Contents
1.

Full-Year FY2023 Performance...P.4

2. Q4 FY2023 Performance...P.16

3. FY2023 Shareholder Returns...P.27

4. FY2024 Forecast...P.29

5. Business Overview...P.32

6. Supplementary Materials...P.52

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2

Note on Terms• The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) is in effect from the beginningof FY2021. Accordingly, ‘‘Net Sales’’ under the old standard are expressed as ‘‘Gross Sales.”• Please note that the gross sales is not official figures that have been audited by the accounting auditor.

• Due to a change in the accounting period starting from FY2021, FY2021 is 9 months for domestic companies
and 12 months for overseas subsidiaries, and FY2021 Q3 is 3 months for domestic companies and 6 months
for overseas subsidiaries.
• The reporting segments starting from FY2022 are as follows: "Agency Business (Domestic/Overseas)," which
provides comprehensive marketing support for apps and websites, and "Ad Platform Business," which
operates UNICORN and affiliate ad services, etc.
• Gross profit margin, SG&A expense margin, operating profit margin, ordinary profit margin, profit margin(profit margin attributable to owners of parent), sales cost margin and posting cost margin are expressed asa percentage of the gross sales above.

Copyright © Adways Inc. All Rights Reserved.

3

Chapter1 : Full Year FY2023 results

1

Full-YearFY2023. Performance

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4

FY2023 Initial Forecast andActual Performance(JPY mn)

Gross sales(Reference)

Net sales

Operating profit

Ordinary profit

Profitattributableto owners ofparentFY2023
Forecasts

58,91913,500

800

1,120

750

Results(cumulative)

59,006

13,524

921

1,313

966

Change

87

24

121

193

216

Achievementrate

100.1%

100.2%

115.2%

117.2%

128.8%

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5

Annual Results (YoY)(JPY mn)

YoY FY2022

FY2023 Result
Reference value

ChangeChange（%）

Gross sales

59,00659,590

-584

-1.0%

Net sales

13,524

13,415

+108

+0.8%

Gross profit

10,95010,806

+144

+1.3%

SG&A expenses

10,029

9,135

+894

+9.8%

Operating profit

921

1,671

-749

-44.9%

Ordinary profit

1,313

1,506

-193

-12.9%

Profit attributable toowners of parent

966

2,536

-1,570-61.9%

Gross
sales

YoY Decreased JPY -584 mn -1.0%

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Operating YoY Decreased
JPY -749 mn -44.9%
profit6

Segment Summary
Segment Gross sales: JPY 24,505 mn
YoY: JPY -1,941 mn (-7.3%)
Agency Business(Domestic)

In the game and comic app advertising businesses, client advertising budgets
are decreasing as revenues are on a decreasing trend due in part to market
commoditization and the freshness of popular apps showing signs of fading
as a long time has passed since these were released.

Segment Gross sales: JPY 9,381 mn
YoY: JPY -249 mn (-2.6%)
Agency Business(Oversea)

Ad Platform
Business

In the app business, there was a budget reduction of a client and decrease in
the number of major new title releases in Taiwan. In the brand business, too,Taiwan’s economic downturn causing budget reductions and other factors
resulted in decrease.

Segment Gross sales: JPY 22,659 mn
YoY: JPY +1,562 mn (+7.4%)
While UNICORN decreased due to the external environment andimperfection in the logic, affiliate grew substantially, mainly in thefinance genre of JANet.

