Broadmedia Corporation · TSE:4347
Broadmedia — FY2017 Earnings Presentation
43 slides from Broadmedia's earnings presentation, May 30, 2018
Slide 1: Summary of Financial Results for the Fiscal Year Ended March 31, 2018
Summary of Financial Results for the Fiscal Year Ended March 31, 2018 Broadmedia Corporation May 30, 2018 The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding f
Slide 2: Investigation results of damages from fictitious transactions suffered by Fishing Vision
Regarding investigation results of damages from fictitious transactions suffered by Fishing Vision 2 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 3: Damages from Fictitious Transactions Suffered by Fishing Vision
Damages from Fictitious Transactions Suffered by Fishing Vision The Internal Investigation Committee undertook an investigation into the damages suffered by Fishing Vision, a consolidated subsidiary, due to fictitious transactions, which were discovered in January 2018. And we established a third-pa
Slide 4: Investigation results of each committee
Investigation results of each committee Internal Investigation Committee The matter was a case of fraud committed by a subcontractor. They did not find that there were any individuals internally who had been involved in the fictitious transactions. Third-Party Committee They found no fraudulen
Slide 5: Enhancement of recurrence prevention measures/compliance system
Enhancement of recurrence prevention measures/compliance system The following measures will be taken as a result of the investigation and suggestions. (1) Thorough establishment of relationships with business partners (2) Strict credit management (3) Sufficient training on the importance of internal
Slide 6: Enhancement of recurrence prevention measures/compliance system
Enhancement of recurrence prevention measures/compliance system The following measures will be taken as a result of the investigation and suggestions. (6) Review of items to be reported at important meetings, etc. (7) Streamline rules and manuals within our group (8) Strengthen the cooperation among
Slide 7: Next Steps
Next Steps 1 Actions to be taken Regarding damages incurred by our group, the Company will make efforts to obtain refunds, claim damages, etc. ・ Appr. 500 million yen recorded as extraordinary loss for direct damages ・ Incidental expenses incurred for investigation and outside experts We will al
Slide 8: Next Steps
Next Steps 2 Submission of a financial statement and an amendment report We expect to submit a financial statement by the deadline at the end of June. We are currently making adjustments with an auditing firm that will accept an amendment report dated before FY2014. Even if this is accepted, h
Slide 9: Agenda
◆ Summary of Financial Results for FY2017 ◆ Financial Forecasts for FY2018 ◆ Management Challenges [Reference Documents] ・ Results by Business Segment ・ Topics 9 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 10: Consolidated Financial Results for FY2017
Consolidated Financial Results for FY2017 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Forecasts for Achievement FY2016 FY2017 Difference full-year ratio financial results (*) Revenue 10,413 10,800 387 10,600 102% Operating income 38 86 47 50 172% Ordinary income (14) 79
Slide 11: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 12: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio Both revenue2,6
Slide 13: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 14: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 15: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 16: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 17: Consolidated Financial Results by Business Segment
Consolidated Financial Results by Business Segment (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 Broadcast 3,109 2,980 (129) 164 87 (76) Studio 2,683 2,592 (91)
Slide 18: Consolidated Financial Position
Consolidated Financial Position Condition of assets, liabilities, （Unit : Million yen) and net assets Rate of FY2016 FY2017 Difference difference Total assets 7,278 6,540 (738) (10%) Liabilities 4,857 3,655 (1,202) (25%) Net assets 2,420 2,884 463 19% Shareholders’ equity 1,692 2,396 703 42% Stock a
Slide 19: Consolidated Financial Position: Cash Flow
Consolidated Financial Position Condition of Cash flow FY2016 FY2017 Operating cash flow 416 (98) Investing cash flow 42 (234) Financing cash flow 407 (358) Changes in cash and cash equivalents 862 (687) Year-end balance of cash and cash equivalents 2,304 1,616 (Unit：Million yen) (Amounts are rounde
Slide 20: Agenda
◆ Summary of Financial Results for FY2017 ◆ Financial Forecasts for FY2018 ◆ Management Challenges [Reference Documents] ・ Results by Business Segment ・ Topics 20 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 21: Consolidated Financial Forecasts Full-year Forecasts
Consolidated Financial Forecasts Full-year Forecasts (Unit：Million yen) (Amounts are rounded down to the nearest million yen) FY2017 FY2018 Difference actual full-year forecasts Revenue 10,800 11,700 900 Operating income 86 50 (36) Ordinary income 79 40 (39) Net income (232) (80) 152 Revenue and i
Slide 22: Agenda
◆ Summary of Financial Results for FY2017 ◆ Financial Forecasts for FY2018 ◆ Management Challenges [Reference Documents] ・ Results by Business Segment ・ Topics 22 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 23: Content (Cloud Gaming Business)
Content (Cloud Gaming Business) Strengthening of alliances Providing a cloud game platform to: Japan: NTT Plala, J:COM, Leopalace 21, Sharp, PIXELA Overseas: Orange, SFR ⇒We will enhance the alliances with the aim of increasing profit. Development of the next-generation portal ⇒Demonstrate and test
Slide 24: Content (Cloud Gaming Business)
