Broadmedia Corporation · TSE:4347

Broadmedia — FY2022 Earnings Presentation

49 slides from Broadmedia's earnings presentation, May 9, 2023

1. Slide 1: Summary of Financial Results for the Fiscal Year Ended March 31, 2023

   Summary of Financial Results for the Fiscal Year Ended March 31, 2023 Broadmedia Corporation May 9, 2023 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 fu

2. Slide 2: Summary of Financial Results for FY2022 (Agenda)

   Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

3. Slide 3: Consolidated Financial Results for FY2022

   Consolidated Financial Results for FY2022 (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Financial Rate of Forecasts Achievement FY2021 FY2022 Difference difference （announced on ratio Apr. 27） Revenue 12,339 13,023 683 ＋6% 13,600 96% Operating income 876 1,036 159 ＋18% 1,00

4. Slide 4: Changes in Operating Income (year over year)

   Changes in Operating Income (year over year) Q1 Q2 Q3 Q4 Actual results in FY2021 1,036 1,000 Cumulative totals in FY2021 （forecast） Actual results in FY2022 Cumulative totals in FY2022 774 876 465 637 319 289 317 308 261 186 239 133 176 (Unit：Million yen) Operating income in the third quarter was s

5. Slide 5: 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 FY2021 FY2022 Difference FY2021 FY2022 Difference Education 2,784 3,444 660 786 1,089 302 Studio & 3,008 2,658 (349) 48 (88) (136) Content Broadcast 2,6

6. Slide 6: 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 12,339 13,023 876 1,036 14,000 2,000 186 211 193 12,000 35 2,658 1,500 48 3,008 283 508 10,000 Technology 2,518 1,000 406 8,000 2,641 Education 500 1,08

7. Slide 7: Consolidated Financial Results by Business Segment: Education

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Education 2,784 3,444 660 786 1,089 302 ＋24％ ＋38％  The number of new students reached a record high i

8. Slide 8: Consolidated Financial Results by Business Segment: Studio & Content

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Studio & Content 3,008 2,658 (349) 48 (88) (136) （12％） ｌoss recorded  In the production business, rev

9. Slide 9: Consolidated Financial Results by Business Segment: Broadcast

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Broadcast 2,641 2,518 (122) 283 193 (89) （5％） （32％）  Both revenue and income dropped because the impa

10. Slide 10: Consolidated Financial Results by Business Segment: Technology

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Technology 3,694 4,213 518 406 508 102 +14％ +25％  CDN (Akamai) services maintained good performance.

11. Slide 11: Consolidated Financial Results by Business Segment: Others

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Others 211 186 ― 35 (24) ―  In network sales, sales plunged due to the suspension of activities for t

12. Slide 12: Consolidated Financial Results by Business Segment: Corporate expenses

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Operating income FY2021 FY2022 Difference Corporate (682) (642) 40 expenses 6％ cost decrease  Costs decreased approximately 6% compared to the previous fiscal year. ◆ Operating

13. Slide 13: Consolidated Financial Position

    Consolidated Financial Position Condition of assets, liabilities, (Unit：Million yen)(Amounts are rounded down to the nearest million yen) and net assets Rate of FY2021 FY2022 Difference difference Total assets 8,940 9,948 1,008 ＋11% Liabilities 4,329 4,498 168 ＋4% Net assets 4,610 5,450 840 ＋18% Sha

14. Slide 14: Consolidated Financial Position: Cash Flow

    Consolidated Financial Position Condition of Cash flow FY2021 FY2022 Operating cash flow 1,934 1,429 Investing cash flow 42 (331) Financing cash flow (118) (564) Changes in cash and cash equivalents 1,876 547 Increase in cash and cash equivalents resulting from inclusion of ※2 56 ※3 17 subsidiaries

15. Slide 15: Summary of Financial Results for FY2022 (Agenda)

    Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

16. Slide 16: New Reporting Segments

    New Reporting Segments New reportable segments applied from Q1 of FY2023. ⇒ The Studio & Content segment will be divided into 2 segments. ⇒ The Pocket Company, which we have invested in, will become a consolidated subsidiary in the Others segment. 【5 previous segments】 【6 new segments】 Name of segme

17. Slide 17: New Reporting Segments

    New Reporting Segments  The Studio & Content segment was divided into the Media Content segment and the Studio & Production segment.  The organization will be changed to respond to the environmental changes surrounding movie content.  Expedite decision-making and establish a business promotion sy

