First Quarter, Fiscal Year Ending March 2021

Financial Results
August 5, 2020

United, Inc.
(TSE Mothers：code 2497)

Corporate Vision and Mission

Corporate
VisionTo become one of Japan’s preeminentinternet companies

MissionWe embrace challenges in order to create value
and contribute to society1Agenda1

Financial Highlights of Q1 FY03/21

P2

2

Performance by Segment in Q1 FY03/21

P7

3

DX Platform Segment

P15

4

FY03/21 Outlook

P22

5

Appendix

P24

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.

2

FY03/21 Segments

Growth Drivers

DX Platform Segment

Investment Segment

KiRAMEX Co.
Brewus, Inc.
DX Consulting Business
New Business(in preparation)

・Consists of KiRAMEX Co. (online programming education
business), Brewus, Inc. (app and system development business),and United, Inc. (DX Consulting Business).

Investment Business
Venture United, inc.

・Continue to invest in promising targets by expanding budget andstrengthening structure.

・Primary focus areas where we anticipate future growth.

Earnings Drivers
App Install Ad Business

Ad Technology Segment Web Ad Business
Marketing Business

Content Segment

Fogg, inc.
International Sports
Marketing Co., Ltd.
TREiS, inc.
CocoPPa Play・Maintain gross margin at improved level achieved in FY03/20, andcontinue to focus on profitability of operations.

・Aim to generate steady earnings by improving operating efficiency.

3

Financial Highlights of Q1 FY03/21

Consolidated
Operating
Performance

Sales :
¥7,994 million (+31％ YoY)
Operating Income : ¥5,300 million (+213％ YoY)※

Excluding the Investment Segment:

Sales:
Operating Loss:¥2,538 million ( -26％ YoY)*
¥ 83 million (＋¥713 million YoY)DX Platform
Segment

Sales:
Operating Loss:

Investment
Segment

Sales:¥5,456 million (+107％ YoY)
Operating Income: ¥5,384 million (+116% YoY)

Ad Technology
Segment

Sales:¥1,444 million (-15％ YoY)
Operating Income:¥206 million (+49% YoY)

Content Segment

Sales:
Operating Income:¥525 million (+50％ YoY)
¥17 million (-¥55 million YoY)¥570 million (-59％ YoY)
¥21 million (+¥729 million YoY)

4

Operating Income, by Segment
In the Investment Segment, we recorded ¥5,384 million in operating income as a result of selling operational
investment securities. Owing to the reorganization of the business portfolio in FY03/20, the other threesegments collectively booked a ¥741 million YoY increase in operating income.
5,595

12,777

～

1,960

～

12,791

2,081
1,179
878

179
2,491

～
5,384

1,670
1,386
1,001

586

175

38

113
58
35
(108)

256

137
61
(136)

DX Platform
Investment

103
1

202
(7)

(655)

(601)

138
38

199

280

67

17

(473)

(419)

116

+¥741
million(708)

Ad Technology
Content(4)(Millions of yen)

(555)

Q1

Q2

Q3
FY03/19

21
206
(17)
210

(530)
Q4

Q1

Q2

Q3
FY03/20Q4Q1
FY03/21

Note: Excludes headquarters expenses.

5Consolidated P/L Statement
Gross profit expanded 103% YoY, driven by growth in the DX Platform Segment.
Reorganization of the business portfolio reduced SG&A expenses by 38% YoY.

