FY2019/5 Financial Results for Q3
Gunosy Inc.

First Section of The Tokyo Stock Exchange(Stock Code: 6047)
April 12, 2019

INDEX

1 Executive SummaryP3

2 Financial Results for FY2019 Q3P6

3 FY2019 Outlook

P11

4 Business Overview by Division

P17

5 Reference Materials: Overview of Gunosy Inc.

P29

（C） Gunosy Inc. All Rights Reserved.

1

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

Preparation for Further Step Forward
In anticipation of a significant increase in sales and income in FY 2021/5, we defined approximately one
year from the current quarter as a strategic investment period, and will actively invest in existing / newapps through aggressive advertising.
Strong performance of coupon
programMain background leading to upfront
investment

Resurgence of total number of active
users of “Gunosy App” through new
approach based on improvement ofalgorithms and use of coupons.

Inject additional advertising expenses(approx. 300 million yen) to coupon
program which acquired a good
reputation while monitoring (3Q).

From the viewpoint of profitability, asufficiently high result is expectedfrom the coupon program.

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

PAGE |

4

Image of Performance Growth over Three Periods
Targeting a large increase in income in FY2021, we see the next fiscal
year (FY2020) as an investment phase cantered on the regrowth of “Gunosy”.
(Specific forecast, including advertising expenses, will be announced at the time of the FY2019/5 Financial Results.)

Net sales (FY2019-FY2021)

Operating profit (FY2019-FY2021)

FY 2021/5 net sales expected to grow significantly with the

FY2020/5 operating profit is expected to show a temporary

additional investment of advertising expenses compared to

decline as it prepares for the next year's leap.

cases with no additional investment.

Investment phase

Investment phasew/o additional
investment

w/o additional
investment
w/ additional
investment

w/ additional
investment

14.7 billion yen(Forecast)

2.1 billion yen(Forecast)

FY2019/5

FY2020/5

Advertising expenses /Net sales
2.4 billion yen(forecast) (17%)

17%

30%

Section 1 Assuming that the ratio of advertisingexpense / sales remains at approx.
17% same as FY2019/5

FY2019/5

FY2021/5

FY2020/5

Advertising expenses /Net sales
2.4 billion yen(forecast) (17%)

Assuming that the ratio of advertisingexpense / sales is increased up to 30%(example) （C） Gunosy Inc. All Rights Reserved.

17%

FY2021/5

30%

Assuming that the ratio ofadvertising expense / sales
remains at approx. 17%

PAGE |

5

2

Financial Results for FY2019 Q3（C） Gunosy Inc. All Rights Reserved.

FY2019/5 Consolidated Results for Q3• Q1-Q3 for FY2019/5, business remained solid with net sales increasing 41.9% YonY and operating profit
increasing 35.5% YonY. Net sales, however, were weak on quarterly basis, mainly in ADNW, due to changes in theadvertising market environment beginning in Q2.
• Meanwhile, a surge in active users through improvement of the algorithm and use of coupons became apparent. To
achieve medium to long term growth, we spent additional advertising expenses from a strategic perspective. The additional
spending started to make a contribution to the net sales of the Gunosy App. But it was offset by the negative impact of thechange in the market.
• As a result, an increase in advertising expenses stood out, and quarterly operating profit showed temporary decline YonY.
(Million yen)

Q3
FY2018/5
Q3

Total Q1 - Q3

FY2019/5
Q3

FY2018/5
Q1-Q3

YonY

FY2019/5
Q1-Q3

YonY

Net sales

2,758

3,640

132.0%

7,878

11,182 141.9%

Operating profit

444

331

74.6%

1,370

1,856 135.5%

Operating margin

16.1%

9.1%

-

17.4%

16.6%

Current profit

444

322

72.5%

1,370

1,843 134.6%

284

200

70.4%

881

Net profit
attributable to owners ofparentSection 1（C） Gunosy Inc. All Rights Reserved.

1,717

-

194.9%
PAGE |

7

*1

Total Number of Active Users*1• Further increase in active users of Gunosy App, through approach including
improvement of algorithm and use of coupons. Considered to have entered into
regrowth phase.
• NewsPass and LUCRA marked steady growth.
• As a result, rose 33% YonY in total.

