FY2020/5 Financial Results for Q2

Gunosy Inc.
First Section of The Tokyo Stock Exchange(Stock Code: 6047)
January 14, 2020

INDEX

1

Financial Results for FY2020/5 Q2

P 32

FY2020/5 Outlook

P 12

3

Business Overview by Division

P 14

4

Growth strategy of Gunosy Tech Lab

P 25

Appendix

5

Reference Materials: Overview of Gunosy Inc.

（C） Gunosy Inc. All Rights Reserved.

P 32

1

Section 1

Financial Results for FY2020/5 Q2（C） Gunosy Inc. All Rights Reserved.

Highlight 1

1

Summary of FY2020/5 (First Half)

Consolidated net sales and operating income for the first half were 7,580 million yen
and 156 million yen, respectively, which were in line with earnings forecast.
(Revised forecast announced in October 2019.

2

3

Advertising expenses in the first half were 1.74 billion yen, again reached thehighest investment level ever. (1.03 billion yen in the same term last year.)In our three major media, the number of MAU marked stable growth and thequarterly ADNW sales achieved new highs.

4

Our overriding priority is to solidify the revenue base in line with MAU growth.

5

Gunosy Tech Lab : Joint projects launched with leading industry platformers.

Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

4

Highlight 2Strategic Investment Results andChallenges in the Second Half

As a result of strategic investments, the user base showed re-growth. In the second half of FY2020/5,
focusing on “recovery of ad unit price (eCPM*)”, we aim to achieve top-line growth by solidifying therevenue base through expanding advertisers.
Number of Impressions and eCPM of Gunosy
As a result of aggressive investment, the number ofimpressions achieved greater regrowth than
expected. As a result, eCPM* temporarily dropped.

Explanation

Key indicators in our earnings structure

Numger of impressions
300

eCPM

10,000POINT

Financial
data

Sales

7, 500200
5, 000

1

Users
100
2, 500

0

KPI

MAU/
DAU

0

H2
F2018/5

H1

H2
FY2019/5

H1

No. ofimp

AdvertiserseCPM

No. ofadvertisers

1

Result: Good

Through aggressive investment,
MAU, DAU and the number ofimpressions marked substantial
growth.

2

Result: Lower
than expected

Efforts required to solidify therevenue base through expanding
advertisers

FY2020/5

2* eCPM (effective cost per mille): the CPM value calculated by converting CPC (cost per click) into CPM.

Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

5

Highlight 3

For Recovery of eCPM
Basic policy for recovering eCPM

At the current level of MAU, conventional measures (further cultivation of existing customers witha focus on operating efficiency) are not enough.
By activating the bidding environment through acquisition of new and dormant customers, wewill achieve a recovery in eCPM (ad unit prices).
Past and future strategy
Future strategy

Past strategy
Prioritize improving sales
achievement rate ofadvertisers who bring abouthigh operational effects on
Gunosy media

While achieving the sales targets ofexisting customers,
focus on acquiring new (dormant)
advertisers and activate the bidding
environment

ExpandSales
targetAdvertisers with highoperational effects on
Gunosy media
Section 1

Measures to takeNew
customerSales
target1

Invest in creating a system that does not misspromising customers.

2

Dormant
customer

Existing customers

New
customer（C） Gunosy Inc. All Rights Reserved.

Enhance advertising technology
Full application of an automatic bidding function"UOP" developed by Gunosy. Started working on
upgrading functions to improve the operational
effectiveness of new (dormant) customers.

3
Dormant
customerStrengthen customer development
by MA (Marketing Automation)

Focus on expanding sales of new
products
Present proposals to new (dormant) customers
making use of new products such as video ads andresearch tool

PAGE |

6

Highlight 4

Changes in Operating Income Since
Strategic Investment

In the second half of FY2020/5, we will enhance monetization by expanding advertisers and control
the level of investment in advertising and expect operating income to meet our earnings
forecasts.
Implemented "Investment for regrowth"
Announced in "FY2019/5 Financial Results for Q3"

Present:"FY2020/5 Financial Results for Q2"

