FY2021 3Q Results Briefing Materials
Feb. 10, 2022

Key messages
Gross profit grew 47.3% YoY; accumulated operating income was ¥0.4 billion—
significant progress toward achieving our full-year target

Introduced shareholder special benefit plan (Shareholder Premium Club)to enhance shareholder returns for individual investors
Newly defined our purpose
Integrated brands to accelerate creation of a one-stop platform
Established new company Marge as a subsidiary
Strengthened Marketing SaaS Business with support for measuring online adeffectiveness and automated report creation© Geniee, Inc.

1

Gross profit and operating income rose sharply tolevels above those of the previous full year.
Gross Profit

Operating Income（JPY million)（JPY million)

2,666

3,00030

2,608

500

+47.3%

400

2,50025+971.3%400
2,000201,810
300

1,50015195

200

1,000101005005

370

FY2020（3Q）

FY2020（Full year）

FY2021（3Q）© Geniee, Inc.

FY2020（3Q）

FY2020（Full year）

FY2021（3Q）

2

Newly defined purpose

World view realized by Geniee products andservices

To create a world where anyone can succeed at marketing

Organization’s long-term goal and raison d’etre

To serve Japan and Asia as a Japan-based global technology company© Geniee, Inc.

3Rebranding

Marketing technologythat works like magic

GENIEE has renewed its brands to align with the purpose of our business activities in 2022. Our
products and services are designed to realize our Business Purpose, "to create a world whereanyone can succeed in marketing." To communicate this more clearly to customers, we have newly
established the brands "GENIEE Marketing Cloud" and "GENIEE Ads Platform," and changed thenames of some of our existing services. Going forward, Genie will continue to evolve.
© Geniee, Inc.

4

Renewed product names and logos© Geniee, Inc.

5

Business Overview

Business Overview
Geniee operates an Ad Platform Business, which focuses on online advertising, and aMarketing SaaS Business, which provides marketing optimization software. We also offer
our products overseas, mainly in Southeast Asia.
Overseas expansion

SINGAPORE〇〇〇〇INDONESIA© Geniee, Inc.

7

Ad Platform BusinessTechnology that displays personalized ads
Provides high profitability for media and high costeffectiveness for advertisers
80B impressions permonth available

Monetizes
ad space

Use in promotion

advertisers

Uses GenieeSSP’s adinventory, one of the largest
in Japan

Ad platform for maximizing
advertising revenue

Attracts quality audiences atlow cost
~80B impressions permonth available

Full support for media ad
operations, backed by Geniee
technology and impression
volumes that are among thehighest in Japan© Geniee, Inc.

publisher

8Marketing SaaS Business
The only Japan-made sales and marketing platform thatenables integrated execution and management from
customer attraction to sales promotion to receipt oforders

Management of sales andcustomer information

Centralizing internal data

Cultivation of high-quality
customers

Customermanagement,
cultivation of highquality customers

Supporting purchases

Increasing purchase intent

Analyzing internal data
© Geniee, Inc.

9Overseas Business
Through our eighth year of overseas expansion and our structural transformation in FY2020,
we have achieved our largest-ever quarterly operating income. We have also implemented
numerous business alliances and investment M&As. Yuki Isobe (Director, Geniee
International) spoke at an industry conference in Asia.
Internationaloffices
Overseas expansion
since our third year

SingaporeIndonesia
Thailand
VietnamCoverage
In addition to ouroffices in Japan, we
have extensive
coverage of the Asianand North Americanmarkets.

INTERNATIONAL© Geniee, Inc.

10

Market size
The marketing technology industry in which we operate (online ad market and SaaS market)
is growing rapidly due to the prominence of online media and advances in digitaltransformation.
Online ad market growth

SaaS market growth
JPY trillion

JPY trillion
2.5
25Internet

20
2.0

TV

1.5
15

1.0
10
Newspapers

50.5Magazines

Radio

15年
152019

16年
16

17年
1718年
1819年
1920年
20(year)2024(forecast)

Source: Fuji Chimera Research Institute, "Software Business New Market 2020 Edition”
Source: Dentsu Inc., "Advertising Expenditures in Japan"© Geniee, Inc.

11

Target market
We estimate the serviceable addressable market for our services to be more than JPY 1trillion, with a total addressable market of nearly JPY 3 trillion.