18. Slide 18: Summary of Financial Results for FY2022 (Agenda)

    Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

19. Slide 19: Consolidated Financial Forecasts

    Consolidated Financial Forecasts (Unit：Million yen)(Amounts are rounded down to the nearest million yen) FY2022 FY2023 Rate of Difference difference actual results Full-year forecasts Revenue 13,023 14,300 1,277 ＋10% Operating income 1,036 1,200 164 ＋16% Ordinary income 1,079 1,200 121 ＋11% Net inco

20. Slide 20: Full-year earnings trends and forecasts: Corporate tax adjustment impact

    Full-year earnings trends and forecasts  Impact of the corporate tax adjustment on net income (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Net Income 1,200 1,110 1,011 1,000 1,000 Amount of the Amount of the corporate tax corporate tax Amount of the adjustment: 202M adjus

21. Slide 21: Full-year earnings trends and forecasts

    Full-year earnings trends and forecasts (Unit：Million yen) Revenue Operating income 14,300 1,200 1,200 14,000 1,036 13,023 1,000 876 13,000 12,339 800 12,000 11,506 600 505 478 10,991 11,000 400 10,000 200 9,000 0 0 2019 2020 2021 20２2 2023(forecast) 2019 2020 2021 20２2 2023(forecast) Ordinary incom

22. Slide 22: Summary of Financial Results for FY2022 (Agenda)

    Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

23. Slide 23: Medium-to-Long-Term Initiatives (announced on April 27, 2022)

    Medium-to-Long-Term Initiatives （announced on April 27, 2022） The Broadmedia Group will grow with sustainable and ethical businesses. (1) Accelerate incubation (business development) within the range of increased revenue and income 1. eSports business (Education + Subsidiary BM eSports + Technology)

24. Slide 24: Medium-to-Long-Term Initiatives: eSports business

    Medium-to-Long-Term Initiatives (1) Accelerate incubation (business development) within the range of increased revenue and income 1. eSports business (Education + Subsidiary BM eSports + Technology)  Pursue digital education that allows freedom with fewer restrictions  Aim to become a leading eSpo

25. Slide 25: 7 campuses where you can take eSports courses

    Medium-to-Long-Term Initiatives 7 campuses where you can take eSports courses Hakata CP Nagoya Sakae CP Ikebukuro CP, opened in April 2023 Umeda eSports CP Namba eSports CP Yokohama CP Shinjyuku Yoyogi CP © 2023 Broadmedia Corporation. All Rights Reserved. 25

26. Slide 26: Transformation of the education business through eSports ①

    Medium-to-Long-Term Initiatives Transformation of the education business through the eSports business ①  The eSports courses greatly contribute to the expansion of the Education service operations.  High educational effect exceeding our assumptions ⇒ Strong parental support for both the student an

27. Slide 27: Students' Results in Competitions

    Medium-to-Long-Term Initiatives Transformation of the education business through the eSports business ② ～ Students' Results in Competitions ～ ALL JAPAN HIGHSCHOOL “Fortnite" Division League of Legends Division esports in 2023 Winner finished 2nd place 2022 2021 League of Legends Division “Fortnite"

28. Slide 28: Activities of Students

    Medium-to-Long-Term Initiatives Transformation of the education business through the eSports business ③ ～ Activities of Students ～ External events and exhibition booths operated by Renaissance High School students Japan Expo 2019 in Paris TOKYO eSPORTS FESTA 2020 TOKYO GAME SHOW 2022 eSports course

29. Slide 29: Transformation of the education business through eSports ④

    Medium-to-Long-Term Initiatives Transformation of the education business through the eSports business ④  High reputation in various fields  "There is demand for the eSports (Education/Culture) business all around Japan" Promote the opening of new campuses in the future as well © 2023 Broadmedia Co

30. Slide 30: Medium-to-Long-Term Initiatives: Japanese language education business

    Medium-to-Long-Term Initiatives (1) Accelerate incubation (business development) within the range of increased revenue and income 2. Japanese language education business (Education + Studio & Content + Technology)  Develop online education and high-quality unique teaching materials  Examine an ent

31. Slide 31: Background of the Opening of Renaissance Japanese Language Academy

    Medium-to-Long-Term Initiatives Background of the Opening of Renaissance Japanese Language Academy (1) The new Registered Japanese Language Teacher national qualification will be established (scheduled in 2024). Current situation and issues faced by Japanese language teachers  There is no public qu

32. Slide 32: Shortage of Japanese language teachers

    Medium-to-Long-Term Initiatives The Broadmedia Group will grow with sustainable and ethical businesses. Background of the Opening of Renaissance Japanese Language Academy (2) Shortage of Japanese language teachers Forecast in 2030 Number of foreign students Number of foreign workers Number of foreig

