Contents
Q2 FY2024 Performance...P.4

2. Business Overview...P.17

3. Supplementary Materials...P.45

chapter1.

Note on Terms• The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) is in effect from the
beginning of 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 as a percentage of the gross sales above.

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3

Second quarter

Chapter1 : Second quarter results

1

Q2 FY2024.

Performance

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4

Quarterly Results (YoY・QoQ)(JPY mn)

FY2023 Q2
FY2024 Q2

FY2024 Q2

Performance
TrendsYoY

QoQ

FY2023 Q2

FY2024 Q1Results

ChangeChange (%)

Results

ChangeChange (%)

Gross sales

13,494

14,859-1,364-9.2%

14,638-1,143-7.8%

Net sales

3,094

3,387

-293

-8.6%

3,298

-204

-6.2%

Gross profit

2,514

2,740

-226

-8.3%

2,708

-194

-7.2%

SG&A expenses

2,655

2,650

+4

+0.2%

2,514

+140

+5.6%

Operatingprofit/loss

-140

89

-230

─

194

-335

─

Ordinary
profit/loss

-65

227

-293

─

323

-389

─

Profit/Lossattributable toowners of parent

-132

71

-203

─

310

-443

─

Gross
sales

Decreased -1,364 mn
Decreased -1,143 mn

YoY
QoQ

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（-9.2%）（-7.8%）

Operatingprofit/loss

YoY
QoQ

Decreased -230 mn （ - ）Decreased -335 mn （ - ）5

FY2024 Consolidated Performance
Forecasts and Results (January 1, 2024-December 31, 2024)(JPY mn)

Gross sales(Reference)

Net sales

Operating profit

Ordinary profit

Profitattributableto owners ofparentForecasts

62,00014,200

770

1,000

580

Q2 Results

28,132

6,393

53

257

178

Forecasts
Progress rate

45.4%

45.0%

7.0%

25.8%

30.8%

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6

Yearly Change in Consolidated Gross Sales(FY2024 is reference figures combining the results of that year with forecast)(JPY mn)

62,000(Forecast)

56,05559,590

Reference figure fordomestic companies(calculated as 12 months)

49,02039,61335,89042,329 41,501 41,857

59,00642,93037,304

31,521
28,132
22,63915,907（Q2 FY2024）
Progress rate

45.4%

17,972

13,1578,302
4,918
FY2007 FY2008 FY2009 FY2010

FY2011FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024*FY2021 (12 months for domestic companies) is reference figures combining the results of that year with domestic companies’ Q4 of the fiscal year ended March 2021
(accounting period) (in line with the change of fiscal year, the accounting period of the fiscal year year ended December 2021 was 9 months for domestic companies).

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7

Quarterly Segment Summary
Segment Gross sales : JPY 5,440 mn
YoY : JPY -272 mn (-4.8%)

Agency Business(Domestic)

Agency Business(Oversea)

Game apps and payment service apps decreased due in part to policy
shifts at some clients. Comic apps and e-commerce campaigns grew.
Brand ads for broadening awareness grew.

Segment Gross sales : JPY 2,080 mn
YoY : JPY -793 mn (-27.6%)
App ads decreased due in part to underperformance of our services in
China. In Taiwan, LINE sales were extremely brisk, resulting in brand ads
growing.

Ad Platform Business

Segment Gross sales : JPY 5,460 mn
YoY : JPY -205 mn (-3.6%)
Affiliate ads for apps decreased. Finance affiliate ads remained unchanged.
UNICORN’s brands genre grew substantially.

