Gunosy, Inc. · TSE:6047

Gunosy — Q2 FY2024/5 Earnings Presentation

51 slides from Gunosy's earnings presentation, May 31, 2024

Slide 1: FY2024/5 Financial Results for Q2
FY2024/5 Financial Results for Q2 Gunosy Gunosy Inc. TSE Prime (6047) 6047
Slide 2: INDEX
1. New Management Structure P 03 2. Financial Highlights (Including Full-Year Forecast) P 08 3. Financial Results for FY2024/5 Q2 P 15 INDEX 4. Business Overview by Division P 19 • Investment • Media Business • Game8 5. Other Topics P 41 6. Reference Materials P 44 C Gunosy Inc. All Rights Reserved.
Slide 4: Representative Director Structure
Representative Director Structure Shinji Kimura will continue to lead the entire Group. Kentaro Nishio will be responsible for all of the Group's non-investment businesses. Representative Director and Chairman, Group Chief Primary Role Executive Officer (CEO) He graduated from the Department of Phys
Slide 5: Overview of the New Management Structure
Overview of the New Management Structure Effective December 1, we implemented a new management structure. Given the significant changes in the business environment in the 11 years since our founding, we are creating a structure that will enable us to manage multiple business portfolios and achieve G
Slide 6: Our Management Team
Our Management Team The management structure as of December 1, 2023 is as follows. (*) N&C (Nomination and Compensation Committee) N&C N&C New Representative Director and Representative Director and Chief Chairman, Group Chief Executive Director Director Director and Investment Officer (CIO) Officer
Slide 7: New Corporate Officers of the Group
New Corporate Officers of the Group Three new Corporate Officers have been appointed to accelerate the execution of the Group's business. Corporate Officer of the Group (Group Chief Operating Officer) Shunsuke Sawamura He graduated from the School of Business Administration, Kwansei Gakuin Universit
Slide 9: Executive Summary (1/2)
Executive Summary (1/2) Consolidated operating loss decreased significantly QoQ Overall due to the recovery of the profitability of programmatic business advertising in the Media business and the sales growth in Game8. Full-year consolidated operating profit forecast has been raised. Profitability h
Slide 10: Executive Summary (2/2)
Executive Summary (2/2) Q2 (Sep-Nov 2023) (Million yen) Net sales Operating profit Net sales 1,849 million yen YoY 92.4 Gunosy 1,129 -115 Game8 501 111 Operating profit -20 million yen YoY --- Others 218 -16 Q1-2 (Jun – Nov 2023) (Million yen) Net sales Operating profit Net sales 3,729 million yen Y
Slide 11: Revision of FY2024/5 Results Forecast (Consolidated)
Revision of FY2024/5 Results Forecast (Consolidated) Regarding the forecast for consolidated results for the full year, operating profit was revised upward from -0.5 billion yen in the original forecast to -0.26 billion yen, taking into account the consolidated results for the second quarter. On the
Slide 12: Background of Revision of Results Forecasts: Operating Profit (Consolidated)
Background of Revision of Results Forecasts: Operating Profit (Consolidated) Operating profit (Million yen) (Consolidated) POINT 0 -260 Non-consolidated operating 1 profit of Gunosy exceeds 1 156 forecasts -500 • Sales were lower than forecast due 300 to tough advertising market 2 environment and lo
Slide 13: Equity Method Investment Gains/Losses of slice
Equity Method Investment Gains/Losses of slice The organic growth of the business continues with appropriately controlled marketing investments, resulting in a decrease in the amount of losses. Equity method investment losses are also on a declining trend. (See pages 20-31 for details of slice busin
Slide 14: Progress towards Achieving Operating Profitability in FY2025/5
Progress towards Achieving Operating Profitability (Consolidated and Non-consolidated) in FY2025/5 After the transition to the new management structure, we will continue 1 to pursue our basic policy of returning to profitability on a consolidated and non-consolidated basis in FY2025/5. We are making
Slide 16: FY2024/5 Consolidated Results for 2Q
FY2024/5 Consolidated Results for 2Q In addition to the strong sales of Game8, advertising investments in the Gunosy app were reduced. As a result, the loss in Q2 was significantly reduced. (Million yen) QoQ YoY FY2024/5 FY2024/5 FY2023/5 2Q FY2024/5 1Q QoQ 1Q-2Q 1Q-2Q YoY (Jun – Nov 2023) (Jun – No
Slide 17: Breakdown of Net Sales
