Slide 1: 3Q FY2023 Presentation Material
{ ENGLISH pe @A CyberAgent. 3Q FY2023 Presentation Material April to June 2023 C July 26, 2023 +)
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. Financial Summary (April - June 2023) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Medium to long-term strategy 7. References - Purpose 2
Slide 4: FY23 Q3 Financial Summary
1. Financial Summary FY23 Q3 Financial Summary April - June 2023 3
Slide 5: Financial Summary: Media, Ad, Game
1. Financial Summary Media and Ads increased the sales. FY2023 However, Game business earnings were lower than expected and thus profits dropped significantly. Q3 Sales: 171.7 billion yen down 0.2% YoY OP: 1.4 billion yen down 86.2% YoY ABEMA related sales went well and improved the loss. Media Sale
Slide 6: Consolidated Sales 171.7 billion yen
1. Financial Summary [Consolidated Sales] 171.7 billion yen (down 0.2% YoY) 192.2 195.6 191.1 179.7 176.2 171.0 172.1 171.7 167.5 163.4 129.1 131.0 Billion Yen 120.8 117.3 115.6 113.6 111.7 109.5 110.8 112.8 107.5 104.4 97.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2018
Slide 7: Consolidated OP 1.4 billion yen
1. Financial Summary [Consolidated OP] 1.4 billion yen (down 86.2% YoY) Game business which has high profitability slowed down significantly. 44.5 26.8 25.8 25.7 19.8 18.7 Billion Yen 13.2 12.4 11.4 10.3 9.4 8.6 8.2 8.2 7.4 7.7 6.8 7.0 5.3 5.3 3.6 1.4 -1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3
Slide 8: SG&A Expenses 39.8 billion yen
1. Financial Summary [SG&A Expenses] 39.8 billion yen (up 5.2% YoY) 43.2 Special incentives Other* 40.4 40.4 39.8 Research and development expenses 37.8 37.1 37.1 10.2 Office costs 1.4 34.6 Personnel 9.3 9.6 10.2 Advertisement cost 7.7 8.5 30.6 30.8 2.2 29.7 9.4 8.1 28.9 28.9 2.0 2.2 Billion Yen 1.4
Slide 9: No. of Employees
1. Financial Summary [No. of Employees] Total headcount was 7,241 at the end of June. (431 new graduates joined in April.) 7,241 13 Investment Development 416 6,682 Headquarters 6,472 6,563 13 6,406 13 14 380 14 762 Other 365 368 352 5,911 Game 5,7335,815 13 730 5,595 12 12 394 748 Internet Ad * 798
Slide 10: Financial Summary: PL
1. Financial Summary [PL] million yen FY2023 Q3 FY2022 Q3 YoY FY2023 Q2 QoQ Net Sales 171,738 172,155 -0.2% 195,657 -12.2% Gross profit 41,264 48,227 -14.4% 62,004 -33.4% SG&A expenses 39,828 37,855 5.2% 43,218 -7.8% Operating profit 1,435 10,371 -86.2% 18,786 -92.4% OPM 0.8% 6.0% -5.2pt 9.6% -8.8pt
Slide 11: Financial Summary: BS
1. Financial Summary [BS] End of End of End of million yen YoY QoQ June. 2023 June. 2022 Mar. 2023 Current assets 343,857 286,447 20.0% 329,795 4.3% Cash deposits 203,842 167,264 21.9% 183,260 11.2% Fixed assets 120,723 88,220 36.8% 98,943 22.0% Total assets 464,650 374,695 24.0% 428,812 8.4% Curren
Slide 12: Forecast FY2023
2. Forecast FY2023 Forecast October 2022 - September 2023 11
Slide 13: Details of Downward Revision FY2023
2. Forecast [Details of Downward Revision FY2023] Game business earnings decreased more than expected after the strong performance led by the anniversary events in the previous quarter. Revenue slowdown in high profitability games resulted in a downward revision of items below operating profit. FY20
Slide 14: Medium to Long Term Plan
2. Forecast [Medium to Long Term Plan] After the hard-to-predict megahit, we are 4. Growth phase “Uma Musume Pretty Derby”*1 stepped into a committed to increasing full year earnings from stability phase after momentum lasted two years. FY2024 onward with 25 billion yen OP of 8,880 FY2023 as the bot
Slide 15: How we achieve earnings growth
2. Forecast [How we achieve earnings growth ] Media Ad Game Game business preparing ABEMA entered a loss Ad business will many approaches to keep “Uma Musume Pretty Derby“s reduction phase after continue to grow in topicality. *1 investment phase. medium to long-term . TV anime ”Uma Musume Pretty De
Slide 16: Progress toward the forecast after revision
2. Forecast [Progress toward the forecast after revision] Progress rate Sales 534.9B 74% 720B Progress rate Operating profit 18.9B 76% 25B Progress rate Ordinary profit 19.4B 78% 25B Progress rate Net profit* 3.6B 60% 6B 0% 25% 50% 75% 100% *Net profit: Profit attributable to shareholders of parent
Slide 17: Internet Advertisement Business
3. Internet Advertisement Business Internet Advertisement 16
Slide 18: Internet Advertisement Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q3 105.4 billion yen (up 9.1% YoY) 105.4 99.5 Sales reached a new record high. 97.0 100.2 95.6 92.3 87.8 82.2 80.6 81.8 76.5 72.7 Billion Yen 66.6 67.3 64.3 63.3 64.3 64.9 61.4 62.2 60.2 61.3 57.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 19: Internet Advertisement Quarterly OP
3. Internet Advertisement Business [Quarterly OP] Q3 3.8 billion yen (down 37.4% YoY) We continue to invest in AI and DX businesses. OP 166 new graduates joined in April. 7.47 7.23 OP Margin 6.72 6.37 6.19 Billion Yen 5.66 5.70 5.74 5.52 5.43 5.20 5.04 4.99 5.05 5.00 4.91 4.93 4.69 4.74 4.52 4.24 4.
