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Agenda
1. About Us
2. FY2017 Financial Results
3. FY2018 Business Outlook and Growth Strategy
4. Reference Materials
Copyright (C) 2018 GENIEE Inc. All rights reserved. 1
1-1. Our Vision
Copyright (C) 2018 GENIEE Inc. All rights reserved. 3
Founding Spirit
To create a global technology company founded in Japan.Mission
Use technology to create new value andwork together with clients to build success
We believe in the possibilities of technology. We bring new value to corporate marketing activities to create products that promote innovation. As a Japanese technology company, we have a deep understanding of business in Asia. We reflect this understanding in our products and services to achieve new success for Asian companies.
1-2. Our History & Sales Trends
• Established in April 2010. Has since expanded business domains and serviced regions to steadily increase net sales.
• In FY2015 (2016.3), mainstay product GenieeSSP captures top class market share.
2013.3 2014.3 2015.3 2016.3 2017.3
Started providing GenieeDSPEstablished Geniee Vietnam
Started providing GenieePMPEstablished Geniee Technology Indonesia
Started providing GenieeDMPCapital and business alliance with SoftBank Group Corp.
Established Geniee International (Singapore)Started overseas business
8231,260
2,911
7,369
11,730
※ 2013.3 to 2015.3 are unit sales, 2016.3 to 2017.3 are consolidated sales figures. Unit : JPY million
Copyright (C) 2018 GENIEE Inc. All rights reserved. 4
2018.3
14,380IPOEstablished Geniee Adtechnology (Thailand) Co., Ltd. Sales Trends
Started providing
1-3. Our Business
• Ad platform business offering automated media ad inventory transactions.• In our Marketing Automation Business, where we apply AI and automation to marketing
activities, we are expanding into new marketing technology domains (CRM/SFA).
Ad Platform Business
Marketing Automation Business
GenieeDSPDemand Side Platform
Framework forautomating ad
inventory purchasing,distribution, andcreative analysis
Advertiser / Agency
Media
GenieeSSP
Framework forautomatically selectingand distributing highly
profitable ads formedia
DoubleClick AdExchangeGoogle certified media solutionspartner
GAURL/AdpushupSupport tool for advertisementdistribution operation for media
Marketing Automation Platform
Supply Side Platform
GenieeDMPData Management Platform
Accumulates and managesmarketing data, includinguser attribute information,
behavior history, etc.
Copyright (C) 2018 GENIEE Inc. All rights reserved. 5
CRM/SFA
Centralized management of customer information for strategic and efficient marketing activities MAJIN enables the automation of various marketing actions, including email distribution, web access history, lead management, scoring, and other functions. Combining with Chikyu for linked marketing and sales management
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2016 2017 2018 2019 2020 2021
• Japanese market continues to show annual growth of 10-20%. • As of 2018, the online ad market was 1,440 billion yen.
The digital marketing tool market was approximately 45 billion yen, and the CRM market was approximately 100 billion yen.
(Yano Research Institute "Online Advertisement Market in Japan: Key Research Findings 2017“)
(Unit: 100 million yen)
(*1) (*2) (*2) (*2) (*2)
1-4. Japanese Market Environment
Copyright (C) 2018 GENIEE Inc. All rights reserved. 6
(Yano Research Institute "DMP / MA market - Current status and business outlook of rapidly growing digital marketing tool 2017 edition" and IDC Japan "Japan CRM application market sales forecast, 2016 - 2021" We made.)
Internet Advertising Market 2018
1,440 billion yen
DMP, MA & CRM Market 2018
145 billion yen20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
02015 2016
(*1)2017(*1)
2018(*2)
2019(*2)
2020(*2)
CRM
MA
DMP
CRM14,400 1,450
(Unit: 100 million yen)
(*1 Prospect, *2 Estimation)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2017 2018 2019 2020 2021 2022
• Significant growth in the Southeast Asian/Indian market, particularly Indonesia and India.
• This was 320 billion yen as of 2017 and is expected to grow to 670 billion yen in 2022.
Created based on "eMarketer" data
(*) (*) (*) (*)
1-5. Overseas Market Environment
Copyright (C) 2018 GENIEE Inc. All rights reserved. 7
(*)
Asian Internet advertising market
2017
¥ 320 billion2022
¥ 670 billion3,200
6,700VIETNAM
INDIA
INDONESIA
MALAYSIA
SINGAPORE
THAILAND
(Unit: 100 million yen)
(* Prospect)
Copyright (C) 2018 GENIEE Inc. All rights reserved. 8
• Working with major domestic companies such as communications carriers and ad agencies to develop and provide various products that meet potential client needs.