*1 Breakdown of Net Sales Game8 sales increased both YoY and QoQ. In Gunosy Ads, the profitability of programmatic advertising bottomed out and started to increase in mid- October, but not in time to avoid QoQ sales decline. We expect Gunosy Ads to maintain its post- recovery profitability levels fr
Slide 18: Cost Structure
Cost Structure Advertising expenses decreased QoQ as they were restrained in view of Gunosy's profitability. Other costs were tightly controlled and did not change significantly. (Million yen) 2,400 2,304 2,187 2,176 2,135 2,048 2,085 2,080 2,110 2,118 2,066 1,974 2,010 1,866 1,869 537 580 540 515 5
Slide 20: Relationship with slice
slice Relationship with “slice” Since 2019, we have invested a cumulative total of over 3 billion yen in slice. In April 2022, we dispatched a director, making it an equity-method affiliate. GaragePreneurs Internet Pvt Ltd., which operates 2015 Jun "slice" established Percentage of ownership by the
Slide 21: slice Company Overview
slice Company Overview Foundation Amount raised to date 2015 Approx. $290 million (Cumulative amount) TIGER INSIGHT Gunosy GLOBAL PARTNERS Most recent financial statements Number of employees (P/L and B/S) (FY2023/3) Profit (loss) Sales before income taxes 15.2 billion yen -7.1 billion yen Over 1,50
Slide 22: slice Company History
slice Company History Founded in 2015, “slice” expanded its digital payments business by focusing on BNPL (Buy Now Pay Later), which was not widely used in India at the time. Since then, slice has grown dramatically and finally became a unicorn in December 2021. Transforming the financial experience
Slide 23: slice inc. Business Description
slice slice inc. Business Description "slice" is India's leading fintech company providing payment services. It offers intuitive and easy digital payments and is highly supported by Millennials and Gen Z, the largest segment of the population. With more than 15 million users, slice is the market lea
Slide 24: slice Business Environment
slice slice Business Environment In India, credit card penetration is low compared to other countries, leaving significant room for market growth. Digital payment transactions Credit card penetration Digital consumer lending volume in India Number of digital Credit card penetration Total digital con
Slide 25: slice's Strengths
slice slice’s Strengths ”slice” boasts a strong brand image that is highly supported by the Millennial Generation Z, the volume segment of the population. Low default rate is achieved through its unique credit expertise. Appeal to the younger generation, the volume segment of the 1 population, with
Slide 26: slice P&L: Sales and Profit/Loss before Income Taxes
slice slice P&L: Sales and Profit /Loss before Income Taxes (Million yen) 15,273 FY2023/3 highlights Sales Profit (loss) before income taxes Sales CAGR 211% 15,273 Million yen FY2019/3 – FY2023/3 5,155 YoY 296 Profit (loss) before income taxes 715 1,200 162 174 17 148 -7,123 Million yen YoY Gunosy m
Slide 27: slice B/S (As of the End of FY2023/3)
slice slice B/S (As of the End of FY2023/3) Total assets as of March 31, 2023 were 33.9 billion yen. The company is in sound financial condition, with an equity ratio of more than 50%. As of March 31, 2023 (Million yen) Current asset Liabilities 30,448 16,728 Total assets: 33.9 billion yen Equity ra
Slide 28: slice AUM
slice AUM The customer base was significantly expanded through marketing investments until the first half of 2022. Since the launch of a product compliant with the Digital Lending Guidelines in December 2023, organic growth has continued while keeping burn rates under strict control. Response to Rap
Slide 29: slice Future Growth Plans
slice Future Growth Plans We aim to achieve significant growth by providing customers with a comprehensive digital financial experience through the merger with NESFB, while continuing to steadily increase AUM through organic growth. Continue organic growth 1 Aim to achieve operating profitability on
Slide 30: (Reference) Overview of Merging with slice
slice (Reference) Overview of Merging with slice This merger is an extremely important step in increasing slice's growth potential. Gunosy will continue to support slice as a corporate shareholder after the merger. NESFB Overview of the merger Merger will deliver a more Small finance bank operating
Slide 31: (Reference) Schedule since Guideline Release
slice (Reference) Schedule since Guideline Release Changes were made to ensure that the product experience was compliant with the Reserve Bank of India's (RBI) Digital Lending Guidelines, and the new product was released on time. The transition to the went smoothly with no major issues. September 2,
Slide 33: Total Number of Active Users (MAUs)
