FY2023 1Q Results Briefing Materials
Aug. 10, 2023

Message

Revenue was 1.79 billion yen, up 22.3% YoY. Start within expectations under the new
structure. Start of full-scale PMI for Zelto, acquired at the end of last fiscal year.
Marketing SaaS business performed well.
Orders for SFA/CRM enterprise projects progressed, and revenue increased 55.2% YonY.

Overseas business grew by 45% in gross sales YonY and began full-scale PMI of Zelto.
Advertising business started strong within 1Q. Under the slogan of "strengthening the adtechnology business," the company began to expand its market share in new areas such asretail media, video, and dynamic advertising.
Demand and AI business strengthened its structure through business succession.

1

Topics.
「GENIEE SFA/CRM」adds new functions.
The combination of GENIEE

new functions

Functions to be released in the future

SFA/CRM with ChatGPT
functions promotes operational
efficiency for client salespeople.

We plan to continue
incorporating new functions
utilizing AI technology into theGroup's products in the future.

・Automatic summarization ofminutes, etc.
・Auto-Create Mail

Forecasting orderprobability for prospective
customers

Identify & extract
BANT information

Classification ofbusinessmeetings by trend

Example of man-hours saved by new functions① Time to prepare for business meetings (1 to 0 hours)
Enables quick research on industry issues and other informationnecessary for proposal preparation② Time to prepare minutes (1 to 0 hours)
Including transcription and summary of business meetings③Mail Composing Time (1 to 0 hours)
Automatic creation of thank-you e-mails after business meetings④Entering Information into Sales Management Tools (1 to 0 hours)
Input information by simply talking to the AI assistant2© Geniee, Inc.

Topics.
Expansion of Demand Business
GENIEE RMP Business Overview
Value Commerce, which provides
total solutions from "customer
attraction" to "customer
retention," and ZETA of the

Scigineer Group, which has thelargest market share in Japan for
EC product searches, haveentered into an alliance with
GENIEE RMP, which has

functions for ad posting anddistribution in our retail media.

Furthermore, by taking overBusiness Succession

business partnership
Maximize revenue and maximize
brand effectiveness for ecommerce businesses by working
with ZETA‘s「ZETA CX Series」

Acquired KANADE DSP from Deqwas,
enabling personalization of advertisements
according to user interests and concerns, andcontributing to expanding advertisers' brandrecognition and fostering quality customers.

KANADE DSP, the DSP businessCompany Profileof the Scigineer Group, we have
expanded our dynamic targeting
functions.

3© Geniee, Inc.

Expanding the scope of offeringsand enhancing customer
acquisition and new productdevelopment through the alliancewith Value Commerce, Inc.

◼

name of company

Deqwas, Inc.

◼

Representative

Representative Director Shinichiro Yoshii◼

head office◼

Established

KDX Hamamatsucho Center Building 7F, 1-22-5
Hamamatsucho, Minato-ku, Tokyo
Mar. 2020◼

Capital10 million yen◼

Business content

Internet media business, Internet advertising agency
business, etc.

Topics.
About JAPAN AI
In April this year, JAPAN AI
Chat(™), an in-house AI assistantServices provided

Corporate AI Assistant Service
JAPAN AI Chat(™)

Providing AI tocompanies
andConsulting

Product developmentusing GPT/Large-scalelanguage models

Utilizing AI New products andfunctions(To be released on an
ongoing basis)

Additional ❶Data Linkage

additional❷ function callservice, was released, adding
new functions to automaticallylink external data and acquire
function
additiondata.

In addition, by taking over all ofNavier's high-resolution image

technology, the company will
expand its engineering resources
for generative AI and accelerate

Corporate AI Assistant Service「JAPAN AI Chat(™)」By building an AI dialogue environment customized foreach company, employees' work efficiency andproductivity can be improved. The system is equippedwith a high level of security, so it can be used without
the risk of information leakage.

Customers can link the latest
data themselves

Automatically selects specificfunctions and acquires information
based on input content

Business Succession

the development of services that
improve business efficiency andproductivity.

4© Geniee, Inc.

Company Profile

Improving operational efficiency andproductivity through the use ofgenerative AI technology by
combining Navier's image processing
technology with JAPANAI's AI
expertise and product development
capabilities◼

name of company Navier, Inc.

