FY2018 Results

Our Mission

2

Business Intelligence to Change Your WorldCombining technological innovation with human ingenuity to organise and analyse business information from around the globe. We will reshape your world with a service that improves your productivity and unleashes your creativity.

Our Services

3

B2B Service

An information platform comprising comprehensive company and industry analyses with statistical data

Our Services

4

B2C Service

Economic and BusinessNews Media

(for Japanese Market)

Our Services

5

B2C Service

Economic and BusinessNews Media

(for US Market)

6

INDEX010203

04

Highlights of Consolidated Results

Highlights for SPEEDA

Highlights for NewsPicks

Highlights for Quartz

05 FY2019 Targets

06 Appendix

01

7

Highlights of FY2018 Consolidated Results

(*) Final FY2018 targets were announced on 26 January 2019(*) Revenue and EBITDA related to Quartz are accounted for in FY2018 results for the 5-month period from August to December 2018(*) All figures are rounded down to 1 million(*) EBITDA = Operating Profit + Depreciation and Amortisation (Incl. Goodwill Amortisation)(*) “New Services” refers to “entrepedia” and “FORCAS”

8

Substantial Increase in Both

Revenue and Profit

Both Services Saw Accelerated Growth

Steady Net Sales Increase and

Improved Profit Margin

FY2018 Results Highlights (1)

4,565

9,340

FY2017 FY2018

YoY Growth Rate

+105%

9

FY2016

3,081

+48％YoY

+105％YoY

Excluding Quartz

+52%

2,414

2,962

3,615

34879

2,825

1,661

2,143

938

FY2018 Results Highlights (2) Net Sales

YoY Net Sales Growth Rate Stronger than Previous Year

NewsPicks SPEEDA

New Services *

* “New Services” refers to “entrepedia” and “FORCAS”.* Internal transactions between segments are excluded* EBITDA related to Quartz (acquisition completed on 31 July 2018) is accounted for in FY2018 results for the 5 month period from August to December 2018* Monetary amounts displayed throughout this document are rounded down. Percentage figures are rounded to the nearest whole number .

Quartz

Unit: JPY million

Two-Fold Increase in EBITDA

10

595

1,187

282

FY2017 FY2018FY2016

26022 493

134

(-33)(-204)

855

303

232

+100%Excluding Quartz

+60%

FY2018 Results Highlights (3) EBITDA

NewsPicks SPEEDA

New Services *

Quartz

* New Services refer to “entrepedia” and “FORCAS”* EBITDA = Operating Profit + Depreciation and Amortisation (Incl. Goodwill Amortisation)* EBITDA related to Quartz (acquisition completed on 31 July) is accounted for in FY2018 results for the 5 month period from August to December 2018

YoYGrowth Rate

Unit: JPY million

11

Progress Rate

* Progress Rate shown is calculated in relation to FY2018 Target announced on 26 January 2019* Revenue related to Quartz (acquisition completed on 31 July) is accounted for in FY2018 results for the 5-month period from August to December 2018

FY2018 Revenue Target Achieved

100%

FY2018 Results Highlights (4) Results vs Target

Unit: JPY millionFY2018 Revenue

Results9,340

9,300(Revised target on26 January 2019)

6,700(Original target)

9,000(Revised target on

2 July 2018, median)

FY2018 EBITDA

12

Progress Rate

103%

* EBITDA = Operating Profit + Depreciation and Amortisation (Incl. Goodwill Amortisation)* Progress Rate shown is calculated in relation to FY2018 Target announced on 26 January 2019* EBITDA related to Quartz (acquisition completed on 31 July) is accounted for in FY2018 results for the 5-month period from August to December 2018

FY2018 Results Highlights (4) Results vs Target

FY2018 EBITDA Target Achieved

Unit: JPY million

Results1,187

1,150(Revised target on26 January 2019)

900(Original Target)

1,010(Revised target on

2 July 2018, median)

02

13

Highlights

295

2,276

Total: 2,571 IDs

14

# of IDs in Japan# of IDs Overseas

Steady Rise in the Number of IDsSPEEDA Highlights (1) No. of IDs

* The figures shown are the number of IDs for SPEEDA only, and exclude those for “entrepedia” and “FORCAS”.

