FY2024/5 Financial Results
Medium-Term Management Plan
(FY2025/5 – FY2027/5)

株式会社 Gunosy
Gunosy Inc.
TSE
(6047)
東 証Primeプライ
ム （証券コード：6047）

INDEX

1. Financial Highlights

P 03

2. Financial Results for FY2024/5

P 07

3. Business Overview by Division

P 12

4. Medium-term Management Plan (FY2025/5 – FY2027/5)

P 28

5. FY2024/5 Outlook

P 42

6.

Reference Material: Company Profile

P 45

7.

Reference material: slice

P 53（C） Gunosy Inc. All Rights Reserved.

2

Financial Highlights（C） Gunosy Inc. All Rights Reserved.

3

Executive Summary

FY2024/5

Net sales

7,344(full-year)
Operating profit

70

million yen

million yen

GunosyBy company

Net sales
Operating profit

Summary

FY2024/5 Results Forecast(Released in April 2024)

vs. forecast

7,290million yen

YoY

FY2024/5 Results Forecast(Released in April 2024)

vs. forecast-30million yen
Game8

100.7％
91.2％

YoY

-

Others4,474 million yen

2,164 million yen

705 million yen-486 million yen

622 million yen-64 million yen

Consolidated operating profit exceeded forecast and returned
to profitability due to the strong performance of the Game8
business and the stabilization of profitability and cost reduction in
the Media business, which progressed better than forecast..
The merger of slice and NESFB is well underway, and slice’s
profit/loss for the year is also showing steady improvement.
（C） Gunosy Inc. All Rights Reserved.

4

Operating Profit - Difference between Initial Forecast andActual Results
POINT

Operating profit (initial forecast and actual results)
1

Operating profit improved• In Q1, the profitability of Gunosy
Ads declined due to the weaknessof the advertising market.

significantly from the forecast given
at the beginning of the period.

(Million yen)

Operatingprofit (initial
forecast)

Operatingprofit (actual
results)

Improvement

70
55

2

0
1

GunosyImprovement in operating
profit 97
GunosyCost
reduction-500

Gunosyreduction ingross profit Reduction inadvertising-560
expenses

320

337

Game8
Operatingprofit418

OthersGunosy - Improvementin operating profit• In response to the decline inprofitability, we reduced ouradvertising investment in Gunosy,
which resulted in a decrease in
DAUs (daily active users) from theforecast announced at the
beginning of the fiscal year and adecrease in net sales.
• Meanwhile, in addition to theaforementioned reduction inadvertising investment, we havesignificantly curbed costs such ascommunication expenses andpersonnel expenses from the initialplan.
• As a result, operating profit
improved by 97 million yen
compared with the forecast madeat the beginning of the period.

2

Game8 - Improvementin operating profit• In addition to strong sales in thedomestic media business,
profitability in the overseas media
business improved significantly
driven by the weak yen, resulting insales exceeding the initial forecast.
• Operating profit significantly
exceeded the initial forecast due tosuccessful cost control.
（C） Gunosy Inc. All Rights Reserved.

5

Consolidated Operating Profit
In the first half of the year, a consolidated operating loss was recorded due to increased advertising
investments, but the reduction of advertising investments, the recovery of profitability in the Mediabusiness and the strong performance of Game8 in and after Q2 led to a return to operating profitability on
a consolidated basis in Q3. In addition, a significant increase in profits in Q4 led to a return to operating
profitability on a consolidated basis for the full year.
FY2024/5
Q1

Q2

Q3

Operating loss

Q4

Operating profit

Operating profit

183
93

0

△ 20
Factor(s)contributi
ng to
improve
ment

△ 185

❶ Improved profitability of theMedia business❷ Strong Game8 business❸ Reduced advertising investment

Gunosy

-265

-115

-74

-30

Game8

91

111

190

228

Others

-11

-16

-22

-14
（C） Gunosy Inc. All Rights Reserved.

6

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

7

FY2024/5 Consolidated Results for Q4
We achieved a consolidated operating profit for the full year, driven by the continued strong
performance of the Game8 business, a recovery in the profitability of the Media business, as well as
appropriate control of advertising investments. Strong QoQ profit growth was also achieved in Q4 alone.
(Million yen)

QoQ comparison

FY2024/5 Q4

Net sales
Operating profit
OperatingmarginYoY comparison

FY2024/5
Full-year

FY2023/5
Full-year

FY2024/5 Q3

QoQ

1,694

1,920

88.3%

7,344

8,052

91.2%

183

93

196.0%

70

-268

-

10.8%

4.9%

-

1.0%

-

-

-829

-1,705--1,186-1,150-Ordinary profit

1

30

-107

-

Profit attributableto owners of parent

3

-272

104

-

2

YoY

1 Including share of profit/loss of entities accounted for using equity method (on a non-cash basis) of-164million yen
2 Including share of profit/loss of entities accounted for using equity method (on a non-cash basis) of -933million yen
3 Including loss on valuation of investment securities of -215million yen（C） Gunosy Inc. All Rights Reserved.