*1. Total for Ad Platform Business and Marketing SaaS Business.
This indicates the maximum market size assumed by Geniee. It is not intended as an indication of an objective market size for the businesses operated by Geniee in FY2020. (Prepared by Geniee based on: data on search advertising market, social media advertising market, display advertising market, affiliate advertising market, DOOH advertisingdelivery market, and other peripheral areas in “Detailed Analysis of 2020 Japanese Advertising Expenditures and Internet Advertising Media Expenditures” by Dentsu Inc., Dentsu Digital Inc., Cyber Communications Inc., and D2C Inc.; data on the advertising and promotion market in "MarTech Market Status and Outlook: FY2019 Edition" by MIC
Research Institute; and the “2016 Economic Census for Business Activity - Tabulations across Industries.”*2. Total for Ad Platform Business and Marketing SaaS Business.
The size of the potential market for the Ad Platform Business is calculated as the sum of obtainable market shares in search advertising, social media advertising, display advertising, affiliate advertising, DOOH advertising, and other peripheral areas, based on the size of each market and considering the industry and characteristics of the target
customers for each service area provided. (Prepared by Geniee based on: “Detailed Analysis of 2020 Japanese Advertising Expenditures and Internet Advertising Media Expenditures” by Dentsu Inc., Dentsu Digital Inc., Cyber Communications Inc. and D2C Inc.; and Martech Market Status and Outlook: FY2019 Edition" by MIC Research Institute.)
The size of the potential market for the Marketing SaaS business is the total annual amount that would be paid by all potential customers of the Group in Japan if all potential customers installed each SaaS product. All potential customers is categorized into the largest, large, medium, small, and micro businesses, based on the size of the workforce.
The number of potential customers is calculated based on the ratio of the business size to usage by companies and on the number of customers.

© Geniee, Inc.

12

FY2021 3Q Results

FY2021 3Q Results Summary
Gross profit increased substantially, up 47.3% YoY. Profit at all levels increased from theprevious fiscal year.
（JPY million）
Inc/Dec

FY2021 3Q

FY2020 3Q（Actual)

Amounts

FY2021 3Q％（Budget ）10,156

10,384－－

9,423-

1,080－－－

10,156

11,4641,307+12.9%

－

1,810

2,666

855

+47.3%

2,727

Operating income (loss)

37400

363+971.3%

241

Ordinary income (loss)

2417

415

+18,404.3%

226(23)

307

331－

119

300

832

532

+177.3%695

Net sales(Reference) Estimated impact ofchange in accounting standard fornet sales(Reference) Excluding impact ofchange in accounting standard fornet sales

Cost of sales

Profit (loss) attributableto owners of parent
EBITDAThe Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ending March 31, 2022. As a©Business
Geniee,result, certain portions of the net sales of the Ad Platform Business and Overseas
have Inc.
been changed to net amounts. For this reason, comparisons of consolidated net sales with thesame period of the previous fiscal year are not provided.

14

FY2021 Quarterly Results
The Ad Platform Business is seasonal, with 3Q and 4Q being the busiest periods. Net sales
were up YoY despite the change in revenue recognition standards (a negative impact ofapproximately JPY 1 billion). Profit reached a record high in the third quarter of the fiscalyear.

© Geniee, Inc.

15

Highlights by segment
Ad Platform Business

Marketing SaaS Business

Overseas BusinessNet sales

Net sales

Net sales

8,208M794M1,445M

Segment income

Segment income

1,212M

36M

Segment income（Ref）Operating
income（Ref）Operatingloss（Ref）Operating
income

753M

305M

77M

◼ Targeted growth in productsales through initiatives suchas holding online seminars andparticipating in online
exhibitions.
◼ Started to offer a new product,
GENIEE DATA CONNECT◼ Supply side business grew,
due to promoting thestrengthening of reseller andpartnership businesses.

◼ Expanded demand-sidebusiness, particularly around ecommerce sites and online services,which have been growing due to thecoronavirus pandemic.
◼ Combining in-house development andcollaboration with other companies,
started ad delivery verification using auniversal ID that does not rely on
third-party cookies.

© Geniee, Inc.

113M

16

Ad Platform Business: Gross Profit
Further increased our share both of supply-side and demand-side markets.
Gross profit in the Ad Platform Business reached a new record high.

UP

29%
YoY

JPY712M
JPY 554M

1Q

2Q

3Q
FY2019

4Q

1Q

2Q

3Q

FY2020© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2021
17

Ad Platform Business: KPI
In the Ad Platform Business, we will continue working to improve profits and target furtherYoY
growth in average revenue per customer.

