FY2020/5 Financial Results for Q3
Gunosy Inc.
F i r s t S e c t i o n o f T h e To k y o S t o c k E x c h a n g e(Stock Code: 6047)
April 14, 2020

INDEX

1

Financial Results for FY2020/5 Q3

P 32

FY2020/5 Outlook

P 9

3

Policy for FY2021/5

P 14

4

Business Overview by Division

P 21

5

Reference Materials:

APPENDIX

Overview of Gunosy Inc.

（C） Gunosy Inc. All Rights Reserved.

P 29

1

Section 1

Financial Results for FY2020/5 Q3（C） Gunosy Inc. All Rights Reserved.

Executive Summary
Summary of FY2020/5 Q3

Net sales: 3.7 billion yen (101.8% YonY ) Operating profit: 340 million yen (103.5% YonY)• Gunosy Ads: While unchanged YonY, Gunosy has achieved a 7.4% sales increase YonY.
• ADNW: Despite a QonQ sales decline due to topical factors in the previous , YonY sales growth was achieved.
• Game8: Quarterly net sales marked a record high and operating profit reached the highest level.

Earnings forecast for the current
periodEffects of the new coronavirus and the renewal of advertising guidelines• Based on the above, a downward revision was made to the full year forecast of net sales. (Consolidated forecast revised from17.05 billion yen to 14 billion yen)
• As to operating profit and all other profit items, the previous consolidated forecast remains unchanged as they are expected
to be achieved through thorough cost reductions including advertising expenses.
Measures for dealing with thebusiness environment
Judging from the uncertainties of the latest business environment, it is determined to be necessary to review FY2021/5 targets.
We developed plans to cope with the uncertain business environment, including expansion of the number of advertisers, acquisition of revenue
sources other than media and advertising businesses, strengthening of profitability by thorough cost reduction and enhancement of financialbase, etc.
Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

4

FY2020/5 Q3 Consolidated Results••

Achieved YonY growth of net sales and operating profit on a quarterly basis, despite
increased uncertainties in the business environment.
Net sales of Gunosy focused on recovery of ad unit price increased by 7.4% YonY.
(Million yen)

Q3
FY2019/5
Q3

Total Q1-Q3

FY2020/5
Q3

YonY

FY2019/5
Q1-Q3

FY2020/5
Q1-Q3

YonY

Net sales

3,640

3,705

101.8%

11,182

11,291101.0%

Operating profit

331

343

103.5%

1,856

500

27.0%

Operating margin

9.1%

9.3%

-

16.6%

4.4%

Ordinary profit

322

352

109.3%

1,843

484

Profit attributable toowners of parent

200

＊

91

45.8%

1,717

＊

219

26.3%
12.8%

* The excess earning power that was estimated when acquiring the shares of digwell Co., Ltd. (formerly Kumar Co., Ltd.), a consolidated
subsidiary, is no longer expected. Accordingly, an unamortized goodwill balance of 125 million yen and related intangible assets of 2 million
yen were recorded as impairment loss in the current quarter.
Section 1（C） Gunosy Inc. All Rights Reserved.

PAGE |

5

Total Number of Active Users*1•

Total MAU in the current quarter increased by 24% YonY•

It marked only a slight increase QonQ due to control of investment in advertising in Q3.
YonY
＋24%

LUCRA
NewsPass
GunosyQ1Q2Q3

FY2016/5

Q4

Q1

Q2

Q3

Q4

Q1

FY2017/5

Q2

Q3

Q4

Q1

FY2018/5

Q2Q3

FY2019/5

Q4

Q1

Q2

Q3

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 |

6

Breakdown of Net Sales*1• Gunosy Ads net sales are unchanged YonY. (While Gunosy net sales marked strong growth QonQ due to an increase in the number of advertisers,
there are issues regarding the growth in the number of advertisers in NewsPass and LUCRA.）• ADNW net sales increased YonY. Net sales decreased QonQ as topical factors which supported business in Q2 settled
down.
• As the PV of the game walkthrough Wiki remained strong after the release of big game titles, Game8 achieved the highest
ever quarterly net sales.
(Million yen)