Media Business Total Number of Active Users* (MAUs) In Q2, MAUs declined QoQ due to a lack of high-impact news stories that attracted broad user interest, as well as restrained advertising investment in the Gunosy app. LUCRA(Service ended in February 2023) NewsPass + au Service Today Gunosy Q1 Q2 Q3
Slide 34: Progress Summary of Gunosy's Key KPIs
Media Business Progress Summary of Gunosy's Key KPIs Sales per DAU increased QoQ as DAU started to recover from mid-October 2023 due to successful algorithm improvements. DAU increased YoY as retention rate remained high, but declined slightly QoQ due to reduction in advertising expenses. Gunosy Sal
Slide 35: Gunosy: Advertising Expenses and Estimated IRR
Media Business Gunosy: Advertising Expenses and Estimated IRR While product KPIs remained stable, estimated IRR remained below criteria through September due to lower profitability. Profitability began to improve in October due to reduced advertising investment and algorithm improvements, and exceed
Slide 36: Advertising Investment in Gunosy
Media Business Advertising Investment in Gunosy Profitability has improved steadily since mid-October and the IRR on advertising investment has improved. We intend to keep our advertising investments within the IRR criteria from Q3 onwards and at the same level as in October. Advertising expenses Pl
Slide 37: Ad Network (ADNW)
Media Business Ad Network (ADNW) Impressions remained unchanged QoQ, while cost per mille (CPM) remained weak. Number of Impressions and CPM (Million imp) 45,000 ¥20 imp CPM ¥12.59 30,000 ¥11.91 ¥11.87 ¥11.86 ¥11.48 ¥11.22 ¥11.14 ¥10.87 ¥7.99 ¥7.25 ¥6.81 ¥6.58 15,000 29,432 ¥5.30 ¥4.70 22,489 21,892
Slide 39: Game8 (Sales and Operating Profit)
Game8 Game8 (Sales and Operating Profit) Sales in the domestic media solutions business remained strong as in the first quarter, and profitability in the overseas media business also improved. As a result, Game8 posted record sales. (Million yen) Sales Operating profit 600 501 457 470 456 435 441 45
Slide 40: Key KPI of Game8
Game8 Key KPI of Game8 * Both PVs and RPMs, key KPIs, remained strong. PVs RPM Although there was some volatility RPM remained strong, partly due to depending on game title sales, page improved profitability in overseas views remained strong. media business. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2023/3 FY2024/3
Slide 42: New Business LLM (Udekiki)
New Business LLM (Udekiki) As previously announced, "Udekiki" was officially released in November 2023. In addition to using GunosyAI to enhance the product, we will continue to improve the product based on customer feedback and aim to achieve PMF. Use AI as your powerful assistant! • Over 20 new sk
Slide 43: New Business YOU IN
New Business YOU IN "MOOD PAIRING BATH awai", a bath additive, was released for users who want to enjoy a "mood pairing experience" in various scenes. In addition, our mood pairing tea "LOVE YOUR BODY" was certified as a maternity food. "MOOD PAIRING BATH awai“ (bath additive) released Wellness init
Slide 46: Company History
November 2021 June 2016 Achieved unicorn status in the fintech sector by raising “NewsPass” released significant funds in its Series B funding round November 2012 July 2018 Established Gunosy Capital Established Gunosy Inc. in and started investment Roppongi, Minato-ku, Tokyo business 2012 2015 2016
Slide 47: Gunosy Group Business Portfolio
Gunosy Group Business Portfolio Medium- to long-term growth driven by three businesses 1 2 3 New Media business Game8 group Investment businesses New • Gunosy • Game8 • Gunosy Capital • LLM • NewsPass • Smarprise • YOU IN • Au Service Today • Data accumulated since the inception of the company DATA
Slide 48: Growth Image
Growth Image Increase corporate value through growth of existing businesses and development of new businesses Aim for group-wide growth with a market capitalization of 100 billion yen as a medium- Investment to long-term target Game8 Media business Established C Gunosy Inc. All Rights Reserved. 48
Slide 49: 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, Kentaro Nishio Yuya Taketani Director and Chief Investment Offic
Slide 50: 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 51: Status of the Estimated Value of the Investment Portfolio
investment Status of the Estimated Value of the Investment Portfolio (Disclosed on July 14, 2023) FY2019/5 FY2020/5 FY2021/5 FY202/5 FY2023/5 Investment ratio 0.98 0.99 1.11 5.36 5.16 (Million yen) *1 25,741 26,546 Accumulated investment *2 “Accumulated Estimated value + Sale price investment” and “