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7

Annual Change in Consolidated Gross
sales(JPY mn)

49,02056,05559,59059,00637,304FY2019FY2020

FY2021

FY2022

FY2023

Reference figure fordomestic companies(calculated as 12 months)

Gross Sales JPY 59,006 mn
YoY: Decreased JPY -584 mn (-1.0%)
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8

Annual Change in Consolidated Grossprofit10,07810,806

8,767
6,504

(JPY mn)

10,950
18.6%

18.0%

17.9%

18.1%

17.4%

FY2019FY2020

FY2021
Reference figure fordomestic companies(calculated as 12 months)

Gross profit

FY2022Gross profit

FY2023Gross profit rate

JPY 10,950 mn

YoY: Increased JPY ＋144 mn (＋1.3%)
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Gross Profit rate: 18.6% (＋0.4 points)
9

Annual Change in Consolidated SG&A
Expenses(JPY mn)

80.0%

8,282
6,307
SG&A expenses

1,567
136
407
125

16.9%
4,070

FY2019

7,141

9,135

10,029
2,735

2,513
185
426
194

2,226

1,953

214
403
192

175
355
153

138
399
126

70.0%
60.0%
50.0%
40.0%
30.0%

17.0%

14.6%

14.8%

15.3%

4,523

5,371

5,811

6,487

FY2020

FY2021

FY2022

FY2023

20.0%
10.0%
0.0%

Reference figure fordomestic companies(calculated as 12 months)
Personnel

Exp enditure Recruiti ng & education expenses

Rent

Depreciation

Other expenses

SG&A to sales ratio

SG&A expenses JPY 10,029 mn
YoY: Increased JPY ＋894 mn (＋9.8%)
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SG&A to sales ratio : 17.0% (＋1.7 points)
10Annual Change in Consolidated Operating
Profit(JPY mn)

1,796
1,626

1,671

921

197

3.3%

3.2%

2.8%
1.6%

0.5%
FY2019FY2020

FY2021
Reference figure fordomestic companies(calculated as 12 months)

FY2022

Operating profit

FY2023Operating profit rate

Operating Profit JPY 921 mn
YoY: Decreased JPY -749 mn (-44.9%)
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Operating profit rate: 1.6% (-1.2 points)
11

Annual Change in Consolidated Ordinary
Profit(JPY mn)

2,227
1,866
1,506

406

1,313

4.0%

3.8%

2.5%

2.2%

1.1%

FY2019FY2020

FY2021
Reference figure fordomestic companies(calculated as 12 months)

FY2022
Ordinary Profi t

FY2023

Ordinary Profit rate

Ordinary Profit JPY 1,313 mn
YoY: Decreased JPY -193 mn (-12.9%)
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Ordinary profit rate: 2.2% (-0.3 points)
12

Breakdown of FY2023 Ordinary Profit(JPY mn)

FY2023OperatingprofitEquity method
investment
incomeGain on valuationof investment
securities
+132

Other
incomeFY2023
Ordinary
profit

+62

1,313

+196

921

Equity method investment income‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ JPY +196 mn‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

JPY +132 mn‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

JPY +62 mn

Gain on valuation of investment securities
Other income

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13

Annual Change in Consolidated Profit
Attributable to Owners of Parent(JPY mn)

2,536

1,546

1,422

4.3%

164

2.9%

966

2.8%
1.6%

0.4%

FY2019FY2020

FY2021
Reference figure fordomestic companies(calculated as 12 months)

FY2022

FY2023

Profi t attributable to owners of parent
Profi t Attributable to Owners of parent rati oProfit attributable to owners of parent JPY 966 mn
YoY: Decreased JPY -1,570 mn (-61.9%)

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Profit Attributable to Owners of parent
ratio: 1.6% (-2.6 points)
14

Breakdown of FY2023
Profit Attributable to Owners of Parent
Gain on sale of Settlement
investment
incomesecurities
FY2023
Ordinary
profit

＋472

+47

-105

1,313

-59

Loss onvaluation of Settlement
investment payments
securities

FY2023
Profit Attributableto owners ofparent-43
Arbitration
expenses

966

-659

Incometaxes total,
Other‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ JPY +472 mn
JPY +47 mn
Settlement income
JPY -105 mn
Loss on valuation of investment securities
JPY -59 mn
Settlement payments
JPY -43 mn
Arbitration expenses
Income taxes total, Other
JPY -659 mn
Gain on sale of investment securities‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

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15

Chapter2 : Fourth quarter results

2

FY2023 Q4.

