Second Quarter, Fiscal Year Ending March 2021

Financial Results
November 9, 2020

United, Inc.
(TSE Mothers：code 2497)

Agenda1

Financial Highlights of H1 FY03/21

P1

2

Performance by Segment in Q2 FY03/21

P4

3

Management Policy and Earnings Forecast

P15

4

Appendix

P21

This presentation contains statements describing future plans, strategies, and performance forecasts of United and its affiliated companies. These statements
reflect forecasts based on management’s assumptions and beliefs using information available as of the date of this presentation. The accuracy of this information
is not guaranteed. Actual performance may differ substantially due to unforeseen circumstances in the operating environment. Company names and productnames are trademarks or registered trademarks of their respective companies.

1Financial Highlights of H1 FY03/21

Consolidated
Operating
Performance

Sales :
¥11,008 million (-3％ YoY)
Operating Income : ¥5,465 million (+108％ YoY)※

Excluding the Investment Segment:

Sales:¥5,399 million ( -24％ YoY)
Operating Income: ¥ 63 million (＋¥1,313 million YoY)DX Platform
Segment

Sales:¥1,237 million (+57％ YoY)
Operating Income:¥57 million (-46% YoY)

Q2 quarterly
earnings

P6

Investment
Segment

Sales:¥5,609 million (+33％ YoY)
Operating Income: ¥5,402 million (+39% YoY)

Q2 quarterly
earnings

P11

Ad Technology
Segment

Sales:¥2,955 million (-13％ YoY)
Operating Income:¥429 million (+27% YoY)

Q2 quarterly
earnings

P13

Content Segment

Sales:¥1,212 million (-59％ YoY)
Operating Income: ¥106 million (+¥1,289 million YoY)

Q2 quarterly
earnings

P14
2

Consolidated P/L Statement
Gross profit increased 35% YoY due to expansion of the DX Platform Segment, which has shown continuous growth.
SG&A expenses decreased by 39% YoY due to a reorganization of the business portfolio implemented in FY03/20 and the
reduction of office-related expenses due to the shift to telework.
We plan to further reduce office-related expenses by cancelling additional head office lease contracts within the fiscal year.
H1 FY03/20
Excl. Investment
Segment(Millions of yen)YoY

H1 FY03/21
Excl. Investment
Segment

Excl. Investment
Segment

Sales

11,305

7,101

11,008

5,399

-3%

-24%

Gross profit

5,234

1,283

7,053

1,566

+35%

+22%

SG&A expenses

2,606

2,533

1,587

1,503

-39%

-41%

527

527

57

57

-89%

-89%

2,078

2,006

1,530

1,445

-26%

-28%

2,628

-1,250

5,465

63

+108%

+1,313Non-operating income

5

5

98

98

+1,605%+1,605%Non-operating expenses

55

55

4

4

-93%

-93%

2,578

-1,299

5,560

158

+116%

+1,457Extraordinary profit

10

10

8

8

-13%

-13%

Extraordinary loss

193

193

176

176

-9%

-9%

Profit before income taxes

2,395-1,483

5,392

-9

+125%

+1,473Net Income

1,273

N/A

3,723*2

N/A

+192%

N/A

Goodwill amortization
Other
Operating Income

Ordinary Income*1*1: Of this amount, ¥116 million in extraordinary loss accompanying
withdrawal from the App Install Ad services*:2 Refers to net income attributable to owners of parent.

3Agenda1

Financial Highlights of H1 FY03/21

P1

2

Performance by Segment in Q2 FY03/21

P4

3

Management Policy and Earnings Forecast

P15

4

Appendix

P21

This presentation contains statements describing future plans, strategies, and performance forecasts of United and its affiliated companies. These statements
reflect forecasts based on management’s assumptions and beliefs using information available as of the date of this presentation. The accuracy of this information
is not guaranteed. Actual performance may differ substantially due to unforeseen circumstances in the operating environment. Company names and productnames are trademarks or registered trademarks of their respective companies.