• Use platform to expand operations into rapidly growing Asian markets.
1-6. Our Strengths―Technology Development―
R&D
Planning
Sales Business Growth
• Working with major domestic companies such as communications carriers and ad agencies to develop and provide various products that meet potential client needs.
• Use platform to expand operations into rapidly growing Asian markets.
1-7. Our Strengths―Business Promotion―
Copyright (C) 2018 GENIEE Inc. All rights reserved. 9
4QFY2016
4QFY2017 YoY
Net Sales 3,468,466 4,307,925 24.2%
Gross Margin 577,349 669,988 16.0%
SG&A Expenses 458,952 511,742 11.5%
Operating Income 118,397 158,246 33.7%
Ordinary Income 92,377 138,923 50.4%
Profit attributable toowners of parent 5,655 137,147 2,325.3%
2-1. Results for the 4Q FY2017 (Jan. 2018 - Mar. 2018)
• Top-line growth on higher SSP share and MAJIN business launch • Operating income and other earnings benchmarks largely outperformed the previous year
(unit:JPY Thousand)
Copyright (C) 2018 GENIEE Inc. All rights reserved. 11
• GenieeSSP steadily grew market share. • For January - March 2018, we captured No.1 share on domestic market
with sales nearly 700 million yen higher than the No. 2 company.
2-2. Our Market Share
Copyright (C) 2018 GENIEE Inc. All rights reserved. 12
※Figures for other 2 companies created by Geniee based on earnings materials. V Corp. totals for supplier side, U Corp. totals for supplier side and ad technology segment.
V
UJanuary - March of 2018
Difference in sales with second place
Approximately
700 million yen¥2.74 billion
¥1.87 billion
¥3.42 billion
2-3. FY2017 Highlights
• Achieved record highs for all benchmarks, including net sales, gross profit, and net incomeNet Sales ¥14.38 billion (up 22.6% YoY) Operating income ¥530 million (up 104.8% YoY)
・Increase initiatives with large-scale corporate media to improve market shareNet Sales ¥ 12.63 billion (up 17.0% YoY)
Overview
Ad Platform Business
• Enhanced functions, business growth to profitable levelNet Sales ¥ 1.8 billion (up 95.7% YoY)
Marketing Automation Business
Copyright (C) 2018 GENIEE Inc. All rights reserved. 13
• Expand scope in Vietnam, increase initiatives with major corporate clients in AsiaNet Sales ¥1.4 billion (up 27.69% YoY)
Overseas Business
FY2016 FY2017 YoY
Net Sales 11,730,899 14,380,939 22.6%
Gross Margin 1,758,826 2,457,453 39.7%
SG&A Expenses 1,501,215 1,929,841 28.6%
Operating Income 257,610 527,611 104.8%
Ordinary Income 194,590 467,448 140.2%
Profit attributable toowners of parent △ 14,754 63,242 ―
2-4. Results for the FY2017
• Outperformed market growth, achieved strong income growth. Profitability also increased
Copyright (C) 2018 GENIEE Inc. All rights reserved. 14
(unit:JPY Thousand)
2-5. Consolidated sales
(Unit: JPY million)
• Net sales growth outpaced market growth
• GenieeSSP growth as well as contributions from GenieeDSPand MAJIN resulted in higher sales
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2017.3 2018.3
Copyright (C) 2018 GENIEE Inc. All rights reserved. 15
YoY Growth Rate
22.6%14,380
11,730
2-6. Sales by Business - Ad Platform Business -
• GenieeSSP accelerated contracts with major clients, sales grew significantly due to increased OEM projects
• GenieeDSP also grew thanks to aggressive new client development
• The impact of ad fraud rule changes was approx. 1.07 billion yen. Excluding this, growth was 26.9% YoY
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2017.3 2018.3
Copyright (C) 2018 GENIEE Inc. All rights reserved. 16
zYoY Growth Rate
17.0%10,802
13,707
※ Sales by business are figures before adjustment for cross-business transactions.
12,634
(Unit: JPY million)
2-7. Sales by Business - Marketing Automation Business -
• Total accounts increased to over 750 companies and business sales double YoY, resulting in business reaching a profitable level
• Enhancing efforts to expand client numbers and improve customer satisfaction
0
200
400
600
800
1,000
1,200
2017.3 2018.3
Copyright (C) 2018 GENIEE Inc. All rights reserved. 17
YoY Growth Rate
95.7%549
1,076(Unit: JPY million)
※ Sales by business are figures before adjustment for cross-business transactions.
