FY2018 Results Briefing Materials...12,634 12,770 YoY + 1.1 % * Sales by business are figures before adjustment for cross-business transactions. 1,076 1,170 YoY + 8.7 % 1,039 1,239

Copyright (C) 2019 GENIEE Inc. All rights reserved. 0

FY2018 Results Briefing Materials

May 16, 2019

Geniee Inc.(TSE-M: 6562)


1. FY2018 Financial Results Overview

2. Future Growth Strategy

3. FY2019 Business Outlook

4. Reference Materials

Agenda

1. FY2018 Financial Results Overview


• Net sales increased YoY across all businesses • Continued M&A investments while maintaining

positive EBITDA Net Sales: ¥14,954 million (YoY +4.0%)Gross Margin: ¥1,946 million (YoY -20.8%)EBITDA: ¥19 million (YoY -97.6%)

Ad Platform Business

• Although impacted by clients reevaluating streaming policy, we maintained recovery trend to record increased revenues Net Sales: ¥12,770 million (YoY +1.1%)

Marketing Automation Business

Overseas Business

Overview

• Engaged in the rapidly growing Indian market to promote business scope growthNet Sales: ¥1,239 million (YoY +19.3%)

1-1. Cumulative FY2018 Highlights

• Took over the CRM/SFA "Chikyu" service, enabling broad coverage of the marketing field Net Sales: ¥1,170 million (YoY +8.7%)


• Net sales increased YoY • Income decreased YoY but we outperformed revised forecasts thanks to

cost management efforts. Continued M&A investments while maintaining positive EBITDA.

1-2. Results for FY2018 highlights

(unit: JPY million)

Cumulative FY2017

Cumulative FY2018 YoY

Net Sales 14,380 14,954 +4.0%

Gross Margin 2,457 1,946 -20.8%

SG&A Expenses 1,929 2,257 +17.0%

Operating Income/Losses 527 -310 －%

Ordinary Income/Losses 467 -330 －%

EBITDA 783 19 -97.6%

FY2018Reference:

Revised forecast

15,026

2,006

-400

-418

-49


Cumulative FY2017 Cumulative FY2018 Cumulative FY2017 Cumulative FY2018Cumulative FY2017 Cumulative FY2018

1-3. FY2018 business-specific earnings highlights

Although impacted by clients reevaluating streaming policy, we maintained recovery trend to record increased revenues

Officially launched our newly developed ad distribution platform for taxi dispatch services in February.


12,634 12,770

YoY

+1.1%

* Sales by business are figures before adjustment for cross-business transactions.

1,0761,170

YoY+8.7%

1,0391,239

Took over CRM/SFA "Chikyu" service

Total accounts for MAJIN and Chikyu increased to over 1,800 companies


Acquired stock in Adskom India Private Limited to engage in the Indian market and expand business scope

Overseas Business

YoY+19.3%

(unit: JPY million)


1-4. Quarterly Consolidated Net Sales, Gross Margin, and Transitions in EBITDA

4,023 3,818

3,479 3,633

576 505

410 454

84

18

-66 -16

■Net Sales■Gross Margin●EBITDA

Recovery trend

3Q19 4Q192Q191Q19(Unit: JPY million)

• Priced bottomed out during 3Q and shifted towards recovery

Clients reevaluating ad distribution policy resulted in distribution cancellation


366 341 334 328

58 62 61 58

38 50 46 5614 9 9 14

23 27 12 125 11

9 17

68 80 74 63

19/1Q 19/2Q 19/3Q 19/4Q

Others

Goodwill

Depreciation & amortization

Ad. & Promotion

Office Equipment etc.

System Development etc.

Personnel etc.

1-5. Trends in Quarterly SG&A Expenses

• Reinforcing cost management enabled us to maintain certain levels for SG&A expenses

548 551

(Unit: JPY million)

582574

15.8%15.2%15.3%14.3%

1Q19 2Q19 3Q19 4Q19

2. Future Growth Strategy


2-1. Our Mission | Business overview

MissionUse technology to create new value and work together with clients to build success

―― Ad Platform Business ―― ― Marketing Automation Business ―

―― Overseas Business ――

Marketing Automation Platform

CRM/SFA Chat-based customer service tools

GenieeSSPSupply Side Platform

GenieeDSPDemand Side Platform

DOOHDigital Out Of Home

Trading DeskMarketing/Ad management

GenieeDMPData Management

Platform

IndonesiaSingapore Vietnam Thailand India


2-2. Strategy overview

10

• We will achieve sustainable growth by using our founding mainstay product GenieeSSP as a platform for developing new businesses and engaging in new regions.