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Performance16

Quarterly Results (YoY‧ QoQ)(JPY mn)

FY2023Q4

FY2022 Q4
FY2023 Q4
Performance
TrendsYoY
FY2022 Q4QoQ
FY2023 Q3Results

ChangeChange (%)

Results

ChangeChange (%)

Gross sales

14,637

14,417

+220

+1.5%

14,306

+331

+2.3%

Net sales

3,402

3,468

-65

-1.9%

3,278

+124

+3.8%

Gross profit

2,633

2,827

-194

-6.9%

2,678

-45

-1.7%

SG&A
expenses

2,368

2,346

+21

+0.9%

2,651

-283

-10.7%

Operatingprofit

265

481

-216

-44.9%

26+238+900.7%

Ordinary
profit

405

493

-87

-17.8%

104+301+288.6%

Profitattributable toowners ofparent

296

1,127

-831

-73.7%

-20

+316

-

Gross
sales

Increased JPY +220 mn +1.5%
QoQ Increased JPY +331 mn +2.3%
YoY

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-44.9%
Operating YoY Decreased JPY -216 mn
profitQoQ Increased JPY +238 mn (+900.7%
17

Quarterly Segment Summary
Segment Gross sales: JPY 6,589 mn
YoY: JPY -345 mn (-5.0%)
Agency Business(Domestic)

Agency Business(Oversea)

Ad Platform
Business

Comic app sales increased due to the resumption of comic app promotions,which were suspended in the same quarter of the previous year due to client
circumstances. Game apps declined due to budget cuts for titles that had
major promotions in the same quarter of the previous year.

Segment Gross sales: JPY 1,930 mn
YoY: JPY ＋218 mn (＋12.8%)
Distribution of game apps by overseas clients grew in Japan.
The foreign exchange rate contributed to this increase.

Segment Gross sales: JPY 5,496 mn
YoY: JPY +313 mn (+6.0%)
While UNICORN saw a decrease due to the absence of a major one-timepromotion in the same quarter of the previous year, affiliate ads grew
substantially, mainly in the finance genre of JANet.

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18

Quarterly Change in Consolidated
Gross Sales(JPY mn)

15,202

14,417

14,859

698

587

5,772

5,666

Gross Sales

5,182+11.4%

1,711+29.8%

2,221+29.4%

-6.1%

6,511

-12.3%

6,934

FY2022 4Q-1.8%

FY2023 1Q
AgencyDomestic

2,874

5,712

FY2023 2Q
AgencyOversea

14,637

14,306

606

621

533

+1.0%

5,724

-18.0%

2,355

-0.3%

5,692

-4.0%

5,496

-18.0%

1,930+15.8%

6,589

FY2023 3Q
Ad Platf orm

FY2023 4Q
Other

Q4 Gross Sales : JPY 14,637 mn
YoY: Increased JPY +220 mn (+1.5%)
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QoQ: Increased JPY +331 mn (+2.3%)
19

Quarterly Change in Consolidated
SG&A Expenses
2,650
2,346

2,651

2,368

2,358
741

744
593

655

677

SG&A expenses

26
115
34

59
105
37

16.3%

15.5%

1,466

1,526

FY2022 4Q

FY2023 1Q

Personnel(JPY mn)

Exp enditure Recruiti ng & education expenses

59
155
85

65
121
26

17.8%

18.5%

1,608

1,693

1,658

FY2023 3Q

FY2023 4Q

FY2023 2Q
Rent

33
34
47

16.2%

Depreciation

Other expenses

SG&A to sales ratio

Q4 SG&A expenses : JPY 2,368 mn
YoY: JPY +21 mn (+0.9%)
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SG&A to sales ratio: 16.2% (YoY: -0.1 points)
20

