アイモバイル（6535） – [Delayed]FY2022 Q2 Business Results Briefing

Business Results for the Six Months of the Fiscal Year Ending July 31, 2022 (August 1, 2021 to January 31, 2022)i-mobile Co., Ltd.(Stock Code 6535, TSE First Section)March 9, 2022ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.1Corporate PhilosophyCreating a Business for the Future“ひとの未来”に貢献する事業を創造し続けるVisionMissionEnhancing User Experience with Internet Marketingマーケティングで価値ある体験を提供し続けるValuesSmile × Growth ×Team笑顔 × 成長 × チームⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.2Financial Highlights for the Six Months Ended January 31, 2022ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.3Executive Summary (1)Reached record highs I. All-time high net sales and operating profit for first six-month periodProfit was 28% higher than forecast, driven by the stable contribution of the ADPF business*1 and areas with strengthened growth such as Furunavi and Ohte in which we have invested aggressively.II. Furunavi—Hometown Tax Donation Service achieved higher sales and profit year on year.The increase in the number of members thanks to market growth and aggressive promotions, and growth in the number of donations contributed to a donation amount that was significantly higher year on year.III. Media-related business*2 continued to contribute to results.The App Operation and MS*3 businesses continued to perform steadily. Profit from the Online Advertising business was considerably higher, up 44% year on year.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.4*1: Ad Platform Business*2: App Operation and Media Solution*3: Media SolutionExecutive Summary (2)ItemFY07/21 Q2FY07/22 Q2YoY (%)(Unit: Millions of yen)% of forecastNet sales7,90910,160128.5%99.6%Consolidated results*Operating profit(OPM)2,577(32.6％)126.8%128.0%Net income1,698133.4%132.6%3,268(32.2％)2,266Net sales6,1678,028130.2%97.4%Operating profit(OPM)2,011(32.6％)2,485(31.0％)123.5%126.1%Net sales1,7572,145122.1%108.6%Consumer ServiceOnline AdvertisingOperating profit(OPM)580(33.0％)837(39.0％)144.2%143.7%*Beginning with the current fiscal year, we adopted the Accounting Standard for Revenue Recognition, etc. and changed the accounting method for revenue recognition.In addition, we re-examined the cost allocation methods of corporate expenses for each segment and also reclassified the past results to reflect the new allocation method.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.5Changes in Consolidated Net Sales and Operating ProfitIn addition to achieving all-time high sales and profit for Q2, we also maintained OPM.(Unit: Millions of yen)Net salesNet sales営業利益Operating profit3,667OPM35.4%1,2991,2113371QQ17,627OPM31.4%6,271OPM31.8%1,9971,6375791,2723631,3342454QQ42QQ23QQ32020年7月期FY07/201QQ12QQ22020年7月期FY07/211,6804213QQ32,0023834QQ42,5332,3978701QQ12QQ22020年7月期FY07/22ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.6Changes in Promotion Cost (as % of Net Sales)While net sales were in line with the forecast, promotion cost was lower than forecast.(Millions of yen)Consolidated net salesOnline ad promotion costConsumer promotion costRatio of promotion cost as % of consolidated net salesQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2FY07/20FY07/21FY07/22*All the amounts shown here are based on the new revenue recognition standards.*Promotion cost consists of promotion expenses and advertising expenses.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.7Changes in Consolidated SG&A ExpensesDespite vigorous promotion continued, Other SG&A expenses*3 remained stable level. Depreciation and amortizationOther*1*2Advertising expenses*2Sales promotion expensesPersonnel expensesNet sales 3,667SG&A ratio 62.1％Net sales 6,271SG&A ratio 68.1％(Unit: Millions of yen)Net sales 7,627SG&A ratio 68.5％*4Q1Q2Q3Q4Q1Q2Q4Q1Q2Q3FY07/21FY07/22FY07/20Employees (consolidated)278275232224219216209204197198*1 Mainly consists of communication expenses, commission expenses, rent expenses on land and buildings, freight costs, travel and transportation expenses.*2 Advertising expenses include the cost of TV commercials that were aired in the following period: FY07/20 Q2, FY07/21 Q2 through Q4, and FY07/22 Q1 through Q2*3 Other SG&A expenses consist of general SG&A expenses, excluding sales promotion expenses and advertising expenses*4 The figures for advertising and promotion expenses shown in this document are adjusted values after reclassifying some transactions that started in the 2Q of the fiscal year ended July 31, 2021, from “advertising expenses” to “promotion expenses.” As a result, some of the figures differ from those in the quarterly reports, showing values before the reclassification.