FY2024/5 Financial Results for Q1

株式会社
GunosyInc.G u n o s y
TSE(6047)
東 証Prime
⼀ 部 （証券コード：6047）

INDEX

1. Executive Summary

P3

2. Financial Results for FY2024/5 Q1

P 20

3. FY2024/5 Outlook

P 26

4. Business Overview by DivisionP 28

5. Company Information

P 35

6. Reference Materials

P 40（C） Gunosy Inc. All Rights Reserved.

2

Executive Summary（C） Gunosy Inc. All Rights Reserved.

3

FY2024/5 Q1 Summary
Financial Summary
Net sales

1,880

Million yen Operating profit
97.6％
YoY

(Million yen)

Net sales

Operating profit

Gunosy

1,169
456
254

-265
91
-11

Game8
Others

-185

-

YoY

14%
24%

Million yen

Percentage ofconsolidated net sales

62%

GunosyGame8OthersSummary

Product KPIs in Gunosy remained strong. However, sales declined both QoQ
and YoY due to the negative impact of per-user profitability.

2

In Game8, sales of "game8.jp" continued to be strong. As for the overseas
business, eCPM is also showing signs of gaining strength in the near term.

3

In "slice", a product update was completed in conjunction with the acquisition ofa full PPI license. In addition, the Reserve Bank of India (RBI) approved themerger of slice and NESFB. (PPI: Prepaid payment instrument)（C） Gunosy Inc. All Rights Reserved.

POINT

1

4

Portfolio Summary
The profitability forecast for our media business has been lowered, but Game8 is making up for it. The
growth potential of "slice" has improved significantly in both the short and medium to long term.
In the area of large language models (LLM), "Udekiki", a product for our corporate customers, isscheduled for release in November.
Gunosy Group business portfolio

Guideline

PolicyMedia Business

Game8 Group

Investment

New Businesses

Gunosy, NewsPass,au Service Toray

Game8, Smarpriseslice

LLM, YOU IN, colleize etc.

Aim for a market capitalization of 100 billion yen in the medium to long term
Raise investment
criteria and curtail
advertising investmentin the face of growing
uncertainty about
profitability

Invest in areas where
we can leverage ourexisting media strengthand customer baseContinue close asset
management toenhance the value of
our investments(LLM)
Launch a new product(Others)
Make investment
decisions on an individual
basis while monitoringbusiness progress(slice)l Product KPIs remained

strong.
l Weakness in the

Current
summary

advertising market
continued to cause
lackluster performancein direct media buying
and declining profitability
in programmatic
advertising.

l Both PV and eCPM

remained strong.
l Signs of positive
growth in eCPM,
particularly in theoverseas business, area positive factor forsales in Q2 andbeyond.

l Profitability improvement isunderway to become
profitable in a single month.
l A full PPI license was

acquired in August 2023,
which will be a driver of
AUM growth.
l The RBI approved thel In November 2023, willallow us to enter"Udekiki" will belaunched to encourage
our corporate
customers to use LLM,
which the BtoB space.

merger of slice and NESFB(North East Small FinanceBank).
（C） Gunosy Inc. All Rights Reserved.

5

Sales Increase / Decrease
In Gunosy Ads, the recovery of profitability was slower than expected, resulting in lower sales. Game8and Others saw both QoQ and YoY sales growth.
Details of sales increase/decrease

FY2024/5
Q1 result(Million yen)

Difference
YoY

Factors behind increase/decrease

QoQ

Gunosy Ads*1Gunosy Ads

1,018

-195

-179

l

YoY: The primary reasons for the sales decline were the impactof overall weakness in the advertising market and a decline
in DAUs for NewsPass and au Service Today.

l

ADNW

110

-90

-8

QoQ: Gunosy's DAUs increased YoY due to an improvementin the retention rate, but the previous quarter was in an
advertising demand season and the recovery in profitability*1
Gunosy Adsは「グノシー」、「ニュースパス」、「auサービスToday」おper user was slower than expected, resulting in a decline insales.
よび「LUCRA」の合計
Game8

456

87

10

ADNW
Although impressions temporarily increased QoQ, CPM continued to decline,
resulting in lower sales both YoY and QoQ.

Game8Others

295

152

51

Sales of "game8.jp" remained strong, with sales increasing both YoY andQoQ.

Others

Total

1,880

-46

-126

"colleize", operated by Smarprise, is growing steadily, with sales increasing
both YoY and QoQ.

