Second Quarter, Fiscal Year Ending March 2022

Financial Results

November 9, 2021

United, Inc.
(TSE Mothers: code 2497)

Agenda1

Financial Highlights of 1H FY03/22

P1

2

Performance by Segment in Q2 FY03/22

P7

3

Growth potential of the DX Platform
Segment

P13

4

Growth potential of the Investment
Segment

P31

5

Appendix

P39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material was
created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks orregistered trademarks of the respective companies.
1Segments and Their Businesses

Growth drivers

Earnings drivers

We actively invest in these businesses,
which we position as our future growth drivers.

We generate stable earnings in these businesses
through operation focusing on profitability.

DX Platform Segment

Content Segment

KiRAMEX Co.

Operates TechAcademy, an online
programming school

Operates games such as CocoPPa Play andCrash Fever

Plus U, Inc.

Operates CHEERZ, a service to help
invigorate artists’ activities

Develops apps and systems
Brewus Inc.

DX Solution Division

Fogg, inc.

Offers consulting services to support
digital transformation (DX)* of companies

International Sports
Marketing Co., Ltd.

Operates JOOi, a crowdsourcing service
specializing in designers

LIBASE Inc.

Plans and operates Dream Mail, asweepstakes and gift site

TREiS, inc.

Investment Segment

VENTURE UNITED, inc.

Invests in a wide range of startups withgrowth potential, from seed to early stage
and middle to later stage companies

Produces sports-related websites andplans and develops media

Ad Technology Segment

UNITED MarketingTechnologies Inc.

Operates Bypass, a DSP service specializing
in smartphones; adstir, an SSP service
specializing in smartphones; and HaiNa, an ad
optimization network* Digital transformation refers to the process of companies transforming their products, services, and business models based on the needs of customers and society byusing data and digital technology in response to drastic changes in the business environment, as well as transforming the business itself, organization, processes, andcorporate culture and climate to establish a competitive advantage. (Ministry of Economy, Trade and Industry, "DX Promotion Index")2

Financial Highlights of 1H FY03/22

Consolidated
Operating
Performance*1

Sales:
Operating Income:¥8,100 million (-10% YoY)
¥4,559 million (-17% YoY)

Growth Drivers
KiRAMEX Co.
Brewus, Inc.
DX Solution Division
LIBASE Inc.

DX Platform
Segment

Sales:¥1,105 million (-11% YoY)
Operating Income: -¥290 million (-¥341 million YoY)

Investment
Segment

Sales:¥5,045 million (-10% YoY)
Operating Income: ¥4,779 million (-12% YoY)

VENTURE UNITED, inc.

For
P10
Details

Content
Segment

Sales:¥1,421 million (+0% YoY)
Operating Income: ¥251 million (+12% YoY)

Plus U, Inc.
Fogg, inc.
International Sports Marketing Co., Ltd.
TREiS, inc.

詳細は
For
P11
Details
P16

Ad Technology
Segment

Sales:¥529 million (-28% YoY)
Operating Income: ¥299 million (-6% YoY)For
P9Details

Earnings Drivers*1
UNITED Marketing Technologies Inc.

For
Details2Q詳細は

P12*1 In accordance with the application of the new revenue recognition standard (ASBJ Statement No. 29 "Accounting Standard for Revenue Recognition" and ASBJ
Guidance No. 30 "Guidance on Accounting Standard for Revenue Recognition”) from FY03/22, prior year results for the Ad Technology Segment are calculated
and presented using the same standard in this report for ease of comparison. Figures before the application of the new standard are presented in the consolidated
financial statements and quarterly report disclosed on the same day as this report.
3

1H Progress vs. Full-year FY03/22 Forecast
The 1H progress rate versus full-year targets was 62.3% for sales and roughly 80% for the profit lines fromoperating income and below. However, since the results reflected the sales of securities that wereconducted partially ahead of schedule, and in light of our continued investment into the DX Platform
Segment, we decided to maintain our forecast for the full year.

¥13,000 million (YoY +3%)
Operating Income: ¥5,700 million (YoY +2%)

Sales:

Consolidated
Forecast

Ordinary Income:¥5,700 million (YoY +1%)

Net Income:¥3,900 million (YoY +5%)¥186.00 (YoY +11%)EPS:

1H Progress vs. Full-year Forecast
Sales

62.3%

Operating Income

80.0%

Ordinary Income

79.9%

Net Income

80.7%
0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%
4

Consolidated P/L Statement
Gross profit fell 17% YoY in reaction to the heavy concentration of sales of securities in 1H a year ago.
SG&A expenses decreased 18% YoY, owing largely to the office downsizing we carried out in FY03/21.