4,500

Others
Game8
ADNW

54
*2

Gunosy Ads

2

39

280

16

12

49

62

610

606

5
75

148

158

256

815

980

1,097

19

128

240

317

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

1,960

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

1,205

90

223

232

190

3,000

1,500

206

178

334

254

136

1,143

1,298

625

466

1,175

1,283

1,300

1,411

1,505

Q1

Q2

Q3

Q4

Q1

0

1,585

Q2

-7

FY2017/5

1,541

-38

Q3

FY2018/5

FY2019/5

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

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

PAGE |

7

Cost Structure
We controlled advertising expenses in Q3 to achieve full-year forecast of operating profit. Further
reduction of redundant costs is under way to improve profitability in light of the latest businessenvironment, including improvement of server costs.
POINT

Controlled advertising expenses toachieve full-year forecast of operating
profit(Million yen)

Advertising expenses

Advertising expenses

Q2: ¥ 910 million

Q3: ¥ 580 million

3,646
3,307

3,388

3,362

3,109
2,753

1,160
911

2,198

2,313

678

1,997
1,582
1, 500

1,003
1,092

2,908

3, 000

1,435
314
278

471

336

390

460
55

262

274

293

43

47

48

308

411

413

439

Q1

Q2

Q3

Q4

44

FY2017/5

Section 1

547

55

251

447

389

56

80

0

494

1,686
1,517

489

547

588
562
55

55

315
55

104

336
60

504
55
54

352
70

396

493
55

420
103

39

539

574

782

838

Q1

Q2

Q3

Q4

1,055
41

777

54

414
102

92

693

FY2018/5

806

40

3,781

1,047

Q1

Q2

16

917
822

637
51

55

456

952

Other expenses

31

Live video production expenses

583

Advertisingexpenses

90

Rents

541

Personnel expenses

134

Server expenses

Ad network costs

19

51

109

988

22

507
131

526
157

72

526
146

814

884

977

1,091

1,027

Q3

Q4

Q1

Q2

Q3

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

POINT

FY2020/5

PAGE |

8

２

Section 2

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

FY2020/5 Financial Forecast (Consolidated)•

We anticipate a negative impact on short-term net sales due to a decline in the number of advertisers,
which was caused by the deterioration of the current market conditions due to the impact of the newcoronavirus, the renewal of advertising guidelines and the enhancement of the examination system.
However, as we have implemented thorough cost reductions (including advertising expenses),
the target of the full-year forecast of operating profit is left unchanged.

•

On the other hand, the impact of the new coronavirus is changing day by day and we will disclose it
promptly when it becomes necessary to further revise our earnings forecast.

(Million yen)

FY2020/5 full-year forecast (consolidated)

FY2020/5
Q3

FY2020/5 Initialfull-year financial
forecast

Increase/
FY2020/5 Revised
decreasefinancial forecast
rate

Increase /Decrease

Revised11,291

17,054-3,05414,000-17.9%

Operating profit

500

1,000

-

1,000

-

Operating margin

4.4%

5.9%

-

7.1%

-

Ordinary profit

484

960

-

960

-

Profit attributable toowners of parent

219

565

-

565

-

Net sales

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

PAGE |

10

FY2020/5 Financial Forecast (Non-consolidated)•

As in the revision of the consolidated forecast, a downward revision was made to the nonconsolidated forecast of net sales.

•

Ordinary profit is expected to exceed initial expectations as significant cost reductions are planned in Q4
including advertising expenses, outsourcing expenses, etc. Profit forecast is unchanged from the initialvalue, given the fact that the evaluations of the investment securities as of the end of the current fiscal
year have not been determined.

•

As in the consolidated forecast, the impact of the new coronavirus is changing day by day and we will
disclose it promptly when it becomes necessary to further revise our earnings forecast.
(Million yen)

FY2020/5 full-year forecast (non-consolidated)

FY2020/5
Q3

FY2020/5 Initialfull-year financial
forecast

Increase/
FY2020/5 Revised
decreasefinancial forecast
rate

Increase /Decrease

Revised

10,245

14,314-1,814

12,500-12.7%

Ordinary profit

446

632

187

820

29.6%

Profit

347

436

-

436

-

Net sales

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

PAGE |

11

Advertising Guidelines / New Coronavirus
Renewal of advertising guidelines

Measures for new coronavirus

Implemented renewal of advertising guidelines(announced on April 10, 2020) and enhancement of thecheck system to sustain growth over the medium tolong term

Reduction of infection risk for employees, customers andpartners and implementation of measures with the highest
priority on ensuring safety

Background of
measures

Measures taken• Building a healthier media and ad network toeradicate false advertising• Improving the transparency and reliability of Internet
advertising• Although short-term sales impact is unavoidable, we
aim for medium- to long-term growth by expanding
the number of advertisers who place advertisements
in highly reliable media.

