Itmedia Inc. · TSE:2148
Itmedia — FY2023 Earnings Presentation
82 slides from Itmedia's earnings presentation, May 1, 2024
Slide 1: Earnings Briefing, Fiscal Year Ended March 31, 2024
Slide 2: Disclaimer
ime This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail. Forward-looking statements, such as earnings outlooks, are based on information available when
Slide 3: Agenda
ITmedia ne 1. Business Status FY23 Earnings Overview BtoB Media Business BtoC Media Business 2. Medium-Term Targets Vision Recognition of Current Situation and Progress Medium-Term Targets and Policies (1) BtoB Media (2) Hacchu Navi (3) BtoC Media 3. Earnings and Dividend Forecasts
Slide 4: 1. Business Status: FY23 Earnings Overview
re’ ITmedia ne 1. Business Status FY23 Earnings Overview
Slide 5: FY23 Earnings Overview | Executive Summary
re’ ‘Tmecdae. FY23 Earnings Overview | Executive Summary Decreased revenue and profit. Improving since Q4. Forecast increased revenue and profit for next fiscal year. Earnings External Environment & Overview Decreased revenue and profit Despite the same market environmentcontinuing, conditions have
Slide 6: FY23 Earnings Overview | Earnings
Toc Earnings Overview | Earnings ig income Cumulative period Unit: million yen 8,752 BtoB Media Business 6,610 27.8% Operating margin BtoC Media Business 1,591 1391 324 Fy22 FY23 FY22 Fy23 ©2024 ITmedia Inc. All Rights Reserved.
Slide 7: Operating income and revenue by segment
2,929 2,930 1,857 1,600 2,374 2,079 1,591 1,391 FY22 FY23
Slide 8: Market conditions surrounding the Company
FY23 Earnings Overview| ‘Tmecdae. Market conditions surrounding the Company U.S. technology market growth slowdown Return-to Bearish programmatic in-person activity ad market
Slide 9: Recognition of Current Situation: BtoB Media Business
if Earnings Overview | Recognition of Current Situation: BtoB Media Business Impact of market conditions surrounding the Company continued Japan Foreign = customers ©2024 ITmedia Inc. All Rights Reserved. Customers in = acti it ' = Digital Events decreased = Lead Generation , remained flat By edecrn
Slide 10: Revenue by Revenue Model
i Earnings Overview| Revenue by Revenue Model rm ‘Tmecdae. Digital Events shifted to positive in Q4 Accounting period 5% -10% -15% -20% -25% Qu Q2 Q3 Q4 Tmedia Inc. All Rights Rese 10
Slide 11: Impact of the U.S. Technology Market on the Company
i Earnings Overview | Impact of the U.S. Technology Market on the Company rm ‘Tmecdae. Domestic customers. The Company's Revenue 9 50% composition igs. Growth slowdown in technology companies as pandemic ends Cost cutbacks globally amid concerns over U.S. economy COVID-19 pandemic Pandemic ends Toda
Slide 12: Customer Trends and Relationship with AI
FY23 Earnings Overview | Customer Trends and Relationship with Al day Lift off of generative Al technology Society and companies © Alas a support tool for raising productivity (Co-pilot) © Exploring utilization and wait-and-see approach “Technology development” competition phase @ Market upheaval ex
Slide 13: Analysis by Factor
i Earnings Overview | Analysis by Factor Impacts of foreign customers will continue mainly in Ads Expecting improved performance in Digital Events and Programmatic Ads FY23 Main factors of revenue decrease U.S. technology market Digital Event market Programmatic Ad market ©2024 ITmedia Inc. All Righ