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.8Segment AnalysisConsumer Serviceⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.9Consumer Service—Quarterly Earnings with Results for FY07/22 Q2With the expansion of market growth as a tailwind, and thanks to promotion measures, including TV commercials, online advertising, and unique campaigns, the number of donations, the number of members, and the number of municipalities with which we do business increased, and sales and profit increased from the year-ago quarter.Hometown Tax DonationFurunavi-related ServicesAmid the growing popularity of experience-type return gifts, the number of affiliated lodging facilities in the Travel business more than quadrupled from the year-ago quarter to approximately 840, and the number of participating restaurants in the Restaurant business more than tripled from the year-ago quarter to approximately 180, steadily expanding and contributing to earnings.Net salesOperating profitNet Sales and Operating Profit from Consumer Service Business2,901 Netch Co., Ltd. became the equity-method affiliate.5,307 1,687 1,026 486 110 522 168 574 21 860 324 662 23 879 (60)1,458 444 Q11QQ22QQ33QQ44QQ11QQ22QQ33QQ44QQ11QQ22QFY07/20FY07/21FY07/22(Unit: Millions of yen)6,570 2,040 ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.10Consumer Service—Growth of Hometown Tax Donation BusinessActual number of donationsMembers and contracted municipalitiesNumber of members (1,000 people)1,600Number of members 会員数契約自治体数contracted municipalitiesNumber of municipalities841900Up 8.7%YoYEnd-of-FY targetContracted municipalities: 9001,4001,2001,00080060040020008007006005004003002001000Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q21Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2QQ1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q21Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2QQ1 Q2 Q3 Q4 Q1FY07/19FY07/20FY07/21FY07/22FY07/19FY07/20FY07/21FY07/22ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.11セグメント概況インターネット広告事業ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.12Online Advertising—Quarterly Earnings with Results for FY07/22 Q2 (1)Net Sales and Operating Profit from Online Advertising Business (Unit: Millions of yen)Special demand by large projectsNet sales breakdown (FY07/22 Q2)1,159 1,076 1,068 1,0001,019 931 464 447 406 389 317 App Operation & MS BusinessesAd Platform Business (including others)1,2008006004002000Net salesOperating profitAcquired Ohte, Inc. as a consolidated subsidiary.731 784 750 770 825 251 207 184 223 262 1,4001,2001,00080060040020001. Ad Platform Business*Q11QQ33QQ22QFY07/20Q44QQ11QQ22QQ44QQ11QQ33QFY07/21Q22QFY07/22Sales and profit were up year on year as we succeeded in obtaining ongoing large projects from existing customers even though growth in the number of projects was slow due to the impact of COVID-19 on marketing activities.*Ad Platform Business includes the Ad Network business and the Affiliate business.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.13Online Advertising—Quarterly Earnings with Results for FY07/22 Q2 (2)2. App Operation Business3. Media Solution BusinessWe have approximately quadrupled (11.5 million) The number of accounts that installed Google for compared to the initial number of downloads in the Publishers rose by 113% from the year-ago two years since it became a subsidiary.quarter.Despite the decrease in the number of active users Backed by high advertising revenue with the temporary quiescence of the COVID-19 performance, the increase in the number of pandemic, LTV*1 remained high due to the increase active partners has boosted the profit and drove in the ad unit cost. the business to grow continuously.Number of MAU*2Number of active partners8月10月 1月 4月 7月 10月 1月 4月 7月 10月 1月JanAug OctJan AprJul OctAprOctJanJulFY07/20FY07/21FY07/221Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2QQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2Q1 Q2 Q3 Q4 Q1FY07/19FY07/20FY07/21FY07/22*1 LTV: The total value that a single customer brings to a company over the period of a transaction.*2 MAU refers to Monthly Active Users, indicating the number of active users per month. This graph shows changes based on the average value in the past 30 days at the end of each month. ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.14トピックスⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.15Topics (1)◆ Added d POINT as a new transfer destination for Furunavi Coin◆ Started dealing with “electricity points” that can be used to pay electricity billsWe added d POINT as a new transfer destination for Furunavi Coin. This makes it possible to choose between three transfer destinations: d POINT, Amazon Gift Card, or PayPay balance, providing even greater customer convenience.We started to offer “Minna Denryoku Electricity Points,” which can be used to pay the monthly electric bill when electricity derived from renewable energy is used at home as a gift in return for Watarai Town in Mie Prefecture.