Quarterly Change in Consolidated
Operating Profit
539(JPY mn)

481

265

3.3%

3.6%

89

26

0.6%
FY2022 4Q

FY2023 1Q

FY2023 2Q
Operating profit

1.8%

0.2%
FY2023 3Q

FY2023 4Q

Operating profit rate

Q4 Operating profit : JPY 265 mn
YoY: JPY -216 mn (-44.9%)
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Operating Profit rate: 1.8% (YoY: -1.5 points)
21

Quarterly Change in Consolidated
Operating Profit (By Segment)(JPY mn)

481

539
68

Operating Profit

497

89

455

580

495

-13
-479

-582

AgencyOperating Profit rate

9.6%
6.7%

5.7%

FY2022 4Q

FY2023 1Q

2
271

276
-6

263

-557

-510

Other

6.7%

3.3%

3.2%

3
222

502
-463

Adj ust4.7%

FY2023 2Q
AgencyCopyright © Adways Inc. All Rights Reserved.

376

Ad Platf orm

7.9%

26

265

FY2023 3Q

5.9%
4.1%
FY2023 4Q

Ad Platf orm

22Quarterly Change in Consolidated Ordinary
Profit(JPY mn)

575
493
405
227
3.8%

3.4%

1.5%

FY2022 4Q

FY2023 1Q

FY2023 2Q
Ordinary profi t

104

2.8%

0.7%

FY2023 3Q

FY2023 4Q

Ordinary Profi t rate

Ordinary profit: JPY 405mn
YoY: JPY -87 mn (-17.8%)
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Ordinary Profit rate: 2.8% (YoY: -0.6 points)
23

Breakdown of FY2023 Q4 Ordinary Profit
Gain oninvestments ininvestment
partnerships

FY2023 Q4OperatingprofitEquity method
investment
income+68

Other
incomeFY2023 Q4
Ordinary(JPY mn)
profit

+18

405

+54

265

‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

JPY +54 mn‧‧‧‧‧‧‧‧‧‧‧ ‧‧‧‧ ‧ ‧‧‧‧ ‧ ‧JPY +68 mn‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

JPY +18 mn

Equity method investment income

Gain on investments in investment partnerships
Other income

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24Quarterly Change in Consolidated
Profit Attributable to Owners of Parent(JPY mn)

1,127

7.8%

618
4.1%

296

71
0.5%

2.0%
-0.1%

20

FY2022 4Q

FY2023 1Q
Profi t attributable to owners of parent

FY2023 2Q

FY2023 3Q

FY2023 4Q

Profi t Attributable to Owners of parent rati oProfit attributable to owners of parent : JPY 296 mn
YoY: JPY -831 mn (-73.7%)

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Profit Attributable to Owners of parent
ratio: 2.0% (YoY: -5.8%)
25

Breakdown of FY2023 Q4
Profit Attributable to Owners of Parent(JPY mn)

Settlement
Gain on sale of income
investment
securities+47
FY2023 Q4
Ordinary+85
profitFY2023 Q4Profit Attributable toowners of parent

405-63
Loss onvaluation of
investment
securities-59
Settlement
payments

296-43
Arbitration
expenses-77
Income taxes
total, Other

Gain on sale of investment securities ‧ ‧ ‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ ‧‧ ‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧

Settlement income

Loss on valuation of investment securities
Settlement payments

Arbitration expenses
Income taxes total, Other

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JPY
JPY
JPY
JPY
JPY
JPY

+85 mn+47 mn-63 mn-59 mn-43 mn-77 mn26

Chapter3 : Shareholder returns

3

FY2023

Shareholder Returns.

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27

Shareholder Returns
FY2023 Dividend

JPY

5.77

per share

Regular Dividend Policy (FY2021 – FY2023)
FY2021

FY2022

FY2023

Dividend payout
ratio of 21%

Dividend payout
ratio of 22%

Dividend payout
ratio of 23%

or

or

or

JPY 2.70 per share

JPY 2.80 per share

JPY 2.90 per share

Whichever is higher

Whichever is higher

Whichever is higher

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28

Chapter4 : Forecasts

4

FY2024

Forecast.