4

Operating Income, by Segment
Due to business growth in the DX Platform Segment and profitability improvements in the Ad
Technology Segment and Content Segment, operating income for these three segments
combined (Investment Segment excluded) increased by ¥590 million YoY.

～
5,595

12,777～～

12,791

1,960
2,081
1,179

5,384

878

179
2,491

1,670
1,386
1,001

586

175
113
58
35
(108)

137
61
(136)

DX Platform
Investment

256
103
1

202
(7)

(655)

(601)

138
38

17
85

199

280

67

17

(473)

(419)

116

21
206
(17)

223
74
383
+590 million(708)

Ad Technology(206)

Content(4)(Millions of yen)

(555)

Q1

400
38

Q2

Q3
FY03/19

Q4

Q1

Q2

Q3
FY03/20Q4Q1Q2FY03/21

Note: Excludes headquarters expenses.

5

DX Platform Segment: Sales and Operating Income
Sales increased 64% YoY due to growth of KiRAMEX Co.
Operating income fell YoY in Q1 due to the addition of development resources at Brewus, Inc.
However, this negative impact was outweighed in Q2 by accelerating growth at KiRAMEX Co.,
resulting in an 11% YoY increase in operating income.

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)712

692
YoY ＋64％

116
525
YoY＋11％

434

74

413
61

351
282

222

67

38

35
201

224

17
1
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

(7)
(17)
Q1

Q2

Q3

FY03/19

Q4

Q1

Q2

Q3

FY03/20

Q4

Q1

Q2

FY03/21

FY03/19

FY03/20

FY03/216

Financial Highlights of KiRAMEX Co.
Growth in the number of students at the TechAcademy online programming school is accelerating.
YoY growth versus FY03/20. Q2 sales at KiRAMEX Co. were up 88% YoY and operating income rose
131% YoY. From Q3 onward, we plan to make additional investments such as bolstering the businessstructure for further growth.

Number of Students (FY)*

Sales (Quarterly)

636

511
400

310

Growthaccelerating

Q1

338

307

Q2

Q3

YoY ＋88％

Q4

Q1

FY03/20Q2

FY03/21130

Operating income (Quarterly)
91
25,242

YoY ＋131％56
43

17,742

Increase inpersonnel
expenses
15

11,58410

3,880

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

Q1

Q2

Q3

FY03/20

Q4

Q1

Q2

FY03/21*Total for paying/free members of Online Bootcamp and corporate training.
7

Business Tie-ups: FABRIC TOKYO Inc., IREP Co., Ltd.

We formed business tie-ups with a number of companies that have specialized expertise.

Tie-up with FABRIC TOKYO Inc.

In partnership with FABRIC TOKYO, Inc., which operates adirect-to-consumer (D2C) brand, we will provide D2C brandcreation support and OMO consulting services.

Tie-up with IREP Co., Ltd.

In partnership with IREP Co., Ltd., which has abundant
expertise in B2B marketing, we will provide one-stop
services covering everything from creation of marketingstrategies to app and system development.

FABRIC TOKYO, Inc. Overview
Representative : Yuichiro Mori, Representative Director

Business: Operation of FABRIC TOKYO, a customizable, direct-toconsumer apparel brand

IREP Co., Ltd. Overview
Representative : Shuichi Takanashi, President and Representative Director

Business: Ad agency business, solutions business,creative business, others

8

KiRAMEX Co. courses certified by the Ministry of Economy, Trade and Industry andthe Ministry of Health, Labour and Welfare
TechAcademy became the first online school to have 15 of its courses certified as Fourth Industrial
Revolution Skills Courses by the Ministry of Economy, Trade and Industry and as part of the
Education and Training Benefit System designated by the Ministry of Health, Labour and Welfare.

Details of Certification
Certification was granted to 15 courses created by
combining the currently offered courses on data science,
AI and Python in line with targeted skills and study plans.
Our courses were recognized as being able to promote
the acquisition of practical skills in future growth fields.