29%増

Average revenue per customer

Customers(JPY)
600,000(No. of companies)
4,000

3,500

previous
revenuestandard

500,000

3,000
400,000

2,500

2,000

300,000

1,500

200,000

1,000
100,000500
019/6 19/9 19/12 20/3 20/6 20/9 20/12 21/3 21/6 21/9 21/12
FY2019FY2020

FY20210
19/6 19/9 19/12 20/3 20/6 20/9 20/12 21/3 21/6 21/9 21/12
FY2019© Geniee, Inc.

FY2020

FY202118

Marketing SaaS Business: Net Sales
Net sales increased 36.1% YoY due to an increase in the number of accounts.
Operating income is expected to return to profitability in 4Q

UP

36.1%
YoY

JPY278M

JPY204M

1Q

2Q

3Q

FY2019

4Q

1Q

2Q

3Q

FY2020© Geniee, Inc.

4Q

1Q

2Q

3Q

FY202119

Marketing SaaS Business: KPI
We aim to expand our market share and increase the number of paid accounts byenhancing the functionality of each SaaS product and strengthening our sales
channels. We also aim to further reduce the churn rate by enhancing our products
and customer success.
Number of paid accounts

Churn rate(accounts)
10,0004.0%
3.5%

8,000

3.0%
2.5%

6,000

2.0%
4,000

1.5%
1.0%

2,000

0.5%
0.0%
19/6 19/9 19/12 20/3 20/6 20/9 20/12 21/3 21/6 21/9 21/12
FY2019FY2020

FY2021

1Q

2Q

3Q

FY2019© Geniee, Inc.

4Q

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

Note: 3-month average churn rate for accounts

20

Topics
Converted CATS into a wholly owned subsidiary through M&A.

Promotes a product concept of
replacing marketing activities
with software

×「CATS」
Provides tools for measuring
effectiveness of affiliate ads, ad
effectiveness measurement tools
for EC companies, andprogrammatic advertising media
report aggregation tools

Expand ad effectiveness measurement tools and analytical reporting
features with a focus on EC customers (D2C)© Geniee, Inc.

21

Topics
Launch of GENIEE DATA CONNECT, a fully automated data aggregation system
Varioussystems

Data collection

Data conversion/processing,aggregation, and storage

Accumulation

Analysis, operation,and utilization

DB
SaaS
Platformsystem

Ad

Automaticconnection

Analysis
Testing
Aggregation・Storage・Extraction

Accumulation

Application

Fully automated processing and integration of fragmented data
Sharing of integrated internal data assets to various systems© Geniee, Inc.

22FY2021 EarningsForecast

FY2021 Full-year Earnings Forecast
Our 3Q results were above forecasts. However, given the uncertain economic environment,
our FY2021 full-year earnings forecast is unchanged from the forecast announced on May
14, 2021.
FY2020 FY2021 forecast
Net sales

14.00

13.4-13.7

Ad Platform Business

11.90

10.1-10.3

Marketing SaaS Business

0.70

1.5-1.6

Overseas Business

1.50

1.2

0.19

0.64-0.84

Ad Platform Business

1.10

1.5-1.6

Marketing SaaS Business(0.05)

0.3-0.4

Overseas Business

0.09

0.09

(Adjusted amounts)(0.96)(1.25)(Ref.) Operating income

0.19

0.64-0.84

Ad Platform Business

0.60

0.87 - 0.97

Marketing SaaS Business(0.34)(0.1) - 0.0

Overseas Business

0.04

0.03

(Adjusted amounts)(0.10)(0.16)

Segment income

1. The Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ending
March 31, 2022. As a result, certain portions of the net sales of the Ad Platform Business and Overseas Business have been changed to net amounts. For this reason,comparisons of consolidated net sales with the same period of the previous fiscal year areprovided. Inc.
©notGeniee,

24Medium- to long-term policy

Medium-term policy◼ Geniee will pursue rapid growth in the marketing SaaS businesswhile also expanding its Ad Platform Business to become aleading company in marketing technology.
◼ With the goal of listing on the prime market, we will aim to meetthe necessary criteria for liquidity, governance, management
performance, and financial condition.
◼ For accounting standards, we will consider applying IFRS.
© Geniee, Inc.

