1H FY2019 Results Briefing MaterialsNov. 13, 2019

1H FY2019 Financial Results Overview

Highlights

2

Consolidated earnings

1H performance strong with respect to full-year business outlookOn operating income basis, return to monthly profitability was achieved in September, setting stage for return to profitability in 3QEBITDA, an important indicator, also up ￥56 million compared to initial forecast

Business situation

Enhancing business portfolio management helped overall resultsIncreased cross-selling contributed to sales in addition to acquisition of large-scale Chikyu ordersNumber of orders received increased in businesses for which authority was delegated

Business outlook

Quarterly forecast revised in light of latest situation, but full-year forecast left as-isGross margin up significantly YoY by 33.1%, and EBITDA recovered sharply to ￥350 million

Aiming to achieve full-year forecast based on strong first-half performance and return to monthly profitability in September

3.39 3.61

-0.162

-0.066

-170000

0

170000

340000

510000

680000

(1,300,000)

0

1,300,000

2,600,000

3,900,000

5,200,000

20/1Q 20/2Q 20/3Q 20/4Q

1H FY2019 Financial Results Overview

3

Quarterly trend in ordinary income

Promoted core policies towards achieving Medium-Term Management Plan, performance strong for most partReturned to monthly profitability on operating income basis in September, setting stage for profitability in 3Q

EBITDA

Ordinary Income

Operating Income

Gross Margin

Net Sales

1H FY2019

7

-0.079

-0.246

-0.229

0.96

Initial forecast

-0.308

-0.3

6.86

0.97

-0.136

Change

+0.14

+0.056

+0.061

+0.07

-0.005

Ratio

－ %

－ %

+2.2%

-6%

－ %

(unit: JPY billion)

Business-Specific Highlights

4

Maintained and optimized existing domains, expanded sales of new products, expanded share in new domains and implemented major update to delivery logic, including the introduction of machine learning.Received contract for new development project in the DOOH domain and inquiries increased steadily.

Ad Platform Business

Net Sales

￥5.63bn

*Business-specific net sales indicate figures prior to elimination of inter-segment transactions

For Chikyu, customer unit prices increased with acceptance of several large-scale orders.Linked Chikyu and MAJIN systems, and cross-sell inquiries increased.Stabilized operations for ad management services and increased new orders.chamo also contributed to sales.

Marketing Solutions Business

Net Sales

￥0.73bnYoY +40.9%

Successfully strengthened reseller business.In cross-border business, we secured order for large-scale campaign with major cosmetics company. Firm transitions in new client numbers.

Overseas Business

Net Sales

￥0.81bnYoY +49.2%

Current FY Core Policies

5

Strengthen business portfolio management 1

Expand cross-sell initiatives 2

Optimize business structure by delegatingauthority to business supervisors 3

Promoted 3 core policies towards achieving Medium-Term Management Plan

Strengthen Business Portfolio Management

6

Overseas ad technology

DOOH

Operating income

Timeframe

Supply side (GenieeSSP)

GenieeDSP

Trading Desk

Expand operating income from main services

Prioritize expanding share for new businesses

From 2H, turn profit for investment businesses

Split into main businesses, investment businesses, and new businesses, to strengthen portfolio management and KPI management for each business phase

Progress

7

New businesses expanded steadily

DOOH

New customers increased, including big ones like major recruiting companies and specialized trading companiesCustomer unit prices also increased

Number of customers increased with addition of new customers, including big ones like accident insurance companiesCustomer unit prices also increased

Delivered programmatic ads to digital signage used at 1,400 dental offices nationwide

Business tie-up with Medical Assist TV Corp.

