Slide 1: 3Q FY2024 Presentation Material
@A CyberAgent. 3Q FY2024 Presentation Material 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. Financial Summary (April - June 2024) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Medium to Long-Term Strategy 7. References 2
Slide 4: FY24 Q3 Financial Summary
FY24 Q3 Financial Summary April - June 2024 3
Slide 5: Financial Summary: three key businesses were strong
1. Financial Summary FY2024 Three key businesses were strong. Increase Sales : 190.3 billion yen up 10.9% YoY OP grew 6 times year over year. Q3 Increase OP : 8.5 billion yen up 497.5% YoY It maintained profitability following Increase Sales : 41.0 billion yen up 22.9% YoY Media the previous quarter
Slide 6: Consolidated Sales: 190.3 billion yen (up 10.9% YoY)
1. Financial Summary [Consolidated Sales] 215.1 195.6 190.3 193.0 192.2 191.1 YoY 185.2 179.7 171.7 ＋10.9% 176.2 171.0 172.1 167.5 190.3 billion yen (up 10.9% YoY) 163.4 129.1 131.0 120.8 117.3 113.6111.7115.6 112.8 110.8 Billion Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 7: Consolidated OP: 8.5 billion yen (up 497.5% YoY)
1. Financial Summary [Consolidated OP] 44.5 26.8 Three key businesses were strong. 25.8 25.7 OP grew 6 times year over year. 21.0 19.8 8.5 billion yen (up 497.5% YoY) 18.7 13.2 12.4 10.3 9.4 8.5 YoY 8.6 ＋497.5% 8.2 7.4 7.7 7.0 6.2 5.3 5.3 5.5 1.4 Billion Yen -1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 8: No. of Employees
1. Financial Summary 7,878 [No. of Employees] 11 482 Investment Development 7,390 7,2417,374 7,336 12 10 10 Headquarters 13 432 445 457 416 758 Other 6,682 6,563 13 Game 6,4066,472 13 14 380 762 746 724 713 14 368 7,878 at the end of June. Internet Ad 352 365 Total headcount was Media 5,733 5,815 5,
Slide 9: SG&A Expenses: 40.4 billion yen
1. Financial Summary [SG&A Expenses] 44.3 43.7 44.4 43.2 Other 40.4 40.4 40.4 Research and development expenses 39.8 37.8 10.7 11.2 Office costs Operating costs are controlled appropriately. 37.1 37.1 10.2 11.2 Personnel 34.6 9.3 9.6 10.2 11.1 Advertisement cost 40.4 billion yen (up 1.6% YoY) 28.9 2
Slide 10: PL
1. Financial Summary [PL] FY2024 Q3 FY2023 Q3 YoY FY2024 Q2 QoQ million yen Net Sales 190,379 171,738 10.9% 215,129 -11.5% Gross profit 49,032 41,264 18.8% 65,559 -25.2% SG&A expenses 40,455 39,828 1.6% 44,488 -9.1% Operating income 8,577 1,435 497.5% 21,070 -59.3% Operating margin 4.5% 0.8% 3.7pt 9
Slide 11: BS
1. Financial Summary [BS] End of End of End of YoY QoQ million yen Jun. 2024 Jun. 2023 Mar. 2024 Current assets 360,018 343,857 4.7% 368,366 -2.3% （Cash deposits） 206,055 203,842 1.1% 204,506 0.8% Fixed assets 136,685 120,723 13.2% 131,353 4.1% Total assets 496,756 464,650 6.9% 499,775 -0.6% Current
Slide 12: Forecast
FY2024 Forecast October 2023 - September 2024 11
Slide 13: Progress to Forecast
2. Forecast [Progress to Forecast] We revised the FY2024 earnings forecast upward because of the strong performance of our three key businesses and the contribution from the new successful games. Original Forecast Revised Forecast (Released on Nov.1, 2023) 3Q FYTD Sales 598.5B 750B 790 billion yen Y
Slide 14: FY2024 forecast: sales and OP growth
2. Forecast FY2023 FY2023 ~ ~ We are committed to increasing sales and profits 8,880 4. Growth phase with FY2023 OP as the low point. FY2021 ~ FY2022 FY2021 ~ FY2022 Sales 790 1380 Blilion Yen 3. “Uma Musume Pretty Derby”* The whole company has been united 7,880 became a big hit since the preparatio