Region

Business area

GenieeSSP GenieeDSP Chikyu(CRM/SFA)

GenieeDMP MAJIN(Marketing Automation)

Indonesia

Singapore

Vietnam

Thailand

M&A

New Business

India

chamo (chat-based customer

service tool)

Sustainablegrowth


2-3. Business Area

Medium- to long-term expansion of service domains

GenieeSSPSupply Side Platform

GenieeDSPDemand Side Platform

Marketing Automation Platform

CRM/SFA

Chat-based customer service tools

Marketing Automation

Ad Platform

New Business

Trading DeskMarketing/Ad management

DOOHDigital Out Of Home

Business scope

Time Axle

• We will expand share and engage in sustainable investments in new domains by promoting business management focused on net sales, gross profit, and EBITDA.


2-4. Regions

• Expand offices, particularly in rapidly growing Asian region • Promote localization by hiring local site managers and staff to establish

partnerships with major local companies and drive sales

Geniee International Pte.,Ltd. (Singapore)

Geniee Vietnam Co., Ltd(Vietnam)

PT. Geniee Technology Indonesia(Indonesia)

PT.Adstars Media Pariwara(Indonesia)

Geniee Adtechnology (Thailand) Co., Ltd. (Thailand)

Adskom India Private Limited (India)

Indian Ad Technology company added Adskom India to Group

Partnered with TelkomSel, the largest communications carrier in Indonesia


2-5. Operating environment - Analysis and key points



Overseas Business

From rapid growth phase to next growth phase

Expand to OOH (Real)

Strengthen approach to major media

Engage in digital OOH domain

Growth market with growing client needs

Focus on product functions

Rapid growth market larger than domestic market

Strong inbound demand

Operating environment analysis Key points

Concentrate development resources to strengthen product functions and links

Promote solutions provision tailored to each location

Strengthen and expand crossborder ad distribution services

*OOH: Short for Out of Home, which refers to ad media consumers encounter outside the home such as transportation ads and outdoor billboard ads.


2-6. Key Points: Ad Platform Business

• Aggressive development of the rapidly growing digital OOH domain Use official launch of newly developed ad distribution platform for taxi dispatch services in February to promote business development.

143.7165.8

196.3

229.7252.2

277.1

318.6

2017Actual

2018Prospect

2019Estimation

2020Estimation

2021Estimation

2022Estimation

2025Estimation

Scope of domestic digital signage market Trend forecast (JPY billion)

• Market scope growth to JPY 300 billion by 2025

(Source: Fuji Chimera Research Institute, Inc.) *OOH: Short for Out of Home, which refers to ad media consumers encounter outside the home such as transportation ads and outdoor billboard ads.


2-7. Key Points: Marketing Automation Business

Enhance functions Strengthen links

Market automation tool providing uniform management & implementation,

from marketing to sales promotion

Centralized CRM/SFA, from customer/negotiation management to analysis

No. 1 chat tool in Japan adopted by 4,500 companies

• In November of last year, we acquired stock in Chamo, Inc. which operates the chat-based customer service tool "chamo", enabling us to offer various services to marketing technology domains.

• Concentrate development resources to strengthen product functions and links


2-8. Key Points: Overseas Business

• Promote solutions provision tailored to each location • Strengthen and expand crossborder ad distribution services provided in

collaboration with Softbank to target inbound traffic (foreign visitors to Japan) and crossborder EC customers.

Distribute ads for major supermarkets, drug stores, and consumer goods manufacturers

Ad

3. FY2019 Business Outlook


3-1. FY2019 Forecast

FY2018(Actual Results)

FY2019(Forecast) YoY

Net Sales 14,954 15,572 +4.1%

Gross Margin 1,946 2,590 +33.1%

Operating Income/Losses -310 23 －%

Ordinary Income/Losses -330 7 －%

EBITDA 19 359 +1789.9%

• Focus on net sales, gross margin, EBITDA while aiming for full-year profitability operating income

• Due to the characteristics of our business, we forecast greater weight during the second half

(Unit: JPY million)

4. Reference Materials


Advertiser

Advertising agency

DSP

Ad network

OEM destination

Other

Internet media

Cost

(1) Ad listing fees received from advertisers based on number of ad impressions when ads are distributed via GenieeSSP and GenieeDSP.

(2) Monthly fees and service fees received from companies using MAJIN and Chikyu.

