Sharing the Company’s Mid- to Long-term Vision

Gunosy Inc.

First Section of The Tokyo Stock Exchange(Stock Code: 6047)
January 15, 2019

INDEX

INDEX

1Introduction

P3

2

Projections for the Next 10 Years

P8

3

Crucial Factors for the Next 10 Years

P18

4

What to Do with the Data

P23

5

Important Indicators in FY2022

P27(C) Gunosy Inc. All Rights Reserved.

1

Section_1

Introduction(C) Gunosy Inc. All Rights Reserved.

Our Mission

Optimally deliver
information to people

around the world

Section_1(C) Gunosy Inc. All Rights Reserved.

PAGE |4

Our HistoryOriginally founded as a service for distributing news through mail magazines, we are expanding into new growth markets beyond thesmartphone-based media business, ads business through the external media, and existing media business.

Company established anddistribution of mail magazines
commenced

Smartphone-based media
business commenced

Delivery of ads throughexternal media launched

Tie-up operation with atelecommunication carrier

Expanding into new growthmarkets

2012

2013

2014

2016

2018

Mail magazines

Smartphone

External media

Large telecommunication
carrier

Data utilization

Established Gunosy Inc. inRoppongi, Tokyo, and started
to provide personalized news
by mail.

Started to provide smartphone apps that enable users
to personalize information
about which they are curious.

Commenced operation of ad
network business without
relying on the closed ownedmedia network.

PC

Section_1

Smartphone(C) Gunosy Inc. All Rights Reserved.

Started a tie-up operation with
KDDI Corporation through theNewsPass service, thereby
establishing a firm businessstructure with the carrier.

Established an advertising
company, block chain andinvestment subsidiary tosustain growth in evolving
adverting markets andemerging business domains.

Multiple Devices

PAGE |

5Trends in Financial Results
Sales

Media owned by the Company
14,462
11,201

Net sales for
FY2019 are

14,462 million yen

Operates

7,739
3,165

5 owned media

4,599(Forecast)
FY2015FY2016FY2017FY2018* Non-consolidated sales in FY2015

FY2019(Forecast)

Cumulative number of downloads

Number of employees

The cumulative number ofdownloads is

The number ofemployees isapprox. 40 million

170

Approx.
30%

Approx.
Approx.
70%

Approx. 40%

60%

MaleEngineerFemale

Non-engineer* The number of employees is presented on a consolidated basis as of November 30, 2018.

Section_1(C) Gunosy Inc. All Rights Reserved.

PAGE |6

Expansion in Business Domains
We developed business with a focus on the media and advertising businesses established in 2014.
In 2018, we launched blockchain and investment businesses to expand into emerging markets.
Enhancement of business domains

Number of products/Progress of businesses
Section_1

NewNewMedia

Advertising

Blockchain

Investment

GunosyAdvertising throughowned media

Establishment of Layer X

Establishment of Gunosy
Capital

NewsPass

In-feed type ADNWLUCRA

Video ADNW

Game8Affiliate advertising

Gunosy Sports(C) Gunosy Inc. All Rights Reserved.

PAGE |72

Section_2

Projection for the Next 10 Years(C) Gunosy Inc. All Rights Reserved.

Continuation of Growth in Video Advertising

Trends in the video
adverting market

495.7 billion yen

PC

Smartphone
431.3

465.0

388.7
333.7
261.3

Demand for smartphone
video ads is expected toincrease on a mid- to longterm basis, reaching495.7 billion yen in 2024.

203.1
156.3
109.6
27.8

28.0

28.1

28.7

29.2

30.0

30.7

30.7

201720182019

2020

2021

2022

2023

2024

Source: Survey by Online Video Soken/Digital InFact
Section_2(C) Gunosy Inc. All Rights Reserved.

PAGE |9

Changes in the Transmission Speed with the Advent of 5G
The introduction of 5G is expected to improve the transmission speed of 4G by more than 100 times. For example, for thedownloading time of movies, it will take 5 seconds or less to download one movie, while it takes more than 8 minutes today.

Time required to download one movie

4G
(Now)

5G(Future)（8分）
480480秒
seconds(8 minutes)5 seconds

Time required to download
one movie will be reduced
from more than 8 minutes
today to5 seconds or less.

Compression

Source: The Gendai Business Premium by Kodansha Ltd.
Section_2(C) Gunosy Inc. All Rights Reserved.

PAGE |10

Establishment of a Transmission Environment Connected to All Types ofDevices
In the 5G era, with a variety of devices connected to telecommunications networks, a range of information accessed byusers through their smartphones will be exchanged between places and devices without the users being conscious ofthe exchange.