8

Breakdown of Net Sales*1

Game8 sales increased both YoY and QoQ. Gunosy Ads' sales remained stable despite a reduction inadvertising expenses. As to "Others", the exclusion of Smarprise from the scope of consolidation in Q3
led to a significant decrease in both sales and related costs.
OthersGame8
ADNW
Gunosy Ads*2(Million yen)

2,400

221
203
246

275

375

371

262

153

441
451

366
1,600

192

168

435

267

254

260

800

194

457

390

420

227

247

142

257

203

295

244

369

381

470

445

201

168

140

119

1,267 1,198 1,189

1,526 1,403
1,492
1,334 1,352
1,214 1,248 1,209 1,197

Q1

Q4

280

36

501

572

634

110

88

67

50

1,018

987

999

973

Q1

Q2

Q3

Q4

295

271

456

0

Q2

Q3

FY2021/5

Q1

Q2

Q3

FY2022/5

Q4

Q1

Q2

Q3

FY2023/5

Q4

FY2024/5*1: Sales of Gunosy Ads, ADNW and Game8 are presented on a nonconsolidated basis. Internal trade adjustments are included in Others（C） Gunosy Inc. All Rights Reserved.
*2: Sales of Gunosy Ads are the total of “Gunosy”, “NewsPass”, “au Service Today” and “LUCRA” (Service ended in February2023).

9

Cost Structure
Costs on a consolidated basis decreased as the business focused on overall cost control. Advertisingexpenses decreased QoQ as we continued to control costs in line with our current policy. The exclusionof Smarprise from the scope of consolidation in Q3 led to a significant decrease in “Others”.
(Million yen)

2,304

2,400

2,135

2,048

2,085

2,010

1,974
1,866
540

1,600

2,187 2,176

1,090

810
779

515

920
370

334

537

1,869 1,826

580
561

348

800

153
93

152
88

318
64

375

371

36

39

515

538

389
39

583
535
128
278
0

Q1

513

518

575

550

639

668

673
628

419
330

153
94

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

227
39
607

197
37
629

331

288
40
624

301

282
39
630

307

297

317

36

36
610

Others

455

238
230

603

1,511
613

193
38
601

236

202
37
586

222

149
34
520

121

111

115

109

118

114

114

182

187

195

186

168

181

186

107
146

120
125

116
102

116
87

108
79

112
64

101
48

93
35

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021/5

FY2022/5

FY2023/5

Revenue sharing*

Advertising expenses
Rent expenses on landand buildings
Personnel expenses
Server expenses
Ad network costs

FY2024/5* “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.

（C） Gunosy Inc. All Rights Reserved.

10Equity Method Investment Gains/Losses of slice
The stable organic growth of the business continues with appropriately controlled marketing investments,
resulting in a decrease in the amount of losses. Equity method investment losses are also on a declining
trend.
Equity method investment gains/losses of slice *FY2023/5(Million yen)

Q1

Q2

Q3

FY2024/5
Q4

Q1

Q2

Q3

△ 225

△ 205

Q4

0

△ 218
△ 286
△ 373

△ 300

△ 164

△ 337

△ 549
Product transition
periodDeclining(Sep-Dec 2022)△ 600

Releasenew
product(Dec 2022)* The share of gains (losses) of entities accounted for using the equity method includes various expenses in addition to the gains
and losses from equity-method affiliates such as goodwill amortization.
（C） Gunosy Inc. All Rights Reserved.

11

Business Overview by Division

Media Business（C） Gunosy Inc. All Rights Reserved.

12Media BusinessBusiness Model of Our Media Business

We obtain content from external media (“content partners”) and offer the service to users free of charge.
We provide advertising space to advertisers to serve ads to users, and we receive revenue fromadvertisers.

Provide content

Content partner¥※

Browse content /Create ad space

Revenuesharing

Provide ad
space

Advertiser

Provide content /advertising

¥

User

Pay ad fee

Purchase/use goods/services, etc.
Since the advertising space in NewsPass and au Service Today is provided jointly with KDDI, part of the sales and costs are shared by both companies.
（C） Gunosy Inc. All Rights Reserved.

13

Media Business

Progress Summary of Gunosy's Key KPIs

DAUs remained stable QoQ despite reduction in advertising investment. Sales/DAUs have been stablesince improving in Q2, but declined QoQ in Q4 due to weaker QoQ performance of direct media buying.
In the end, however, the year-end results were in line with our forecast.

Gunosy SalesDAU *1
YoY

94％

Sales/DAU

QoQ

100％

YoY

87％

95％

QoQ

*2
Retention rate

Cumulative downloads
YoY

105％

YoY

93％

QoQ

101％

QoQ

97％

Product side

MaintainMarketing*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.

AdImp/DAU

*3

*4

CPM

(Not disclosed)(Not disclosed)

Sales side

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

14

*Total Number of Active
Users (MAUs)Media BusinessIn Q4, the overall size of the Media business shrank, although Gunosy's MAUs were maintained despite
a reduction in advertising investment.

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

Q4

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

Q1

Q2

Q3

Q4

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

15

Media Business

Gunosy: Advertising Expenses and Estimated IRR

Since November 2023, the IRR has remained well above the criteria due to the control of advertising
investment and improved profitability.
We continued to manage our advertising investments, which remained within our criteria in Q4.
Advertising expenses (actual)
Estimated IRR(Three-year IRR estimated from acquisition costs (CPI)and estimated marginal profit per user)

Criteria

Estimated IRR and advertising expenses

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2022

2023

2024

（C） Gunosy Inc. All Rights Reserved.

16

Business Overview by Division

Game8（C） Gunosy Inc. All Rights Reserved.

17

Business Model of Game8

Game8

Gate8 Inc. is engaged in the business of monetizing through advertising revenue from game walkthroughmedia. The company provides a wide range of marketing solutions by offering a variety of advertisingstrategies, including writing game walkthrough articles for game walkthrough media.

