Slide 1: 2Q FY2021 Presentation Material
oe @A CyberAgent. 2Q FY2021 Presentation Material January to March 2021 Cs Aprit 28, 2021 —S) 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 (January - March 2021) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. FY2021 2
Slide 4: Quarterly Results (January - March 2021)
1. Quarterly Results (Jan. – Mar. 2021) Quarterly Results (January - March 2021) 3
Slide 5: Game and ads performed well; forecast revised upward
1. Quarterly Results (Jan. – Mar. 2021) Game and ads performed well. We revise the forecast FY2021 upward. 163.4 billion yen up 26.6% YoY Q2 Sales: OP: 25.8 billion yen up 2.1X YoY Sales of ABEMA and related businesses increased 1.4x year over year. Media Sales:19.8 billion yen up 43.6% YoY OP: -3.4
Slide 6: Consolidated Sales 163.4 billion yen
1. Quarterly Results (Jan. – Mar. 2021) [Consolidated Sales] 163.4 billion yen (up 26.6% YoY) The game business and the advertising business 163.4 performed well. 129.1 131.0 120.8 117.3 115.6 113.6 111.7 112.8 109.5 110.8 107.5 104.4 101.8 97.9 93.3 Billion Yen 89.5 85.6 86.5 74.6 76.4 74.0 1Q 2Q 3
Slide 7: Consolidated OP reached 25.8 billion yen
1. Quarterly Results (Jan. – Mar. 2021) [Consolidated OP] New game titles became hits. OP reached 25.8 billion yen (up 2.1x YoY) 25.8 Billion Yen 12.9 12.4 11.2 11.4 9.8 9.4 8.6 8.3 8.2 8.2 7.9 7.7 7.4 6.8 7.0 6.3 6.5 5.3 5.3 4.2 3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 8: SG&A Expenses 30.6 billion yen
1. Quarterly Results (Jan. – Mar. 2021) [SG&A Expenses] 30.6 billion yen (up 13.9% YoY) Special incentives 30.6 Other* 29.7 28.9 28.9 Sales related costs 1.4 27.3 Office costs 26.3 26.9 7.6 25.6 25.0 25.0 Personnel 24.9 24.6 24.5 7.5 23.7 7.7 Advertisement cost 23.1 23.4 7.3 3.1 23.0 22.6 7.3 7.0 21
Slide 9: Number of Employees
1. Quarterly Results (Jan. – Mar. 2021) [No. of Employees] Total headcount was 5,535 at the end of March. (300 new graduates joined in April) Investment Development 5,549 5,467 5,493 12 5,535 Headquarters 5,433 12 11 5,282 5,215 14 13 5,162 370 370 374 Other 5,109 5,111 369 11 11 374 4,988 14 12 12
Slide 10: PL
1. Quarterly Results (Jan. – Mar. 2021) [PL] million yen FY2021 Q2 FY2020 Q2 YoY FY2021 Q1 QoQ Net Sales 163,483 129,172 26.6% 131,014 24.8% Gross profit 56,529 39,422 43.4% 35,967 57.2% SG&A expenses 30,655 26,924 13.9% 28,908 6.0% Operating profit 25,874 12,498 107.0% 7,058 266.6% OPM 15.8% 9.7% 6
Slide 11: BS: strong financial position
1. Quarterly Results [BS] We maintain a strong financial position. End of End of End of million yen YoY QoQ Mar. 2021 Mar. 2020 Dec. 2020 Current assets 234,873 183,524 28.0% 193,779 21.2% Cash deposits 100,384 84,960 18.2% 96,960 3.5% Fixed assets 65,437 57,542 13.7% 58,274 12.3% Total assets 300,3
Slide 12: FY2021 Forecast
2. Forecast FY2021 Forecast October 2020 - September 2021 11
Slide 13: Progress to Full-year Forecast
2. Forecast [Progress to Full-year Forecast] New released game titles became hits. The advertising business also went better than we expected. 売上高 Sales 294.4B 500B Achieved 営業利益 Operating Profit 32.9B 30B ～ 35B Achieved 経常利益 Ordinary Profit 33.0B 30B ～ 35B Achieved 当期純利益 Net Profit*※ 13.6B 8B ～ 10B
Slide 14: Upward Revision: sales 600 billion yen