Q1 FY03/20
Excl. Investment
Segment(Millions of yen)YoY

Q1 FY03/21
Excl. Investment
Segment

Excl. Investment
Segment

Sales

6,083

3,445

7,994

2,538

+31%

-26%

Gross profit

3,020

505

6,128

724

+103%

+43%

SG&A expenses

1,326

1,302

827

808

-38%

-38%

263

263

28

28

-89%

-89%

1,062

1,038

798

779

-25%

-25%

1,694

-797

5,300

-83

+213%

+713

Non-operating income

4

4

6

6

+29%

+29%

Non-operating expenses

36

36

4

4

-89%

-89%

1,662

-828

5,303

-81

+219%

+747

Extraordinary profit

-

-

8

8

+8

+8

Extraordinary loss

159

159

3

3

-98%

-98%

Profit before income taxes

1,503

-988

5,308

-76

+253%

+912

N/A

+385%

N/A

Goodwill amortization
Other
Operating Income

Ordinary Income

Net Income

764

N/A

3,706

*

*: Refers to net income attributable to owners of parent.
6Agenda1

Financial Highlights of Q1 FY03/21

P2

2

Performance by Segment in Q1 FY03/21

P7

3

DX Platform Segment

P15

4

FY03/21 Outlook

P22

5

Appendix

P24

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.

7

DX Platform Segment: Sales and Operating Income
Sales grew 50% YoY thanks to ongoing business growth led by KiRAMEX Co. but declined QoQ, as completion(delivery and client inspection) of development projects at Brewus, Inc. was concentrated in the previous quarter.
Operating income expanded YoY at KiRAMEX Co. but fell ¥55 million YoY overall, due to the execution of growthinvestments (e.g., addition of development resources for business expansion at Brewus, Inc.).

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)
692

116

YoY ＋50％

525
434

413

351
282
222

67

61
38

35
201

YoY

224

17

-¥55 million

Q3

Q4

1
Q1

Q2

Q3

Q4

Q1

Q2

Q1

△7
△ 17
Q1

Q2

Q3

FY03/19

Q4

Q1

Q2

Q3

FY03/20Q4Q1

FY03/21

FY03/19

FY03/20

FY03/218

Financial Highlights of KiRAMEX Co.
The number of students at TechAcademy online programming school increased by roughly 6.5x in three
years. In Q1, sales grew by 1.6x YoY and operating income expanded by 2.1x YoY. We expect growth tocontinue in Q2 and beyond.

Number of Students (FY)*

Sales (Quarterly)
511(Unit: individuals)

310

approx.
338

1.6x

400

307

※

approx.

6.5x
1Q

2Q

3Q

4Q

FY03/20
25,242

FY03/21

Operating income (Quarterly)
87

17,742

approx.
56

11,5842.1x

43Increase inpersonnel
expenses
15

10

3,880

FY03/171Q

FY03/18

FY03/19

FY03/20

1Q

2Q

3Q

FY03/20

4Q

1Q

FY03/21*Total for paying/free members of Online Bootcamp and corporate training.
9Investment Segment: Sales and Breakdown of Operational Investment Securities
We recorded ¥5,456 million on the disposal of shares in Mercari, Inc.
As of end-Q1, operational investment securities totaled ¥22,457 million.*

Sales Trend (Millions of yen)

Breakdown of Operational Investment Securities

12,901

5,456

InvesteeCompanies

As of June 30, 2020
(amount on BS)

Listed shares

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

Approx. ¥18.4 Bn

Unlisted
sharesMore than
50 companies

Approx. ¥2.6 Bn

Investment infunds as LP

More than
25 funds

Approx. ¥1.5 Bn

2,637

～

～
1,788
1,566

1,083
831

142
10
1Q

2Q

3Q

FY03/19

4Q

1Q

2Q

3Q

FY03/20

4Q

1Q

FY03/21* Of this amount, operational investment securities related to Mercari totaled ¥17,482 million (3.4% of voting rights held, as of June 30, 2020).
Unlisted shares are valued at investment book value; listed shares are marked to market.
10Investment Segment: Investment Portfolio

Major Directly Invested Start-ups
Post IPO

Major Invested Funds as LP

Seed ~ Early

Middle ~ Later

11

Ad Technology Segment: Sales and Operating Income
Shifting focus to the profitability of operations led to an improvement in the gross margin.
As a result, operating income expanded by 49% YoY despite a 15% YoY drop in sales.