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29

FY2024 Consolidated
Performance Forecast Values(JPY mn)

Gross Sales（Reference）

Net Sales

Operating profit

Ordinary profit

Profitattributableto owners ofparentFY2024
Forecast

62,00014,200

770

1,000

580

FY2023Results

59,006

13,524

921

1,313

966

Change

2,993

675

-151

-313

-386

Change (%)

5.1%

5.0%

-16.4%-23.8%-40.0%

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30

Shareholder Returns
Dividend Policy
For the three-year period starting from the fiscal year ended December 2024 (through thefiscal year ending December 2026), we aim to pay a dividend per share using that fiscal year as
the dividend payout ratio excluding the first fiscal year (24% for the current fiscal year
because it is the 25th fiscal year) or based on a dividend of 3.00 yen per share, increased by
0.10 yen per share each year, whichever is higher.

Regular Dividend Policy (FY2024 – FY2026)
FY2024FY2025

FY2026

Dividend payout
ratio of 24%

Dividend payout
ratio of 25%

Dividend payout
ratio of 26%

or

or

or

JPY 3.00 per share

JPY 3.10 per share

JPY 3.20 per share

Whichever is higher

Whichever is higher

Whichever is higher*Please note that the dividend policy is subject to change based on major performance fluctuation, large-scale M&A and other management changes.

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31

OVER
. VIEW

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Chapter5 : business overview

5

BUSINESS

32

Advertising businessClassification of Advertising BusinessAgency business(Advertising agency)

Other companies’
services
Ad platform business(Advertising distribution
service)

User

Media

Clientetc

We classify our ad business into an agency business that also sells other companies’
services and an ad plaftform business that operates our ad distribution service.
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33

Agency business(Domestic)
Comprehensive app & web marketing support business
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34

Principles of Agency
Business (Domestic)

Fourth quarter

Digital transformation of marketing as a businessgrowth driver for clients

In our agency business, we provide comprehensive marketing support through integrated offline and online planning.
In order to approach brand advertisers and execute more effective market planning conscious of full-channel1 andfull-funnel2 marketing plans that integrate TV and digital, rather than confining ourselves to an advertising framework,
we are marketing consultants who provide comprehensive marketing support for all types of issues. We also fuse AIbased highly sophisticated marketing technology and human operational and creative capabilities to create essential
advertising value in order to provide comprehensive and efficient support for our clients' business growth.
*1.Full-channel : Widely utilizing media and other channels for attracting customers*2.Full-funnel : Addressing multiple stages of customer activities, ranging from recognition of the product to consideration and purchase (use)Copyright © Adways Inc. All Rights Reserved.

35

Progress of Capital and Business
Alliance with Hakuhodo DY GroupGross Profit from Alliancewith Hakuhodo DY GroupFY2021

FY2022

FY2023

Reference figure fordomestic companies(calculated as 12 months)

Number of Clients from Alliancewith Hakuhodo DY GroupFY2021

FY2022

FY2023

Reference figure fordomestic companies(calculated as 12 months)

Gross profit was strong.
*FY2021 (12 months for domestic companies) is reference figures that combine results from that year with domestic companies’ figures from thefourth quarter of the fiscal year ended March 2021 (accounting period).

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36

Ad platformbusiness
UNICORN, affiliate ad service business etc.
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37

Copyright © Adways Inc. All Rights Reserved.

