Slide 1

Slide 1 text

How to Shape the Entertainment and Business Industries using AR/VR & Blockchain/Crypto Technology Oct 2018

Slide 2

Slide 2 text

1 entertainment company representing the information revolution era We aim to become World’s No.1

Slide 3

Slide 3 text

2 Company Name : gumi Inc. Founded : June 13, 2007 Listed Market : Office locations : Tokyo, Fukuoka, Seoul, Taipei, Singapore, Manila, San Francisco and Paris. No. of employees : 850 (IPO: December 18, 2014) Company Profile gumi is a leading global mobile gaming company.

Slide 4

Slide 4 text

3 Global Footprint

Slide 5

Slide 5 text

4 • Since 2012, gumi has developed and released more than 20 original smartphone native games. • Compared with other Japanese companies, gumi is the only one who use almost only original IP but makes all the released game rank within top 50. Existing Titles − Japan Market BRAVE FRONTIER Genre : RPG #2 Top grossing Phantom of the Kill Genre : Simulation RPG #7 Top grossing FINAL FANTASY BRAVE EXVIUS Genre : RPG #1 Top grossing The Alchemist Code Genre : Tactics RPG #7 Top grossing CRYSTAL OF RE:UNION Genre : Strategy RPG #29 Top grossing Dolls Order Genre : Action #34 Top grossing

Slide 6

Slide 6 text

Existing Titles − Overseas Market • gumi is the most successful Japanese game company who publish Japanese mobile games abroad and achieve great success BRAVE FRONTIER Release Date: December 12, 2013 (US) May 16, 2014 (Europe) Genre : RPG Released Countries: More than 100 countries Total Downloads: Over 16 million 1st Year Sales (after release): Over 8 BN JPY (USD $71M) Total Sales by the End of Jan 2017: Over 20 BN JPY (USD $178M) Ranked at Top 10 in 26 Countries by Gross Sales FINAL FANTASY BRAVE EXVIUS Release Date: June 30, 2016 Genre : RPG Released Countries: All countries except Mainland China Total Downloads: Over 13 million 1st Year Sales (after release): Over 5 BN JPY (USD $44M) Ranked at Top 10 in 23 Countries by Gross Sales 0 20 40 60 80 100 120 140 160 180 200 Sales Ranking (US) 0 20 40 60 80 100 120 140 160 180 200 Sales Ranking 1st Year (US) 5

Slide 7

Slide 7 text

6 Global Publishing and Operations • gumi group has an integrated global publishing and operation system • The whole system covers from Development Operation & User Acquisition to Customer Support & Community Management, to make sure every gumi’s title rank on the top

Slide 8

Slide 8 text

7 New Business

Slide 9

Slide 9 text

8 Approach to New Business • Such as Smartphone first, VR first, Blockchain first, etc. – create business or contents that “can only be done by” or “unique to” that technology and medium • Create brand-new content, experiences, UI/UX, etc. that have never been seen from Zero, rather than on the extension from the past New Technology First! Smartphone VR/AR Blockchain

Slide 10

Slide 10 text

9 Investment policy to new business Investment Open Innovation Business Scheme • Determine startups which can be win in the growing market in the future 3 to 5 years • Invest to multiple companies through Fund etc. • Open innovation to prepare the business environment and to seek the potential of cooperation • Form business scheme e.g. cooperation or Capital and business alliance

Slide 11

Slide 11 text

10 Schemes on Mobile Motion Business • Aggressively investing in the firms which create “High quality motion only on the smartphone” contents. Main Investments dely, Inc. : • “Kurashiru”, an app for cooking, released in May 2016 and hit 13 million downloads. It is the largest cooking video app in Japan. • Raised the total funds of JPY 7 billion. • In July 2018 it became a consolidated subsidiary of Yahoo Japan Corporation. Lute inc. : • Operates the mobile motion media “lute”, mainly transmit cutting–edge music and cultural information by using SNS with a focus on Instagram. • Raised the total funds of JPY 200 million. Candee Inc : • A leading company in the mobile video market. Social live commerce “Line Shop!” released in May 2017. • Raised the total funds of JPY4.15 billion. TABILABO Inc. : • Operating media “BRAND STUDIO” which is about lifestyle for info-sensitive users in generation millennial, offering total promotion combining the real life and digital evolving around the smartphone. • Raised the total funds of JPY 560 million. 3Minute Inc : Plans and creates high quality movies specialized in the field of fashion. It has one of the largest numbers of instagrammers in Japan. It was acquired by GREE, Inc. in Feb 2017 for JPY 4.3 billion. Breaker Inc. : Had big hit first-ever drama-series in Japan on Youtube. Video production studio specialized in digital domain.