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8

Quarterly Change in Consolidated
Gross Sales
14,8595,712

14,306

14,637

14,638

5,692

6,589

6,258

-0.3%

+15.8%

2,874

2,355

-18.0%

5,666-18.0%

5,724

1,930

-5.0%

-3.8%

-4.0%

13,494-13.1%

5,440+12.0%

2,080

5,930

5,496

+1.0%

1,857

+7.9%

(JPY mn)

-7.9%

5,460

606

533

621

591

513

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q2Other

Ad Platform

Agency（Oversea）

Agency（Domestic）

Q2 Gross Sales : JPY 13,494 mn
YoY: Decreased JPY -1,364 mn (-9.2%)

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QoQ: Decreased JPY -1,143 mn (-7.8%)
9

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

2,650

2,651
2,368

741

2,514

720

744

686

593

Personnel

45
83
96

59
155
85

65
121
26

17.8%

18.5%

1,608

1,693

1,658

1,630

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2023 Q2

2,655

33
34
47

45
82
69

17.2%

16.2%

Expenditure Recruiting & education expenses

Rent

19.7%

Depreciation

1,708

FY2024 Q2Other expenses

SG&A to sales ratio

Q2 SG&A expenses : JPY 2,655 mn
YoY: JPY +4 mn (+0.2%)

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SG&A to sales ratio: 19.7% (+1.8 points)

10Quarterly Change in Consolidated
Operating Profit/Loss(JPY mn)

265
194
89

26

0.6%

0.2%

1.8%

1.3%

-140
FY2023 Q2

FY2023 Q3

FY2023 Q4Operating profit

FY2024 Q1

FY2024 Q2

Operating profit rate

Q2 Operating profit/loss : JPY -140 mn
YoY: JPY -230 mn

QoQ: JPY -335 mn*Operating profit rate for FY2024 Q2 is a negative figure and thus not presented.

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11

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

265

194

502

493

-140

-6

271
2

222
3

154
90

280
81
68

-557

-510

-463

-544

-571

89
Operating Profit

276
376

26
263

Other

Operating Profit rate

6.7%

Ad Platform

4.7%

AgencyAdjust

5.9%

6.1%
3.7%

3.2%

3.3%

4.1%

2.6%

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

Agency1.5%
FY2024 Q2

Ad Platform

Agency : Although gross sales decreased YoY, keeping SG&A expenses under control resulted in operating profit rate improving.
Ad Platform : Operating profit rate decreased due to aggressive investment for further growth in the future.

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12

Quarterly Change in Consolidated
Ordinary Profit/Loss(JPY mn)

405
323
227
104
1.5%

FY2023 Q2

2.8%

2.2%

0.7%

FY2023 Q3

FY2023 Q4
Ordinary profit

FY2024 Q1-65

FY2024 Q2

Ordinary profit rate

Q2 Ordinary profit/loss : JPY -65 mn
YoY: JPY -293 mn

QoQ: JPY -389 mn*Ordinary profit rate for FY2024 Q2 is a negative figure and thus not presented.

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13

Breakdown of FY2024 Q2
Ordinary Profit/Loss(JPY mn)

Other
incomeEquity method
investment
income

+39

-65

+35
FY2024 Q2
Ordinary profit/loss-140
FY2024 Q2
Operating profit/loss
Equity method investment income ‧‧‧ JPY +35 mn

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Other income ‧‧‧ JPY +39 mn
14Quarterly Change in Consolidated
Profit/Loss Attributable to Ownersof Parent
296

310

2.0%

2.1%

71
0.5%

(JPY mn)

20

-

-132
FY2023 Q2

FY2023 Q3

FY2023 Q4Profit attributable to owners of parent

FY2024 Q1

FY2024 Q2Profit attributable to owners of parent ratio

Profit/Loss attributable to owners of parent : JPY -132 mn
YoY: JPY -203 mn

QoQ: JPY -443 mn*Profit attributable to owners of parent ratio for FY2023 Q3 and FY2024 Q2 are negative figures and thus not presented.