Users

Clients
ProvidearticlesProvide ad
space

1

Media

￥

View articles
Serve
ads
Watch
videos

You
Tube

Fee
Distribute
video
content￥2

Provideservice

SolutionAd
revenue

Business
1

2

Media

Solution• Operates its own game walkthrough site
• Homepage takeover ads on a gamewalkthrough site
• Create articles on game walkthrough• Provide advertising strategies for websites otherthan Game8.jp• Operates the SNS operation on behalf of theclient.

￥Fee

Advertisers

Gamingcompanies

Strength• Operates gaming media with the highest number of pageviews in Japan.
• Manages its own ad monetization team domestically toachieve stable and high eCPM.
• Develops sales activities in the gaming area with a focus onproviding reliable solutions.
（C） Gunosy Inc. All Rights Reserved.

18

Game8 (Sales and Operating Profit)

Game8

As in previous quarters, the overseas media business in particular maintained high profitability driven by
the depreciation of the yen. Sales increased due to a significant rise in page view, resulting in record
sales and operating income. However, the next quarter is expected to see some setbacks due to thecompletion of a round of hit titles in Q4 and the weakening of the domestic advertising market.

Sales(Million yen)

Operating profit

700

634
572
435 441 451
366 375

390

420

470

457

445 456501

369 381

350
191
151
108

111

127

136
97

109

129

123
28

87

91

Q4

Q1

228

111

48

0
Q1

Q2

Q3

FY2021/3

Q4

Q1

Q2

Q3

FY2022/3

Q4

Q1

Q2

Q3

FY2023/3

FY2024/3 Q4 results are for the period from January to March 2024 due to a gap with the parent company's consolidated accounting period.

Q2

Q3

Q4

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

19

Key KPIｓof Game8

Game8

PVs, one of the most important KPIs, remained strong, supported by hit titles.
In terms of RPM, high profitability is maintained, especially in the overseas market due to thedepreciation of the yen.

PVs

RPM

Although there was some volatility
depending on game title sales, pageviews remained strong.

Q1

Q2

Q3

Q4

Maintained high profitability supportedby overseas media due to yen
depreciation.

Q1

FY2024/3•

RPM (Revenue per Mille): Revenue per 1,000 impressions of advertisement

Q2

Q3

Q4

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

20

Game8

Our Commitment to Corporate Branding

Game8 successfully hosted one of the largest real BtoB events in Japan for the gaming industry. This
provided a strong foundation for improving the BtoB solutions developed to date and expanding the BtoB
solution area in the future.

Event Date: 1:00 pm June 5, 2024
Event attendance: Approx. 1,000
Co-hosted with MOTTO Inc.

Expand business into the BtoB
https://game-future-summit.jp/（C） Gunosy Inc. All Rights Reserved.

21

Business Overview by Division

Investment(slice)（C） Gunosy Inc. All Rights Reserved.

22sliceProgress of the Merger Process

The merger process is progressing well with the filing of the application with the NCLT (National
Company Law Tribunal) completed.
As the largest outside shareholder, we may be required to cooperate in various ways under Indian
financial regulations. In order to maximize the potential for future growth, we intend to make the earlycompletion of the merger our top priority as we move forward with the process.
September 2023 March 2024

April 2024

July 2024

l Completel Not completed (in progress)
RBI(Reserve Bank ofIndia)NCLT(National Company
Law Tribunal)

Other regulatory
procedures

lClosingl RBI approvall Submission of application to NCLT
※1
NCLT Approval Processl CCI approvall NCLT approvall FDI regulations※2※1 The NCLT approval process generally takes 6-12 months from application to approval, although the timeline may vary and exceed
this range depending on the individual case
※2 Foreign Direct Investment（C） Gunosy Inc. All Rights Reserved.

23

sliceImprovement of slice’s profit/loss for the YearAs a result of proper risk control through prudent lending after the transition to the new product, the default
risk of AUM as a whole is expected to decrease and the provision ratio is expected to improve. In*1addition, slice’s profit/loss for the year has improved significantly due to stable AUM and cost optimizationachieved through proper risk control, and we aim to return to profitability on a monthly basis by theend of FY2025/5.
Change in AUM mix from former
product to new product and associatedimprovement in reserve ratios

B

Risk control

Payment volume ※2

New
Cost reduction

5⽉

Apr

Mar

Ja n

Feb

Oct

De c

2023

No v

Number of users isincreasing

Sep

Our policy is to ensure AUM stability byfocusing on controlling the default rate.
We also aim to optimize costs.

Jul

Looking at the composition of AUM, last year it
included former products with high reserve
ratios, but since April 2024 it consists only of
new products with low reserve ratios.
Consequently, the overall default risk of AUM
has been reduced and the cost of reserves
has also been significantly reduced inaccounting terms.

CAug

product

There is potential for AUM growthdepending on future actions, suchas lending to users acquired
through the payment.

Junproduct

Improved

Ensure AUM stability

Point

Apr

Older

A

May

Manage according
to strict lending
criteria

Establishing operational policies

2024

Aim to become profitable on a monthly basis by the end of FY2025/5.
*1slice’s profit/loss for the year: Profit/loss for the year as per local Indian GAAP, excluding goodwill amortization and non-cash ESOP expenses included in the equity
method accounting.
*2
Payment volume: Transaction volume paid using the slice account described on page 54.
（C） Gunosy Inc. All Rights Reserved.