◼

Representative

Taku Shibuya, Representative Director◼

head office

9-2 Nibancho, Chiyoda-ku, Tokyo, Japan◼

EstablishedFebruary 9, 2018◼

Capital

120 million yen◼

Business content

Development of deep learning-based image
processing technology

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policyPurpose

Business Purpose
The worldview behind Geniee products and services

To create a world where anyone can succeed at marketing

Corporate Purpose
Our organization’s long-term goal and raison d’etre

To serve Japan and Asia as a Japan-based global technology company

6⚫

The GENIEE Group provides comprehensive support for solving increasingly complex
and sophisticated marketing issues⚫

Aiming for a world where companies can more smoothly spread their high value-added
products and services throughout society by lowering marketing hurdles• GENIEE Group aims to be...

Task
Advertising
effectiveness
optimization

Ad revenue
optimization
Effectivenessmeasurement

Ads

A world where anyone
can succeed at marketing

Data
Data
analysis
accumulate
Organizational and System Issues
Data visualization

Combination ofmultiple systems

Recruitment
and training

Cost control

Data centralizationData
cooperation
Customer success

7

Content andmarketingNurturing

Customermanagement
Sales
standardization andefficiency• One-stop
platform• Diverse Products
Domains•

High cost-performance•

Automation and streamliningof operations

Business Portfolio andConsolidated Gross Profit Trends
In FY2016, our main business

Gross profit

5.1( JPY billion )Marketing SaaS Business“GENIEE SSP” became one of the2022/7

top in its business area in Japan.
In 2016, the company began

2022/2

offering SaaS products and2022/1

expanded its business with

2021/11mergers and acquisitions.
Overseas operations have been

2021/7*Advertising Platform
Business

expanding since 2012, and with

2020/112018/11*the acquisition of ZELTO in 2023,
2018/6

Overseas Businessthe percentage of overseas sales

2023/3

2016/7will increase significantly.

2019/2

2015/1
2014/3
2011/4
Areas served

FY2011•

8© Geniee, Inc.

Singapore Vietnam
2012/82013/9Indonesia

2023/2

2015/9FY2015FY2017FY2018FY2019FY2020

FY2021 FY2022

Those in red were acquired through M&A. Note that the first business acquired by GENIEE CHAT was the former Chamo and the second was
the former Engagebot, now branded CHAT

Business domain
We provide companies withconvenient, cost-effective
marketing solutions. Through

Ad

Data
accumulation

Customer management

Data linkage

Data analysis

the companies we serve, wedeliver accurate marketing

Ad Platform Business

Marketing SaaS Businessthat is relevant to users.

Awareness

9© Geniee, Inc.

Visits site

Compares,considers

Reserves/
VisitsPurchase

Repeatpurchase

Prevent
cancellation

Conversion
to high-quality
customerMarket size
Online ad market growth
The marketing technology
industry in which we operate

Newspapers

Magazines

Radio

TV

SaaS market growthInternet(online ad market and SaaS
market) is growing rapidly due to（JPY trillion）（JPY
35trillion）

1.2

3.0
30

1

the prominence of online media
and advances in digitaltransformation.

2.5

25

0.8

2.0

20

0.6
1.5

15

0.4
1.0
10

0.2

0.5
5

0

15 16年
16 17年
17 18年
18 19年
19 20年
20 21年
21 22年
22 （Year）
15年
Source: Dentsu Inc., "Advertising Expenditures in Japan"

10© Geniee, Inc.

2019
19年

2026
(Forecast)
24年（予想）Source: Fuji Chimera Research Institute, "Software Business New Market 2020 Edition”

Target market
We estimate the serviceable

TAM:

addressable market for our services
to be approximately 3 trillion yen, and

5.2 trillion yen(Total for Ad Platform Business, Marketing SaaS Business and Overseas Business)the potential market is estimated toSize of the markets where we operate businesses ※1