2. Forecast [Upward Revision] 600.0 600 billion yen（up 25.4% YoY） Sales OP 57.5~62.5 billion yen (up 69.7%~84.5% YoY) 478.5 453.6 62.5 419.5 371.3 57.5 310.6 36.7 254.3 33.8 32.7 30.7 30.1 30.8 205.2 Billion yen 162.4 22.2 Sales 141.1 OP 17.4 119.5 93.8 96.6 14.3 87.0 76.0 10.3 60.1 9.3 43.2 5.5 4.6
Slide 15: Upward Revision and dividend forecast
2. Forecast [Upward Revision] FY2021 FY2021 Unit: billion yen Original Forecast Revised Forecast Difference FY2020 YoY (Released on Oct.28, (Released on April.28, (Amount) 2020) 2021) Minimum Maximum Minimum Maximum Minimum Maximum Net Sales 500 600 100 478.5 25.4% Operating profit 30.0 35.0 57.5 62
Slide 16: Progress to Full-year Forecast after revision
2. Forecast [Progress to Full-year Forecast after revision] Progression rate 売上高 Sales 294.4B 49% 600B Progression rate 営業利益 Operating Profit 32.9B 53%~57% 57.5B ～62.5B Progression rate 経常利益 Ordinary Profit 33.0B 53%~57% 57.5B ～62.5B Progression rate 当期純利益 Net Profit * ※ ※ 13.6B 53%~57% 24.0B ～26.0B
Slide 17: Internet Advertisement
3. Internet Advertisement Business Internet Advertisement 16
Slide 18: Internet Advertisement Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q2 80.6 billion yen (up 10.8% YoY) Sales reached a record high with the strength of 80.6 maximizing advertising effectiveness. 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 51.0 Billion yen 47.8 48.6 43.6 43.0 40.5 1Q
Slide 19: Internet Advertisement Quarterly OP
3. Internet Advertisement Business [Quarterly OP] OP was 7.2 billion yen and OPM was 9.0%. OP reached a new record high. 7.23 6.72 6.37 OP OP Margin 5.66 5.70 5.52 5.43 5.13 5.04 4.91 Billion yen 4.69 4.74 4.58 4.52 4.42 4.44 4.27 4.24 4.23 3.96 3.70 3.58 8.8% 10.1% 8.6% 8.9% 9.4% 9.8% 9.6% 10.4% 7.
Slide 20: Change in Sales
3. Internet Advertisement Business [Change in Sales] COVID-19 had an impact on sales last year. However, sales have recovered since Q1. 806 80.6 Billion yen 76.5 765 Sales up 10.8％ 72.7 727 COVID-19 outbreak 643 649 64.9 64.3 Decrease in ad spend due to the state of emergency 2Q 3Q 4Q 1Q 2Q FY2020 F
Slide 21: Focus Area: AI and digital transformation
3. Internet Advertisement Business [Focus Area] We are expanding the business using "AI" and "digital transformation." AI Digital Transformation Automatic generation of ad Promotion platform for retail creatives industry 3DCG shooting method with real- time prediction of advertising Online doctor vi
Slide 22: Game
4. Game Business Game @A CyberAgent. 21
Slide 23: Game Quarterly Sales
4. Game Business [Quarterly Sales] Two new titles had a quick start. Sales reached a record high of 63.9 billion yen. (up 42.7% YoY) 63.9 44.8 40.4 39.9 38.2 37.7 39.0 36.8 36.3 36.7 Billion Yen 35.8 36.3 35.5 34.5 34.6 33.7 35.2 33.4 30.6 29.9 29.7 27.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 24: Major Titles
4. Game Business [Major Titles] Two highly anticipated titles were released in Q2. New FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 1 2 5 7 UMA Sengoku PRINCESS MUSUME Granblue Shadowverse Embu CONNECT! Pretty -KIZNA- Fantasy Re:Dive Derby* Original IP Original IP Original IP Origi
Slide 25: Game Quarterly OP
