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Financial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. Securities Code 3655February 8, 2019
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Page 1: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Financial results for the second quarter

of the fiscal year ending June 2019

BrainPad Inc.

(Securities Code 3655)

February 8, 2019

Page 2: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 1

Introduction

Our Mission

“Create a sustainable futureby advanced data utilization”

Our Vision

“Analytics Innovation Company”Bringing benefits of analytics / AI

to enterprises

Page 3: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 2

Corporate Overview

Group Structure

Listing/Awards received/Certifications

Ranked in “Technology Fast 50 Japan”

nine years in a row as one of the fastest-

growing technology companies

July 25, 2013

Listed on the First

Section of the Tokyo

Stock Exchange

JIS Q 15001

Certification number:

10822646

Certification/system

ISO(JIS Q) 27001

This certification is for our SaaS services

using Web recommendations,

advertisement distribution technologies,

and data analysis technologies.

Consolidated subsidiaries

Unconsolidated subsidiaries

BrainPad Inc.

Mynd, Inc. BrainPad US Inc.

100%

ownership

100%

ownership

Trading name BrainPad Inc.

AddressShirokanedai Bldg.

3-2-10 Shirokanedai Minato-ku,

Tokyo 108-0071, Japan

Phone +81-3-6721-7001

Established 3/18/2004

Listed SectionFirst section of

the Tokyo Stock Exchange (Code: 3655)

Capital ¥ 332M(as of 12/31/’18)

Employees 271 (as of 12/31/’18, Consolidated)

ManagementTeam

Takafumi Kusano Representative Director/

Co-Founder

Seinosuke Sato CEO/Co-Founder

Makoto Yasuda Director

Ko Ishikawa Director/CFO

Yoichiro Shiozawa Director

Tetsuya Sano Outside Director

Haruo Suzuki Statutory Auditor

Keiichi Kato Auditor

Katsuyuki Yamaguchi Outside Auditor

Membership・The Japan DataScientist Society

・Japan Deep Learning Association

Page 4: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 3

Our Clients & Portfolios

These listed clients have conducted business with us and permitted the use and publication of their name, or have already had

their name published alongside our own in press releases or other publications. published in the media.

(as of Fubruary 8, 2019; titles omitted; in no particular order)

Information technology and

communications

Google Cloud Japan G.K., Yahoo Japan Corporation, NIFTY Corporation、GMO Research, Inc., OTSUKA CORPORATION, CCC Marketing Co.,Ltd., istyle Inc., Aerosense Inc, Interspace Co.,Ltd., OM Network Co., Ltd.,DAIWABO INFORMATION SYSTEM CO., LTD., Trend Micro Incorporated, CrowdWorks Inc., X-planet inc.

Electronics Mitsubishi Electric Corporation

Chemical (include

consumer product)Lion Corporation, KOSÉ PROVISION CO., LTD., FANCL CORPORATION, FUJIFILM Healthcare Laboratory Co., Ltd.

Medical・Pharmaceutical Bayer Yakuhin, Ltd., Medical Data Vision Co.,Ltd.

Retail・Distribution

Lawson,Inc., Takashimaya Company,Limited, TSUTAYA Co., Ltd, GEO CORPORATION、PEACH JOHN CO.,LTD, KONAKA CO.,LTD.,K.K.B4F, FELISSIMO CORPORATION, Golf Digest Online Inc., ASKUL Corporation, Dinos Cecile Co., Ltd., OAK LAWN MARKETING, INC.,Wacoal Corp., Nishikawa Sangyo Co.,Ltd., Oh My Glasses Inc., ANA TRADING CO., LTD., I-ne CO.,LTD, ENOTECA CO.,LTD.,DORAMA INC.

Food provisions・Food

service

SKYLARK HOLDINGS CO.,LTD., Ajinomoto Co.,Inc., Kirin Company, Limited, Kewpie Corporation, COCA-COLA(JAPAN)COMPANY,LIMITED, MORINAGA MILK INDUSTRY CO.,LTD., KIKKOMAN CORPORATION,SHiDAX CORPORATION, UCC HOLDINGS CO.,LTD, JAPAN TOBACCO INC.