Slide 20: CyberAgent Released Japanese LLM
3. Internet Advertisement Business [Technological Capability] We released a Japanese large language model (LLM) using generative AI to the public early on and began to use it in business. CyberAgent Released Japanese LLM with up to 6.8 Billion Parameters The Model Trained with Open Data | Commercial
Slide 21: Game Business
4. Game Business Game @A CyberAgent. 20
Slide 22: Game Quarterly Sales
4. Game Business [Quarterly Sales] Q3 33.7 billion yen (down 27.0% YoY) Sales decreased after major games’ anniversaries in Q2. 92.3 76.4 69.0 63.9 62.1 58.3 54.8 Billion Yen 46.2 44.8 39.9 40.9 38.2 39.0 37.7 36.7 36.3 35.2 33.7 29.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q １Q 2Q 3Q 4Q １Q 2Q 3Q 4Q １Q 2Q 3Q FY2019 F
Slide 23: Game Quarterly OP
4. Game Business [Quarterly OP] Q3 -0.1 billion yen Profits fell significantly due to revenue slowdown in high profitability games. 44.2 28.1 23.2 21.3 17.1 15.2 Billion Yen 12.1 10.4 9.8 8.3 7.4 7.5 7.4 7.0 5.1 5.2 3.1 1.1 -0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2019 FY2020
Slide 24: Uma Musume Pretty Derby cross-media marketing
4. Game Business [Uma Musume Pretty Derby *1] It will continue cross-media marketing to become an IP which will last more than ten years. Puzzle Anime “Uma Musume Pretty Derby: TV Anime “Uma Musume Pretty Derby Season Road to the Top” *2 3” *3 Comic “Uma Musume Pretty Derby: Event “Uma Musume Pretty
Slide 25: Uma Musume Party Dash release
4. Game Business [Uma Musume Pretty Derby *1] “Umamusume: Pretty Derby – Party Dash” will be releasing on Nintendo Switch™, Puzzle PlayStation®4, and Steam® in 2024.*2 Released in December 2022 RPG RPG CBT*4 planned in summer 2023 *1.2 Uma Musume Pretty Derby: © Cygames, Inc. 24
Slide 26: Upcoming Games: FINAL FANTASY VII EVER CRISIS
4. Game Business [Upcoming Games] “FINAL FANTASY VII EVER CRISIS *1” finished the closed beta test and pre-registration RPG has started. It will be releasing by the end of year. *1”FINAL FANTASY VII EVER CRISIS”: © SQUARE ENIX Powered by Applibot, Inc. CHARACTER DESIGN: TETSUYA NOMURA / CHARACTER IL
Slide 27: Upcoming Games: Jujutsu Kaisen Phantom Parade
4. Game Business [Upcoming Games] “Jujutsu Kaisen Phantom Parade*1” is open for pre-registration. It will also be releasing RPG by the end of year. *1”Jujutsu Kaisen Phantom Parade”: © Gege Akutami/ Shueisha, Jujutsu Kaisen Production Committee © Sumzap, Inc./TOHO CO., LTD. 26
Slide 28: Upcoming Games
4. Game Business [Upcoming Games] Some highly anticipated games will be coming in 2023 onward. Owned IP 1 2 5 7 9 Sengoku Embu Granblue Shadowverse PRINCESS UMA MUSUME -KIZNA- Fantasy CONNECT! Pretty Derby Re:Dive Third Party IP Upcoming Games 3 4 6 8 10 11 12 13 14 confidential Dragon Quest THE iDO
Slide 29: Media Business
5. Media Business Media @A CyberAgent. 28
Slide 30: Media Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 33.3 billion yen (up 13.1% YoY) 1.5 billion yen operating loss in Q3. Sales related to ABEMA went well. 2.4 billion yen loss is reduced year over year. 33.3 33.4 33.4 FY2019 FY2020 FY2021 FY2022 FY2023 30.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 31: Sales of ABEMA & Related Businesses
5. Media Business [Sales of ABEMA & Related Businesses] Q3 21.1 billion yen (up 11.1% YoY) 21.7 21.3 21.1 PPV ABEMA related businesses were steady. 19.0 19.0 16.9 15.2 Related Businesses 13.3 10.3 10.4 10.5 Billion Yen 7.9 Monthly Subscription 4.7 4.5 3.9 3.6 3.5 3.2 3.3 Ads 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 32: ABEMA Growth of WAU