*1: Sales of Gunosy Ads are the total of "Gunosy", "NewsPass", "au Service Today" and "LUCRA".
（C） Gunosy Inc. All Rights Reserved.

6

Progress Summary of Gunosy's Key KPIs

GunosyDAUs increased both YoY and QoQ as the retention rate maintained its post-improvement level.
On the other hand, S/D declined both YoY and QoQ due to a slower than expected recovery in
profitability.

Gunosy SalesDAUs*1
YoY

106％

Sales/DAUs

QoQ

101％

YoY

93％

89％

QoQ

*2
Retention rate

Cumulative downloads

*3

YoY

106％

YoY

111％

QoQ

102％

QoQ

98％

Product side

Good

Marketing*1: Daily Active Users*2: The app retention rate refers to the percentage of newusers who activate the app after a certain period of time.

*4

AdImp/DAUs

CPM(Not disclosed)(Not disclosed)

Sales side

Improvement
neededSales activities*3: Number of ads served per daily active user
*4: Cost Per Mille（C） Gunosy Inc. All Rights Reserved.

7

Gunosy

Status of S/D Improvement

The number of new deliveries of programmatic advertising increased as a result of increased sales volumes. On theother hand, the number of suspended deals also increased and direct media buying orders remained weak, resulting in aslower than expected recovery in S/D. We will work to improve profitability by creating advertising projects withcommensurate benefits and developing new direct media buying products.

At the time FY2024/5
Q1 plan developed

The planned measures outlined in the Q1 disclosure(released on July 14) implemented and some effects
achieved

Re-establish sales KPIs and monitoring system

Completed

Increased efforts to acquire new ad serving deals Completed

Q1 Review

Despite efforts, S/D did not recover

The overall advertising market outlook may be morechallenging than we anticipated at the beginning of theperiod.
→Although the number of new ad serving deals increased, the numberof suspended ads also increased as a result of increasingly stringent
ad effectiveness requirements. Consequently, the total number of ad
deals remained unchanged QoQ.
→Direct media buying orders declined.

ResultNew adserving
deals

June

July

AugustMeasure 1

Improved ad deal continuity
Improve deal continuity by working to create
deals with commensurate advertising impact,
while strengthening monitoring of the number ofsuspended deals.

Measure 2

Start developing new direct
media buying products
Work with sales partners to market new products（C） Gunosy Inc. All Rights Reserved.

8

Gunosy

Advertising Expenses and Estimated IRR

As retention rates and user acquisition efficiency remained strong, we made an advertising investment in anticipation of a
return to profitability. However, the S/D recovery was delayed and the estimated IRR fell below the investment criteria in
July and August. Given the uncertainty in profitability and the overall advertising market, we intend to raise our IRR
criteria for further investment.
Estimated IRR and advertising expenses

Advertising expenses (actual)
Estimated IRR(Three-year IRR estimated from acquisition costs (CPI) andestimated marginal profit per user)

POINT

Although the product KPIs
maintained their postCriteria

improvement levels, theestimated IRR did notmeet the criteria due tothe delayed recovery of
S/D.
Mar Apr MayJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJun Jul Aug
2022

2023
（C） Gunosy Inc. All Rights Reserved.

9Advertising Investment in Gunosy

GunosyGiven the increased uncertainty around profitability, we intend to raise the IRR criteria and curb advertising investment
in Q2. We will reconsider our policy of expanding sales through advertising investment on the assumption that profitability on
a non-consolidated basis will be achieved in FY2025. The revised policy will be announced at the time of the announcementof Q2 financial results.
Advertising expenses

Profitability improvement continues

Plan

Reduced to around FY2023/5 Q1 level before
expansion of advertising investment

Results

Q3 and beyond
Re-examine the policy of
expanding sales throughDec

FY2023

Jan

Q3

Feb

Mar

Apr

May

Q4

Improved retention rates and successful

Status of media

Measures

Jun

Jul

Aug

FY2024 Q1
Policyadvertising investments increased ROI andAdvertising investments

created an environment for user growth.

were made as product KPIs

Decision made to increase advertising
investment
Increase of approx. 370 million yen for the fullyear (including budget used ahead of schedule)

and acquisition efficiency
remained positive, in
addition to the expected
future improvement in
profitability.

Sep

Oct

Nov

FY2024 Q2

increased advertising
investment(To be determined based on thestatus of profitability recovery)

PolicyRaise IRR
criteria andcurb
investments（C） Gunosy Inc. All Rights Reserved.