2-8. Sales by Business - Overseas Business -
• Initiatives with large-scale media in Vietnam underway
• In Indonesia, major media contracts and contracts for campaign projects favorable
0
200
400
600
800
1,000
1,200
2017.3 2018.3
Copyright (C) 2018 GENIEE Inc. All rights reserved. 18
zYoY Growth Rate
27.6%814
1,039
(Unit: JPY million)
※ Sales by business are figures before adjustment for cross-business transactions.
893
1,199
176
225
118
148
43
53
41
48
18
11
212
245
0
400
800
1,200
1,600
2,000
2017.3 2018.3
2-9. SG & A Expenses
• Employee numbers increased due to business expansion
• Advertising and marketing expenses increased due to enhanced branding efforts and sales promotions expenses increased in relation to business expansion efforts.
Copyright (C) 2018 GENIEE Inc. All rights reserved. 19
Personnel etc
System Development etc.
Office Equipment etc.
Ad. & PromotionDepreciation & amortization
Goodwill
Others
(Unit: JPY million)
2-10. Stock situation (as of the end of March 2018)
Copyright (C) 2018 GENIEE Inc. All rights reserved. 20
Name Shares Owned %
Tomoaki Kudo(Representative Director and President) 6,540,000 37.35
SoftBank Group International GK* 5,625,000 32.12
Takuya Yoshimura (General Manager) 670,000 3.82
Hiroshi Hirose (Director) 655,000 3.74
Trans Cosmos Co., Ltd. 495,000 2.82
NICE SATISFY LIMITED 402,000 2.29
AT-Ⅰ Investment Limited Partnership 378,200 2.16
Fenox Venture Company Ⅸ, L.P. 258,000 1.47
Anchor Advisors TMT3 Investment Limited Partnership 219,000 1.25
YJ1 Investment Partnership 120,000 0.68
* Our stock was transferred to SOFTBANK CORP.on April 1, 2018
Major Shareholders Shareholder Composition by Owner
FY2016(Actual Results)
FY2017(Actual Results)
FY2018(Forecast) YoY
Net Sales 11,730,899 14,380,939 20,054,075 39.4%
Gross Margin 1,758,826 2,457,453 3,304,968 34.5%
SG&A Expenses 1,501,215 1,929,841 2,575,708 33.5%
Operating Income 257,610 527,611 729,259 38.2%
Ordinary Income 194,590 467,448 712,859 52.5%
Profit attributable toowners of parent △ 14,754 63,242 505,512 699.3%
EBITDA 457,798 783,546 1,135,757 45.0%
3-1. FY2018 Forecast
• Will aim for steady 30% YoY growth for 3 benchmarks: sales, gross income, and EBITDA
• Impact on business of stricter inspections is minor
Copyright (C) 2018 GENIEE Inc. All rights reserved. 22
(unit:JPY Thousand)
Copyright (C) 2018 GENIEE Inc. All rights reserved. 23
• Utilize user data assets for GenieeSSP, which boasts No. 1 share • Continue to engage in new businesses and new regions using the latest technology to maintain a high rate of growth. Aim for No. 1 in Asia
3-2. Our Growth Strategy
Region
Business area
GenieeSSP GenieeDSP MAJINChikyuGenieeDMP GenieePMP
Indonesia
Singapore
Vietnam
Thailand
M&A
NewBusiness
Copyright (C) 2018 GENIEE Inc. All rights reserved. 24
3-3. Growth strategy by business - Ad platform business: SSP
• Capture more market share to achieve sales growth of 46% between 8th and 9th fiscal periods
Framework for efficient ad distribution using AI
GenieeSSPIncrease earnings by 10 to
several tens of percent
Sales trend
Publisher’s Operational LogicOptimized Operational Logic
Copyright (C) 2018 GENIEE Inc. All rights reserved. 25
3-3. Growth strategy by business - Ad platform business: DSP
• Enhancing functions based on using SSP media ad slots and user data as No. 1 product to create 2nd major revenue source
Develop BumVi, a PR product based on collaboration with Trenders, Inc.
Partnership with SoftBank progressing smoothly
PMPAds that are easy to use for brand
advertisers Video × Smartphone
Copyright (C) 2018 GENIEE Inc. All rights reserved. 26
3-3. Business Growth Strategy - Marketing Automation Business -
• New development and M&A to further expand marketing technology domains
Data × Technology
Entry into a new business domain
MA × CRM/SFA
Big Data・AI
Create new value through sales and marketing activities
Aim for improved ease of use and customer satisfaction
Copyright (C) 2018 GENIEE Inc. All rights reserved. 27
3-3. Growth strategy by business - Overseas business -
Planning on joint product development and sales promotions
• Form alliances with global companies like Google and SoftBank• Expand share for existing offices, engage in new areas
×
Continue to strive towards achieving our vision
Copyright (C) 2018 GENIEE Inc. All rights reserved. 28
Founding Spirit
To create a global technology company founded in Japan.Mission
Use technology to create new value andwork together with clients to build success
We believe in the possibilities of technology. We bring new value to corporate marketing activities to create products that promote innovation. As a Japanese technology company, we have a deep understanding of business in Asia. We reflect this understanding in our products and services to achieve new success for Asian companies.
