Slide 1: 1Q FY2021 Presentation Material
@A CyberAgent. 1Q FY2021 Presentation Material October to December 2020 ( January 27, 2021 ) ENGLISH
Slide 2: Forward-looking statement
[Forward-looking statement] The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various risks and unc
Slide 3: Contents
0. Contents 1. Quarterly Results (October - December 2020) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. FY2021 7. References Governance 2
Slide 4: Quarterly Results
1. Quarterly Results Quarterly Results October - December 2020 3
Slide 5: FY2021 Q1 Highlights
1. Quarterly Results Ads and media business went well. Sales reached a record FY2021 high. 131.0 billion yen up 13.3% YoY Q1 Sales: OP: 7.0 billion yen down 8.7% YoY Driven by ABEMA related businesses, sales increased 1.6x year over year. Media Sales:20.4 billion yen up 67.0% YoY OP: -3.9 billion ye
Slide 6: Consolidated Sales
1. Quarterly Results [Consolidated Sales] 131 billion yen (up 13.3% YoY) The advertising business and the media business grew steadily and reached a record high. 129.1 131.0 120.8 117.3 115.6 113.6 112.8 110.8 111.7 109.5 107.5 104.4 101.8 97.9 93.3 89.5 Billion Yen 85.6 86.5 76.4 74.0 74.6 1Q 2Q 3Q
Slide 7: Consolidated OP
1. Quarterly Results [Consolidated OP] The investment development business offset the decrease in profit of the game business. 7.0 billion yen (down 8.7% YoY) Billion Yen 12.9 12.4 11.4 11.2 9.8 9.4 8.6 8.3 8.2 8.2 7.9 7.7 7.4 6.8 7.0 6.5 6.3 5.3 5.3 4.2 3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 8: SG&A Expenses
1. Quarterly Results [SG&A Expenses] 28.9 billion yen Due to increased marketing expenses of the game business and "WINTICKET". 28.9 29.7 28.9 Special incentives 1.4 Other* 27.3 26.3 26.9 Sales related costs 25.6 25.0 24.9 24.6 24.5 Office costs 7.5 25.0 7.7 23.4 23.7 7.3 3.1 23.0 22.6 23.1 Personne
Slide 9: No. of Employees
1. Quarterly Results [No. of Employees] Total headcount was 5,549 at the end of December. Investment Development 5,433 5,467 5,493 5,549 Headquarters 13 12 11 5,282 5,215 14 Other 5,109 5,111 11 5,162 370 374 370 369 11 4,988 14 12 12 4,902 370 366 Game 15 15 372 362 362 350 605 610 603 Internet Ad
Slide 10: Quarterly Results PL
1. Quarterly Results [PL] million yen FY2021 Q1 FY2020 Q1 YoY FY2020 Q4 QoQ Net Sales 131,014 115,681 13.3% 120,858 8.4% Gross profit 35,967 34,064 5.6% 35,157 2.3% S G&A expenses 28,908 26,331 9.8% 29,788 -3.0% Operating profit 7,058 7,733 -8.7% 5,369 31.5% OPM 5.4% 6.7% -1.3pt 4.4% 1.0pt Ordinary
Slide 11: Quarterly Results BS
1. Quarterly Results [BS] We maintain a strong financial position. End of End of End of million yen YoY QoQ Dec 2020 Dec 2019 S ept 2020 Current assets 193,779 168,150 15.2% 203,674 -4.9% Cash deposits 96,960 82,508 17.5% 102,368 -5.3% Fixed assets 58,274 57,993 0.5% 57,047 2.2% Total assets 252,094
Slide 12: FY2021 Forecast
2. Forecast FY2021 Forecast October 2020 - September 2021 11
Slide 13: FY2021 Forecast: Sales and OP
2. Forecast 500 billion yen（up 4.5% YoY） Sales 478.5 500.0 OP 30~35 billion yen (down 11.5%~up 3.3% YoY) 453.6 419.5 371.3 310.6 36.7 254.3 33.8 35.0 32.7 30.7 30.1 30.8 205.2 30.0 162.4 22.2 Billion yen 141.1 Sales 119.5 17.4 Continue up-front OP 93.8 96.6 14.3 investment in ABEMA 87.0 76.0 10.3 9.