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)

1Q
2Qincome
3Q
OperatingMarketing
App Install Ad

400

4Q

1Q

2Q

4Q

1Q

25%

23%

Gross profit margin*
22%

Web Ad

350
1,934

3Q

1,840
1,704

1,739

1,706

YoY -15%

1,794

1,643

20%

19%
16%

300

20%

17%

280

1,573

256

12%

1,444

15%
YoY ＋49%

250
8%

8%

202

206

199

200

10%

5%
138

137

150

103

0%

100
58

-5%

50
0
1Q

2Q

3Q

FY03/19

4Q

1Q

2Q

3Q

FY03/20

4Q

1Q

FY03/21

-10%
1Q

2Q

3Q

FY03/19

4Q

1Q

2Q

3Q

FY03/20

4Q

1Q

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

12

Content Segment: Sales and Operating Income
The business portfolio reorganization implemented in FY03/20 resulted in a ¥729 million YoY increase inoperating income. We expect to turn profitable on the operating level, having completed the withdrawal fromdiscontinued operations in Q1 and only the continuing operations counting toward our earnings from Q2 onward.

Operating Income Trend (Millions of yen)

Sales Trend (Millions of yen)
Continuing operations*2

38

1,946

120

75

1,783

1Q

1,407

2Q

△ 183

1,524
1,396

69
3Q

48

29

4Q

1Q

△ 650

853
761

△ 738

872

△ 419

227

△ 473

570
4
623

696

741

1Q

2Q

3Q

FY03/19

648

4Q

564

1Q

670

635

644

566

2Q

3Q

4Q

1Q

FY03/20

3Q

60
△ 39
1Q

△ 561

360
276

95
△ 57
4Q

△ 478
△ 725

842

2Q

58

21

△ 256

△ 136

1,134

899

87

△ 108

1,205

1,056

YoY

＋¥729 million

Discontinued operations*1

FY03/21

△ 601
△ 655

FY03/19△ 708

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

13

METI Approves “Exam” as Tool Eligible for Subsidy

Fogg, inc. operates Exam, a management platform for auditions.
METI approved Exam as a tool eligible for its IT Adoption Subsidy.

Audition management platform

Platform enabling the one-stop online management of auditions,from application to selection, in the entertainment industry.
Since its release in October 2019, the platform has been used inmany auditions hosted by major entertainment agencies.
https://exam.work/organizer

IT Adoption Subsidy *Exam was approved for eligibility under the 2020 Supplementary IT Adoption Support Program for Productivity Improvement ofServices, etc. (IT Adoption Subsidy) Special Category Type C, which was established to provide preferential support tobusiness operators taking specific IT adoption measures in response to COVID-19. Such measures include response to supply
chain impairment, shift to non-face-to-face business model, and arrangements for the adoption of teleworking aimed atcountering COVID-19’s impact on the business environment and preventing the virus’s spread.

*Source: Service Design Engineering Council (general incorporated association), “IT Adoption Subsidy 2020 Special Category (Type C)”
14

Agenda1

Financial Highlights of Q1 FY03/21

P2

2

Performance by Segment in Q1 FY03/21

P7

3

DX Platform Segment

P15

4

FY03/21 Outlook

P22

5

Appendix

P24

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

DX Platform Segment Business Domains
We promote digital transformation (DX) in our society around two axes: services for individuals andcorporate customers.
For Indivisuals
個
人
向
け
事
業

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
For Companies

Personnel Matching Business
Provision of a hiring support tool that matches students with companies
Corporate Training BusinessIT training sessions for companies

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
New Business (in preparation)
Planning and developing new services in the DX domain
16

Strengths of KiRAMEX Co.
KiRAMEX Co. offers a wide range of courses (50+) geared toward not only acquiring basic app and web
development skills, but also sharpening an array of other skills (e.g., AI, blockchain, design).

Broad course offerings

A full set of courses (50+) ranging from basic programming education toadvanced courses on cutting-edge technology.