38

Principles of Ad Platform
Business (UNICORN)
Three-dimensional expansion
based on channel, value and accountDisplay Ads

Display ads for
smartphone

Video Ads

OTTYouTubeSearch Ads

Other(Performance-Based)

App Storeads

Launched

CTV

In-gameads

DOOH

GoogleSearchUndertesting

UNICORN continues to expand in terms of distribution, working with services such as Connected TV andOTT* in addition to automatically optimized distribution on the Apple Search Ads｜Today tab, search tab,search results, and product pages. In addition, with testing done, compatibility with YouTube is now
complete and provision of ad delivery menu has commenced. We will continue to optimize user
communication across all channels.
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*OTT (Over The Top): A generic term for content services distributed through the internet.

39

Progress of UNICORN
Change in UNICORN Gross Sales and Machine Learning Costs(JPY mn)

1,800

1,713

1,600

1,417
1,349

1,400

1,2471,217

1,200

978

1,000

0

1,370

1,261
1,127

978 988

629

Test operation
period

400
200

1,042

1,404

764

800
600

1,409

120
48

191
54

259 242 268
60

54

59

317
69

402

452

181 202 215 214 185 189 199 201
153 139 130 138 157 170 185
135
109
89

FY2017 FY2018 FY2018 FY2018 FY2018 FY2019 FY2019 FY2019 FY2019 FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q

Gross sales
Machine learning costs

In materials up to the end of FY2021, only gross sales of UNICORN Inc were represented, but starting from FY2022, grosssales are represented as external sales generated by the Group that include transactions of departments exclusively
handling UNICORN related sales. As a result, gross sales in materials for FY2021 and earlier and gross sales in thisdocument differ. (Transactions of departments that also handle other products are not included.)

Although gross sales were 80% YoY due to the absence of a major one-time promotion in the same quarter ofthe previous year, this item still increased by JPY 243 mn (+21%) from the previous quarter.
About UNICORN
Copyright © Adways Inc. All Rights Reserved.

40

Progress of UNICORN
Progress by Genre

1,800
1,600

FY2023 Q4 results

341

1,400
136
83

1,200

8%

4%

1,000

116
188
51

395

280

800

14%

600
400

54%

756

733

200

20%

0
(JPY mn)Games

BrandsComicsOTT

OtherFY2022 4Q

Games

Brands

FY2023 4Q

ComicsOTTOther

OTT increased while other genres declined.
About UNICORN
Copyright © Adways Inc. All Rights Reserved.

41

Progress of UNICORNUNICORN’s Performance: YoY(JPY mn)

YoY FY2022 Q4

FY2023 Q4ResultChangeChange (%)

Gross sales

1,370

1,713

−342

−20.0%

Gross profit

481

585

−104

−17.8%

Operatingprofit

84

215

−130

−60.8%

Gross sales decreased by JPY 342 mn due to the absence of a major one-time promotionin the same quarter of the previous year.
About UNICORN
Copyright © Adways Inc. All Rights Reserved.

42

Advanced ad method
UNICORN Interactive AD

Cutting-edge creative
formats

Precise ad optimization
with UNICORN

Banner ∕ Video ∕ Reward Video
Native ∕ Interactive

Context ∕ Location ∕ Demographics
Carrier∕Approved list

Achieve completely new types of communication with unencounteredusers by using innovative creatives
Copyright © Adways Inc. All Rights Reserved.

43

Commencement of Collaboration with
Anzu, Provision of In-Game Ad Solutions
Distributing ads that are integrated into the game world will improve UX
and increase ad receptivity, boosting ad effectiveness.

Copyright © Adways Inc. All Rights Reserved.

44

Commencement of Comprehensive
Collaboration with ARROVA Engaged in
the In-Game/Metaverse/XR Field

We will contribute to market expansion by leveraging both UNICORN and ARROVA’s
knowledge and support expertise in gaming to introduce UNICORN's native in-game ads,
which are part of the game world, into the in-game, metaverse, and XR field.
*XR: Extended Reality. Technology that fuses the real world with the virtual world to create new experiences.
Copyright © Adways Inc. All Rights Reserved.

45

伝統と革新が融合する、
あたらしい集合体へ。

Copyright © Adways Inc. All Rights Reserved.