Expand cross-sell initiatives

8

Market automation toolproviding 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

Merge data and UI

Aggressive development of inter-product cross sales Provide one-stop coverage for marketing domain to build success for our clients

Progress

9

Unification of MAJIN and Chikyu platforms increased cross-selling

Timely handoff of prospective customers

Sales resultsreflected in marketing

Client information shared automatically

Increase company numbers

Increase per-

company net sales

Increase continuity

Transfer authority for following businesses

- Add new functions to improve product quality - Increase cross-selling to reduce client unit price and

increase per company net sales and continuity rates

Optimize Organization Structure

10

Expectations of clients Net Sales

Provided value Gross Margin

Business efficacy EBITDA

Use executive officer system to transfer authority to business supervisors and optimize organization structure Achieve growth this year by prioritizing gross margin

DOOHSupply side DSP

Trading Desk

Progress

11

Functions of each product improving under business supervisors to whom authority was delegated

Supply side

Participating in Google’s Open Bidding as exchange partner

Enables further increase in customer media unit prices

Major update to ad distribution logic

Introduced machine learningEnables more fine-tuning of delivery

DSP

GDX data utilization service launchedAccelerated corporate digital transformations

Data visualizationUser visualizationIncreased profitability through content optimizationSupport business through detection of cause and effect/abnormal values

Advanced analysis

Automatic processing

DMP……

Collection/Sorting

FY2019 Full-Year Business Outlook

FY2019 Full-Year Business Outlook

Quarterly forecast revised in light of latest situation, but full-year forecast left as-isGross margin up significantly YoY by 33.1%, and EBITDA recovered sharply to ￥350 million

13

EBITDA

Ordinary Income

Operating Income

Gross Margin

YoY

− %

− %

FY2018 (Actual)

-0.33

-0.31

Net Sales +4.1%14.95 15.57FY2019 (Forecast)

0.3590.007

0.0232.591.94 +33.1%

0.019 +1789.9%

(unit: JPY billion)

FY2019 Business Outlook (1H and 2H)

Planning on weighted 2H due to ad industry demand periodProfitability for investment business from 2H onward

Net Sales

(Reference)FY2017 Net Sales

Gross Margin

EBITDA

Full-year

15.57

14.38

2.59

0.359

1H (Actual)

7(45.0%)

6.48(45.1%)

0.96

-0.079

8.57(55.0%)

7.89(54.9%)

2H

1.63

0.43814(unit: JPY billion)

Planning on weighted 2H due to ad industry demand periodProjecting quarterly growth by building profit platform

FY2019 Quarterly Business Outlook

15

■ Net Sales■ Gross Margin● EBITDA

3Q FY2019 4Q FY20191Q FY2019 Actual

3.39 3.61 3.884.69

0.46 0.500.63

1

0.3240.114

2Q FY2019 Actual

0.007-0.087

(unit: JPY billion)

Upside/Downside

16

Net Sales ¥15.57 billion

Factors not included in above earnings forecast include the following.

Growth for each business exceeding projections

Increased per-company net sales thanks to increased cross-selling

Rapid commercialization of new businesses

Major change in client business policy

Development delays due to hiring difficulties, increased hiring costs

Impairment from fixed assets, investments

Changes in customs and government regulations unique to each oversea office

Other

Impact of M&A on consolidated accounting: Growth from adding acquired companies to scope of consolidation or negative from investments

Upside Downside

Other

Gross Margin ¥2.59 billion

EBITDA ¥0.359 billion

Reference Materials: Company Profile

Company Profile (As of the end of September 2019)

18

Company Name Geniee, Inc.

Business Marketing Technology Business

Headquarters Sumitomo Realty & Development Shinjuku Oak Tower 6th Floor, 6-8-1 Nishi Shinjuku, Shinjuku-ku, Tokyo 163-6006

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 MemberKatsuyuki Toritani (Full-time, Outside)Yukio Todoroki (Outside)Fumiaki Goto (Outside)

Employee 279 (Geniee Japan: 186; overseas subsidiaries: 93)* Temporary staff and outsourced workers are not

included in the number of employees.

Capital ¥1,541 million

End of Fiscal Year March 31

Group company Geniee International Pte., Ltd.As of the Oct. 1, 2019 Geniee Vietnam Co., Ltd.