◆ Started certificate issuance service to support simplified tax filing proceduresSince this January, instead of the donation receipt certificate issued by municipalities, which is needed to file tax returns, a Certificate of Deduction for Donations can be issued through Furunavi, summarizing the annual donation amount on one page, making the procedure for filing tax returns easier than before.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.16Topics (2)◆ Became the first Japanese business to receive a Perfect Overall Rating at the GCPP Summit◆ Announced the results of research on a model for AI detection of advertising documentsAt Google’s GCPP*1 Summit, we were the first Japanese business to receive the Highest Health Score*2 in recognition of our advertising revenue performance based on the introduction and operation of our publishers.*1 An acronym of Google Certified Publishing Partner. A Google certified partner for site operators. *2 Google evaluates the overall GCPP score of 54 companies worldwide, and the award is given to the company with the highest total score.To strengthen our ad screening standards and screening systems, we aim to further improve the accuracy of screening and increase the efficiency of ad screening operations by conducting AI ad screening in addition to the conventional ad screening through visual inspection, with the aim of making ad distribution even sounder.In December 2021, we established the Hometown Tax Donation Regional Revitalization Collaboration Lab, which will demonstrate solutions for social issues and support for regional revitalization based on a public-private collaboration approach using the corporate version of Hometown Tax Donation and an individual approach using Hometown Tax Donation. ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.17◆ Established Hometown Tax Donation Regional Revitalization Collaboration Lab参考資料ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.18Reference Impact of the Spread of COVID-19 on the Company’s BusinessesSome of our sales activities were constrained by the pandemic, as the government declared a state of emergency. However, people spending more time online positively affected the ad revenue, so the impact on the overall business was limited.Positive factorsNegative factorsConsumer ServicePeople spent more time online as they refrained from going out during the state of emergencyMinorDeclining demand for dining and lodgingOnline AdvertisingGrowing at-home demand resulting from more hours spent at homeMinorSome of the sales activities were constrained due to teleworkingOverall businessNo interference with our operation as we adopted alternative measures such as remote salesPotential Impact of COVID-19 on Our Businessコロナ禍における業績への影響は極めて限定的でありますが、まん延防止等重点措置がWe expect the COVID-19 pandemic to have only a limited impact on our business. However, it is difficult to determine when the pandemic will be over, including the 実施されるなど、未だ収束時期が見通せないことから、今後も国内外の経済を下振れさimplementation of pre-emergency measures. We will therefore need to keep a close eye せるリスクに注意する必要がある状況と考えております。on risks triggering possible economic downturns inside and outside Japan.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.19Reference Business Results and Future ForecastsOriginally founded as an ad network service provider, i-mobile has grown steadily after transforming its business domain by leveraging diversified assets, and it continues to boost its profit through proactive investment. Startup1st GrowthExpansionMaturity2nd GrowthForecast(Millions of yen)Net salesOperating profit18,00016,00014,00012,00010,0008,0006,0004,0002,00001st FY 2nd FY 3rd FY 4th FY 5th FY 6th FY 7th FY 8th FY 9th FY 10th FY 11th FY 12th FY 13th FY 14th FY 15th FY 16th FY 17th FYFY07/08FY07/11FY07/14FY07/17FY07/20FY07/22ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.*All the amounts shown here are based on the new revenue recognition standards.20Reference Core Competence of the GroupLeveraging the expertise in marketing and the workforce we have built in the Ad Platform Business, i-mobile will seek to maintain sustainable growth by shifting our emphasis to more profitable businesses.Ad Platform ServiceAd Network BusinessAffiliate BusinessAd Agency BusinessLeveraging our workforce, customer relations, and expertise in marketingMaximizing Media ProfitPlatform ServiceOwned Media ServiceMedia Solution BusinessHometown Tax DonationApp Operation BusinessReferralLoyalty Points Service iignnatnaMi lhtworgebanatsusiytiliibanatsuSEORrehgHiⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.21Reference Our Strength, Market Opportunities and Growth StrategiesWhile securing stable earnings in the Ad Platform business, i-mobile seeks to strengthen our growth areas: Hometown Tax Donation and App Operation businesses. We also focus on business development by leveraging our assets for growth in the