LUCRA
NewsPass
GunosyStableQ1

Q2

Q3

FY2015

Q4

Q1

Q2

Q3

FY2016

Q4

Q1

Q2

Q3

Q4

Q1

FY2017Q2Q3FY2018

Q4

Q1

Q2

Q3

FY2019

*1 Average for each quarter of MAUs (monthly active users) of Gunosy, NewsPass and LUCRA.

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

PAGE |

8

Breakdown of Net Sales *1• ADNW sales were weak, due to the impact of change in the advertising market
environment which started gradually in Q2.
• Gunosy Ads achieved growth due to successful user acquisition through thecoupon program despite the same impact as above.
(Million yen)

254

136

4,000

280

Others
54

Game8

206

ADNW

232
256

190
*2

Gunosy Ads

2
12

16
2,000
39
52
388
103
776

153

853

5

49

62

610

606

148

158

90

75

1,080

1,459

980

1,097

1,585

1,541

1,871

1,935

1,894

1,960

Q4

Q1

Q2

Q3

1,143

815

625

466

251

939

1,422
1,205

1,175

1,283

1,300

1,411

1,505

0

Q1

Q2

Q3

FY2016

Q4

Q1

Q2

Q3

FY2017

Q4

Q1

-7

-38

Q2

Q3

FY2018FY2019*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 App, NewsPass App and LUCRA App.
*3 For the quarters up to FY2016 Q2, the figures are from the non-consolidated results.

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

PAGE |

9

Cost Structure• Along with ADNW sales decline, “Ad network costs” also decreased.
• Increased costs due to the additional spending of “advertising expenses” (approx. 300 million yen)
for a coupon program with strong performance.
• “Other expenses” is mainly associated with the rise in costs for revenue sharing with KDDI.

3,307

3,109

(Million yen)
3,000

2,753

2,198

2,313

678

1,997

1,319

1,500

0

832

877

123

140

443

394

22
146
39
56

Q1

1,007
173

243
504

1,435

314
278
471

22
176
53
90

24
198
40
162

44
236
37
253

80
251
44
308

Q2

Q3

Q4

Q1

407

FY2016

1,582 1,517

1,686

489

460

390

56
262
43

55
274
47

55
293
48

411

413

439

Q2

Q3

Q4

FY2017

562
55
55
315
55

40

588

547

494

104

336
60

504
54
352
70

574

693

782

Q1

Q2

Q3

55
396

911

1,055

Other expenses

39

41

Live video production expenses

777

Advertising expenses

806

493

447

389
336

547

2,908

539

55

54

420

414

55

Rents

102

456

Personnel expenses

103

109

Server expenses

92

838

Q4

FY2018

988

1,047

Q1

Q2

Ad network costs
814

Q3

FY2019* For the quarters up to FY2016 Q2, the figures are from the non-consolidated results.

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

PAGE |

10

3

Section ２

FY2019 Outlook（C） Gunosy Inc. All Rights Reserved.

Progress and Correction in FY2019/5 Financial
Forecast• Due to improvement of algorithms and additional investment of advertising expenses based on use of
coupons, the full-year forecast was changed.
• Additional advertising expenses were injected into the Gunosy App., which has been acquiring users
steadily, and other Apps. as well.
• Aiming to improve sales by introducing advertising expenses in a timely and appropriate manner in Q4,
while measuring effectiveness as needed.
(Million yen)
FY2018/5
Q3

Initial forecast

Increase /Decrease

Corrected
forecast

Increase/decreaserate

Net sales

11,182

14,462+308

14,7702.1%

Operating profit

1,856

2,722

-620

2,101

-22.8%

Operating margin

16.6%

18.8%

-

14.2%

-

Net profit

1,717

2,159

-289

1,870

-13.4%

attributable to owners of parent

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

PAGE |

12

In Case Additional Advertising Expenses were not
Spent in FY 2019/5
If strategic investment not introduced, sales and operating profit would reach 14.68 billion yen (+31% YonY) and 2.53
billion yen (+31% YonY), respectively, which is just slightly below disclosed forecast, despite the impact of changes in
the advertising market environment. The increase in advertising costs was decided to aim for mid-term growth.