AutomobilesUsers’
residencesInternetConnection

Smartphones

BlockChainClothes

Home electronic
appliances

Source: TIME & SPACE, an IT & culture-oriented magazine distributed by KDDI (partially adjusted by the Company)
Section_2(C) Gunosy Inc. All Rights Reserved.

PAGE |11

Increase in the Amount of Data
The amount of acquirable information will increase 10 times during the period from 2016 to 2025.
The amount of user generated content (UGC) has been increasing explosively due to the popularization of social media,
further accelerating an increase in the amount of information.
Trends in the amount ofglobal digital information

With the amount of user
generated content (UGC)
increasing explosively due tothe popularization of social
media, the amount of
information is expected toincrease to 163 zettabytes
by 2025.

163 zettabytes
in 2025(Expected)

2025

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Birth of theInternet

Establishment ofthe World WideWeb (WWW)

Source: Data partially processed and compiled by the Company based on a 2016 report of the Ministry ofInternal Affairs and Communications on discussions for examining ICT services and a survey by IDC Japan.

Section_2(C) Gunosy Inc. All Rights Reserved.

PAGE |12

Summary of Changes that May Occur
With data and content further diversifying, we will enter an era in which data, algorithms and methods of use are moreimportant than individual media.

Summary of changes that may occur
Data integration between
different content formats,and different devices

Connection
Device A

Diversification ofdevices initiated bysmartphones

Crucial factors

Collaboration with offline
services/devices throughthe utilization of online data

Device B

Collaboration
OnlineOffline5G
Changes intransmission
speed

Section_2

Diversificationof data formats

Significance ofdata security

Protection

Data(C) Gunosy Inc. All Rights Reserved.

Security

PAGE |13

Our Mid- to Long-term Vision
Gunosy, instead of operating as an ordinary smartphone media company,seeks to create an environment in which optimized information is received bypeople in appropriate situations.
Information optimized through AI isdelivered to people in appropriate situations(Future)People take action to obtain information
(Now)

BCAI

AI

AIAI

DMP

People attempt to obtain information throughPCs and smartphones.
Section_2

Information required by people will be optimized andreceived by them in appropriate situations.

（C）
GunosyInc.
Inc.AllAllRights
RightsReserved.
Reserved.
(C) Gunosy

PAGE |14Worldview Expected to Be Created in the Future (i): At Home

It’s expected to rain in the evening.
I should bring an umbrella.
When you wake up, you receive today’s weather and other news that you wish to know.
While getting ready for work, you listen to categorized news that interests you through smart speakers.

Section_2（C）
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Inc.AllAllRights
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Reserved.
(C) Gunosy

PAGE |15

Worldview Expected to Be Created in the Future (ii): On the GoThis is the continuation of the content that I saw at home.
A user, who is automatically recognized while on the go in a self-driving taxi, ispresented with content and advertisements that address their needs.
With their credit records and credit card information referred to, the user gets out of
the taxi without following payment procedures.

Section_2（C）
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Inc.AllAllRights
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Reserved.
(C) Gunosy

PAGE |16Worldview Expected to Be Created in the Future (iii): Shopping

Looks like organic vegetable are cheap today.
Stores anticipate customers’ visiting hours and purchases, and undertake
procurement operations based on purchase records and data accessible
by content and advertisements.
Based on this, stores post information on recommended products whencustomers visit.

Section_2（C）
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Inc.AllAllRights
RightsReserved.
Reserved.
(C) Gunosy

PAGE |17

3

Section_3

Crucial Factors for the Next 10 Years(C) Gunosy Inc. All Rights Reserved.

Optimization of Information in Society, where an Information
Explosion is Taking Place

A crucial factor that should be addressed is theexhaustive nature of the information that we manage.

We will acquire and manage data through a variety of touchpoints such as media, IoT devices
and advertising networks, as well as offline services/products.
Then we will provide this information in an optimal way that meets the needs at the time.

Section_3（C）
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Inc.AllAllRights
RightsReserved.
Reserved.
(C) Gunosy

PAGE |

19

Data Owned by Gunosy
Downloads reached 39.26 million for mainstay media, including Gunosy App. We own data concerning media groupedbased on genres and users classified according to their interests.

