FY2023.Q2 Financial Results Briefing Materials
November 9th, 2023

Message

Revenue was 3.76 billion yen, up to 23.7% year on year.
We achieved top-class growth rate compared to other companies in the same industry.
In the advertising business segment, while improving existing performance, we also
develop and enhance new video area.
In the marketing SaaS business segment, the SFA/CRM business made progress incultivating the enterprise segment, generating additional deals and cross-sales.
In the Overseas business segment, Zelto's PMI system was conducted mainly by
Geniee. As a result, the amount of earn-out payments has been partially reduced.
Announced the revision of earnings forecast. In the revised earnings forecast, Genieeaims to be No. 1 in the advertising industry.

1Revision of Earnings Forecast
Although we are showing thecompetitive growth in the market, but

YoY

FY2023（Plan）
InitialFY2023（Plan）
RevisedDifference

96

84

▲12

billion yen

billion yen

billion yen

78

66

▲12

billion yen

billion yen

billion yen

20

18

▲2

billion yen

billion yen

billion yen

15

13

▲2

billion yen

billion yen

billion yen（Result of thePrevious FiscalYear）

there is the slowdown in the growthrate of the advertising market in
Japan and overseas.

Revenue

We have revised the year earning+30.1%

forecast downward due to thedeviation from the initial plan interms of revenue and gross profit.

Gross profit

The management team will continue+28.4%

to consider additional measures fromtoday onwards in order to achieve theNo. 1 growth rate in the advertisingmarket and increase sales and profits,

Operating
Profitーexcluding one-time profits, andachieve the initial plan - operating
income of 2 billion yen.

Net Income
attributable
to the parent
companyー*Due to the gain on the acquisition of Zelto in FY2022, the following figures about operating income and net income are omitted.

2© Geniee, Inc.

Comparison with competitors in the same industry
Geniee has achieved top-class

Revenue growth rate

growth rate while other companies in(YoY change in the previous
quarter)the same industry that operate the Ad
Technology and SaaS business have

(YoY change in the previous
quarter)seen slight increasing or decreasing.

Geniee

25.0%

19.7%

The revenue growth rates of Q3 andCompany A (Ad Tech)

35.4%

36.3%

to be 33.5% and 41.3%, respectively.

Company B (SaaS)

22.7%

18.0%

We are operating business with aCompany C (SaaS)

13.2%

19.3%

Company D (Advertising Agent)

5.7%

7.6%

Company E (Advertising Agent)

5.1%

-6.9%

Company F (Advertising Agent)

-0.2%

-4.9%

Company G (Ad Tech)-9.3%-11.5%

Company H (Ad Tech)

0.0%

18.0%

Q4 in the revised plan are expectedcompetitive edge in the market.

3

Gross profit growthrate© Geniee, Inc.

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policyPurpose

Business Purpose
The worldview realized by Geniee products and services

Creating a world where everyone can succeed in marketing

Corporate Purpose
Long-term goals and purpose of Geniee

Becoming a global technology originating from Japanand contributing to Japan and Asia

5

⚫

GENIEE Group provides comprehensive support for solving increasingly complex andsophisticated marketing challenges.

⚫

Aiming for creating a world where marketing hurdles are lowered, and companies canspread high value-added products and services to society more smoothly.

• GENIEE Group aims to be...

Task
Advertising
effectiveness
optimization

Ad revenue
optimization
Effectivenessmeasurement

Ads

A world where everyone
can succeed in marketing

Data
Data
analysis
accumulate
Organizational and System Issues
Data visualization

Combination ofmultiple systems

Recruitment
and training

Cost control

Data centralizationData
cooperation
Customer success

6

Content andmarketingNurturing

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

High cost-performance•

Automation and streamliningof operations

Business Portfolio andConsolidated Gross Profit Trend

Gross profit

5.1(billion yen)

In FY2016, the main business“GENIEE SSP” became one of theMarketing SaaS Business
2022/7*biggest business in Japan.
In 2016, Geniee began offering SaaS
2022/2

products and expanding its businesswith mergers and acquisitions.

