Gunosy, Inc. · TSE:6047
Gunosy — Q1 FY2023/5 Earnings Presentation
36 slides from Gunosy's earnings presentation, Oct 14, 2022
Slide 1: FY2023/5 Financial Results for Q1
FY2023/5 Financial Results for Q1 Gunosy Inc. TSE Prime (6047) October 14, 2022
Slide 2: INDEX
1. Executive Summary P3 2. Financial Results for FY2023/5 Q1 P 13 3. FY2023/5 Outlook P 20 INDEX 4. Business Overview by Division P 22 5. Reference Materials: Overview of Gunosy Inc. P 30 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 Q1
Financial Summary for FY2023/5 Q1 Summary Net sales 1,927 million yen Operating profit -83 million yen YonY 84.6 YonY - DAUs declined YonY due to restrained advertising investment and other factors, resulting in the decline of sales and profit. However, long-term retention rate for the “Gunosy” app
Slide 5: Factors behind YonY and QonQ Sales Decline, and Countermeasures
Factors behind YonY and QonQ Sales Decline, and Countermeasures Due to individual factors in each business, YonY and QonQ sales declines were recorded in all businesses. Sales by Segment (Million yen) FY2023/5 Difference Factors and Countermeasures Q1 result YonY QonQ Gunosy Ads l The main factor be
Slide 6: Basic KPI of the "Gunosy" App
Basic KPI of the “Gunosy” App User levels are being maintained even with curbed advertising investment, and DAUs remain (*) above plan. Sales/DAU did not reach the plan, but other indicators remained strong. *S/D: Sales/DAU Basic KPI of “Gunosy” (*) DAU Retention rate % of new users S/D (*) FY2023 •
Slide 7: Future Investment Policy Considering the Current Status of the Media Business
Future Investment Policy Considering the Current Status of the Media Business Long-term retention rate for the “Gunosy” app improved, and marketing efficiency increased. In order to verify the growth potential of the media business, we plan to use a portion of Gunosy’s advertising expenses in 2Q and
Slide 8: Improvement in the Long-term Retention Rate Contributed to the Buildup of DAUs
Improvement in the Long-term Retention Rate Contributed to the Buildup of DAUs In Q1, we started measures to improve the long-term retention rate for the “Gunosy” app. Since July, when we began to see the effects of these measures, DAUs have been exceeding the plan. DAUs of Gunosy (compared to plan)
Slide 9: Policy Regarding Advertising Investment in Gunosy
Policy Regarding Advertising Investment in Gunosy In Q2 and beyond, we plan to use a portion of advertising expenses of the “Gunosy” app for 2H ahead of schedule. Once the user build-up situation and profitability improvement is confirmed, we will consider increasing advertising expenses on a full-y
Slide 10: Medium-Term Target (Released in July 2021)
Medium-Term Target (Released in July 2021) We intend to maintain the goal announced in the Medium-Term Management Plan, which was released in 2021. Through growth of the Gunosy Group as a whole, we aim to achieve a market capitalization of 100 billion yen over the mid- to long-term. Enhance corporat
Slide 11: Indicators of Gunosy: Improvement of Profitability per User
(Reference Material) Indicators of Gunosy: Improvement of Profitability per User DAUs of the “Gunosy” app remained steady, although advertising expenses were curbed in accordance with the policy announced in the previous quarter. Meanwhile, profitability per user has been in decline, and measures ar
Slide 12: Indicators of Gunosy: Improvement of Gunosy's Retention Rate
(Reference Material) Indicators of Gunosy: Improvement of Gunosy's Retention Rate The percentage of new users of the “Gunosy” app has been steadily increasing, rising to approx. 37% of the total user mix as of August 2022. Retention rate remains at an improved level. New users as % of DAU Improvemen
Slide 13: Financial Results for FY2023/5 Q1
Financial Results for FY2023/5 Q1 C Gunosy Inc. All Rights Reserved. 13
Slide 14: FY2023/5 Consolidated Results for Q1
FY2023/5 Consolidated Results for Q1 In Q1, net sales declined QonQ and YonY. Ordinary profit decreased significantly QonQ and YonY due to equity in earnings of “slice”, our equity method affiliate. Profit, however, increased YonY and QonQ due to the gain accompanying the changes in equity in "slice
Slide 15: Total Number of Active Users (MAU)
Total Number of Active Users *(MAU) MAUs of Gunosy remained steady despite curbing advertising expenses. Those of NewsPass + au Service Today declined. LUCRA NewsPass+au Service Today Gunosy Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2020/5 FY2021/5 FY2022/5 FY2023/5 * Average for each quarter of MAUs
Slide 16: Breakdown of Net Sales
Breakdown of Net Sales *1 Net sales declined QonQ and YonY in all businesses. (See p.5 for details.) Others (Million yen) Game8 ADNW 4,500 *2 Gunosy Ads 178 19 223 240 128 317 3,000 1,357 1,480 1,298 251 320 221 192 203 168 194 246 275 441 153 457 530 366 451 420 142 375 435 267 390 1,500 254 257 36