Downloads (Cumulative)

39.26 million DLsUpMAU

1User types

32.0% year on year•••

Users who like entertainment: Approx. 26.5 million
Users who like news: Approx. 8 million
Users who like fashion: Approx. 4.5 million

2User data owned by the Company

27.99

LUCRA
NewsPassGunosy• Gender/Age• Location information• Interests
And others

LUCRA
NewsPassGunosy

18.41

11.91

3

7.46

Q2

Q2

Q2

Q2

Q2

FY2015 FY2016 FY2017 FY2018 FY2019

Section_3

Q2

Q2

Q2

Q2

Q2

••

Article data
Approx. 800 media
Approx. 10,000 articles/day

FY2015 FY2016 FY2017 FY2018 FY2019(C) Gunosy Inc. All Rights Reserved.

PAGE |

20

Current Data Acquisition/Methods of Use
We acquire basic information such as gender and age through smartphone apps andrecommend content mainly through articles.
Data owned by theCompany

DeviceUser

Data
Currently available information

Recommendationof articles andcontent

GenderCurrent method
OnlineAgeSmartphone
Contact

Utilization
Acquisition of data

Section_3（C）
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Inc.AllAllRights
RightsReserved.
Reserved.
(C) Gunosy

Location information
Article/advertisement log

PAGE |

21

Future Data Acquisition/Methods of Use
We will acquire data necessary for the detailed personalization of a range of information, including payment information andcredit information, and recommend varieties of content through diverse devices.
Data owned by theCompany

Device
Now

Now
OnlineSmartphone

User

GenderData
Recommendationof articles andcontent

Age
Location information

FutureOnlineArticle/advertisement log

Smartwatch
Touchpoints

Utilization

OfflineFutureAcquisition of data

Automobile

Collaboration
OfflineCredit record/provision of credit

Shopping cart

External data
Offline(ADNW, data collaboration)

Other IoT

Section_3

Payment

Inventory held
Schedule（C）
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Inc.AllAllRightsRightsReserved.
Reserved.
(C) Gunosy

PAGE |

22

4

Section_4

What to Do with the Data

(C) Gunosy Inc. All Rights Reserved.

Examples of Data Use in Mobility-Related Situations

A user or a driver is recognized and content(news, music and so on) that match thedriver’s interest will be provided.

Section_4

Content and advertisements that respond to an individual
passenger’s needs are recommended in a taxi.

(C) Gunosy Inc. All Rights Reserved.

Security is guaranteed for devices,such as a key for car sharing.

PAGE |24

Example of Data Use in Shopping-Related Situations

Recommended items are proposed based on
information from previous store visits.

Section_4

User information is referenced and payments are
made automatically based on credit information.

(C) Gunosy Inc. All Rights Reserved.

Items are automatically delivered based on
information on items stocked in the refrigerator,
previous purchases and other data (e-commerce).

PAGE |25

We will recommend information in a variety of situations, and through such services,
strengthen platforms and enhance profitability.

5

Section_5

Important Indictors in FY2022(C) Gunosy Inc. All Rights Reserved.

Policy for Mid-Term Business Expansion
We will acquire data that have not been obtained through expansion into new business domains.
We will increase advertising revenue by utilizing such acquired data, effectively.
Existing businesses(Media and ADNW)

Data

GenderAge

PositionInterests

What will be achieved through theutilization of data in the medium term

OtherUtilization

New domains(Media, ADNW, Offline and Alliance)

DataCVPurchases

IncomeCredit

Enhancement ofprofitability inadvertising

Data utilization
businesses(Marketing solutions,research and others)

Other
Section_5(C) Gunosy Inc. All Rights Reserved.

PAGE |28Main Targeted Indicators for FY2022
To further develop our company in rapidly changing market conditions, we have set the following indicators
as targets to be achieved over the next three years and will expand accordingly.

MAU

Total stay-timeGroup-wide sales

Annual growth of 20%

Annual growth of 25%

Annual growth of 30%

An increase in MAU due to an increasein the amount of data acquired

An increase in stay-time, reflecting anenhancement in profitability due to anincrease in the amount of dataEnhancements in profitability arefactored in for all businesses including
the media business

Section_5

Overseas development

Acquisition of new data

We will raise profitability in overseas throughbusiness tie-ups and other measures

We will strengthen DMP and facilitate datacollaboration externally(C) Gunosy Inc. All Rights Reserved.

PAGE |

29

Our Mission

Optimally deliver
information to people

around the world

Section_5(C) Gunosy Inc. All Rights Reserved.

PAGE |

30

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 theiraccuracy.
Please note that actual results may differ materially from the forecasts due to various uncertainties
included in these judgments and assumptions and changes in risk factors and the economic environment.

(C) Gunosy Inc. All Rights Reserved.

PAGE |31

Optimally deliver information to people around the world