24sliceDecrease in Losses from Equity Method
Investments

We expect a significant reduction in equity losses in FY2025/5, driven by stable organic business growth*with controlled marketing investments and slice’s improved profit/loss
for the year through appropriate
control of default rates.
Profit / loss on equity method investment in slice

FY2023/5

Marketinginvestments
focused on rapid
growthPresent

FY2024/5

FY2025/5

Transition to new
product

Improvement inslice’s profit/loss
for the year

Shift to organic growth0slice’s
loss forthe yearslice’s
loss forthe year

Goodwill
amortization,
ESOP
expenses,
etc.

Goodwill
amortization,
ESOP
expenses,
etc.

-933

Goodwill
amortization,
ESOP
expenses,
etc.

POINT
Substantial
improvement inslice’s profit/loss
for the year
We expect slice’s loss
for the year to besignificantly reduced in
FY2025/5-1,428* slice’s profit/loss for the year: Profit/loss for the year as per local Indian GAAP, excluding goodwill amortization and non-cash ESOP expenses
included in the equity method accounting.
（C） Gunosy Inc. All Rights Reserved.

25sliceFuture Policy

Until the completion of the merger, we aim to become profitable in the "slice" business and maintain ahealthy financial position, while continuing to steadily increase AUM through organic growth. After themerger with NESFB, we aim to further accelerate growth by providing customers with a comprehensive
digital financial experience and enhancing the existing banking business model.

Prior to merger*
Our goal is to maintaina sound financial position and return thebusiness to profitability through an exclusively organic approach, while

maintaining stable AUM growth, controlling default risk, and reducing costs.

After merger
We aim to further accelerate our growth by leveraging technology
to offer a broad range of financial products, improving banking
operations and reducing funding costs.
* The financial position is solid, with an equity ratio of over 50% as of March 31, 2023. See page 59 for details.
（C） Gunosy Inc. All Rights Reserved.

26

AUM

slice

The customer base was significantly expanded through marketing investments until the first half of 2022.
Since the launch of the new product in December 2023, AUM has remained stable, supported byeffective management of the burn rate, which was achieved by acquiring customers through organic
growth. Adequate control of the default rate also contributed to the stability of AUM.

Response to
guidelines（ 22/9-12 ）Rapid growth through marketing investments based onabundant funds raised

Stable growth primarily through organic
approaches

AUM (total outstanding
loan balance)

Acquire full PPI
licenseLaunch new
product

2021

2022

May

Apr

Mar

Jan

Feb

Nov

Dec

Oct

Sep

Jul

2023

Aug

Jun

Apr

May

Feb

Mar

Jan

Dec

Oct

Nov

Sep

Aug

Jul

Jun

Apr

May

Feb

Mar

Jan

Dec

Oct

Stablegrowthmainlythroughorganic
approaches

Nov

Sep

Aug

Jul

Jun

Apr

May

Feb

Mar

Rapid
growththroughmarketinginvestmen
ts2024（C） Gunosy Inc. All Rights Reserved.

27

Medium-term Management Plan
(FY2025/5 ‒ FY2027/5)（C） Gunosy Inc. All Rights Reserved.

28

Current Business Portfolio Assessment
In the existing business, controlling advertising investments has improved the business status to the point
where ROIC can be maintained at around 12-15%. Additionally, we have cash and deposits totaling 2.5-3.0
billion yen available for investment. In the investment business, approximately 5 billion yen has been
invested, and the investment portfolio is generally in good shape. Furthermore, a high IRR is expected
through slice.
Evaluation
indicator

Category / Amount
Capital invested inexisting businesses

11.3 billion
yen

Business

B/S

ROIC /Profit
growth rate
Capitalmanagement
focused on capitalefficiency and profit
growthCash and deposits
available forinvestment

2.5 to 3 billionyen

B/S *1(net of current
liabilities)

Investment

10 billion
yen

2 to 2.5 billion
yen

Financial assessment

In the existing business (Media business and Game8), controlling advertising
investments has improved the business status to the point where ROIC canbe maintained at around*312-15% (based on FY2025/5 plan). In the Mediabusiness, we maintained a relatively high level of cash for stabilization in adifficult market environment, with direct media buying down year-on-year.
However, profits improved as a result of managing advertising investments
within the IRR threshold and cost reductions. Game8's business remains
strong domestically and is expected to grow internationally.
In the Media business, cash and deposits available for investment haveincreased to 2.5-3.0 billion yen due to the change in our advertising
investment policy. We will continue to seek promising internal and external
investment opportunities, including M&A. We will select the most appropriate
evaluation indicator depending on the type of investment. For capital efficiency,
we plan to use ROIC and EBITDA after tax/invested capital, and for profit
growth, we plan to use operating income growth rate and EBITDA growth rate,
etc.

Capital for

IRR
Comprehensiv
e evaluation
based on IRR
and otherindicators

investment business*2

Approximately

5 billion yen

The portfolio of investee companies is generally in good shape due toselective investment decisions. In particular, slice has strong upside
potential to become a leading bank in India following its merger with abank, and we expect a high return on capital (IRR) driven by further
growth acceleration.

*1 Current liabilities have been deducted from current assets to be consistent with the working capital concept. Capital invested in existing businesses was estimated by adding the fixed assets and cash
and deposits of the business to the respective working capital.
*2 ROIC: Calculated by dividing the estimated after-tax operating profit, which is obtained by multiplying the expected operating profit of 450 million yen for FY2025 by (1 - effective tax rate of 30.62%), by
the investment capital of existing businesses (2 to 2.5 billion yen).
*3 Includes the balance of investment securities on the consolidated B/S, in addition to cash and deposits required to pay limited partner commitments and the cash and deposits required to operate theinvestment business.