Net sales

Operating profit(Full-year forecast of FY2019/5）(Full-year forecast of FY2019/5）

Although the effect of the additional advertising expenses
appeared in the increase in the number of active users, butthere is a time lag until it affects sales.

Strategic investments will affect operating profit in thecurrent and next fiscal years.

w/o additional
investment

w/o additional
investment

w/ additional
investment

w/ additional
investment

14.77 billion
90 million

yen

Difference

14.68 billionyen

2.53 billion
2.1 billion yen
14.68
billionyen

Corrected
forecastyen
0.43
billion yen

14.68
billionyen

Assumedmodel

Difference

2.1 billionyen

2.1 billion
yen

Corrected
forecast

Assumedmodel（C） Gunosy Inc. All Rights Reserved.

PAGE |

13

E x pl a na ti on ofba c k gr ound

Effectiveness Measurement: Concept ofSpending Advertising Expenses

We calculate the return on investment based on (1) user acquisition efficiency by advertising,(2) persistency of users (3) profitability per one user, and then make decisions on advertisingexpenses.
(1) User acquisition
efficiency by advertising(2) Persistencyof users(3) Profitability
per one user

Return on investment(calculated based on 3 factors above)

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

PAGE |

14

E x pl a na ti on ofba c k gr ound

Coupon Program: Collection Period

In the current quarter, approximately 300 million yen of additional advertising expenses was invested inorder to achieve the regrowth of the Gunosy App. If it were a regular additional advertising activity, theacquisition efficiency and the persistency would deteriorate.
It was confirmed, however, in effectiveness measurement conducted internally, that the investment
return of the Gunosy App. is improving as a result of algorithm improvement and the current coupon
program.
Vertical axis: (Per-user sales minus unit cost to acquire one user)
Collection period using
regular program

Coupon program
Regular program

Collection periodusing coupon
program

5 years
Horizontal axis: (No. of years
since acquisition)

Loweredto 66%

Section 2

Lowered to approx. 66%
through CouponProgram,
improvement of algorism andenhanced content.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

15

E x pl a na ti on ofba c k gr oundComparison of CPI of Each Apps

• In terms of CPI calculated based on the measured effectiveness of advertising cost, YonY increase
rate of “Gunosy”, for which advertising expenses added, is not substantially higher than "NewsPass",with advertising expenses at a regular level.
• With regard to “LUCRA”, we bore 100% of the cost from December 2018 to January 2019 due tostrategic reasons, so the standard for calculating CPI is different from previous period.

GunosyNewsPass

LUCRA

Increased 13%

Increased 6%

Increased 129%
*Standard for CPI changed

FY2019/5
2Q
Section 2

FY2019/5
3Q

FY2019/5
2Q

FY2019/5
3Q（C） Gunosy Inc. All Rights Reserved.

FY2019/5
2Q

FY2019/5
3Q
PAGE |

16

4

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

Highlights by Division

Media• The advertising expenses of the Gunosy App. increased by about 300
million yen for the coupon program, resulting in MAU to recover.
• On March 4, we released “OTOKUL” as the second application in thecurrent fiscal year.

Advertising• In collaboration with Supership Inc., a new ADNW that utilizes data
including data from communication carriers was developed.

BC (blockchain)• Increase of personnel resources. We will continue to plan and develop
in-house products for medium- and long-term, while covering
personnel expenses by consulting services.

Investment• We invested in Instamojo Inc., India's largest online payment service
for small businesses.

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

PAGE |

18

MediaBusiness(1) Gunosy

The number of brands and types of coupons is No. 1* in Japan. User acquisition using“Zero Yen” coupon program, which was implemented as a large campaign, is well under way.
* Among domestic news app service (based on a survey by the Company) (as of 2019.3.7)

Coupon content

Promotion

Digital
As of November 30, 2018
Number ofbrandsTypes ofcoupons

1259• Acquisition efficiency was
improved by approx. 20% due
to “Zero Yen” coupon program.

• While we further increased advertisingexpenses by approx. 300 million yen,acquisition efficiency was maintained.
• TV commercial for the 0 yen coupon
broadcast nationwide.

As of February 28, 2019

TV

Section 3

Number ofbrandsTypes ofcoupons

22

105（C） Gunosy Inc. All Rights Reserved.