FY2020

Implement stricter internal check

Renewal of advertising guidelines

Section 2

FY2020 Q4

May 2019• Require all employees who come to work to disinfect withalcohol, check their physical condition and theirtemperature before coming to work, etc.
• Basically prohibit domestic and international businesstrips and travel

FY2019FY2019 Q3

May 2018• Issued a notice to essentially work from home fromMarch 26, 2020 (remote work)→ At the same time, strengthened the productivity
monitoring system. Built a system that allows business tocontinue without significant difficulties even if the current
situation is prolonged• Promoting the use of Web conferencing andteleconferencing

May 2020（C） Gunosy Inc. All Rights Reserved.

PAGE |

12

Urgent Challenges for the Business Environment
Taking the uncertainties of the business environment into account, we started to strengthen profitability
and financial base.

Strengthen profitability

Thorough cost reduction
Strengthen cost reductions in the short term to achieve the target of the full-year operating profit.
In FY2020/5 Q4, we expect a significant reduction in advertising expenses and outsourcing expenses.
From a medium- to long-term perspective, we will promote reduction and reallocation of all cost items
company-wide.

Strengthen financial base

Discussions underway to set commitment lines with major banks
To prepare for unexpected deterioration of business environment and prolongation thereof, we plan tosecure ordinary working capital for two years or longer in our group in addition to cash on hand anddeposits.

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

PAGE |

13

3

Section 3

Policy for FY2021/5（C） Gunosy Inc. All Rights Reserved.

FY2021/5 Results
Concerning next fiscal year, we have decided that it is necessary to revise the targets of“consolidated net sales over 21 billion yen" and "consolidated operating profit over 3 billion
yen” given the uncertainties in the recent business environment. As soon as we have finalized therevised business plan, we will make another disclosure.

FY2018/5

FY2019/5

FY2020/5

FY2021/5(result)(result)(revised forecast)(reference)(Million yen)Over ¥ 21,000 M

Net sales

Given the uncertainties in the

Operating profit

recent business environment,
15,017

we have decided that it is14,000necessary to revise the

11,201

FY2021/53,000+α
target.
1,938

2,302
1,000

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

PAGE |

15

Measures to Take
Although we are currently in the process of closely examining the business environment and have
not yet established specific performance targets, at this moment we expect to exceed the FY2020/ 5 full-year forecast on an operating profit basis through thorough cost reduction and flexible
control of advertising expenses.

Measure 1

Net sales

Measure 2

Increase profitability

Measure 3

Advertising expenses

Section 3• Increase the number of advertisers• Develop revenue sources other than media andadvertising• Cost reduction through review of all cost items(eg: Communication expenses, outsourcing
expenses, etc.)• Strict investment standards(Investment focused on acquiring users who are expected to bring a solid
return on investment even in an uncertain business environment)（C） Gunosy Inc. All Rights Reserved.

PAGE |

16

Measures to Expand the Number of Advertisers
In Q3, the number of Gunosy advertisers turned to an increasing trend. Regarding the ratio of each category to total sales (invalue terms), the health category fell by 5.7% QonQ, the applications, finance and human resources categories increased. We
also succeeded in diversification of advertisers. In the future, we will promote plans for regrowth with the aim of acquiring
advertisers who want to place ads on highly reliable media and advertisers that are less affected by the current
market environment.

3 measures

Number of active advertisers* of Gunosy

Strengthen advertising technology

Focus on advertisers who place advertisements onhighly reliable media and advertisers that are lessaffected by the current market environment (eg:VOD, entertainment, commerce, etc.).
The number of advertisers is
expected to decrease in Q4
due to the new coronavirus,
new advertising guidelines, etc.

Full application of an automatic bidding
function "UOP" developed by Gunosy.
Started working on upgrading functions toimprove the operational effectiveness ofnew (dormant) customers.

Strengthen
customerdevelopment by
MA(Marketing Automation)

Invest in creating a systemthat does not misspromising customers.