5. Media Business [ABEMA] -34.09 Growth of WAU* 20.71 20.16 19.8 WAU exceeded 20.71 million in May and 19.19 18.96 18.81 18.45 18.57 18.46 stayed high, reaching 20.16 in July. 18.25 17.66 17.09 17.21 16.64 16.3 17.01 16.79 14.90 15.05 14.89 14.83 14.56 14.49 15.14 14.23 13.93 13.30 13.21 13.31 12.83
Slide 33: ABEMA partners with KDDI
5. Media Business [ABEMA] ABEMA partners with KDDI to collaborate in sports content acquisition and production, and also strengthen marketing by linking data. * Announced in June 2023. ©AbemaTV, Inc. 32
Slide 34: ABEMA sports and anime content
5. Media Business [ABEMA] ABEMA continues to focus on sports and anime content. Tour de France 2023 *1 Mynavi ALL-STAR GAME 2023 *2 ABEMA SPORTS TME *3 World Aquatics Championships - Fukuoka 2023*4 SUPER FORMULA 2023 *5 ABEMA Shogi Tournament *6 ライブならではの臨場感 I Got a Cheat Skill in Another World and O
Slide 35: WINTICKET transaction amount
5. Media Business [ABEMA Related Businesses] WINTICKET’s transaction amount remains strong and grew 1.3 times year over year. Quarterly Transaction Amount*1 Keirin Online Betting Market*2 96.8 92.2 88.9 73.5 77.9 2023 42% Apr. to Jun. 67.9 ¥221.7B 52.8 44.6 39.3 31.9 Billion yen 19.2 13.7 2022 34% 7
Slide 36: ABEMA dating reality show on Netflix
5. Media Business [ABEMA Related Businesses] New seasons of ABEMA’s hit dating reality show “Is she the Wolf?” is available on Netflix since June 11. ©AbemaTV, Inc. 35
Slide 37: Nelke Planning joined CyberAgent group
5. Media Business [ABEMA Related Businesses] Nelke Planning Co., Ltd, a leading anime musical production company joined CyberAgent group. Musical “The Prince of Tennis” Live Spectacle NARUTO “Promise of Wizard HYPNOSISMIC Touken Ranbu: The Musical MANKAI STAGE[A3!] ACT2! 6th season Seigaku vs. Rokka
Slide 38: Increase ABEMA advertising revenue and strengthen related businesses
5. Media Business [ABEMA] Increase advertising revenue of ABEMA and strengthen the related businesses such as WINTICKET and content business. Related Businesses Subscription PPV Advertising 37
Slide 39: Medium to Long-Term Strategy
6. Medium to Long-Term Strategy Medium to Long-Term Strategy 38
Slide 40: Medium to Long Term Plan
6. Medium to Long-Term Strategy [Medium to Long Term Plan] With 25 billion yen OP in FY2023 as the bottom, we are committed to increasing full year earnings from FY2024 onward. 4. Growth phase 3.③ “Uma 「ウマ娘 Musume Pretty プリティ-ダービー 」 ※1 Sales Derby”*1 の大ヒット became a big hit OP 1. Growth phase 2. ABEM
Slide 41: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 42: Reference
7. Reference @A CyberAgent. Reference
Slide 43: Reference - Purpose
7. Reference - Purpose CyberAgent had defined a new "Purpose" that clearly states the significance of its existence. 42
Slide 44: Integrated Report CyberAgent Way 2022
Integrated Report CyberAgent Way 2022 The 2022 Integrated Report features our talent management frameworks to realize sustainable growth with soaring attention by society. It introduces our four focus areas: hiring, developing human resources, energizing the organization, and placing the right perso
Slide 45: Copyrights
Copyrights of Game Business 1 : ©Sumzap, Inc. All rights Reserved. 2 : ©Cygames, Inc. 3 : © 2014-2023 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. Developed by Cygames, Inc. Publisher: SQUARE ENIX 4 : THE IDOLM@STER & ©BANDAI NAMCO Entertainment Inc. Jointly developed and is operating