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15

Breakdown of FY2024 Q2 Profit/Loss
Attributable to Owners of Parent
Gain on sale ofshares of
subsidiaries
and associates(JPY mn)

Gain on sale ofinvestment
securities
+15

+27

-65
FY2024 Q2
Ordinary profit/loss-39
Loss onvaluation of
investment
securities-70

Gain on sale of shares of subsidiaries and associates ‧‧‧ JPY +27 mn
Gain on sale of investment securities ‧‧‧ JPY +15 mn
Loss on valuation of investment securities ‧‧‧ JPY -39 mn
Income taxes total, Other ‧‧‧ JPY -70 mn

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-132

FY2024 Q2
Income taxes
total, Other Profit/Loss attributableto owners of parent

16

Second quarter

OVER. VIEW

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Chapter2: business overview

2

BUSINESS

17

Advertising business

Second quarter

Classification 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 platform business that operates our ad distribution service.
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18

Agency business(Domestic/Oversea)
Comprehensive app & web marketing support business
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19

Principles of Agency
Business (Domestic)

First quarter

Digital transformation of marketing as abusiness growth 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 and full-funnel2
marketing plans that integrate TV and digital, rather than confining ourselves to an advertising framework, we aremarketing consultants who provide comprehensive marketing support for all types of issues. We also fuse AI-based highlysophisticated marketing technology and human operational and creative capabilities to create essential advertising value inorder 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.

20

Progress of Capital and Business
Alliance with Hakuhodo DY GroupGross Profit from Alliancewith Hakuhodo DY GroupFY2023Q2

FY2023Q3

FY2023Q4

FY2024Q1

FY2024
Q2

Number of Clients from Alliancewith Hakuhodo DY GroupFY2023Q2

FY2023Q3

FY2023Q4

FY2024Q1

FY2024
Q2

Budgets reduced due to client policy in some accounts.
Number of accounts increased YoY.
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21

Next-Generation Solutions for
Amplifying Digital Marketing

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22

Second quarter

Integration of
All Programmatic Advertising Support of
Adways Spanning 10 YearsAMP Series creating real advertising value by integrating strong, people-driven
operational capabilities and creativity with sophisticated marketing technologies that leverage AI,
providing comprehensive, efficient support for clients’ business growth.

Planning

Creative

Optimize

Analytics

Market data analysis

Creative AI analysis

Ad operation optimization

Media algorithm analysis

Prediction AI

Creative auto generation

Unique operational function addition

Behavioral and causal visioning

Automatic generation of video creatives

Infinitely extended logic targeting

Automatic generation of still-image creatives

Delivery optimization management

Creative effectiveness analysis

Media operations support

Market data analysis

Delivery simulation

Media analysis and trend
cause-and-effect visioning

Video viewership analysis

Creative management tool

Cross-sectional media monitoring*Plan to keep expanding the Series as needed

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23

Analytics Tool Specializing in Creatives“Creative Analyzer”
Creative
Creative series

New

Provides visualization of ad effectiveness per ad creative from various angles,
such as campaign genre, appeal point and length. Realizes production of
more highly effective ad creatives based on the findings of advanced analytics.
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24

Ad Optimization ProductsCompatible with Major Mega Platforms
Analytics
Analytics series

AI detects ad improvement and optimization points,
enabling improvement of ad effectiveness and also
control of ad delivery in line with marketing strategies.

Google(Facebook and Instagram)(formerly Twitter)

X

TikTokAdvertising
Compatible

Advertising
Compatible

Advertising
Compatible

Advertising
Compatible

Meta

Compatible with “Google Search”
New

Copyright © Adways Inc. All Rights Reserved.

Serving to enhance ad effectivenessfor web promotions.

25

Overseas Marketing
Support BusinessTaiwanCertified as LINE Taiwan’s “Display Solutions Sales Partner”
with the one and only highest level of recognition, “Emerald,” andselected as “The Best Sales Partner” of “LINE Family Club” for the fifth consecutive year.

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26

Ad platformbusiness
UNICORN, affiliate ad service business etc.
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27

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 and OTT* inaddition 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 addelivery menu has commenced. We will continue to optimize user communication across all channels.
Copyright © Adways Inc. All Rights Reserved.

*OTT (Over The Top): A generic term for content services distributed through the internet.