be approximately 5 trillion yen.
※1 Total of advertising platform business, marketing SaaS businessand overseas business (SSP). It means the maximum market size
assumed by the Company and is not calculated for the purpose of
showing an objective market size for the businesses operated by
the Company in FY2023. (Refer to the search advertising market,
SNS advertising market, display advertising market, affiliate
advertising market, DOOH ad serving platform market, and otherperipheral markets in the "2020 Japanese Advertising
Expenditures: Detailed Analysis of Internet Advertising Media
Expenditures" survey conducted by Dentsu Inc. (See the searchadvertising market, SNS advertising market, display advertisingmarket, affiliate advertising market, DOOH ad serving platform
market, and other peripheral areas in "Detailed Analysis of Internet
Advertising Media Expenditures in Japan 2020" by D2C ResearchInstitute, Inc. (Cross-sectional tabulation).
※2 Total of advertising platform business, marketing SaaS business,and overseas business (SSP). The potential market size of theadvertising platform business is the sum of the market share that
could be obtained from the respective market sizes in searchadvertising, SNS advertising, display advertising, affiliate
advertising, DOOH advertising, and other peripheral domains,
taking into account the industries and characteristics of target
customers for each service domain provided. (Prepared by theCompany based on "2020 Japanese Advertising Expenditures:
Detailed Analysis of Internet Advertising Media Expenditures" byDentsu Inc., Dentsu Digital Inc. and Cyber Communications, Inc.
and D2C Research, and "Martech Market Status and Outlook
FY2019" by MIC Economic Research Institute.
The potential market size of the marketing SaaS business is thetotal annual spending money by all potential customers if each
SaaS product is introduced at all potential customers of the Groupin Japan. All potential customers are classified into the largest,large, medium, small, and micro businesses according to the sizeof the number of employees. The number of potential customers
was calculated by assuming the percentage of companies using
the service and the number of employees using the service foreach business size. Prepared by the Company based on the 2016
Economic Census - Activity Survey: Summary of Enterprises, etc.,
Cross-sectional Industry Data.

11© Geniee, Inc.

SAM:

2.9 trillion yen(Total for Ad Platform Business, Marketing SaaS Business, and Overseas Business)
The size of the markets we can offer our services※2

SFA, CRM, MA, Chat, Site

SearchSSP, DSP, DMP, DOOH

Obtainable markets in near
futureDomains obtainable byPotential markets
extending enhanced versionsof current products andservices

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policy© Geniee, Inc.

FY2023 1Q
Summary（JPY million）

Revenue increased 22.2% YoY. Grossprofit increased 17.1% YoY, and theoverall business maintained
improved performance.

IFRS(Net sales is
net)

IFRS
(Net sales is
net)

FY20221Q(a)FY20231Q(b)Inc/Dec(b-a)
Amounts

Despite cost increases due to hiring,

operating profit exceeded the plan in

Revenue

1,468

1,795

327

＋22.3％

9,600

Gross profit

1,171

1,372

201

＋17.2％

7,800

Operating income

191

107

-83

-43.7％

2,000

Income before
income taxes

218

5

-213

-97.6％

1,900

Net income

175

2

-172

-98.6％

1,500

Net Income
attributable toowners of parent

178

1

-176

-99.4％

1,500

1Q.
In addition, the amount equivalent to
the earnout to be paid to％

FY2023（Budget）

management upon achievement of
Zelto's future performance wasrecorded as a financial liability in the
BS at the time of acquisition.
The depreciation of the yen from theend of March 2023 to the end of June
2023 caused a foreign exchange lossof 86 million yen related to thisfinancial liability, which temporarily
reduced net income.

13© Geniee, Inc.

FY2023
Quarterly Results

Revenue

Gross profit

Operating income

The advertising platform

億（Unit:100 million yen）

20

business is seasonal, with 3Q

17.9

17.3
16.8

and 4Q being busy periods.

16.5

15.7
15

14.7

The company achieved the same

9.7

13.8

13.7

12.5

level of performance in 1Q as in

11.7

the busy season in 4Q. Sales
revenue remained steady, and10gross profit increased 17.1% yoy.
Growth compared to the previous
quarter.

FY2023 1Q operating income was

5

2.5
2.6

above plan.

1.9
1.1
0
1Q

2Q

3Q
FY2022

FY202214© Geniee, Inc.

4Q

1Q
FY2023

FY2023

Highlights
by segment
Ad Platform Business

Marketing SaaS Business

Overseas Business（Unit:100 million yen）

Revenue

Revenue

Revenue

9.4

63

Segment income

Segment income

Segment income

4.6

0.4

0.5

Ref

Operating income

2.3• Launched several businessalliances in GENIEE RMP andalso took over the DSP business.
• Demand area grew in 1Q.Kanade
was consolidated from 2Q, and2Q plan for Supply Division wasrevised upward.

15© Geniee, Inc.

Ref

Operating loss

1.6

• GENIEE SFA/CRM to start
providing services using ChatGPT.
• In the SFA/CRM account, thenumber of accounts increased
steadily due to the development oflarge-scale projects.