10

Game8 (Sales and Operating Profit)

Game8

Sales in the media solutions business, primarily "game8.jp," remained strong, and both sales and profit
continued to increase. In Q2, business is expected to be steady, particularly supported by improved
profitability in the overseas media business.

Sales(Million yen)

500

435
366

441

451
390

375

420

470

457
369

445

456

87

91

Q4

Q1

381

250
151
108

111

127

136
97

109

129

123
28

0

Q1

Q2

Q3

FY2021/3

Q4

Q1

Q2

Q3

Q4

Q1

FY2022/3* Nonconsolidated results (before consolidated adjustment). Results of Smarprise, our subsidiary is not included.
FY2024 Q1 results are for the period from April to June 2023 due to a gap with the parent company's consolidated accounting period.

48

Q2

Q3

FY2023/3

FY2024/3（C） Gunosy Inc. All Rights Reserved.

11

Progress on KPIs

slice

"slice" has been back on the growth track since the completion of the product release that complied with
the Digital Lending Guidelines.

AUM

Focus on growth while controlling risks

AUM (outstanding loan balance)
Producttransition
periodAUM recorded a temporary decline

Organic growth achieved

following the product relaunch in
December.

Then turned to growth
in January.
R

ro
eg

h
wt

a
ph

se

1⽉ 2⽉ 3⽉ 4⽉ 5⽉ 6⽉ 7⽉ 8⽉ 9⽉ 10⽉11⽉12⽉ Jan Feb Mar Apr Jay Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Jay Jun Jul Aug

2021

2022

2023
（C） Gunosy Inc. All Rights Reserved.

12

2 Topics about "slice"slice(1) A full PPI (*) license was acquired in August 2023. Product upgrades have been implemented.
(2) The Reserve Bank of India (RBI) approved the merger of slice with North East Small Finance Bank(NESFB).

1

Acquisition of a full PPI license

A full PPI license acquired in August 2023.
Product upgrades implemented.

regarding merger with
2 Approval of RBI
NESFB
Press release on October 5, 2023

(PPI: Prepaid payment instrument)

Expected to be a driver of AUM growth*PPI: Prepaid Payment Instruments

Medium- to long-term growth potential
significantly expanded（C） Gunosy Inc. All Rights Reserved.

13sliceAcquisition of a Full PPI License

Product has been updated upon acquisition of a full PPI (prepaid payment instrument) license.
The user experience is now that users can deposit money into their slice account at any time and use it
for purchases and money transfers.

Service enhancements with full
PPI licensing

1

2

Charges can now be made at any
time through a bank account.
* can be settled
Charged amounts
via UPI (Unified Payments Interface) or card.

Available for most everyday shopping occasions

3

Users receive rewards and cash
back based on the amount theypay.

Aim to attract and retain more users by providing the same productexperience as before complying with the Digital Lending Guidelines.
*UPI (Unified Payments Interface) : Electronic payment method using QR codes, etc., which is widely used in India.

（C） Gunosy Inc. All Rights Reserved.

14

RBI Approves Merger with NESFB

slice

This merger is an extremely important step in increasing slice's growth potential.
Gunosy will continue to support slice as a corporate shareholder after the merger.

Overview of the merger

NESFB

Small finance bank operating primarily
in northeastern India••

Company nameNorth East Small Finance Bank Ltd.

Head office

1st & 3rd Floor, Fortune Central , Basisthapur, Bye lane 3, Beltola
Guwahati, Assam 781028,India

Representative

Rupali Kalita（Managing Director & CEO）

Business

Banking service

Capital3,468 million Indian rupees (as of June 26, 2023)

Founded in July 2016, with revenues of INR 3,352 million and total
assets of INR 27,104 million in FY2023/3.
Small Finance Banks are a specific type of financial institution createdby the RBI in 2014 with the objective of providing financial services tosmall businesses and others in the underserved and unbanked areas ofIndia in an inclusive manner.