Slide 15: Upward Revision
2. Forecast [Upward Revision] FY2024 FY2024 Difference Unit: billion yen Original Forecast Revised Forecast Difference (%) FY2023 YoY (Released on Nov.1, 2023) (Released on Jul.31, 2024) (Amount) Net Sales 750 790 40 5.3% 720.2 9.7% Operating income 30 41 11 36.7% 24.5 67.0% Ordinary income 30 41 11
Slide 16: Internet Advertisement
@A CyberAgent. Internet Advertisement
Slide 17: Internet Ad Quarterly Sales: 112.1 billion yen
3. Internet Advertisement Business 112.1 [Quarterly Sales] YoY 105.4 ＋6.4% 107.3 105.3 104.0 99.5 100.2 Sales hit a new record and grew steadily. 97.0 92.3 95.6 87.8 112.1 billion yen (up 6.4% YoY) 81.8 82.2 80.6 Q3 76.5 72.7 66.6 67.3 64.3 63.3 64.3 64.9 62.2 Billion Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 18: Internet Ad Quarterly OP: 5.9 billion yen
3. Internet Advertisement Business 7.47 [Quarterly OP] 7.23 OP 6.72 OP Margin 5.97 6.19 YoY OP margin improved year over year to 5.70 5.74 5.90 ＋54.2% 5.66 5.3% despite the increase of new 5.66 5.43 graduates. 5.20 5.04 4.99 5.05 5.00 4.91 4.93 4.74 4.50 4.52 5.9 billion yen (up 54.2% YoY) 4.23 3.87
Slide 19: Technological Advantage: generative AI in advertising
3. Internet Advertisement Business [Technological Advantage] Using generative AI to improve productivity in the advertising operation process. Use AI and LLM to promote business development and operational efficiency Ad creative tools with generative AI Japanese language models “Kiwami AI Odaiba Stu
Slide 20: Game
@A CyberAgent. Game 19
Slide 21: Game Quarterly Sales: 38.8 billion yen
4. Game Business [Quarterly Sales] 92.3 76.4 69.0 67.1 63.9 Sales increased year on year driven by the new 62.1 58.3 game “Gakuen iDOLM@STER ” released in May 2024. * 54.8 Q3 38.8 billion yen (up 15.1% YoY) 46.2 44.8 45.0 40.9 42.3 38.8 YoY 39.9 ＋15.1% 39.0 38.2 37.7 36.3 36.7 33.7 35.2 29.9 Billion
Slide 22: Game Quarterly OP: 5.1 billion yen
4. Game Business [Quarterly OP] 44.2 28.1 The continuous release of new games worked well and resulted in significant OP growth. 23.2 21.3 Q3 5.1billion yen (up 5.2billion yen） 18.2 17.1 15.2 12.1 10.4 9.8 8.3 7.4 7.5 7.4 7.0 5.1 YoY 5.1 5.2 ＋5.2 3.4 billion yen 3.1 2.4 Billion Yen -0.1 1.1 1Q 2Q 3Q
Slide 23: Gakuen iDOLM@STER
4. Game Business [Gakuen iDOLM@STER ] The game was released in May 2024 and took first place in *1 *2 the sales ranking. It has been performing well for more than two months after its release and has become a new popular title. Publisher: Bandai Namco Entertainment Inc. Dev and ops: QualiArts Inc. -
Slide 24: Umamusume: Pretty Derby
4. Game Business [Umamusume: Pretty Derby ] *1 The box office has surpassed 1 billion yen in less than a month since the film’s *3 release in May 2024. It aims to be a long-term IP by maintaining topicality. *2 Game Mobile English Ver To be released Released in Movie *2 May 2024 Console *4 Released
Slide 25: Upcoming games
4. Game Business [Upcoming games ] Four new games were released and became successful in FY 2024. *1 “Umamusume: Pretty Derby ” will release its first console game on August 30, 2024. *2 Released Games Upcoming Games To be released on Aug.30 Owned 3. Console-Dec.2023 8. Mobile/PC - Spring 2025 11. C
Slide 26: Upcoming Movie: HATSUNE MIKU: COLORFUL STAGE!