1H FY03/21

1H FY03/22

YoY(Millions of yen)

Sales

8,997

8,100

- 10%

Gross profit

7,053

5,864

- 17%

SG&A expenses

1,587

1,305

- 18%

Operating Income

5,465

4,559

- 17%

Non-operating income

6

1

- 81%

Non-operating expenses

4

7

+85%

5,560

4,553

- 18%

Extraordinary profit

8-- 100%

Extraordinary loss

176-

- 100%

Profit before income taxes

5,392

4,553

- 16%

Net Income*

3,723

3,146

- 15%

Ordinary Income* Refers to net income attributable to owners of parent
5

Interim Dividend for FY03/22

We maintain the policy of targeting an annual consolidated payout ratio of 20%, and plan todetermine the total full-year dividends accordingly. The interim dividend was decided at ¥17 pershare.

Details of Annual Dividends
FY03/22

Record date
Dividend per
share(Six months)
Total dividends(Six months)
Payout ratio(Annual)

FY03/21

InterimYear-End (Forecast)InterimYear-End

September 30, 2021

March 31, 2022

September 30, 2020

March 31, 2021

¥17.0

NYD

¥15.0

¥19.0

¥360 million

NYD¥335 million¥414 million

20.0% (planned)

20.1%

6

Agenda1

Financial Highlights of 1H FY03/22

P１

2

Performance by Segment in Q2 FY03/22

P７

3

Growth potential of the DX Platform
Segment

P13

4

Growth potential of the Investment
Segment

P31

5

Appendix

P39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material
was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks orregistered trademarks of the respective companies.
7

Operating Income by Segment
Q2 operating income excluding headquarters expenses came to ¥1,776 million. In the DX Platform
Segment, we continued to engage in M&A activities and ramp up hiring in preparation for future growth.
(Millions of yen)

～
5,595

～

～～
3,263

5,384

1,776

435

400
17
149
74
153
-17

190
125

165
68

161
-42

3,202

88
55
116
118
-201

DX Platform
Investment

350
1,577

76
155

174

-170

-119

144

Continued upfront investment

Ad Technology
Content

Q1

Q2

Q3
FY03/21Q4Q1Q2
FY03/22
Note: Excludes headquarters expenses

8

DX Platform Segment: Sales and Operating Income
Sales in services for individuals declined reflecting the absence of stay-at-home-related demand hike at
TechAcademy seen in FY03/21, along with the rising number of competitors in the market. As a result, Q2
segment sales fell 21% YoY. Meanwhile, sales in services for companies rose thanks to the expansion ofbusiness areas and M&A activities, which lifted segment sales QoQ. We aim for business growth by raising thevalue provided by TechAcademy and strengthening the business portfolio of the segment as a whole.

Sales Trend (Millions of yen)

Operating Income Trend(Millions of yen)

Services for companies
Services for individuals

YoY

712
679

661

540

525

68

- 21％

YoY

565

- ¥188 million

Q1

Q2

Q3

-17

-42

Q4

Q1

Q2

～～～
-119
△119

-170
△170
-201
△201

Q1

Q2

Q3
FY03/21Q4Q1Q2
FY03/22

FY03/21

FY03/229

Investment Segment: Sales and Breakdown of Operational Investment Securities
The segment achieved Q2 sales of ¥1,761 million mainly from the sales of shares in investee companies andgains on distribution from fund investment as LP. At end-Q2, operational investment securities totaled ¥32,320
million.*

Sales Trend (Millions of yen)

Breakdown of Operational Investment Securities

5,456

InvesteeCompanies

As of September 30,
2021(amount on BS)

Listed shares

Mercari, Inc.
Wonder Planet, Inc.
Confidence, Inc

Approx. ¥28.2 bn

Unlisted
sharesMore than
55 companies

Approx. ¥2.7 bn

Investment infunds as LP

29 funds

Approx. ¥1.3 bn

3,283

1,761

Q1

152

249

Q2

Q3
FY03/21

79
Q4

Q1

Q2

FY03/22*Of this amount, operational investment securities related to Mercari totaled ¥27,412 million (2.8% of voting rights held, as of September 30, 2021).
Unlisted shares are valued at investment book value; listed shares are marked to market.