（C） Gunosy Inc. All Rights Reserved.

29

Medium-Term Management Strategy
Business

1

Business

2

For existing businesses (our media business and Game8), we are aiming forsolid business growth by strengthening cooperation with KDDI and expanding
Game8's international sales on the assumption that the media business will
become profitable.
As for cash and deposits available for investment, we are prioritizing investment
to strengthen operating income/EBITDA over the medium to long term.
Specifically, investments in new businesses (Store & Commerce business and
LLM/DX businesses) and M&A are expected to be made to the extent that profit
growth can be maintained on a consolidated basis.

Investment

3

In our Investment business, we will focus on asset management of slice while
taking into account the risk management of our consolidated B/S. We will
support slice to achieve high growth, aiming to become a leading bank in India
and achieve a high return on capital (IRR).
（C） Gunosy Inc. All Rights Reserved.

30

Medium-Term Financial Goals: As of FY2027/5

As of FY2027/5
Business

Operating

Investment

ROIC

*

profit/EBITDA(on existing business capital)

900million yen

15% and over

IRR

30%

* Cash and deposits available for investment are comprehensively evaluated according to the intended use of the funds, using
metrics such as EBITDA after tax/invested capital.

（C） Gunosy Inc. All Rights Reserved.

31

Medium- Term Expansion of Balance Sheet
To increase shareholder value over the medium to long term, we will focus on achieving sufficient capitalefficiency in both our investments and our businesses.
Business

Image of expansion of B/S

Capital invested inexisting businesses

Capital invested inexisting businesses

ROIC: 15%

2 to 2.5 billion yen• In existing businesses, we will
steadily generate cash bypromoting businesses with atarget ROIC of 15% or more.
• Cash and deposits available forinvestment will be allocated topromising internal and external
investment opportunities,
including M&A, to enhance thecapital efficiency of thecompany as a whole.

Cash and deposits

available for investment

2.5 to 3 billion yen
Capital for investment
business

Capital for

IRR: 30%

investment businessApprox. 5 billion yen

As of the end of FY2024/5

FY2027/5

Investment• On the investment side, slice's
merger with a bank (NESFB) is
expected to provide significant
upside to become leading bankin India. Accordingly, we expect
significant growth in terms ofmarket value.

（C） Gunosy Inc. All Rights Reserved.

32

Mid-Term Plan – Operating Profit/EBITDA (Consolidated)
We aim to achieve stable profit growth by improving the profitability of existing businesses and expanding
our operations, while making certain investments in new businesses.
Operating profit/EBITDA (consolidated) Upward momentum driven by
new business growth andOperating profit/EBITDA (consolidated)
effective use of available
Amount of investment in new business expected to cash and deposits(Million yen)
Investment in new businesses

contribute to upward momentum

FY2025/5
We plan to achieve an operating profit
on a consolidated and nonconsolidated basis through Gunosy's
return to profitability and Game8's
overseas business growth, in addition
to investing 200-250 million yen in
new businesses (SC business and
LLM/DX domain).

FY2026/5

Investment in
new businessWe expect some profit growth inexisting businesses, with Game8's
overseas business being the growth
driver. We expect the deficit in new
businesses to be reduced by revenue
growth and profits to increase yearon-year.

Investment in
new business

200-250900
450
0FY2025/5

FY2026/5

FY2027/5

FY2027/5
We assume growth in existing
businesses, driven by Game8's
international business following
FY2026.We assume upward
momentum through improved
profitability from the implementation of
LLM in the Media business, profit
contribution from new businesses
mainly in the SC business, andefficient use of cash and deposits
available for investment.
（C） Gunosy Inc. All Rights Reserved.

33

Two New Businesses with Upside Potential

Two newbusinesses withupside potential

We aim to create new businesses through two approaches, including the store and commerce business("SC business"), which will be developed as an extension/enhancement of the existing business value
chain, and business development in the LLM/DX domain which utilizes Gunosy's advanced technology.

Store and Commerce
コンセプトbusiness(Game8)
強いメディアパワーを活⽤し、バリューチェーンを伸ばして強化する形での新規事業
Game
walkthroughsite

Commercebusiness

プロモー プロモーWe aim to improve profitability byション
ション
extendingthe value
chain ゲーム攻of our
ゲーム攻
ゲーム攻
略サイト
略サイト
略サイト
existing
businesses,
for example
byoffering a shopping experiencethrough our game walkthrough site.

LLM/DX domain（Gunosy）

Gunosyのテクノロジー⼒を活かし、LLMを活⽤した社内業務課題解決のたGeneralSpecialized
めのDXから新規事業を⽣
purpose use
areas
み出していくWe will leverage Gunosy's technology
capabilities and create new businessfrom DX used to solve our internal
problems and improve productivity
Gunosy：LLM事業
with LLM.

（C） Gunosy Inc. All Rights Reserved.

34

Game8

New Business: SC BusinessWe plan to leverage the media power of Game8 to launch a business model that allows users topurchase games and bill smartphones from our own media, game guide and walkthrough website.

Game walkthrough media and solutions
business

New businessStore and commerce

Operate one of the largest game walkthrough media in Japan Plan to launch a business model that allows users to purchasegames and pay for smartphones through Game8's media
Offer a wide range of game-related solutions(game walkthrough sites, etc.).