26

FY2023 Numerical Targets
Numerical targets for FY2023 (IFRS basis)-JPY 30B

Gross profit

JPY 8B -JPY 9B

Operatingincome

JPY 2B -JPY 2.5B-

JPY 3.2B

Net sales

EBITDAJPY 25B

JPY 2.7B(Ref.) Japanese GAAPNet sales: JPY 25B – JPY 30B, Gross profit: JPY 8B – JPY 9B, Operating income: JPY 1.8B – JPY 2.3B, EBITDA: JPY 2.7B – JPY 3.2B
© Geniee, Inc.

27

Establishment of a shareholder special benefit plan
We have introduced a shareholder special benefit plan. Its aim is to further enhance theappeal of investing in the Company's shares and to increase the number of shareholders
who will hold the Company's shares over the medium to long term.

StocksPoint

300株～399株

4,000400株～499株

6,000

500株～999株

10,0001,000株～4,999株

20,0005,000株～99,999株

30,000100,000株以上

40,000© Geniee, Inc.

28

Update on share buyback program■ Resolution of Board of Directors concerning share buyback program(Announced on August 13, 2021)(1) Type of shares to be acquired: Common stock of the Company(2) Total number of shares to be acquired: Up to 350,000 shares(1.94% of total shares outstanding (excluding treasury stock))(3) Total amount to be paid for acquisition: Up to JPY 350 million(4) Period of acquisition: August 16, 2021 to August 15, 2022
(5) Method of acquisition: Market purchase (including off-hours trading)■ Cumulative number of shares acquired as of October 31, 2021,
pursuant to above resolution of Board of Directors(1) Total number of shares acquired: 47,900 shares(2) Total amount paid for acquisition: 46,654,600 yen
No stock purchases were carried out until February 10, 2022. This was due to a conservative
judgment that there were matters from September to October 2021 that could have constituted
undisclosed material facts under insider trading regulations.
However, since there are no undisclosed material facts at this time, the Company will repurchase its
own shares in accordance with the policy announced on August 13, 2021.
© Geniee, Inc.

29

Share price
Share price: JPY 786, as of February 9, 2022
While pursuing solid growth in the short, medium, and long term, we will enhance our IR
activities to support an increase in our share price.
1,200

Stock price (JPY)

1,000

Gross profit (JPY million)

2,000

800
600

1,000

400
02000
3Q

4Q

FY2017

1Q

2Q

3Q

FY2018

4Q

1Q

2Q

3Q

4Q

FY2019© Geniee, Inc.

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY202130

Reference Materials

Our Strengths: Five Competitive Advantages
1. Strong commitment to customer success5. Products with high value for customers—
and the technical development capabilities
to create themEach of our employees strives to get close tothe customer, out of a strong motivation to beof service to the customer

We are a leading technology company
in Japan with more than 140 engineers.
Testing new technologies everyday, wedevelop new value based on customer
and market needs

4. Geniee platform, partnershipwith SoftBank Group

2. Big Data
Backed by Japan's leading big dataprocessing technology, we haveaccumulated a vast amount of data in
the field of marketing

Five competitive
advantages
3. Knowledge of cutting-edge digitaltransformation and marketing

We have operations in Singapore, Vietnam,Indonesia and Thailand. We collaborate with theSoftBank Group to respond to customer
requests

We have produced some of Japan's leading successstories in cutting-edge technology and marketing,enabling us to accumulate extensive knowledge© Geniee, Inc.

32

Strong commitment to customer success
All products are developed in-house. We have a large team of customer success personnel
who partner with customers to enable their success. We tailor our support to thechallenges and applications of each company, from deployment to establishment andutilization.

Three reasons customers choose usJapan-mademarketing tools thatanyone can master

Easy management,aggregation andanalysis ofcustomers and sales© Geniee, Inc.

Robust support

33

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- Automatic control of bids (unit price) and delivery volume maximizes
Custom-built distribution system infrastructure with on-premise
conversions while fulfilling target CPAservers- AI-powered machine learning algorithm trains with vast amounts ofData center in Singapore also used to support overseas distribution
data to accurately predict conversion rates with a contextual© Geniee, Inc.
understanding of users and auctions

34

Knowledge of cutting-edge digital transformationand marketing
By using the vast data of our customer companies, we add value to our products andimprove the quality of our services. Promoting the cross-selling of products in turn leads toan increase in average revenue per customer.
Customer assets/data

Number of ad views per month

Active customers

60B impressions

3,000 companies
Blog / column

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

35

Geniee platform, partnership with SoftBank Group
Overseas expansion since our third year. We have also implemented numerous businessalliances and investment M&As. We will fully leverage these advantages throughcollaboration with the SoftBank Group.
JapanHeadquarters
80 billion
impressions
managed permonth

50

Asia

Collaboration with the SoftBank Group+4✓ Ad distribution service using jointly
developed advertising platform

InternationalOffices (JP HQ)✓ Cross-border ad distribution service toattract customers for inbound andcross-border EC

10,000+active publishers
globally✓ Formulation and assessment of plans
for joint projects in Southeast Asia

50,000+Campaigns
managed permonth globallyIndonesia
No.1 Mobile Carrier© Geniee, Inc.