10

Content Segment: Sales and Operating Income
Q2 sales and operating profit were up 2% and 16% YoY, respectively. The results were in line with our plan,
and we intend to maintain stable sales and earnings in Q3 and beyond in this segment, which we consider as
our earnings driver.

Sales Trend (Millions of yen)

Operating Income Trend (Millions of yen)
YoY

＋2%
749

760
694

671

668

660

YoY

＋16%

174
149

125

116
76

74

Q1

Q2

Q3
FY03/21Q4Q1Q2
FY03/22Q1Q2Q3
FY03/21Q4Q1Q2
FY03/2211

Ad Technology Segment: Sales and Operating Income
Q2 results were roughly flat YoY in Web Install Ad, our continuing business.
We will aim to maintain stable sales and earnings in Q3 and onward in this segment, which we consider as
an earnings driver.

Sales Trend (Millions of yen)

Operating Income Trend (Millions of yen)

App Install Ad (Discontinued)
Web Install Ad (Continuing)

375

359
YoY
-27%

330
131

102

85

260

268

40

243

Q1

YoY
-12%

257

244

Q2

Q3
FY03/21261
Web Install Ad
YoY+1%268

Q2
FY03/22

161

16

21

155
144
118
9

129

Q1

165
24

261

219

Q4

153

Q1

148

Web Install Ad
YoY -2%

155

140

144

109

Q2

Q3
FY03/21Q4Q1Q2
FY03/2212

Agenda1

Financial Highlights of 1H FY03/22

P１

2

Performance by Segment in Q2 FY03/22

P７

3

Growth potential of the DX Platform
Segment

P13

4

Growth potential of the Investment
Segment

P31

5

Appendix

P39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material was
created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks or registeredtrademarks of the respective companies.
13

DX Platform Segment: Overall Policy
We will promote the digital transformation (DX) of individuals and companies, and advance DX in society
as a platform that can also match the two. In addition to growing our existing businesses, we plan tostrengthen our M&A and strategic investment efforts.

Business for Individuals

Match companies andindividuals

Business for Companies

IT Training forcompanies

Existing
Businesses

TechAcademy

TechAcademy WorksTechAcademy Career

*1
*2

M&A

*1 TechAcademy Works provides TechAcademy graduates with the opportunity to gain practical experience before findinga job or starting their own business by working with mentors on real-world projects.
*2 TechAcademy Career provides career support to TechAcademy graduates and recruitment support to companies.

14

DX Platform Segment: Policy by Business

KiRAMEX Co.

Position as top-priority business and aim for medium-term growth byraising the value we provide as well as expanding business areas

Brewus, Inc.

Aim to increase the number of projects through customer cultivation
leveraging the company’s superior technological expertise in app
development.

DX Solution Division

Step up efforts to maximize company-wide sales and earnings bycooperating with the in-house businesses to support customers’ DX
initiatives

Existing
Businesses

LIBASE Inc.
New
Businesses

IKETERU DUDES, Inc.
(wholly owned subsidiary of
KiRAMEX Co.)

Increase the number of projects available to TechAcademy graduatesby improving the organizational structure, enhancing the ability to attract
customers, and cooperating with KiRAMEX Co.
Operate MOOCRES, a hands-on-style school for video creators;
drive business expansion by improving the organizational structure,enhancing the ability to attract customers, and cooperating with
KiRAMEX Co.
15

DX Platform Segment:
Market Environment—DX Market Growth and Rising Need for External Service Providers
The DX market is expected to continue to grow in Japan, with the market size projected to reach ¥3,042.5
billion in 2030, approximately 3.8 times the size in 2019. The share of companies opting to use external
service providers in their DX implementation is also on the rise. Therefore, the need for corporate DX support
in areas such as app/systems development and DX consulting will likely increase going forward.
Progress in the use of external service
providers in DX initiatives

Growing DX market
Domestic DX market size*1(amount invested)(100 millions of yen)

Share of companies using external service
providers for their DX implementation *2

About 3.8x30,425

55.3%
51.5%

7,912
2019

2030

2018

2020

(n=163)(n=228)*1 Fuji Chimera Research Institute (2020) “2020 Future Prospects of Digital Transformation Market” Domestic ICT-related investment for the purpose of digital transformation*2 Fuji Chimera Research Institute (2020) “2020 Future Prospects of Digital Transformation Market” Share of companies using external service providers or using both internal resources andexternal service providers to implement or test digital transformation
16