Game8.jp

Media owned by Game8
Payment
services
operated by
Game8Stores operated
by Game8

Link

Revenue model
Customer baseMarket environment

Advertising revenue

Payment fee

Up to approx. 500 million PV / monthWith the passage of the proposed amendment to the law regarding* the scope of service offerings is expected to expand.
smartphone payments,* Bill passed regarding the Smartphone Software Competition Promotion Act
https://www.jftc.go.jp/houdou/pressrelease/2024/jun/240612_digitaloffice.html（C） Gunosy Inc. All Rights Reserved.

35

Game8

New Business: Market Expansion through SC
Business

By launching the SC business as a new venture, we aim to expand our business into new and larger
markets.

Value chain

Counterpart

Developgames

Publisher(Game companies)

Market size

Develop games

FutureDistribute
games
Sell games

Deliveryplatform/Payment
processing(App Store, Google
Play)

SC business inJapan

2 trillion yen*2or moreEnter ahuge
marketAiming toexpandbusinessoverseas in the
futureGame walkthroughmedia in JapanCS
Customer success

End users(Game users)

6-8 billion yen*1

Present*1

Estimates based on sales and market shares of Game8 and its competitors.
*2
Famitsu Game White Paper 2023
（C） Gunosy Inc. All Rights Reserved.

36

Gunosy

New Businesses: LLM / Digital Transformation

In FY2024, we released Udekiki, a general-purpose business efficiency solution, as a product tomeet corporate demand for the use of generative AI. From FY2025, in line with the evolution ofgenerative AI and changes in the competitive environment, we will focus on our own internal digitaltransformation and aim to launch new businesses.

Operations

FY2024
policyCovers all aspects of thebusiness, includingsummarizing, editing, etc.

For all types of jobs
and operations
Udekiki was released as a general
purpose LLM product that improves theefficiency of the entire operations.

Specialized for specificoperations
2025
andbeyondHR

IR

Ad
reviewInformation
system

We utilize LLM to enhance our digitaltransformation by applying it toadvertisement review, onboarding andoffboarding management, contract
signing, system account management,
and IR tasks, etc. We aim to launch new
businesses in the future.

（C） Gunosy Inc. All Rights Reserved.

37

Medium-Term Targets for Market Capitalization
We will continue to work toward achieving a market capitalization of 100 billion yen and increasing value
from both the business and investment sides.

Business

Investment

Investment

On the business side, in addition to the growth of existing
businesses, we will increase EBITDA through investment in new
businesses and M&A on the basis of profit growth. This will enableprofits to exceed 1 billion yen and achieve a high growth rate,
which will contribute to an increase in the share price.

On the investment side, if slice's post-merger growth strategy is
successful, we can expect a large contribution to market
capitalization in the medium to long term.
Game8Media business

Established（C） Gunosy Inc. All Rights Reserved.

38

New Management TeamThe management structure for FY2023/5 is as follows.

Representative Chief Director andChairman, Group Chief Executive
Officer (CEO)Shinji
KimuraRepresentative
Director andPresident

KentaroNishioNew

New

Director and Chief
Operating Officer (COO)

Director and Chief
Financial Officer (CFO)

Shunsuke
Sawamura

Tatsuyuki
Iwase

New

Director (Outside)

SuguruTomizuka

Director (Outside)

Junichi
Shiroshita

Director (Outside)

AkihitoMoriyaDirector

Masaaki
Nose
New

Director (Outside)

Hitomi Iba（C） Gunosy Inc. All Rights Reserved.

39

Proposal for the Election of New Directors

Director and Chief Operating
Officer (to be appointed)

Director and Chief Financial
Officer (to be appointed)

A graduate of the School of Business
Administration, Kwansei Gakuin University, hestarted his career at Recruit HD and joined
Game8 Inc. in September 2018. After serving as
COO and Director and COO, he assumed theposition of President and CEO of Game8 Inc. inJune 2022. In December 2023, he joined Gunosy
Inc. as Corporate Officer and COO.

He graduated from the Faculty of Business andCommerce, Keio University. He joined Gunosy
Inc. after working at Bank of Tokyo-Mitsubishi
UFJ (currently MUFG Bank), Deloitte Tohmatsu
Consulting LLC. and PricewaterhouseCoopers
Arata LLC. In June 2021, he was appointed
Corporate Officer, Chief of Corporate
Departments. In August 2022, he assumed theposition of CFO.

Shunsuke Sawamura

Former position

New position

Tatsuyuki Iwase

Former position

Director and Chief
Operating Officer

New position
Director and Chief
Financial Officer

Background

Background

1. Since joining the Gunosy Group, Sawamura has led the growth of
Game8 as COO and, since June 2022, as Representative Director,
President and CEO of Game8, together with Kentaro Nishio(Representative Director and President).

1. In August 2022, the position of Chief Investment Officer was newly
created to strengthen external investment, and Yuki Maniwa (then
CFO) assumed that position. Tatsuyuki Iwase took over the CFO
position to play a defensive role in management, and establisheda structure capable of balancing bold decision-making withappropriate governance.

2. From November 2023, he has also been responsible for the Mediabusiness as Group Corporate Officer (Group COO). With his
appointment as Director, he will lead the Media business andGame8's further growth to achieve the new medium-term
management plan.

2. As Gunosy began working on a new medium-term management
plan, Iwase became Director in charge of Gunosy's finances,
allowing Maniwa to further focus on slice asset management andaggressive corporate value enhancement through M&A, which are
key pillars of the plan. He will build a structure allowing for bolder
execution of the strategy.