4. Game Business [Quarterly OP] Q2 23.2 billion yen (up 122.3% YoY) 23.20 Billion Yen 10.44 8.83 8.31 8.55 8.37 7.51 7.91 7.49 6.93 7.47 7.58 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 2Q FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Slide 26: Major Titles: anniversaries in Q2
4. Game Business [Major Title] Three titles had their anniversaries in Q2 (January – March). Granblue Fantasy* Release: 2014 Princess Connect Re:Dive* Release: 2018 RPG Anime RPG 7th anniv. 3rd anniv. March 2021 Feb 2021 BanG Dream! Girls Band Party!** Release: 2017 Rhythm & adventure game 4th anniv
Slide 27: New Title: NieR Re[in]carnation
4. Game Business [New Title] New RPG game “NieR Re[in]carnation*” is released on February 18, 2021. An English version will also be released. 10 million downloads *”NieR Re[in]carnation” : © 2021 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Applibot,Inc. ** The number of downloads exceede
Slide 28: UMA MUSUME Pretty Derby: cross-media franchise
4. Game Business [UMA MUSUME Pretty Derby*] Cygames, Inc. provides it as a cross-media franchise. Game Features Characters carry the names of real racehorses Training Simulation Game *“UMA MUSUME Pretty Derby” :©Cygames, Inc. 27
Slide 29: UMA MUSUME Pretty Derby: game release
4. Game Business [UMA MUSUME Pretty Derby*] The game is released on February 24, 2021. *“UMA MUSUME Pretty Derby” :©Cygames, Inc. 28
Slide 30: UMA MUSUME Pretty Derby: media expansion
4. Game Business [UMA MUSUME Pretty Derby*] Since 2016, it has expanded into manga, live events, TV anime, and other media. Manga Published in Live Event TV Anime “Uma Musume Pretty Derby: Held in 2017 “Uma Musume Pretty Derby“****** Aired in 2018 2016 “Special Weekend!” **** Haru Urara Ganbaru! “**
Slide 31: UMA MUSUME Pretty Derby downloads
4. Game Business [UMA MUSUME Pretty Derby*] In addition to the fans gained through cross-media promotions, the game has also gained new fans, including horse racing fans. The number of downloads exceeded 5 million in 1.5 month. Apr.8 5M No. of downloads Mar.30 4M Mar.17 3M Mar.10 2M Mar.1 1M DMM Gam
Slide 32: Upcoming Events
4. Game Business [UMA MUSUME Pretty Derby*] Aim to become a successful, long-running title Upcoming Events • New features (incl. training scenarios, friend function) • Overseas expansion (Korean, Simplified Chinese ver.) • Live events • Streaming program • CD and other merchandise *“UMA MUSUME Prett
Slide 33: Upcoming Games
4. Game Business [Upcoming Games] More new games will come out aiming to become successful titles. Online escape game “D-CIDE TRAUMERAI”*** Mixed media project “The Promised Neverland -Escape from Hunting Garden-”* Sumzap, Inc./ Drecom Co., Ltd./Bushiroad Inc. To be CyberAgent Anime Business Unit/GO
Slide 34: Upcoming Games: FINAL FANTASY VII EVER CRISIS
4. Game Business [Upcoming Games] The latest title of the “FINAL FANTASY VII” series, “FINAL FANTASY VII EVER CRISIS”* for smartphones is scheduled for global distribution** in 2022. Development: Applibot, Inc. Planning & Production: SQUARE ENIX CO., LTD. *”FINAL FANTASY VII EVER CRISIS”: © 1997, 20
Slide 35: Media
5. Media Business Media @A CyberAgent. 34
Slide 36: Media Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 19.8 billion yen (grew 1.4x YoY) -3.4 billion yen operating loss in Q2. ABEMA and the related 20.4 businesses performed well. 19.8 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 2Q -0.01 FY2016 FY2017 FY2018 FY20