Banking・Securities・CardSMBC Nikko Securities Inc., Mizuho Securities Co., Ltd., The Bank of Yokohama,Ltd., JCB Co., Ltd., Daiwa Securities Co. Ltd.,MATSUI SECURITIES CO.,LTD., Shinsei Bank,Limited, Sumitomo Mitsui Trust Bank, Limited, The Iyo Bank,Ltd., Orient Corporation,POCKET CARD CO., LTD.

Education・Human resource・Consulting service

Persol Career Co., Ltd., Matching Service Japan Co., Ltd., Recruit Staffing Co.,Ltd., TechnoPro Holdings,Inc.,DISCO CORPORATION, Nikkei HR,Inc., Kawaijuku Educational Institution, Z-kai Inc., Pasona Tech, Inc.

Air transportation ・Travel・Hotel

Japan Airlines Co.,Ltd., ALL NIPPON AIRWAYS CO., LTD., Kyushu Railway Company, JTB Corp., Nippon Travel Agency Co.,Ltd.,YAMATO TRANSPORT CO., LTD., Yuko Yuko Holdings Inc., TABIKOBO Co. Ltd., Hilton WorldWide

Construction・HousingYachiyo Engineering Co., Ltd., MISAWA HOMES CO.,LTD., DAITO TRUST CONSTRUCTION CO.,LTD., Sekisui House,Ltd.,Nomura Real Estate Urban Net Co., Ltd.

Media・Advertisement・Entertainment

NIKKEI STYLE, The Asahi Shimbun Company, WOWOW INC., SEGA Holdings Co., Ltd., Fuji Television Network, Inc.,THE YOMIURI SHIMBUN(Tokyo head office), JTB Publishing,Inc., HAKUHODO PRODUCT'S INC.,Beacon Communications K.K., J-WAVE i Inc.

The others Satofull Co., Ltd., ASOVIEW Inc.

Page 5: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 4

- Receive orders and tackle projects according to the business challenges of each customer

- Project periods varies from several months to multiple years, team structures varies from a few people to around 10 people

- Totals are calculated as flow-type sales, but many customers re-contracting us every few months whomwe support over long terms

Analytics Business

Support enterprises to improve their business performance by Data analytics. Analytics consultant and

specialized data scientists provide high value to their business. BrainPad holds 80+ data scientists which is

biggest in domestically in Japan.

Characteristics/strengthsProfit structure of previous fiscal year (Consolidated results of fiscal year ended June 2018)

Primary services

- Personnel expenses accounts for most part of the cost of sales

- Other costs include server expenses and software expenses

Segment profitability: 35.0%

- Organization boasting the largest number of data scientists in the industry

- Experience in supporting broad range of businesses, without specializing in specific field

- Knowhow that allows us to apply cutting-edge technologies such as AI, statistical sciences and mathematical engineering to actual businesses

- Organizational strength that allows us to start hiring new graduates quicker than other companies in the industry, and to continue training around 10 to 20 new graduates each year

Reorganize and innovate businesses processes

through the use of AI and machine learningTraining data utilization personnel / structuring

organizations and systems

Net sales

\1.6 billion

Profit

\0.56

billion

Cost of

sales

\1.04

billion

Improve marketing and CRM

based on real time data

Apprehension of customer business structure through analysis;Establishment of customer growth strategies;Optimal distribution of resources (time, costs);Construction of marketing systems;Measurement of effects of policies ...and more.

Optimization of supply chains(Distribution, dispatch, staffing, demand prediction, etc.);Optimization of production processes (Fault detection, yield improvements, etc.);Detection of unauthorized transactions;Logic development utilizing AI;Image analysis by using deep learning ...and more.

Structuring and start-up support of organizations and systems for data utilization;Training data utilization personnel and providing customized programs incorporating data scientist training methods...and more.

Page 6: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 5

exQuick

Without using SQL,

marketer, business

person can obtain

necessary data

intuitively.