36

Products that offer high value for customers—and thetechnical development capabilities to create themMarketing SaaS BusinessTechnology Strategy Office

Hirotaka Ohashi

Shoryo Mo

Executive Officer (CPO); General Manager,
Product Management Dept., R&D Division

Executive Officer; General Manager, Technology
Strategy Office, R&D Division

After graduating from Hokkaido University, went freelanceand then joined an online ad agency. Hired by Geniee in2016. Experience with supply side business planning andproduct management. After supervising the ProductManagement Department, including Geniee DSP'sgeneral ad technology, appointed Executive Officer ofProduct Management in April 2019. Appointed CPO inApril 2021.

backend development for social network games, curation
media development, affiliate ad development, and DSPdevelopment, hired by Geniee in 2018. Started up theScience Team to strengthen data-driven, AI-poweredprediction and automated control functions. Currently
directing product feature enhancement and optimized
development efficiency in the marketing technology
domain.

Ad Platform Business (Supply Side Business)

Ad Platform Business (Demand Side Business)

Shunsuke Kawasaki

Sayaka Kobayashi

Executive Officer; Supply Side Business
Division CEOManager, Product Management Dept.; Acting
General Manager, Business Development Dept.,
Demand Side Business Division

Hired by Mitsui & Co., Ltd. after graduating from
Hitotsubashi University. Hired by Geniee in 2015.
Started his career here in new product development as aproduct planner for our core product, Geniee SSP.
Experience as a general product manager for Geniee SSP
and in the Overseas Business. Appointed the company's© Geniee, Inc.
youngest ever executive officer in April 2019.

Hired upon graduating from college in 2016. Worked insales for ad platforms Geniee SSP and Geniee DSP.
Appointed the company's first female product manager inApril 2019. Appointed Acting General Manager of the
Demand Side Business Division in April 2021 to carry thebusiness forward.

37

Company Profile
Company name

Geniee, Inc.

Employees

307(Consolidated, as of March 31, 2021)

Business

Marketing technology business

Establishment

April 14, 2010

Headquarters

Sumitomo Realty & Development Shinjuku OakCapital

JPY 1,549 million

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

Tomoaki Kudo, President and CEO

End of fiscal year

March 31

Executive officers

Directors: Michimasa Naka (Outside)Group companies

Business Search Technologies Corporation

Koichi Machida (Outside)
Director and Audit & Supervisory Committee Members:
Katsuyuki Toritani (Full-time, Outside)
Yukio Todoroki (Outside)

Yoshitaka Sasaki (Outside)

REACT, Inc.
Geniee International Pte., Ltd.
Geniee Vietnam Co., Ltd.
PT. Geniee Technology Indonesia

Geniee Adtechnology (Thailand) Co., Ltd.
© Geniee, Inc.

PT. Adstars Media Pariwara38

Shareholder Composition (as of September 30, 2021)
Breakdown of shares by type of shareholder

Major shareholders
NameShares
Owned

corporations, etc.

Tomoaki Kudo (President & CEO)6,541,400

36.24

SoftBank Corp.

5,625,000

31.16

762,100

4.22

NOMURA PB NOMINEES LIMITEDOMNIBUS-MARGIN
Hiroshi Hirose

Foreign

(%)

10.3%

Genieedirectors
Other

670,000

35.6%

corporations

3.71

32.4%

Takuya Yoshimura

594,900

3.29

NICE SATISFY LIMITED

402,000

2.22

Custody Bank of Japan, Ltd.

241,800

1.33

Okasan Online Securities Co.,Ltd.

175,800

0.97

BNY GCM CLIENT ACCOUNT JPRD
AC ISG

175,500

0.97

J.P.Morgan Securities plc

170,300

0.94

Financial instruments
brokers
3.2%© Geniee, Inc.

Individuals and others
Financialinstitutions

2.2%

16.3%

39

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.