our first M&A through the acquisition of Focus Channel Inc. In ad
Slide 76: Aiming to become a comprehensive AI service provider
Aiming to become a comprehensive AI service provider Through applying our diverse edge AI technologies across multiple domains, we aim to become a comprehensive AI service provider Advertisement, Real Estate, Media Social infra- structure Application Transpor- Retail/ tation, Apparel Logistics Publi
Slide 77: Forecast for FY2021 and plan for FY2022
Aiming for sales growth: Forecast for FY2021 and plan for FY2022 In FY2022, we aim to quadruple the size of its business. In addition to organic service growth, the we plan to enlarge existing operations through rolling up similar, related competing companies through M&As. (million JPY) 4,000 M&A 1,
Slide 78: Expert M&A team
Expert M&A team that allows for our M&A strategy Team of experts with diverse experience in M&As in place to formulate investment strategies and execute transactions. Investment strategy team’s background and past experience Experienced over 10 M&A diligence and PMI*1 CEO (post acquisition integrati
Slide 79: FY2021 Q3 ended Sep. Balance Sheet
FY2021 Q3 ended Sep. Balance Sheet Existing need to strengthen the company’s financial base over the medium term to allow for further progressive investment in company growth, including M&A activity. (million JPY) 2,214 2,214 Current liabilities 670 Strengthen Cash and Fixed liabilities financial ba
Slide 80: 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 — Q3 2021 Earnings Presentation on 6ix

Neural — Neural Pocket — Q3 2021 Earnings Presentation

Slide 1: Financial Results Briefing Material FY2021 Q3

Slide 2: Agenda

Slide 3: Company mission

Slide 4: Our management team

Slide 5: History of Neural Pocket

Slide 6: AI Smart City Revolution

Slide 7: Smart City-related AI service market expected to reach 1T USD

Slide 8: We develop proprietary AI-enabled image recognition technology

Slide 9: Edge AI can overcome many issues traditional Cloud AI faces

Slide 10: Technological evolution of AI and positioning of Edge AI

Slide 11: Rapid expansion of Edge is expected

Slide 12: FY2021 Q3 key highlights

Slide 13: FY2021 Q3 ended Sep. performance trajectory

Slide 14: FY2021 Q3 ended Sep. Statement of Income

Slide 15: Applying edge AI technology to 3 domains

Slide 16: Revenue trajectory per service domain

Slide 17: Quarterly trajectory of gross profit and EBITDA

Slide 18: Quarterly cost (COGS and SG&A)

Slide 19: Customer base

Slide 20: Public appearances at many public organization sponsored events

Slide 21: List of member organizations

Slide 22: Trajectory of employees

Slide 23: Profile of development functions and technical personnel

Slide 24: Company group structure

Slide 25: Patent acquisition status

Slide 26: Agenda

Slide 27: Business progress for AI Media Platform domain

Slide 28: Market environment: Digital signage expects significant growth

Slide 29: Huge existing potential for digital signage installation

Slide 30: Characteristics of Neural Pocket's AI signage

Slide 31: Remote content distribution and signage terminal management

Slide 32: Measuring effectiveness of OOH advertising with AI cameras

Slide 33: Number of units of signage installed to date

Slide 34: Full-scale entry into digital signage through Focus Channel acquisition

Slide 35: Creating significant business synergies within the group

Slide 36: Business scheme: Example for apartment signages

Slide 37: Media concept

Slide 38: Media overview

Slide 39: Locations

Slide 40: Locations (Apartment list)

Slide 41: Audience Profile

Slide 42: Media Contents

Slide 43: Advertising effectiveness

Slide 44: Advertisers (partial list)

Slide 45: Customer voices (advertisers)

Slide 46: Media characteristics

Slide 47: Revenue drivers for AI Media Platform business

Slide 48: Revenue per signage trajectory

Slide 49: Number of installed signages

Slide 50: Agenda

Slide 51: Business progress for AI Digi Solutions

Slide 52: Overview of AI Digi Solutions

Slide 53: Market environment for AI Digi Solutions in urban spaces

Slide 54: Business Scheme: Utilizing Neural Engineering subsidiary

Slide 55: Features of our AI Digi Solutions

Slide 56: Parking management solution: DigiPark

Slide 57: DigiPark: Use case at SMARK Isesaki

Slide 58: DigiPark: Use case at Logicross Ebina

Slide 59: People Flow Analysis solution: DigiFlow

Slide 60: DigiFlow: Implementation in Kashiwanoha Smart City

Slide 61: Cumulative number of AI Digi Solutions units installed

Slide 62: AI Digi Solutions adopted in many urban development projects

Slide 63: Agenda

Slide 64: Business progress for Other AI Services

Slide 65: AI MD and RemoDesk are steadily expanding deployment

Slide 66: Agenda

Slide 67: Our vision for business growth

Slide 68: Management policy for FY2021

Slide 69: Comparison of SaaS and AI players

Slide 70: Evolution of our business model

Slide 71: Trajectory of fee-based vs unit-based sales

Slide 72: Revision of financial forecast for FY2021

Slide 73: Operating profit bridge

Slide 74: Direction of business growth leveraging business characteristics

Slide 75: Plan to accelerate and scale business growth

Slide 76: Aiming to become a comprehensive AI service provider

Slide 77: Forecast for FY2021 and plan for FY2022

Slide 78: Expert M&A team

Slide 79: FY2021 Q3 ended Sep. Balance Sheet