Cyberagent Incorporated · TSE:4751
Cyberagent — Q3 FY2005 Earnings Presentation
37 slides from Cyberagent's earnings presentation, Aug 12, 2005
Slide 1: Results Briefing for the Third Quarter of the Year Ending September 30, 2005
Results Briefing for the Third Quarter of the Year Ending September 30, 2005 August 12, 2005 CYBER AGENT, LTD. http://www.cyberagent.co.jp/ The opinions and forecasts contained within this document are the decisions of Cyber Agent Ltd. at the time the document was prepared and do not guarantee the a
Slide 2: Table of Contents
Table of Contents zOverview of Third Quarter Consolidated Financial Results zCAJJ Program zBusiness Model zMedia Business zAdvertising Agency Business zPriority Businesses zMedium- to Long-Term Outlook Reference Materials Company Overview New Organizational Chart 2
Slide 3: Overview of Third Quarter Consolidated Financial Results
Overview of Third Quarter Consolidated Financial Results April – June 2005 3
Slide 4: Highlights From Third Quarter of Year Ending September 2005
Highlights From Third Quarter of Year Ending September 2005 Achieve record sale of 11,360 million yen 12.3 increase from second quarter Achieve operating income of 628 million yen 24.1 increase from second quarter Commence the investment development business Share the cost of discontinued business F
Slide 5: Consolidated Financial Results Summary for Q3: Profit and Loss Statement
Consolidated Financial Results Summary for Q3, Year to Sept. 2005: Profit and Loss Statement Apr – June 2005 Jan – Mar 2005 Change Apr – June 2004 Change Net sales (¥million) 11,360 10,118 12.3% 7,103 59.9% Gross income from sales (¥million) 4,718 4,201 12.3% 3,030 55.7% Gross margin (%) 41.5 41.5 -
Slide 6: Net Sales, Operating Income and Gross Margin Rate
Net Sales, Operating Income and Gross Margin Rate Consolidated net sales increased 12.3% quarter on quarter Units : ¥million Units % 12,000 60 11,360 11,000 10,118 10,000 43.1 41.8 42.7 44.1 43.4 50 41.4 41.2 39.6 43.4 42.7 41.7 41.3 41.5 41.5 9,000 38.8 39.2 35.9 40 8,000 7,873 7,103 8,582 7,000 6,
Slide 7: Results by Business (Net Sales)
Results by Business (Net Sales) Media Business Advertising Agency Business Units: ¥million CA Network Units: ¥million Headquarters 7,628 8,000 5,500 5,001 543 7,000 5,000 4,783 6,730 Investment Development Business 4,500 6,000 4,002 5,642 4,000 5,238 3,579 5,000 4,713 3,500 3,220 4,300 3,000 2,916 4
Slide 8: SG&A and Operating Expenses
Units: ¥million 4,500 60.0% 4,090 4,000 3,695 3,500 3,292 50.0% 3,000 2,875 2,558 2,026 2,500 2,266 40.0% 2,000 1,834 1,656 1,707 1,662 1,500 1,264 1,318 30.0% 1,000 500 0 20.0% 8
Slide 9: Number of Employees in Consolidated Companies
Number of Employees in Consolidated Companies Compared to March 31, 2004, the number of employees increased by 131; 80 in the Media Business, 48 in the Advertising Agency Business Units: people 1,171 1,200 1,040 1,000 900 799 800 734 609 600 548 484 495 414 400 391 356 360 200 As the diagram to the
Slide 10: Consolidated Financial Results Summary for Q3: Balance Sheet
Consolidated Financial Results Summary for Q3, Year to Sept. 2005: Balance Sheet Units: ¥million June 30, 2005 March 31, 2005 Change June 30, 2004 Change Current assets 20,331 20,805 -2.3% 16,582 22.6% (Cash + marketable securities, etc.) 11,354 13,725 -17.3 12,122 -6.3 Fixed assets 9,266 7,553 22.7
Slide 11: Consolidated Financial Results Summary for Q3: Cash Flows
Consolidated Financial Results Summary for Q3, Year to Sept. 2005: Cash Flows Units: ¥million Apr – June 2005 Jan – Mar 2005 Apr – June 2004 CF from operating activities 261 114 394 CF from investing activities -1,730 772 -508 CF from financing activities -160 -23 70 Change in cash and cash equivale
Slide 12: About the CAJJ Program
About the CAJJ Program Note : Above posters are posted in the company only 12
Slide 13: New Business Start-up Program: CAJJ Program
New Business Start-up Program: CAJJ Program CYBER AGENT Jigyo&Jinzai Ikusei Program J2 Promotion Standard (Period: 3 – 6 months) J1 Promotion Standard (Period: 6 – 12 months) Gross profit of 5 million yen /month Average quarterly gross profit of 15 million yen / month Lower limit on losses: 30 milli
Slide 14: CAJJ Program
CAJJ Program As of March 31, 2005 As of July 31, 2005 CAJJ Division Name or Affiliate Name CAJJ Name of Business or Affiliated Company CA Mobile, Ltd. CA Mobile, Ltd. netprice, ltd. netprice, ltd. Internet Advertising Headquarters Internet Advertising Headquarters axiv.com Inc. axiv.com Inc. CA Sear
Slide 15: Business Model
tp_ Business Model i CyberAgent
Slide 16: Business Model
Business Model Advertising Agencies Reps Media Dentsu, CCI Hakuhodo, Clients and advertisers etc. Users and consumers DAC Opt Septeni, etc. etc. Cyber Agent Group Media etc. 16
Slide 17: Media Business
tp_ Media Business Ameba by CyberAgent
Slide 18: Media Business: Advertising Sales
Media Business: Advertising Sales 37.0% year-to-year comparison, decreased 10.1% quarter-on-quarter to 2,843 million yen Units: ¥million 3,163 3,000 2,843 660 2,453 616 2,229 356 2,011 2,075 475 1,901 200 2,000 597 1,674 512 252 621 475 1,382 1,054 359 79 105 141 1,074 202 35 42 832 30 736 764 772 1
