Cover Corporation · TSE:5253
Cover — Q1 FY2027/3 Earnings Presentation
33 slides from Cover's earnings presentation, Aug 12, 2026
Slide 1: Presentation Materials for FY2027/3 Q1
Presentation Materials for FY2027/3 Q1 August 12, 2026
Slide 2: Together, Let's Create Culture Loved by All.
Together, Let's Create Culture Loved by All. We are continuing to build a platform to bring together unique and diverse content creators. With the latest technology, users are exposed to new, exciting, high-quality experiences every single day. We bring about the best 2D entertainment loved by all,
Slide 3: Financial Results for FY2027/3 Q1
01 Financial Results for FY2027/3 Q1
Slide 4: Q1 Results for FY2027/3 and Future Management Policies
Q1 Results for FY2027/3 and Future Management Policies In FY2027/3 Q1, results are as follows; revenue 8,825 million yen (-8.3% YoY), gross profit 4,493 million yen (-8.4% YoY), contribution margin 3,956 million yen (-4.7% YoY), operating profit 651 million yen (-33.0% YoY), and net profit 415 mil
Slide 5: Financial Highlights | Summary for FY2027/3 Q1
Financial Highlights ｜ Summary for FY2027/3 Q1 Unit: MM JPY First-half Earnings In Q1, the Concerts/Events and Licensing/Collaborations services FY2026/3 Q1 FY2027/3 Q1 YoY Forecast supported earnings, offsetting the impact of graduated talents (Progress rate) compared to the prior fiscal year 22,27
Slide 6: Historical Trends in Revenue and Gross Profit
Historical Trends in Revenue and Gross Profit Streaming and EC sales entered a short-term adjustment phase, reflecting the lapse of revenue contributions from talents who graduated compared to prior fiscal years While revenue decreased, the gross profit margin remained at the same level as the s
Slide 7: Historical Trends in Cost of Sales and SG&A Expenses
Historical Trends in Cost of Sales and SG&A Expenses In cost of sales, manufacturing cost levels improved, due to the absence of the inventory clearance recorded in Q4 In SG&A expense, while personnel and office facility expenses increased due to headcount growth and price inflation, total SG&A
Slide 8: Historical Trends in Contribution Margin and Operating Profit
Historical Trends in Contribution Margin and Operating Profit Driven by growth in the highly profitable Licensing segment and other factors, the contribution ratio improved by +1.7pt YoY to 44.8% While the operating profit margin declined due to the impact of fixed-cost investments (such as pers
Slide 9: Current Status of Business Development by Service
02 Current Status of Business Development by Service
Slide 10: Business Development by Service | Streaming/Content
Business Development by Service ｜ Streaming/Content Against the backdrop of changes in the talent lineup and community environment, streaming-related metrics—primarily centered on short-form videos—showed a softening trend. However, the progress of diverse streaming activities by affiliated talent
Slide 11: Business Development by Service | Concerts/Events
Business Development by Service ｜ Concerts/Events While the number of events held during Q1 is typically lower due to the concentration of large-scale events in Q4, performance expanded YoY in the current fiscal year through the execution of multiple large-scale offline initiatives leveraging the
Slide 12: Business Development by Service | Merchandising
Business Development by Service｜ Merchandising Commenced operations of the official Harajuku store, driving the maximization of omni-channel Gross Merchandise Value (GMV) EC sales entered an adjustment phase due to the lapse of product sales related to graduated talents, as well as differences i
Slide 13: Business Development by Service | Licensing/Collaborations
Business Development by Service ｜ Licensing/Collaborations Advanced nationwide exposure through collaboration projects with major domestic clients. Drove revenue growth through the expansion of business with overseas clients, centered on North America and East Asia Historical Trends in Licensing
Slide 14: Current Status of Strengthening Growth and Structural Reforms of Management Foundations
03 Current Status of Strengthening Growth and Structural Reforms of Management Foundations
Slide 15: Progress of Priority Initiatives for Strengthening Growth Foundations and Structural Reforms
Progress of Priority Initiatives for Strengthening Growth Foundations and Structural Reforms Positioning the current period as an investment phase aimed at strengthening the medium-to-long-term growth foundation, while steadily advancing disciplined investments and structural reforms Priority Stra
Slide 16: Launch of New Trainee Project
Launch of New Trainee Project Launched "mekPark," a next-generation talent development project Aim to build a sustainable talent portfolio by establishing a pipeline to continuously generate talents through unit- based development and evaluation Activity Start Date: May 22, 2026 Activity Sta
Slide 17: Business Expansion of Trading Card Game (TCG)
Business Expansion of Trading Card Game (TCG) Nurture the TCG as a major business foundation and physical fan touchpoint, developing media-mix initiatives linked with continuous new product releases, streaming projects, merchandise, tie-ups, and other channels Promote its position as a medium-to