FY2019/5
Q1

Q2

Before strategic investment

FY2020/5
Q3

Q4

Q1

Q2

Expansion of MAU and DAU through strategic
investment

OperatingincomeQ3

Q4

Gradually control
advertising costs

POINT
Expect to achieve earnings
forecasts through thefollowing two measures(Million yen)

1,524(1) Expand advertisers(2) Control investment level

844

778

156
H1

H2

H1

H2
(Forecast)Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

7

FY2020/5 Consolidated Results for Q2
Results in the first half were in line with earnings forecasts announced in October 2019. Despite
weakness of our subsidiaries, non-consolidated business performance exceeded expectations
resulting in YonY sales growth.
(Million yen)

QuarterFirst half
FY2019/5 H1

FY2020/5 H1(forecast)

FY2020/5 H1(result)

Comparison
with theforecast

FY2019/5 Q2

FY2020/5 Q2

ChangeYonY

Net sales

3,840

3,705

96.5%

7,541

7,579

7,585

100.1%

Operatingincome

731

-75

-

1,524

160

156

98.0%

19.1%

-2.0%

-

20.2%

2.1%

2.1%

-

Ordinary
income

728

-86

-

1,520

117

131

112.8%Net income
attributable toowners of parent

972

-67

-

1,517

110

127

116.3%

Operating margin

Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

8

Total Number of Active Users (MAU)*
Total MAU in the current quarter increased by 30% YonY, achieving a record high following thefirst quarter. MAU of “Gunosy” continued to grow. The effects of aggressive investment in advertising
became apparent.
YonY

＋30％
POINT

MAU of “Gunosy” recorded
continued rise and marked a newrecord high!
POINT

LUCRA
NewsPass
Gunosy

R e

Q1

Q2

Q3

FY2016/5

Q4

Q1

Q2

Q3

Q4

Q1

FY2017/5

Q2

Q3

Q4

FY2018/5

Q1

Q2

Q3

FY2019/5

Q4

o
g r

Q1

w t

h

Q2

FY2020/5*1 Average for each quarter of MAUs (monthly active users) of “Gunosy”, “NewsPass” and “LUCRA”

Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

9

Breakdown of Net Sales*1

Gunosy Ads achieved YonY sales growth. ADNW quarterly sales recorded a record high due to atemporary upside caused by topical factors. The YonY decrease in overall sales was due to adecrease in sales at advertising subsidiaries.

(Million yen)

4,500

Others
Game8
ADNW

54
*2

Gunosy Ads

2

1,500

39

12

49

62

610

606

5
75

148

158

815

980

1,097

1,585

1,541

223

232
256

240

234

1,236

1,357

1,480

1,422

1,459

1,871

1,935

1,894

1,960

2,030

2,119

1,964

Q4

Q1

Q2

Q3

Q4

Q1

Q2

1,205

90

19

280

190

3,000

16

206

178

334

254

136

1,143

625

466

1,175

1,283

1,300

1,411

1,505

0

-7

Q1

Q2

Q3

Q4

FY2017/5

Q1

-38

Q2

Q3

FY2018/5

FY2019/5

FY2020/5*1 Sales of Gunosy Ads, ADNW and Game8 are presented on a non-consolidated basis. Internal trade adjustments are included in Others.
* 2 Sales of Gunosy Ads are the total of “Gunosy”, “NewsPass” and “LUCRA”.

Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

10

Cost Structure
Active injection of “advertising expenses” to promote coupons since FY2019/5 Q3.
Personnel expenses and server expenses increased YoY, partly due to the preparation of new
businesses. The other major change includes the increase in “ad network costs” due to ADNW sales
which hit a record-high.
POINT

Active injection of advertising expenses
since FY2019/5 Q3(Million yen)