medium-to-long term.Market opportunitiesGrowing Hometown Tax Donation marketGrowing Online Advertising marketGrowing number of wealthy peopleOpportunities for regional revitalizationHighly engaged users and well-known brandHigh customer outreach and profitability cultivated through the expertise in online marketingHighly profitable business with low working capitalshtgnertSSteady profit model and robust financial groundStrategic Investment Acquiring growth business through M&AMaximizing profit in Furunavi-related servicesGrowth AreasActive investment for accelerating the growth of FurunaviEnhancing profit from growing media services incl. OhteMatured BusinessSecuring stable earnings by reconstructing the sales proposal system of Ad Platform (ADPF) BusinessGrowth Strategiesⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.22Reference Target Operating Profiti-mobile aims to generate operating profit of 4.5 billion yen by leveraging our assets to monetize strategic investment areas, while securing stable earnings in the matured business and positioning growth areas as a growth driver in the medium and short term.Operating profit (Unit: Billions of yen)Ad PlatformMedia SolutionApp Operation3.16Hometown Tax Donation/Furunavi-related3.753.384.504.202.24Operating profit CAGR 19.0% for FY07/20 through FY07/24Strategic InvestmentGrowth AreasMatured Business12th FYFY07/1913th FYFY07/2014th FYFY07/2115th FYFY07/2216th FYFY07/2317th FYFY07/24*All the amounts shown here are based on the new revenue recognition standards.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.23Reference Consolidated Earnings Forecast for FY07/22We expect to see an increase in sales and profit as we strengthen M&A capabilities, develop businesses targeted for strategic investment, and actively invest in growth areas while harnessing the growth of the hometown tax donation market.(Unit: Millions of yen)Full-Year Resultsfor FY07/21 (Former revenue recognition standards)Full-Year Resultsfor FY07/21(New revenue recognition standards)Full-Year Forecastsfor FY07/22 (New revenue recognition standards)Changes (%)Net sales17,83311,59214,270+2,678(+23.1%)Gross profitOperating profitNet income11,63611,58414,2603,3823,3823,750+2,676(+23.1%)+367(+10.9%)2,2992,2992,504+204(+8.9%)ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.24Reference Earnings Forecasts by Segment for FY07/22While pursuing investments in our strategic business domains, we expect to generate the same level of earnings in the competitive online ad market. As the hometown tax donation segment will remain strong, sales and profit are expected to increase.(Unit: Millions of yen)ItemFull-year results of FY07/21(former revenue recognition)Full-year results of FY07/21(new revenue recognition & former allocation)Full-year results of FY07/21*1(new revenue recognition & new allocation)Full-year results of FY07/22*1(new revenue recognition & new allocation)Changes (%)Net sales7,8467,7087,70810,102Consumer ServiceOperating profit1,9621,9621,9742,398OPM25.0%25.5%25.6%23.7%Net sales12,1633,9153,9354,173*2Online AdvertisingOperating profit1,4201,4201,4511,436+2,393(+31.1%)+423(+21.5%)+238(+6.0%)–15(–1.1%)OPM11.7%36.3%36.9%34.4%*1 From FY07/22, an alternative allocation method is applied for certain expenses. This reduced the costs allocated to each segment and slightly increased the operating profit of each segment. However, it has no impact on the consolidated results. Note that the full-year results of the fiscal year ended on July 31, 2021, are also reclassified with the new revenue recognition standards applied.*2 As we re-examined the application of Accounting Standard for Revenue Recognition, we corrected some of the information from the business results we disclosed on September 8, 2021.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.25Reference Major Servicesi-mobile aims to achieve growth with high profitability and competitiveness by optimally allocating assets and leveraging synergies of the two business segments: Consumer Service and Online Advertising.SegmentBusinessDescriptionLoyalty Points ServiceLoyalty points service for Furunavi membersecivreS remusnoCignsitrevdAen ilnOHometown Tax Donation platform business “Furunavi”Furunavi TravelFurunavi-related BusinessRestaurant PRAd Platform BusinessAd NetworkAffiliateAd Agency BusinessMedia Solution BusinessApp Operation BusinessA web portal for hometown tax donationLodging points service for Furunavi members in exchange of hometown tax donation via FurunaviService that links local food with restaurants in urban areas through hometown tax donationProviding programmatic ads (display, native, and video advertising)Providing performance-based advertisingOnline ad agency specializing in web marketingGCPP (Google Certified Publishing Partner) providing solution services for maximizing media revenueSmartphone app service provider including its design, development, and operationⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.26Reference Business Model: Hometown Tax Donation Service “Furunavi”Furunavi is a web portal designed to introduce gifts in return of hometown tax donations and other contribution methods for donors.