Ref

Operating income

0.3• Expanded business domain bymaking Zelto a wholly owned
subsidiary in February 2011
• Full-scale integration with Zelto
regarding organization andstrategy began

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policy© Geniee, Inc.

Ad Platform Businessadvertisers
Use in promotion
Technology that displays

Technology that displays

personalized ads

personalized ads

Provides high profitability for• Ad platform for maximizing advertising revenue

Providesprofitability formedia
and highhigh costmedia and highcosteffectivenessfor advertisers
effectiveness for advertisers• Uses GenieeSSP’s ad inventory, one of the largest inJapan• Attracts quality audiences at low cost
• 80B impressions per month available
Monetizes ad space
publisher

17© Geniee, Inc.

80B impressions per month ・0.1B UU

Ad Platform Business
Gross Profit
YoY（Unit:100 million yen）

1.2%upAlthough the supply business
was affected by market

10

conditions to a certain extent inareas such as apps, videos, and8collaboration with overseas
operators was successful.

7.9

7.8

1Q, product development in new

66Demand 1Q achieved the plan.
Aiming to achieve the plan in 2Q

and beyond by consolidating

4

KANADE, which was acquired by
the Company.
2

0
1Q

2Q

3Q
FY202118© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

Ad Platform Business
KPI

Customers(*1)

Continue to improve the added（No. of companies）

3,000

2,000

value of products and aim toincrease the number of

1,000

companies and company units.
0
20/6

20/9 20/12 21/3

21/6

FY2020
Average revenue
per customer(*1)

21/9 21/12 22/3

22/6

FY2021

22/9 22/12 23/3
FY2022

23/6
FY2023（Ten thousand yen）

16
12
8
4
0
20/6

20/9 20/12 21/3
FY202021/6

21/9 21/12 22/3
FY2021

22/6

22/9 22/12 23/3
FY2022(*1) Calculated based on net amounts recognized.
Figures for ad management agency and DOOH are calculated by including comparative information from previous years.

19© Geniee, Inc.

23/6
FY2023

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policy© Geniee, Inc.

Marketing SaaS Business

Management of sales andcustomer information

Cultivation of highquality customers

The only Japan-made sales
and marketing platform thatenables integrated execution

Centralizing internal data

and management from

Customer management,
cultivation of high-quality
customers

Supporting purchasescustomer attraction to sales

promotion to receipt ofordersAnalyzing internal data

Measuring advertising effectiveness andproviding reports

21© Geniee, Inc.

Increasingpurchase intent

High-speed display of LPs

Marketing SaaS Business:
Hight light
Revenue and ARR grew

Revenue / YoY Growth Rate

Recurring Revenue ratio (*1)
/ YoY growth rate

603Mil／+55.2%

83.0 % ／+9.7point

Gross Profit Margin

ARR / YoY Growth Rate

75.1%

2,072Mil ／+50.6%

Segment income

ARPA / YoY Growth Rate

44Mil

14,000yen ／+18.8%

significantly compared to thesame period last year.

(*1) Calculated based on figures 12 months back from the end of the period.

22© Geniee, Inc.

Marketing SaaS Business:
Revenue
Revenue increased 55.2% YoY
due to an increase in the number

YoY
55.2%up（Unit:100 million yen）

7

6

of accounts.
Revenue reached a record high6

on a quarterly basis.
5

3.8
4
3

2
1
0

1Q

2Q

3Q
FY2021

23© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

Marketing SaaS Business:
Number of paid accounts
KPI

YoY
23.7%up（accounts）

Aim to increase the number ofpaying accounts by expanding
the functions of SaaS products
and increasing market share by

18,00015,00012,000
9,000
6,000
3,000

strengthening sales channels.
21/6

In addition, the company aims to

21/9

21/12

22/3

22/6

22/9

FY2021further reduce the churn rate by

22/12

23/3

FY2022

23/6
FY2023strengthening its products andcustomer success.

churn rate
1.8%

1.2%
0.6%
0.0%
1Q

2Q

3Q
FY2021*3-month average churn rate for accounts

24© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

Marketing SaaS Business:
KPI•

R&D(*1)(*2)

S&M(*1)(*3)

As for R&D, the R&D ratio is42%

gradually decreasing due to39% 39%an increase in MRR.
•

S&M ratio in FY2022 is on an

18%

41%
37%

43% 43% 42%

38%

16% 17%

upward trend due to the15%

increase in the number of

14%

13% 12%business-side members.
•

G&A(*1)(*4)

11% 11%

G&A is also on the rise due to
10% 10% 10%

the increase in corporate staff.

