Slide 1: 2Q FY2022 Presentation Material
o Uy ws VV vv @A CyberAgent. ENGLISH 2Q FY2022 Presentation Material (April27,2022 +)
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 2022) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Medium to long-term strategy 2
Slide 4: Quarterly Results
1. Quarterly Results Quarterly Results January - March 2022 3
Slide 5: All three main businesses performed strongly
1. Quarterly Results FY2022 All three main businesses performed strongly. Sales:191.1 billion yen up 16.9% YoY Q2 OP: 25.7 billion yen down 0.6% YoY Revenue from ABEMA and related businesses largely increased, and profitability has improved. Media Sales:27.3 billion yen up 37.9% YoY OP: -1.9 billion
Slide 6: Consolidated Sales 191.1 billion yen
1. Quarterly Results [Consolidated Sales] 191.1 billion yen (up 16.9% YoY) Not only the anniversaries of the game business but the advertising business and the media business performed well. 192.2 191.1 179.7 171.0 163.4 129.1 131.0 120.8 117.3 Billion Yen 113.6 111.7 115.6 109.5 110.8 112.8 107.5 1
Slide 7: Consolidated OP 25.7 billion yen
1. Quarterly Results [Consolidated OP] 25.7 billion yen (down 0.6% YoY) 44.5 26.8 25.8 25.7 19.8 Billion Yen 12.4 11.4 9.8 9.4 8.6 7.9 8.2 8.2 7.4 7.7 6.8 7.0 6.3 6.5 5.3 5.3 3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 6
Slide 8: SG&A Expenses 37.1 billion yen
1. Quarterly Results [SG&A Expenses] 37.1 billion yen Marketing expenses of the game business and Special incentives "WINTICKET“ has increased. Other* 37.1 37.1 Research and development expenses 1.4 34.6 Office costs Personnel 7.7 Advertisement cost 30.6 30.8 29.7 9.4 8.1 28.9 28.9 1.4 1.7 27.3 Bill
Slide 9: No. of Employees
1. Quarterly Results [No. of Employees] Total headcount was 6,267 at the end of March. (349 new graduates joined in April.) Investment Development 6,267 6,171 Headquarters 6,089 13 5,958 12 12 394 Other 12 395 393 5,4935,549 5,535 384 Game 5,433 5,467 12 12 11 5,282 5,215 14 13 743 764 Internet Ad 5
Slide 10: Quarterly Results PL
1. Quarterly Results [PL] million yen FY2022 Q2 FY2021 Q2 YoY FY2022 Q1 QoQ Net Sales 191,102 163,483 16.9% 171,090 11.7% Gross profit 62,885 56,529 11.2% 54,419 15.6% SG&A expenses 37,162 30,655 21.2% 34,615 7.4% Operating profit 25,723 25,874 -0.6% 19,804 29.9% OPM 13.5% 15.8% -2.3pt 11.6% 1.9pt O
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. 2022 Mar. 2021 Dec. 2021 Current assets 303,905 234,873 29.4% 273,381 11.2% Cash deposits 177,567 100,384 76.9% 157,221 12.9% Fixed assets 81,792 65,437 25.0% 80,485 1.6% Total assets 385
Slide 12: FY2022 Forecast
2. FY2022 Forecast FY2022 Forecast October 2021 - September 2022 11
Slide 13: Sales 700 billion yen, OP 70 billion yen
2. FY2022 Forecast 700.0 700 billion yen (up 5.0% YoY) Sales 666.4 OP 70 billion yen (down 32.9% YoY) 104.3 Continue to increase revenues despite a pullback in 478.5 the game business. 453.6 70.0 Aim for stable growth while keep investing in ABEMA. 419.5 371.3 310.6 254.3 36.7 205.2 33.8 32.7 Sales
Slide 14: FY2022 Forecast and dividend
2. FY2022 Forecast [Forecast] FY2022 Unit: billion yen FY2021 YoY Forecast Net Sales 700 666.4 5.0% Operating profit 70 104.3 -32.9% Ordinary profit 70 104.6 -33.1% Net profit* 25 41.5 -39.8% [Dividend forecast*2] Dividend increased to meet the DOE guidance. Dividend 14 yen 11 yen 27.3% * Net profit
Slide 15: Progress to Forecast
2. FY2022 Forecast [Progress to Forecast] Sales 売上高 362.1B 51.7% 700B Operation 営業利益 Profit 45.5B 65.0% 70.0B Ordinary 経常利益 Profit 45.7B 65.3% 70.0B 当期純利益 Net Profit 17.1B 68.6% 25.0B 0% 25% 50% 75% 100% 14
Slide 16: Internet Advertisement
3. Internet Advertisement Business Internet Advertisement 15