2022/1

Overseas operations have been

2021/11

expanding since 2012, and theacquisition of ZELTO in 2023 is
expected to significantly increase the2021/7*Advertising Platform
Business

2020/112018/11*

ratio of overseas sales to total sales.
2018/6

Overseas Business2023/3

2016/7
2019/2

2015/1
2014/3
2011/4
Areas served

FY2011

Singapore Vietnam
2012/82013/9Indonesia

2023/2

2015/9FY2015FY2017FY2018FY2019FY2020

FY2021 FY2022※Those in red were acquired through M&A. Currently, GENIEE CHAT has integrated the brands of the old Chamo, the old Engagebot, and the old HyperSonic.

7© Geniee, Inc.

Business Areas
We provide companies with highly
convenient, cost-effective marketing
solutions and deliver accurate to

Ad

Data
accumulation

Customer management

Data linkage

Data analysis

users.

Ad Platform Business

Awareness

8© Geniee, Inc.

Visits site

Marketing SaaS BusinessCompares,considers

Reserves/
VisitsPurchase

Repeatpurchase

Prevent
cancellation

Conversion
to high-quality
customerMarket Size
Online Advertising Market Trend
The marketing technology industry(Online Advertising Market and SaaS

Newspapers

Magazines

Radio

TV

SaaS Market Trend

Internet

market) in which Geniee operates is（trillion yen）

growing rapidly due to theimprovement of the Internet and the（trillion
35 yen）

1.2

3.0
30

1

expansion of the 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"

9© Geniee, Inc.

2019
19年

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

Market Size
The target market that our services

TAM:

can provide is approximately 3 trillion

5.2 trillion yen

yen, and the potential market is(Total for Ad Platform Business, Marketing SaaS Business and Overseas Business)

estimated to be approximately 5

The size of the market where Geniee operate business ※1

trillion yen.
※1 Total of advertising platform business, marketing SaaS businessand overseas business (SSP). It means the maximum market size
assumed by Geniee and is not calculated for the purpose of
showing an objective market size for the businesses operated by
Geniee in FY2023. (Refer to the search advertising market, SNSadvertising market, display advertising market, affiliate advertisingmarket, DOOH ad serving platform market, and other peripheral
markets in the "2020 Japanese Advertising Expenditures: Detailed
Analysis of Internet Advertising Media Expenditures" survey
conducted by Dentsu Inc. (See the search advertising market,
SNS advertising market, display advertising market, affiliate
advertising market, DOOH ad serving platform market, and otherperipheral areas in "Detailed Analysis of Internet Advertising Media
Expenditures in Japan 2020" by D2C Research Institute, 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 Geniee
based on "2020 Japanese Advertising Expenditures: Detailed
Analysis of Internet Advertising Media Expenditures" by Dentsu
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 Geniee based on the 2016
Economic Census - Activity Survey: Summary of Enterprises, etc.,
Cross-sectional Industry Data.

10© Geniee, Inc.

SAM:

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

SFA, CRM, MA, Chat, Site

SearchSSP, DSP, DMP, DOOH

Obtainable markets in near
futureMarkets that can be obtainedby strengthening andextending current products
and services

Potential markets

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policy

FY2023
Financial Summary(millions of yen)

Revenue increased 23.7%

FY20222Q(a)compared to same quarter last

FY20232Q(b)Inc/Dec(b-a)
Amounts％

FY2023（Plan）
InitialFY2023(Plan)
Revisedyear.
As a result of the reduction in the

Revenue

3,038

3,758

720

+23.7%

9,600

8,400

Gross profit

2,425

2,873

448

+18.5%

7,800

6,600

Operating Profit

440

880

440

+99.9%

2,000

1,800

Income before
Tax

467

690

223

+47.7%

1,900

1,500

Net income

322

635

313

+97.4%

1,500

1,300

Net Income
attributable toowners ofparent

327

632

305

+92.9%

1,500

1,300

amount of earn-out payments
due to the review of Zelto's
management structure, otherincome increased andcontributed to operating income.

12© Geniee, Inc.

Overseas Business
Zelto PMI Progress
Recorded highest sales revenue in thefirst half year

The newly established CEOteam is taking the lead inpromoting PMI under the

Revenue Trends

leadership of Geniee.

In the second half year, we areintegrating the existing overseas
business and Zelto
organizationally andimplementing a new strategy(sales, marketing, and productstrategies) under the neworganization.