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2021

FY2022

FY20231Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

FY2021

FY2022

FY2023

11% 12%

14%

15% 15% 15%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2021

FY2022(*1) Calculated based on figures going back 12 months from the end of the quarter.
(*2) Abbreviation for “Research and Development.” Total of personnel expenses for engineers and other expenses related to research and development.
(*3) Abbreviation for “Sales and Marketing.” Total of advertising expenses, personnel expenses for sales staff, and other expenses related to sales and marketing.
(*4) Abbreviation for “General and Administrative.” Total of personnel costs, related expenses, and common expenses of the corporate departments that should be borne by theMarketing SaaS business.

25© Geniee, Inc.

FY2023

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policyOverseas Business
Overseas locations
Started overseas expansion in
2012. Overseas development of aplatform that maximizes
advertising revenue andeffectiveness for Internet media
and advertisers, mainly in the
fast-growing Asian region.

In February 2023, Zelto, Inc. will

be made a wholly owned
subsidiary, and the company will
not only develop GENIEE SSP
overseas, but also link andexpand the functions of Zelto

Business•

products with the services it•

provides.

•Developed business in Europe, the U.S., and the APAC region, and established a position as the market
leader in the advertising revenue optimization domain in the APAC region.
In addition to providing Google's reseller business and GENIEE SSP, Zelto offers Adpushup (adrevenue optimization solution) and Adrecover (ad inventory monetization solution) services.
Zelto has been certified as a GCPP Premier Partner* by Google.

※ Only a select number of partners who have met strict criteria and have expertise and skills in Google Ad Manager/AdSense are certified.

27© Geniee, Inc.

Overseas Business:
Gross Profit

YoY

45%up

There is seasonality in earnings,（Unit:100 million yen）

although earnings tend to expand

1.8

during the busy season in 3Q,

1.6

1.6

However, 1Q also saw 45% YoY

1.4

growth.

1.1

1.2
1
0.8

0.6
0.4
0.2
0
1Q

2Q

3Q
FY202128© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

Overseas Business:
Zelto PMI ProgressMarket environment is in line withinitial assumptions.

to resolve issues in the first halfof the year, and by the second
half of the year, it will implement
measures to increase market
share and achieve the plan.

In terms of management, theOrganization & Strategy

The company will set milestones

Step 1

Step 2

Step 3

FY2023 1Q

FY2023 2Q

FY2023 3Q~4Q

Understanding Business Issues

At Geniee Resources Solving
Business Challenges

Implementation of the newstrategy created at GENIEE's
initiative.

• Participation in the decisionmaking process and meetingbodies for important matters.
• Negotiations for the cancellation
or relaxation of minimum
guarantees in existing contracts.
• Implementation of cross-sellingin cooperation with theCompany and our overseas
companies.

• CEO Team dedicated to problemsolving is established. Project
management to be led by Geniee.
• Dispatched Head of Marketing to
the site.
• New strategy for market share
expansion is discussed.
• Build group synergy. Improvementof sales/marketing/CS

company aims to establish agovernance structure forwhile being conscious ofnumerical and cost control
systems.

29© Geniee, Inc.

Controlchanges in the prime market,

Short-term PMI execution

Understanding the governancestructure• Implementation of amanagement accounting
system for the Geniee Group.

• Identify and improve
compliance with local legal
and labor regulations.

• Maintain profitability by
reducing SG&A expenses, etc.

• Checking the status ofinternal control systems.

• Organizational integrationof the existing overseas
operations and Zelto, Inc.

• Implementation of new
strategies (sales,
marketing, and productstrategies) in the neworganization.

Establishment of governancestructure and Operational
Improvement• Integration of various tools.
• Confirmation of thedevelopment and operationof internal controls.
• Resolution of governanceissues.

1. Business Overview
2. FY2023 1Q Results
3. Ad Platform Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-to long-term policy© Geniee, Inc.

Planning Assumptions
In FY2023, the company will

External Environment

Investment Philosophy• In FY2023, we assume the impact of
declining demand for advertising due
to recession in major developed
countries as a result of rising interest
rates.

• Continue to invest in new technology
areas that will become sources ofcompetitiveness and in development
necessary to secure competitive
advantage• In FY2024, the recession will returnto the level of FY2022, and in FY2025,
the recession will end as a result of
lower interest rates in the U.S., andthe economy will begin to recover.

