Gunosy, Inc. · TSE:6047

Gunosy — FY2024/5 Earnings Presentation

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

Slide 1: FY2024/5 Financial Results Medium-Term Management Plan
FY2024/5 Financial Results Medium-Term Management Plan (FY2025/5 – FY2027/5) 株式会社 Gunosy Gunosy Inc. TSE 東証Prime プライ (6047) ム（証券コード：6047）
Slide 2: INDEX
1. Financial Highlights P 03 2. Financial Results for FY2024/5 P 07 3. Business Overview by Division P 12 INDEX 4. Medium-term Management Plan (FY2025/5 – FY2027/5) P 28 5. FY2024/5 Outlook P 42 6. Reference Material: Company Profile P 45 7. Reference material: slice P 53 （C） Gunosy Inc. All Rights
Slide 4: Executive Summary
Executive Summary FY2024/5 Results Forecast 100.7％ 7,344 (Released in April 2024) vs. forecast FY2024/5 Net sales million yen 7,290million yen YoY 91.2％ (full-year) FY2024/5 Results Forecast (Released in April 2024) - 70 vs. forecast Operating profit million yen -30million yen YoY - Gunosy Game8 Oth
Slide 5: Operating Profit - Difference between Initial Forecast and Actual Results
Operating Profit - Difference between Initial Forecast and Actual Results POINT Operating profit (initial forecast and actual results) Gunosy - Improvement 1 Operating profit improved in operating profit • In Q1, the profitability of Gunosy significantly from the forecast given Ads declined due to t
Slide 6: Consolidated Operating Profit
Consolidated Operating Profit In the first half of the year, a consolidated operating loss was recorded due to increased advertising investments, but the reduction of advertising investments, the recovery of profitability in the Media business and the strong performance of Game8 in and after Q2 led
Slide 8: FY2024/5 Consolidated Results for Q4
FY2024/5 Consolidated Results for Q4 We achieved a consolidated operating profit for the full year, driven by the continued strong performance of the Game8 business, a recovery in the profitability of the Media business, as well as appropriate control of advertising investments. Strong QoQ profit gr
Slide 9: Breakdown of Net Sales
*1 Breakdown of Net Sales Game8 sales increased both YoY and QoQ. Gunosy Ads' sales remained stable despite a reduction in advertising expenses. As to "Others", the exclusion of Smarprise from the scope of consolidation in Q3 led to a significant decrease in both sales and related costs. Others Game
Slide 10: Cost Structure
Cost Structure Costs on a consolidated basis decreased as the business focused on overall cost control. Advertising expenses decreased QoQ as we continued to control costs in line with our current policy. The exclusion of Smarprise from the scope of consolidation in Q3 led to a significant decrease
Slide 11: Equity Method Investment Gains/Losses of slice
Equity Method Investment Gains/Losses of slice The stable 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. Equity method investment gains/losse
Slide 13: Business Model of Our Media Business
Media Business Business Model of Our Media Business We obtain content from external media (“content partners”) and offer the service to users free of charge. We provide advertising space to advertisers to serve ads to users, and we receive revenue from advertisers. Provide content Content partner ¥
Slide 14: Progress Summary of Gunosy's Key KPIs
Media Business Progress Summary of Gunosy's Key KPIs DAUs remained stable QoQ despite reduction in advertising investment. Sales/DAUs have been stable since improving in Q2, but declined QoQ in Q4 due to weaker QoQ performance of direct media buying. In the end, however, the year-end results were in
Slide 15: Total Number of Active Users (MAUs)
* Media Business Total Number of Active Users (MAUs) In Q4, the overall size of the Media business shrank, although Gunosy's MAUs were maintained despite a reduction in advertising investment. LUCRA (Service ended in February 2023) NewsPass + au Service Today Gunosy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Gunosy: Advertising Expenses and Estimated IRR
Media Business Gunosy: Advertising Expenses and Estimated IRR Since November 2023, the IRR has remained well above the criteria due to the control of advertising investment and improved profitability. We continued to manage our advertising investments, which remained within our criteria in Q4. Estim
Slide 18: Business Model of Game8
Game8 Business Model of Game8 Gate8 Inc. is engaged in the business of monetizing through advertising revenue from game walkthrough media. The company provides a wide range of marketing solutions by offering a variety of advertising strategies, including writing game walkthrough articles for game wa
Slide 19: Game8 (Sales and Operating Profit)