Data Science Courses

AI Courses

Python Courses

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 thatare expected to grow rapidly in the future and contribute to job creation

Educational Training Benefit System*2
A system that promotes stable employment and reemployment of the workforce by partially subsidizing tuition for education andtraining programs to support the efforts of workers to acquire skills or develop their careers in the medium- to long-term.

*1 Source: Ministry of Economy, Trade and Industry, “Certification Program for Fourth Industrial Revolution Skills Courses”*2 Source: Ministry of Health, Labour and Welfare “Education and Training Benefit System”
9KiRAMEX Co. achieved the highest enrollment among online programming school

According to a survey of online programming school students, KiRAMEX topped the competition in enrollment.

Please select every online programming school whose
courses you are enrolled in.

Please select the main online programming school whose
courses you are currently enrolled (choose one).

Unit: Enrollment (%)

Company B

Company C

Company C

Company B

Company D

Company D

Company E

Company F

Company F

Company E

Company G

Company G

Other

Other

Method:Target:Company:
Period:Online survey
1,004 male and female attendees of online programming
schools between the ages of 18 and 59
Macromill, Inc.
Aug. 7, 2020 to Aug. 17, 202010

Investment Segment: Sales and Breakdown of Operational Investment Securities
We recorded sales of ¥152 million on the disposal of investee shares and the booking of profit
distribution from fund investment as a limited partner. At end-Q2, operational investment
securities totaled ¥30,626 million.*
Sales Trend (Millions of yen)
12,901～

Breakdown of Operational Investment Securities

2,637

5,456

～

～

InvesteeCompanies

1,788

831

152

142
10
Q1

Q2

Q3

FY03/19

Q4

Q1

Q2

Q3

FY03/20

Q4

Q1(amount on BS)

Listed shares

Mercari, Inc.
SOCIALWIRE Co., Ltd.
CyberBuzz, Inc.

Approx. ¥26.4 Bn

Unlisted
sharesMore than
50 companies

Approx. ¥2.7 Bn

Investment infunds as LP

More than
25 funds

Approx. ¥1.5 Bn

1,566

1,083

As of September 30, 2020

Q2

FY03/21* Of this amount, operational investment securities related to Mercari totaled ¥25,462 million (3.4% of voting rights held, as of September 30, 2020).
Unlisted shares are valued at investment book value; listed shares are marked to market.
11

Investment Segment: Investment Portfolio

Major Directly Invested Start-ups
Post IPO

Major Invested Funds as LP

Seed ~ Early

Middle ~ Later

12

Ad Technology Segment: Sales and Operating Income
Sales decreased by 12% YoY as we shifted toward profitability-oriented operations in the App Install Ad
business. Operating income increased 12% YoY due to the abovementioned improvement in profitability andexpansion of demand in Web Ad business. We have decided to withdraw from the App Install Ad domain within
FY03/21 due to changes in the business environment.

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)
Marketing
App Install Ad

Operating income
Gross profit margin*

22%

Web Ad

23%
20%

19%
1,934

YoY -12%1,840
1,704 1,706

1,739

16%

17%

1,794

1,643

19%

280

1,573

12%

1,510

256

1,444
8%

8%

223
202

206

199

YoY ＋12%

138

137
103
58

Q1

Q2

Q3

FY03/19

Q4

Q1

Q2

Q3

FY03/20

Q4

Q1

Q2

FY03/21

Q1

Q2

Q3

FY03/19

Q4

Q1

Q2

Q3

FY03/20

Q4

Q1

Q2

FY03/21* Gross profit margin trends excluding the marketing business.

13

Content Segment: Sales and Operating Income
Sales for International Sports Marketing Co., Ltd. (sports-related business) and Fogg, inc. (entertainment-related
business) deviated from the initial plan due to the cancellation of events caused by COVID-19.
In addition, sales fell by 58% YoY as business contracted on the withdrawal of discontinued businesses.
On the other hand, operating income rose by ¥559 million YoY due to the completion of the withdrawal.