• On the other hand, until the timing of
the prime market change, we will not
conduct large-scale M&A that will
have a significant impact on ourgroup's management structure.

strengthen its profit structure
through cost reductions against
the backdrop of declining

advertising revenues due to therecession in the U.S.
For FY2024 and beyond, which
will be the recovery period, thecompany will resume investment
in growth and, after the change ofprime market, will aggressively
pursue M&A with synergies withexisting businesses.

31© Geniee, Inc.

New Medium-Term Management Plan
Overall Policy

Business Strategy
Marketing
SaaS Business

Ad Platform Business

Strengthening ofmanagementfoundation

Although a short-term recession
SSP
area

is expected, the company will
provide innovative business for

DSP
area

Further Growth

the next boom period bypromoting operational efficiency

Domestic

and product improvement by• Expand market sharein unexplored areas
and enterprise areas

enterprise
Territory Expansion• Expand use of RMP
through businessalliances• Focus on marketing
initiatives with high
ROI

• Expand market sharein performance area

expanding its market share in theenterprise domain andSustainability

New Product,
Expand market sharein existing areas• Reinforcement oflarge distributors

Newbusiness

establishing an AI subsidiary,

Establishment of a subsidiary for AI business and collaboration in the marketingdomainalong with re-growing its ad• Chat GPT to support business efficiency

technology business.

• Further improvement of our products using
AI

Overseas• Sales of ZELTO products in Japan andabroad• Global coordination of resources andmanagement functions© Geniee, Inc.

• Increase in the ratioof foreign nationals

Productivity• Gross
Profit/Employees• Improving Corporate
Operational
Efficiency with CHATGPT

Monitoring Systemand strengthen
governance• Each KPI indicator
Weekly management

Collaboration between domestic and overseas suppliers

32• Increase ratio of
female employees• Goal management by
OKR• Strengthen
management systemfor prime market
changesNew Medium-Term Management Plan
target value
FY2023(Plan)

Considering the impact of therecession in the U.S., for FY2023,

FY2025(Plan)

domestic and overseas supplyside businesses were realisticallyplanned, but are performing as

Sales revenue

expected.

9.6 billion yen

16.2 ~ 20.2

7.8 billion yen

13.2 ~ 16.4

billion yen

For FY23, re-strengthening
domestic and overseas ad-techbusiness, building a corporate

Gross profit

structure on a global level, andbillion yen

utilizing AI and promoting
business are high priorities.
In FY2025, we will utilize all

Operating income

2 billion yen

options for collaboration and
M&A, while aiming for organic
achievement.

33© Geniee, Inc.

Attributable to parent
company
Net income

1.5 billion yen

4.5 ~ 5.5billion yen

3 ~ 3.7
billion yen

FY2023
Full Year Earnings Forecast（ JPY million ）Revenue

FY2023（ forecast）

6,455

9,661

Maintain high growth with revenue

Ad Platform Business

3,918

4,819

growth of 50% YoY and gross profit

Marketing SaaS Business

1,976

3,173

growth of 52% YoY.

Overseas Business

783

1,686

△223

△20

Gross profit

5,142

7,804

Segment income

2,457

2,006

2,163

2,683

（Adjusted amounts）
For the Advertising PF business,revenue is expected to increase
through expansion in new areas andexpansion of market share in existing

Ad Platform Businessareas.

Marketing SaaS Business

85

608

Overseas Business

338

700

△131

△1,985

2,457

2,006

Ad Platform Business

1,417

1,697

initiatives with high ROI, and aim toMarketing SaaS Business

△545

△260

increase customers in the enterprise

Overseas Business

273

588

domain and improve MRR by（Adjusted amounts）

1,312

△18

Income before income taxes

2,279

1,912

Net income attributable toowners of the parent

2,114

1,506

For the Marketing SaaS business, thecompany will continue to invest in
development to increase productcompetitiveness, focus on marketingstrengthening agencies.

（Adjusted amounts）

Operating income*FY2023 (Forecast) Basic earnings per share 83.82 yen

34

FY2022（actual results）© Geniee, Inc.

FY2023
Quarterly Earnings Forecast
Revenueincome are expected to increasesignificantly this fiscal year.
There is seasonality in earnings,

Gross profit

Operating income（ （Unit:100 million yen ）億Sales revenue and operating

30

25

and earnings are expected toincrease during the peak season
in 3Q and 4Q.