Slide 14: Progress to Full-year Forecast
2. Forecast [Progress to Full-year Forecast] Q1 off to a good start. Sales 131.0B 26% 500B Operating profit 7.0B 20%～24% 30B ～ 35B Ordinary profit 6.9B 20%～23% 30B ～ 35B Net profit * 2.9B 29%～37% 8B ～ 10B 0% 25% 50% 75% 100% *Net profit: Profit attributable to shareholders of parent. Affected by the
Slide 15: Internet Advertisement
3. Internet Advertisement Business Internet Advertisement 14
Slide 16: Internet Advertisement: Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q1 76.5 billion yen (up 13.8% YoY) Sales recovered from Q3 and Q4 (0.01% and 2.5% increase respectively) and reached a record high. 76.5 72.7 66.6 67.3 64.3 64.3 64.9 63.3 61.4 61.3 62.2 60.2 57.6 55.6 52.5 Billion yen 51.0 47.8 48.6 43.6 43.0 40.
Slide 17: Internet Advertisement: Quarterly OP
3. Internet Advertisement Business [Quarterly OP] OP was 5.7 billion yen, OPM 7.5% 6.72 6.37 OP 5.66 5.70 5.52 OP Margin 5.43 5.13 5.04 Billion yen 4.91 4.69 4.74 4.58 4.52 4.42 4.44 4.27 4.24 4.23 3.96 3.70 3.58 10.1% 8.6% 9.6% 10.4% 8.8% 9.4% 9.8% 9.2% 8.9% 7.8% 8.0% 7.8% 6.9% 6.8% 8.2% 7.8% 7.8%
Slide 18: Focus Area: KIWAMI Prediction LED
3. Internet Advertisement Business [Focus Area] Following the release of KIWAMI Prediction AI (ad creative production) and KIWAMI Prediction TD (automatic advertising text generation,) KIWAMI Prediction LED is launched. KIWAMI Prediction LED An innovative shooting method uses KIWAMI Prediction AI to
Slide 19: Competitive Advantage: Maximize Advertising Effectiveness
3. Internet Advertisement Business [Competitive Advantage] Aiming to expand market share on the strength of the ability to maximize advertising effectiveness. Ad Operations Technical Capabilities [Creative] [AI] × Maximize Advertising Effectiveness 18
Slide 20: Game
4. Game Business Game @A CyberAgent. 19
Slide 21: Game: Quarterly Sales
4. Game Business [Quarterly Sales] Q1 29.9 billion yen (down15.0% YoY) due to seasonal factors of <Release Year> existing titles. It is recovering to the level of Q4 FY2020 in January. FY2021 FY2020 FY2019 44.8 FY2018 FY2017 FY2016 40.4 39.9 FY2015 38.2 37.7 39.0 FY2014 36.3 36.8 36.3 FY2013 or befo
Slide 22: Game: Quarterly OP
4. Game Business [Quarterly OP] 1.13 billion yen due to decrease in sales (down 77.8% YoY) 10.44 Billion Yen 8.83 8.55 8.31 8.37 7.91 7.51 7.58 7.49 7.47 6.93 6.89 6.77 7.00 6.45 5.64 5.23 5.11 4.33 3.19 1.13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2016 FY2017 FY2018 FY2019
Slide 23: Upcoming Games: NieR Re[in]carnation
4. Game Business [Upcoming Games] New RPG game “NieR Re[in]carnation” will be released on February 18. Planning & Production by SQUARE ENIX CO., LTD. Development by Applibot, Inc. To be released in North America & Europe as well *「NieR Re[in]carnation」: © 2021 SQUARE ENIX CO., LTD. All Rights Reserv
Slide 24: Upcoming Games: UMA MUSUME Pretty Derby
4. Game Business [Upcoming Games] The training simulation game “UMA MUSUME Pretty Derby,*” an original IP of Cygames, will be released on February 24. TV anime “UMA MUSUME Pretty Derby Season 2**” has been airing since Jan. 4 *“UMA MUSUME Pretty Derby” :©Cygames, Inc. 23 **TV Anime “UMA MUSUME Prett
Slide 25: Upcoming Games: More New Titles
4. Game Business [Upcoming Games] More new games will come out aiming to be successful titles. “Princess Connect Re:Dive*” English Dramatic anime RPG “IDOLY PRIDE***” Idol management RPG Operated by Crunchyroll Games Developed by funplex, Inc. QualiArts, Inc. Cygames, Inc. Original IP Jan. 20 To be
Slide 26: Media
5. Media Business Media @A CyberAgent. 25
Slide 27: Media: Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 20.4 billion yen (grew 1.6x YoY) -3.9 billion yen operating loss in Q1. ABEMA related businesses performed well. 20.4 billion yen 0.6 17.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q -0.01 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Slide 28: ABEMA Exceeded 62 Million Downloads