29

Second quarter

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

2,000

1,713

1,800
1,600

1,200

978

1,000
800
600
400
200
0

1,404
1,370
1,261
1,127

1,418

185 181 202 215 214 185 189 199 201

242 255

1,417
1,409
1,349
1,247
1,217

1,400

1,042

1,607

978 988

764
Test operation
period629

259 242 268

191
120
48 54 60

54

59

317
69

402
89

452
157 170
109 135 153 139 130 138

FY201 7 FY201 8 FY201 8 FY201 8 FY201 8 FY201 9 FY201 9 FY201 9 FY201 9 FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2

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,
gross sales 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 inthis document differ. (Transactions of departments that also handle other products are not included.)

112% YoY, with not only Q1 but also Q2 marking new record highs each fiscal year.
About UNICORN
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30

Second quarter

Progress of UNICORN (Total Operating Ad Spend*)
Change in UNICORN Total Operating Ad Spend*/Machine Learning Costs(JPY mn)

2,000

1,600

1,423
1,399
1,338
1,238
1,224

1,400
1,200

975

1,000
800
600
400
200
0

1,748

1,741

1,800

1,035

1,417

1,497

1,393

1,262
1,141

968 989

757
Test operation
period621
318

265 248 272
202
121
48 54 60 54 59 69

406 44289

157 170
109 135 153 139 130 138

185 181 202 215 214 185 189 199 201

242 255

FY201 7 FY201 8 FY201 8 FY201 8 FY201 8 FY201 9 FY201 9 FY201 9 FY201 9 FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2

Total operating ad spend

Machine learning costs

Total operating ad spend* also grew, with the YoY change being 118% (JPY 234 mn increase)*Total operating ad spend is different from gross sales in that it is the total amount of money actually spent on ads served through UNICORN's system. In some cases, only
UNICORN's margin is included in gross sales at the request of the client, and in other cases, gross sales are reduced when certain conditions are met according to theagreement with the client, so in order to show more accurately the increase or decrease of UNICORN as a service, from 2024 we are adding a chart of total operating ad spend.

About UNICORN
Copyright © Adways Inc. All Rights Reserved.

31

Progress of UNICORN

Second quarter

Progress by Genre(JPY mn)1,600

FY2024 Q2 Results

1,400
241
1,200
1,000

17%

800

36%

8%

191

115

165
66

179

287

366

550

514

600
400

13%

200

26%

0
FY2023 Q2

Games

BrandsComics

OTT

Other

Games

Brands

FY2024 Q3ComicsOTT

Other

By genre, brands grew substantially and comics, which had performed
poorly in the same quarter of the previous year, also recovered.
About UNICORN
Copyright © Adways Inc. All Rights Reserved.

32

Progress of UNICORN

Second quarter

UNICORN’s Performance: YoY(JPY mn)

YoY FY2023 Q2

FY2024 Q2ResultChangeChange (%)

Gross sales

1,418

1,261

＋156

＋12.4%

Gross profit

498

463

＋34

＋7.5%

Operatingprofit/loss

-2

89

-50

-

Gross sales and gross profit showed solid performance.
Operating profit decreased due in part to increase in hiring of new graduates for further growth ahead.
*Operating profit/loss for FY2024 Q2 is a negative figure and the rate of change is thus not presented.

About UNICORN
Copyright © Adways Inc. All Rights Reserved.

33

Advanced ad method
UNICORN Interactive AD

Second quarter

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
unencountered users by using innovative creatives
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34

“Reaction Banners”
Contributing to Brand Lift*
Through Optimization of Delivery
Favorability

UP

Intent to use

UPA brand lift* study found that utilization ofreaction banners produced such results asbrand favorability increasing by 20.5pt andintent to use the brand increasing by 18.7pt.

A visualization of how much target ads or products “capture the attention” of users
is created based on the reaction of users when ads display.
The delivery is optimized by using unique algorithms based on machine learning of this data.
This leads to effectively greater reach to those users reacting positively to the ads.
*Brand lift: Lifting of awareness, perception, purchase intent, etc. for a brandCopyright © Adways Inc. All Rights Reserved.