4. Game Business [Upcoming Movie] HATSUNE MIKU: COLORFUL STAGE!, A rhythm & adventure game that has surpassed 39 million downloads is to release its first anime movie. Project SEKAI Movie: The broken world and Miku unable to sing *2 To be released on January 17, 2025 *1: © SEGA / © Colorful Palette
Slide 27: Media
@A CyberAgent. Media 26
Slide 28: Media Quarterly Sales: 41.0 billion yen
5. Media Business 41.0 [Quarterly Sales] 42.7 42.0 YoY ＋22.9% 40.8 33.3 33.4 33.4 ABEMA-related businesses performed well. 30.2 29.5 Q3 41.0 billion yen (up 22.9% YoY) 27.3 24.9 22.6 20.4 19.8 19.9 17.6 13.8 13.3 12.2 Billion Yen 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2020 FY2021
Slide 29: Media Quarterly OP: 0.33 billion yen
5. Media Business [Quarterly OP] OP maintained profitability following the previous quarter. FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Monetization is in progress. 0.3 YoY 0.1 ＋1.8 Billion Yen -0.06 billion yen -0.5 -0.9 Q3 0.33 bi
Slide 30: Sales of ABEMA & Related Businesses
5. Media Business 26.2 26.0 [Sales of ABEMA & Related Businesses] 25.8 YoY PPV ＋ 23.0% 23.5 21.7 21.3 21.1 Ads and ABEMA-related businesses 19.0 19.0 Related remain stable. 16.9 Businesses 15.2 Q3 26.0 billion yen (up 23.0% YoY) 13.3 10.3 10.4 10.5 7.9 Monthly Subscription 4.7 4.5 3.9 Ads Billion Ye
Slide 31: ABEMA weekly active users
5. Media Business [ABEMA] Viewership of popular sports and anime content have been strong. The number of weekly active users exceeded 27 million in June 2024. Growth of WAU*1 27.46 million WAU*2※2 25 million 20 million 15 million 10 million 5 million *1 WAU: Weekly Active Users *2 The number of week
Slide 32: ABEMA partnerships with DAZN, WOWSPO, J SPORTS
5. Media Business [ABEMA] ABEMA partnered with DAZN , WOWSPO , J SPORTS to provide *1 *2 *3 more sports content on ABEMA. Feb.2024 Apr. 2024 May. 2024 ABEMA ABEMA de DAZN *1 ABEMA de WOWSPO *2 ABEMA de J SPORTS *3 MBL Subscription Plan *1 ABEMA de DAZN was launched on February 23, 2024. *2 ABEMA de
Slide 33: Business Overview: expanding around ABEMA
5. Media Business [Business Overview] Expand the businesses around ABEMA to improve monetization. ABEMA ABEMA Related Businesses Ads Public Sports Entertainment/IP Subscription Anime ＆ IP Business Unit Production Entertainment Business Unit PPV Commerce * The sales of BABEL LABEL Inc., Nelke Plannin
Slide 34: Medium to Long-Term Strategy
Medium to Long-Term Strategy 33
Slide 35: Medium to Long-Term Strategy: Media, Ad, Game
6. Medium to Long-Term Strategy Make ABEMA a social infrastructure that can access anytime, Media anywhere. Aim for high profitability by strengthening monetization. Take market share with the capability to maximize Ad advertising effectiveness. Working to commercialize AI and DX related business to
Slide 36: Aim to create a new IP in the CyberAgent group
6. Medium to Long-Term Strategy for Media Business Umamusume: Pretty Derby * achieved huge success by becoming a multimedia franchise. To replicate the success story, we do: Use ABEMA which maintain many weekly active users as a base Acquire companies that create original IPs and develop new busines
Slide 37: NITRO PLUS
6. Medium to Long-Term Strategy for Media Business [NITRO PLUS] The company offers high-quality content in various genres, including games, animation, novels, illustrations, and most notably Touken Ranbu. Animation “Touken Ranbu” *1 Stage “Kamen Rider Animation “STEINS;GATE”*2 Zangetsu: -Gaim Gaiden
Slide 38: MANGA APARTMENT VUY
6. Medium to Long-Term Strategy for Media Business [MANGA APARTMENT VUY] We will provide a designated apartment for people who want to become manga artists with Shihei Lin, a manga editor who supervised many bestsellers such as Chainsaw Man and Spy x Family. The apartment will be renovated by the co
Slide 39: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters 38
Slide 40: Reference
@A CyberAgent. Reference
Slide 41: Reference: Purpose
7. Reference_Purpose @A CyberAgent. @A CyberAgent. | Purpose To break through stagnation with new power and the internet Contribute to the digital shift of all industries. Make ABEMA the television of the future, an easily accessible social infrastructure. Challenge the world with a fusion of techno
Slide 42: Integrated Report CyberAgent Way 2023
Integrated Report CyberAgent Way 2023 In the 2023 edition, we will explain the competitive advantages and growth strategies of our three main businesses through interviews with 11 executive officers: the media business centered around ABEMA, which marked its 7th anniversary, the internet advertising
Slide 43: Copyrights of Game Business
Copyrights of Game Business 1 Tokyo Revengers Pazuribe! The Road to Supremacy : Ken Wakui, Kodansha/ Anime “Tokyo Revengers” Production Committie 2 FINAL FANTASY VII EVER CRISIS :© SQUARE ENIX Powered by Applibot, Inc. Character Design: TETSUYA NOMURA / Character Illustration: LISA FUJISE 3 Granblue