Consolidated basis

3,646

FY2019 Q2

FY2020 Q2

530 million yen

910 million yen

3,307
3,109
2,753

2,198

2,313

678

1,997
1,582
1,435
314
278

1,517

489
447

389
336

547
460

390

56

55

55

315

262

274

293

55

43

47

48

308

411

413

439

Q1

Q2

Q3

Q4

80

251
44

FY2017/5

Section 1

55

104

588
562
55

494

471

0

1,686

547

336
60

504
55
54

352
70

396

574

693

838

Q1

Q2

Q3

Q4

FY2018/5

493

39

539

55

54

420

414

103

102

92

782

1,055

1,160

Other expenses

22

Live video production expenses

917

Advertising expenses

19

806

40

1,003
1,092

911

1, 500

3,388

2,908

3, 000

3,781

41

777

1,047

Q1

Q2

822

637
51
51

55

456
109

988

16

507
131

526
157

POINT
72

Rents

526

Personnel expenses

146

Server expenses

Ad network costs

814

884

977

1,091

Q3

Q4

Q1

Q2

FY2019/5（C） Gunosy Inc. All Rights Reserved.

FY2020/5

PAGE |

11

2

Section 2

FY2020/5 Outlook（C） Gunosy Inc. All Rights Reserved.

FY2020/5 Results Forecast
FY2020/5 full-year forecast remains unchanged.
In the second half, we expect to achieve the predicted results by promoting top-line growth throughenhancement of advertisers and controlling the level of investment in advertising.
(Million yen)

H1 forecast

FY2020/5 H1

Full-year forecast

2019/10/15
Revised forecast

Progression
rate

FY2020/5
Full-year forecast

Progression
rate

Net sales

7,585

7,579

100.1%

17,054

44.5%

Operating income

156

160

98.0%

1,000

15.7%

Operating margin

2.1%

2.1%

-

5.9%

-

Ordinary income

131

117

112.8%

960

13.7%

Net income attributableto owners of parent

127

110

116.3%

565

22.6%

Section 2（C） Gunosy Inc. All Rights Reserved.

PAGE |

13

3

Section 3

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

Business Overview by Division• In the “Gunosy”, “News Pass” and "LUCRA" businesses, MAU
continued to build up steadily.

Media• Aim for further growth by enhancing programs focused on moneysaving (coupons, etc.) and entertainment content such as videos.

P16 - P20

• ADNW quarterly sales reached a record high.
• Our two existing subsidiaries (digwell and VIDPOOL) remained
unchanged. We are considering measures to improve businessperformance from a medium- to long-term perspective. Game8
expects business recovery from Q3.

Advertising
P21 - P23

• Established Grill, a new subsidiary, jointly with SUNNY SIDE UP, Inc.
Launched research and video marketing business.

• The investment destination was selected smoothly and the investment
was executed.

Investment• Invested in GaragePreneurs Internet, which runs a digital microlending platform in India.
P24

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

15

MediaGunosyIn addition to enhancement of new coupon brands, we offer a unique and money-saving
experience by distributing coupons exclusive to Gunosy users. Coupon insertion ads started in
the current quarter to strengthen monetization.

1

Offer coupons exclusive to Gunosy users

2

Start monetization by coupon tab■”Coupon insertion”■Campaign with Kura Zushi
November 16, 2019-December 30, 2019

Started on Sept 3, 2019.

■Campaign with Gindako

Aiming to realize optimal addelivery to coupon users.

November 25, 2019-December 12, 2019

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

16

MediaGunosyEntered into a partnership with AbemaTV. Strengthen entertainment program by enhancing video
content. Also developed “Gunosy Research”, a new menu that promotes clarification of advertising
effects.

3

Partnership with AbemaTV

Commenced comprehensive efforts such as cooperation in
distribution of breaking news, simultaneous distribution ofAbemaPrime, distribution of AbemaTIMES articles, provision of
Gunosy Q content, etc. We plan to deliver useful content to users assoon as it becomes available.

4

Develop brand lift survey by "Gunosy Research“

Developed brand lift surveys for elements that could not be measured
using conventional online ad effectiveness indicators, such asrecognition, message recall, favorableness, purchase intention, etc.
As there are many cases that elevation of the numerical value(favorableness etc.) was confirmed, we plan to work on this project inconjunction with promoting the use of branding advertising.

[Recognition survey]
記事に関するご感想

100%
80%

○○についてどれくらい知っていますか？

60%
よく知っている40%

ある程度知っている

20%

分からない

0%

非接触者

接触者

全く知らない35%

20%Entered into a partnership with AbemaTV.