17

Business Tie-ups: Kaizen Platform, Inc., Adobe Inc., D.A.Consortium Inc.
By partnering with leading companies in each industry, KiRAMEX Co. aims to offer new courses that allow
students to acquire specialized skills.

Tie-up with Kaizen Platform, Inc. and Adobe Inc.

Tie-up with D.A.Consortium Inc.

KiRAMEX Co. will offer a “video ad creator course” together
with Kaizen Platform, Inc., which provides DX support andvideo-related creative services. Students who enroll in thiscourse will receive three free months of the Creative Cloud
Complete plan of Adobe Inc., which provides creative tools
and document solutions.

KiRAMEX Co. will offer an “ad management consulting
course” in cooperation with D.A.Consortium Inc., which
provides digital marketing services.

Online program aimed at training
video creators. Possible to learn
how to create original video ads
in as short as four weeks.

Online version of a training
program through which DAC’s
team of experts in teaching
programmatic advertising has
fostered operational specialists.

18

Investment and Business Tie-up: Findy Inc.
We invested in Findy Inc.,* a company that leverages its proprietary algorithms to support the matching ofengineers and companies and aids companies in reinforcing their development capabilities. Businesscollaboration will take place between Findy Inc. and KiRAMEX Co. in the DX Platform Segment.

Company Profile

Business Tie-up with Findy Inc.

Name

：Findy Inc.

Through the partnership, Findy Inc. and KiRAMEX Co.

Representative：Yuichiro Yamada, Representative Director

plan to jointly develop original services, such as new
courses at the TechAcademy online programming
school.

Established
Business：February 2014
：Offers multiple services that support the matchingof engineers and companies and the enhancementof development capabilities.

*Purely for financial investment purpose
19

Strengths of Brewus, Inc.
An abundant track record of completing development projects for major corporations centered on thedevelopment of high-quality smartphone apps leveraging diverse technological capabilities.

事業の特長

開発実績

The comprehensive lineup of resources, covering a wide
range of job categories and talents needed in development,
enables Brewus, Inc. to manage numerous programming
languages and tools.

Completed development projects for a wide variety
of clients from government agencies to major
corporations.

UI/UX
iOS

PM

Android

Web

QA

サーバ

Can offer one-stop solutions for issues faced by clients
related to app development, from the planning stage tooperation.

Planning

Strategy
designServicedesignUI/UXdesignDevelopment

Qualitycontrol

Operation

Seven Bank, Ltd.
“Online Passbook”

TV TOKYO Corporation“BUSINESS ON DEMAND”

JINS HOLDINGS Inc.
“JINS MEME”

Kaonavi Inc.
“Kaonavi”

Improvement
support20

Business Tie-ups: Fuller, Inc. / VisasQ Inc.

Formed tie-ups with a number of growing firms with a view to expanding the DX Platform
Segment.
Tie-up with Fuller, Inc.

Tie-up with VisasQ Inc.

Partnered with Fuller, Inc., which operates App Ape, an app
analytics service using mobile activity data

Partnered with VisasQ Inc., which offers spot consultation anda range of other services leveraging its knowledge database.

The tie-up is aimed at offering clients with a onestop service to support their digital transformation(DX) through collaboration between Brewus, Inc.,
which develops apps and systems, and Fuller, Inc.,
which possesses data analysis capabilities andknowledge.

The tie-up involves collaboration in VisasQ’s new
business creation support services, primarily throughKiRAMEX Co.’s TechAcademy online programming
school and outsourced development of mockups andprototypes by Brewus, Inc.

21

Agenda1

Financial Highlights of Q1 FY03/21

P2

2

Performance by Segment in Q1 FY03/21

P7

3

DX Platform Segment

P15

4

FY03/21 Outlook

P22

5

Appendix

P24

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.

22

FY03/21 Outlook

We have not yet disclosed our earnings forecast for FY03/21, because it remains difficult to properly andreasonably estimate COVID-19’s impact on our business performance. Once we can compile our forecastwith a reasonable degree of accuracy, we will disclose the figures promptly.