13

Organization& Strategy

Understanding
Business Issues

Solving Business
Problems by Geniee
Resources

New strategy execution by Geniee

Management

Execution of
Short-term PMI

Understanding theGovernance System

Governance System Establishment andoperations improvement*Revenue from October 23 onwards is an image.

© Geniee, Inc.

About Earn-Out
Due to the continued increase in the(millions of USD)

percentage of commitment of the

BeforeAfter

Difference

Maximum payable compensation(to be paid in June 2026)

10.0

5.0

▲5.0

Weighted Average Cash Outflow

9.0

4.5

▲4.5

Balance of payable related to earn-out
as of the end of March 2023

7.6

-

-

Discounted present value of payables
as of the end of September 2023

7.8

3.9

▲3.9

CEO team in Zelto's PMI process,Ankit's involvement in Zelto's
performance has decreased relatively,

and the contract has been revised toreduce compensation payable
without changing the performanceachievement criteria.
As a result, the balance of payables
payable in the future was reduced to
580 million, resulting in the recordingof 550 million in other revenue.
In addition, a financial expense of 130
million yen related to earn-out wasrecorded due to the revision of thepresent value of the payable as of theend of September 2023 and the endof-period conversion.

Recorded as payable
580 million(=CR*149.58 yen×USD3.9M)

Recorded as other revenue

550 million(=AR*141.06 yen×USD3.9M)*CR is an abbreviation for the closing date rate, and AR is an abbreviation for the average rate during the period. CR is applied to the year-end evaluationof BS items (financial liabilities), and AR is applied to PL items.

14© Geniee, Inc.

FY2023
Quarterly Results

Revenue

Gross profit

Operating Profit

19.6（100 million yen）

reached record highs.

億Both revenue and gross profit

20

Revenue increased 25% year-onyear.

16.8

15.7

15

17.9

17.3

14.7
13.4
11.7

15

16.5
13.8

13.7

12.5

7.7

10

5

3.6
2.5

1.9

1.1

0
1Q

2Q

3Q
FY2022

FY202215© Geniee, Inc.

4Q

1Q

2Q
FY2023

FY2023

By Segment
Highlights（100 million yen）

Ref.

Ad Platforms
business

Marketing
SaaS Business

Overseas Business

Revenue

Revenue

Revenue

19.8

12.8

6.1

Segment Profit

Segment Profit

Segment Profit

9.7

1.1

1.2

Operating Profit 5.3• On the supply side, we
succeeded in developing an
untapped video field.
• Demand side further
enhances the performancedomain.
• PMI completed for KANADE
after business succession.
16© Geniee, Inc.

Ref.

Operating Loss 2.8• Even after receiving a large
order for SFA/CRM, additional
development and cross-sellingto other services such as
CHAT increased.
• Maintain a low churn rate andcontribute to increasing MRR.

Ref.

Operating Profit 0.7• Zelto's PMI systemestablishes a new CEO teamand solves management
issues under the leadershipof Geniee.

By Segment
Performance Ratio
Although the advertising platformbusiness is the main business, theproportion of marketing SaaS
business and overseas business
which has a high market size andmarket growth rate is also gradually
increasing.

In addition, the SFA/CRM of themarketing SaaS business orders forlarge-scale enterprises haveincreased, and segment profit (grossprofit minus SG&A expenses) has
been in the black since the fourth
quarter of FY2022.

17© Geniee, Inc.

Revenue

Segment Profit

TopicAbout JAPAN AI
JAPAN AI, a subsidiary engaged in
AI-related businesses, signed aJAPAN AI Services

In-house AI assistantservice「JAPAN AI Chat(™)」Providing AI tocompanies
consulting

GPT/Large Language
ModelsLeveraged productdevelopment

Powered by AI
New products andfeatures(Continued release)

capital and business allianceagreement with REGAL CORE Co.,
Ltd. in October.

Capital and business alliance with REGAL CORE
Background
In October of this year, the Consumer Affairs Agency's Act on Unjustifiable Premiums and Misleading
Representations was partially revised, and regulations on stealth marketing began→ the need for continuous legal checks in the operation of advertising creatives is increasing.