Intuitive

data extraction

- Approximately half is stock-type sales consisting of monthly usage fees and maintenance fees, and the other half is flow-type sales consisting of batched license sales, development sales, and human support sales

- Flow-type sales instantly increase where there are large license sales or orders for development or human support projects

Solution Business

Business of developing data analytics platform and licensing of foreign-produced machine learning based

packages and integrate them into enterprises’ systems. Licensing business domain is marketing

automation/CRM, including social listening systems.

Characteristics/strengthsProfit structure of previous fiscal year (Consolidated results of fiscal year ended June 2018)

Primary products handled

- License purchase, subcontract expenses for contracted development, etc., accounts for most part of the cost of sales

- Subcontracting is used mostly for development work to control profitability

- Percentage of purchase and subcontracting expense is highest among our three lines of business

Segment profitability: 21.4%

- From standpoint that is not dependent on vendors,

customers can choose from flexible systems that suit their

needs

- Find and select unique foreign tools. Numerous tools are available in Japan only through us

- Based on abundance of experience, we are able to

provide optimal analysis environments and tools for data

utilization

Crimson Hexagon

ForSight™

Platform

Analysis of worldwide

customer engagement

through social media.

Social listening

platform

WPS AnalyticsAn Integrated Modular

System perform statistical

and graphing functionality,

and makes it possible to

run many applications

written in the SAS

language.

SAS-compatiblesystem

SAP®

Predictive Analytics

Predict target with

score (%) , cluster,

project demand by

machine learning.

Automate whole

process.

Machine learning

Tableau

Capable of visualizing

data to communicate the

messages contained

Visualization

Microsoft Azure

Provide necessary

functions for utilization

of Big Data on

Cloud Platform.

Cloud platform

Developed by our company Products of which we are the sole distributor in Japan Others

BrainRobo

RPA (Robot Process

Automation) software.

Improve efficiency of

enterprises’ business

process.

Robotics process

automation

ProbanceMarketing automation

for B2C market. Web

visitors preference

prediction by machine

learning, get highest

ROI.

Marketing

Automation

Net sales

Profit

\0.3 billion

\1.41

billion

Cost of

sales

\1.11

billion

Page 7: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 6

- Products developed by our company are used on a monthly subscription basis (Majority of sales are related to “Rtoaster”)

- A stock-type business model in which sales increase as long as customers do not cancel their subscriptions

- Some flow-type sales from customized development and deployment consulting expenses

Digital Marketing BusinessSupport to enhance enterprises’ digital marketing businesses. Our home grown Rtoaster, provides DMP and

recommendation services to enterprises. Rtoaster and Ad products are integrated by natural language

processing developed by our wholly owned subsidiary Mynd, and our own analytics technologies.

Characteristics/strengthsProfit structure of previous fiscal year(Consolidated results of fiscal year ended June 2018)

Primary products handled (all developed in-house)

A majority of the costs of

sales is for server

expenses for operating

products developed by our

company and personnel

expenses for developing

products

Segment profitability: 24.3%

- Develop and provide “Rtoaster” which has the highest share in the DMP market (3.0 billion cases of tracking, and 200 million items)

- Productization of sophisticated algorithms developed in-house, characteristic of an analysis company

- Can be incorporated with products of other companies, regardless of the vendor, and can perform digital marketing by employing “Rtoaster,” a private DMP, at the center

Mynd plusNatural language

processing engine.

Analyze context,

abridge, etc.

Natural Language

Processing

L2MixerAutomatic Listing Ads

bidding system. Achieve

highest ROI without

human involvement.

Listing Ads

Optimization

RtoasterVarious marketing

tactics are applied using

DMP. No.1 product in

the private DMP domain.

Private DMPrecommendation

DMP market: Share of Sales Proceeds by Vendor

[Results for FY2014, FY2015, and FY2016]

Sources: ITR “ITR Market View: E-mail/Web

Marketing Market 2018”

“ITR Market View: Marketing Management Market

2017”

AdNoteOperation supporting tool

for Ads. The two features

are auto reporting (20

report types) and a

simulation for advertising

budget allocation.

