Uzabase : Disclosure Materials on Business Plan and Growth Potential

About This Document

• Change in Profitability Metric

In consideration of the goals outlined below, we plan to incorporate a stock compensation plan into our remuneration system starting from 2022:

１．To increase the number of employees able to view the business from the perspectives of entrepreneurs, business managers, and stockholders, as well as to increase enterprise value in the medium-to-long term.

２．To attract the best possible talent by offering benefits and remuneration levels that are competitive both in Japan and globally.

EBITDA has always been the Uzabase Group’s key profitability metric, as we believe that excluding the impact of non-cash charges is the most optimal way to assess our performance. In line with this policy, from 2022 onwards, the Group will continue to disclose the same profitability metric but with additional adjustments to exclude the impact of stock compensations, which also fall under the category of non-cash charges. This Adjusted EBITDA will serve as our profitability metric in 2022 and beyond, with the calculation method applied as described below:

Adjusted EBITDA＝Operating Profit + Depreciation + Amortization + Stock Compensations

All EBITDA figures for FY12/2022 and beyond presented in this document are Adjusted EBITDA figures.

• Clarification on Earnings Figures

Although the Uzabase Group has withdrawn from the Quartz business in the US (Nov 2020), the consolidated figures presented in this material include Quartz’s earnings.

Change in Reportable Segments

• Starting from 2022, Uzabase will be reporting earnings in two segments: SaaS and NewsPicks

Up until now, we have been separating SPEEDA and Other B2B services in our filings, but starting from FY12/2022, these will be combined into a single segment named “SaaS”. Additionally, the new SaaS segment will include the earnings of AlphaDrive and AlphaDrive Kochi (consolidated subsidiaries of NewsPicks), as well as NewsPicks’ enterprise-focused services (“NewsPicks Enterprise” and “NewsPicks Learning (Enterprise)”), which used to be disclosed as part of NewsPicks in FY12/2021.

In this document, these are referred to collectively as AlphaDrive/NewsPicks (AD/NP).

1. In order to manage the businesses in a unified manner and boost cross-selling, as both SPEEDA and Other B2B services are SaaS businesses leveraging shared core assets.
2. AD/NP is an enterprise-focused SaaS solution built on the NewsPicks platform.
3. AD/NP, SPEEDA, FORCAS, and INITIAL all leverage the NewsPicks platform. As such, reporting AD/NP under the NewsPicks business does not properly reflect the actual state of the business.

Uzabase Group: Key Facts

1. All monetary amounts are truncated figures. Share of Revenue from Subscriptions and Growth Rate are rounded to the nearest whole (same applies for all slides that follow).
2. Total Employees includes both full-time and contract-based employees.
3. Share of Subscription Revenue refers to the share of recurring revenue in the total consolidated revenue of the Group.
4. ARR (Annual Recurring Revenue) refers to the total amount of recurring revenue generated over a year, calculated as MRR (Monthly Recurring Revenue) multiplied by 12.