PAGE |

19

MediaBusiness(1) Gunosy

We are enhancing the content of official videos such as J League and Korean drama,
and will continue to expand video content.
Changes in the scale of users
who have completed viewing video

Main video content broadcast in Q3

In-house
production

前年同期比

4.5倍

Gunosy Q
A live interactive quiz program featuring user
participation (held on a regular basis)

Live broadcasting of sports eventsand highlights

約Broadcasting official videos provided by J League
and B1 league by live broadcast and archive video
distribution

Alliance Press conference for singers andwithbands, etc.
external Broadcast of a press conference upon release ofpartners new songs or MV
Q3

Q4
FY2018

Section 3

Q1

Q2

Q3

FY2019Streaming-video services of
Korean drama and TV content
Enhance tie-up for streaming-video services of
Korean drama and TV content（C） Gunosy Inc. All Rights Reserved.

PAGE |

20

MediaBusiness(2) NewsPass

We are seeking to improve user experience through the enhancement of video content.
Number of use of comments showed substantial growth by implementation of campaign.

Content• We started development of coupon functions, which started in Q4(March). We plan to provide more daily-life based information.
• Construct push delivery algorism according to interest cluster. We
are enhancing video content to improve user experience.

• Implementation of a “data free-gift promotion” for KDDI au users.

Special offer

Community

Section 3• Conduct a promotion for all users in which coffee or ice cream
may be won by those who make use of the comments function.

• Due to the promotion related to the comment function mentioned
above, the number of use of apps increased.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

21

MediaBusiness(3) LUCRAWith the introduction of new content including the coupon program, the service
continued to be the largest media outlet oriented to women in the Japanesemarket in terms of the number of active users.
Based on a survey by the Company (Refer to App Annie)

Introducing new content• Aim: Increase the frequency of app use
by existing users.
• Overview: Providing a coupon tab, which
offers coupons for LUCRA main users. It
will be examined in the future as towhether it will be used for promotion or
any approach made (any proposalsmade) to other coupon providers.

Advertising strategy change
We changed the revenue sharing schemewith KDDI Corporation on a trial basis inorder to execute a more timely advertisingstrategy and to never miss any opportunities.
(Future changes are under discussion.)

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

PAGE |

22

(4) Game8Media
Business

Both sales and operating profit continued to set record highs.
Already gained a large share in the domestic game guide area, which has been driving growth, andbecame a more stable profit-generating business. We will use resources in new areas while
supporting steady growth of this existing business.

Sales and Operating profit

Measures for Continued Growth

300,000,000

256
250,000,000(Million yen)

232

Sales

Actively expand content other thangame walkthrough.

206

190
200,000,000

Operating profit

148• Content for advance reservations grewsteadily.

158

150,000,000

111

90
40
50,000,000

12

52

39

62

49

22
2

91

75

100,000,000

8

11

71

116

95

80

• We are considering undertaking M&As,
investments, alliances and other initiatives
proactively.

170

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY2016FY2017FY2018FY2019*1 Non-consolidated results (before consolidated adjustment)

Section 3• We created new business teams to launchother businesses effectively.

（C） Gunosy Inc. All Rights Reserved.

• In Q4, we will also carry out strategic
investments including personnel acquisition
costs for business preparation, performancebonuses, and office expansion. Accordingly,
temporary profit decline is expected on
QonQ basis.
PAGE |

23

Advertising
Business

Ad Network (ADNW)The change in the advertising market environment, which began in the middle of Q2, has been having an
impact over three months, resulting in the number of impressions to decline. CPM (Cost Per Mile) also
decreased proportionately. Although we do not expect business performance to deteriorate compared to thecurrent quarter, we are considering new measures, assuming that the market environment remains the same.
Number of Impressions and CPM(million imp)
45,000

¥40

imp

CPM

38,61039,52939,585¥36.8440,900¥35.7533,68030,78830,00038,39038,87236,33030,142¥30.70¥30.70¥29.71