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)

YoY

Discontinued operations*1+559 百万円

Continuing operations*2

38

1,946

75

1,783

Q1

-183

1,524
1,407

1,396
YoY -58%

1,134
853

899

761

842

Q2

69

48

29

Q3

Q4

Q1

87

58

Q2

Q3

-256

-108

1,205

1,056

120

-478

-136
-725

-650

95

21

85

60

85

Q4

Q1

Q2

-57

-38
Withdrawal
completed

-561
-738

872

360

-419

276

227

570

641

-473

4
623

696

741

Q1

Q2

Q3

FY03/19

648

Q4

564

Q1

670

635

644

Q2

Q3

Q4

FY03/20

566

Q1

-601
641

-655

-708

Q2

FY03/21

FY03/19

FY03/20

FY03/21*1: Smarprise, Inc., ALAN-PRODUCTS, Inc., RAPS Inc., CocoPPa Dolls, etc.
*2: Fogg, inc., TREiS, inc., International Sports Marketing Co., Ltd., CocoPPa Play

14

Agenda1

Financial Highlights of H1 FY03/21

P1

2

Performance by Segment in Q2 FY03/21

P4

3

Management Policy and Earnings Forecast

P15

4

Appendix

P21

This presentation contains statements describing future plans, strategies, and performance forecasts of United and its affiliated companies. These statements
reflect forecasts based on management’s assumptions and beliefs using information available as of the date of this presentation. The accuracy of this information
is not guaranteed. Actual performance may differ substantially due to unforeseen circumstances in the operating environment. Company names and productnames are trademarks or registered trademarks of their respective companies.

15

Change in Corporate Structure
We will split off the Ad Technology Segment and the Game business from the parent company tofurther strengthen the DX Platform Segment, our growth driver. We will also consolidate theInvestment Segment under Venture United, inc. to have the parent company focus on the DX
Platform business.
Current

DX Platform

After Change

Investment

DX Platform
Ad Technology

Content

Related Companies
DX Platform

Investment

Content

Related Companies
DX Platform

Investment(consolidated)

Ad Technology(Split Off)

Content(Split Off )16

New Companies
In line with the split-off of the Ad Technology Segment and the Content Segment from the parent company, we
will establish two new companies. We aim for renewed business expansion by conducting agile business
management at both companies.

Ad Technology

Content

UNITED Marketing Technologies, Inc.

UNITED G&C, Inc. (Tentative name)- Company Profile -- Company Profile -Representative ：Masafumi Irako
Established

Executive Officer and General Manager of the Ad Platform
Business Department (Current)： February 1, 2021 (planned)
Shareholders ：¥10 Million
Business：UNITED, Inc. (100%)：Ad Technology Segment,
Web Ad business
CapitalRepresentative ：Susumu Ishizaki
General Manager of the Game Business Department(Current)

Established
CapitalShareholders
Business： February 1, 2021 (planned)：¥10 Million： UNITED, Inc. (100%)：1.Content Segment, Game business
2. Ad Technology Segment,
Marketing business17

FY03/21: Full-Year Consolidated Forecast

Net income expected to increase 156% YoY in the absence of the extraordinary loss frombusiness portfolio consolidation recorded in FY03/20

Consolidated
Forecast *1

DX Platform Segment
Forecast

Investment Segment
Forecast

Ad Technology Segment
Forecast

Content Segment
Forecast

Sales:¥16,300 million (YoY -22％)
Operating Income: ¥5,300 million (YoY +4%)
Ordinary Income: ¥5,300 million (YoY +4%)
Net Income*2:¥3,600 million (YoY +156%)
Sales expected to increase YoY on continued business growth. We plan to make additional investments forfurther growth from Q3 onward.