Slide 12

Slide 12 text

Schemes on VR/AR business VR/AR Business Incubation Program Global Investments Contents Development 11

Slide 13

Slide 13 text

12 Tokyo XR Startups • Mentors are global leaders and executives from gaming and entertainment industry, together with Professors of universities. Mentors Palmer Luckey (Founder of Oculus VR and designer of the Oculus Rift) Kenei Unoki (Developer, Technical Evangelist at Microsoft Japan Co., Ltd.) Hiroki Omae (Regional Director at Unity Technologies Japan GK) Mike Chi (Director, APAC Sales& Operation/ Head of VIVE X Accelerator) Kazuyuki Hashimoto (Senior Director, Entertainment Technology at NVIDIA Japan) Toyohiro Oura (General Manager, Communications Development Dept, Thirdwave Diginnos Co., Ltd.) Tipatat Chennavasin (The Venture Reality Fund General Partner) Hikaru Adachi (Chief Planner at Digital Platform Center of Dentsu) Yoshikazu Kato (Head of VR Business Office at Softbank Corp.) Tatsuhito Kato (Media Business Division Vice President of TBS) Kohei Noda (Technology Producer of Technology Business Center at Hakuhodo Inc.) Makoto Yamaguchi (Senior Executive Director of Content Creation and Distribution Department at Fuji Television Network, Inc.) Masahiko Inami (Professor, Research Center for Advanced Science and Technology, University of Tokyo) Ryo Shimizu (CEO at UEI Corp.) Hiroyasu Shimizu (CEO at Formulation, Inc.) Takahiko Akiyama (CEO at 4Dbrain Inc.)

Slide 14

Slide 14 text

13 Tokyo XR Startups • 4 out of these 5 companies completed Series A fundraising. 1st Batch Member Companies and Products Oukaichimon : The VR horror game “Chain Man” utilizing physical calculation Hashilus : VR attractions and amusement park InstaVR : - VR contents creation and publishing platform “INSTRA VR” - Completed next financing in 2 million Yen of Series A, and 520 million Yen of Series B Yomune.co : - VR Escape Game “Enigma Sphere” - SWORDS OF GARGANTUA (MORPG) is under development and will be released in winter 2018

Slide 15

Slide 15 text

14 Tokyo XR Startups • All these 4 companies completed Series A fundraising. 2nd Batch Member Companies and Products GATARI Co., Ltd. : Developing social VR application in which the voice is able to be visualized for communication. Jolly Good Co., Ltd. : Develop and operate the VR Solution “GuruVR Media Pro” for TV Stations and producing companies. HoloEyes Co., Ltd. : Developing VR applications for medical use

Slide 16

Slide 16 text

15 Tokyo XR Startups • All these 7 companies completed fundraising. 3rd Batch Member Companies and Products ActEvolve : Developing VR e-Sports game: “BRITZ FREAK” EXPVR, Inc. : Developing VR Manga Hero Action Game “BE THE HERO” mikai inc. : Developing AR camera app “MARGIC”, offering magical AR experience Graffity Inc. : Developing AR graffiti video community “graffity” Pretia, Inc. : Developing social AR app utilizing AI technologies Active8 : Developing and operating the 1st virtual YouTuber “Kizuna Ai”, who has millions of fans

Slide 17

Slide 17 text

16 Tokyo XR Startups • Started the TXS 4th batch in June 2018. Invested in 6 companies. TXS 4th Batch Member Companies and Products unicreate Co., Ltd. : Develop new Vtuber characters unisonlive, inc. : Develop musician VTubers like animation Geocreates, Inc. : Develop the architectural design tool by utilizing eye tracking and electroencephalogram analysis Healthy VR Co., Ltd. : Develop cutting-edge healthcare app utilizing AR for Apple Watch edoga inc. : Develop on-the-job training for companies by using VR technology fav Inc. : Create the Youtube version of “Turtle Talk with Crush”, and operating “Warashibe Kogyo” which produce variety VTubers Coming soon