Content (Cloud Gaming Business) Efforts for VR/4K/5G Expand the provision of technology for VR Build a new service through continued experimentation and testing of 5G, etc. Game development Promotion of the development of game software for the Nintendo SwitchＴＭ through an alliance with Pocket Inc.,
Slide 25: Content (Digital Media Business)
Content (Digital Media Business) Expansion of service Digital comic service for smartphones and tablets Provision of the “Crank-in! Comic” service begins. ⇒We provide a new integrated way of enjoying news/movies/comics. 25 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 26: Content (Educational Services)
Content (Educational Services) Development and provision of a new curriculum and learning materials Four commuting-based learning courses were launched “eSports course”, “YouTuber development course”, “Preparatory course for university exams using “Studysapuri” materials” and “Dedicated English lang
Slide 27: Broadcast (Fishing Vision)
Broadcast (Fishing Vision) Fishing Vision × Digital Media In addition to broadcasting satellite (BS) broadcasting, we expand the provision of information content to digital media. We distribute an overwhelming quantity and quality of information on fishing in a timely manner on the Internet. We
Slide 28: Technology Services
Technology Services Leverage considerable experience and know-how Broadmedia® CDN CM Online We have undertaken distribution online in place of delivery using physical media up until now. ⇒44 broadcasting stations nationwide, including key stations, have already adopted our 28 service. *As of May 1
Slide 29: Technology Services
Technology Services Provision of a new solution and service We provide a private network that goes around the world: Aryaka Global SD-WAN. ⇒World’s first cloud-type WAN speed-up/optimization service ⇒Stabilization of large-volume data communication environment among global sites In addition to the e
Slide 30: We aim to increase profit; we enhance governance
We aim to increase profit by taking on a new challenge and creating an opportunity to earn further profit in each segment. We enhance governance throughout the company and our compliance system, working to achieve our group’s sustainable growth and improve its corporate value. 30 © 2018 Broadmed
Slide 31: Thank you for your attention.
Thank you for your attention. The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by t
Slide 32: Agenda
◆ Summary of Financial Results for FY2017 ◆ Financial Forecasts for FY2018 ◆ Management Challenges [Reference Documents] ・ Results by Business Segment ・ Topics 32 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 33: Consolidated Financial Results by Business Segment – Content
Consolidated Financial Results by Business Segment – Content - Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Content 2,010 2,148 138 (220) 14 235 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased in education servi
Slide 34: Consolidated Financial Results by Business Segment – Broadcast
Consolidated Financial Results by Business Segment – Broadcast – Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Broadcast 3,109 2,980 (129) 164 87 (76) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and operating income decreased due
Slide 35: Consolidated Financial Results by Business Segment – Studio
Consolidated Financial Results by Business Segment – Studio – Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Studio 2,683 2,592 (91) 173 47 (125) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased, sales of programs
Slide 36: Consolidated Financial Results by Business Segment – Technology
Consolidated Financial Results by Business Segment – Technology – Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Technology 1,982 2,311 329 341 384 43 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased due to the inc
Slide 37: Consolidated Financial Results by Business Segment – Network Sales
Consolidated Financial Results by Business Segment – Network Sales – Revenue Operating income FY2016 FY2017 Difference FY2016 FY2017 Difference Network Sales 627 767 140 10 4 (5) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Revenue increased while operating income decline
Slide 38: Consolidated Financial Results by Business Segment – Corporate expenses
Consolidated Financial Results by Business Segment – Corporate expenses – Operating income FY2016 FY2017 Difference Corporate (429) (453) (23) expenses (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Expenses were incurred, including the expenses related to the investigation
Slide 39: Educational Services
Educational Services May 22, 2018 Service partnership with Jinjibu Co. Ltd, which operates “JOB Draft,” an employment website for high school students Information media program for high Career education curriculum Employment support school students ©ＪＯＢドラフト. Enhancement of a system for the provision
Slide 40: Content Services
Content Services Game development／Procurement Pocket Inc., in which our company invests; May 2, 2018, Distribution of the VR planetarium software “HOMESTAR VR” begins at the same time as the launch of the “Oculus Go” headset! Ｏｃｕｌｕｓ Ｇｏ Ｏｃｕｌｕｓ Ｒｉｆｔ ＨＴＣ ＶＩＶＥ Distribution of “Oculus Rift” and “HTC VIVE
Slide 41: Topics (Future distribution works)
Topics (Future distribution works) Unprecedented movie in the industry!? Gyoza × LOVE entertainment “ KISS DEKIRU GYOZA (Gyoza You Can Kiss) ” To be released progressively at theaters nationwide including Shinjuku Piccadilly from Friday, June 22, 2018 [Advance roadshow in Tochigi Prefecture on Frida
Slide 42: Corporate Philosophy
Corporate Philosophy We aim to contribute to the development of a more affluent community through the dissemination of high quality products and services that are derived from creativity. 42 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 43: http://www.broadmedia.co.jp/
http://www.broadmedia.co.jp/ The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by th