Slide 14: Operating Income - Variance Analysis
re’ FY23 Earnings Overview| Operating Income - Variance Analysis ‘Tmecdae. Total cost decreased Cumulative period Unit: million yen BtoB Media Business -551 -8% BtoC MediaBusiness -]199 Outsourcing expenses -139 2,930 -13% Others -23 Revenue decrease Cost decrease FY22 FY23 ed 14
Slide 15: Consolidated Statement of Income
i Earnings Overview | Consolidated Statement of Income ©202 4 re’ ‘Tmacdiaine. f- ‘\ FY22 FY23 Cumulative period 9 9 Unit: million yen Amount s%0 ot Amount s%oot Increase % change Revenue 8,752 100.0% 8,001 100.0% (751) (8.6)% Total cost 5,822 66.5% 5,773 72.2% (48) (0.8)% (of which are personnel ex
Slide 16: Consolidated Statement of Cash Flows
i Earnings Overview | Consolidated Statement of Cash Flows Cumulative period Unit: million yen FY22 FY23 Change fem operating activities 1,876 1,374 (501) fem investing activities (53) (164) (111) fem finoncing activities (660) (1,246) (586) cquvelents 1,162 (36) | (2,199) stbeginning ofthe period 6
Slide 17: Consolidated Statement of Financial Position
i Earnings Overview | Consolidated Statement of Financial Position At the end of At the end of Unit: million yen March 2023 March 2024 Change Current assets 9,996 10,108 +111 > 2 Non-current assets 1,161 1,269 +108 a Total assets 11,158 11,378 +219 = Current liabilities 1,668 1,494 (174) 3 = -Non-cu
Slide 18: Revenue (Quarterly)
i Earnings Overview | Revenue (Quarterly) rm’ Unit: million yen 8,752 8,092 8,001 6,891 2,335, 2,376 2,231 5,278 aes a4 ¥2,231 million « Q3 Decreased revenue YoY change 2 -¥103 million a (-4%) FY19 FY20 FY21 FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved 18
Slide 19: Operating Income (Quarterly)
i Earnings Overview | Operating Income (Quarterly) rm” Unit: million yen 2,930 Decreased profit 2,687 758 701 2,228 — # « ¥664 million 533 1,172 o YoY change @ -¥94 million ° (-12%) Ql FY19 FY20 FY21 FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved 19
Slide 20: Revenue and Operating Income by Quarter
i Earnings Overview | Revenue and Operating Income by Quarter rm Improved in Q4 Revenue Operating income Accounting period 2,376 Unit: million yen 2,335, YoY 4% FY22 FY22 FY21 FY23 FY21 FY23 FY20 FY20 297 FY19 rv19 192 1,129 Ql Q2 Q3 Q4 Qi Q2 Q3 Q4 ©2024 ITmedia Inc. All Rights Reserved 20
Slide 21: Quarterly trend chart
305 274 263 297 272 234 211 243 248 235 233 445 178 472 435 398 404 405 402 389 370 345 360 340 923 830 868 730 761 756 777 769 777 658 689 687 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 FY23Q1 FY23Q2 FY23Q3 FY23Q4
Slide 22: Employee Breakdown by Quarter
FY23 Earnings Overview | Employee Breakdown by Quarter rm 417 425 416 419 419 39) 401 408 370 373 | | | > Q4 YoY change Unit: employees percent total 354 361 | ig) 337 340 BHaaoa”™ 319 325 Ee | Total +2 100% 35 Bo | 18 a « 158 154] Administrative and other +1 9.3% 146 @ Technical +1 4.5% 131 ® Sales
Slide 23: Annual trend chart FY14-FY23
2,264 2,026 1,869 1,669 1,462 1,307 1,334 1,339 1,221 1,138 809 698 634 561 495 365 400 336 225 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 24: 1. Business Status: BtoB Media Business
re’ ITmedia ne 1. Business Status BtoB Media Business
Slide 25: BtoB Media Business Earnings
