2024
FY2023

FY2027

MEDIUM-TERM
MANAGEMENT PLANREVISION

Medium-Term
Management Plan Revision
01. Post-Revision Objectives
02. Context for Revisioncontents

03. Ad Business Strategy

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2

Contents01 : Revise the plan

POST - REVISIONOBJECTIVES
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Revised plan

Post-Revision Objectives

PeriodKPI

Post-Revision Objective

Initial Objective(set in 2023)

FY2023 – FY2027

FY2023 - FY2025

Operating profit of JPY

Operating profit of JPY

2 billion

3 billion

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4Contents02 : Revised factors

CONTEXT OFREVISION
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5

Revised factors

Context of Revision – Ad Market
In 2023, our agency business and UNICORN fell short of their respective plans due todelays in responding to market changes and inadequacies in ad delivery logic. The
advertising market is susceptible to the external environment, so adapting to market
trends is critical.

Market Trends

Consumers

Change in Society/Market

Change in Needs/Media• Online advertising market continues tomove away from what it should be• OTT/video ad market is growing rapidly• Physical consumption is returning postpandemic

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• E-commerce rate/digital transformation isaccelerating• User consumption behavior is diversifying

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Revised factors

Context of Revision – BusinessTo date, we have prioritized the independence of each of our businesses and promoted
market share acquisition and value creation while ensuring operational mobility.

Agency BusinessAgency Business

Ad Platform
Business

Ad Platform
Business(Domestic)(Overseas)(UNICORN)(ADWAYS DEEE)

Achieves digitaltransformation ofmarketing as agrowth driver ofclient businesses

Supports crossborder marketing

Grows threepillars of channels,
value provided,and accounts

Reconceptualizes
affiliateadvertising

Capital and business alliance with Hakuhodo DY Group
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Revised factors

Context of Revision – Business
The market, however, is making it difficult for each business to compete on its own, so
we will enhance business performance by combining the Adways group's capabilities.

Agency BusinessAgency Business

Ad Platform
Business

Ad Platform
Business(Domestic)(Overseas)(UNICORN)(ADWAYS DEEE)

Achieves digitaltransformation ofmarketing as a
growth driver ofclient businesses

Supports crossborder marketing

Grows threepillars of channels,
value provided,and accounts

Reconceptualizes
affiliateadvertising

Capital and business alliance with Hakuhodo DY Group
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8

Contents03 : Advertising business strategy

MEDIUM -TERM
AD BUSINESSSTRATEGY
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9Advertising business strategy

Medium-Term Ad Business Strategy toEnhance Adways Group Capabilities
Until nowFuture

Ad BusinessMedium-Term
Ad Business Strategy

Individual businessstrategies

Comprehensive Adways group plan

Strategy

Strategy

Strategy

Strategy

Strategy

Strategy

Strategy

UNICORN

Strategy

ADWAYS
DEEE

Strategyt

AGENCY
BUSINESS

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Strategy

AGENCY
BUSINESS

Strategyt

Strategy

ADWAYS
DEEE

Strategy

Strategy

UNICORN

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Advertising business strategy

Medium-Term Ad Business Strategy to
Enhance Adways Group Capabilities
Core Strategy 01:

Core Strategy 02:

Core Strategy 03:

Mobilize entire
ad business

Liberate humanpotential

Realize ideal
futuret

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Advertising business strategy

Core Strategy 01:

MOBILIZE ENTIREAD BUSINESS

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12Advertising business strategy

Core Strategy01: Mobilize entire ad business
Until now, strategic collaboration among the group divisions has been weak, as eachbusiness has prioritized independence and mobility.