分からない

30%

10%

Started distribution of AbemaTV programs.

ある程度知っている

18%

42%

よく知っている

17%

28%

全くわからない* Numerical data is a sample.

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

17

NewsPassMedia

Even after exceeding 10 million downloads in FY2020/5 Q1, the number of downloads and MAU
continued to mark steady growth. For further growth, we focused our efforts on enhancing video
content including TBS NEWS and running a gift campaign.
MAU and DL

Started 24-hour streaming for the first time

Number of downloads of
NewsPass

Exceeded 10 million DL

5 ,0 0, 0 0

1 2,0 0 ,0 0

4 ,5
0 0
, 0 0

1 0
, 0 ,0 0

4 ,0 0
, 0 0

3 ,5
0 0
, 0 0

8 ,0 0, 0 0

Cooperation with 24-hour Internet news channel"TBS NEWS"

3 ,0 0
, 0 0

2 ,5
0 0
, 0 0

Conducted gift campaign (Q3)

6 ,0 0, 0 0

MAU
2 ,0 0, 0 0

DL

4 ,0 0
, 0 0

1 ,5
0 0
, 0 0

1 ,0 0, 0 0

2 ,0 0, 0 0

5 0 ,0 0

0

0

Q1

Q2

Q3

FY2017/5

Section 3

Q4

Q1

Q2

Q3

FY2018/5

Q4

Q1

Q2

Q3

FY2019/5

Q4

Q1

Q2

FY2020/5

A year-end and new year campaign was conducted in which
luxurious gifts (50,000 yen coupon, etc.) could be won bylottery.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

18

Media

LUCRA

Although we continue to restrain investment for user acquisition, MAU and the number ofdownloads remained strong.
At present, we are strengthening the distribution of money-saving information, such as theimplementation of gift campaigns.

MAU and DL

2 ,0 0
, 0 0

1 ,8
0 0
, 0 0

“3LDK” exceeded 50 million views

Number of downloads of LUCRA

9 ,0 0, 0 0

Exceeded 8 million DL

8 ,0 0
, 0 0

1 ,6
0 0
, 0 0

“Love & romance reality show” X “Money game”
New variety show “3LDK”

7 ,0 0
, 0 0

1 ,4
0 0
, 0 0

6 ,0 0, 0 0Conducted gift campaign (Q3)

1 ,2
0 0
, 0 0

5 ,0 0
, 0 0

MAU
DL

1 ,0 0, 0 0Richexperience
every day

4 ,0 0, 0 0

8 0 ,0 0

3 ,0 0, 0 0

6 0 ,0 0

2 ,0 0, 0 0

4 0 ,0 0

Moneysavinginformation
every day

1 ,0 0, 0 0
2 0 ,0 0

0

0

Q1

Q2

Q3

FY2018/5

Section 3

Q4

Q1

Q2

Q3

FY2019/5

Q4

Q1

Q2

FY2020/5

For the Christmas season, a campaign was implemented inwhich various prizes could be won including cosmetics andconvenience stores sweets etc.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

19

Game8Media

Following FY2020/5 Q1, Q2 set as a period to prepare for business recovery. In Q3, earnings are
expected to improve along with the release of big game titles. Preparing for the re-growth period,
we are currently proceeding with M & A as well as seeking the possibility of overseas growth.
*

Results

Measures for sustainable growth

FY2020/3 Q2 results

Net sales

240 million yen

Operating income

50 million yen
Investment
phase

Growth phase

Status of businessrecoveryCurrently, PV of big titles
remains strong.

Regrowth
phase

Recoveryphase

3 0 ,0 0 ,0 0(Million yen)256

Net sales

234

232

2 5
0 ,0 0 ,0 0

Operating income

190

206

223

240

Big
title

2 0 ,0 0 ,0 0148

To achieve regrowth

Release of big
titles158

1 5
0 ,0 0 ,0 090
1 0 ,0 0 ,0 0

71

80

91

95

Big
title

111 116
57

54

50

Q1

Q2

Regrowth
Big
title

5 0
, 0 ,0 0

17
0

Q1

Q2

Q3

FY2018/03

Q4

Q1

Q2

Q3

Q4

FY2019/03

FY2020/03

Acquired shares of Smarprise, whichdevelops business in an adjacent area
(refer to press release on December 16, 2019). We aim
for further growth by integrating theknow-how and customer contact pointsof both companies.
Started trial operation of English website.
Considering the possibility of overseas
expansion.

