Slide 1: Financial Results Briefing Material FY2021 Q2
Financial Results Briefing Material FY2021 Q2 (ended Jun 30th, 2021) Neural Pocket Inc. Aug 13th, 2021 Copyright © Neural Pocket Inc. All Rights Reserved. 1
Slide 2: Agenda
• Business Overview • FY2021 Q2 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 2
Slide 3: We develop proprietary AI-enabled image recognition technology
We develop proprietary AI-enabled image recognition technology Marketing Security Mobility Operations Age, gender Facial recognition Vehicles, road signs Object detection Spoon Female / 20s Notebook Cup Laptop computer Mobile phone Glasses Line of sight, view rate Intruder detection Parking lot occu
Slide 4: AI Smart City Revolution
We are 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. 4
Slide 5: A vast, entirely new Smart City market is being created
A vast, entirely 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 Allied Market Research In 2025 Smart
Slide 6: Edge AI overcomes many 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 7: Technological evolution of AI and the positioning of Edge AI
Technological evolution of AI and the positioning of “Edge AI” AI technology evolution and the implications for Neural Technology trend by Gartner*1 Pocket 1• Since the development of deep Mixed reality (MR) 5G learning in 2012, AI has continued to Blockchain tokenization evolve and the evolution of
Slide 8: A major macro transition from the Cloud to the Edge is in progress
A major macro transition from the Cloud to the Edge is in progress 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 clo
Slide 9: Neural Pocket's unique strengths in the Edge AI space
Neural Pocket’s unique strengths in the Edge AI space Develop and possess ultra-lightweight AI that is 1/10th the size of general AI through the usage of proprietary AI logic (A single edge device can be equipped with multiple AI programs) Involved in defining requirements for domestic and internati
Slide 10: Edge AI technology also contributes to carbon neutrality and SDGs
Edge AI technology also 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
Slide 11: Packaged smart city-related AI services
We provide 5 unique packaged smart city-related AI services that capture large cross-industry general needs People flow, crime prevention Parking and Mobility*1 DigiFlow DigiPark Powered by Signage Advertisements WFH security Fashion Analysis *1 3D City Map related services such as “Smart-kun” are i
Slide 12: Our business model
Our business model Contracted Licensing Co-Business Development Revenues 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 contract
Slide 13: Agenda
• Business Overview • FY2021 Q2 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 13
Slide 14: Business highlights for the FY2021 Q2
Business highlights for the FY2021 Q2 1. Released commercial packaged offerings as planned • RemoDesk SaaS version launched to allow for the usage by smaller accounts, whilst new functions were developed • DigiPark In addition to the monitoring of occupancy of flat parking lots, new functions such a
Slide 15: RemoDesk SaaS version launched
Service Update RemoDesk SaaS version launched Service Overview RemoDesk is software that allows both companies and employees to work remotely with confidence Protecting information security and employee privacy with a single tool Service Overview System Selection Privacy Protects user privacy by The
Slide 16: Immediate visitor analysis enabled with simple installation
Service Update Immediate visitor analysis enabled with simple installation Guest Count Guest Attribute View Rate Analysis Constant store activity Visualization of interest Ad targeting based on monitoring in content/ products gender/ age Providing unique standalone digital signages that can be insta
Slide 17: DigiPark new feature releases
Service Update DigiPark new feature releases Occupancy monitoring Occupancy monitoring for outdoor “DigiPark” to improve convenience and for parking garage parking lot operational efficiency for parking lot management & truck berth Edge AI enabled Parking Solution DigiPark DigiPark 1Easy installatio
Slide 18: Domestic and overseas smart city-related engagements
Activity Map 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 SENDAI CITY Local development
Slide 19: Collecting people flow data with Sendai City in city center