Ads operation

support

Net sales \1.0 billion

Profit

\0.32 billion

\1.32

billion

Cost of

sales

Page 8: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Consolidated financial highlights

for the second quarter

of the fiscal year ending June 2019

Page 9: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 8

Consolidated net sales

806 923 1,168

7891,048

1,342943

1,138

990

1,2223,528

4,332

2,510

0

1,000

2,000

3,000

4,000

5,000

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別売上高

4Q

3Q

2Q

1Q

+27.3%

1,1271,600

516 697990

1,209

1,407

505639

823

1,192

1,325

574

635

696

3,528

4,332

1,5951,971

2,510

0

1,000

2,000

3,000

4,000

5,000

2017年

6月期

2018年

6月期

2017年

6月期2Q

2018年

6月期2Q

2019年

6月期2Q

百万円セグメント別売上高

マーケティングプラットフォーム事業

ソリューション事業

アナリティクス事業

■Marketing Platform

■Solution

■AnalyticsNet sales by SegmentNet salesMillion

JPYMillion JPY

FY2017

FY2018

FY2019

FY2017

FY2018

FY20182Q

FY20192Q

FY20172Q

Page 10: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 9

Consolidated operating income

359

560

143217

410

155301

64131

227265322

124151

176

-630 -598

-287 -287 -327

-800

-600

-400

-200

0

200

400

600

800百万円 セグメント別営業利益

アナリティクス事業

ソリューション事業

マーケティングプラットフォーム事業

本社費

40 51

2083

160

278

76

207

29

166

148

585

486

0

100

200

300

400

500

600

700

2017年

6月期

2018年

6月期

2019年

6月期

百万円四半期別営業利益

4Q

3Q

2Q

1Q

2017年

6月期

+129.5%

2018年

6月期

2018年

6月期2Q

2017年

6月期2Q

2019年

6月期2Q

FY2017

FY2018

FY2019

FY2017

FY2018

FY20182Q

FY20192Q

FY20172Q

■Marketing Platform

■Solution

■Analytics

■Head office costsOperating incomeOperating income

by SegmentMillion JPY

Million JPY

Page 11: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 10

Consolidated ordinary income / profit

12 35147

30111

192

73

144

36

117

151

407

339

0

100

200

300

400

500

600

700

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別当期純利益

4Q

3Q

2Q

1Q

27 53

2158

162

281

79

209

29

172

144

596

496

0

100

200

300

400

500

600

700

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別経常利益

4Q

3Q

2Q

1Q

+132.8%

+129.9%

FY2017

FY2018

FY2019

FY2017

FY2018

FY2019

Ordinary income ProfitMillion JPY

Million JPY

Page 12: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Unconsolidated financial highlights

for the second quarter

of the fiscal year ending June 2019

Page 13: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 12

Stock-type / Flow-type-sales

420 625 800 1,078 1,295 1,327 1,588 1,740

910

927

1,320 1,2821,436

1,386 1,565

1,928

2,591

1,597

1,3471,946 2,082

2,5142,680

2,893

3,516

4,332

2,507

36%

0%

20%

40%

60%

80%

100%

0

1,000

2,000

3,000

4,000

5,000

2011年

6月期

2012年

6月期

2013年

6月期

2014年

6月期

2015年

6月期

2016年

6月期

2017年

6月期

2018年

6月期

2019年

6月期2Q

百万円 単体売上高(ストック/フロー別)およびストック型売上高の比率

フロー型売上:開発売上、一括計上型のライセンス売上など

ストック型売上:月額サービス利用料、保守売上など

売上高に占めるストック型売上高の比率

FY2017

FY2018

FY20192Q

FY2015

FY2016

FY2013

FY2014

FY2011

FY2011

Stock-type / Flow-type salesMillion JPY

■Flow-type-sales

■Stock-type-sales

■Stock-type-sales rate of net sales

Page 14: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 13

The number of employees

62 80116 118 129

88

2942

48 4957

4044

62

73 7687

6442

33

24 26

45

22177

217

261 269

318

214

0

50

100

150

200

250

300

350

2016年

6月期末

2017年

6月期末

2018年

6月期末

2019年

6月期2Q末

2019年

6月期目標

<参考>

2018年

6月期2Q末

名 従業員数の内訳(単体)