Inventory sales (1)Service delivery (2)System development and provision (1)(2)

Inventory sales (1)

Ad listing fee (1)

Ad serving (1)Service delivery (2)

SalesService fee (2)

Sales Ad listing fee (1)Service fee (2)

Sales

• 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

4-1. Business Model


Internet Advertising Market 2019

¥1,700 billion2019年 MA/CRM ＆ Chat market

¥130 billion

1,378.2 1,536.9

1,717.6 1,927.2

0

500

1,000

1,500

2,000

2017(Actual)

2018(Estimation)

2019(Estimation)

2020(Estimation)

2021(Estimation)

• Japanese market continues to show annual growth of 10-20%.• As of 2019, the online ad market was approximately 1,700 billion yen. MA/CRM

market was approximately 120 billion yen, and chat market was 10 billion yen.

4-2. Japanese Market Environment

0

40

80

120

160

2017(Actual)

2018(Estimation)

2019(Estimation)

2020(Estimation)

2021(Estimation)

(Created by Geniee based on IDC Japan "Japan CRM application market forecast", and “ITR Market View: Business chat market 2018”)

110.2120.8

132.8 144.6156.0

MA/CRM

Chat

(Yano Research Institute "Online Advertisement Market in Japan: Key Research Findings 2018“)

(JPY billion)(JPY billion)

2,138.3


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2017 2018 2019 2020 2021 2022

4-3. Overseas Market Environment

• Significant growth in the Southeast Asian/Indian market, particularly Indonesia and India.

• This was approx. 470 billion yen as of 2019 and is expected to grow to 670 billion yen by 2022.

(JPY billion)

Created based on "eMarketer" data(Estimation)

Asian Internet advertising market

2019

¥470 billion2022

¥670 billion

324.5

674.4VIETNAM

INDIA

INDONESIA

MALAYSIA

SINGAPORE

THAILAND

392.7

469.6

546.2

611.1

(Estimation) (Estimation) (Estimation)(Estimation)

700

600

500

400

300

200

100

0


* Temporary staff and outsourced workers are not included in the number of employees.

Company Name Geniee, Inc.

Business Marketing Technology Business

HeadquarterSumitomo Realty & DevelopmentShinjuku Oak Tower 6th Floor,6-8-1 Nishi Shinjuku, Shinjuku-ku, Tokyo, Japan

Establishment April 14, 2010

Representative President and CEO Tomoaki Kudo

Executive Officers

Director Hiroshi HiroseKatsumasa Niki (Outside)Daisuke Fujihira (Outside)Michimasa Naka (Outside)

Director and Audit &Supervisory Committee Member

Katsuyuki Toritani (Full-time, Outside)Sachio Todoroki (Outside)Fumiaki Goto (Outside)

Employees*258Geniee Japan: 163Overseas subsidiaries: 95

Capital ¥1,539 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)Adskom India Private Limited (India)Chamo,Inc. (Japan)

4-4. Company Profile(As of the end of March 2019)


4-5. Stock Situation (As of the End of March 2019)

Name Shares Owned %

Tomoaki Kudo (Representative Director and President) 6,540,300 36.60

SoftBank Corp. 5,625,000 31.48

Takuya Yoshimura 662,500 3.70

Hiroshi Hirose (Director) 655,900 3.67

Trans Cosmos Co., Ltd. 495,000 2.77

NICE SATISFY LIMITED 402,000 2.24

AT-Ⅰ Investment Limited Partnership 378,200 2.11

Fenox Venture Company Ⅸ, L.P. 258,000 1.44

Anchor Advisors TMT3 Investment Limited Partnership 204,900 1.14

PT Metra Digital Investama 93,000 0.52

The officers of Geniee40.3%

Individuals and others18.3%

Financial institutions

0.2%

Financial instruments brokers1.4%

Other corporations34.7%

Foreign corporations, etc.

5.1%

Major Shareholders Shareholder Composition by Owner

Copyright (C) 2019 GENIEE Inc. All rights reserved. 25Copyright (C) 2019 GENIEE Inc. All rights reserved. 25

Founding Spirit

To create a global technology company founded in Japan.

Mission

Use technology to create new value andwork together with clients to build successWe 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.

4-6. Our Vision

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.

Thank you for your attention.

<Inquiries>

Management Planning Department, IR Group TEL:03-5909-8177FAX:03-5909-8182

URL:https://geniee.co.jp/inquiry/

Documents

FY2018 Results Briefing Materials...12,634 12,770 YoY + 1.1 % * Sales by business are figures before adjustment for cross-business transactions. 1,076 1,170 YoY + 8.7 % 1,039 1,239