DX Platform Segment:
Market Environment—IT Talent Shortage
Amid DX market growth, the society at large is facing shortages of talent capable of driving digitaltransformation, and the rise in demand for domestic IT personnel will likely outpace the increase in supply. We
expect the demand for personnel training to also grow, since the lack of IT skills and talent is viewed as an
obstacle to DX advancement.
Expanding IT Talent Shortage
Supply and demand of IT
personnel in Japan *1(‘000 people)

Rising demand for IT skills and personnel
Barriers to DX advancement *2(n=1,649)

IT personnel shortage in JapanIT personnel in Japan

1st

Lack of digital/technology-related
skills and personnel

2nd

Cost of investment

3rd

Lack of ability to design andimplement new operational
processes

4th

Current internal management
structure

5th

Corporate culture

790
410

1060

2020

1130

2030

*1 Ministry of Economy, Trade and Industry “Survey on Supply and Demand of IT Human Resources” (2019). IT personnel defined as including systems consultants anddesigners, software creators, and other information processing and communication engineers*2 Dentsu Digital (2020) “Corporate Digital Transformation Survey in Japan (2020).” Results of survey targeting employees of Japanese companies with 500 or more
employees
17

DX Platform Segment: Market Size
On top of KiRAMEX Co.’s business domain of programming education and IT training, we will widen ouroperations into the digital personnel services market, including recruitment support, and further expand into thedomestic IT market, including app and system development.

Programming
education &IT training market *¹¥105.4 billion

Digital personnel
services market *²¥913.5 billion

Domestic IT market *³¥12.35 trillion*1 Company's own estimate of the FY2021 programming education market for individuals of ¥29.4 billion, based on GMO Media, Inc. and Funai Research Institute's "2020
Programming Education Market
Survey for Children" and interviews with competitors, plus ¥76 billion for the corporate IT training market, extracted from Yano Research Institute's "Corporate Training
Service Market Status and Outlook 2020"*2 The digital personnel services market is the sum of the digital personnel development and training services, digital personnel staffing services, and digital personnel
placement services markets for FY2021,
based on a survey conducted by Yano Research Institute on the digital personnel services market (2021). Digital personnel is defined as information
processing/telecommunications engineers, DX-related
project promotion personnel, etc.
*3 Forecast of domestic private-sector IT investment (including hardware, software, and services) for FY2021, based on "Survey on IT Investment by Domestic
Companies (2020)" by Yano Research Institute18

KiRAMEX Co.: Services

At our top-priority business KiRAMEX Co., we operate various services centered on TechAcademy, an
online school for programming.

CareerOnline school for programming and app development

IT Training
Online training for companies

Career support service dedicated to TechAcademy students

Junior
Programming school for children

19

KiRAMEX Co.: Business Model
While positioning the TechAcademy at the core of our business model, we are expanding into new businesses
including IT training services for corporate customers as well as recruitment support services at TechAcademy
Career targeting companies that are keen to hire.

Companies

Individuals
IT
Training

・Teach・Provide educational content
・Provide career support

Students￥

・Teach・Provide educational content

KiRAMEX Co.

TuitionCompanies
adopting training

TuitionJuniorPartner tutoring
schools￥￥

Service
fees

Career・Provide educational content
・Provide platform

・Provide recruitment support
・Provide platform￥￥

Platform usage fee

Mentors

Employers

Platform usage fee

20

KiRAMEX Co.: Growth Strategy

We plan to increase student enrolment by broadening our target student base and business areas. At thesame time, we are improving the quality of education we provide by strengthening our services for
TechAcademy graduates and enhancing ancillary services. Through these initiatives, we aim to maximize IT
talent.
Overview of growth strategy
1. Expand student
base・Increase the number of courses

2. Expand businessareas

・Promote business development in
multiple areas(TechAcademy Junior, IT Training)

3. Strengthen services
for graduates

・Expand TechAcademy Works

4. Enhance ancillary
services

・Increase high-value-added courses

Increase student
enrolment

Maximize IT talent

Improve education
quality21

KiRAMEX Co.: 1. Expand Student Base

We are continuing to increase courses to raise student enrolment. We intend to expand our student base by
not only covering typical web development, but offering a range of programs from introductory courses for nonengineers to those covering advanced technologies such as AI.