27,348¥25.10YonY¥19.5015,000¥19.80¥21.10¥20

CPM：-3%¥18.40¥16.90

0

¥0

Q1

Q2

Q3

Q4

FY2017Q1Q2Q3FY2018

Q4

Q1

Q2

Q3

FY2019* CPM: Cost Per Mille; unit price per 1,000 views of advertisements

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

PAGE |

24

Advertising
Business

Advertisers

We focused on sales activities for the existing major advertisers*with the purpose of increasing sales
per customer. In Q3, however, the impact of the change in the advertising market environment
became apparent, especially in Health and Beauty care segments, while Apps and Finance segments
were only slightly affected, resulting in the share of advertisers to change in part.
Number of Active Advertisers
Segment of Advertisers (FY2019 Q3)(Companies)
1,600

Other advertisers
Major advertisers* 1,388 1,396
1,343
Percentage
1,253 1,273
1,211
1,210 1,239
1,098

100%

1,239
1,076

95%
Real estate…

1,049

OthersGames 1%

90%

843

800

11%
Human…

782

HealthFinance 5%

636

85%

Apps
(excluding games) 7%

42%

Beauty80%

221 207 246 261 260

care…

332 345 346 350 324 310 355 311 292 355

075%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY2016FY2017FY2018FY2019* 広告予算が100万円以上の広告主

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

PAGE |

25

Advertising
Business

Existing Advertisers

In collaboration with Supership Inc., a new ADNW that utilizes data
including data from communication carriers was developed.
Strengths of ScaleOut Ad Network• A variety of data, including datafrom communication carriersSupership hold
• Security through measures forad fraud and brand security• Advertisement delivery
technology using proprietarydata owned by Gunosy

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

PAGE |

26

New Advertisers (digwell and VIDPOOL)

Advertising
Business

As for digwell, sales of app-related projects increased steadily, despite the influence of changes in
the advertising market environment.
As for VIDPOOL, revenue increased steadily due to the increase in number of video views in Gunosy.

Pay-per-click services for APP advertisers.

Tr e nds i n ne t
sales

Q1

Q2

Q3

FY2018
Section 3

Revenue increased steadily due to theincrease in number of video views in Gunosy.
Tre nds i n ne t
sales

Q4

Q1

Q2

Q3

Q1

FY2019（C） Gunosy Inc. All Rights Reserved.

Q2

Q3

FY2019PAGE |

27

Investment
Business

Gunosy Capital

We carried out the second project, which is an investment in Instamojo Inc.,largest online payment service for small businesses in India.

Overview of investee
Company name: Instamojo, Inc.
Head office: Bangalore, Karnataka, India
Representative: Sampad Swain
Established: 2012
URL：https://www.instamojo.com/
Business: Online payment service for small
businesses

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

PAGE |

28

Appendix

Reference Materials: Overview of Gunosy Inc.

（C） Gunosy Inc. All Rights Reserved.

Overview of Gunosy Inc.
We aim for speedy and fair decision-making with a small board of directors in which
outside directors account for half.
Basic Information
・Company name:Gunosy Inc.

・Officers:Representative Director and CEO,Yuya Taketani

・Representative:

Yuya Taketani

・Established:

November 14, 2012

・Fiscal year end:

May 31・Capital:

4,046 million yen(as of the end of February 2019)

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

Director (Outside), Toshifumi Tsukada

・Audit corporation:

Ernst & Young ShinNihon LLC

Director (Outside), Hiroki Teshima

・Number of
employees:

191 (as of the end of February,
2019, on a consolidated basis)

Director (Outside), Hirokazu Mashita

・Head office:Roppongi Hills Mori Tower,
6-10-1 Roppongi, Minato-ku,
Tokyo

Corporate Auditor (Outside),
Kenji Shimizu

・Business:

Development and operation of
information curation service andother media（C） Gunosy Inc. All Rights Reserved.

Director and COO,
Tetsuya Nagashima
Director, Yoshinori Fukushima
Director, Shinji Kimura
Director (Outside), Suguru Tomiduka

Corporate Auditor, Masakazu Ishibashi

Corporate Auditor (Outside),
Noboru Kashiwagi

PAGE |

30

Directors

Representative Director and CEO

Representative Director and COO

Director

Director

Yuya Taketani

Tetsuya Nagashima

Yoshinori Fukushima

Shinji Kimura

He graduated from the Department of Industrial andManagement Systems Engineering, School of Creative
Science and Engineering, Waseda University. After
working at GREE Inc., he joined our company. After
serving as Director & COO from August 2013 andRepresentative Director & COO from August 2016, heassumed the post of Representative Director & CEO in
August 2018.