（C） Gunosy Inc. All Rights Reserved.

40

Corporate Officers of the Group
Yuki Maniwa, currently a director, will serve as Chief Investment Officer (CIO) and aggressively promote
corporate value enhancement through slice asset management and M&A, which are the key pillarsof the new medium-term management plan. Toyohiro Shibukawa will continue to lead the technology area.
He will be responsible for improving productivity by promoting the company's internal digitaltransformation while launching successful internal projects as new businesses for externalcustomers.
Corporate Officer of the Group and Chief Investment Officer (CIO)

Yuki Maniwa
Graduated from the Faculty of Engineering, The University of Tokyo.
Joined Goldman Sachs Japan in 2005. Joined Coubic Inc. and then
Gunosy Inc. in Oct. 2018 and became Director of Gunosy Capital Inc.
Became Director and CFO in August 2019. He assumed the position of
Director and Chief Investment Officer in August 2022.
Corporate Officer of the Group (Head of Technology Division)

Toyohiro Shibukawa
He started his career as an engineer and became CTO of Genequest Inc.
before joining RPA Holdings Inc. as CXO. He was also involved inorganizational design, new business launches and DX promotion atseveral other companies before joining Gunosy Inc. as Corporate Officer
in April 2022. He assumed the position of Group Corporate Officer (Headof Technology Division) in December 2023.

（C） Gunosy Inc. All Rights Reserved.

41

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

42

FY 2025/5 Full-Year Outlook (Consolidated)
Although net sales are expected to decrease YoY due to the sale of a sub-subsidiary and the withdrawal of
ADNW, operating profit is expected to increase significantly. Profit is expected to rise significantly YoY
due to the improvement in the share of loss from slice, an equity method investee.

(Million yen)

FY2024/5 full-year(result)

FY2025/5 full-year(plan)

7,344

6,300

85.8%

70

450

635.3%

Operating margin

1.0%

7.1%

-

Ordinary profit

-829

-101

-

-1,186-308-

Net sales
Operating profit

Profit attributable toowners of parent

YoY（C） Gunosy Inc. All Rights Reserved.

43

Sales Increase / Decrease

Game8's sales are expected to increase significantly, with overseas business being the growth driver.
On the other hand, overall sales are expected to decline year on year due to business portfolio restructuring,
including the withdrawal from the ADNW and YOU IN businesses and the sale of a sub-subsidiary.
Details of sales increase/decrease

FY2025/5
full year
forecast*1

Gunosy Ads

ADNW(Million yen)

Difference
YoY

Factors behind increase/decrease%

Gunosy Ads

3,678

-312

92.2%

l

7

-312

2.4％

l

In FY2025, DAUs are expected to remain at the same level as
the lower DAUs triggered by the reduction of advertisingexpenses during FY2024. Therefore, sales are expected
decline YoY.
NewsPass sales are expected to decline YoY as DAUs are
expected to decline.
Game8

Game8

Others

2,587

26

422

-842

119.5%

3%l

Due to the continued depreciation of the yen, sales arelexpected to increase in FY2025 as the increase in eCPM ofoverseas businesses will contribute to full-year results.
Sales from new businesses are also expected to increase tosome
ADNWextent.

The exit from the business at the end of June 2024 is expected
to result in a significant decrease in revenues.
Others

Total

6,300

-1,044

85.8%

Revenues are expected to decline due to the sale of Smarprisein February 2024 and the exit of the YOU IN.

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

44

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

45

MISSION

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

46

沿⾰November 2021
Achieved unicorn status in the
fintech sector by raising
significant funds in its Series B
funding round

June 2016“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

2021

2022

April 2024
Became an equity
method investment(Currently listed on TSE Prime)

September 2019
Started investment in
GaragePreneurs
Internet Pvt（C） Gunosy Inc. All Rights Reserved.

47

Gunosy Group Business Portfolio

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

GunosyNewsPass
Au Service Today

Game8 group
•

Game8

DATA

•

•
•
•

3

＋

Investment

Newbusinesses

Gunosy Capital•

LLM

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

（C） Gunosy Inc. All Rights Reserved.

48

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-Game
8Media business

Established（C） Gunosy Inc. All Rights Reserved.

49

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,
Kentaro Nishio

Established:

November 14, 2012

Director and Chief Investment Officer (CIO),
Yuki Maniwa

Fiscal year end:May

Director, Yuya Taketani

Capital:Director, Masaaki Nose

Stock Code:4,099 million yen (as of the end of May
2024)
6047 (TSE Prime)

Audit corporation:

Ernst & Young ShinNihon LLC

Director (Outside), Junichi Shiroshita

Number of
employees:

206(as of the end of May 2024, 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.

50

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.

51

Sustainability Initiatives

1

Provide information in a way that is socially beneficial as a media
outlet (eliminate echo chambers and filter bubbles, provide a
quality game walkthrough wiki, etc.)2

Ad review initiatives to provide a safe advertising experience

3

Encourage diverse work styles that combine in-office and remote
work options

4

Develop human resources with digital transformation expertise bypromoting digital transformation within the company

5

Strengthen appropriate governance through the work of theNomination and Compensation Committee and evaluation of theeffectiveness of the Board of Directors（C） Gunosy Inc. All Rights Reserved.

52slice（C） Gunosy Inc. All Rights Reserved.

53

sliceslice inc. Business Description"slice" is India's leading fintech company providing payment services. It offers intuitive and easy digital
payments and is highly supported by Millennials and Gen Z, the largest segment of the population. With
more than 15 million users, slice is the market leader and growing its business.