Slide 18

Slide 18 text

17 Seoul XR Startups • In September, 2016, gumi established Seoul XR Startups (SXS), together with YJM Games Co., Ltd(※) , a major listed game publishing corporation in South Korea. • SXS provides varies of supports to the startups of South Korea, who are developing products utilizing VR technology. Name Seoul XR Startups Co., Ltd. Capital KRW 1.74 Billion Business contents Support the startups in Korea who are focusing on the product development utilizing VR technology. Found date September 2016 Mentors Tipatat Chennavasin (The VR Fund) Micheal Lewis (2049VR) James Blaha (Vivid Vision) Hashimoto Kazuyuki (NVIDIA) Takebe Eika (KOTRA Tokyo IT B/C) Harri Manninen (Nordic XR Startups) Kim Beom Seok (BonAngels Venture Partners) Rim Jong Gyun (oneImmerse) Ryu Sang Woo (oneImmerse) Yoon So Jeong (AJU IB Investment) Kang Eun Hyun (Kang.E.H Law Firm) Heo Jeong Hoon (Lodam Patent Law Firm) No Jeong Seok (Reality Reflection) Ryu Jung Hee (Future Play) Kim In Sook (UNITY KOREA) Lee Jae Hyuk (Samil Pricewaterhouse Coopers) Lee Ho Jae (The Pitch)

Slide 19

Slide 19 text

18 Seoul XR Startups • 3 out of these 4 companies completed Series A fundraising. 1st Batch Member Companies and Products Atticfab : Develop VR specialized chair through development of motion sensor that can recognize motion such as walking and running Awarded the IMPACT-ech Award 2018 in Korea (Master of Science in Information Technology Award) AtoJet Inc : Develop a tool that could produce VR apps and VR web easily, with a market place for VR picture/video contents Hongbin Network Korea : Develop and operate indoor VR arcade center and experiential VR attractions

Slide 20

Slide 20 text

19 Seoul XR Startups • 2 out of these 3 companies completed Series A fundraising. 2nd Batch Member Companies and Products INSQUARE : Develop plenty of VR title & VR Hardware including「VR Magic Flying Dragon」etc. MAMMO6 : Develop Arcade VR action game including 「Virtual Ninja VR」etc.

Slide 21

Slide 21 text

20 Nordic XR Startups • Founded with Nordic Film, the largest film producing corporation in North Europe. • Tekes, the tech bureau of Finland, and FIVR, the largest VR community of North Europe, are NVS’s official support partners. • NVS will provide varies of supports to the startups of North Europe, who are developing products utilizing VR technology. NAME Nordic XR Startups Oy. CAPITAL EUR 1.53 Million BUSINESS CONTENTS Support the startups in North Europe who are focusing on the product development utilizing VR technology. FOUND DATE May 2017 Mentors Antti Kuosmanen (Devices Lead, Microsoft) Peter Vesterbacka (Founder, Slush) Marco DeMiroz (Partner, The VR Fund) Tipatat Chennavasin (Partner, The VR Fund) Olli Sinerma (Chairman, FIVR) Mikko Kodisoja (Co-Founder, Supercell) Tobias Sjogren (CEO, White Wolf Games) Oskar Burman (CEO, Fast Travel Games) Ilari Kuittinen (CEO, Housemarque) Jiri Kupiainen (CEO, Matchmade)

Slide 22

Slide 22 text

21 Nordic XR Startups • 4 out of these 6 companies completed fundraising. 1st Batch Member Companies and Products PIKSELI : The first Nordic VR arcade and custom content management platform Adverty : An device agnostic, non-intrusive advertising platform for games and applications in VR/AR/MR CATLAND : A physics-driven VR bartending simulator. Hip Fire Games : A multiplayer VR game that combines First Person Shooter with Real Time Strategy elements Hip Fire Games