(1) Visit and browse the website(4) Pay a fee corresponding to the donation amountDonorsMunicipalitiesDonors’ flowMunicipalities’ flow(2) Donate to a municipality the user selected on Furunavi(3) Send a return giftThe hometown tax donation system is designed to promote contribution to local municipalities by giving taxpayers an option to choose their hometowns or other regions they wish to support or show appreciation. This system allows taxpayers to contribute to society through donations while giving them options to choose return gifts that many municipalities offer.The tax donations technically work as credits on residence tax that the donors will pay, but in terms of the tax law, this system also provides tax deduction benefits associated with donations.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.27Reference Furunavi-related Services in Consumer ServiceFurunavi-related services feature improved user convenience (original product development and enhanced lineup) and social contribution (through hometown tax donations).Improved user convenienceFurunavi Premium is a hometown tax concierge service targeting high-income taxpayers. It offers a comprehensive service from a proposal of optimal donation plans via the application. Social contributionFurunavi Travel offers original gift certificates accepted by lodging facilities all around Japan in exchange for points individuals earned from donations.Furunavi Catalogue enables users to choose gifts at the timing of their choice after they have received points in exchange of donations.Furunavi Crowdfunding allows taxpayers to choose a municipality with the objective they want to support. The donations are directly given to its regional projects to resolve specific issues. Furunavi Saigai Shien accepts donations for disaster relief. Municipalities affected by natural disasters can start fundraising for recovery through this service. We are using the corporate 企業版ふるさと納税をversion of Hometown TaxDonation as a starting point 起点にした、社会課題のaimed at resolving social issues 解決と地方創生を目指す。and regional revitalization.*1 Brand Image Survey for FY08/21 conducted by JMROⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.28Reference Trends in Hometown Tax Donation MarketThe actual amount received in hometown tax donations is steadily increasing, but in terms of the potential size of hometown tax donations (latent market size), the business still has room for growth*1. We expect this business to expand further as the system becomes stabilized and gains publicity.Latent market sizeHometown tax donation amountLatent market size (forecast)Hometown tax donation amount (forecast)(Unit: Billions of yen)2,2362,3242,4002,4432,4792,4912,5572,5822,627■■■■Furunavi services started.12101438165284365512487*2672201120XXFY■ The latent market size of hometown tax donations for 2011 through 2019 was calculated by i-mobile (using the individual resident tax revenue of 20%), based on 2012201320142015201620172018201920202021the data from White Paper on Local Public Finance published by the Ministry of Internal Affairs and Communications of Japan.■ The hometown tax donation amount for the years from 2011 through 2020 was calculated based on the data from Survey on Hometown Tax Donation published by the Ministry of Internal Affairs and Communications on July 30, 2021.*1 The amounts were calculated based on the market size and growth potential estimated by i-mobile. Note that the amounts may differ from the statistical figures.*2 Market ForecastsThe results including the hometown tax donation amount were calculated based on the municipal fiscal year (from April 1 to March 31 of the following year), which differs from the calculation of residence tax. We believe that a decline in the actual figures from FY2018 to FY2019 does not indicate a contraction of the market itself, as it is reasonable to consider that the market was impacted by a rush demand of hometown tax donations from the end of 2018 up until March 2019, before revisions to the hometown tax donation system went into effect on June 1, 2019.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.29Reference Key Services in Online Advertising MarketThis segment develops and provides a unique ad delivery platform that optimizes advertisers and media to maximize ad effectiveness and revenue, combined with ad agency and media management services provided by our group companies. isecnegAdA&sres itrevdAAd agency■ Ad Agency BusinessProvides online advertising and digital solution service.Ad delivery platformMedia solution platform■ Ad Network(programmatic advertising)■ Media Solution iecvreSisegrenys■ Affiliate(performance-based advertising) Supports media companies to adopt solutions provided by Google and maximize profit.Owned mediaDevelops smartphone apps and runs the operation.