Gunosy — Q2 FY2024/5 Earnings Presentation on 6ix

Gunosy — Q2 FY2024/5 Earnings Presentation

Slide 1: FY2024/5 Financial Results for Q2

Slide 2: INDEX

Slide 3: New Management Structure

Slide 4: Representative Director Structure

Slide 5: Overview of the New Management Structure

Slide 6: Our Management Team

Slide 7: New Corporate Officers of the Group

Slide 8: Financial Highlights

Slide 9: Executive Summary (1/2)

Slide 10: Executive Summary (2/2)

Slide 11: Revision of FY2024/5 Results Forecast (Consolidated)

Slide 12: Background of Revision of Results Forecasts: Operating Profit (Consolidated)

Slide 13: Equity Method Investment Gains/Losses of slice

Slide 14: Progress towards Achieving Operating Profitability in FY2025/5

Slide 15: Financial Results for FY2024/5 Q2

Slide 16: FY2024/5 Consolidated Results for 2Q

Slide 17: Breakdown of Net Sales

Slide 18: Cost Structure

Slide 19: Business Overview by Division: Investment (slice)

Slide 20: Relationship with slice

Slide 21: slice Company Overview

Slide 22: slice Company History

Slide 23: slice inc. Business Description

Slide 24: slice Business Environment

Slide 25: slice's Strengths

Slide 26: slice P&L: Sales and Profit/Loss before Income Taxes

Slide 27: slice B/S (As of the End of FY2023/3)

Slide 28: slice AUM

Slide 29: slice Future Growth Plans

Slide 30: (Reference) Overview of Merging with slice

Slide 31: (Reference) Schedule since Guideline Release

Slide 32: Business Overview by Division: Media Business

Slide 33: Total Number of Active Users (MAUs)

Slide 34: Progress Summary of Gunosy's Key KPIs

Slide 35: Gunosy: Advertising Expenses and Estimated IRR

Slide 36: Advertising Investment in Gunosy

Slide 37: Ad Network (ADNW)

Slide 38: Business Overview by Division: Game8

Slide 39: Game8 (Sales and Operating Profit)

Slide 40: Key KPI of Game8

Slide 41: Other Topics

Slide 42: New Business LLM (Udekiki)

Slide 43: New Business YOU IN

Slide 44: Reference Materials

Slide 45: Mission: Optimally deliver information to people around the world

Slide 46: Company History

Slide 47: Gunosy Group Business Portfolio

Slide 48: Growth Image

Slide 49: Overview of Gunosy Inc.

Slide 50: From Gunosy Way to Gunosy Pride

Slide 51: Status of the Estimated Value of the Investment Portfolio