Slide 23

Slide 23 text

22 Incubation Program • To contribute in improving the competitiveness through accelerating open innovation of the virtual reality (VR), to develop a business foundation and a better environment for the startup to compete in the global market by investing • Invested in total 42 companies in Tokyo, Seoul and North Europe. 24 firms of 29 completing incubation program had the additional fundraising • Until the 3rd batch of TXS, the accumulated market to book value ratio(※) is total up to 4. The 4th Batch started from June Totally 15 out of 16 companies successfully completed fundraising (※) Calculated based on gumi's subsidiary, gumi ventures II llp (i.e. Fund)'s investments. Market to book value ratio is calculated by "(Funds' realized gain + Funds' unrealized gain + Funds' investments amount) / (Funds' investment amount)". Realized gain is calculated by "the amount collected by exits of the Fund - invested amount." Unrealized gain is calculated by "(Current valuation of investees * equity ratio) - (Invested amount by Fund)" The valuation of the investment is based on the current value and it does NOT assure our future profit. Totally 5 out of 7 companies successfully completed fundraising Atticfab – member company of the 1st batch - Awarded the IMPACT-ech Award 2018 in Korea Founded in May 2017, totally 6 companies joined the 1st batch Decided to start the 2nd batch

Slide 24

Slide 24 text

23 Venture Reality Fund • Joined as a general partner in Feb 2016 to VR FUND and invested to 26 companies. Name VR FUND, L.P. Fund Size Maximum USD50million Investment Territory Invest globally in VR/AR territory GP Members Marco DeMiroz, Tipatat Chennavasin, gumi America GP Members Marco DeMiroz Tipatat Chennavasin Hironao Kunimitsu Led the largest financing round in VR for Jaunt VR at $65+M. Operational expertise as CEO of PlayFirst (exit to GLUU), Racktivity, and CFO of General Magic (IPO). Board/Advisory Member: Jaunt, Swrve, adaptiv.io, OnKore, Itavio, and others. Deep understanding of VR/AR, mobile gaming, and social media. Pioneer in gesture-based computing, VR/AR thought leader and developer. Creator and co-director of River, the first VR-focused Accelerator. Speaker & Author at SVVR, Upload Demo Day, Casual Connect, VentureBeat. Met & reviewed over 1400+ VR startups. Founder and CEO of gumi Inc., one of Japan’s leading mobile gaming companies, listed with 1st section of the Tokyo Stock Exchange. Ex-creator and director of Atmovie Inc., expertise in film and TV drama contents production.

Slide 25

Slide 25 text

24 Venture Reality Fund • Joined as a general partner in Feb 2016 to VR FUND and invested to 26 companies. Part of Portfolio Companies Hyperbolic Magnetism : ‘Beat Saber‘ record No.1 sales on VR game ranking in year 2018 The Wave VR : Develop multi-platform to allow EDM performance by VR Mindshow : Develop platform to enable animation to create in VR space AGAINST GRAVITY : ‘Rec Room‘ record No.1 in VR game MAU Vivid Vision : Develop system for curing cross-eye & weak eyesight making use of VR SLIVER.tv : VR E-Sports live streaming Platform Raised 20 million USD ICO SPACES : Develop massive VR and AR Arcade Content VIRTUALITICS : Develop VR/AR data visualization tool Exit Owlchemy Labs : ‘Job Simulator’ record No.1 sales on VR game ranking in year 2017. Acquired by Google in May 2017

Slide 26

Slide 26 text

25 Global VR Industry Landscape

Slide 27

Slide 27 text

26 EU VR Industry Landscape

Slide 28

Slide 28 text

27 Global AR Industry Landscape

Slide 29

Slide 29 text

28 Investment Activities • According to the report of VRVCA, gumi group’s investment covered the 3 out of the top 5 in the ranking.