About UNICORN
35

Strategic Partnership andEstablishment of Joint Venturewith MetricWorks Inc.
Established MetricWorks Japan Inc. as a joint venture with MetricWorks Inc.,
provider of a next-generation mobile measurement platform that has entered into
partnerships with also Google, TikTok, Meta and other leading global companies

Seeking to contribute to stimulating domestic and overseas promotions and marketing
campaigns by strengthening initiatives for real ad evaluation support to advertisers
About UNICORN
Copyright © Adways Inc. All Rights Reserved.

36

GAME FUTURE SUMMIT 2024
Sponsor and Speaker
Yamada took the stage to speak along with key industry figures at GAME FUTURE
SUMMIT 2024, a large-scale offline conference event for the game industry

Held a talk session on the topic of “what to know on how to deliver ads and evaluate them to increase your users”

Seeking to contribute to further development of the game industry by building aframework for real and appropriate evaluation of ads to help advertisers maximize
ad effectiveness and publishers* maximize earnings based on such.
*Publishers: Businesses that publish content in the game industry

Copyright © Adways Inc. All Rights Reserved.

About UNICORN
37

Establishment of UNICORN THA Co., Ltd.
in Thailand as the First Overseas Expansion
As the first overseas expansion of UNICORN, established UNICORN THA Co., Ltd.
as a local subsidiary in Thailand, where the transition to a digital economy
is progressing under the national project “Thailand 4.0”*

Designed to realize maximization of the effectiveness of promotions, UNICORN’s various functions
and strengths will be introduced to Thailand’s digital market to support brand marketing.
*Thailand 4.0: The vision for the economy and society that Thailand seeks to become over the long term proposed by the Thai Government in 2015

About UNICORN
Copyright © Adways Inc. All Rights Reserved.

38

Second quarter

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39

Principles of Ad Platform
Business (ADWAYS DEEE)

Update affiliate advertising withnew concepts

Copyright © Adways Inc. All Rights Reserved.

Second quarter

Strengthen service development toimprove consumer experience andmaximize media revenue
40Launch of Business of Operating
E-Commerce Websites for Conveying the
Appeal of Local Products From All Over Japan

Launched e-commerce website “Kubotabiyasan” jointly with “Kubotabi (@kubo_tabi_),” popular
creators known as “a married couple around thirty years old who travel around 300 days a year” with a
total of over 2.75 million followers on social media

Seeking to contribute to market development by fostering ties and collaboration with creators
who are serving as disseminators of information, as well as local governments, producers andcompanies nationwide, and through effective promotions, development of collaboration
products and so forth that would lead to ongoing sales of local specialties.

Copyright © Adways Inc. All Rights Reserved.

41

Co-existence of
Humans & Machines

Second quarter

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

Maximize performance
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42

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.

43

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 no warranty
that its future outlook and forecasts are accurate, and actual results may differ
materially from company estimates and may be worse than those expressed.
Statements made herein are based on information available as of July 31, 2024,
and a variety of factors may cause the statements to differ from actual results.

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44

Second quarter

SUPPLEMENTARY

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Chapter3 : Supplementary materials

3

MATE
RIALS
.
45

Quarterly Change in Consolidated Gross Sales(JPY mn)
18,00016,00014,97814,36814,417

FY2022 Q3

FY2022 Q4

15,202

14,85914,306

14,637

14,63813,49414,00012,00010,000
8,000
6,000
4,000
2,000
0
FY2022 Q2Copyright © Adways Inc. All Rights Reserved.

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q2

46

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

Other costs

Cost of sales/cons. Sales

Listi ng fees/Parent sales

14,00013,00012,00011, 000
10,000
9,000
8,000
7,000
6,000
5,000

83.5%

82.9%

81.2%

81.4%

82.1%

82.2%

81.9%

81.1%

4,000

82.7%

82.0%

80.4%

80.9%

81.6%

81.3%

82.0%

81.5%

81.4%

FY2022 Q2FY2022 Q3

FY2022 Q4

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q2

83.0%

3,000
2,000
1,000
0

*Listing fee and Listing fees/Parent sales show non-consolidated figures and ADWAYS DEEE totals.