その他

マーケティングプラットフォーム事業

ソリューション事業

アナリティクス事業

■Marketing Platform

■Solution

■Analytics

■Others

The number of employees

FY2018

FY2016

FY2017

FY20192Q

FY2019target

FY20182Q

Page 15: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 14

Analytics Business(1)

75 9316767

125

243

112

197104

145358

560

410

31.8%

35.0%

41.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

200

400

600

800

2017年

6月期

2018年

6月期

2019年

6月期

百万円四半期別セグメント利益

4Q

3Q

2Q

1Q

利益率

267 338 445

249360

545305

459306

4431,127

1,600

990

0

500

1,000

1,500

2,000

2017年

6月期

2018年

6月期

2019年

6月期

百万円四半期別売上高

4Q

3Q

2Q

1Q +88.6%+42.0%

Net sales Operation IncomeMillion JPY

Million JPY

FY2017

FY2018

FY2019

FY2017

FY2018

FY2019

OperatingIncometo salesratio

Page 16: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 15

Analytics Business(2)

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

167

218204 207 198 205 204

177161

220

280

204

267249

305 306338

360

459443 445

545

24

3937

53

38

5558

60

37

49

53 53

41

4951

48

42

5255

46

36

46

0

10

20

30

40

50

60

70

0

100

200

300

400

500

600

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

顧客数百万円

売上高

顧客数

■Net sales

■The number of customersMillion JPY

Customers

Page 17: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 16

Solution Business(1)

42 349222

97

135

55

6936

101

155

301

227

12.8%

21.4%

27.6%

0.0%

10.0%

20.0%

30.0%

40.0%

0

100

200

300

400

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別セグメント利益4Q

3Q

2Q

1Q

利益率

260 282 385

245357

438333327

371441

1,209

1,407

823

0

500

1,000

1,500

2,000

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別売上高

4Q

3Q

2Q

1Q

+74.1%

+28.9%

Net sales Operation IncomeMillion JPY

Million JPY

FY2017

FY2018

FY2019

FY2017

FY2018

FY2019

OperatingIncometo salesratio

Page 18: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 17

Solution Business(2)

77 7789

107 108 109 117123

109 110 110 114 119125

151 148 146 146 149166 164 169

55

253

91 13365 145

104

145

77

89140

150141

120

182224

136211

178

276

222 269

6065

63 7265

7490

91 101

108124

127127

142 146153

158

172183 188

175186

0

50

100

150

200

0

100

200

300

400

500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

顧客数百万円

ストック型売上:月額サービス利用料、保守売上など

フロー型売上:開発売上、人的支援売上など

顧客数

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

■Flow-type-sales

■Stock-type-sales

■The number of customersCustomersMillion

JPY

Page 19: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 18

Digital Marketing Business(1)

67 65 85

60 8896

73

10067

66267

319

18122.6%

24.2%

26.1%

0.0%

10.0%

20.0%

30.0%

40.0%

0

100

200

300

400

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別セグメント利益4Q

3Q

2Q

1Q

利益率

275 301 336

292 331 358

302351

310333

1,1801,316

694

0

500

1,000

1,500

2,000

2017年

6月期

2018年

6月期

2019年

6月期

百万円 四半期別売上高

4Q

3Q

2Q

1Q

+9.8%

+18.9%

Net sales Operation IncomeMillion JPY

Million JPY

OperatingIncometo salesratio

FY2017

FY2018

FY2019

FY2017

FY2018

FY2019

Page 20: Financial results for the second quarter of the fiscal … results_v2.pdfFinancial results for the second quarter of the fiscal year ending June 2019 BrainPad Inc. (Securities Code

Analytics Innovation Company ©BrainPad Inc. 19

Digital Marketing Business(2)

160173

187208

230 230 221 215 216227 223 218

231 239250 251

260283 292 286 290 287

7

2726

49 20 1113 41

5862 64

61 44 53

53 5941

48 59 47 4670

94104 101

118125 126 124 127 123

130138 136

130136

153162 164

171180 180 178 181

0

20

40

60

80

100

120

140

160

180

200

0

50

100

150

200

250

300

350

400

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

顧客数百万円

ストック型売上:月額サービス利用料、保守売上など

フロー型売上:開発売上、人的支援売上など

顧客数

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

■Flow-type-sales

■Stock-type-sales

■The number of customers CustomersMillion JPY

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APPENDIX

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Analytics Innovation Company ©BrainPad Inc. 21

Our values: The best way to create valuable data

A variety of IT related vocabulary has nowadays become popular and commonplace.