Comment
Director and Chief
Investment Officer (CIO)

Yuki Maniwa

Merger will deliver a morecomprehensive digital financial
experience
1. Prior to this RBI approval, we had acquired a 10% stakein NESFB to strengthen our relationship.
2. RBI approval acquired for the merger.
3. The merger will become effective only after obtaining
the approval of the National Company Law Tribunal(NCLT) and the shareholders as required under the
Indian Companies Act. Upon completion of theseprocesses, the merger will be consummated.
4. The merger will enable "slice" to operate under abanking license, which is expected to significantly
enhance its growth potential in the medium to long term.
(e.g. issuance of credit cards under its own brand,
management of deposit accounts, etc. will become
possible).
5. Gunosy will also acquire shares in the post-merger
company. Dilution of shares as a result of the merger is
expected to be limited.

The digitization of the business will enable the delivery of a high level of "user experience" services tousers across India. It will also enable advanced risk management using data science technology. As aresult, we expect to be able to leverage the strengths of both companies to create an unparalleledposition in India.
（C） Gunosy Inc. All Rights Reserved.

15

(Reference Information) Banking Licenses in India

slice

India has a small number of banks relative to its population. Therefore, holding a banking license isconsidered rare and highly valued. This is also the first time an Indian fintech company hasentered a private sector bank.
*
The number of banks
is small relative to the size of the population.

There are only 33 private sector banks in India with domestic capital.
Comparison of the number of private
sector banks in Japan and India

Japan

543

India

33 banks

*1

banks

Population

POINT 1120
million*1: Number of domestic banks, shinkin banks, and credit unions.
Sources: https://www.fsa.go.jp/menkyo/menkyoj/ginkou.pdf
https://www.nikkin.co.jp/link/number.html*2: Number of Private Sector Banks and Small Finance Banks.
Source: https://m.rbi.org.in/scripts/bs_viewcontent.aspx?Id=3657*2

First Indian fintech tooperate as a private
sector bank

(There are only 137 scheduled
commercial banks in total.)

Population

1.4
billion

POINT 2The merger is expected
to enhance slice's
competitive advantage
in India.
（C） Gunosy Inc. All Rights Reserved.

16

LLM

Progress in New BusinessWe developed the first of our Large Language Models (LLM) solution products to support allorganizations facing the challenges of driving internal IT utilization and digital transformation. “Udekiki”,
a generative AI service focused on business support, will be available in early November.

Generative AI service using ChatGPT, focused on
business support

Use AI as your powerful assistant!
（C） Gunosy Inc. All Rights Reserved.

17

Overview of “Udekiki”

LLM

The user experience we have designed allows users to easily use ChatGPT without requiring any
special knowledge for their business. By closing the productivity gap between those who are skilled inusing generative AI and those who are not, we aim to help more businesses drive their digitaltransformation.
While awareness of ChatGPT is as high as 70%, which

Development Backgroundmeans that many business people are interested in it,

ChatGPT awareness and usage rate by *1
industry

actual usage is still low at around 15%.

(ChatGPT awareness and usage rate by industry (Kanto region, June 3-4, 2023))

Awareness
88.4
70.8

68.8

75.6
66.7

73.0

73.1

75.2

72.7

68.9

(1) The high degree of freedom of ChatGPT makes it difficult to form a concrete pictureof its use in business operations.
(2) In general, it is difficult to understand "how to ask questions to get the desired
results."

59.6
52.2

32.8
15.4

9.5

14.3

13.5

12.7

11.5

Only a few users

15.2 17.5

1.4

who are proficient in using ChatGPT are able to use it for business purposes.

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12.4

19.2

Udekiki will bring the experience of using ChatGPT for
business purposes to all users with ease.

Features of “Udekiki”
1

Easy to use
No need to understand technical prompts, easy-to-use
interface that is intuitive for everyone, even beginners

2

High Security
Operates in an industry-leading security environment,
including database encryption and SAML-certified SSO
support*SSO (Single Sign-On): SSO is a system that allows you to log in to multiple services by simply
authenticating once with your ID and password, without requiring additional authentication.

*1 Source: Compiled by Gunosy based on data from Nomura Research Institute, Ltd. ("ChatGPT Usage Trends in Japan as of （C） Gunosy Inc. All Rights Reserved.
June 2023," published on 06/22/2023) https://www.nri.com/jp/knowledge/report/lst/2023/cc/0622_1

18

LLM

“Udekiki” Expected Future Developments

In Phase 1, we will reach out to a wide range of customers and help them promote business efficiency
through the use of ChatGPT. In Phase 2 and beyond, we will strengthen the link with Gunosy AI, which
we are developing in-house, to provide even more advanced solutions to customer problems.
Development phase of “Udekiki”

Amount of value delivered to the customers

Phase 3
Provide services
to meet the
specific needs ofcustomers who
have adopted ourserviceGunosy AI

Phase 2
Solve more advanced businessproblems by combining with Gunosy AI

Phase 1

Provide services to a wide range of users

Range of customers to be served（C） Gunosy Inc. All Rights Reserved.