Agency Business(Domestic)

Agency Business(Overseas)

AGENCYACCOUNT

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Ad Platform
Business

Ad Platform
Business

ADWAYS DEEEUNICORNAD PLATFORM

ACCOUNT13

Advertising business strategy

Core Strategy01: Mobilize entire ad business
By integrating our business formation, we will be able to make essential and optimal
proposals to our clients by combining the capabilities of each business.
AD PLATFORM

ACCOUNT

Agency Business(Domestic)

Agency Business(Overseas)

AGENCYACCOUNT

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ACCOUNTAD PLATFORM

ACCOUNTACCOUNTAd Platform
Business

Ad Platform
Business

ADWAYS DEEEUNICORNAD PLATFORM

ACCOUNTACCOUNT14

Advertising business strategy

Core Strategy01: Mobilize entire ad businessSelect industries to step up based on market growth rate and scale and strengthen thedevelopment of new industries. Provide optimal, industry-specific planning and productsolutions through an integrated business formation.

EntertainmentEC / Finance / Travel / Education / HR /Real estate / Energy /Communication industry

Other industries
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Advertising business strategy

Core Strategy 02:

LIBERATE HUMANPOTENTIAL

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Advertising business strategy

Core Strategy02: Liberate human potential
Increase productivity per person and reconfigure each business into one that is profitable
and has unique value.

Gross profit productivity :Gross profit per employee per year
(Business' gross profit margin x productivity per worker)

High-gross-profit-ratebusiness
Large added value andcompetitive advantage

High productivity-perperson business
Creative work rather thanlabor-intensive work

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Hiring of top
talent/development ofemployees

17Advertising business strategy

Core Strategy02: Liberate human potential
Identify points to improve gross profit productivity and promote initiatives

Increase gross profit rateof each businessLow gross profit rate
= Price war is occurring

High gross profit rate
= Highly unique,hard-to-replace value

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Increase value producedby each person

Divide labor according tofunctions necessary forbusiness

Full use ofsystematized/generative AI
for simple required tasks

18Advertising business strategy

Core Strategy02: Liberate human potential- UNICORN Case Study

Although last in the red ocean market, we created a unique and valuable business bychanging the way the market itself is perceived.

Existing MarketDSP•

Saturated DSP market•

Hard to optimize CPA•

Hard to differentiate as aservice

Ideal Future

Predict the ideal future/
Create value to meet client needs

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Create new markets byenvisioning change andpresenting the way things
should be19

Advertising business strategy

Core Strategy02: Liberate human potential- UNICORN Case Study

Maximize the value of human labor and improve gross profit productivity.

Ad Business

UNICORN(Including UNICORN)

Gross profit productivity
2023

Gross profit rate :Gross profit rate :34.0 %
Gross profit :18.2 %
Gross profit :26.20 mn JPY(per person)

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Gross profit productivity
2023

13.44 mn JPY(per person)

20Advertising business strategy

Core Strategy 03:

REALIZEIDEAL FUTURE

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Advertising business strategy

Core Strategy03: Realize ideal future
The coming future based on current trends.

Tech innovation

Ad markettConsumer lifestyle

Change in/diversification of
search-linked advertising•

Increasing e-commerce rate•

Popularization of video viewing•

Expansion of digitaldistribution•

Expansion of OTT and CTVservices

Blockchain technology•

Increased transparency•

Spread of Web3 and metaverse•

Changes in targeting,measurement, and evaluation

Increased interactivity inentertainment••

Use of AR and MRSocial implementation ofautonomous driving, mobility•

Thin clients•

Battery innovation•

Development and spread ofvoice recognition••

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Advertising business strategy

Core Strategy03: Realize ideal future
In order to realize an ideal future, we will aggressively invest in the following themes.

01t02tPromote digital programmatic mediaProvide diverse solutions for industries
with numerous online products

03

04

t

Pursue the ideal way to handle personal
data
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t

Establish optimal solutions to diversify adevaluation, measurement, and analysis
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MEDIUM-TERM AD BUSINESS STRATEGY

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24Advertising business strategy

Adways’ Future
To solve problems around the world with technology and solutions.
Adways is committed to providing essential value to all Adways stakeholders by expanding our efforts
to identify and resolve social issues that transcend industry boundaries in order to realize the ideal
state of internet advertising.

AdClients
×
East Asia

OtherIndustries
×
GlobalIndustries × Countries

Issue
Awareness

AdtechAdvertising industry

Adways to date

DX

Adways ahead

Solutions ＆ Technologies
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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.
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