Gunosy, Inc. · TSE:6047
Gunosy — Q3 FY2023/5 Earnings Presentation
34 slides from Gunosy's earnings presentation, Apr 14, 2023
Slide 1: FY2023/5 Financial Results for Q3
FY2023/5 Financial Results for Q3 Gunosy Inc. TSE Prime (6047) April 14, 2023
Slide 2: INDEX
1. Executive Summary P3 2. Financial Results for FY2023/5 Q3 P 13 INDEX 3. FY2023/5 Outlook P 19 4. Business Overview by Division P 21 5. Reference Materials: Overview of Gunosy Inc P 27 （C） Gunosy Inc. All Rights Reserved. 2
Slide 3: Executive Summary
Executive Summary （C） Gunosy Inc. All Rights Reserved. 3
Slide 4: Financial Summary for FY2023/5 Q3
Financial Summary for FY2023/5 Q3 Q3 summary Net sales 2,116 million yen Operating profit 6 million yen QonQ 105.7％ YonY 95.5％ QonQ - YonY 22.3％ 1 KPIs for the Gunosy app remained stable, so advertising investment was carried out as planned. As a result of the advertising investment, Gunosy app sale
Slide 5: Factors behind Sales Increase / Decrease
Factors behind Sales Increase / Decrease In Game8, the number of page views increased due to major titles released in November, and sales increased both QoQ and YoY. While overall sales of Gunosy Ads decreased YoY and QoQ, sales of Gunosy app increased QoQ. Sales increase / decrease by Segment (Mill
Slide 6: Gunosy's Basic KPIs
Gunosy Gunosy's Basic KPIs Profitability per user remained high throughout Q3, including in December when advertising demand increased due to seasonal factors, resulting in QoQ sales growth. The retention rate remained steady and the number of users remained as planned. Financial data Gunosy’s net s
Slide 7: Gunosy Advertising Expenses and Estimated IRR
Gunosy Advertising Expenses and Estimated IRR Although cost per acquisition temporarily deteriorated in December, which is the advertising demand season, user acquisition progressed efficiently in Q3 as a whole. The estimated IRR remained above the investment criteria due to a stable retention rate
Slide 8: Advertising Investment in Gunosy
Gunosy Advertising Investment in Gunosy In Q3, increased amount of advertising investments were executed as had been planned. In Q4, we plan to invest at the planned level, considering return on investment and other factors. Advertising expenses (Plan and Results + Forecast scenario) Investment impl
Slide 9: Status of product improvement in Q4 and policy for the future
Gunosy Status of product improvement in Q4 and policy for the future FY23 Q4以降 FY23 Q1 FY23 Q2 FY23 Q3 Focusing on improving the Confirmed that グノシーの基礎 IRR remaining retention rate while Gunosy's basic return on implementing KPIs turning to an KPIが改善傾向 stable after raising investment (IRR) advertisi
Slide 10: (Reference) Indicators Referred to When Making Advertising Investment Decisions
(Reference) Indicators Referred to When Making Gunosy Advertising Investment Decisions We make our decisions based on the improvement of KPIs and the final return on investment. The advertising investments made since November were examined with KPIs set to criteria that would provide a satisfactory
Slide 11: slice: Progress on KPIs
slice Progress on KPIs Following the release of new products that comply with RBI guidelines (details: p 12), the AUM decline bottomed out and turned to growth from January. AUM Commencement of investment control AUM (outstanding loan balance) Product transition period AUM recorded a temporary decli
Slide 12: (Reference) Timeline since the Release of the Guidelines
slice (Reference) Timeline since the Release of the Guidelines For "slice," the product experience was changed to adhere to the Digital Lending Guidelines issued by the Reserve Bank of India (RBI), and the new product release was completed on time. The transition to the new product is well underway
Slide 13: Financial Results for FY2023/5 Q3
Financial Results for FY2023/5 Q3 （C） Gunosy Inc. All Rights Reserved. 13
Slide 14: FY2023/5 Consolidated Results for Q3
FY2023/5 Consolidated Results for Q3 For the nine months ended 28 February 2023, sales and profits were down year-on-year. Q3 sales and profits, however, increased QoQ due to the positive impact on Game8 from major titles and improved profitability due to the acquisition of new users in Gunosy app.