“It is however necessary to utilize this vocabulary in order to obtain efficiency and innovation.”

• BrainPad is a leading company of data utilization. We have been engaged with Business Creation&

Management Improvement since our establishment in 2004.

• Business Creation& Management Improvement are driven by the use of data derived from Analytics

and Engineering.

Big Data

Machine Learning

IoT/IoEInternet of Things

Internet of Everything

AIArtificial Intelligence

Prediction・Optimization

Data ScientistDeep Learning

Data Analytics

Data Utilization FinTech

MA

(Marketing

Automation)

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Analytics Innovation Company ©BrainPad Inc. 22

3 competences BrainPad can add unique value

Since its founding in 2004, BrainPad have supported utilizing data

for more than 800 companies. By utilizing an abundance of accumulated

knowledge, we can solve management issues for a wide range of industries.

BrainPad employs more data scientists than the any other company in Japan -

80 in-house specialists in total. Our Data scientists specialize in various

disciplines, and technical expertise across all industries, with a wealth of

analytical experience. We organize teams according to our customer's needs at

the highest analytical level.

Through technical experience and cutting-edge technology, BrainPad boasts the

ability to effectively ”shape" systems and software. The high level of technology

and expertise has been effectively proven with the creation of our No. 1 product

"Rtoaster" in the digital marketing domain

Data utilization for more than 800+ companies

100+ Data scientists

No.1 product in DMP Area

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Analytics Innovation Company ©BrainPad Inc. 23

Our USP & Cutting Edge Capabilities

Verification of

feasibility & ROI

by Trial Analysis

Development of

Platform & algorithm analysis

to solve business challenge

Application to

actual business operations

&

Monitor and support

operation improvements

for

lasting business success

Visualization of business challenges

Assessment & Concept design

Our services can be applied to whole stages where big data analysis is necessary for solving business challenges.

The stages include concept design through to actual operations.

Our services

Strategic consulting firmRelated product vendors specialize in

digital marketing and analysis

Major systems integrated company(Current condition: lack of Analysis specialists )

Major consulting firm (Strategy, organization. technology Outsourcing )

(Current condition: pool of specialists analysis is small, and still accumulating knowledge of IT )

The o

ther c

om

pany’s

Busin

ess d

om

ain

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Analytics Innovation Company ©BrainPad Inc. 24

Build the entire infrastructure

for data utilization

・Plan data utilization

・Build analysis infrastructure

・Operations support

Our Service①:Big Data Utilization Service

BrainPad provides services that solve the following problems

by utilizing the knowledge of many professionals who specialize in managing big data.

Improve overall of PDCA

(in terms of marketing)

・Understand customer behavior

・Lead nurturing

・Measure effectiveness

・Optimization

Improve marketing and CRM

based on

real time data

Optimize business processes

using analytics

・Sales

・Manufacturing

・Supply chain management

・New business

Develop human resource,

Build specialized structure

・A roadmap for

autonomous data utilization

・Train human resources

to be able to utilize data

・Develop specialized

organization and structure

Reorganize and innovate

businesses processes

through the use of

AI and machine learning

Build platform for big data

analysis

・Develop human resources to

manage and utilize data

professionally and accurately

・Built Organization/ structure

Marketing Analytics

Specialists

(Consultant/advisor

・Data Scientist)

Machine Learning

/Deep Learning,

IoT, AI Specialist

(Data Scientist・ Engineer)

Analysis Environment

& Software Production

Specialist

(Product consultant・

System engineer)

Corporate Training & HR

Development Specialist

(Consultant/advisor

・Instructor)

Sp

ecia

lists

p

rovid

e th

ese s

erv

ices

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Analytics Innovation Company ©BrainPad Inc. 25

Our Service②:Digital Marketing Service

High Value Products & Services

BrainPad provides expert digital marketing services.