46

Principles of Ad Platform
Business (ADWAYS DEEE)

Update affiliate advertising withnew concepts

Copyright © Adways Inc. All Rights Reserved.

Strengthen service development toimprove consumer experience andmaximize media revenue
47

JANet 20th Anniversary
Event Held
We held an event celebrating the 20th anniversary of the JANet service.

There were talks on the state of affiliate
advertising and its intrinsic value.

236 people from111 companies attended.

We will continue to promote transparency, fairness and soundness inaffiliate advertising and contribute to the development of the industry inorder to keep providing “real value” to the world.
Copyright © Adways Inc. All Rights Reserved.

48

Co-existence of
Humans & Machines

Automate
What humans can’t doConsolidate what machines
can’t do to humans

Maximize performance
Copyright © Adways Inc. All Rights Reserved.

49

PURPOSE OF ADWAYS
Make the world say“OMG, This is Amazing”
and empower every
person to expand theirpotential, the heart of our“No People, No Gain”
philosophy.

Copyright © Adways Inc. All Rights Reserved.

50

Thank you very much forattending our presentation today
The information provided in this presentation contains forward-looking
statements including Adways Inc.’s current plans, outlook, estimates andforecasts related to its business and industry trends. Such statements are
subject to certain risks and uncertainties. Actual results may differ from theoutlook expressed herein due to risks which may or may not be known atpresent, uncertainties and various other factors. Adways Inc. makes nowarranty that its future outlook and forecasts are accurate, and actual results
may differ materially from company estimates and may be worse than thoseexpressed.
Statements made herein are based on information available as of February 9,2024, and a variety of factors may cause the statements to differ from actual
results.

Copyright © Adways Inc. All Rights Reserved.

51

SUPPLEMENTARY

Copyright © Adways Inc. All Rights Reserved.

Chapter6 : Supplementary materials

6

MATE
RIALS
.
52

Quarterly Change in Consolidated Gross Sales
18,00017,332
15,826

16,00014,97814,36814,417

FY2022
3Q

FY2022
4Q

15,202

14,859FY2023
1Q

FY2023
2Q

14,306

14,637

FY2023
3Q

FY2023
4Q

14,00012,00010,000
8,000
6,000
4,000
2,000
0
FY2021
3Q

FY2022
1Q

FY2022
2Q

Overseas
6-month period*FY2021 Q3 is a 6-month accounting period for overseas subsidiaries in line with the change of fiscal year.

Copyright © Adways Inc. All Rights Reserved.

53

Quarterly Change in Consolidated Cost of Sales
Listing fee(JPY mn)

Other costs

Cost of sales/cons. Sales

Listing fees/Parent sales

15,00014,00013,00012,00011,00010,0009,000
8,000
7, 000
6,000
5,000
4,000

82.1%

83.1%

83.5%

82.9%

81.2%

81.4%

82.1%

82.2%

81.9%

80.9%

82.3%

82.7%

82.0%

80.4%

80.9%

81.6%

81.3%

82.0%

FY2022
1Q

FY20222Q

FY2022
3Q

FY20224Q

FY2023
1Q

FY20232Q

FY2023
3Q

FY2023
4Q

3,000
2,000
1,000
0
FY2021
3Q
Overseas
6-month period*FY2021 Q3 is a 6-month accounting period for overseas subsidiaries in line with the change of fiscal year.
*Listing fee and Listing fees/Parent sales show non-consolidated figures and ADWAYS DEEE totals.

Copyright © Adways Inc. All Rights Reserved.

54

Quarterly Change in Consolidated SG&A Expenses(JPY mn)
Personnel

Recrutting&Training

Rent

3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000

16.2%

800

15.3%

16.3%

16.3%

FY2022
3Q

FY2022
4Q

17.8%

18.5%
16.2%

15.5%

13.6%

600
400
200
0
FY2021
3Q
Overseas
6-month period

FY2022
1Q

FY20222Q

FY2023
1Q

FY20232Q

FY2023
3Q

FY2023
4Q*FY2021 Q3 is a 6-month accounting period for overseas subsidiaries in line with the change of fiscal year.

