fy2017 financial results - geniee.co.jp · demand side platform ... "japan crm application...

FY2017 Financial Results

May 16, 2018

Geniee Inc.(TSE-M 6562)

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. About Us

1-1. Our Vision


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


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.


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


(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


(*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


（*）

Asian Internet advertising market

2017

¥ 320 billion2022

¥ 670 billion3,200

6,700VIETNAM

INDIA

INDONESIA

MALAYSIA

SINGAPORE

THAILAND


(* Prospect)


• 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―


2. FY2017 Financial Results

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）


• 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


※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


• 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



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


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


zYoY Growth Rate

17.0％10,802

13,707

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

12,634


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


YoY Growth Rate

95.7％549

1,076（Unit: JPY million）


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


zYoY Growth Rate

27.6％814

1,039



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.


Personnel etc

System Development etc.

Office Equipment etc.

Ad. & PromotionDepreciation & amortization

Goodwill

Others


2-10. Stock situation (as of the end of March 2018)


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

3. FY2018 Forecast and Future Growth Strategy

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




• 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


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


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


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


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


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.

4. Reference Materials

Company Profile（As of the end of March 2018）


* 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


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%



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.


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


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


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.

fy2017 financial results - geniee.co.jp · demand side platform ... "japan crm application...

Documents