In FY2020/3 Q3and after* Non-consolidated results (before consolidated adjustment)

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

20

Ad Network (ADNW)

Advertising

Both imp and CPM were strong and sales reached new highs. Cost Per Mille (CPM*) remained
at a high level. Advertising inventory (impressions) achieved a significant increase from FY2020/5 Q1
due to temporary effects caused by topical factors.
Nu mb er o f I mp ressi o n s
an d CP M

FY2020 Q2
No. of Impressions marked
a new record high(million imp)
60,000imp\36.84CPM\40\35.75\29.71\29.98\31.33\29.0645,000\30.70\25.1030,000\19.50\19.80\16.9015,000\30.7027,34830,78830,142

Q2

Q3

\20

\21.1050,988\18.4033,68038,61039,585Q1

Q236,33039,52938,87240,900Q4Q1Q238,39041,13843,325

Q4

Q1

0

\0

Q1

Q4

FY2017/5

Q3

FY2018/5

Q3

FY2019/5

Q2

FY2020/5* CPM (cost per mille): Price per 1,000 impressions of advertisements

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

21

Advertising

Subsidiaries (digwell and VIDPOOL)- digwell's business marked sales and profits declines following FY2020/3 Q1, caused by the suddenchanges in the market environment. Currently focusing on the advertising business for apps expecting
medium- to long-term recovery- VIDPOOL is focusing on the media rep business for CyberAgent.
Aiming to generate a surplus on a single month basis, we will prepare for the launch of the video ad
network market.

Pay-for-performance advertising service

Video ad network service

Trends in net sales

Trends in net sales

Q1

Q2

Q3

FY2018/3
Section 3

Q4

Q1

Q2

Q3

FY2019/3

Q4

Q1

Q2

Q1

FY2020/3（C） Gunosy Inc. All Rights Reserved.

Q2

Q3

FY2019/3

Q4

Q1

Q2

FY2020/3

PAGE |

22

Advertising

New Subsidiary "Grill“ EstablishedEstablished a joint venture (JV) with SUNNY SIDE UP, Inc. (SSU) in October 2019. By
combining SSU's planning ability with Gunosy's data analysis ability, we aim to spread andexpand research and video marketing business with added value.
Our businesses
1
Data analysis andmarketing abilities

Marketing research business

Planning ability andcommunication knowhow

Supports corporate marketing activities byconducting research using the user baseand consumer data owned by Gunosy
investment ratio: 65%

investment ratio: 35%

2

Established with the aim of accurately delivering higher-value
information to consumers making use of the "data abilities" of
Gunosy, a provider of information curation services, and the"planning abilities" of SSU, a marketing communications company.

Section 3（C） Gunosy Inc. All Rights Reserved.

Video marketing business

Produce and distribute videos for Gunosy
and various SNS to support corporate
marketing activities

PAGE |

23

Investment

Gunosy Capital

Invested in GaragePreneurs Internet, which runs "slice", a digital micro-lending platform for young
people in India (announced in October 2019).

Company name GaragePreneurs Internet Pvt Ltd.
Head office

Bangalore, Karnataka, India

Representative Rajan Bajaj

Image of press release published on
October 8, 2019

Established

June 2015

Business

Digital micro-lending, credit settlement andcredit card issuing service

プレスリリース：https://gunosy.co.jp/news/192

Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |

24

4

Section 4

Growth strategy of Gunosy Tech Lab（C） Gunosy Inc. All Rights Reserved.

Outline of Gunosy Tech Lab
Gunosy Tech Lab was established as a specialized organization to study further data utilization andinformation recommendation in accordance with the mid- and long-term vision presented in January 2019.
Through its establishment, we aim to break away from the framework of being merely a smartphone media
company, to focus on the near future where IoT and 5G will be the center of development. We output
research results in the form of our apps provided to users, provision to external companies, andpublication of papers.