Major course offerings

Increase in number of courses offered

59

Number of Courses Offered*

41

24
19
13

FY03/17
2017年

FY03/18
2018年

FY03/19
2019年

FY03/20
2020年

FY03/21
2021年

3月末

3月末

3月末

3月末

3月末

* Includes corporate training courses
22

KiRAMEX Co.: 2. Expand Business Areas

We have expanded services into new business areas such as TechAcademy Junior for children and
TechAcademy IT Training for companies. The numbers of students and customer companies at therespective businesses have grown steadily.
TechAcademy Junior

TechAcademy IT Training (for companies)

Student count grew sharply, fueled by the Japanese
government’s move to make grade-school programmingclasses a requirement in FY2020, and by the increase inservice adoption at tutoring schools.

Corporate customers grew steadily, owing to risingneeds for online training and demand for education tofoster DX personnel.

Student Enrolment

Companies Adopting Training

YoY

YoY

+569%

+29%

FY03/20

FY03/21

FY03/20

FY03/21
23

KiRAMEX Co.: 3. Strengthen Services for Graduates
We launched our new service TechAcademy Works.
By having active engineers/designers and TechAcademy graduates form a team to jointly engage in real-world
projects, we can support the graduates in their achievement of practical skills and add further value to the services
we provide.
TechAcademy Works

Status of TechAcademy Works

Before finding employment, switching jobs, or starting theirown business, graduates can gain practical skills by
working on real-world projects with the support of mentors.

Launched in FY03/21, TechAcademy Works is steadily
increasing the number of projects it handles.
Number of executed projects*
QoQ

Step 1

Learn
programming

Step 2

TechAcademy
Works

Step 3+251%

Find employment,change jobs, startown business,
etc.

KiRAMEX Co. accepts
projects from companies,
and graduates work withmentors to complete them
Q1

Q2
FY03/22* Number of development projects TechAcademy Works delivered to customers(number of completed projects after customer inspections)

24

KiRAMEX Co.: 4. Enhance Ancillary Services

We are building high-value-added courses that meet user needs, such as packaged courses that allow
students to learn multiple skills simultaneously and a course that assures career change.

Packaged courses

Engineer career-change assurance course

These courses seek to improve learning efficiency by providing a
package of multiple classes in related areas.

The course teaches programming skills that can help students
kick-start their careers immediately after employment.
Dedicated career counselors provide support until thestudents find employment.

セットコース
Examples:Python + AI package
Using Python to learn machine and deeplearning necessary for building AI

Front-end course and side business package
In addition to learning front-end technologies,
students can engage in real-world projects at
TechAcademy Works and gain skills to run aside business

25

KiRAMEX Co.: Competitive Environment and Positioning
Competition has intensified due to the increase in low-priced services.
We plan to build our competitive advantage by providing high-quality education programs taught by activeengineers, offering career change support after completion of courses, and referring development projects to
TechAcademy graduates.

Low-priced services
Pricing¥170,000 to ¥540,000¥50,000 to ¥100,000

Mentors

Active engineers who have passed
our selection process(Only 10% pass the selection)

Schools’ full-time teachers withexperience as an engineer

Mentoring

Conducted twice a week by a
dedicated active engineer

No

Development projectreferral to graduates

Yes(TechAcademy Works)

No

Career change
support

Applies to all courses

No

Access to hiring
companies

Over 1000 companies

No

26

KiRAMEX Co.: Competitive Advantage
We have achieved high education quality by deploying quality mentors, boosting student proficiency and retention
through mentoring, and enabling students to gain practical skills.

High-quality mentors
Roughly 1,000 quality mentors who havepassed the selection process based on
their technical and communications skills
provide instruction to our students. (Only
10% pass the selection.)
Active engineers* who havepassed our selection process(Only 10% pass the selection)

Improvement in proficiency andretention through mentoring

Achievement of practical skills

High education quality is achieved
through regular mentoring and daily Slacksupport from active engineers.

TechAcademy Works allows
TechAcademy graduates to work on realworld projects with their mentors and gain
practical skills during the process.

Mentoring from active engineers*・Online mentoring twice a week
・Daily Slack support from 3pm to 11pm

TechAcademy
graduate

Jointly engage
in real-world
project

All programming
instructors

Improve student proficiency
and retention

Mentor* Depending on the content, certain courses are taught by non-engineers (designers, marketers, etc.)* Offerings vary in certain courses
27

KiRAMEX Co. achieved the highest enrolment rate and customer satisfaction
among online programming schools
According to a survey of online programming school students, TechAcademy topped the list in terms ofattendance and customer satisfaction.