Measures forrecovery ofadvertisers

The number ofadvertisers
increased from
Q2 to Q3 due tosuccessful
measures

Focus onexpanding salesof new products
Present proposals to new(dormant) customers
making use of new
products such as video ads
and research toolThough thenumber ofadvertisers is
expected todecrease in the
short term, weplan forregrowth byleveraging
successful
experience in Q2

Sep

Oct

Apr

May

Jun

Jul

(Result) (Result) (Result) (Result) (Result) (Result) (Result) (plan)(plan)(plan)(plan)

Q2

Nov

Dec

Jan

Q3

Feb

Mar

Q4

Next Q* Monthly average number of daily active advertisers in "Gunosy"

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

PAGE |

17

Develop Revenue Sources Other Than Media And
Advertising Areas
Although the contribution to sales and profit has not started yet, steady progress has been made in monetizing
our own technology at Gunosy Tech Lab. We plan to make a concrete contribution to business performance fromFY2021/5.
Expansion of business domain

Gunosy’s core technology: Content recommendation using machine learning and automation andoptimization of content evaluation
Number of products and business progress
Section 3

Media

Advertising

Our core business that produces stable profits
GunosyGunosy Tech Lab

Investment(GTL)

New business that we aim to establish to serve as a pillar of
future profits

Internet advertising businesswith our own media

NewsPass

Infeed ADNWLUCRA

Video ADNW

Game8

Pay-Per-Performance Ads

OtokulApps ADNWBuild a revenue acquisition
model through collaboration /provision of tool

Collaboration Provision- KDDIof tool- Hakuhodo-Sports
DYMP
Nippon- Toshiba
Newspaper
Data（C） Gunosy Inc. All Rights Reserved.

Investment in fast-growing
overseas markets(Currently focused on India)
Domestic investment incompanies that have thepotential to create newmarkets throughtechnology

PAGE |18

GTL

Business Progress up to Q3Since the establishment of Gunosy Tech Lab (GTL), we have provided research results to various major
companies. In Q3, we started to provide our technology to Sports Nippon Newspapers Co., Ltd.
Discussions are also currently underway to provide our technology to Toshiba Data Corporation.
Steady progress being made to establish
collaboration with major companies

Partner companies that GTL provides technology andcooperates with
提供

KDDI
CORPORATION

Hakuhodo DY Media Partners
Inc.

T e c hSports Nippon Newspapers Co., Ltd.

Toshiba Data Corporation

New

New

L a b

Provides our technology cultivated throughoperations such as Gunosy, NewsPass,
LUCRA and ADNW, and promotes
collaboration.

Aim to earn profits outside the media and advertising areas
such as business development through collaboration and provision of our technology throughSaaS model, etc.
Section 3（C） Gunosy Inc. All Rights Reserved.

PAGE |19

GTL

Current Status of Collaboration
with Hakuhodo DY Media Partners

As part of the promotion of DX (digital transformation) in the advertising market, we have started to study the visualization of TV
commercial effects with Hakuhodo DYMP. While it is increasingly important to clarify the advertising effectiveness of TV
commercials with the deterioration of the macroenvironment, we are considering products that will help advertisers improvethe effectiveness of TV commercials and improve the cost effectiveness of placing TV commercials.

Concept of "Visualization of TV commercial effect”
Perspective of advertising agency

Perspective of advertiser

Creative – Idea - Relation

Operation know-how cultivatedthrough placing ads worth over 10
billion yen

Outline of our services■ Illustration of business model

Produce
Data

TechBroadcastAnalyze

Data

Data

Lab

Joint development tool

Promotion of DX in the TVcommercial area
Productization
Developed a tool that visualizes the effects of
TV commercials and enables quantitativeplanning of placement of commercials
Section 3（C） Gunosy Inc. All Rights Reserved.

POINT

Leading TV commercials to
success through a scientificapproach based on numericalverification

PAGE |

20

4

Section 4

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

Business Overview by Division• Due to the impact of the new coronavirus, the renewal of advertising guidelines
and the enhancement of the examination system, it is expected in Q4 that the
number of advertisers in each media will temporarily show a sharp drop andsales will decline in the short term.
• In Q3, while controlling investment in advertising expenses, MAUs for “Gunosy”
and “NewsPass” remained firm. In Q4, while we plan to significantly reduce
advertising expenses and MAU is expected to slow down and decline in each
media, we aim to enhance profitability by drastic cost reduction.