These service includes; data analysis, system builds and implementation, and expert consultancy,

with the option of our No. 1 digital marketing product:"Rtoaster" .

+ Analysis + System building+Consulting

for implementation

Understand and develop customer requirements

through analysis made conducted by our expert

team (Data Scientists)

Build, modify and Repair systems to integrate

with existing data, creating a more efficient

system.

Implementation & operational support

provided by our expert DM specialists.

RtoasterVarious marketing tactics

are applied using DMP.

No.1 product in the private

DMP domain.

Private DMP

recommendation

L2MixerAutomatic Listing Ads

bidding system.

Achieve highest ROI

without human involvement.

Listing Ads

Optimization

AdNoteOperation supporting tool

for Ads. The two features

are auto reporting (20

report types) and a

simulation for advertising

budget allocation.

Ads operation

support

Mynd plusNatural language

processing engine.

Analyze context, abridge,

etc.

Natural Language

Processing

ProbanceMarketing automation for

B2C market.

Web visitors preference

prediction by machine

learning, get highest ROI.

Marketing

Automation

Crimson Hexagon

ForSight™

Platform

Analysis of worldwide

customer engagement

through social media.

Social listening

platform

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Analytics Innovation Company ©BrainPad Inc. 26

Our Product:Specialist of utilizing data

In-house developed product BrainPad is the exclusive reseller in Japan The others

UltiPad

Optimization tool, satisfying large number of constraints working with predictive scores.

Optimization

engine

BrainRobo

RPA (Robot Process Automation) software.

Improve efficiency of enterprises’ business process.

Robot process

automation

Conomi

An algorithm find the most

effective combination of an

individual and a product

from various combinations

by utilizing collected and

accumulated data source.

Recommend engine

Marketing

Visualization

&

Business

Intelligence

Data mining

&

Machine learning

Analytical

Infrastructure

Optimization

RPA

applications

RtoasterVarious marketing tactics

are applied using DMP.

No.1 product in the private

DMP domain.

Private DMP

recommendation

L2MixerAutomatic Listing Ads

bidding system.

Achieve highest ROI

without human involvement.

Listing Ads

Optimization

AdNoteOperation supporting tool

for Ads. The two features

are auto reporting (20

report types) and a

simulation for advertising

budget allocation.

Ads operation

support

Mynd plusNatural language

processing engine.

Analyze context, abridge,

etc.

Natural Language

Processing

ProbanceMarketing automation for

B2C market.

Web visitors preference

prediction by machine

learning, get highest ROI.

Marketing

Automation

Crimson Hexagon

ForSight™

Platform

Analysis of worldwide

customer engagement

through social media.

Social listening

platform

exQuickWithout using SQL, marketer, business person can obtain necessary data intuitively.

Intuitive

data extraction

TableauInteractive data visualizations.

Visualization

SAP® Predictive

Analytics

Predict target with score

(%) , cluster, project

demand by machine

learning.

Automate whole process.

Machine

learning

WPS AnalyticsAn Integrated Modular

System perform statistical

and graphing functionality,

and makes it possible to

run many applications

written in the SAS language.

SAS-compatible

system

Cloud

platform

MapR

Hadoop product compatible with apache.

Highest speed data processing to deliver business value in seconds.

Hadoop

SAP HANA®

In-memory database developed for high speed analysis of numerous data.

In-memory

database

SAP® IQ

High performance column based Database Software.

Big data

data warehouse

Microsoft Azure

Provide necessary functions for utilization of Big Data on Cloud Platform.

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Analytics Innovation Company ©BrainPad Inc. 27

This material is unpublished document protected by Copyright Law of Japan and each country.

This material contains confidential information.

The contents of this material all information here in may not be disclosed to any third party.

Except for evaluation purposes, copying or publishing any or part of information herein is strictly prohibited.

Using or disclosing any or part of information from Brainpad inc. without prior written authorization is strictly prohibited.

BrainPad Inc.

Shirokanedai Bldg.

3-2-10 Shirokanedai Minato-ku,

Tokyo 108-0071, Japan

+81-3-6721-7001

www.brainpad.co.jp [email protected]

Analyt ics Innovation Company


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