FY23 Earnings Overview | BtoB Media Business Earnings BtoB Media Business an Cumulative period Unit: million yen 7,161 -~-~9 28.89 Operating margin FY22 FY23 FY22 FY23 Tmedia Inc. All Rights Reserved 25
Slide 26: BtoB Media Business revenue by model
BtoB Media Business 2,929 2,930 1,857 1,600 2,374 2,079 FY22 FY23
Slide 27: Digital Event Revenue
i Earnings Overview | Digital Event Revenue Cumulative period Unit: million yen 1,857 Sponsored 1,046 Commissioned 554 FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved BtoB ia Business re’ rma te. Established market from the pandemic, but special demand subsides. The impact ended in Q4 2024.1.30 (41
Slide 28: Revenue trend chart
FY22 FY23 2,066 1,799 1,838 1,612 1,472 1,346 1,182 1,065
Slide 29: Media Expansion in AI Domain
FY23 Earnings Overview | Media Expansion in Al Domain BtoB Media Business re . Launched “ITmedia Al+”, iTmedia f\ | + an informative website dedicated to Al W Features cases of companies utilizing generative Al, supporting Al utilization in business Multifaceted postings from Al-related articles to
Slide 30: 1. Business Status: BtoC Media Business
re’ ITmedia ne 1. Business Status BtoC Media Business
Slide 31: BtoC Media Business Earnings
i Earnings Overview | BtoC Media Business Earnings Revenue Cumulative period Unit: million yen 608 38.2% Cf BtoC Media Business rs ‘Toda. Operating income YoY -284 mittion (-47%) Operating margin 23.3% 1,591 wan? -199mittion (-13%) FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved FY22 FY23 31
Slide 32: Netolabo—Revenue and PVs
FY23 Earnings Overview | Netolabo—Revenue and PVs BtoC Media Business re 350 FY23 Reasons for decrease 00 Revenue per 1,000 PVs (yen) 250 200 150 COVID-19 pandemi . No <__{ouo-1bpandemic » improvement Focused on establishing hange in operating policy in market unit i uni a brand and expanding PV: (i
Slide 33: Netolabo GirlSide Exceeds 100 mil. PVs
i Earnings Overview | Netolabo GirlSide Exceeds 100 mil. PVs aN 100 ' ' onne ee million ' PVs H exceeded ' ' ' ' million PVs @ Jun. 2021 exceeded H ' ' ' 1 20 Jun.2020 e million PVs ' exceeded ' ' ' ' ' million PVs @ Feb. 2019 exceeded ' ' ' Established in Aug. 2018 @ ©2024 ITmedia Inc. All Rights R
Slide 34: "X40" Medium-Term Targets and Growth Strategies
Slide 35: Approach to medium-term targets
re’ ITmedia ne The Internet and technology domains are attractive markets with great growth potential. On the other hand, they are also markets that face major and unpredictable changes in the future. For this reason, we have not formulated or announced a medium-term management plan for our business
Slide 36: Disclaimer
re’ ITmedia ne This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail. Forward-looking statements, such as earnings outlooks, are based on information ava
Slide 37: 2. Medium-Term Targets: Vision
re’ ITmedia ne 2. Medium-Term Targets Vision
Slide 38: Our Mission
ITmedia 7 Our Mission Contribute to Information Revolution by Innovating Professional Media * We believe profession makes media reliability * Technology leads conventional media to innovation + Providing media community as a social knowledge platform
Slide 39: Our Contributions to Society
| Targets | Our Contributions to Society rm ITmedia ino. Innovate professional media & Contribute through o information a Development of a sustainable society ©2024 ITmedia Inc. All Rights Reserved 39