Copyright © Adways Inc. All Rights Reserved.

47

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

Recrutting&Training

Rent

Depreciation

Other expenses

SG&A/cons.sales

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

15.3%

16.3%

16.3%

FY2022 Q3

FY2022 Q4

17.8%

19.7%

18.5%
16.2%

15.5%

17.2%

600
400
200
0
FY2022 Q2Copyright © Adways Inc. All Rights Reserved.

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q248

Quarterly Change in Consolidated
Operating Profit/Loss
Operating profit(JPY mn)

Operating profit rati o

800

539

700

481
3.6%

600

3.3%
500

400

294

265

239
2.0%

1.8%

1.7%

300

89

194
1.3%

26

200

0.6%
0.2%

100

-140

0

-100

-200
FY2022 Q2FY2022 Q3

FY2022 Q4Copyright © Adways Inc. All Rights Reserved.

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q2

49

Consolidated Balance Sheet (QoQ)(JPY mn)

FY2024 Q2

FY2024 Q1

ChangeChange (%)

Current assets

18,184

19,773-1,589-8.0%(Cash and deposits)

9,985

10,015-30-0.3%

Non-current assets

5,236

5,012

+223

+4.5%

Total assets

23,42024,786-1,365-5.5%

Current liabilities

8,510

9,989

-1,479-14.8%

Non-current
liabilities

258

227

+31

+13.7%

Total liabilities

8,769

10,217-1,447-14.2%Net assets

14,651

14,569+82+0.6%

Copyright © Adways Inc. All Rights Reserved.

50

Quarterly Breakdown of Consolidated Sales by Segment(JPY mn)
18,00014,85916,00014,306

14,637

14,638FY2023 Q3

FY2023 Q4

FY2024 Q1

13,49414,00012,00010,000
8,000
6,000
4,000
2,000
0

FY2023 Q2

FY2024 Q2

QoQ(JPY mn)

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

FY2024 Q2ChangeChange (%)

Agency (domestic)

5,712

5,692

6,589

6,258

5,440

-818

-13.1%

Agency (overseas)

2,874

2,355

1,930

1,857

2,080

+222

+12.0%

Ad platform

5,666

5,724

5,496

5,930

5,460

-470

-7.9%

Other

606

533

621

591

513

-77

-13.2%

Total

14,85914,306

14,637

14,63813,494-1,143-7.8%

Copyright © Adways Inc. All Rights Reserved.

51

Quarterly Change in Group Employees
1,124

1,101

1,112

1,106

1,153

1,155

1,065

1,074

FY2022Q2

FY2022Q3

FY2022Q4FY2023Q1

FY2023Q2

FY2023Q3

FY2023Q4

FY2024Q1

FY2024ADW Japan

641

648

649

513

548

543

542

504

540

ADW China

76

72

71

72

72

74

75

67

61

Domestic subsidiaries

146

147

137

263

279

280

279

303

337

Overseas subsidiaries(excluding China)

144

143

148

135

145

133

128

125

133

Temporary workers,
part-time employees

58

64

119

118

68

76

129

66

82

Total

1,065

1,074

1,124

1,101

1,112

1,106

1,153

1,065

1,153

1,200

1,065

1,000

800

600

400

200

0

（Persons）

Q2*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.

52

Company Overview
Company name

Adways Inc.

FoundedFebruary 28, 2001

Businessoverview

Internet businessCEO

Sho Yamada

CapitalJPY 1,717 mn

Gross sales

JPY 59,006 mn

Employees

1,153 (for the entire group)※including temporary workers

Copyright © Adways Inc. All Rights Reserved.

(As at end of June 2024)(FY2023, Consolidated basis)(As at end of June 2024)53