■ App OperationiadeMsremusnoCCreates and offers in-house products.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.30Reference Business Model: App Operation Run by Ohte, Inc.Ohte provides smartphone game apps combined with a prize system, featuring Puzzle de Kensho and other high-quality puzzle games. By leveraging i-mobile’s products and marketing management methods, Ohte succeeded in increasing ad revenue of the media business. Service Description & Business ModelOver 11.5 million downloads total*As of January 31, 2022(1) Provide ad slots(1) Clear a puzzle(3) Enter rafflesPuzzle Games×PrizesAd distributor(2) Ad listing fee(2) Receive pointsUsers(4) Winners receive prizes(No in-app charges)ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.31Reference Adoption of New Revenue Recognition StandardsThe Company will adopt the Accounting Standards for Revenue Recognition from the fiscal year ending July 31, 2022. Mainly in the Online Ad business, most entries formerly posted under gross profit will be reclassified as net sales, but there is no impact on operating profit.SegmentBusinessHometown Tax DonationNet totalFormer revenue recognition standards(prior to FY07/21)Net total (partially gross total)New revenuerecognition standards(FY07/22 and onward)Furunavi-related ServicesNet total (partially gross total)Net total(partially gross total)Ad Platform BusinessGross totalAd Agency BusinessGross totalMedia Solution BusinessGross totalNet totalNet totalNet totalApp OperationGross totalGross total*We adopted the new revenue recognition standards from the beginning (August 1, 2021) of the consolidated fiscal year.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.32Consumer ServiceOnline AdvertisingReference Sustainability of the i-mobile GroupBasic Policy on SustainabilityTo realize the Group Vision “Creating a Business for the Future,” we are committed to solving social issues through our business and corporate activities and aim to become an attractive company for all stakeholders by continuously enhancing our corporate value.(1) Promote businesses that will solve social issues(2) Support activities for regional revitalization by working together with local governments and communities(3) Educate and encourage employees to promote sustainabilityMateriality in Four AspectsQOL improvementSocial value creationSustainable urban developmentDiscovering local attractionWe support local communities through our hometown tax donation service Furunavi and Corporate Version of Hometown Tax Donation.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.33Reference Capital and Shareholder Returns Policies1. Fundamental policy on capital management• We plan to improve our return on equity (ROE) through direct profit sharing while securing internal reserves necessary for our future business development and improved financial strength. In addition, we aim to maximize shareholder profits in the mid-to-long term by achieving a high level of total shareholder return, including an increase in the share price resulting from the sustainable growth.2. Implementation of the shareholder returns policy• While preserving the resources required to maintain our business foundation and achieve sustainable growth, we will provide shareholder returns agilely, in addition to considering relevant factors, including our business performance, financial conditions, and internal reserves.• Specifically, we will flexibly conduct share buybacks aiming for better total shareholder returns while providing stable and sustainable dividend payments with a target payout ratio of 30% and DOE at 5%.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.34Reference Changes in Key Performance Indicators*1*3*4*2Net interest-bearing debt = Interest-bearing debt – Cash and cash equivalentsROE = Net income / Average of beginning and ending equityROA = Net income / Average of beginning and ending total assetsEPS = Net income / Average number of outstanding shares during the period*1: All the amounts shown here are based on the new revenue recognition standards.*2: “Net income” refers to “Profit attributable to owners of the parent” in this document.*3: The amounts of net sales and operating profit are before the adjustment of intersegment transactions.*4: Operating profit increased slightly for the fiscal year ended in July 2021 due to a change made to the cost allocation method of corporate expenses for each segment.