Media
P23 - P26

• In Game8, PV of big titles remained strong, achieving record-high quarterly
results. There is ongoing investment in the organizational structure to createsynergies with Smarprise and to develop our business overseas.

• Regarding ADNW, although ad unit prices (CPM) have been declining,
advertising inventory (impressions) have remained at a high level. Although we
expect a substantial temporary decline in earnings due to the impact of the
new coronavirus, the renewal of advertising guidelines and the enhancementof the examination system, we will aim for regrowth in the medium to longterm through measures to restore soundness.

Advertising
P27 - P28

Others• Regarding digwell and VIDPOOL, we are continuing to examine measures torecover business performance from a medium- to long-term perspective.

• Grill: New product “Gutele” launched.
P28

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

PAGE |

22

MediaGunosyIn Q3, we achieved sales growth both in QonQ and YonY supported by strong acquisition of advertisers.
We enhanced original news and entertainment content including daily news summary video and "super
trend prediction", etc. We continued to offer a unique and money-saving experience by distributing
coupons exclusive to Gunosy users.

1

Daily news summary video

2

Distribution of original content started

We broadcast "Ranking over 30 million people! Super trend forecast", aprogram that predicts future trends based on the results of research of"GUNOSY" users, every Monday from 12:00 noon.

3

Gift campaign

Topical news
We produce original videos in collaboration with Grill, oursubsidiary.
It summarizes the news of the day in one minute in aneasy to understand way.

Section 4

Cheese meat bun campaign
January 24 to February 2, 2020

（C） Gunosy Inc. All Rights Reserved.

Onigiri Rice ball campaign
February 4 to February 13, 2020

PAGE |

23

NewsPassMedia

Exceeded 12 million downloads in FY2020/5 Q3. We successfully expanded the number of coupon tab
users through the au WALLET point gift campaign jointly conducted with KDDI. While user KPIs remainedsolid, there are still problems with the acquisition of advertisers, which resulted in sales to decline QonQ.

MAU and DL

Point gift campaign

Number ofadvertisers

MAU

Improvement
measures under way

Increase
5 ,0 0, 0 0

Coupon tab users

1 4,0 0 ,0 0

doubled

4 ,5
0 0
, 0 0

1 2
,0 0 ,0 0

4 ,0 0, 0 0

1 0, 0 ,0 0
3 ,5
0 0
, 0 0

3 ,0 0, 0 0

8 ,0 0
, 0 0

2 ,5
0 0
, 0 0

MAU

6 ,0 0, 0 0

2 ,0 0
, 0 0

DL
1 ,5
0 0
, 0 0
4 ,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 4

Q4

Q1

Q2

Q3

FY2018/5

Q4

Q1

Q2

Q3

FY2019/5

Q4

Q1

Q2
FY2020/5

Coupon reward campaign

Q3Campaign launched where users can get points by checking the
coupon tab.

（C） Gunosy Inc. All Rights Reserved.

PAGE |

24

LUCRAMedia

Despite continuing efforts to improve profitability, there are still problems. Accordingly we continued torestrain investment for user acquisition in Q3. Although MAU decreased in Q3, we will continue torestrain investment for user acquisition until sufficient profitability improvement is achieved.

MAU and DL
Number ofadvertisers

MAU
2 ,0 0, 0 0

Measures to improve profitability

Decrease

Improvement
measures under way

1 0, 0 ,0 0

1 ,8
0 0
, 0 0

9 ,0 0
, 0 0

1 ,6
0 0
, 0 0

8 ,0 0
, 0 0

1 ,4
0 0
, 0 0

7 ,0 0
, 0 0

1 ,2
0 0
, 0 0

6 ,0 0
, 0 0

MAU
DL

1 ,0 0, 0 0

5 ,0 0, 0 0

8 0 ,0 0

4 ,0 0, 0 0

6 0 ,0 0

3 ,0 0, 0 0

4 0 ,0 0

2 ,0 0, 0 0

2 0 ,0 0

1 ,0 0
, 0 0

0

0

Q1

Q2

Q3

FY2018/5

Section 4

Q4

Q1

Q2

Q3

FY2019/5

Q4

Q1

Q2

Q3

FY2020/5

1

Improve retention rate2

Improve ad delivery logic(E.g. Hold gift campaign)(Consider optimizing ad delivery)

After achieving profitability improvement,

consider investment to acquire
users（C） Gunosy Inc. All Rights Reserved.