Please select all programming schools you enrolled in overthe past year.

Average satisfaction levelon a scale of one to five

Enrolment (%)

39.6%

TechAcademy

Company B

How satisfied were you with the programming school(s)you enrolled in?

27.8%

TechAcademy

4.29

Company B

4.27

Company C

21.1%

Company C

Company D

20.6%

Company D

Company E

19.8%

Company E

4.22
3.92
4.11

Method:Target:Online survey
1,000 male and female students of online
programming schools between the ages of 18 and 80
Surveyed by: GMO Research, Inc.
Period:August 12, 2021 to August 16, 2021
28

KiRAMEX Co. course certified by the Ministry of Economy, Trade and Industry
and the Ministry of Health, Labour and Welfare
The “engineer career-change assurance” course offered by TechAcademy was certified as a Fourth Industrial
Revolution Skills Courses under METI’s program*1 and became eligible for the Education and Training Benefit
System designated by MHLW*2.
Details of Certification

The “engineer career-change assurance” course deploys a team of mentor and career
counselor, which provides assistance from the learning stage through employment,
allowing individuals without any programming experience to pursue a new career as anengineer.
The course was certified based on an assessment that it contributed to thedevelopment of specialized and practical capabilities in fields strongly expected to growin the future.
Fourth Industrial Revolution Skills Courses *1
Specialized and practical education and training courses certified by the Minister of Economy, Trade and Industry.
The courses aim for working adults to acquire a high degree of specialization and advance their careers in fields
centered on IT and data that are strongly expected to grow in the future and contribute to job creation.
Education and Training Benefit System *2
A system that promotes stable employment and reemployment of the workforce by partially subsidizing tuition for
education and training programs to support the efforts of workers to acquire skills or develop their careers in themedium to long term.
*1 Ministry of Economy, Trade and Industry, “Certification Program for Fourth Industrial Revolution Skills Courses”*2 Ministry of Health, Labour and Welfare, “Education and Training Benefit System”
29

DX Platform Segment: Strengthening Support to Bring Digital Transformation to SMEs
We invested in Quzilla No. 1 Fund that supports the growth of small- to medium-sized enterprises (SMEs)
using the power of “digital x capital.” Through collaboration with the DX Platform Segment, we aim topromote the digital transformation of SMEs.
Details of Collaboration

・Raise the value of our investees by leveraging the DX expertise of Quzilla Capital

・Provide DX support to SMEs through our DX Solution Division
・Use TechAcademy to foster digital talent・Handle development projects through TechAcademy Works

Quzilla Capital, Inc.
Representative: Shinji Takeuchi, CEOBusiness: Operation of fund to support SME growth; provision of DX support
Fund: Quzilla No. 1 Investment Limited Partnership (established September 2021)

30

Agenda1

Financial Highlights of 1H FY03/22

P１

2

Performance by Segment in Q2 FY03/22

P7

3

Growth potential of the DX Platform
Segment

P13

4

Growth potential of the Investment
Segment

P31

5

Appendix

P39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material
was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks or registeredtrademarks of the respective companies.
31

Investment Segment: Business Model

Source・Through our management team’s network and cooperation with external funds,
we identify potential investee candidates among various startups and build
relations with them.

Invest・ Within the investee candidates, we select those companies that wedetermine as having growth potential, and make investments following
capital policy discussions and due diligence.

Providebusiness
support・We provide various types of business support to help resolve themanagement challenges of our investees and maximize their corporate value.

Exit・When our investees achieve growth, we obtain capital gain by selling ourshareholdings in them at the time of their IPO or M&A.

32

Investment Segment: Domestic Market Environment
Total capital raised by startups in Japan dipped temporarily in 2020 due to the impact of COVID-19, but figures
display an upward trajectory on the medium to long term. The number of IPOs increased in 2020, unaffectedby the pandemic.

Capital raised by Japanese startups*1

Startup IPOs in Japan*2(Billions of yen)

552.2
473.8

(Number of companies)

522.2

46

43

2017

2018

2019

39

348.5

50

47

251.1

2016

2017

2018

2019

2020

2016

2020

*1 Source: “2021 JAPAN Startup Finance” Capital-Raising Trends of Japanese Startups, by INITIAL, Inc.
“Startup” is defined as a Japanese private company (including domestic company established by a foreign national and overseas company establishedby a Japanese national) that offers unique technology, products, services, or business model, invests toward business growth, and makes businessexpansion efforts.
*2 Source: “2021 JAPAN Startup Finance” Number of Startup IPOs in Japan, by INITIAL, Inc.
Compilation of companies that have received financing from venture capital firms, as indicated in their securities reports filed at the time of IPO.
33

Investment Segment: Competitive Environment

While fewer corporations are providing capital to startups, investments by venture capital firms including
corporate venture capital*1 are trending upward.