Game8 Game8 (Sales and Operating Profit) As in previous quarters, the overseas media business in particular maintained high profitability driven by the depreciation of the yen. Sales increased due to a significant rise in page view, resulting in record sales and operating income. However, the next q
Slide 20: Key KPIs of Game8
Game8 Key KPIｓof Game8 PVs, one of the most important KPIs, remained strong, supported by hit titles. In terms of RPM, high profitability is maintained, especially in the overseas market due to the depreciation of the yen. PVs RPM Although there was some volatility Maintained high profitability supp
Slide 21: Our Commitment to Corporate Branding
Game8 Our Commitment to Corporate Branding Game8 successfully hosted one of the largest real BtoB events in Japan for the gaming industry. This provided a strong foundation for improving the BtoB solutions developed to date and expanding the BtoB solution area in the future. Event Date: 1:00 pm June
Slide 23: Progress of the Merger Process
slice Progress of the Merger Process The merger process is progressing well with the filing of the application with the NCLT (National Company Law Tribunal) completed. As the largest outside shareholder, we may be required to cooperate in various ways under Indian financial regulations. In order to
Slide 24: Improvement of slice's profit/loss for the Year
slice Improvement of slice’s profit/loss for the Year As a result of proper risk control through prudent lending after the transition to the new product, the default risk of AUM as a whole is expected to decrease and the provision ratio is expected to improve. In *1 addition, slice’s profit/loss for
Slide 25: Decrease in Losses from Equity Method Investments
Decrease in Losses from Equity Method slice Investments We expect a significant reduction in equity losses in FY2025/5, driven by stable organic business growth * with controlled marketing investments and slice’s improved profit/loss for the year through appropriate control of default rates. Profit
Slide 26: Future Policy
slice Future Policy Until the completion of the merger, we aim to become profitable in the "slice" business and maintain a healthy financial position, while continuing to steadily increase AUM through organic growth. After the merger with NESFB, we aim to further accelerate growth by providing custo
Slide 27: AUM
slice AUM The customer base was significantly expanded through marketing investments until the first half of 2022. Since the launch of the new product in December 2023, AUM has remained stable, supported by effective management of the burn rate, which was achieved by acquiring customers through orga
Slide 29: Current Business Portfolio Assessment
Current Business Portfolio Assessment In the existing business, controlling advertising investments has improved the business status to the point where ROIC can be maintained at around 12-15%. Additionally, we have cash and deposits totaling 2.5-3.0 billion yen available for investment. In the inves
Slide 30: Medium-Term Management Strategy
Medium-Term Management Strategy Business For existing businesses (our media business and Game8), we are aiming for solid business growth by strengthening cooperation with KDDI and expanding 1 Game8's international sales on the assumption that the media business will become profitable. Business As fo
Slide 31: Medium-Term Financial Goals: As of FY2027/5
Medium-Term Financial Goals: As of FY2027/5 As of FY2027/5 Business Investment Operating * ROIC IRR profit/EBITDA (on existing business capital) 900million yen 15% and over 30% * Cash and deposits available for investment are comprehensively evaluated according to the intended use of the funds, usin
Slide 32: Medium-Term Expansion of Balance Sheet
Medium- Term Expansion of Balance Sheet To increase shareholder value over the medium to long term, we will focus on achieving sufficient capital efficiency in both our investments and our businesses. Business Image of expansion of B/S • In existing businesses, we will steadily generate cash by prom
Slide 33: Mid-Term Plan – Operating Profit/EBITDA (Consolidated)
Mid-Term Plan – Operating Profit/EBITDA (Consolidated) We aim to achieve stable profit growth by improving the profitability of existing businesses and expanding our operations, while making certain investments in new businesses. FY2025/5 Operating profit/EBITDA (consolidated) Upward momentum driven
Slide 34: Two New Businesses with Upside Potential
Two New Businesses with Upside Potential We aim to create new businesses through two approaches, including the store and commerce business ("SC business"), which will be developed as an extension/enhancement of the existing business value chain, and business development in the LLM/DX domain which ut
Slide 35: New Business: SC Business