33. Slide 33: Background of the Opening of Renaissance Japanese Language Academy

    Medium-to-Long-Term Initiatives Background of the Opening of Renaissance Japanese Language Academy (1) The new Registered Japanese Language Teacher national qualification will be established (scheduled in 2024). (2) Shortage of Japanese language teachers Enter a new market that is expected to grow i

34. Slide 34: Features of Japanese language teacher training courses

    Medium-to-Long-Term Initiatives Features of Japanese language teacher training courses https://www.rn-ac.jp/  Unique e-learning materials and classroom instruction allow students to learn in a way that fits their lifestyles.  A course that fulfills the standards for a 420-hour curriculum set by th

35. Slide 35: Renaissance Japanese Language Academy Founding Thoughts

    Medium-to-Long-Term Initiatives Renaissance Japanese Language Academy Founding Thoughts In addition to cultivating high-quality Japanese language teachers, expand into businesses related to the education business through recruitment We plan to not only provide job opportunities at Renaissance High S

36. Slide 36: Synergies with Renaissance High School Group

    Medium-to-Long-Term Initiatives Synergies with Renaissance High School Group • Existing Renaissance High School Group campuses will be used effectively as the locations necessary for classroom lectures and practice teaching. • Optimize investment efficiency and operating costs through multiple busin

37. Slide 37: Visions of the education business

    Medium-to-Long-Term Initiatives The Broadmedia Group will grow with sustainable and ethical businesses. Visions of the education business (unique composite education business) (1) Wide-area online high schools are enabling school education to grow in a society with fewer children. × (2) There is dem

38. Slide 38: Summary of Financial Results for FY2022 (Agenda)

    Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

39. Slide 39: Shareholder Return: Repurchased treasury stock for the third consecutive fiscal year

    Shareholder Return Repurchased treasury stock for the third consecutive fiscal year 【 Results of share repurchases during the period】 Type of shares acquired common shares of the Company Total number of acquired shares 138,900 shares （Progress ratio: 92.60％） Total share acquisition price 149,926,000

40. Slide 40: Shareholder Return (Dividend)

    Shareholder Return (Dividend)  For FY2022, we will pay a year-end dividend of 30 yen per share (consolidated payout ratio: 19.9%), as forecasted at the beginning of the fiscal year.  To be submitted to the Ordinary General Meeting of Shareholders scheduled in June 2023.  Total return ratio includ

41. Slide 41: Shareholder Return

    Shareholder Return Our firm recognizes that one crucial issue for its management is simultaneously securing competitiveness in our business lines and returning profits to our shareholders. We will continue to provide shareholder returns, considering the need to balance it with investments necessary

42. Slide 42: 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

43. Slide 43: Summary of Financial Results for FY2022 (Reference Documents)

    Summary of Financial Results for FY2022 New Reporting Segments Financial Forecasts for FY2023 Medium-to-Long-Term Initiatives Shareholder Return [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation

44. Slide 44: Consolidated Financial Results by Business Segment: Breakdown of revenue by income type

    Consolidated Financial Results by Business Segment Breakdown of revenue by income type upper row：revenue（Unit：Million yen)(Amounts are rounded down to the nearest million yen) lower row： Composition ratio Breakdown of income Breakdown of revenue from by stock/flow original products/others Total Prod

45. Slide 45: Topics: Introduction of main products of The Pocket Company

    Topics (Others; Game Publishing) Introduction of main products of The Pocket Company HOMESTAR VR Overcooked！ 🄬 HOMESTAR VR SPECIAL EDITION Overcooked🄬２ All You Can Eat Experience the starry night sky Special edition of the The long-awaited package version The complete version with all in full 360…

46. Slide 46: Report on the winners of CAG

    Topics (Others; Promotion of Professional eSports) Report on the winners of CAG FENRITTI GO1 「DRAGON BALL FighterZ World Tour 「ARC WORLD TOUR FINALS 2022」, 2022/2023」 Winner competitive fighting game, 『DNF Duel』 Winner The World Championship of Competitive Arc System Works' Official World Convention

47. Slide 47: Determined to participate in the Street Fighter League: Pro-JP 2023

    Topics (Others; Promotion of Professional eSports) Determined to participate in the Street Fighter League: Pro-JP 2023 Japan's top official fighting game team league competition hosted by CAPCOM CO., LTD, held every year since 2018 CYCLOPS will join the competition for the first time in 2023, aiming

48. Slide 48: Our Mission

    Our Mission We contribute to communities through quality content and services produced by human creativity. © 2023 Broadmedia Corporation. All Rights Reserved. 48

49. Slide 49: https://www.broadmedia.co.jp/

    https://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 t

Broadmedia — FY2022 Earnings Presentation on 6ix