19

Financial Results for FY2024/5 Q1（C） Gunosy Inc. All Rights Reserved.

20

FY2024/5 Consolidated Results for Q1
Sales of Gunosy Ads declined YoY and QoQ due to changes in the advertising market, etc. In Q1,
advertising investment was increased by 120 million yen YoY, resulting in a decrease in operating profit.

(Million yen)

QoQ comparison

FY2024/5 Q1

YoY comparison

FY2023/5 Q4

QoQ

FY2023/5 Q1

YoY

1,880

2,006

93.7%

1,927

97.6%

-185

-112

-

-83

-

-

-

-

-

-

Ordinary profit

-525

-472

-

-628

-

Profit attributable toowners of parent

-714

-657

-

384

-

Net sales
Operating profit
Operating margin（C） Gunosy Inc. All Rights Reserved.

21

Gunosy's Key KPIs
The product improvements we have been working on since the previous fiscal year have helped theretention rate to maintain the improved figures and increased significantly YoY. Although we havetaken measures to improve S/D, the recovery has been slower than expected.
Product side

DAUs
106％

YoY

Q3

Q4

Q1

101％

QoQ

Q2

Q3

Q4

Q1

FY2022/5

FY2021/5

Q2

106％

Q3

Q4

FY2021/5

Q1

Q3

FY2022/5

Q1

Q3

FY2024/5

FY2021/5

Product side

102％

QoQ

Q2

Q4

FY2023/5

Cumulative downloads
YoY

Q4

Q1

Q2

93％

YoY

Q3

Q4

FY2023/5

Q4

Q1

89％

QoQ

Q2

Q3

Q4

Q1

FY2022/5

Q2

Q3

Q3

Q4

FY2024/5

FY2021/5

Q1Q1
FY2024/5

Product side

111％

Q1

Q4

FY2023/5

Retention rate
YoY

Q3

Sales side

Sales/DAUs (profitability per user)

98％

QoQ

Q2

Q3

FY2022/5

Q4

Q1

Q2

Q3

FY2023/5

Q4Q1
FY2024/5（C） Gunosy Inc. All Rights Reserved.

22

*

Total Number of Active Users (MAUs)

MAUs increased slightly due to the positive effects of measures to improve the retention rate,
which we have been working on since the previous fiscal year. For NewsPass and au Service Today, we
will conduct promotions in cooperation with KDDI to increase the number of new users, with the aim ofincreasing MAUs.
LUCRA (Service ended in February 2023)
NewsPass + au Service Today
GunosyQ1

Q2

Q3

FY2021/5

Q4

Q1

Q2

Q3

FY2022/5

Q4

Q1

Q2

Q3

FY2023/5*Average for each quarter of MAUs (monthly active users) of "Gunosy", "NewsPass", "au Service Today" and "LUCRA".

Q4

Q1
FY2024/5（C） Gunosy Inc. All Rights Reserved.

23

Breakdown of Net Sales*1
While Game8's sales grew steadily YoY and QoQ, Gunosy Ads' sales declined significantly, resulting ina YoY and QoQ decline in sales for the Group as a whole. We will continue to work on improving the
profitability of Gunosy Ads and aim to improve its performance.

(Million yen)

OthersGame8
ADNW *2
Gunosy Ads

2,400

221
203

366
1,600

800

246

375

371

192

168

262

275

435

441

267

451

254

260

1,267

1,198

1,189

Q1

Q2

Q3

1,526

1,403

153

194

390

420

227

247

1,334

1,352

Q2

Q3

457

257

1,492

295

142

203

369

381

470

445

201

168

140

119

244
295

1,214

1,248

1,209

1,197

Q1

Q2

Q3

Q4

456

110

1,018

0

FY2021/5

Q4Q1

FY2022/5

Q4

FY2023/5

Q1
FY2024/5*1: Sales of Gunosy Ads, ADNW and Game8 are presented on a nonconsolidated basis. Internal trade adjustments are included in Others*2: Sales of Gunosy Ads are the total of “Gunosy”, “NewsPass”, “au Service Today” and “LUCRA” (Service ended in February（C） Gunosy Inc. All Rights Reserved.
2023).