Companies investing in Japanese startups*2(Number of companies)
Venture capital firms (including corporate venture capital)
Corporations (excluding corporate venture capital)

771

735

679

586
509
252

227

2016

2017

285

2018

322

2019

355

2020

*1 Corporate venture capital refers to entities that mainly invest in or provide support to private startups through funds originated by corporations
using their own capital.
*2 Source: “2021 JAPAN Startup Finance” Annual Total of Investment Companies Providing Capital to Startups (breakdown by investor type), by INITIAL, Inc.
34

Investment Segment: Track Record of Investment in Startups
We have been able to source investees by leveraging the network of our management team, and provide
management support to them through our experience as a company. These strengths have enabled us toachieve a high ROI.

Investment track record *1

Investments
made89 companies

Invested amount¥5.1 billion

Returns*2¥64.1 billion

ROI

12.7x

Average ROI ofventure capital
investment inJapan*3: 2.4x＞

*1 Covers period from FY03/13 to Q2 FY03/22.
*2 Total of gains on sale of shares and values of listed shares held by the Company (as of September 30, 2021).
*3 Source: Based on the “Third Update on Survey on Domestic VC Performance Benchmarks (2020)” released by Japan Venture
Capital Association. Calculated the median value of the annual net multiples (X) of funds that were established between 2010 and 2015 andare in the stage of actively realizing returns.
35

Investment Segment: Track Record of Major Exits

※

IPO*

M&A*

* Covers the period from FY03/13 to Q2 FY03/22
36

Investment Segment: Competitive Advantage

Our investments in multiple external funds as an LP have allowed us to reach out to over 1,000 startups.

Fund investment as LP

Major funds we invested in as LP

Invested in

35 funds
Supported thefinancing ofover 1,000 startups
through investmentin these funds

37Investment Segment: Potential for Future Growth (Main Investees)
We have a diverse investment portfolio, and expect to generate sustainable capital gains by continuing to invest
in a wide range of startups that present growth potentials.

Post IPO

Middle to later stage

Seedto early stage
シード～アーリー

38

Agenda1

Financial Highlights of 1H FY03/22

P１

2

Performance by Segment in Q2
FY03/22P7

3Growth potential of the DX Platform
Segment

P13

4

Growth potential of the Investment
Segment

P31

5

Appendix

P39

All opinions, forecasts, and outlooks expressed in this presentation reflect the judgement of United, Inc. based on the information available at the time the material
was created, and actual performance and results may differ substantially due to changes in various factors. Company names and product names are trademarks orregistered trademarks of the respective companies.
39

Risk Recognition and Countermeasures

Item

Affected segments

Main risk

Technologicalinnovation

DX Platform
Content
Ad Technology

Existing businesses
becoming obsolete due
to spread of newtechnologies

Investment

Business
environment

Competitiveenvironment

Investment

Changes in market
conditions
Sluggish performance ofinvestees

Content
Ad Technology

Slowdown of overall
internet market due tointroduction of new
regulations, etc.

DX Platform

Increase in the number ofservice providers
fostering DX talent, andintensified competition

Occurrence
Durationprobability

Low

MediumLow

MediumLong
term

Mediumterm

Mediumterm

Mediumterm

ImpactCountermeasures

Large

We use our extensive network withstartups to collect information at an
early stage, and take measures suchas M&A activities as necessary.

Large

We alleviate our overall risks bydiversifying our investments as well
as operating other businesses thatare lower in volatility than investment
activities.

Large

We diversify our risks by operating
businesses in the DX Platform
Segment and Investment Segment,
which do not rely entirely on theinternet market.

MediumWe make ongoing efforts to evolveand differentiate our business modelby launching new businesses,
conducting M&A, and making
strategic investments.

