Neural Group Inc. · TSE:4056

Neural — Neural Pocket — Q3 2020 Earnings Presentation

30 slides from Neural's earnings presentation, Nov 13, 2020

Slide 2: Introduction
Introduction • We appreciate our shareholders, business partners, and community members for their continued support of Neural Pocket. • Thanks to your support, Neural Pocket was listed on the Tokyo Stock Exchange Mothers this year, in it’s third year of operation. We believe that listing on the stoc
Slide 4: We enjoy extraordinarily convenient online experiences today
Our value proposition We enjoy extraordinarily convenient online experiences today Instant access to rich information Transparent availability information Convenient online experience Sharing services and internet media Work-from-home culture Copyright © Neural Pocket Inc. All Rights Reserved. 4
Slide 5: Unmet needs in physical spaces
Our value proposition As the value of real world experiences are being revaluated, there are still unmet needs in physical spaces Gathering unorganized information Waiting time and manual searching Challenges in physical spaces Traffic congestion Security and health risks Copyright © Neural Pocket I
Slide 6: AI Smart City Revolution
Our value proposition Neural Pocket provides digital services for physical spaces to enhance our real world experiences through introducing intelligent AI cameras “AI Smart City Revolution” Copyright © Neural Pocket Inc. All Rights Reserved. 6
Slide 7: A new major market is being created in the field of smart cities
Our value proposition A new major market is being created in the field of smart cities Global Smart City market size is Asia is the source of growth for approx. 100-200 trillion yen smart cities Smart City Market Growth Rate by Region (2019-2024) Research Company / Global Market Report Name Size*1 A
Slide 8: Neural Pocket has developed services that enable smart cities
Services: Overview Neural Pocket has developed services that enable smart cities People Flow, Crime Prevention Parking and Mobility 3D City Maps Signage Advertisements WFH Security Fashion Analysis Copyright © Neural Pocket Inc. All Rights Reserved. 8
Slide 9: People flow and crime prevention services are essential for smart cities
Services: People Flow, Crime Prevention People flow and crime prevention services are essential for smart cities Face recognition for security and Measurement of people flow Identification of people flow lost child detection in outdoor public spaces with temperature detection 4000 3000 Average numbe
Slide 10: Parking and mobility services are universal across countries
Services: Parking and Mobility Parking and mobility services are universal across countries Real-time occupancy detection using AI cameras Commercial parking SMARK Isesaki operated by Tokyo Tatemono (left: daytime, right: nighttime) Parking management system screen Logistics facilities managed by Pr
Slide 11: 3D city mapping services accelerate mobility services
Services: 3D City Maps 3D city mapping services accelerate mobility services Collects anonymized data from 100,000+ users on a daily basis, to then be provided to customers Speed Up and down Sensors built into smartphone AI analysis through external camera info *1 - GPS (Latitude and longitude) - In
Slide 12: Our AI signage connects real advertisements to the Internet
Services: Signage Advertisements Our AI signage connects real advertisements to the Internet AI camera Facility info & ads Large LCD Edge AI box Guest attribute Measuring of analysis ad views Original advertising and content management system (CMS) Guest traffic analysis conducted within signage Edg
Slide 13: RemoDesk ensures safety and security for WFH operations
Services: WFH Security RemoDesk ensures safety and security for WFH operations Utilize built-in PC camera Remote monitoring to ensure WFH governance Examples of detection items Built-in camera Absence Spoofing Peeking Smart phone usage Utilize external camera External camera Eating Raising hand • By
Slide 14: Fashion analysis enables product planning, EC marketing, and O2O
Services: Fashion Analysis Fashion analysis enables product planning, EC marketing, and O2O* Item detection from social media Automatic classification of detected items Trends over seasons and years Contributions across the country Winner of Deep Learning Business Award • Digitizing apparel product
Slide 15: Sales strategy 1: Installation to independent sites
Sales Strategy: Independent Locations Sales strategy 1: Installation to independent sites Neural Pocket Universe of Neural Pocket AI service installation Installation Examples sites (# of locations within Japan*1) (Previously released) Parking Lots Retail Stores Commercial Buildings 5.2 M 1.0 M 200
Slide 16: Sales strategy 2: Installation to urban development and governments
Sales Strategy: Urban Development and Governments Sales strategy 2: Installation to urban development and governments Domestic Promoting regional revitalization Overseas through urban development using AI in the field of tourism Greenfield large scale and urban policy smart city development Regional
Slide 18: FY2020 Q3 Key Highlight Summary
FY2020 Q3 Key Highlight Summary Growth Sustainability Revenue Growth Profitability Revenue and +104% 24% Profit Growth YoY Growth OP margin over the last seven quarters FY2019 Q3 vs FY2020 Q3 Patents Free Float Weight Employees 7 approved Free Float Weight 35 employees *2 10 (+3) submitted 15.2%+ *1
Slide 19: FY2020 Q3 Financial Performance
FY2020 Q3 Financial Performance Net Sales Operating Profit Operating Profit Margin (millions of yen) (millions of yen) (percentage) Ongoing new service launches and new customer acquisitions 184 24.0% 163 163 Outlook Outlook 126 15.5% 90 16.5% 9.3% 62 44 Outlook 32 25 27 11 -21 -52 -71 Q1 Q2 Q3 Q4 Q
Slide 20: FY2020 Q3 Statement of Income
FY2020 Q3 Statement of Income (millions of yen) FY2019 FY2020 FY2019 FY2020 Q1-Q3 Q1-Q3 Q3 results Q3 results YoY YoY results results Net sales 90 184 +103.9% 185 511 +176.5% Gross profit 57 162 +181.1% 118 466 +293.0% GP margin 63.8% 87.9% +24.2pt 64.2% 91.2% +27.1pt Operating profit -21 44 - -144
Slide 21: FY2020 Q3 Financial Results Forecast
FY2020 Q3 Financial Results Forecast (millions of yen) FY2019 FY2020 Full-year Full-year YoY results forecasts Net sales 311 776 +149.4% Operating profit -133 165 - OP margin - 21.3% - Ordinary profit -139 139 - Net profit -139 115 - NP margin - 14.9% - Copyright © Neural Pocket Inc. All Rights Rese
Slide 22: FY2020 Q3 Balance Sheet
FY2020 Q3 Balance Sheet (millions of yen) FY2019 FY2020 As of Dec 31 As of Sep 30 vs 2019 Dec 31 Total current assets 919 1,528 +608 Cash and deposits 825 1,371 +545 Total non-current assets 137 205 +68 Total assets 1,056 1,734 +677 Total liabilities 431 617 +185 Interest bearing debt* 378 565 +187
Slide 23: Latest Free Float Weight
Latest Free Float Weight IPO*1 IPO*1 Shares sold by VC etc.*2 4.6% 4.6% (Company research) Free float weight 10.6% 4.6% Total number of issued shares Total number of issued shares Free float weight 13,784,000 13,971,200 15.2% + August 20, 2020 October 31, 2020 (Immediately after listing) *1 Total 41
Slide 25: Future growth strategy
Future growth strategy Self-running sales growth in collaboration with business partners (Outstanding growth) Public Today Service creation and listing stable sales expansion Founding (Continuous growth) Jan. 2018 Aug. 2020 Approx. 2022 Business Deepening of Business Expansion Creation Business Mode
Slide 27: Edge AI can operate AI compactly and protect personal information
Edge AI can operate AI compactly and protect personal information Cloud AI Edge AI Original data (video, etc.) before AI analysis ） Metadata after AI analysis (number) ） Real-time marketing and security data AI analysis on a large scale server Large scale data Small scale server data server Send and
Slide 28: End-to-end AI development capabilities are our root source of competence
End-to-end AI development capabilities are our root source of competence Learning data AI code AI function Business collection development support model (Data annotation) Conven- Contracted tional Manual Open source Cloud approach （large server） development Neural Pocket approach Academic Joint biz
Slide 29: 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 2020 Earnings Presentation on 6ix