Slide 37: ABEMA downloads
5. Media Business 65M DL Exceeded 65 million downloads in five years after the launch. Downloads April 2016 Release Apr. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. 2016 2017 2018 2019 2020 2021 36
Slide 38: ABEMA weekly active users
5. Media Business [ABEMA] Weekly active users are in the 12 million range. 14.90 14.56 14.31 14.23 14.03 13.30 13.21 13.25 12.83 12.75 12.69 12.53 12.39 Growth of WAU* 11.98 12.19 11.42 10.70 10.59 10.87 10.27 10.05 10.38 10.77 10.38 10.27 10.34 10M WAU 9.18 9.28 8.55 8.29 8.43 7.29 6.79 6.28 7.32 6
Slide 39: ABEMA original drama Black Cinderella
5. Media Business [ABEMA] “Black Cinderella” is the first original drama of 2021. 38 ©AbemaTV, Inc.
Slide 40: ABEMA NiziU exclusive program
5. Media Business [ABEMA] An ABEMA exclusive program featuring the rising nine-member girl group "NiziU" was broadcast. 39 ©AbemaTV, Inc.
Slide 41: ABEMA YouTuber documentary program
5. Media Business [ABEMA] A documentary program to discover and train the new generation of YouTubers started. 40 ©AbemaTV, Inc.
Slide 42: ABEMA Uma Musume Season 2 broadcast
5. Media Business [ABEMA] The TV anime “Uma Musume Pretty Derby Season 2“* has broadcast in one go**. *TV Anime “UMA MUSUME Pretty Derby Season 2”: 2021 Anime “UMA MUSUME Pretty Derby Season 2” Production Committee was aired on ABEMA, TOKYO MX, Kansai TV, and others. **Broadcast in one go: It had br
Slide 43: Quarterly Sales of ABEMA and Related Businesses
5. Media Business [Quarterly Sales of ABEMA and Related Businesses] 10.4 ABEMA PPV ONLINE LIVE Q2 10.4 billion yen（up 2.2x YoY) 10.3 PPV 7.9 Ads Online Sports Betting “WINTICKET” 4.7 4.5 Subscription 3.9 3.6 3.5 3.2 3.3 Official Shopping Channel “ABEMA Shopping” 2.0 Related 1.6 businesses 1.4 1.1 Bi
Slide 44: WINTICKET transaction volume
5. Media Business [WINTICKET] WINTICKET has increased its transaction volume by about 9.1 times year-on-year through cooperation with "ABEMA" and its own prediction data. Quarterly Transaction Amount* of 31.9 Android app is released on March 29. "WINTICKET" 9.1X 19.2 13.7 New TV commercial is on air
Slide 45: ABEMA 5th anniversary
5. Media Business [ABEMA] ABEMA celebrates its 5th anniversary. Aiming to innovate television, ABEMA will be transformed into a new future of TV. Creators Project Original Content Project Partnership Project ABEMA x TV ASAHI Project Product Update Project 44 ©AbemaTV, Inc.
Slide 46: ABEMA user interface redesign
5. Media Business [ABEMA] The user interface will be redesigned to make the use of TV and video seamless. AbemaTV in 2016 ABEMA in 2020 ABEMA in 2021 New Allow channel-zapping as TV Switch between TV and video Put TV and video on the same screen TV VIDEO *Screen designs are under development and may
Slide 47: 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 46
Slide 48: FY2021
6. FY2021 @A CyberAgent. FY2021
Slide 49: FY2021 priorities by segment
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 48
Slide 50: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 51: 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 52: 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