Growth Drivers
Earnings Drivers

収
益
期
待
事
業

DX Platform Segment

・KiRAMEX Co. projects a YoY increase in sales and profits driven byongoing growth in the online programming education business.
・Investments toward growth may potentially exceed the initial plan.

Investment Segment

・Already secured ¥5,398 million in gains on sales of Mercari shares.
・Expecting to generate a certain amount of contingency fees arising fromfund management.

Ad Technology Segment

・Planning for stable profit generation while maintaining the profitability at the
improved level achieved in FY03/20.

Content Segment

・Planning to turn profitable over the full year through business portfolio
reorganization.

23

Agenda1

Financial Highlights of Q1 FY03/21

P2

2

Performance by Segment in Q1 FY03/21

P7

3

DX Platform Segment

P15

4

FY03/21 Outlook

P22

5

Appendix

P24

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.

24

Consolidated P/L Statement Q1 FY03/20
Difference
Q1 FY03/20

Q4 FY03/20

Q1 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

6,083
351
2,637
1,704
1,407
△ 17
3,020
134
2,515
322
43
4
1,326
1,694
38
2,491
138
△ 708
△ 266
1,662
764

4,926
692
1,788
1,573
872
△1
2,702
266
1,713
422
300
869
1,833
116
1,670
256
38
△ 248
1,887
1,001

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

+31%
+50%
+107%
△ 15%
△ 59%
+15
+103%
+27%
+115%
+2%
+421%
△5
△ 38%
+213%
△ 55
+116%
+49%
+729
△ 27
+219%
385%

QoQ

+62%
△ 24%
+205%
△ 8%
△ 35%
△0
+127%
△ 36%
+215%
△ 22%
△ 25%
△0
△ 5%
+189%
△ 133
+222%
△ 19%
△ 45%
△ 46
+181%
270%

*: Refers to net income attributable to owners of parent.
25

Consolidated Balance Sheet for End of Q1 FY03/21（Millions of yen）

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

End of Q1 FY03/21(June. 30, 2020)

Difference

32,00038,536+6,536 *1

Cash & Deposits

8,381

8,372

△9

Operating Investment Securities

20,992

22,457+1,465

1,591

1,573

△ 18

114

86

△ 28

Total Assets

33,592

40,110+6,518Current Liabilities

2,124

3,309

+1,185

Non Current Liabilities

4,935

5,588

+653

4,582

5,428

+845

Total Liabilities

7,060

8,898

+1,838Net Assets

26,532

31,211+4,67911,662

12,709+1,047

Current Assets

Non Current Assets
Amortization of Goodwill

Deferred Tax Liabilities

Unrealized Gain on Securities

*2

*2

*2

*1: Of this amount, ¥5,448 million from disposal of operational investment securities (recorded as notes and accounts receivable)*2: Of this amount, the impact of revaluation (mark-to-market) and disposal of operational investment securities (listed shares) was as follows:
operational investment securities +¥1,431 million, deferred tax liabilities +¥453 million, valuation difference on available-for-sale securities: +¥1,028 million

26

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

FY03/2027

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

117

108

28

38

425

385
80

78
46

138

144

51
56

106

48
46

88

400
365
74

54

42

320
175

137

55

327
314

303

50

46

42

131

98

263

184

149
73
73

97

93

89

88

100

98

93

90

108

101

83

31
11
Q3

12
12

13
12

13
12

14
12

15
11

18
11

20
11

21
11

21
11

23
11

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY 18/03

FY 19/03

FY 20/03

65

94

11

8

Q4

Q1
FY 21/03

28

Ad Technology Segment: Product Overview

Products

Overview

Comprehensive management platform for
optimizing ROI of app install ads
App Install Ad

Mobile video ad distribution platform
supporting various video ad formats

DSP specializing smartphones

Web AdSSP specializing smartphones

Ad network optimizing ad effectiveness29

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 site30