24

Cost Structure
Advertising expenses increased QoQ due to increased investment in Gunosy. Other costs are tightly
controlled with no major changes.

(Million yen)

2,304

2,400

2,135

2,048
1,866

1,600

1,090

810
779
153
94

800

1,974

583
128
278

0

Q1

920

540

370

2,085

515

334

561
348

389

419

330

550

331

639

668

673
Others

301

307

238

297

317

Advertising expenses

36

36

Rent expenses on

575

607

109

114

195

118

114

186

168

181

186

107
146

120
125

116
102

116
87

108
79

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

64

36

39

513

518

515

121

111

115

182

187

Q2

Q3

FY2021/5

580

538

371

535

537

2,080 2,110 2,118 2,066

39

375

152
88

2,010

227
39

318

153
93

2,187 2,176

FY2022/5

197
37

288

282

40

39

629

624

630

603

610

Revenue sharing *land and buildings
Personnel e xpenses
Se rver expe nse s

FY2023/5* “Revenue sharing” included in “Others” in FY2021/5 and earlier, but separated from “Others” from FY2022/5 Q1.
“Live video production expenses” is included in “Others” from FY2022/5 Q1.

Ad network costs

FY2024/5（C） Gunosy Inc. All Rights Reserved.

25

FY2024/5 Outlook（C） Gunosy Inc. All Rights Reserved.

26

FY2024/5 Results Forecast (Consolidated)
The sales progression rate in Q1 was 23.9%. Based on the improved profitability of Gunosy, we haveshifted to a policy of temporarily reducing advertising investment in Q2. We will reconsider our advertising
investment policy from Q3 while reviewing profitability and other KPI trends.
(Million yen)

FY2024/5 full-year
forecast

FY2024/5 Q1

Progression rate

1,880

7,880

23.9%

-185

-500

-

-

-

-

Ordinary profit

-525

-999

-

Profit attributableto owners ofparent-714-1,070-Net sales
Operating profit
Operating margin

As a result of our valuation of Caster Co., Ltd.’s investment securities based on the company's IPO price and otherfactors, a loss on valuation of investment securities of 165 million yen was recorded as an impairment loss.

`（C） Gunosy Inc. All Rights Reserved.

27

Business Overview by Division（C） Gunosy Inc. All Rights Reserved.

28

Media Business

GunosyImprovements have been made to segment users by frequency of use and method of use, and toachieve a proper balance of "information you should know" and "information you want to know" articles
according to the characteristics of each segment. We will continue to improve the accuracy of the article
distribution algorithm and provide even greater value as a service close to users.
Provide value tailored to segments and user characteristics

Mainly applied to the topic page

Provide two elements in a balanced manneraccording to the characteristics of thesegment
Improvement
1

Information“you should know“

Information you “want to know“(Information with high personal value)(Information with high social value)

Should-Know

Want-to-know

Improvement
2

Improve accuracy of "should know" and "want to know"
decision algorithms（C） Gunosy Inc. All Rights Reserved.

29

Media Businessau Service Today

In addition to a campaign to promote the use of au Service Today as a portal application, a joint
promotion with KDDI was conducted. The number of new users increased recently.

Ponta point present campaign

Number of new users

Since Sep. 15

Various measures taken toincrease the number of users

Jun

Jul

Aug

Sep

2023
（C） Gunosy Inc. All Rights Reserved.

30

Ad Network (ADNW)Media Business

While impressions grew QoQ, in line with last year's trend, cost per mille (CPM) remained weak.

Number of Impressions and CPM(Million imp)

60,00045,000¥40

30,00043,32550,98815,0000

imp¥31.33¥29.06¥27.70¥15.14¥12.5946,718¥11.86¥11.48¥11.91¥11.87¥11.14 ¥11.22¥10.8734,543¥7.99 ¥7.25
29,432Q1Q2Q3FY2020/5

Q4Q1

22,489 21,892 22,763 23,165 20,493 21,037 23,941

Q2

Q3

Q4

Q1

FY2021/5* CPM (cost per mille): Price per 1,000 impressions of advertisement

Q2

Q3

FY2022/5

Q4

CPM

¥20

¥6.81 ¥6.58

25,228 23,513 20,915 18,392

Q1

Q2

Q3

FY2023/5

Q4¥5.30
21,249Q1¥0

FY2024/5（C） Gunosy Inc. All Rights Reserved.