Service overview

slice account• Add money to your slice account and pay by card or UPI• Get instant and valuable rewards on all transactions• Pay bills, set up subscriptions and view details of yourspending

slice borrow• Complete the application process online and the loan will beprocessed• No interest if repaid within one month• Borrow up to 1 million rupees (approximately 1.8 million yen),
repayable in 36 months• Flexible repayment options. Repay early, which can help you saveinterest（C） Gunosy Inc. All Rights Reserved.

54

Company History and CEO

slice

Founded in 2015, “slice” expanded its digital payments business by focusing on BNPL (Buy Now Pay
Later), which was not widely used in India at the time. Since 2019, we have invested a cumulative total ofmore than 3 billion yen in slice. In April 2022, it became our equity affiliate.

2015 Jun

GaragePreneurs Internet Pvt Ltd., which
operates "slice" established2019 Sept

Initial investment

2020 Jun

Second investment

2021 Jun

Third investment

2022 Feb

Fourth investment

About slice

Transforming the financial experiencefor billions of Indians
CEO

Rajan Bajaj

Apr

Became an equity method investee of Gunosy

Sep

Digital Lending Guidelines issued by RBI

Dec

New products released in compliancewith Digital Lending Guidelines*1(December 1-)

2023 Sep

RBI approval obtained for merger withNESFB

2024 Mar

CCI approval obtained for merger with
NESFB

Before founding slice, Rajan launched Mesh, a furniture startup that allowed
customers to rent items for a small monthly fee and buy them whenever they wished.
Later, he joined the product team at Flipkart, the Indian e-commerce giant now owned
by Walmart, where he helped launch the Marketplace, the company's fastest-growing
major business at the time. Through these experiences, Rajan came to understandthe importance of credit cards as a financial tool, which led him to found "slice" to help
highly motivated young people like himself.
An alumnus of IIT Kharagpur, Rajan was named to the Forbes Asia 30 under 30 list
for 2021 and the Forbes India 30 under 30 list for 2022.

*1: For more information on regulations governing personal credit, see
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/GUIDELINESDIGITALLENDINGD5C35A71D8124A0E92AEB940A7D25BB3.PDF（C） Gunosy Inc. All Rights Reserved.

55

slice Business Environment

slice

In India, credit card penetration is low compared to other countries, leaving significant room formarket growth.

Digital payment transactions
volume in India

Credit card penetration

Digital consumer lending

Number of digital
payments growing

Credit card penetrationis only around 6% ofTotal digital consumer
lending expected to

rapidly

the population*1

triple by 2030

1,346(100 million payments)

USD 720 billion

CAGR
45%

CAGR

22%
Penetration

6%

207

2017

2018

2019

2020

2021

Over

80%

USD 190 billion

2022

2022

Source: The Press Information Bureau of India

Penetration

Source: Mynavi and GAO

2030

Source: nc42

*1：Total Population of India in 2022: Ministry of Foreign Affairs
Number of credit cards issued: Statistical figures released by Reserve Bank of India in December
Number of credit cards issued (81,186,874) / Total population of India (1,417.17 million)（C） Gunosy Inc. All Rights Reserved.

56

s l iビジネス
ce

slice’s Strengths”slice” boasts a strong brand image that is highly supported by the Millennial Generation Z, thevolume segment of the population. Low default rate is achieved through its unique credit expertise.

1

Appeal to the younger generation, the volume segment of the
population, with the strength of its brand through its unique andsuperior products.

2

Extend credit with low default rates to those who have been
unable to obtain credit cards in the past through its uniquecredit underwriting expertise.

3

A management team that includes professionals who have held
key positions at major global companies and are capable ofdelivering high performance on both offense and defense.

（C） Gunosy Inc. All Rights Reserved.

57

slice P&L: Sales and Profit /Loss before Income Taxes

slice(Million yen)

15,273

Sales
Profit (loss) before income taxes

FY2023/3 highlights

Sales
CAGR

211%
FY2019/3 – FY2023/3

162
▲ 174

715
▲ 17

FY2020/3

Million yen

YoY

296％

Profit (loss) before income taxes

1,200
▲ 148

Gunosy made an
initial investment
in Sep. 2019
FY2019/3

5,155

15,273-7,123

Million yen

YoY

ー％

▲ 4,392▲ 7,123
FY2021/3

FY2022/3

FY2023/3

CAGR (FY2019/3 – FY2023/3)

211%

For simplicity, exchange rates as of November 30, 2023 are applied across the board.
Source: https://www.mca.gov.in/mcafoportal/getCertifiedCopies.do https://www.sliceit.com/corporate-governance/（C） Gunosy Inc. All Rights Reserved.

58

sliceslice B/S (As of the End of FY2023/3)

Total assets as of March 31, 2023 were 33.9 billion yen. The company is in sound financial condition, withan equity ratio of more than 50%.

As of March 31, 2023 (Million yen)
Current asset

30,448

Liabilities

16,728
Total assets: 33.9 billion yen
Equity ratio: Over 50%
Net assets

17,172
Non-current assets

3,453

Total assets: 33,901
For simplicity, exchange rates as of November 30, 2023 are applied across the board.
Source: https://www.mca.gov.in/mcafoportal/getCertifiedCopies.do https://www.sliceit.com/corporate-governance/（C） Gunosy Inc. All Rights Reserved.

59

Overview of Merging with slice

sliceThis 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
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.
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.

60