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.35Ⅱ. Management IndicatorsFY07/17FY07/18FY07/19FY07/20FY07/2119.0%10.2%10.9%13.1%16.5%14.3%7.9%8.4%10.7%13.4%75.055.057.376.6107.4EPS (yen)ROEROAI-2. Financial Results by SegmentFY07/17FY07/18FY07/19FY07/20FY07/21Net sales1,0832,2737,4844,4857,708Operating profit2236802,3131,3251,974Operatingprofit margin20.6%29.9%30.9%29.5%25.6%Net sales4,2253,7293,1523,0373,935Operating profit2,1271,3947708661,451Operatingprofit margin50.3%37.4%24.4%28.5%36.9%OnlineAdvertisingConsumerServiceI-1. Results of Operations（Unit: Millions of yen）FY07/17FY07/18FY07/19FY07/20FY07/214,9595,95910,6117,48511,5924,9305,82010,2027,29211,58499.4%97.7%96.1%97.4%99.9%2,5713,7027,0415,0468,20251.8%62.1%66.4%67.4%70.8%2,3592,1183,1602,2463,38247.6%35.5%29.8%30.0%29.2%2,3552,0953,1492,2483,36647.5%35.2%29.7%30.0%29.0%1,5391,1651,3671,7272,29931.0%19.6%12.9%23.1%19.8%14,15515,46516,91115,35918,99210,87112,04013,14513,22214,720(10,572)(11,016)(13,974)(12,363)(15,422)75.7%76.0%76.5%86.1%77.4%Net interest-bearing debtEquity-to-asset ratioTotal assetsNet assetsNet incomeNet income marginOperating profit marginOrdinary profitOrdinary profit marginSG&A ratioOperating profitSG＆ANet salesGross profitGross profit marginReference FoundersToshihiko TanakaRepresentative Director, ChairmanTetsuya NoguchiRepresentative Director, CEOBorn in 1979. Following a career at an IT company and an ad agency, Tanaka Born in 1974. Following a career at IBM Research Laboratory in Japan decided to launch a startup business on mobile services in light of the and working at Arthur D. Little Japan, Noguchi founded his own tech expanding Internet market, envisioning possibilities for the future generation. In company. Aspiring to start an ad network business, he co-founded i-2007, he co-founded i-mobile with Noguchi and became the Representative mobile with Tanaka and became the Director & CTO in 2007. His Director, CEO. Tanaka has led the expansion of the Internet ad business advanced skill as an engineer allowed him to develop a unique ad specializing in mobile applications, making the company one of the largest ad delivery system for the company. As a CTO, he has been leading the network business providers in Japan. With his outstanding foresight, he was system development, employing extensive market research. In 2017, he able to identify opportunities in businesses to become an intermediary for became the President & Representative Director of the company. hometown tax donations. He is leading multiple projects while continuing to create new businesses.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.36Reference Corporate ProfileCompany namei-mobile Co., Ltd.Share capital152 million yen (as of January 31, 2022)EstablishedAugust 17, 2007Employees198 (consolidated, as of January 31, 2022)N.E.S. Building N, 2F, 22-14 Head officeSakuragaokacho, Shibuya-ku Tokyo Representatives150-0031Business locationsTokyo Head OfficeTokyo Satellite OfficeKansai OfficeHometown Tax Donation platform businessFurunavi Travel businessFurunavi Restaurant PR businessLoyalty Points Service businessDirectors & OfficersGroup business lineupAd Network businessAffiliate businessAd Agency businessMedia Solution businessApp Operation business, etc.Toshihiko TanakaTetsuya NoguchiRepresentative Director, ChairmanRepresentative Director, CEOYoshinori MizotaDirectorYasuhiro FumitaDirectorKunihiro TanakaLead Outside DirectorSatoshi ShimaOutside DirectorYukio TodorokiTadatsugu Ishimoto Outside Director,Akira TakagiOutside Director,Audit & Supervisory Committee member(Full-time)Audit & Supervisory Committee memberOutside Director,Audit & Supervisory Committee memberMajority-owned subsidiariesCyber Consultant, Inc. (100%)Ohte, Inc. (100%)Simple App Studio Inc. (100%)ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.37Disclaimer■ Opinions and forecasts presented in this material represent our views at the time of the preparation of this material, and we make no guarantees or warranties regarding the accuracy of the information. Actual results may turn out to be different due to various factors. While every reasonable care has been taken in preparing this material to ensure it is free from omission or misrepresentation of the facts, we make no guarantees or warranties regarding the accuracy or completeness of the information contained herein.■ The materials and information provided in this presentation may contain forward-looking statements. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, general industry and market conditions, general economic conditions within Japan and those on a global level, which include fluctuations of interest rates and currency exchange rates. We assume no obligation to update or revise the forward-looking statements contained in this presentation, even if new information becomes available through future events.ⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.38Creating a Business for the Futureⓒ 2022 i-mobile Co., Ltd. All Rights Reserved.39