31

Game8“colleize”, a Service of Smarprise“colleize", a service provided by Smarprise (a Game8 subsidiary), contributed to the growth of “Other
sales" for the entire Group. New initiatives, such as the provision of original products, are also being
promoted.

“colleize” is an "e-commerce platform" specializing in official merchandiseand officially licensed products.

Steady growth inmembership/GMV since launch inJune 2021 (GMV: Gross merchandise value)“colleize”, a platform that does not relyon specific companies, is increasing
the number of IP and products it offers.
（C） Gunosy Inc. All Rights Reserved.

32

Investment

Investment*1

The overall cumulative investment remains in the range of approximately 5 billion yen. Caster Co., Ltd.
went public on October 4. We view this as a positive event for the company's future growth potential
and intend to continue to hold the stock.
* Investments made since October 2018, when the investment project was launched, are included in the following:

投資割合

主な出資先

Early
FintechEducation

HealthTech

Exit executed

India

Mid-to-lateInvestment asa limitedpartnerApproxCommerce

MaaS

FintechFintechReal estate
tech

FintechAudio
deliveryCommerce

75%

Early
Japan

Exit executed

Mid-to-late

Approx25%

Organic EL

Investment asa limitedpartner*1: Includes balances committed to investments, such as investments as a limited partner.

HR techIPO（C） Gunosy Inc. All Rights Reserved.

33

New Business

YOU IN

Spending per customer is increasing as a result of the expanded product range and price revisions. We
are targeting growth in Q2 and beyond by encouraging shoppers interested in well-being to buy our products
for their own use and by capturing demand during the winter season.

Spending per customer

Product line expansion
Gift box

Growth+49%
Individual package

Q1

Q2

Q3

FY2023/5

Q4Q1
FY2024/5（C） Gunosy Inc. All Rights Reserved.

34

Company Information（C） Gunosy Inc. All Rights Reserved.

35

MISSION

Optimally deliver
information to people
around the world（C） Gunosy Inc. All Rights Reserved.

36

History
November 2021

June 2016

Achieved unicorn status in the
fintech sector by raising
significant funds in its Series B
funding round“NewsPass” released

November 2012

July 2018
Established Gunosy Capitaland started investment
business

Established Gunosy Inc. in
Roppongi, Minato-ku, Tokyo

2012

2015

2016

April 2015
Listed on the Mothers
Section of the Tokyo Stock
Exchange
December 2015
Game8 Inc. became
subsidiary

2017

2018

2019

December 2017

Changed markets from Mothers
Section to First Section of theTokyo Stock Exchange(Currently listed on TSE Prime)

September 2019
Started investment in
GaragePreneurs
Internet Pvt

2021

2022

April 2022
Became an equity
method investee by
dispatching a director
April 2021
Launched "au Service
Today" service（C） Gunosy Inc. All Rights Reserved.

37

Gunosy Group Business Portfolio

Medium- to long-term growth driven by three businesses
12Media business•••

GunosyNewsPass
Au Service Today

Game8 group
•
•

Game8
Smarprise

DATA

•

•
•
•

3

＋

Investment

Newbusinesses

Gunosy Capital

•
•

LLM
YOU INNew

Data accumulated since the inception of the company
Knowledge of algorithms
Media and advertising expertise, etc.

（C） Gunosy Inc. All Rights Reserved.

38

Growth Image

Increase corporate value through growth of existing businesses anddevelopment of new businesses

Aim for group-wide growth with a market
to long-term target

Investment

capitalization of 100 billion yen as a medium-

Game8Media business

Established（C） Gunosy Inc. All Rights Reserved.

39

Reference Materials（C） Gunosy Inc. All Rights Reserved.

40

Overview of Gunosy Inc.
Basic Information
Company name:Gunosy Inc.

Representative:

Shinji Kimura

Representative Director and Chairman,
Officers: Group Chief Executive Officer (CEO),
Shinji Kimura

Yuya Taketani

Representative Director and President,
Yuya Taketani

Established:

November 14, 2012

Director and Chief Investment Officer (CIO),
Yuki Maniwa

Fiscal year end:May

Director, Kentaro Nishio

Capital:Director, Masaaki Nose

Stock Code:4,099 million yen(as of the end of August 2023)
6047 (TSE Prime)

Audit corporation:

Ernst & Young ShinNihon LLC

Director (Outside), Junichi Shiroshita

Number of
employees:249(as of the end of August 2023, on aconsolidated basis)2-24-12 Shibuya, Shibuya-ku, Tokyo

Director (Outside), Hirokazu Mashita

Head office:Business:

Development and operation of information
curation service and other media

Director (Outside), Suguru Tomizuka

Director (Outside), Lei-Isabelle Nakao
Corporate Auditor, Masakazu Ishibashi
Corporate Auditor (Outside), Kenji Shimizu
Corporate Auditor (Outside), Kengo Wada（C） Gunosy Inc. All Rights Reserved.