Company ProfileName

REGAL CORE Inc.

representativeRepresentative Director
Hayato Tanouehead office
1-7-4 Shibuya, Shibuyaku, Tokyo Aoyama
Kobayashi Building 2F
Establishment April 2021
Paid-in
16,010,000 yen
CapitalDescription of Legal Check BusinessBusiness

18© Geniee, Inc.

JAPAN AI partially automates the legal check service of REGAL CORE foradvertising creatives based on the Pharmaceutical and Medical Devices Act and the
Act on Premiums and Representations, etc. and supports the provision of services
more quickly.

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policy

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

20© Geniee, Inc.

80B impressions per month ・0.1B UU

YoY

Ad Platform Business
Gross profit transition（100 million yen）

8.1%up10

8.4

Gross profit is up 8.1% year-on-year.

7.8

On the supply side, we havepioneered the untapped video field,8

and on the demand side, in addition

6.2

to the strong performance in the

VOD field, the DOOH domain has
also recovered due to the6convergence of the coronavirus.
From the quarter third onward, we
will aim to increase sales in our new
business, GENIEE RMP, and further

4

increase in Geniee Dynamic(KANADE DSP), which we took overthe business.

2

0
1Q

2Q

3Q
FY202121© Geniee, Inc.

4Q

1Q

2Q

3Q
FY20224Q

1Q

2Q
FY2023

Topic「GENIEE RMP」

Background to Market Expansion

The retail media market is expanding
mainly in the United States as a newmarketing measure in the cookielessera and against the backdrop of theshift in purchasing behavior to online

due to Corona (2023 is said to be thefirst year of retail in Japan).

Targeting media such as e-commercesites and store signage operated by
distribution/retail companies, GENIEE
RMP aims to be the No. 1 retail media
service in Japan.

22© Geniee, Inc.

GENIEE RMP Business Overview

Advertising Platforms
Business KPIs

（No. of companies）

Number of Companies(*1)

We will continue to improve the

3,000

2,000

added value of our products and aim
to increase the number of companies

1,000

and companies.
In addition, we took over KANADE0

DSP in July this year, and as a result

20/6 20/9 20/12 21/3 21/6 21/9 21/12 22/3 22/6 22/9 22/12 23/3 23/6 23/9

of maintaining and increasing the

FY2020

number of companies, the number ofcompanies increased by 42.

Average revenue
per company(*1)

FY2021

FY2022

FY2023（Ten thousand yen）

16
12

8
4
0
20/6 20/9 20/12 21/3 21/6 21/9 21/12 22/3 22/6 22/9 22/12 23/3 23/6 23/9

FY2020

FY2021

FY2022

FY2023*1 Calculated based on net figures. In addition, from this fiscal year, the advertising management agency and DOOH figures are calculated by adding
information including information compared to previous years.

23© Geniee, Inc.

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policy© Geniee, Inc.

Marketing SaaS Business

Management of sales andcustomer information

Cultivation of highquality customers

The only Japan-made sales
and marketing platform thatcan execute and manage
everything from attracting

Centralizing internal data

Customer management,
cultivation of high-quality
customers

Supporting purchases
High-speed display of LPs

customers to receiving

promotional orders.

Analyzing internal data

Increasingpurchase intent

Measuring advertising effectiveness andproviding reports

25© Geniee, Inc.

Marketing SaaS
Business Highlights
Revenue and ARR grew significantly

Revenue/ YoY growth

Recurring ratio（＊１）/YoY growthcompared to the same period last

1,276Million Yen／+47.3% 82.9 % ／ +7.7ポイント

year.

Gross profit rate

ARR/ YoY growth74.5%

2,128Million Yen ／ +37.4%

Segment Profit

ARPA/YoY growth

109Million Yen

15,818yen ／ +3.6%*1 Calculated based on 12 months backward from the end of the fiscal year.

26© Geniee, Inc.

Marketing SaaS
Business Revenue
Revenue increased 40% year-on-

YoY
40%up

（100 million yen）

8

6.7

7

year. On a quarterly basis, it alsoreached a new record high.
SFA/CRM has led to the6

4.8

development of the enterprise layer,

and even after receiving orders, it

5

has led to additional development
requests and cross-selling to otherservices. While the customer base is4

2.8

shifting to the enterprise, thenumber of companies and the3number of companies are on the rise.
We expect to release updated2functions sequentially from the third
quarter onward, and when wecomplete the individual development

1for enterprises, which we have been
conducting for some time, MRR is
expected to increase at once.