Copyright © Adways Inc. All Rights Reserved.

55

Quarterly Change in Consolidated Operating Profit(JPY mn)
Operating Profit

800

655

700

4.1%

Operating Profit ratio

539

507

481

600

2.9%

3.6%

3.3%

500

294
400

2.0%
300

265

239

1.8%

1.7%
89

200

0.6%
100

26
0.2%

0
FY2021
3Q

FY2022
1Q

FY20222Q

FY2022
3Q

FY20224Q

FY2023
1Q

FY20232Q

FY2023
3Q

FY2023
4Q

Overseas
6-month period*FY2021 Q3 is a 6-month accounting period for overseas subsidiaries in line with the change of fiscal year.

Copyright © Adways Inc. All Rights Reserved.

56

Consolidated Balance Sheet (QoQ)(JPY mn)

FY2023 Q4

FY2023 Q3ChangeChange (%)

Current assets

19,94019,095

+844

+4.4%

(Cash and deposits)

10,194

9,757

+436

+4.5%

Non-current assets

5,287

5,444

-157

-2.9%

Total assets

25,227

24,540

+686

+2.8%

Current liabilities

10,342

9,741

+601

+6.2%

Non-current
liabilities

283

351

-67

-19.3%

Total liabilities

10,625

10,092

+533

+5.3%

Net assets

14,601

14,447

+153

+1.1%

Copyright © Adways Inc. All Rights Reserved.

57

Quarterly Breakdown of Consolidated Sales by Segment
18,00014,417

16,00015,202

14,859FY2023
1Q

FY2023
2Q

14,306

14,637

FY2023
3Q

FY2023
4Q

14,00012,00010,000
8,000
6,000
4,000
2,000
0

FY20224Q

QoQ(JPY mn)

FY2022 Q4

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4ChangeChange (%)

Agency (domestic)

6,934

6,511

5,712

5,692

6,589

+896

+15.8%

Agency (overseas)

1,711

2,221

2,874

2,355

1,930

-424

-18.0%

Ad platform

5,182

5,772

5,666

5,724

5,496

-228

-4.0%

Other

587

698

606

533

621

+87

+16.5%

Total

14,417

15,202

14,85914,306

14,637

+331

+2.3%

Copyright © Adways Inc. All Rights Reserved.

58

Quarterly Change in Group Employees
1,153

1,124

1,101

1,112

1,106

FY2022 Q3

FY2022 Q4

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

641

648

649

513

548

543

542

83

76

72

71

72

72

74

75

117

132

146

147

137

263

279

280

279

Overseas subsidiaries(excluding China)

144

138

144

143

148

135

145

133

128

Temporary workers,
part-time employees

105

98

58

64

119

118

68

76

129

Total

1,057

1,054

1,065

1,074

1,124

1,101

1,112

1,106

1,153

1,057

1,054

1,065

1,074

FY2021 Q3

FY2022 Q1

FY2022 Q2ADW Japan

611

603

ADW China

80

Domestic subsidiaries

1,200

1,000

800

600

400

200

0

（Persons）*Adways Japan decreased and domestic subsidiaries increased due to the ad platform business spinning off and becoming a subsidiary in FY2023 Q1.
Copyright © Adways Inc. All Rights Reserved.

59

Company Overview
Company name

Adways Inc.

FoundedFebruary 28, 2001

Businessoverview

Internet business

CEO
Capital

Sho Yamada
JPY1,717 mn

(As at end of December 2023)

Gross sales

JPY 59,006 mn(FY2023, Consolidated basis)

Employees

1,153 (for the entire group)(As at end of December 2023)* including temporary workers

Copyright © Adways Inc. All Rights Reserved.

60