Our own service

Application andimplementation ofresearch results

Presentations ofresearch results

T e c hL a b

A specialized organization that
researches the promotion ofdata utilization and information
recommendation

New collaboration
announced!
See p.30 for moredetail.

Services
provided incooperation withexternal
partners

Application andimplementation ofresearch results

Application andimplementation of research
results

Academy/International
Conference

Graduate School of *1
Engineering, The
University of Tokyo
Fujio Toriumi, Associate
Professor

Toyohashi University *2of Technology

Promotion ofresearch

Mitsuo Yoshida, AssistantProfessor

Joint researchwith universities

R&D

External
companies (ToB)

Provision ofservices

Servitization oftechnologies

Publication of
papersFostering throughsharing

Lecture atuniversities

Press Release: https://gunosy.co.jp/news/161

Section 4（C） Gunosy Inc. All Rights Reserved.

*1: Dr. Fujio Toriumi, Associate Professor
Graduate School of Engineering, The University of Tokyo*2: Mitsuo Yoshida, Assistant Professor
Toyohashi University of Technology

PAGE |

26

History of Gunosy Tech Lab and Future Policy
Based on the algorithms cultivated in our media, we provide technology using SaaS models, etc. We
expand opportunities to monetize not only in the media field, but also in technologies, which
are our strengths.
R & D activities anddisseminate information
into the researchcommunity

Developing algorithms in
our related media

2012 -

Use in our own media
In the operation of Gunosy andother media apps, we haveaccumulated operational
know-how while developing
our own algorithms.

Section 4

R & D and providing
information to external
parties
Since its establishment, wehave participated in academic
societies and conductedsponsorship activities.
Recently we set up a R&D
team to strengthen activities.

Providing tools(algorithms) to external

Monetize our technology

companies

Jan 2016 -2020 and after

Provision to external
companies

Monetization throughprovision to external
parties

Launched business tie-up
between KDDI and
NewsPass and built a solid
business structure with amajor carrier.

（C） Gunosy Inc. All Rights Reserved.

We aim to acquire new profits
in large business area, which
is not limited to the media
field, based on thetechnological strength andbusiness know-how
accumulated so far.

PAGE |

27

Features of “Gunosy Tech Lab”
We aim to develop services with a high probability of success by effectively utilizing ouracquired technologies and business know-how that we cultivated while operating media apps
and ad networks.

Construction of algorithm andimprovement based on datameasurement

Universal technical know-how acquired throughthe pursuit of optimal content distribution (newsrecommendation using action log in app) and effective user
acquisition (selection of advertising materials optimized by useof data, etc.) that goes beyond the media field.

2

Ability to develop and operatelarge services / platforms

Business management know-how such as
solving various issues that arise while operatinglarge-scale services / platforms and monetizing
services, etc.

3

Wide experience of value creation
through collaboration with large
companies

Know-how of collaboration between major
companies and venture companies
accumulated through the operation of“NewsPass” and “LUCRA”

1

Section 4（C） Gunosy Inc. All Rights Reserved.

PAGE |

28

Business Model
Based on the experience working as a platformer and advertiser, we aim to solve the issues in theinformation field faced by providers and platformers around the world with the technology
provided by Gunosy Tech Lab.
Digitalization of placementof ads

Personalization by use of AI

Information
ProviderInformation
Platformer

Users

Data feedback

Providers

Section 4

Platformers

Issues• The value of the content not correctly recognized• Delay in digitization and automation of placingads• Want to distribute content efficiently• Want to promote adoption of APPs

Target• Media, advertisers, manufacturers, etc. whowant to promote automation, digitalization andcreation of appropriate systems• Business deals already launched with media
and advertising platformers.
• In the future, planning to cover areas otherthan the media field.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

29

Companies Currently Collaborating withCurrently, we are collaborating with the following "major platformers".
Projects concerning solutions for "providers" are also in progress.

Platformer

KDDI Corporation

NewsPass, jointly developedwith KDDI Corporation, is the firstproject to provide technology toexternal companies.