* For other risks recognized by the Company, please see the “Business and Other Risks” section in our annual securities report.
40

Consolidated P/L Statement for Q2 FY03/22
Difference
Q2 FY03/21

Q1 FY03/22

Q2 FY03/22
YoY(Millions of yen)

1,971

4,752

DX Platform Segment

712

540

Investment Segment

152

3,283

Content Segment

749

660

Ad Technology Segment

359

268

Other Segment

-3

-

925

3,651

DX Platform Segment

234

-3

Investment Segment

82

3,226

Content Segment

347

223

Ad Technology Segment

262

204

Other Segment-2-

SG&A expenses

760

647

Operating Income

164

3,003

DX Platform Segment

68

- 170

Investment Segment

17

3,202

Content Segment

149

76

Ad Technology Segment

165

155

Other Segment

- 236

- 260

Ordinary※Income

256

3,008

Net Income*

16

2,060

Sales

Gross Profit

3,347
565
1,761
760
261
-1
2,213
93
1,602
324
193
657
1,556
- 119
1,577
174
144
- 221
1,544
1,086

+70%
- 21%
+1,053%
+2%
- 27%
+139%
- 60%
+1,838%
- 7%
- 26%
- 14%
+846%
+9,072%
+16%
- 12%
+501%
+6,489%

QoQ

- 30%
+4%
- 46%
+15%
- 3%
- 39%
- 50%
+45%
- 5%
+2%
- 48%
- 51%
+127%
- 7%
- 49%
- 47%

* Refers to net income attributable to owners of parent
41Consolidated Balance Sheet for Q2 FY03/22(Millions of yen)

Current Assets

End of FY03/21(March 31, 2021)

End of Q2 FY03/22(September 30, 2021)

Difference

46,11548,664+2,548Cash & Deposits

13,774

14,350+576

Operating Investment Securities

30,95332,320+1,366 *

1,240

1,629

+389

-

366

+366

Total Assets

47,35650,294+2,938Current Liabilities

3,114

3,409

+294

Non Current Liabilities

8,206

8,472

+266

8,098

8,305

+206 *

Total Liabilities

11,321

11,882+561

Net Assets

36,034

38,411+2,376

18,571

19,337+765

Non Current Assets
Amortization of Goodwill

Deferred Tax Liabilities

Unrealized Gain on Securities** Of this amount, the impact of revaluation (mark-to-market) and disposal of operational investment securities (listed shares) was as follows:
operational investment securities, +¥989 million; deferred tax liabilities, +¥322 million; and valuation difference on available-for-sale securities, +¥730 million.
42

Consolidated Cash Flow Statement

1H FY03/21

1H FY03/22*1

Difference*2

Cash Flow from Operating Activities

6,721

2,905

Cash Flow from Investing Activities

- 56

- 377

Cash Flow from Financing Activities- 306- 1,951- 1,645

14,73914,350- 389

Cash and Cash Equivalents at
End of Period*3- 3,816- 320*1 The amount factors in ¥5,502 million from sale of operational investment securities and ¥459 million from income taxes refunded*2 The amount factors in ¥4,856 million from sale of operational investment securities and -¥1,428 million from income taxes paid
*3 the amount factors in -¥1,499 million from share repurchase and -¥415 million from cash dividends paid
43Consolidated Sales and Operating Income in Previous Fiscal Years(Millions of yen)

Recorded gains on thesale of securities
accompanying the listingof Mercari, Inc.

Sales
Operating Income

Profitability improved despite
lower sales due to the completionof selection and concentration

22,31816,267
13,00012,609
8,385
5,552

1,509

FY03/16

11,084

8,383
1,395

FY03/17

5,101

1,648
FY03/18

FY03/19

FY03/20

5,606

FY03/215,700

FY03/22(Forecast)44

Number of Consolidated Employees and Directors(Numbers employed)
Temporary employees

653

Other full-time employees (Investment Segment/HQ staff)

612
135
126
51

540

Decline in number ofconsolidated subsidiaries
due to realignment
centered on focus areas

DX Platform Segment full-time employees

48
97

46
79

307

365
74

23
11

31
11

Q1

Q2

Q3

FY03/20

50
42

348

342

332

334

335

48

49

50

48

54

39

41

37
32

34
32

70

68

57

40

37
35

101

97

97

94

97

97

134

65

96

99

107

108

112

110

267

21
11

Officers (Directors and corporate auditors of parent,
including outside directors/auditors)

400

46

332

Content Segment full-time employees

Personnel transfers
accompanying shift in
focus to the DX Platform
Segment

106

103

Ad Technology Segment full-time employees

11

8

8

8

8

8

8

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY03/21

FY03/2245