Company Profile(As of the end of March 2018)
Copyright (C) 2018 GENIEE Inc. All rights reserved. 30
* Temporary staff and outsourced workers are not included in the number of employees.
Company Name Geniee, Inc.
BusinessAd Technology BusinessMarketing Automation Business
HeadquarterSumitomofudosan Nishishinjuku Bldg. 25F 7-20-1 Nishishinjuku Shinjuku-ku Tokyo, Japan
Establishment April 14, 2010
Representative President and CEO Tomoaki Kudo
Executive Officers
Directors Hiroshi HiroseMasahiro EndoMichimasa Naka (Outside)Daisuke Fujihira (Outside)
Auditors Katsuyuki Toritani (Full-time)Rie Aoki (Full-time)Fumiaki Goto (Outside)Nao Yoshizawa (Outside)Sachio Todoroki (Outside)
Employees*257Geniee Japan : 167, Overseas subsidiaries : 90
Capital ¥1,519 million
End of Fiscal Year March 31
Group company
Geniee International Pte., Ltd. (Singapore)Geniee Vietnam Co., Ltd. (Vietnam)PT. Geniee Technology Indonesia (Indonesia)Geniee Adtechnology (Thailand) Co., Ltd.(Thailand)PT. Adstars Media Pariwara (Indonesia)
• Revenues mainly comprised of two elements: ad listing fees and system usage fees
• GenieeSSP, MAJIN, Chikyu, and OEM provision are business models that can expect continued customer use
Business Model
Copyright (C) 2018 GENIEE Inc. All rights reserved. 31
AdvertiserAdvertising
agencyDSP
Ad networkOEM destination
Internet media
Cost
Inventory sales ①Service delivery ②System development and provision ①②
Inventory sales ①
Ad listing fee ①
Ad serving①Service delivery ②
Sales
Service fee ②
Sales
Ad listing fee ①Monthly fee / service fee ②
(1) Ad listing fees received from advertisers based on number of ad impressions when ads are distributedvia GenieeSSP and GenieeDSP.
(2) Monthly fees and service fees received from companies using GenieeDMP, MAJIN and Chikyu.
Balance Sheet
FY2016 FY2017 YoY
Current assets 3,026,684 4,512,607 49.1%
Fixed assets 1,170,466 1,028,447 △12.1%
Total assets 4,197,150 5,541,055 32.0%
Current liabilities 2,158,013 1,885,003 △12.7%
Fixed liabilities 426,069 450,583 5.8%
Total liabilities 2,584,082 2,335,586 △9.6%
Shareholders' Equity 1,606,083 3,203,477 99.5%
Capital 766,769 1,519,561 98.2%
Total net assets 1,613,067 3,205,468 98.7%
Copyright (C) 2018 GENIEE Inc. All rights reserved. 32
(unit:JPY Thousand)
201 210 224 259
287 285 304 322
30 41
45
60 62 58
51 54
21 28
31
38 36 35
40 37
6
9 4
24 9 6
32 6
9
9 10
13 9 9
10 19
3
5 6
6 3 3
3 3
52 48
52
60 52 55
68 70
0
100
200
300
400
500
600
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
人件費等 システム開発関連 オフィス設備関連 広告宣伝・販促 減価償却費 のれん その他
Trends in SG & A expenses
321349
371
458 458 452
507
• Employee numbers increased due to business expansion• Advertising and marketing expenses increased due to enhanced branding efforts and sales promotions expenses increased in relation to business expansion efforts.
Copyright (C) 2018 GENIEE Inc. All rights reserved. 33
511
(Unit: JPY million)Personnel etc. System Development etc. Office Equipment etc. Ad. & Promotion Depreciation & amortization Goodwill Others
News & Topics
• News topics released since Jan. 2018
Copyright (C) 2018 GENIEE Inc. All rights reserved. 34
Date News/Topic Title
2018.04.26 Marketing Automation Tool MAJIN - Booth at Web & Digital Marketing EXPO Spring
2018.04.25Concerning Takeover of Operations via Corporate Split Agreement (Simple Absorption Split) withChikyu Inc.