Slide 40: Media Innovation
| Targets | Media Innovation re’ Evolution of technology Ci Ke) a > Sp, > o Computers Internet Mobile Smart devices Video Al Analog era methodology Offline media Online media Data x Al Online advertising Offline advertising Going smart Seminar Lead Generation Exhibitions Digital Events Development o
Slide 41: Technological Development and Our Growth
: Medium-Term Targets| Technological Development and Our Growth Berrie Nex & fa BS : ; — s re 7. is Wearable; a \ we | \ GY Metaverse | bie il > Digital shiftof A \ di sal : society and industries wy YS ei fe Robotics A ~ XRG ye a 4 se \ Ld’es (eDigital twin | | 4 / —-_ ay ’ tegbnaleey” ; Quantum |)
Slide 42: Our Fundamental Platform
| Targets | Our Fundamental Platform rm ‘Tmecdae. Fundamental platform: provision of excellent information and content = ITmedia Inc. Readers and members Our company One of the largest ; . Technol r Technology sellers technology information echnology buyers specialists in Japan N77 Business: provisi
Slide 43: Our Fundamental Platform
re’ | Targets | Our Fundamental Platform dad One of the largest holders of data in Japan that brings technology “buyers” and “sellers” together Companies providing technology In-house DX staff / IT buyers Potential Customers Member readers custome 2,300 ok if a 1.3 million people Websites run by 7 i
Slide 44: 2. Medium-Term Targets: Recognition of Current Situation and Progress
re’ ITmedia ne 2. Medium-Term Targets Recognition of Current Situation and Progress 44
Slide 45: One of Japan's Largest Digital Media Content Providers
F esunvten Targets | One of Japan’s Largest Digital Media Content Provider rm Mrmediaie Customer/user scale Number of potential (Sellers) (Buyers) iv customers Number of customers =] Profile members Number of readers 7,000 2,300 1.3 25 million people companies companies million people 50 million UB
Slide 46: Changes in Revenue and Operating Income
| in Revenue and Operating Income rm 8,752 >) Revenue =O= Operating income Unit: million yen 8,001 3,430 2,686 2,864 2,898 2,890 FyO7 FYO8 FYO9 FY1O FY11l FY12 FY13 FY14 FYIS FY16 FY17 FYI8 FY19 FY20 FY21 FY22~ FY23 IFRS ©2024 ITmedia Inc. All Rights Reserved.
Slide 47: FY18 vs FY23 comparison
80 22 15 47 79 9 8 33 98 53 29 34 FY18 FY23 FY18 FY23
Slide 48: Expand Revenue Model Only Possible with the Digital
Medium-Term Targets | Expand Revenue model only possible with the digital BtoB Media Business (fe Be Revenue model aC) re’ ‘Tmacdiaine. 1 i ' i ' ' i ' Lead Generation revenue Digital Event revenue Ad revenue H Programmatic Ad revenue ' ' i ' . Commissioned Sponsored ! Revenue format + Provide sales
Slide 49: Revenue Model Expansion and Growth
re’ Medium-Term Targets | Revenue Model Expansion and Growth ‘Tmecdae. Expand business domains through new business development only possible with the Internet ad Fon Generation id PRA sank ceo = ED Gok eee Srrreview Fa Japan Expand industrial technology field silme, EDN Ese Digital Event revenue FR
Slide 50: 2. Medium-Term Targets: Medium-Term Targets and Policies
re’ ITmedia ne 2. Medium-Term Targets Medium-Term Targets and Policies
Slide 51: X40 target chart FY19-FY29
129 87 86 80 80 68 52 26 29 40 20 22 23 11 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 52: Measures to Promote Management With an Awareness of Cost of Capital and Share Price