41

Our Management TeamThe management structure for FY2023/5 is as follows. We are continuing to strengthen our governance,
including the transition from a non-statutory Compensation Committee to a non-statutory Nomination
and Compensation Committee(N&C) in December 2021.

N&C

N&C

Representative
Director andPresident

Representative Chief Director andChairman, Group Chief Executive
Officer (CEO)Shinji
KimuraDirector and Chief
Investment Officer (CIO)

Director

Director

Yuki
ManiwaKentaroNishioMasaakiNose

Yuya
Taketani
N&C

Director (Outside)

SuguruTomizuka

N&C

Director (Outside)

Junichi
Shiroshita

N&C

Director (Outside)

Hirokazu
Mashita

Director (Outside)

Lei-Isabelle
Nakao（C） Gunosy Inc. All Rights Reserved.

42

From “Gunosy Way” to “Gunosy Pride”
The concept of "Gunosy Way", which had been defined as a milestone for Gunosy to follow, wasredesigned as "Gunosy Pride“, which inherits the original thoughts and concepts.

1“Triple win” philosophy
Benefit the customer, the user, and the world. Benefit yourself, others, andyour fellow employees. We will continue to create a cycle of goodness not
only outside the company and society, but within our company as well.

2

Creating opportunities with science
We will use data and technology to accelerate innovation with facts. We will
also use science to solve social issues.

3

Centennial quality
We do not stop working until we feel that this is the best we can do, rather
than thinking that this is good enough. We will face the work in front of us
with sincerity and honesty, seeking quality that will endure for a hundredyears.

4

Respond to adversity in a positive way
There are as many adversities as there are challenges. However, we
believe that it is the adversity that brings us the opportunity for growth. We
will not run away from the obstacles in front of us, but rather we will
aggressively pursue our business in adversity.

（C） Gunosy Inc. All Rights Reserved.

43

Status of the Estimated Value ofthe Investment Portfolio (Disclosed on July 14, 2023)

Investment

Investment
ratio

FY2019/5

FY2020/5

FY2021/5

FY202/5

FY2023/5

0.98

0.99

1.11

5.36

5.16

(Million yen)

26,54625,741*1

Accumulated investment“Accumulated
investment” and“Estimated value + Sale
price”*2

Estimated value + Sale price

253

249

813

808

1,867 2,068

5,140

4,805

Investm
ent

Japan

30

259

770

880

1,090

(accumulat
ed)

India

223

553

1,097

3,924

4,049

Market
value

Japan

30

259

776

1,037

1,357

(accumu
lated)

India

218

547

1,291

24,70325,188*1. Accumulated investment: Calculated in yen at the exchange rate at the time of investment. Includes investments in issues already sold.
*2. Estimated value: Value that we estimated as the price at which shares, etc. would be transferred in an arm's-length transaction, based on the following method. Note that such estimatedvalue is generally not based on the results of a valuation report by an external third party or an audit by an accounting auditor, but is calculated by us at our own discretion.
(1)
(2)
(3)

Issues that raised funds in a recent funding round: The estimated valuation is the valuation at the time of the relevant round, with a 20.7% illiquidity discount applied.
Issues for which an external third-party valuation was previously obtained: The estimated valuation is based on such valuation.
Other issues: Valued at book value at the time of investment. For those acquired in foreign currency, the value is converted at the most recent exchange rate.

（C） Gunosy Inc. All Rights Reserved.

44

Disclaimer

Forward-looking statements contained in these materials are prepared from judgments andassumptions based on information available at the time of preparing the materials, and do notguarantee their accuracy. These materials contain financial data that have not been audited byan independent certified public accountant or an auditing firm.
Please note that actual results may differ materially from the forecasts due to various
uncertainties included in these judgments and assumptions and changes in risk factors and theeconomic environment.

（C） Gunosy Inc. All Rights Reserved.

45

Optimally deliver information to people around the world