5. Media Business 62M DL Exceeded 62 million downloads in four and nine months after the launch. Downloads April 11 2016 Release Apr. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. 2016 2017 2018 2019 2020 2021 27
Slide 29: ABEMA: Growth of WAU
5. Media Business 14.90 [ABEMA] WAU stays at around 12 million. 14.31 14.56 14.23 14.03 We will increase viewing and billing from overseas 13.30 13.21 in the future. 13.25 12.69 12.83 12.53 11.98 Growth of WAU* 12.19 11.42 10.70 10.59 10.87 10.77 10.27 10.05 10.38 10.38 10M WAU 9.18 9.28 8.55 8.29 8
Slide 30: ABEMA: Premium Users and Exclusive Content
5. Media Business [ABEMA] 0.921 million premium users at the end of December. ABEMA will continue to expand the number of exclusive contents for subscribers. 0.921M Exclusive Content on ABEMA Premium “ABEMA Premium” Subscribers Special movie co-produced with Toei Video Streaming started on January 1
Slide 31: ABEMA: Live Concerts on PPV Online Live
5. Media Business [ABEMA] During December quarter, many famous artists performed at the “ABEMA PPV ONLINE LIVE.” Live concerts in Oct-Dec 30 ©AbemaTV, Inc.
Slide 32: WINTICKET Transaction Volume
5. Media Business [ABEMA] By stepping up promotions and releasing new functions, the transaction volume of "WINTICKET" has increased about 11 times year over year. 19.2 TV commercial was aired during winter holidays. ** Quarterly Transaction Amount* of "WINTICKET" 13.7 11x 7.2 New Feature “Original
Slide 33: ABEMA Team Reorganized from FY2021
5. Media Business [ABEMA] The ABEMA team has been reorganized from FY2021. The two units work to expand the number of "FREE users" and "PREMIUM users" respectively. ABEMA 1. FBU 2. PBU (Free Business Unit) (Premium Business Unit) Raise WAU base Increase Premium Users • Service improvement • Expand p
Slide 34: ABEMA Medium and Long-Term Sales Pipeline
5. Media Business [ABEMA] Medium and Long-Term Sales Pipeline Accelerate monetization by related businesses etc. Related Business while increasing advertising and subscription revenues. etc. Subscription Advertising 2016 2019 33
Slide 35: FY2021
6. FY2021 @A CyberAgent. FY2021
Slide 36: FY2021 Priorities for Media, Ad and Game
6. FY2021 Grow ABEMA as a medium to long-term pillar. Media Grow ABEMA larger and increase monetization Aim to increase sales by maximizing advertising Ad effectiveness Game Make successful games and enhance the operational capability to run long term games 35
Slide 37: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 38: Reference
7. Reference Reference • Governance 37
Slide 39: Reference: Governance Structure
7. Reference_ Governance We developed a new structure to strengthen governance and make a clear distinction between management oversight and execution. Board of Directors Four executive directors Four outside directors include a female director 本体役員室 Corporate Executive Office Eight executive direct
Slide 40: Reference: Directors
7. Reference_ Governance [Directors] Eight directors include three Audit and Supervisory Committee members. Seven male directors and a female director, of which four are outside directors. Director Nominees Outside Outside Susumu Fujita Yusuke Go Nakayama Koichi Nakamura Kozo Takaoka Representative
Slide 41: Reference: Executive Officers
7. Reference_ Governance [Executive officers] 40
Slide 42: Reference: Executive Officers
7. Reference_ Governance [Executive officers] 41
Slide 43: IR Channel
IR video contents for shareholders and investors “IR Channel” These short videos cover the latest case studies of AI in the advertising business, as well as the usage scenarios and functions of "ABEMA" in Japan. https://www.cyberagent.co.jp/en/ir/ir_channel/ The evolving ad creative of CyberAgent AI
Slide 44: Integrated Report CyberAgent Way 2020
Integrated Report CyberAgent Way 2020 The New Normal is a theme of the report which describes CyberAgent's strength in responding to change, creating new business opportunities, and a new structure that separates supervision and execution to strengthen governance further. Also, to provide increasing