0

1Q

2Q

3Q
FY202127© Geniee, Inc.

4Q

1Q

2Q

3Q
FY20224Q

1Q

2Q
FY2023

Marketing SaaS
Business KPIs

YoY
29.9%up

Number of Paid Accounts(pcs)

The number of accounts is
progressing well.
Maintaining a low churn rate due toa high level of customer service also
contributed to MRR.

18,00015,00012,000
9,000
6,000
3,000
20/6

20/9 20/12 21/3

21/6

FY202021/9 21/12 22/3

22/6

FY2021

22/9 22/12 23/3
FY2022

23/6

23/9

FY2023

Churn rate

1.8%

1.2%
0.6%
0.0%
1Q

2Q

3Q

FY2020*Average 3-month churn rate for accounts

28© Geniee, Inc.

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

Marketing SaaS
SG&A expenses in businessas a percentage of sales

R&D(*1)(*2)

S&M(*1)(*3)

G&A(*1)(*4)

R&D is on a downward trend due toan increase in MRR and an increasein the ratio of software recording
due to general-purpose development
for enterprises.
Due to the increase in the number ofmembers on the business side, theS&M ratio in FY2022 is on an upward18%
16%17%
15%
14%
13%12%
11%11%
11%

43%43%42%42%
42%
41%
39%
39%
38%
37%

15%15%15%
14%
13%
12%
11%
10%10%10%

trend.
G&A is also on the rise due to theincrease in corporate staff.

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

FY2022

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

FY2021

FY2022

FY20231Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2021

FY2022

FY2023*1 Calculated 12 months backward from the end of the quarter.
(*2) Abbreviation for Research and Development. Total personnel costs and related expenses for engineers involved in research and development.
(*3) Abbreviation for Sales and Marketing. Total of advertising expenses, personnel expenses for sales personnel, related expenses, etc. related to sales promotion.
(*4) General and Administrative 䛾abbreviation. The sum of personnel costs, related expenses, and common expenses of the corporate department to be borne by themarketing SaaS business.

29© Geniee, Inc.

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policyOverseas Business
Overseas locations
Started overseas expansion in 2012.
Overseas development of a platformthat maximizes advertising revenue
and effectiveness for Internet media
and advertisers, mainly in the fast-

growing Asian region.

In February 2023, Zelto, Inc. will bemade a wholly owned subsidiary, andGeniee will not only develop GENIEE
SSP overseas, but also collaborate
and expand functionality of Zelto
product services.

Business•••

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.

31© Geniee, Inc.

Overseas business
Gross profit goes on
Gross profit increased by 34.4%
year-on-year. On a quarterly basis, it

YoY

34.4%up

1.9（100 million yen）

2

has also reached a record high.
Zelto's PMI structure has been

1.8changed and management issues

1.6

1.3

centered on the newly establishedCEO team. We have canceled and

1.4

eased the minimum guarantee on

1.2

existing contracts.
From the third quarter onward, we
will unite the products and

1

0.8

0.6

organizations of Geniee and Zelto
and aim to capture overseas markets.

0.6
0.4
0.2
0
1Q

2Q

3Q
FY202132© Geniee, Inc.

4Q

1Q

2Q

3Q
FY20224Q

1Q

2Q
FY2023

1. Business Overview
2. FY2023.Q2 Results
3. Advertising Platform
Business
4. Marketing SaaS Business
5. Overseas Business6. Medium-term and Longterm policy

Planning Assumptions
In FY2023, Geniee will strengthen its
profit structure through cost

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 return to
the level of FY2022, and in FY2025, therecession will end as a result of lower
interest rates in the U.S., and theeconomy 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 havea significant impact on our group's
management structure.

reductions against the backdrop of
declining advertising revenues due tothe recession in the U.S.
For FY2024 and beyond, which willbe the recovery period, Geniee will
resume investment in growth and,after the change of prime market, will
aggressively pursue M&A withsynergies with existing businesses.

34© Geniee, Inc.