Slide 17: Cost Structure
Cost Structure Up to the current 1st quarter, we have operated our business under a policy of continued control of advertising investments. The increase in personnel expenses is attributed to the reinforcement of the media business and Game8 implemented up to the previous period. We will control the
Slide 18: Game8
Game8 The severe impact of lower sales in the media business, which has a high gross margin, was not fully offset by the steady expansion of the solutions business. As a result, net sales and profit declined YonY and QonQ. We will maintain a certain level of investment in new businesses. (Million ye
Slide 19: Game8: Supplementary Information
Game8: Supplementary Information We developed the plan taking into account that a certain degree of volatility will occur depending on the situation of game title launches. Profits are expected to be skewed toward 2H as major titles are scheduled to be released in 2H. Game8's net sales and operating
Slide 20: FY2023/5 Outlook
FY2023/5 Outlook C Gunosy Inc. All Rights Reserved. 20
Slide 21: FY2023/5 Results Forecast (Consolidated)
FY2023/5 Results Forecast (Consolidated) Progression rate of sales for Q1 marked 21.4%. We aim to achieve our full-year forecast through higher DAUs by using advertising expenses ahead of schedule and improved profitability by refining advertising logic, etc. (Million yen) FY2023/5 full-year FY2023/
Slide 22: Business Overview by Division
Business Overview by Division C Gunosy Inc. All Rights Reserved. 22
Slide 23: Media Business: Gunosy
Media Business Gunosy We are currently conducting tests with a selected group of the “Gunosy” app users to verify a change in the method of transition to the coupon tab to meet the needs of both news and coupon users. The “Gunosy” app: Under testing with selected users Background of Verification Pro
Slide 24: Media Business: au Service Today
Media Business au Service Today Aiming to become the most used application for au users as an information tool, au Service Today offers a variety of content. As a result of our efforts, profitability per user remained strong following the previous fiscal year. Baseball score widget provided Status o
Slide 25: Media Business: Ad Network (ADNW)
Media Business Ad Network (ADNW) Number of Impressions increased YonY and QonQ due to successful media development. CPM, however, remained weak. We will strengthen collaboration with Gunosy Ads and seek to increase the number of customers to improve CPM. Number of Impressions and CPM (Million imp) 6
Slide 26: Game8 Group: Progress in Game8
Game8 Group Progress in Game8 Support for game publishers by providing solutions, one of our new business pillars, is steadily expanding, which contributed to business results. Solution Development Business Solution Support Sales Support for resolving various issues in the game life cycle ranging fr
Slide 27: Investment: "slice" Progress on KPIs
Investment " slice": Progress on KPIs Most recently, in line with our business plan, we have been operating our business while restraining marketing activities. As a result, AUM grew only 13% QonQ, but grew as high as 670% YonY. +13% AUM growth Approx. AUM (outstanding loan balance) AUM growth Numbe
Slide 28: Investment
Investment Investment *1 The overall cumulative investment remains in the range of approximately 5 billion yen. Although exits were executed, there was no major change in the overall portfolio. * Investments made since October 2018, when the investment project was launched, are included in the follo
Slide 29: New Business: YOU IN
New Business YOU IN We are currently focusing on our business through "amenity and accommodation plans" deployed at several hotels and Japanese inns, resulting in the use of YOU IN to expand for special occasions at travel locations. Sales channels also expanded steadily, and the percentage of sales
Slide 30: Reference Materials: Overview of Gunosy Inc.
Reference Materials: Overview of Gunosy Inc. C Gunosy Inc. All Rights Reserved. 30
Slide 31: 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 32: 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 (*) in December 2021. N&C N&C Representative Chief Di
Slide 33: 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 34: Investment Portfolio (Reposted from FY2022/5 Financial Results)
Investment Portfolio (Reposted from FY2022/5 Financial Results) May 2019 May 2020 May 2021 May 2022 Investment 0.98 0.99 1.11 5.36 ratio (Million yen) *1 25,741 Accumulated* 2investment “Accumulated 5.4 investment” and Estimated value + Sale price times “Estimated value + Sale price” 4,805 813 808 1
Slide 35: 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 36: Optimally deliver information to people around the world
Optimally deliver information to people around the world