PAGE |

25

Game8Media

Record high quarterly net sales were achieved in Q3 and operating profit marked the highest ever.
Although there are uncertainties such as advertisement unit prices in the business environment under the
influence of the new coronavirus, PV is currently performing well.
*
Results*

Topics

FY2020/3 Q3 results

QonQ

317 million yen
113 million yen

Net sales
Operating profit

132%
225%

Investment
phase

Growth phase

Recoveryphase

Regrowth
phase

PV of big titles remained strong
In Q4, it is expected that good
performance will be maintained as big
game titles are scheduled to bereleased.

3 5
0 ,0 0 ,0 0317(Million yen)

Net sales

Active investment in humanresources

3 0 ,0 0 ,0 0

256Operating profit

234

232

2 5
0 ,0 0 ,0 0

190

206

223

240

We will actively invest in humanresources to achieve further growth.

2 0 ,0 0 ,0 0

148

158

1 5
0 ,0 0 ,0 09071

1 0 ,0 0 ,0 0

5 0
, 0 ,0 0

80

91

95

111

116

113
57

54

Regrowth

50

17

0

Q1

Q2

Q3

FY2018/3

Q4

Q1

Q2

Q3

FY2019/3

Q4

Q1

Q2

Q3

FY2020/3

Post M&A & Strengthen businessdevelopment overseas
To realize synergies with Smarprise andto prepare for full-fledged launch of the
English website, we will strengthen ourinvestment in overseas organizational
structures.

* Non-consolidated results (before consolidated adjustment)

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

PAGE |

26

Ad Network (ADNW)

Advertising

Although ad unit prices (CPM) have been declining, advertising inventory (impressions) have remained at ahigh level. Although we expect a substantial temporary decline in earnings due to the impact of the
new coronavirus, the renewal of advertising guidelines and the enhancement of the examination
system, we will aim for regrowth in the medium to long term through measures to restore soundness.
Nu mb er o f I mp ressi o n s
an d CP M(million imp)
60,000imp\36.84CPM\30.70\40\35.75\30.70\29.71\29.98\31.33\27.70\29.0645,000\25.10\19.5030,000\19.80\16.90\21.10\18.40\20
50,98815,00027,34830,78830,142Q2

Q333,68038,61039,585Q1

Q236,33039,52938,87240,900Q4Q1Q238,39041,13843,325Q4

Q146,718

0

\0

Q1

Q4

FY2017/5

Q3

FY2018/5

Q3

FY2019/5

Q2

Q3

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

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

PAGE |

27

Outline of Other Subsidiaries

Focus on advertising business for
apps

Focus on sales of video ad networks
and media rep business

Pay-Per-Performance Advertising service

Video ad network service“Gutele” launched(Video advertisement
distribution service)Marketing researchVideo marketing

Acquired as a consolidated
subsidiary in December 2019

sumutasu inc. (our investee)raised approximately 500
million yen(Feb 4, 2020)

Media business
Advertising agency businessEntertainment business(Other existing investees have not been
adversely affected by recent changes inmarket conditions either)

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

PAGE |

28

5

Section 5

APPENDIX

Reference Materials: Overview of Gunosy Inc.

（C） Gunosy Inc. All Rights Reserved.

Overview of Gunosy Inc.
Basic Information

・Officers:
・Company name:Gunosy Inc.

・Representative:

Yuya Taketani

・Established:

November 14, 2012

・Fiscal year end:

May 31・Capital:

4,077 million yen(as of the end of Feb 2020)

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

・Audit corporation:

Ernst & Young ShinNihon LLC

・Number of employees:

240 (as of the end of Feb, 2020, 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

Section 5

Representative Director and CEO, Yuya Taketani
Director and COO, Tetsuya Nagashima
Director and CFO, Yuki Maniwa
Director and CDO, Keisuke Osone
Director, Shinji Kimura
Director (Outside), Takashi Kamiyama
Director (Outside), Suguru Tomizuka
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 these judgments
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