New Medium-Term Management Plan
Overall Policy

Business Strategy
Marketing
SaaS Business

Ad Platform BusinessAlthough a short-term recession isStrengthening ofmanagementfoundation

expected, Geniee will provide
SSP
area

innovative business for the next
boom period by promoting

DSP
area

Further Growth

operational efficiency and productSustainability

New Product,
Expand market sharein existing areas

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

improvement by expanding its market
share in the enterprise domain andDomestic

establishing an AI subsidiary, along• Expand market sharein unexplored areas
and enterprise areas• Expand market sharein performance areawith re-growing its ad technology• Reinforcement oflarge distributors

business.
Newbusiness

Establishment of a subsidiary for AI businessand collaboration in the marketing domain• Chat GPT to support business efficiency• 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

35• Increase ratio of
female employees• Goal management by
OKR• Strengthen
management systemfor prime market
changesMedium-Term Management Plan
Numerical Targets
FY2023（plan）
InitialIn FY2023, we revised our full-year
earnings forecast, but we assume theoriginal plan for FY2025 on the

FY2023（plan）
RevisedFY2025（plan）

premise that the recession will
recover.

Revenue

Gross profit

Operating Profit

Attributable tothe parent
company

96

84

162 ~ 202

billion yen

billion yen

billion yen

7866

132 ~ 164billion yen

billion yen

billion yen

20

18

45 ~ 55

billion yen

billion yen

billion yen

15

13

30 ~ 37

billion yen

billion yen

billion yen

The exchange rate is assumed to be 1$ = 131.18 yen for FY2023 and 1$ = 124.50 yen for FY2025.

36© Geniee, Inc.

FY2023
Full-year earnings forecast(millions of yen)
FY2022（achievements）

FY2023（plan）
InitialFY2023（plan）
Revised

6,455

9,661

8,400

Ad Platform Business

3,918

4,819

4,300

Marketing SaaS Business

1,976

3,173

2,900

Overseas Business

783

1,686

1,400

(Adjustment amount)

△223

△20

△200

Gross profit

5,142

7,804

6,600

Segment Profit

2,457

2,006

1,800

2,163

2,683

2,200

85

608

400

Overseas Business

338

700

300

(Whole company,
elimination, etc.)△131△1,985△1,100

2,457

2,006

1,800

Ad Platform Business

1,417

1,697

1,300

Marketing SaaS Business

△545

△260

△400

Overseas Business

273

588

200

(Adjustment amount)

1,312

△18

700

Income before

2,279

1,912

1,500

Net income attributable toowners of the parent company

2,114

1,506

1,300

Revenue

Ad Platform Business
Marketing SaaS Business

Operating Profit* FY2023 (Forecast) Net income ¥73.50 per share

37© Geniee, Inc.

FY2023
Quarterly Earnings Forecast
Revenue

Revenue is increasing quarterly.

revenue is seasonal, and we plan toOperating Profit（100 million yen）

億

In the advertising platform business,

Gross profit

30

expand revenue in the third andfourth quarters, which are the busy

25

seasons.

20

16.8

15.7

14.7
15

11.7

12.5

17.4
13.8

19.6
17.9
16.5

15.0
13.7

13.4

7.7

10

5

1.9

2.5

normalbusinessbenefit

3.6

3.2

1.1

0
1Q

2Q

3Q
FY202238© Geniee, Inc.

4Q

1Q

2Q

3Q
FY2023

4Q

Trends in stock prices

Stock

Gross profit(millions of yen)
Stock price: 1,025 yen as of

（yen）

1,800

November 8
We will ensure the growth of Geniee

2000

1,600

in the short, medium and long term,
strengthen IR, and lead to a rise in

1,400

the stock price.

1,200
1,000
1000

800
600
400
200
0

0
1Q

2Q

3Q

FY202139© Geniee, Inc.

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

APPENDIX

Geniee's
Competitive Advantage

Competitive products, synergies among businesses, and global
expansion

With our organization, culture, andmanagement foundation, we havebuilt a system that enables us to

SSP

DSP

Businessdevelop additional functions at each

SEARCH and
Recommendation

CHAT andEffectivenessMeasurementbusiness layer through competitive

analysis of products, cross-sell

SFA/CRM/MA

products to homogeneous customer
segments, and expand globally
through group cooperation.