0

500

1,000

1,500

2,000

2,500

+37%

15

FY2017 FY2018

+36％YoY

+37％YoY

FY2016

2,904

3,963

2,143

* “New Services” refers to “entrepedia” and “FORCAS”

SPEEDA Highlights (2) Net Sales

YoY Growth Rate Stronger Than Previous Year

Unit: JPY million

SPEEDA New Services

YoYGrowth Rate

16

+42%

+73%Including New

Services

SPEEDA

FY2017 FY2018FY2016

SPEEDA Highlights (3) EBITDA

Steady Increase in EBITDA While Investing in New Businesses

Unit: JPY million

YoYGrowth Rate

EBITDAMargin

* “New Services” includes “entrepedia” and “FORCAS”

651EBITDA

SPEEDANew Services

855

(-204)

493

(-33)260

15.8%12.2%

16.4%

03

17

Highlights

* Financial figures related to NewsPicks presented in the following pages do not include Quartz.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Number of Paid Subscribers Increasing Steadily 95,268

18

NewsPicks Highlights (1) Number of Subscribers

(users)

* The number of paid subscribers is a total of premium users for iOS (JPY 1,400/month), premium users for other platforms (JPY 1,500/month), users with student discounts (JPY 500/month), and NewsPicks Academia members(JPY 5,000/month).

Paid Subscription and Advertising Revenue Both Significantly Increased

NewsPicks Highlights (2) Net Sales

Paid Subscription RevenueAdvertising Revenue

+78%

19

Other Revenue

* “Other Revenue” is primarily derived from the external sale of content and from events.

FY2017 FY2018FY2016

1,661

2,962

938

+77％YoY

+78％YoY

Unit: JPY million

YoYGrowth Rate

20

FY2017 FY2018FY2016

EBITDA

Two-Fold Increase in EBITDA

+125%303

134

22

NewsPicks Highlights (3) EBITDA

Unit: JPY million

YoYGrowth Rate

EBITDA Margin8.1%

10.2%

2.3%

Highlights

04

21

22

Quartz Highlights (1)

US Media Market:A Story of Winners and Losers

Many new-media players are facing challenges.Industry has shed over 2,200 jobs already this year.

“More than 2,200 people lost their jobs in a media landslide so far this year” (Business Insider, Retrieved 1 Feb 2019)

“What 2,000 job cuts tell us: the free market kills digital journalism” (The Guardian, Retrieved 2 Feb 2019)

“Vice, BuzzFeed and the Reckoning for New-Media Companies” (The Wall Street Journal, Retrieved 1 Feb 2019)

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

23

Quartz Highlights (2) Net Sales

* Full-year financial results for FY2017 and FY2018 are unaudited. * Financial results for the 5-month period from August to December 2018 are audited.* Full-year financial results for FY2017 and FY2018 are converted to Japanese Yen (JPY) using the average USD-JPY exchange rate over

the period of August to December 2018 of USD 1 = JPY 112.34.* Until July 2018, Quartz’s head office/corporate functions were handled by its former parent company Atlantic Media. Since August

2018, Quartz has availed of these functions under a paid transition service agreement, and will continue to do so until it implements its own internal functions. These expenses are discontinuous, therefore, the EBITDA comparison is not disclosed.

USD 27.56 mln

USD 34.80 mln

FY2017 FY2018

3,096 JPY mln

+26％YoY

Amidst These Tough Market Conditions, Quartz’s Business Is Growing Steadily

3,909 JPY mln

24

Quartz Highlights (3)

1Q FY2018

USD 5.46 mln

USD 16.98 mln

USD 6.4 mln USD 5.93 mlnJPY 666 mln

Pre-Acquisition

USD 4,532mln

JPY 509 mln

Large Seasonal FluctuationsNearly 50% of Revenue Is Concentrated in 4Q

Post-Acquisition

Pre-Acquisition

Unit JPY million

2Q FY2018 3Q FY2018 4Q FY2018

* Financial results for 2017, as well as up to July 2018 are unaudited. * Post-acquisition financial results for the 5-month period from August to December 2018 are audited.* Full-year financial results for FY2017 and FY2018 are converted to Japanese Yen (JPY) using the average USD-JPY exchange rate over

the period of August to December 2018 of USD 1 = JPY 112.34.* Financial results related to Quartz are accounted for in FY2018 results for the 5-month period from August to December 2018

JPY 613 mln JPY 723 mln

JPY 1,908 mln

25

Quartz Highlights (4)

Community Paid Subscription

Accelerate Growth by Investing in “Community” and “Paid Subscription”

26

Quartz Highlights (5)

New BusinessExisting Business

AdvertisingSolutions

Become Profitable

Paid Subscription

Investment Phase (Deficit)

Increasing Investment in New Businesses,While Making Existing Business Profitable

FY2019 Financial Targets

05

27

FY2019 Financial Targets (1) Net Sales Targets

28

FY2018 FY2019 (Target)

FY2017

4,568

9,329

13,500 (+45% YoY)

FY2016FY2015

3,0821,915

Target

Maintain a High Growth Rate

Unit: JPY million

Net Sales

29

Target

FY2018 FY2019(Target)

FY2017FY2016FY2015

(-298)