He graduated from the Faculty of Science andTechnology, Keio University. After serving as
Executive Director of AUN CONSULTING, Inc. andthen GREE Inc., he joined our company. He led ouradvertising business unit as Executive Officer. After
serving as Director from August 2016 and Director &CBO from August 2017, he assumed the post of
Director & COO in August 2018.

He graduated from the Graduate School ofEngineering, The University of Tokyo. During his timeat the school, he developed the services of Gunosy,
founded the company in November 2012, andassumed the post of Representative Director.
Subsequently, in November 2013, he took up the postof Representative Director & CEO. He was selected as
Super Creator in IPA’s MITOU Program in 2012. In
August 2018, he transferred to the subsidiary, LayerXInc., to concentrate on his work as its representative
director.

He graduated from the Department of Physics, Facultyof Science, The University of Tokyo. After joining
DREAM INCUBATOR Inc., he founded Atlantis Co.,
Ltd. (now Glossom, Inc.) in March 2007 and sold it to
GREE Inc. in 2011. He assumed the post ofRepresentative Director of our company in 2013 andresigned in 2014. In June 2016, he founded AnyPay
Inc. In August 2017, he took up the post of Director of
our company.

Director (Outside)

Director (Outside)

Director (Outside)

Director (Outside)

Toshifumi Tsukada

Suguru Tomiduka

Hiroki Teshima

Hirokazu Mashita

In 1986, he joined DDI Corporation (now KDDI
Corporation). After serving as Representative Directorof mediba Inc., Representative Director of WebMoney
Corporation and General Manager of Advanced
Business Development Division of KDDI Corporation,
he currently serves as Chairman of au Commerce &Life, Inc. In August 2016, he assumed the post of
Outside Director of our company.

After joining Recruit Company (now Recruit Holdings
Co., Ltd.) in 1988, he served as its Executive Officer aswell as Representative Director of an affiliatedcompany of Recruit Holdings Group and was involvedin the internet media business and management. In
2018, he founded Tommy Co., Ltd. He currently serves
as Representative Director of Tommy and Outside
Director of eole Inc. In August 2018, he assumed thepost of Outside Director of our company.

He joined HAKUHODO Inc. in 1999. From 2006, he served
as Director when Interspire, Inc. (now UNITED, Inc.) was
founded. After two business mergers, he assumed the postof the CEO of UNITED, Inc. at the end of 2012. He also
served as Outside Director of Mercari, Inc., in which thecompany invested, in 2013. He has a wide range ofexperience in management and internet-related
businesses. Since August 2018, he has served as Outside
Director of our company. In September 2018, he assumed
the post of Joint Founder and General Partner of XTech
Ventures.

In 1991, he joined Nomura Securities Co., Ltd. In 1996,
he graduated from the MBA course at Duke University
Fuqua School of Business. After serving as Director of
Hikari Tsushin, Inc. and Representative Director of emachitown Co., Ltd., he founded M&S Partners Pte.
Ltd. in 2013 and has served as its Director (up untilnow). He has experience in global management andinvestments both in Japan and overseas. Since August
2018, he has served as Outside Director of ourcompany.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

31

Business Model of Our Main BusinessWe aim to coexist with various stakeholders based on making use of ourstrengths in the Internet advertising business with our own media.
Newspapercompanies, etc.

Users

Provide news
content
Offer
news forfree￥
Payment

Our own
media
Sell adspace(Payment)

Media of othercompanies

Advertisers
Sell ad space

Place ads
ADNW

￥

￥

Payment

Payment（C） Gunosy Inc. All Rights Reserved.

PAGE |

32

Disclaimer

Forward-looking statements contained in these materials are prepared from
judgments and assumptions based on information available at the time of
preparing the materials, and do not guarantee their accuracy.
Please note that actual results may differ materially from the forecasts due tovarious uncertainties included in these judgments and assumptions and changes
in risk factors and the economic environment.

（C） Gunosy Inc. All Rights Reserved.

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