Managementfoundation

Organization& Culture

41© 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 unique positioningthat sets us apart from major foreigncompanies, major online advertising
companies, and single productcompanies.

Focus oncost-effectivenessfor customers
Provide customers withmaximum businessresults at low cost

42

© 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 in-house.
We have a large team of customer
success personnel who partner withcustomers to enable their success.
We tailor our support to the1

2Japan-made marketing toolsthat anyone can master

Easy management,
Aggregation andanalysis of customers
and sales

3

challenges and applications of eachcompany, from deployment toestablishment and utilization.

43© 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
44© 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 ofdata to accurately predict conversion rates with a contextual
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 and improve thequality of our services. Promoting the

Number of ad views per month

Active customers

80B Impression

3,000companies

cross-selling of products in turnleads to an increase in averagerevenue per customer.

Blog / column

Useful tips on digital marketing45© Geniee, Inc.

Investing in Continuous Growth
Cash OutCash InIn FY2023, we expect an operating
profit of 1.8 billion yen, and we
expect operating cash flow to be ourprimary priority for the acquisition ofPriority

Operating Cash Flow
Securing operating cash flow
thorough business management

Zelto.

through1

Business Investments
Investments in organic growth in existing
business recruitment, research, marketing,and product function development.

While controlling funding costs, we
mainly secure operating cash flow
and secure a stable cash position.
On the other hand, in terms ofinvestment, we will promote business

Interest-bearing debt
In accordance with Geniee's financial
management discipline, working andinvestment capital is procured.

2

M&A
Acquisitions of businesses with highsynergies, such as sharing technology,know-how, and customer baseinvestment and M&A whileemphasizing organic growth.

Equity Financing
Examinationfromacomprehensive
perspective such as stock price level,
market environment, financial position, andprobability of transition to the prime market

46© Geniee, Inc.

3

Share buyback
Implemented flexibly in consideration of
future investment capacity, stock pricelevels, market environment, financial
outlook, etc.

Risks and Response Policy
In order to realize the Medium-Term
Management Plan, we identified andassessed risks through global risk

Key Risks

relationsegment

Example Risk Scenarios

Main Response Policies

Internet AdvertisingMarket Trends andCompetitive
Environment

Ad Platform
Business,
Overseas
Business

Potential decline in revenue due to economic
downturns, reduced advertising budgets, and lackof competitiveness• Approaching industries and industries thatare less susceptible to influence• Benchmark competitors and makecontinuous technology investments

Cookie Regulation

Ad Platform
Business,
Overseas
Business

Potential loss of revenue due to targeting
restrictions• Development of new technologies• Technical Collaboration with Other
Companies

Information Security andManagement of Personal
Information

Marketing SaaS
Business

Outflow of information assets such as customer
information of companies that have introduced
SaaS products• Acquisition of Privacy Mark certification,
continuous maintenance and improvementof standards regarding the management of
personal information

All Businesses

Possibility of declining competitiveness,
additional system development, and increasedlabor costs due to the development of newtechnologies and new services by competitors• Development of new technologies• Analysis of Overseas Advanced Case
Studies• Technical Collaboration with Other
Companies

management activities andformulated a response policy. We will

respond promptly and appropriately
to the materialization of risks.

innovation

Risks of Overseas
Business

Overseas
Business

Entry into new service
areas

All Businesses

Acquisitions andinvestments

47© Geniee, Inc.

All Businesses

Due to business practices and government
regulations specific to each country, the Groupmay not be able to recover its investment, which
may affect the Group's financial position andoperating results.
Due to the timing of the upfront investment
associated with entering a new market and the
speed of market expansion and the scale of growth,
we may not be able to achieve the results weoriginally envisioned, and we may incur losses due
to service suspension or withdrawal.
Occurrence of contingent or unrecognizedliabilities, fraudulent activities or complianceissues due to inadequacies in internal controls
after the acquisition, and the possibility ofsignificant losses• Confirmation of regulatory changes by alocal legal advisory firm
• Information Coordination between
Overseas Subsidiaries and Headquarters• Interviews with multiple experts• Overseas Advanced Case Study Survey• Deferred upfront investment until potential
customers are monetized• Implementation of due diligence by various
internal and external experts• Thorough utilization of M&A know-how andpoints to keep in mind accumulated in thepastSustainability
Examples of Initiatives and Results
Among ESG, we place particularemphasis on society and governance,and have adopted a wide range of•In order to make effective use of resources, reduce environmental impact,
and improve operational efficiency, we request the conclusion of
quotations and basic contracts with electronic signatures in principle.