Game8 New Business: SC Business We plan to leverage the media power of Game8 to launch a business model that allows users to purchase games and bill smartphones from our own media, game guide and walkthrough website. New business Game walkthrough media and solutions business Store and commerce Opera
Slide 36: New Business: Market Expansion through SC Business
Game8 New Business: Market Expansion through SC Business By launching the SC business as a new venture, we aim to expand our business into new and larger markets. Value chain Counterpart Market size Develop games Publisher (Game companies) Develop games Future Delivery SC business in Aiming to Distr
Slide 37: New Businesses: LLM / Digital Transformation
Gunosy New Businesses: LLM / Digital Transformation In FY2024, we released Udekiki, a general-purpose business efficiency solution, as a product to meet corporate demand for the use of generative AI. From FY2025, in line with the evolution of generative AI and changes in the competitive environment,
Slide 38: Medium-Term Targets for Market Capitalization
Medium-Term Targets for Market Capitalization We will continue to work toward achieving a market capitalization of 100 billion yen and increasing value from both the business and investment sides. Business On the business side, in addition to the growth of existing businesses, we will increase EBITD
Slide 39: New Management Team
New Management Team The management structure for FY2023/5 is as follows. New New Representative Chief Director and Representative Director Chairman, Group Chief Executive Director and Chief Director and Chief Director and Operating Officer (COO) Financial Officer (CFO) Officer (CEO) President Shunsu
Slide 40: Proposal for the Election of New Directors
Proposal for the Election of New Directors Director and Chief Operating Director and Chief Financial Officer (to be appointed) Officer (to be appointed) Shunsuke Sawamura Tatsuyuki Iwase A graduate of the School of Business He graduated from the Faculty of Business and Administration, Kwansei Gakuin
Slide 41: Corporate Officers of the Group
Corporate Officers of the Group Yuki Maniwa, currently a director, will serve as Chief Investment Officer (CIO) and aggressively promote corporate value enhancement through slice asset management and M&A, which are the key pillars of the new medium-term management plan. Toyohiro Shibukawa will conti
Slide 43: FY 2025/5 Full-Year Outlook (Consolidated)
FY 2025/5 Full-Year Outlook (Consolidated) Although net sales are expected to decrease YoY due to the sale of a sub-subsidiary and the withdrawal of ADNW, operating profit is expected to increase significantly. Profit is expected to rise significantly YoY due to the improvement in the share of loss
Slide 44: Sales Increase / Decrease
Sales Increase / Decrease Game8's sales are expected to increase significantly, with overseas business being the growth driver. On the other hand, overall sales are expected to decline year on year due to business portfolio restructuring, including the withdrawal from the ADNW and YOU IN businesses
Slide 47: Company History
沿⾰ 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 2
Slide 48: 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 • Gunosy • Game8 • Gunosy Capital • LLM • NewsPass • Au Service Today • Data accumulated since the inception of the company DATA • • Knowledge of algori
Slide 49: 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 Game 8 Media business Established （C） Gunosy Inc. All Rights Reserved. 4
Slide 50: 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 51: 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 52: Sustainability Initiatives
Sustainability Initiatives Provide information in a way that is socially beneficial as a media 1 outlet (eliminate echo chambers and filter bubbles, provide a quality game walkthrough wiki, etc.) 2 Ad review initiatives to provide a safe advertising experience Encourage diverse work styles that comb
Slide 54: 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 55: slice Company History and CEO
slice Company History and CEO 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 2019, we have invested a cumulative total of more than 3 billion yen in slice. In April 2022, it became our equ
Slide 56: 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 57: slice's Strengths
s l iビジネス ce 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
Slide 58: 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% FY2019/3 – FY2023/3 15,273 Million yen 5,155 YoY 296％ Profit (loss) before income taxes 715 1,200 162 ▲ 174 ▲ 17 ▲ 148 -7,123 Million yen YoY ー
Slide 59: 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 60: Overview of Merging with slice
slice 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 primarily co