284

592

1,187

(-500)

2019 – A Year for Laying the Groundwork.Ensuring Mid-to-Long-Term Growth Through

Accelerated InvestmentEBITDA

Unit: JPY million

FY2019 Financial Targets (2) EBITDA Targets

1,187

30

FY2018Consolidated

EBITDA

FY2019 Existing Business EBITDA

Target

Domestic New Business

Investment

Quartz New Business

Investment

FY2019EBITDA Target

1,732

(-240)

(-2,000)

(-500)

+47％YoY

Steadily Grow Profit in Existing Businesses. Planned Deficit in New Businesses Due to

Increased Investment.Unit: JPY million

FY2019 Financial Targets (3) EBITDA Targets

31

01

02

03

Continue expanding revenue and improving profit margins in existing businesses: SPEEDA and NewsPicks.

Make the existing Quartz business (advertising solutions) profitable while also increasing investment in the new Quartz business (paid subscription)

Aim for a 30% profit margin for both SPEEDAand NewsPicks by FY2020–21 and achieve a positive EBITDA margin for Quartz by FY2021.

FY2019 Financial Targets (4) Target Outline

32FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

(target)

3 5 7 11 19 31

46

93

135

-20-10

0102030405060708090

100110120130140

8.8%

2.5%

(-14.3%)(-32.8%)

(-15.6%)

9.2%13.0% 12.7%

(-3.7%)

-20-10

0102030405060708090

100110120130140

The Groundwork We Laid in FY2014 Resulted in Rapid Growth.

Groundwork Will Once Again Be Our Focus in FY2019.

Revenue

EBITDA Margin

Unit: JPY million

FY2019 Financial Targets (5) Revenue and EBITDA Margin

289458 718 1,123 1,915

3,0824,568

9,340

13,500

APPENDIX

06

33

APPENDIX (1)

（Unit: JPY million） FY2016 FY2017 FY2018Net Sales 3,081 4,565 9,340SPEEDA Business 2,143 2,904 3,963NewsPicks Business 938 1,661 5,376Net Sales Growth Rate 60.8％ 48.2％ 104.6%EBITDA 284 595 1,187EBITDA Margin 9.2% 13.0% 12.7%Operating Profit 250 545 830Operating Profit Margin 8.1% 12.0% 8.9%Ordinary Profit 225 518 533Ordinary Profit Margin 7.3% 11.4% 5.7%Net Profit Attributable to Uzabase 267 438 610Net Profit Margin Attributable to

Uzabase 8.7% 9.6% 6.5%

SPEEDA Number of IDs (as of 31 Dec) 1,572 2,049 2,571NewsPicks Paid Subscribers (users) 31,987 56,135 95,268

34

Consolidated P&L (Actual)

APPENDIX (2)

35

（Unit: JPY million) SPEEDA NewsPicks Total (*1) Adjustment Consolidated

Revenue 3,963 5,397 9,361 △21 9,340

Revenue from Sales toExternal Customers 3,963 5,376 9,340 － 9,340Revenue from Sales and Transfers Between Segments

－ 21 21 △21 －

Segment Profit 565 264 830 △0 830

Profit Margin 14.3% 4.9% 8.9% － 8.9%

Depreciation 85 271 357 － 357

EBITDA 651 536 1,187 － 1,187

EBITDA Margin 16.4% 9.9% 12.7% － 12.7%

（*２）

Note (*1): The data for SPEEDA includes “entrepedia” and “FORCAS”, and the data for NewsPicks includes “Quartz”Note (*2): Depreciation includes amortisation of goodwill

Segment Information (FY2018)

APPENDIX (3) Consolidated Balance Sheet

(Unit: JPY million) End-2017 End-2018 YoY ChangeCurrent Assets 3,732 8,619 +4,887

Cash and Deposits 3,217 5,725 +2,508Fixed Assets 676 10,194 +9,518Total Assets 4,408 18,814 +14,406

Current Liabilities 1,532 3,566 +2,034Noncurrent Liabilities 1,056 8,931 +7,875Total Liabilities 2,589 12,497 +9,908(Interest-Bearing Debts) 1,257 9,472 +8,215

Capital 1,328 2,731 +1,403Capital Surplus 191 1,683 +1,492Retained Earnings 286 897 +611Total Net Assets 1,819 6,316 +4,497

36

3737

Business Intelligence to Change Your World

For more detailed information on financial results, please refer to the “FY2018 Consolidated Financial Results” report.

38©Uzabase, Inc. All Rights Reserved.

DisclaimerThe information disclosed in this material and projections for futureperformance are based on the data and information available at thetime when this material was composed, and may contain uncertainties.Please be aware that the actual future performance and results mayvary greatly from the projections due to various factors.

13 February 2019