PT. Geniee Technology IndonesiaGeniee Adtechnology (Thailand) Co., Ltd.PT. Adstars Media PariwaraAdskom India Private Limited

Stock Situation (As of the End of September 2019)

19

Name Shares Owned %

Tomoaki Kudo(Representative Director and President) 6,540,700 36.51

SoftBank Corp. 5,625,000 31.40

Takuya Yoshimura 662,500 3.69

Hiroshi Hirose (Director) 656,900 3.66

Trans Cosmos Co., Ltd. 495,000 2.76

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 0.51

The officers of Geniee40.2%

Individuals and others18.8%

Financial institutions

0.1%

Financial instruments

brokers0.9%

Other corporations

34.7%

Foreign corporations, etc.5.3%

Shareholder Composition by OwnerMajor Shareholders

19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q

Trend in SG&A Expenses

20

Salary allowance increased with acquisition of human resources for business expansion, but thorough management of costs, including reduction of hiring and outsourcing expenses, resulted in QoQ decrease of 9.4%

0.57 0.5670.582 0.548 0.5510.626

(unit: JPY billion)

Personnel etc.

Other

GoodwillDepreciation and amortization

Office Equipment etc.System Development etc.

Ad. & Promotion

Recent Releases

21

11/11 Programmatic OOH ads can now be delivered to digital signage used at approx. 1,400 dental office nationwide

11/8 Geniee Digital Transformation (GDX) data utilization support service launched

10/10 Leading Russian search engine Yandex to hold first ClickHouse Meetup in Japan at Geniee on Thursday, November 14

9/18 Mr. Kawasaki, executive officer, to appear at APAC Channel Partner Summit hosted by Google

9/13 Geniee called to regular meeting of Digital Signage Consortium (DSC)

9/26 Ad delivery service for apps enhanced and GenieeDMP partnership with ad effectiveness measurement tools Adjust and AppsFlyer launched

9/13 In-house MA and CRM/SFA platforms unified

9/3 GENIEE’s Library business knowledge and information site for solving sales organization challenges officially launched

8/21 Geniee Earns Google Cloud Platform™ Service Partner Certification

8/9 OEM provision of ad distribution functions for Geo Nexus Co., Ltd. next-generation call bell

7/24 Notice on absorption of consolidated subsidiary via merger (short-form merger)

Reference Materials: Commitment 2022

The Geniee spirit and mission

Founding Spirit

To create a global technology company founded in Japan.

Use technology to create new value and work 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.

Mission

23

Sales Trends

24

2015.3*2013.3 to 2015.3 are unit sales, 2016.3 to 2019.3 are consolidated sales figures.

14.9

2019.32011.3

Listed on Tokyo Mothers stock market

1.22.9

7.3

11.7

14.3

0.80.30.05

Capital and business alliance withSoftBank Group Corp.

Started providing

Achieve record high net sales, highest ever since our founding

(unit: JPY billion)

Numerical Goals of Medium-Term Management Plan Commitment 2022

25

25.015.5Net Sales

6.02.5Gross Margin

3.00.3EBITDA

FY2019 (Forecast) FY2021 (Target)

(unit: JPY billion)

Drafted Commitment 2022 as the 1st step towards becoming a global technology company

Our Reason for Being

Source: KAIKA "Japanese Company Management Issues 2017"

Our technology resolves the highest-priority management problems.From startup to becoming an established corporation,improve work efficiency to resolve worker shortage, improve profitability, and contribute to sales growth.

Geniee's reason for being

Japanese company senior management

issues

(3) Improve human resources (Response to hiring, training, and diversification)

(1) Increase sales and share

(2) Increase profitability

Market Scope and Business Opportunities (Japan)

(Source: Fuji Chimera Research Institute, Inc. "Outlook for Digital Transformation Market 2018") (Yano Research Institute "Online Advertisement Market in Japan: Key Research Findings 2018“)

Marketing Solutions Business

2017 Actual 2021 Estimation2017 Actual 2022 Estimation

Online ad market Digital transformation market

2,300

1,300

1,400

560

Ad Platform Business

27

Strong demand on DX market Continue 10%-20% annual growth

(unit: JPY billion)

*Geniee calculations based on eMarketer data

¥670 billion

Asia online ad market

2022

Market Scope and Business Opportunities (Overseas)