re’ Medium-Term Targets | Measures to Promote Management With an Awareness of Cost of Capital and Share Price ‘Tmacdiaine. Optimizing cost of capital by utilizing funds for business growth and improving capital efficiency Financial strategy Growth strategy IR & sustainability Optimization of Capital
Slide 53: Capital allocation policy
Growth investment as a top 15 priority Medium- to long- 79 term dividend increase and stock price formation 98 Capital Financial efficiency soundness 34
Slide 54: M&A Execution
| Targets | M&A Execution rm ‘Tmacdiaine. Y Positioning M&A as one of the top priorities among growth investments Y Realizing M&A that increases the likelihood of achieving “X40” (— 3 Upgrade existing Expand product = products and domains in digital o expand data marketing Domains to explore for M&A
Slide 55: Dividend payout ratio and ROE trend
149.4% 27 124.2% 22 19 19 18 15 15 12 30.4% 28.1% 25.3% 25.3% 7 5 3 4 2 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 56: Business Segments
Medium-Term Targets | Business Segments rm ‘Tmecdae. BtoB Media Business BtoB Media Business (2) Hacchu Navi 3) BtoC Media (1) BtoB Media (Operated by: ITmedia Inc.) (Operated by: Hacchu Navi Inc.) (Operated by: ITmedia Inc.) 2 ITmedia : 2 " : aH = west = EEMONOisi vtec 27 get . ES Operates a large
Slide 57: Engage with Growth Vectors
Medium-Term Targets | Engage with Growth Vectors rm ‘Tmecdae. Previously Expansion on both buy-side and sell-side he) Manufacturing and Innovation of society IT Electronics Cloud and SaaS Industry DX Increasingly sophisticated and diverse solutions - Campaign Central Concept 22 Innovation of marketi
Slide 58: Main Policy and Focal Points
| Targets | Main Policy and Focal Points rm ‘Tmecdae. Development of media and products that respond to the major changes brought about by technology + Progress of DX in all industries changes Soelaclt reforms brought about by Al + Establishment of data-driven marketing market Societal (1) BtoB Medi
Slide 59: Targets chart FY19-FY29
25 14 15 15 14 13 3 6 11 2 4 2 9 89 1 67 64 63 61 55 41 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 60: 2. Medium-Term Targets: (1) BtoB Media
re’ ITmedia ne 2. Medium-Term Targets (1) BtoB Media
Slide 61: (1) BtoB Media: Position
re’ Medium-Term Targets | (1) BtoB Media: Position Advancements in technology DX Media Marketing Q >> lal =|) B 2 Digital shift of society fan : ; Digital shift of keti Technology market growth Digital shift of media igital snitt of marketing sjayeu pue sa8ueyp }e}81I00S @|1{T ITmedia am 7 — “Se E°M
Slide 62: Revenue models development using data
Medium-Term Targets | Revenue models development using data Ad revenue Digital Event revenue Data platform Acted data Lead Generation! Over 400 million monthly PVs revenue oe . Profile data : Targeted specialist media 130 million people Data driven revenue o IN TechTarget Tit Z ina Ke-veten Eaeers<y
Slide 63: (1) BtoB Media: Digital Specific Revenue Model
| Targets | (1) BtoB Media: Digital Specific Revenue Model rm ‘Tmecdae. Our strength is found in digital specific “customer” acquisition services Value provided to the customer Eta Lead Generation revenue Provide sales leads Provide intent data, etc. Lead Generation “Customer” acquisition service Di
Slide 64: What are "Customer" Acquisition Services?