Sales:¥2,650 million (YoY +40％)
Operating Income:¥0 million (YoY -252 million)
In addition to the gain on disposal of shares in Mercari, Inc. in Q1, we expect a certain amount of capital gains
from other investees.

Sales:¥5,850 million (YoY -17％)
Operating Income: ¥5,450 million (YoY -17%)
Both sales and operating income expected to shrink due to withdrawal from the App Install Ad business.
Projecting sales and profit growth in the Web Ad business, which we will continue to operate.

Sales:¥5,450 million (YoY -20％)
Operating Income:¥650 million (YoY -26%)
Sales expected to fall YoY due to the impact of COVID-19 and the withdrawal of discontinued businesses, but
operating income projected to rise YoY as we excluded businesses from our scope of consolidation.

Sales:¥2,350 million (YoY -55%)
Operating Income:¥200 million (YoY +¥ 1,763 million)*1 These forecasts based on management’s assumptions and beliefs using information available as of the date of this presentation.
*2 Refers to net income attributable to owners of parent.
18Interim Dividend for FY03/21
We have decided on an interim dividend of ¥15, based on our policy of maintaining a
consolidated dividend payout ratio of 20%.

Details of Annual Dividends
FY03/21

Recorddate
Dividend
per
share
Total
annualdividends
Payoutratio(Annual)

FY03/20

InterimYear –EndInterimYear - End

Sep.30, 2020

Mar.31, 2021

Sep.30, 2019

Mar.31, 2020

¥ 15.0

Not yet determined¥ 11.0¥ 2.0¥ 335 million-¥ 245 million¥ 44 million

20.0%

20.8％

19

Share Repurchase
Plan share repurchase in order to improve capital efficiency and implement flexible capitalmanagement policy.

Overview
Total amount to be
repurchased
Total number of shares tobe repurchased

Up to ¥ 1.0 billion
Up to 500,000 shares(approx. 2.2% of the total outstanding shares (excluding treasury shares))

Repurchase Period

From Tuesday, Nov. 10, 2020 to Friday, Jan. 8, 2021

Method of share
RepurchaseMarket purchases on the Tokyo Stock Exchange(Market purchase based on discretionary dealing agreement)

20

Agenda1

Financial Highlights of H1 FY03/21

P1

2

Performance by Segment in Q2 FY03/21

P4

3

Management Policy and Earnings Forecast

P15

4

Appendix

P21

This presentation contains statements describing future plans, strategies, and performance forecasts of United and its affiliated companies. These statements
reflect forecasts based on management’s assumptions and beliefs using information available as of the date of this presentation. The accuracy of this information
is not guaranteed. Actual performance may differ substantially due to unforeseen circumstances in the operating environment. Company names and productnames are trademarks or registered trademarks of their respective companies.

21

Consolidated P/L Statement Q2 FY03/20
Difference
Q2 FY03/20

Q1 FY03/21

Q2 FY03/21（Millions of yen）

Sales
DX Platform Segment

Investment Segment
Ad Technology Segment
Content Segment
Other Segment

Gross Profit
DX Platform Segment
Investment Segment
Ad Technology Segment
Content Segment
Other Segment

SG&A expenses
Operating Income
DX Platform Segment
Investment Segment
Ad Technology Segment
Content Segment
Other Segment

Ordinary Income
Net Income *

YoY

5,221
434
1,566
1,706
1,524
-10
2,213
167
1,434
391
219
-0
1,279
933
67
1,386
199
-473
-245
915
508

7,994
525
5,456
1,444
570
-1
6,128
170
5,403
328
226
-0
827
5,300
-17
5,384
206
21
-294
5,303
3,706

3,013
712
152
1,510
641
-3
925
234
82
334
275
-2
760
164
74
17
223
85
-236
256
16

-42%
+64%
-90%
-12%
-58%
+7
- 58%
+40%
-94%
-15%
+26%
-2
-41%
-82%
+11%
-99%
+12%
+559
+9
-72%
-97%