2017 Actual 2022 Estimation

¥320 billion

¥670 billionVIETNAM

INDIA

INDONESIA

SINGAPORE

THAILAND

MALAYSIA

2828

Growth speed exceeding Japan to develop products with Japanese quality on a scale of ¥670 billion by 2022, expecting market share growth

29

Marketing technology domain

Ad technology domain

2018/11

2018/06

Supply side

2014/03DSP

DMP2015/01

2019/02DOOH

Overseas expansion of high-share

services

Expand new domains

2016/07

Continue Expanding Business Domains and Areas of Service Provision

29

Service provision areas

2011/04 Indonesia2015/09

India2018/10

Singapore2012/08

Thailand2017/08Vietnam

2013/09

Expand business domains and service provision from ad technology domain to marketing technology domain

Strengths of Geniee

30

3 competitive advantages

Business alliances offering numerous business merits

SB Group

An organization of nearly 100 engineers creating innovative products

Nearly half have a Ph.D. in information engineering

Technology

Entrepreneurial spirit and will to face difficulties

Sell innovative products in Asia

Business development capabilities

What is the Ad Platform Business?

Advertiser

MediaSupply side

(SSP)

User

User attributes and behavior history used to display optimal and high-revenue ads

Supporting ad management to maximize media revenue

Ad slots

Ad

Ad slots

Access 1

Ad request 2 Bid request 3

GenieeDSP

Ad Ad Ad

DSP (Company A)

DSP (Company B)

Ad Ad Ad

Ad Ad Ad

Selectedoptimal ad

bid 5

Bid request 4

Ad placement 6

31

Use user information to achieve all processes related to delivering advertiser's message, from sender website access to add display, in 0.1 seconds or less.

About DOOH

32

Advancing commercialization based on an ad distribution platform for taxi dispatch services launched in February

2017 Actual 2025 Estimation

digital signage domestic market

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

Growth to market scope of ¥300 billion by 2025

Aggressive development of rapidly expanding OOH domain

¥318.6 billion

¥143.7 billion

SFA/CRM Chikyu

33

Constant access to accurate information regardless of time, place, or device

Proposal materials Schedule

Activity history

Daily report

Budget process

Contracts

Estimates

Client information

Tool for real-time visualization and management of sales status Enables data-driven sales activities for all companies, regardless of IT literacy

Maximize sales and

improvement opportunities

Chat Bot Chamo/AI.BiS

34

Chamo Tool enabling auto-push and anonymous communication; adopted by over 4,500 companies

AI.BiS Chamo basic functions combined with additional functions including a tree-structured general chat bot scenario control, search, email transmission, and JS execution

A single tag allows chat support on a website

Auto-chat enables 24-hour web-based customer service Achieve both increased sales and cost reductions

Marketing Automation MAJIN

35

Covers all domains, from customer development and sales to order receipt

Want customers Want to increase inquiries Want to increase visits What to increase

contracts Want to increase loyal

customers

Customer development strategy Site improvements Nurturing qualification strategy Retention strategy

Increase impressions

Increase Website CVR

-Listing -Display ads

-Popups -Website push

-Email campaigns (development existing clients) -Strategy impact analysis -SMS distribution (maximize distribution reach)

Effe

ct

Func

tion

Phas

e

Web ad domain MA domain

Increases business meetings

Increase orders Increase LTV

Tool for achieving 1on1 communication between companies and users

Overseas Business

Distribute ads targeting foreigners visiting Japan to major supermarkets, drug stores, and consumer goods manufacturers

* Cross-border services: Cross-border ad distribution services that generate inbound and cross-border EC marketing opportunities

Ad

INDIA

SINGAPORE

THAILANDVIETNAM

INDONESIA

36

Sell products developed in Japan mainly in Southeast Asia and India

Strengthen and expand cross-border services offered in collaboration with Softbank.

The consolidated earnings goals and other figures indicated in these materials reflect judgments based on information available at the time of creation and contain elements of uncertainty.Actual performance may differ from actual results due to various factors.