Slide 30

Slide 30 text

5 26 52 22 10 10 125 total investments Investment Portfolio

Slide 31

Slide 31 text

30 No.1 content in VR category Rec Room:VR game MAU No.1 Beat Saber:No.1 in VR game ranking in Year 2018 Job Simulator:No.1 in VR game ranking in Year 2017 The Climb:No.1 in VR game ranking in Year 2016

Slide 32

Slide 32 text

31 VR Game Development • Making strategic investments to a potential companies and studios in and out of Japan. • Aiming to monetizing VR/AR business in early stages through acquiring publishing rights Developed a VR game "Enigma Sphere" that combines giving the feeling of being at the place and multiplayer function. A brand-new RPG “SWORDS OF GARGANTUA” for VR which provides immersive feeling experience is under development Their first VR title - "The Mage's Tale" won first place in the sales ranking in Oculus Store “Wasteland : Frost Point” is under development and gumi group acquired the right of global publishing. The team members were the core members of Crytek’s VR projects - "Robinson: the Journey" and "The Climb“ – which reached over than 10 million USD sales. New title “Shaman: Spirit Hunter” – a high-end multiplayers online hunting game – is under development.

Slide 33

Slide 33 text

32 VR Game Development • VR multiplayer action RPG which enables users to experience a sense of immersion that only VR can deliver • Supports different VR devices e.g. Oculus Rift, HTC VIVE, Windows Mixed Reality • Planning to release in 2018 SWORDS OF GARGANTUA

Slide 34

Slide 34 text

33 VR Game Development • An multiplayer online hunting game which under developing by Playsnak • Planning to release in 2018 Shaman : Spirit Hunter

Slide 35

Slide 35 text

34 VR Game Development • An opened world survival VR game is under developing by inXile • Planning to release in 2019 • Acquired the right of global publishing Wasteland : Frost Point

Slide 36

Slide 36 text

35 VR Contents Development • Actively supporting the development of virtual YouTuber (VTuber), which is showing explosive spread, totally invested in 11 dominant companies. • Including the investment from gumi group, Activ8 completed additional JPY 600 million fundraising. Portfolio Companies fav Inc. : Create the Youtube version “Turtle Talk with Crush”, and operating “Warashibe Kogyo” which produce variety VTuber Activ8 : Activ8 has more than 3 million registers on its YouTube channel of VTuber talent – Kizuna AI, who serve as a goodwill ambassador for travel of Japan. Activ8 opened the network "upd8”, having Kizuna AI and other more than 10 diverse talents participated. Cover : Virtual JK “Toki no Sora (Time Sora)“, a VTuber with Top 10 YouTube channel subscribers. Cover is also offering VTuber live distribution service "HOLO LIVE" utilizing VR / AR technology. Zig : Zig has Vtuber “Musubi Kokoa”, who reached no. 1 in weekly sales on 17Live. The company also has Vtuber group called “Ryuseigun”. Mikai : mikai is operating the idol focus VTuber project “Kagayaki Stars”, foster over than 10 VTubers who can sing and dance

Slide 37

Slide 37 text

36 Reasonable HMD • In May 2018, “Oculus go” – a reasonable standalone Head Mounted Display (HMD) released as 199USD. • Planning to release a high-end model “Oculus Quest” in April 2019. Oculus go Release Date:1st May, 2018 Price:199USD Oculus Quest Release Date:Apr. 2019 (on Plan) Price:399USD

Slide 38

Slide 38 text

37 Global Eco System Korea Japan USA Europe

Slide 39

Slide 39 text

38 Blockchain/Cryptocurrency Initiatives • Founded gumi Cryptos LLC. to join the cryptocurrency・blockchain business. To invest globally in blockchain & cryptocurrency territory through the capital fund. • In the fastest-growing blockchain & cryptocurrency market, we are targeting to monetize by investing in and out of Japan and developing the original contents. gumi Cryptos LLC. Summary 1. Structure Anonymous Association Agreement 2. Fund Size Maximum USD30million 3. Duration Around 3 years(Can extend 2 more years depends on the business judge) 4. Summary Name gumi Cryptos LLC. Location Shinjuku, Tokyo Business Invest globally in blockchain & cryptocurrency territory Founded February 1, 2018 Managing Partner gumi ventures, Inc. Miko Matsumura