Although costs were expected to

15

16.8

15.7

14.7

11.7

increase in 1Q FY2023 due to anincrease in hiring members to

17.4
13.8
16.5

20

13.7

12.5

13.4

10
NormalOperating
Profitpromote the advertising platformbusiness and marketing SaaS

17.9

5

business (higher personnel and

3.6

2.6

1.9

3.2

1.0

recruiting expenses), operating
income exceeded the plan.

0
1Q

2Q

3Q
FY202235© Geniee, Inc.

4Q

1Q

2Q

3Q
FY20234Q

Stock price

Stock price (JPY)

Gross profit (JPY million)（JPY million）

Share price: JPY 1,310, as of

(JPY)

1,600

Aug 9, 2023
While pursuing solid growth in

2000
1,400

the short, medium, and long term,
1,200

we will enhance our IR activities
to support an increase in our

1,000

share price.

800
1000
600
400
200
0

0
1Q

2Q

3Q
FY202136© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

APPENDIX

Genie'sCompetitive Advantage

Competitive products, synergies among businesses, and global
expansion

With our organization, culture,and management foundation, we
have built a system that enables

SSP

DSP

Business
SEARCH and
Recommendation

CHAT andEffectivenessMeasurement

us to develop additional

functions at each business layer
through competitive analysis of

SFA/CRM/MA

products, cross-sell products tohomogeneous customer
segments, and expand globally

through group cooperation.

Managementfoundation

Organization& Culture38© Geniee, Inc.

Monitoring

Capability• Count management basedon MTB, OBR, OKR, KGI,and KPI• High sales and development
capabilities• Product manager andbusiness developmenttraining environment

Business/ technology
workforce is
Nurturing Culture

Highest salary andIncentive of Internet
Advertising Industry in Japan

High productivity• Customer Sharing• Company-wide data
integration• AI Infrastructure

Globalknowledge

Positioning

Software & Professional Services
Total coverage from solution selection to productimplementation and operation

We have created a uniquepositioning that sets us apartfrom major foreign companies,
major online advertising

companies, and single product

Focus oncost-effectivenessfor customers

companies.

Provide customers withmaximum businessresults at low cost

39

© Geniee, Inc.

Comprehensive Products
company
Extensive productlineup that solves
marketing issues
single-handedly

Organic Growth x M&A

Glocal Business Activities

Aggressive execution of M&A toaccelerate organic growth of existing
businesses

Global development with
regional considerations

Strong commitment to customer successThree reasons customers choose us

All products are developed inhouse. We have a large team ofcustomer success personnel who
partner with customers to enable

their success. We tailor our

1

2

Japan-made marketing toolsthat anyone can master

Easy management,
Aggregation andanalysis of customers
and sales3

support to the challenges andapplications of each company,
from deployment toestablishment and utilization.

40© Geniee, Inc.

Robust support

Big Data/Technology
Big Data Processing Technology

Use of AI

High-speed data processing technology
capable of handling hundreds ofthousands of requests per second

DSP equipped with AI-based automatic
bidding function• Approx. 15 terabytes of data processed daily—among the top in Japan• Custom-built distribution system infrastructurewith on-premise servers• Data center in Singapore also used to support overseas distribution
41© Geniee, Inc.

• Automatic control of bids (unit price) and delivery volume
maximizes conversions while fulfilling target CPA• AI-powered machine learning algorithm trains with vast
amounts of data to accurately predict conversion rates with acontextual understanding of users and auctions

Knowledge of cutting-edge digital transformation and marketing
By using the vast data of ourCustomer assets/datacustomer companies, we add
value to our products andimprove the quality of ourservices. Promoting the crossselling of products in turn leads
to an increase in average revenue
per customer.

Number of ad views per month

Active customers

80B Impression

3,000companies

Blog / column

Full of useful tips on digital marketing42© Geniee, Inc.

Geniee platform, partnership with SoftBank Group
Asia

Overseas expansion since ourCollaboration with the SoftBank Group

third year. We have also
implemented numerous business

80 billion+410,000+50,000+alliances and investment M&As.

Impressions
Managed per monthInternational
Offices (JP HQ)

ActivePublishers globally

Campaigns
managed per monthglobally

We will fully leverage these• Ad distribution service using jointly
developed advertising platform• Cross-border ad distribution

advantages throughservice to attract customers forcollaboration with the SoftBank

inbound and cross-border EC

Group.