2018.04.17 Notice Concerning Response to Pirate Websites Announced by the Government2018.04.02 Notice Concerning Organizational Changes2018.03.29 Notice Concerning Change in Major Shareholders and other Affiliates2018.03.27 GenieeDSP Starts Data Alliance with TREASURE CDP, the Treasure Data Customer Data Platform2018.03.14 GenieeSSP Develops New Restricted Ad Detection Function for Media2018.03.13 Notice Concerning Acquisition of Privacy Mark
2018.02.06Integrated GenieeDSP distribution platform for advertises with the cross-device matching technologyprovided by Mitsui Bussan partner Drawbridge
2018.01.31 Release concerning main office relocation2018.01.17 Marketing automation tool MAJIN demonstrated ad Advertising EXPO2018.01.16 Marketing automation tool MAJIN sponsors BtoB company MA x Content Marketing seminar2018.01.10 Collabos and Geniee conclude basic agreement towards business alliance2018.01.09 Notice concerning results of third-party allocation of new shares
Major published articles to the mass media
• Major articles featuring Geniee from Jan. to Mar. 2018
Copyright (C) 2018 GENIEE Inc. All rights reserved. 35
Date Published media2018.03.28 Yukan Fuji (Hideo Amano - Select SME Stocks - Rapid Growth of Geniee! Ad Revenue Maximization System, Seeing Results Overseas)2018.03.28 RTB SQUARE (GenieeDSP Starts Data Alliance with TREASURE CDP, the Treasure Data Customer Data Platform)2018.03.20 Searchina (Geniee Pulls Back but Expecting Strong Growth on Development of Restricted Ad Detection Function, Adding Excitement to Upcoming IPO)2018.03.17 Kabunushi Techo April Ed. (Internet with presidents of newly listed companies)2018.03.16 Keyman's Net (GenieeSSP Offers New Restricted Ad Detection Function for Media via its Online Ad SSP)2018.03.15 Web Admin Forum (GenieeSSP Offers New Restricted Ad Detection Function for Media via its Online Ad GenieeSSP)2018.03.15 DZH Nihonkabu News (Geniee on 5-day Run - GenieeSSP Develops New Restricted Ad Detection Function for Media)2018.03.15 MarkeZine (Preventing with System x Operations - GenieeSSP Develops New Restricted Ad Detection Function for Media)2018.03.14 Venture Times (GenieeSSP Develops New Restricted Ad Detection Function for Media)2018.03.14 RTB SQUARE (GenieeSSP Develops New Restricted Ad Detection Function for Media)
2018.03.01Koho Kaigi March Ed. (Venture company PR Rules for Success / Becoming the No. 1 Ad Tech Company in Asia, Reinforcing "Conservative PR" Stance Aheadof IPO)
2018.02.20 Searchina (Geniee 3Q Earnings Largely On Par with Plans, Rebounding after Bottoming Out)2018.02.07 Web Admin Forum (Geniee Starts Development of "Geniee DSP" Function for Estimating the Sale User Across Multiple Devices)2018.02.07 MarkeZine (GenieeDSP Integrates Cross-Device Matching Technology of Mitsui Bussan Partner Drawbridge (USA))2018.02.06 RTB SQUARE (GenieeDSP Integrates Cross-Device Matching Technology of Mitsui Bussan Partner Drawbridge (USA))2018.01.15 Significant Style (Geniee - Ad Tech Company Taking on the World with Advanced Technology)2018.01.11 MarkeZine (Collabos and Geniee Conclude Basic Agreement for Business Alliance - Developing Platform that Combines Call Center Data with MA)2018.01.11 DZH Nihonkabu News (Collabos and Geniee To Develop Digital Marketing Platform)2018.01.10 Fuji Sankei Business Eye (Becoming No. 1 for Net Ads on the Asia Market)2018.01.10 Nihon Securities Journal (IPO President's Press Conference - Geniee, Aiming for No. 1 in Asia within 3 Years)2018.01.10 Venture Times (Collabos and Geniee Conclude Basic Agreement for Business Alliance)2018.01.10 RTB SQUARE (Collabos and Geniee Conclude Basic Agreement for Business Alliance)2018.01.10 Nikkei Online (Use Call Center to Optimize Promotions, Collabos and Geniee to Collaborate on Development)
Note concerning forward-looking statements
The materials and information provided in this release include forward-looking statements. These forward-looking statements are based on assumptions that reflect present forecasts, predictions, and risks, and include uncertainties that could lead to results that differ from these statements.These risks and uncertainties include industry and market conditions, fluctuations in interest rates and currency markets, and other economic conditions in Japan and internationally.Even in the event of new information or future circumstances, our Company bears no liability to update or revise the forward-looking statements contained in this release.
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