Slide 40

Slide 40 text

39 Managing Partners • As a 25 year operating exec in Silicon Valley, Miko has raised over $50 million in venture capital for Open Source startups and over $200M in ICO capital • The founder of the crypto exchange Evercoin • Venture Partner with a cryptocurrency fund-of-funds BitBull Capital • An investor in FileCoin, Brave, CIVIC, Propy, Polymath and Lyft • Pantera Capital ICO Fund 及びFocus Ventures にLP出資 • Currently advises cryptocurrency startups Naga Group ($50M ICO Stock Trading) SwissBorg ($50M ICO Swiss Banking) Playkey ($10.5M Streaming Gaming) Bee Token (Decentralized AirBnB) Celsius (Ether Lending) etc. Miko Matsumura

Slide 41

Slide 41 text

40 Blockchain/Cryptocurrency Initiatives • gumi Cryptos LLC. invested in 3 more companies. • Blockchain project “Financie” by our investee Unicon Pte. Ltd. is under development and started the CBT. (Not available within Japan). Part of Portfolio Companies Basis : A Price-Stable Cryptocurrency with an Algorithmic Central Bank Theta : A decentralized video streaming network, powered by a new blockchain and token ※Invested by gumi ventures ORIGIN Protocol : The sharing economy without intermediaries ROBOT CACHE : The first decentralized PC video game distribution platform with a revolutionary digital resale model Pryze : An automated sweepstakes protocol built on the Ethereum blockchain Sagewise : Develop the first problem solving tool for the smart contract in the world Wificoin : Develop the first blockchain global wifi network in the world Spacemesh : Spacemesh is a fair blockmesh operating system designed to run general-purpose smart contracts at web-scale

Slide 42

Slide 42 text

41 Bitinvestors • Provides the unique evaluation with scores according to the experience of evaluating over than 200 ICO Projects. • Aim to provide a trustable information of the evaluation to increase the transparency of projects, contribute a healthy Blockchain/Cryptocurrency economy system.

Slide 43

Slide 43 text

42 Additional Value gumi Cryptos provides • We have strong connections with all major IT corporations, major investors, and exchanges in Japan and Korea. We will be able to help our portfolio companies to head into the largest cryptocurrency market. • We have built strategic partnerships with ICO media in Japan and Korea that would be able to support your marketing and promotion in Japan and Korea. • BitInvestors (https://bitinvestors.co/) is the first ICO evaluation media in Japan with a large investor user base. (we are one of their shareholder) • 「初めてのビットコイン」 (https://www.newscrypto.jp/) is a cryptocurrency info media. (we are one of their shareholder) • The Bridge (http://thebridge.jp/) is a large IT/High tech genre media, with more than 500K active readers every month. Source: https://www.cryptocompare.com Exchange Ranking # Market Volume 24H (BTC) Country Currency 1 bitFlyerFX 121,473.67 Japan JPY 2 Bitfinex 51,302.46 US USD 3 bitFlyer 18,994.56 Japan JPY 4 GDAX 15,171.37 US USD 5 Bithumb 13,656.95 Korea KRW 6 Kraken 12,074.81 Europe EUR 7 Bitstamp 11,418.27 US USD 8 BitTrex 8,115.85 US USD 9 Zaif 8,014.44 US USD 10 TrustDEX 7,884.45 US USD 11 Coinone 3,723.30 Korea KRW 12 Korbit 3,315.65 Korea KRW

Slide 44

Slide 44 text

43 https://financie.io/ Now Closed Beta Testing! Financie Project

Slide 45

Slide 45 text

44 Approach to New Business • Such as Smartphone first, VR first, Blockchain first, etc. – create business or contents that “can only be done by” or “unique to” that technology and medium • Create brand-new content, experiences, UI/UX, etc. that have never been seen from Zero, rather than on the extension from the past New Technology First! Smartphone VR/AR Blockchain

Slide 46

Slide 46 text

45 The Role of gumi • gumi will become a "bridge" to bring new technology into Japan from overseas to raise Japan's technological capabilities in the future, and then take Japan’s originality to overseas • Absorb high technical strength and know-how, aiming for commercialization and monetization Japan Overseas

Slide 47

Slide 47 text

Thank You Very Much!! Business / Fund raising [email protected] Facebook / LinkedIn Masaru Ohnogi

Slide 48

Slide 48 text

47