•

Introduced a cloud-based HR, attendance, accounting, and expense
reimbursement system to achieve thorough paperless operation•

There is a comfortable working environment such as refreshment leave, rent
subsidy, book subsidy, and a working mom and dad support system, as well as
support for career advancement such as an internship system, a job changesystem, and a global challenge system.

•

In order to promote the active participation of female employees, we are
actively hiring female employees and promoting them to managerial positions,and we will continue to promote the development of an environment where itis easy to work together regardless of gender.

•

Assign appropriate human resources globally, such as assigning excellent
overseas human resources to the head office and appointing head officepersonnel at overseas bases•

Hold regular meetings of the Compliance Committee and ensure that employees
are fully aware of the sexual harassment and power harassment policies•

The ratio of outside directors is high, and checks and balances from outside
directors function appropriately.

•

As a company with an Audit and Supervisory Committee, we supervise andsupport internal audits and external audits to ensure the reliability andtransparency of information related to financial reports.

Environment

systems to provide fair opportunities
to employees, promote career

motivation, and promote internal
communication. In addition, we place
importance on governance as a listedcompany, and have established a

Socialsystem to ensure that employees
thoroughly implement a code of
conduct to ensure that their duties
are conducted lawfully andappropriately, and to enhance thereliability and transparency offinancial reporting.

Governance48© Geniee, Inc.

SDGs Goals

Geniee platform, partnership with SoftBank Group
Overseas expansion since our third

Asia

Collaboration with the SoftBank Group

year. We have also implemented
numerous business alliances and80 billion+410,000+50,000+investment M&As. We will fully

Impressions
Managed per monthInternational
Offices (JP HQ)

ActivePublishers globally

Campaigns
managed per monthglobally

leverage these advantages throughcollaboration with the SoftBank• Ad distribution service using jointly
developed advertising platform• Cross-border ad distribution service toattract customers for inbound and cross-Group.

border EC• Formulation and assessment of plans forjoint projects in Southeast Asia

Indonesia
No.1 Mobile Carrier

49© Geniee, Inc.

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 1,551 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: Koichi Machida (Outside)Group companies

Business Search Technologies Corporation
CATS Inc.
JAPAN AI Inc.
Zelto, Inc.
Geniee International Pte., Ltd.
Geniee Vietnam Co., Ltd.
PT. Geniee Technology Indonesia
PT. Adstars Media Pariwara

Director and Audit & Supervisory Committee Members:
Katsuyuki Toritani (Full-time, Outside)
Yukio Todoroki (Outside)
Yoshitaka Sasaki (Outside)50© Geniee, Inc.

Status of Shareholders (as of the end of September 2023)
Status of Major Shareholders

Shareholders

Number ofshares held

Name of Shareholder（share）

Shareholding
ratio
（％）

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

36.44

SoftBank Corp.

5,625,000

31.32

Foreign corporations, etc.
4.9%
Officers of
Other legal entities

Geniee32.9%
NICE SATISFY LIMITED

402,000

2.24

Custody Bank of Japan, Ltd.（Trust
Account）

401,100

2.23

Takuya Yoshimura

358,300

1.99

Daisuke Gomi

250,000

1.39

Hiroshi Hirose

226,500

1.26

BNY GCM CLIENT ACCOUNT JPRD AC
ISG（FE-AC）

193,700

1.08

Ueda Yagi Tanshi Corporation

140,000

0.78

SBI Neotrade Securities Co., Ltd.

137,900

0.77

36.5%

Financial Instruments Business
Operators
2.8%

51© Geniee, Inc.

financial institution
2.8%

Individuals & Others
20.2%

The consolidated management targets and other figures stated in this document are based on
currently available information and contain many uncertain elements.
Actual results may differ due to changes in business conditions.