Slide 19: Media Business: EC (E-Commerce) Sales
Media Business: EC (E-Commerce) Sales EC sales increased 19.3% quarter on quarter to 4,242 million yen Favorable existing businesses and acquisition of MC PLUS Co., Ltd, which operates mobile commerce site, contributed to sales Commission and billing sales increased 26.3% compared to second quarter
Slide 20: Advertising-related sales and EC sales
Advertising-related sales Advertising-related sales dropped due to a decrease in own medium sale rate on advertising agency business, and a partial disposal of research business WEB advertisings, mostly blog media and comparison sites, are continuously performing well EC sales Netprice centrally, sa
Slide 21: Media Business: Future Strategies
Media Business: Future Strategies “Ameba by CyberAgent” brand building Focus on development of blog media Integrate businesses, and newly set up Ameba Headquarters on July 2005 Continued aggressive development and distribution of mobile media in conjunction with mobile flat-rate and 3G progress Acti
Slide 22: Advertising Agency Business
Advertising Agency Business 22
Slide 23: Advertising Agency Business: Internet Advertising HQ Sales
Advertising Agency Business: Internet Advertising HQ Sales Sales of Advertising Headquarters increased 3.8% compared to second quarter Rapid growth of site listing advertisement caused Cyber Agent/Partner Media rate decrease 5,000 4,730 4,556 Units: ¥million 4,000 34 3,806 35 3,414 3,083 3,000 2,815
Slide 24: Number of Clients and Net Sales
Number of Clients and Due to the expansion of Site Listing Advertisements, number of new transactors increased Billing of each transactor is broadly flat Units: No. of companies 1,200 1,100 Top 5 clients in line of business by sales rate 1,000 Finance, Insurance, Securities 900 1 (including consumer
Slide 25: Quarterly Productivity per Sales Employee
Quarterly Productivity per Sales Employee Temporary lapse due to taking in 36 new employees in the year 2005 April Units: people Units: ¥million 60 145 160 50 140 120 40 44.4 42.2 98 40.5 38.7 37.1 37.9 100 37.7 108 30 34.3 76 32.6 66 30.2 29.5 90 94 80 59 27.4 20 53 46 46 69 75 31.5 60 10 40 0 20 -
Slide 26: Summary of the Advertising Business for the Third Quarter
Summary of the Advertising Business for the Third Quarter Decrease in gross profit rate due to rapid growth of paid search advertisements Sales staff increased by 37 people in April through new graduates recruiting (up 34.3% from second quarter) Adopt the Specific Product Sales Team Blog Ads Group (
Slide 27: Advertising Business: Future Strategies
Advertising Business: Future Strategies Aiming for mid- to long-term growth to gain 20% market share Increase sales in Cyber Agent and partner media by improving the rate of revenue growth Adopt the new specific product sales team Animated Ads Group (from August) 27
Slide 28: Priority Businesses
Ea Priority Businesses & CyberAgent
Slide 29: Ameba Headquarters
Ameba Headquarters Familiarize the brand “Ameba by CyberAgent”, and use blog media as a platform to focus on developing integration site Blog Division Start Page Division Organizational Change Contents Division Reference 1 Number of accumulated Ameba blog set-up transitions Reference 2 Projection on
Slide 30: Ameba Headquarters: Building an Integration Site Using Blog Media
Ameba Headquarters Building an Integration Site Using Blog Media as a Platform EC Auction Publication Blog Contents Fee Advertisement Paid Search Diversify profits by To the scale of Build up No.1 blog business model Establish the media with brand assets of service on with a central blog media month
Slide 31: Finance Headquarters
Finance Headquarters Commence Investment Development Business taking advantage of our abilities at discovery and development of Internet Business FundBrief Fund BriefOverview Overview Create the Finance Headquarters in July, 2005 Name CA - Investment business limited partnership Active investment fr
Slide 32: Medium- to Long-Term Outlook
Medium- to Long-Term Outlook 32
Slide 33: Targeting Net Sales of 100 Billion Yen
Targeting Net Sales of 100 Billion Yen Units: ¥million Growth in mobile advertising & e-commerce Development of broadband for mobile devices Growth in PC advertising and e-commerce Development of broadband for PCs 20,000 1,726 2,300 -106 -278 -142 -2 -34 -1,636 Yr to Sep 98 Yr to Sep 99 Yr to Sep 00
Slide 34: Familiarizing the Brand Ameba by CyberAgent
Looking to Sales of 100 Billion Yen in the Year Ending September 2008 Familiarizing the Brand “Ameba by CyberAgent” Strengthening of the organization 34
Slide 35: Growing Into a Company Representative of the 21st Century
Growing Into a Company Representative of the 21st Century 35
Slide 36: Reference Materials
Ea Reference Materials a: CyberAgent
Slide 37: Company Overview
Company Overview Company Name: CYBER AGENT, LTD. (securities code: 4751) Head Office: Shibuya Mark City West 21F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo Osaka office: Meiji Yasuda Life Osaka Umeda Bldg. 14F, 3-3-20 Umeda, Kita-ku, Osaka Nagoya office: Nishiki Park Bldg. 12F, 2-4-3 Nishiki, Naka-ku, Nag