Neural — Neural Pocket — Q3 2020 Earnings Presentation

Slide 1: Financial Results FY2020 Q3

Slide 2: Introduction

Slide 3: Contents

Slide 4: We enjoy extraordinarily convenient online experiences today

Slide 5: Unmet needs in physical spaces

Slide 6: AI Smart City Revolution

Slide 7: A new major market is being created in the field of smart cities

Slide 8: Neural Pocket has developed services that enable smart cities

Slide 9: People flow and crime prevention services are essential for smart cities

Slide 10: Parking and mobility services are universal across countries

Slide 11: 3D city mapping services accelerate mobility services

Slide 12: Our AI signage connects real advertisements to the Internet

Slide 13: RemoDesk ensures safety and security for WFH operations

Slide 14: Fashion analysis enables product planning, EC marketing, and O2O

Slide 15: Sales strategy 1: Installation to independent sites

Slide 16: Sales strategy 2: Installation to urban development and governments

Slide 17: Contents

Slide 18: FY2020 Q3 Key Highlight Summary

Slide 19: FY2020 Q3 Financial Performance

Slide 20: FY2020 Q3 Statement of Income

Slide 21: FY2020 Q3 Financial Results Forecast

Slide 22: FY2020 Q3 Balance Sheet

Slide 23: Latest Free Float Weight

Slide 24: Contents

Slide 25: Future growth strategy

Slide 26: Appendix

Slide 27: Edge AI can operate AI compactly and protect personal information

Slide 28: End-to-end AI development capabilities are our root source of competence

Slide 29: Disclaimer

Slide 30: Copyright © Neural Pocket Inc. All Rights Reserved.