Gunosy — FY2024/5 Earnings Presentation on 6ix

Gunosy — FY2024/5 Earnings Presentation

Slide 1: FY2024/5 Financial Results Medium-Term Management Plan

Slide 2: INDEX

Slide 3: Financial Highlights

Slide 4: Executive Summary

Slide 5: Operating Profit - Difference between Initial Forecast and Actual Results

Slide 6: Consolidated Operating Profit

Slide 7: Financial Results for FY2024/5

Slide 8: FY2024/5 Consolidated Results for Q4

Slide 9: Breakdown of Net Sales

Slide 10: Cost Structure

Slide 11: Equity Method Investment Gains/Losses of slice

Slide 12: Business Overview by Division: Media Business

Slide 13: Business Model of Our Media Business

Slide 14: Progress Summary of Gunosy's Key KPIs

Slide 15: Total Number of Active Users (MAUs)

Slide 16: Gunosy: Advertising Expenses and Estimated IRR

Slide 17: Business Overview by Division: Game8

Slide 18: Business Model of Game8

Slide 19: Game8 (Sales and Operating Profit)

Slide 20: Key KPIs of Game8

Slide 21: Our Commitment to Corporate Branding

Slide 22: Business Overview by Division: Investment (slice)

Slide 23: Progress of the Merger Process

Slide 24: Improvement of slice's profit/loss for the Year

Slide 25: Decrease in Losses from Equity Method Investments

Slide 26: Future Policy

Slide 27: AUM

Slide 28: Medium-term Management Plan (FY2025/5 - FY2027/5)

Slide 29: Current Business Portfolio Assessment

Slide 30: Medium-Term Management Strategy

Slide 31: Medium-Term Financial Goals: As of FY2027/5

Slide 32: Medium-Term Expansion of Balance Sheet

Slide 33: Mid-Term Plan – Operating Profit/EBITDA (Consolidated)

Slide 34: Two New Businesses with Upside Potential

Slide 35: New Business: SC Business

Slide 36: New Business: Market Expansion through SC Business

Slide 37: New Businesses: LLM / Digital Transformation

Slide 38: Medium-Term Targets for Market Capitalization

Slide 39: New Management Team

Slide 40: Proposal for the Election of New Directors

Slide 41: Corporate Officers of the Group

Slide 42: FY2024/5 Outlook

Slide 43: FY 2025/5 Full-Year Outlook (Consolidated)

Slide 44: Sales Increase / Decrease

Slide 45: Company Profile

Slide 46: Mission

Slide 47: Company History

Slide 48: Gunosy Group Business Portfolio

Slide 49: Growth Image

Slide 50: Overview of Gunosy Inc.

Slide 51: From Gunosy Way to Gunosy Pride

Slide 52: Sustainability Initiatives

Slide 53: slice

Slide 54: slice inc. Business Description

Slide 55: slice Company History and CEO

Slide 56: slice Business Environment

Slide 57: slice's Strengths

Slide 58: slice P&L: Sales and Profit/Loss before Income Taxes

Slide 59: slice B/S (As of the End of FY2023/3)

Slide 60: Overview of Merging with slice