Coming soon
Currently we are informally proceeding withcollaboration with several companies.

Platformer

Hakuhodo DY
Media Partners Inc.

Visualize and streamline
advertising transaction
inefficiencies with the power ofdigital technology to activate
latent demand in the advertisingindustry.
New

Platformer

ProviderAnnounced on December 19, 2019

Section 4（C） Gunosy Inc. All Rights Reserved.

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Image of Growth

Hereafter
seeking
expansion

We will initially build a business base mainly on providing solutions to providers andplatformers in the media / advertising area. And then, we aim to expand our business by enteringother industries.

Entry into areas other than media/ advertising

For platformers
Number of projects: Several companies (KDDI and Hakuhodo DY
Media Partners, etc.)
Scale: Individual large-scale solutions including business tie-ups

For providers

Currently in progress

Number of projects: Companies outside themedia field
Scale: Estimated as needed

Number of projects: Dozens of companies
Scale: Providing standardized solutions

Section 4（C） Gunosy Inc. All Rights Reserved.

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Appendix

5

Section 5

Reference Materials: Overview of Gunosy Inc.

（C） Gunosy Inc. All Rights Reserved.

Investment Phase to Accelerate Growth
Aiming for a large growth in profits in FY2021/5, we will continue to consider FY2020/5 as “an investment
phase for accelerated growth”, in which aggressive investment is made to "Gunosy" to realize medium- andlong-term growth and profits.
Furthermore, while emphasizing investment to accelerate growth, we will improve capital efficiency andconsider measures to increase return to shareholders to enhance shareholder value.

FY2018/5

FY2019/5

FY2020/5

FY2021/5(result)(result)(plan)(reference)

21,000+α

Net sales(Million yen)

Operating income
17,05415,017
11,2013,000+α
1,938

2,302
Incomedecline

1,000

Investment phase to accelerate growth
Section 5（C） Gunosy Inc. All Rights Reserved.

IncomegrowthAccelerated growth
phase
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Advertising Plan to Achieve GrowthWith a focus on our core business "Gunosy", we will actively invest in advertising througheffective use of TV commercials and online ads.
We plan to raise the investment amount to 3.88 billion yen in FY2020/5, which is planned to belowered to FY2019/5 levels the following year (FY2021/5). We will control the amount ofinvestment while carefully monitoring the return on investment.

FY2019/5

FY2020/5

FY2021/5(result)(plan)（reference）

GunosyOthersAdvertisingexpenses

Total amountspent

2.44 billion yen

Ratio to sales

16%

Section 5

3.88 billion yen
Down to FY2019/5 level

23%（C） Gunosy Inc. All Rights Reserved.

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34

Overview of Gunosy Inc.

Basic Information
・Officers:
・Company name:Gunosy Inc.

・Representative:

Yuya Taketani

・Established:

November 14, 2012

・Fiscal year end:

May 31・Capital:

4,068 million yen(as of the end of Nov 2019)

・Stock Code:6047 (First Section of The Tokyo Stock
Exchange)

・Audit corporation:

Ernst & Young ShinNihon LLC

・Number of employees:

223 (as of the end of Nov, 2019, on aconsolidated basis)

・Head office:Ark Mori Building, 1-12-32 Akasaka,
Minato-ku, Tokyo

・Business:

Development and operation of
information curation service and othermedia

Representative Director and CEO, Yuya Taketani
Director and COO, Tetsuya Nagashima
Director and CFO, Hiroki Maniwa
Director and CDO, Keisuke Osone
Director, Shinji Kimura
Director (Outside), Takashi Kamiyama
Director (Outside), Suguru Tomizuka
Director (Outside), Hiroki Teshima
Director (Outside), Hirokazu Mashita

Corporate Auditor, Masakazu Ishibashi
Corporate Auditor (Outside), Kenji Shimizu
Corporate Auditor (Outside), Noboru Kashiwagi（C） Gunosy Inc. All Rights Reserved.

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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 thesejudgments and assumptions and changes in risk factors and the economic environment.

（C） Gunosy Inc. All Rights Reserved.

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Optimally deliver information to people around the world