Slide 18: Official Service Launch of Smartphone Game "hololive Dreams"
Official Service Launch of Smartphone Game "hololive Dreams" Simultaneously released worldwide on July 23 after surpassing 1.6 million pre-registrations Related performance is already trending ahead of initial projections, confirming the successful launch of the gaming domain as a highly sustain
Slide 19: Appendix
[> coveR Appendix
Slide 20: Growth Roadmap and Current Position Toward Maximizing Corporate Value over the Medium to Long Term
Growth Roadmap and Current Position Toward Maximizing Corporate Value over the Medium to Long Term In our growth strategy, we are currently positioned in an investment period focused on our growth foundations, aimed at achieving mid- to long-term revenue expansion Brand Expansion Phase Investment
Slide 21: Flywheel Business Model Rooted in Talent Value Creation
Flywheel Business Model Rooted in Talent Value Creation Our value creation foundation is built upon a flywheel business model with talent value creation at its core To maximize growth, it is essential to strengthen this foundation, focusing particularly on the creation of talent value Strengthen
Slide 22: Outlook for Intensive Capital Investment in Talent Value Creation and Profit Targets
Outlook for Intensive Capital Investment in Talent Value Creation and Profit Targets for the Current Fiscal Year Breakdown of Earning Forecast for FY2027/3 (Profit Bridge) Optimization of Asset-Related Costs (Inventory, etc.) Associated with Structural Reforms and Business Growth • Absence of one-ti
Slide 23: Medium-term Management Target and Capital Allocation Framework
Medium-term Management Target and Capital Allocation Framework No significant changes to the financial goals and vision for 2030 Continuing to aim for sustainable growth with the goal of establishing a global creator economy Maintaining Target Continuing growth accompanied by multifaceted busi
Slide 24: Medium-term Targets (to FY2030/3)
Medium-term Targets (to FY2030/3) Our medium-term management targets are to achieve revenue of 100 billion yen and operating profit of 25 billion yen or more in FY2030/3 Illustrative Growth Trajectory Unit: MM JPY Revenue and Gross Profit Revenue 100,000~ Operating profit Increase business scale
Slide 25: Multi-faceted entertainment development that expands the potential of VTubers
Multi-faceted entertainment development that expands the potential of VTubers Building strong bonds with fans and cultivating a passionate community through daily streaming and live events Extending talent personalities and world-views from the virtual to the physical world, adding color to fans
Slide 26: Overview of Service Mix and Product Mix
Overview of Service Mix and Product Mix % of Revenue by Service Segment Quarterly Sales Ratio of Each Product Streaming/Content Merchandising Made-to-order anniversary Other in-house planned Other in-house planned Concerts/Events Licensing/Collaborations goods (EC) goods (retail) goods(EC) 100% 13.1
Slide 27: Organizational Structure
Organizational Structure COVER boasts an industry-leading and diverse workforce with a large number of specialized employees Company Structure * (as of June 30, 2026) Production Management Concerts/Events, Media Mix Creative, Technology Development Back Office 28% 34% 25% 13% Streaming Application &
Slide 28: Historical Trends in Employees
Historical Trends in Employees 738 740 743 741 740 679 652 602 570 509 480 492 455 409 392 373 376 300 262 215 170 132 110 93 75 51 36 48 22 2 2 2 2 2 2 2 3 3 4 9 13 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 2016 2017 2018 2019 2020 2021 2022 2023 20
Slide 29: Reference (# of ch subs., # of VTubers, revenue and operating profit by service)
Reference (# of ch subs., # of VTubers, revenue and operating profit by service) FY2023/3 FY2024/3 FY2025/3 FY2026/3 FY2027/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Total # of YouTube 6,525 7,002 7,238 7,558 7,782 8,319 8,625 8,841 9,225 9,362 9,599 9,715 9,287 9,478 9,394 9,502 9,525 ch
Slide 30: PL Summary
PL Summary MM JPY FY2023/3 FY2024/3 FY2025/3 FY2026/3 FY2027/3 Q1 Total Revenue 20,451 30,166 43,401 49,330 8,825 YoY Growth +49% +48% +44% +13.7% -8.3% Gross Profit 9,396 13,988 21,805 23,507 4,493 Margin 45% 46% 50% 48% 51% Operating Profit 3,417 5,536 8,001 7,056 651 Margin 16% 18% 18% 14% 7% Net
Slide 31: BS Summary
BS Summary MM JPY FY2023/3 FY2024/3 FY2025/3 FY2026/3 FY2027/3 Q1 Total Current Assets 11,740 14,798 22,872 25,108 17,918 Cash and Cash Equivalents 7,793 8,666 11,498 16,008 11,879 Total Fixed Assets 4,146 7,914 10,187 9,799 10,170 Total Assets 15,887 22,713 33,060 34,908 28,088 Total Liabilities 8,
Slide 32: Handling of these Materials
Handling of these Materials This material has been prepared by COVER Corporation (the “Company”) solely for information purpose only, and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in the United States, Japan or any other jurisdictions. An
Slide 33: Together, Let's Create Culture Loved by All.
Together, Let's Create Culture Loved by All. https://cover-corp.com/en