QoQ

- 62%
+36%
- 97%
+5%
+12%
-1
- 85%
+37%
- 98%
+2%
+22%
-1
-8%
-97%
+91
-100%
+8%
+302%
+58
-95%
-100%

*: Refers to net income attributable to owners of parent.
22Consolidated Balance Sheet for End of Q2 FY03/21（Millions of yen）

Current Assets

End of FY03/20(Mar. 31, 2020)

End of Q2 FY03/21(September. 30, 2020)

Difference

32,00046,753+14,753

Cash & Deposits

8,381

14,739+6,357

Operating Investment Securities

20,992

30,626+9,634*

1,591

1,336

-255

114

57

-57

Total Assets

33,59248,090+14,498

Current Liabilities

2,124

3,320

+1,196

Non Current Liabilities

4,935

7,995

+3,059

4,582

7,852

+3,270Total Liabilities

7,060

11,316+4,256

Net Assets

26,532

36,773+10,241

11,662

18,245+6,583

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 +¥9,510 million, deferred tax liabilities +¥2,927 million, valuation difference on available-for-sale securities: +¥6,333 million
23

Consolidated Cash flow statement

FY03/20 H1

FY03/21 H1

Difference*1*2

Cash flow from Operating Activities

44

6,721

+6,676

Cash flow from Investing Activities

-377

-56

+320

Cash flow from Financing Activities-1,760-306+1,454

Cash and Cash Equivalents at
End of Period

6,725

14,739+ 8,013*3*1: Of this amount, -¥3,711 million from income taxes paid
*2: Of this amount, ¥5,502 million from disposal of operational investment securities, and ¥459 million from refunds on income taxes*3: Of this amount, -¥992 million from share repurchase, and -¥849 million from year-end dividends paid24Consolidated Sales and Operating Income in Previous Fiscal Years(Millions of yen)

Sales
Operating Income

27,58020,911
14,595

14,444

11,131

11,084

8,330
6,156

5,101
138

FY03/14370
FY03/15

1,509
FY03/16

1,395
FY03/17

1,648
FY03/18

FY03/19

FY03/20

25

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

653

645

Other full-time employees

619

Content full-time employees
Ad Technology full-time employees

146

DX Platform full-time employees

612
135

127

126

540

Directors(United directors, corporate auditors and outside directors)

453
380
96
26

401

404

425

51
56

106
48
46

88

385

400
365

78
117

108
38

28

80

74

46

138

144

50

54

42

320

327
314

46

303

42

184

12
12
1Q

93

13
12
2Q

89

13
12
3Q

FY 18/03

48
39

98

95

73

65

65

94

93

11
4Q

8
1Q

8
2Q

131

149
73

97

348

263
175

137

55

88
14
12
4Q

100

15
11
1Q

98
18
11
2Q

93
20
11
3Q

FY 19/03

90
21
11
4Q

108
21
11
1Q

101
23
11
2Q

83
31
11
3Q

FY 20/03

FY 21/03

26

DX Platform Segment: Group Companies and business overview

KiRAMEX Co.
Online Programming Education Business
Operation of a range of services (e.g., career support for
students, media management) centered on TechAcademy,
an online school where students learn about programming
and app development

Brewus, Inc.
App and System Development Business
Development across a wide range of domains focusing on
apps.

DX Consulting Business
Consulting services to support DX of companies

27

Ad Technology Segment: Product Overview

DSP specializing smartphones

App Install Ad

SSP specializing smartphones

Ad network optimizing ad effectiveness

Web AdComprehensive management platform for
optimizing ROI of app install ads
End of service scheduled for March 2021

Mobile video ad distribution platform
supporting various video ad formats
End of service scheduled for December 202028

Content Segment: Group Companies

Fogg, inc.
Operates CHEERZ, a service to help invigorate artists’activities

International Sports Marketing Co., Ltd.
Produces sports-related websites and plans anddevelops media

TREiS, inc.
Plans and operates Dream Mail, a sweepstakes
and gift site29