| Targets | (1) BtoB Media: What are “Customer” Acquisition Services? dad Operation of specialized media by target audience Acquisition of large number of members (buyers) Creation of platform on data produced by content + Member registration info + Access to content = Possibility to purchase Matchi
Slide 65: BtoB customer count targets FY19-FY29
89 67 63 64 61 55 1,359 41 1,153 1,127 1,048 1,075 1,022 876 657 602 585 597 542 552 475 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 66: (1) BtoB Media: Growth Strategies and KPIs
re’ Medium-Term Targets | (1) BtoB Media: Growth Strategies and KPIs rma te. Number of Spending customers custom FY23 FY29 FY23 FY29 1,048 1,359 585 657 companies companies companies companies | ———<$_$§__§_— J £ Increased customer Data-driven product retention rate establishment New customer Upsell
Slide 67: Importance of Each Project
| Targets | (1) BtoB Media: Importance of Each Project rm ‘Tmecdae. Marketing funnel Acquisition of readers in Awareness @---5@ growth markets Market growth through ractical d of Al Contact (lead acquisition) practical spread’ o <9 Sy Pre-conversion (nurturing) “Industry DX” : _ Growing media domain
Slide 68: 2. Medium-Term Targets: (2) Hacchu Navi
re’ ITmedia ne 2. Medium-Term Targets (2) Hacchu Navi
Slide 69: (2) Hacchu Navi: Position
re’ Medium-Term Targets | (2) Hacchu Navi: Position ©2024 sjayeu pue sa8ueyp }e}81I00S uonisods ~elpaw | ‘Tmecdae. Advancements in technology Demand Resource Outsource Growing system Shortage of Increasing outsourcing development demand technology talent of system development Project Matching servic
Slide 70: (2) Hacchu Navi: Business Overview
| Targets | (2) Hacchu Navi: Business Overview rm % Operated by Hacchu Navi Inc., a BtoB Media Business subsidiary IE S\, ®, LL Qe FEE +t Cc Z Specialized for system development companies = ‘ @% Subscription-type Lead Generation services Expands the number of franchisees through freemium model Match
Slide 71: Hacchu Navi targets chart FY19-FY29
14 6 4 3 2 2 1 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 72: (2) Hacchu Navi: Growing Number of Member Companies
Medium-Term Targets | (2) Hacchu Navi: Growing Number of Member Companies rm @QHsESE Nov. 2019 2,000 companies Feb. 2018 1,000 companies Jan. 2017 ©2024 ITmedia Inc. All Rights Reserved 5,000 member companies, which corresponds to 3 0% of system Jun. 2023 4,000 companies development May 2022 compani
Slide 73: 2. Medium-Term Targets: (3) BtoC Media
re’ ITmedia ne 2. Medium-Term Targets (3) BtoC Media
Slide 74: (3) BtoC Media: Position
| Targets | (3) BtoC Media: Position = = 2 = Fy a .) 5 2. Ea = ©2024 ITmedia Inc. All Rights Reserved. Advancements in the Internet Device Media Advertising @ i) =_ Spread of Spread of Growth of Programmatic smartphones social media Ad market Huge consumer media operation with over 300 million PVs p
Slide 75: (3) BtoC Media: Characteristics
| Targets | (3) BtoC Media: Characteristics rm Development of content production Providing advertising inventory to methodology partners such as Google Skilled editorial talent x data and Al Introduction of the latest “hot” topics online Acquisition of Monnctikztitom ieceietiems Development of media
Slide 76: BtoC targets chart FY19-FY29
25 15 15 14 13 11 9 FY19 FY20 FY21 FY22 FY23 FY24 FY29
Slide 77: 3. Earnings and Dividend Forecasts
re’ ITmedia ne 3. Earnings and Dividend Forecasts
Slide 78: FY24 Consolidated Earnings Forecast
Tce and Dividend Forecasts | FY24 Consolidated Earnings Forecast FY24 : Turnaround and preparation (Unit: million yen) Revenue ME Operating income Prctanlatetie? 87 80 80 68 52 a a a a 26 20 : a 7 FY19 FY20 FY21 ©2024 ITmedia Inc. All Rights Reserved. 129 CO FY29
Slide 79: FY24 Consolidated Earnings Forecast
Tce and Dividend Forecasts | FY24 Consolidated Earnings Forecast re’ * Impacts of foreign customers will continue, but Digital Events and Programmatic Ads will turnaround * Launch a new initiative for the Mid-term Unit: million yen Revenue Operating income Net ‘Sanercotporeat to First half 4,080 980
Slide 80: Dividend trend FY12-FY28
15 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
Slide 81: Our Mission
SCP LIT HY AVR rk” ITmedia inc. Our Mission Contribute to Information Revolution by Innovating Professional Media Ty ddob,
Slide 82: Inquiries
ITmedia Inc. Inquiries ITmedia Inc. Kioicho Building 3-12, Kioicho, Chiyoda-ku, Tokyo 102-0094 Inquiries: ir@sml.itmedia.co.jp