• Formulation and assessment ofplans for joint projects in Southeast
Asia

Indonesia
No.1 Mobile Carrier

43© Geniee, Inc.

Products that offer high value for customers—and the technical development capabilities to create them
Ad Platform Business（SSP）

44© Geniee, Inc.

Marketing SaaS Business（CHAT）

Senior Executive Officer
GENIEE SSP Division CEO

Senior Executive Officer
GENIEE CHAT Division CEO

Yuta Isobe

Atsushi Mizuno

Joined Geniee, Inc. in April 2016. He was transferred toSoftbank Corporation, a capital alliance partner. After
returning to Japan, he became the youngest sales manager
in the supply side business, and was appointed COO of the
supply side business division in October 2022, and COO of
the new DOOH business division in April 2023, becoming
Senior Executive Officer and GENIEE SSP Division CEO

After working at a major IT company where he launched new
businesses, he joined Geniee, Inc. in April 2011. After
working in the ad platform business, human resources, andmarketing technology divisions since its founding, he became
the representative director of REACT Corporation, whichbecame a wholly owned subsidiary in August 2021; he wasappointed GENIEE CHAT Division CEO in April 2022 andSenior Executive Officer in April 2023.

Ad Platform Business（DSP）

Marketing SaaS Business（SFA/CRM）

Senior Executive Officer and CSO
GENIEE DSP Division CEO

Senior Executive Officer
GENIEE SFA/CRM Division CEO

Yasuhiro Ishizaki

Hirotaka Ohashi

After graduating from Keio University, he joined GMO Ad
Partners Inc. He then launched several startup businesses
and became independent in 2018; joined Geniee, Inc. in
2021; appointed Executive Officer in October 2022; appointed
Senior Executive Officer and GENIEE DSP Division CEO
in April 2023.

Graduated from Hokkaido University and launched multiple
new businesses at an online advertising agency; joined
Geniee, Inc. in 2016; Manager, Product Planning Department,
Ad Technology Business in January 2018; Executive Officer
and CPO in charge of Product Management in April
2019,Appointed GENIEE SFA/CRM Division CEO in April
2022; Senior Executive Officer in April 2023.

Company Profile
Company name

Geniee, Inc.

Employees

566 (Consolidated, as of March 31, 2023)

Business

Ad platform business
Marketing SaaS business
Overseas business

Establishment

April 14, 2010

Headquarters

Sumitomo Realty & Development Shinjuku Oak

CapitalJPY 1,550 million

March 31

Tower 6th Floor, 6-8-1 Nishi Shinjuku,
Shinjuku-ku, Tokyo 163-6006
Representative

Tomoaki Kudo, President and CEO

End of fiscal year

Executive officers

Directors: Koichi Machida (Outside)Group companies

Business Search Technologies Corporation
CATS

Katsuyuki Toritani (Full-time, Outside)

Hypersonic, Inc.
Geniee International Pte., Ltd.

Yukio Todoroki (Outside)

Geniee Vietnam Co., Ltd.

Yoshitaka Sasaki (Outside)

PT. Geniee Technology Indonesia

Director and Audit & Supervisory Committee Members:

PT. Adstars Media Pariwara
45© Geniee, Inc.

Shareholder Composition (as of March 31, 2023)
Breakdown of shares by type of shareholder

Major shareholders
Name

Shares
Owned

Foreign(%)

corporations, etc.
8.1%

Tomoaki Kudo (President & CEO)6,544,400

36.26

SoftBank Corp.

5,625,000

31.16

Other
corporations

Geniee32.5%

NICE SATISFY LIMITED

40,2002.22

SBI SECURITIES Co., Ltd.

395,678

2.19

Takuya Yoshimura

385,300

2.13

Okasan Securities Co.,Ltd.

311,000

1.72

Geniee, inc.

310,676

1.72

MSIP CLIENT SECURITIES

241,200

1.33

GOLDMAN SACHS INTERNATIONAL

237,200

1.31

directors
36.3%

Financial instruments

Hiroshi Hirose

226,500

1.25

brokers

6.5%

Individuals and others
Financial
institutions
0.5%

46

© Geniee, Inc.

16.0%

Earnings forecasts and other forward-looking statements indicated in thesematerials are based on information available and certain assumptions deemed
reasonable at the time. Statements in these materials do not constitute any
guarantee of actual performance. Actual business results may differ substantially

due to various factors.