Government Agency Collaboration Collecting people flow data with Sendai City in city center SENDAI CITY (Headquarters: Sendai city, Miyagi Prefecture) • Signed agreement with “Sendai City” and “Andex Corporation (local IT developer)” • Visualization of people flow in shopping arcade to compile base
Slide 20: Deepening cooperation with various government agencies
Government Agency Collaboration Service development domestic and overseas through deepening cooperation with various government agencies Ministry of Land, Infrastructure, Transport and Tourism • The Ministry of Internal Affairs and • There are 1,154 roadside stations Communications (MIC) established
Slide 21: Participation in SoftBank 5G Consortium
Industry Collaboration Expanding the scope of cooperation and accelerating collaboration through participation in SoftBank 5G Consortium*1 "SoftBank 5G Consortium" established in June 2021 as an organization where 5G communication device, cloud/ edge computing/ IoT device providers and other partner
Slide 22: Schedule to appear in SoftBank World 2021
Industry Collaboration Schedule to appear in SoftBank World 2021 (Sep 15th) What is the future realized by AI-based video analysis? SoftBank Corp. Neural Pocket Inc. Digital Automation Business CEO Management Dep. #1, Director Roi Shigematsu Takashi Yuge Session Outline The number of video analysis
Slide 23: Launched new location AI Test Field as an AI research facility
Technology Development Launched new location “AI Test Field" as an AI research facility Environment to enable AI Test Field Concept integrated AI dev. Kasumigaseki building 4 2 Quality assessment and safe operations Prototyping Quality evaluation and operation Verify developed monitoring to ensure s
Slide 24: Progress in apparel business and efforts towards SDGs
Service Update Progress in apparel business and efforts towards SDGs Featured in Nikkei Cross Trend Study Group on Sustainability in the Our efforts reducing apparel disposals*1 Textile Industry*2 held by METI*3 • Our COO presented as guest speaker at Forefront of deep learning applications #43 stud
Slide 25: Agenda
• Business Overview • FY2021 Q2 Business Progress • Performance Highlights and Growth Strategy Copyright © Neural Pocket Inc. All Rights Reserved. 25
Slide 26: FY2021 Q2 ended performance trajectory
FY2021 Q2 ended performance trajectory • Steady business growth in FY2021 Q2 • Business progress in line with the annual forecast • Sales and operating profits are expected to be concentrated in fourth quarter (million JPY) Net Sales Operating Profit +49.8% 490 327 Company +73.7% Founded 94 91 52 0
Slide 27: FY2021 Q2 ended Jun. Statement of Income
FY2021 Q2 ended Jun. Statement of Income FY2020 Q2 FY2021 Q2 ended Jun. ended Jun. Increase Increase (million JPY) (cumulative) (cumulative) amount percentage Net Sales 327 490 +163 +49.8% Operating profit 52 91 +38 +73.7% % of net sales 16.0% 18.6% Ordinary profit 45 88 +43 +97.2% % of net sales 13
Slide 28: FY2021 Q2 ended Jun. Balance Sheet
FY2021 Q2 ended Jun. Balance Sheet FY2020 Q4 FY2021 Q2 Increase (million JPY) ended Dec. ended Jun. amount Total current assets 1,673 1,803 +129 Cash and cash deposits 1,424 1,482 +57 Total non-current assets 247 367 +120 Total assets 1,920 2,171 +250 Total liabilities 714 799 +85 Interest bearing d
Slide 29: FY2021 Q2 ended Jun. Cash Flows
FY2021 Q2 ended Jun. Cash Flows FY2020 Q2 FY2021 Q2 ended Jun. ended Jun. (million JPY) (cumulative) (cumulative) Cash flows from 19 1 operating activities Cash flows from -50 -118 investing activities Cash flows from 184 174 financing activities Increase of cash and cash +153 +57 equivalents Cash a
Slide 30: FY2021 full-year ending Dec. forecast
FY2021 full-year ending Dec. forecast FY2021 Q2 FY2021 Q4 ended Jun. ending Dec. results forecast Progress (million JPY) (cumulative) (cumulative) percentage Net sales 490 1,256 39.0% Operating profit 91 380 23.9% % of net sales 18.6% 30.3% Ordinary profit 88 370 24.0% % of net sales 18.1% 29.5% Net
Slide 31: Future growth strategy
Future growth strategy (Illustration of business growth) • Created five individual packaged services from Self-propelling sales existing businesses, with prospects to scale going forward growth in collaboration with • In the second half of the fiscal year and beyond, considering management allocatio
Slide 32: Management policy for FY2021
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 33: 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 34: Copyright © Neural Pocket Inc. All Rights Reserved.
Copyright © Neural Pocket Inc. All Rights Reserved. 34