Slide 15: Total Number of Active Users (MAU)
Total Number of Active Users (MAU)* MAU of Gunosy app increased compared to Q1 this year due to an improvement in retention rates and increased advertising investment since November 2022. MAU of au Service Today declined QoQ due to the absence of a campaign implemented in the previous quarter. LUCRA
Slide 16: Breakdown of Net Sales
*1 Breakdown of Net Sales Game8's sales marked a significant QoQ increase. Gunosy Ads sales declined as a whole, but Gunosy app sales recorded an increase for the second consecutive quarter since Q2. Others (Million yen) Game8 ADNW 4,500 *2 Gunosy Ads 178 19 223 240 128 317 3,000 1,357 1,480 1,298 2
Slide 17: Cost Structure
Cost Structure 'Others' increased due to sales growth at subsidiaries. Otherwise, there was no significant QoQ change. We will continue to operate our business with strict cost control. (Million yen) 3,646 3,781 3,362 1025 1,111 3,000 983 2,337 2,304 917 2,135 2,085 2,187 2,176 2,110 2,048 1,974 2,0
Slide 18: Game8
Game8 As announced in the previous quarter, the positive impact of the release of major game titles was fully reflected throughout Q3, resulting in record sales. On the other hand, these positive impacts are expected to settle down from Q4 onwards. (Million yen) Record sales 500 451 457 470 435 441
Slide 19: FY2023/5 Outlook
FY2023/5 Outlook （C） Gunosy Inc. All Rights Reserved. 19
Slide 20: FY2023/5 Results Forecast (Consolidated)
FY2023/5 Results Forecast (Consolidated) The Results Forecast remains unchanged from the previous disclosure. In “slice”, AUM showed a recovery trend in the January-March period following the release of new products, but ordinary profit and profit *1 attributable to owners of parent remain undisclos
Slide 21: Business Overview by Division
Business Overview by Division （C） Gunosy Inc. All Rights Reserved. 21
Slide 22: "AI-powered Video Summarization Service" (Beta Version) Launched
Media Business “AI-powered Video Summarization Service” (Beta Version) Launched As part of creating our unique value, we launched a beta version of "AI-powered video summarization service" utilizing GPT-3.*1 We will continue to provide new value to both users and media partners while leveraging new
Slide 23: au Service Today
Media Business au Service Today In Q3, we improved the user interface to enhance the user experience and profitability of the main screen of the application. We are working on joint campaigns with KDDI. Profitability remained stable. Various measures under way Measures to Joint campaigns Status of p
Slide 24: Ad Network (ADNW)
Media Business Ad Network (ADNW) CPMs and number of impressions remained lower. We will continue to pursue business that yields the advertising effectiveness expected by advertisers and strengthen cross-selling with Gunosy Ads. Number of Impressions and CPM (Million imp) 60,000 ¥40 ¥31.33 imp CPM ¥2
Slide 25: Investment (Japan / India)
Investment Investment *1 The overall cumulative investment remains in the range of approximately 5 billion yen. There was no major change in the overall portfolio except for new investment in Indian VC as a LP * Investments made since October 2018, when the investment project was launched, are inclu
Slide 26: New Business YOU IN
New Business YOU IN We expanded our sales channels to retail stores with high gift demand, including Tsutaya, which has 11 stores nationwide. Increased awareness in offline stores leads to purchases through online sales, contributing to sales growth. Offline sales @Tsutaya Bookstore Quarterly sales
Slide 27: Reference Materials: Overview of Gunosy Inc.
Reference Materials: Overview of Gunosy Inc. （C） Gunosy Inc. All Rights Reserved. 27
Slide 28: 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, Yuya Taketani Yuya Taketani Director and Chief Investment Office
Slide 29: Our Management Team
Our Management Team The management structure for FY2023/5 is as follows. We are continuing to strengthen our governance, including the transition from a non-statutory Compensation Committee to a non-statutory Nomination and Compensation Committee（N&C） in December 2021. N&C N&C Representative Chief D
Slide 30: 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 31: Investment Policy Updates
Investment Policy Updates (Reposted from FY2023/5 Financial Results for Q2) In the media business, the return on investment showed progress due to the improvement of KPIs in Gunosy app. Therefore, we reassessed the growth potential of the Gunosy business and updated our investment policy, focusing o
Slide 32: Investment Portfolio
Investment Portfolio (Reposted from FY2022/5 Financial Results released on July 15, 2022) May 2019 May 2020 May 2021 May 2022 Investment ratio 0.98 0.99 1.11 5.36 (Million yen) *1 25,741 Accumulated investment *2 Estimated value + Sale price “Accumulated 5.4 investment” and times “Estimated value +
Slide 33: Disclaimer
Disclaimer Forward-looking statements contained in these materials are prepared from judgments and assumptions based on information available at the time of preparing the materials, and do not guarantee their accuracy. These materials contain financial data that have not been audited by an independe
Slide 34: Optimally deliver information to people around the world
Optimally deliver information to people around the world