Slide 17: Internet Ad Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q2 97.0 billion yen (up 20.3% YoY) Achieved record sales by pursuing to maximize 97.0 the advertising effectiveness. 87.8 81.8 82.2 80.6 76.5 72.7 66.6 67.3 Billion Yen 64.3 64.3 64.9 62.2 63.3 61.4 61.3 60.2 57.6 55.6 52.5 51.0 48.6 1Q 2Q 3Q 4Q 1
Slide 18: Internet Ad Quarterly OP
3. Internet Advertisement Business [Quarterly OP] OP was 7.47 billion yen, achieved a new record. OPM 7.7% Continue to invest in AI and DX. 7.47 7.23 OP 6.72 OP Margin 6.37 Billion Yen 5.66 5.70 5.74 5.52 5.43 5.13 5.20 5.04 4.99 4.91 4.69 4.74 4.58 4.52 4.44 4.24 4.23 3.96 9.6% 10.4% 9.4% 9.8% 9.2%
Slide 19: Focus Area: Expand the DX business
3. Internet Advertisement Business [Focus Area] Expand the DX business in collaboration with the retail, distribution companies and others. ANA X INC. New YAMADA DENKI Co., Ltd. NTT Communications Corporation “Next-generation Smart Support to develop the advertising “Yamada Digital Ads” Advertising
Slide 20: Competitive advantages
3. Internet Advertisement Business [Competitive advantages] Enhance the technical capability in addition to the operational capability to aim for maximizing advertising effectiveness. Technical Capability AI －KIWAMI Series Creative Field Digital Twin Label LED STUDIO FUTURE EVENT CG・Conversasional A
Slide 21: Game
4. Game Business Game @A CyberAgent. 20
Slide 22: Game Quarterly Sales
4. Game Business [Quarterly Sales] Q2 69.0 billion yen (up 7.9% YoY) Sales driven by the anniversaries of “Uma Musume Pretty Derby*,” and “Granblue Fantasy*.” 92.3 76.4 69.0 63.9 58.3 Billion Yen 44.8 40.4 39.9 39.0 36.8 38.2 37.7 35.8 36.3 35.5 36.3 36.7 34.6 35.2 33.4 33.7 29.9 １Q 2Q 3Q 4Q 1Q 2Q 3
Slide 23: Game Quarterly OP
4. Game Business [Quarterly OP] 21.3 billion yen (down 7.8% YoY) 44.2 28.1 23.2 21.3 17.1 Billion Yen 10.4 8.5 8.3 7.9 7.5 7.4 7.0 7.4 6.4 6.8 6.7 5.2 5.6 5.1 4.3 3.1 1.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 *Quarterly OP : Speci
Slide 24: Uma Musume Pretty Derby anniversary campaign
4. Game Business [Uma Musume Pretty Derby*] The first anniversary campaign consisted of Apr.1 four phases. The number of characters*2 14M increased to 80 from 25 since the beginning. Sep.20 12M Number of downloads Sep.20 10M The first anniversary campaign ran from Feb.14 to Mar. 30, 2022. Jun.10 8M
Slide 25: Uma Musume new TV commercials
4. Game Business [Uma Musume Pretty Derby*] A series of new TV commercials are now on air since April 10, 2022. 4/1 1,400万 3/10 200万 *Uma Musume Pretty Derby: © Cygames, Inc. 24
Slide 26: Upcoming Games
4. Game Business [Upcoming Games] A new game title has released in February. Three popular IP titles are expected to be released in 2022. “Dream Meister and the Recollected Black Fairy”* RPG “FINAL FANTASY VII EVER CRISIS”*2 RPG GCREST, Inc. Released SQUARE ENIX CO., LTD. / Applibot, Inc. To be rele
Slide 27: Media
5. Media Business Media @A CyberAgent. 26
Slide 28: Media Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 27.3 billion yen (up 37.9% YoY) -1.9 billion yen operating loss in Q2. ABEMA and related businesses Profitability has improved by increasing performed well. 27.3 sales. 24.9 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 29: Exceeded 78 million downloads
5. Media Business 78M DL Exceeded 78 million downloads in six years after the launch. Downloads April 11 2016 Release Apr. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. 2016 2017 2018 2019 2020 2021 2022 28
Slide 30: ABEMA rankings: anime and reality shows
5. Media Business [ABEMA] Anime and new dating reality shows are being popular. FY2022 Q2 FY2022 Q2 Top 3 News Ranking Top 10 Ranking [Breaking] M7.3 Quake in TV anime Demon Slayer: Kimetsu no Yaiba Miyagi, Fukushima Red light District Season [Breaking] Tonga volcano eruption – TSUNAMI Warning [LIVE
Slide 31: ABEMA weekly active users
5. Media Business [ABEMA] Weekly active users (WAU) continue to be high after the lifting of semi-emergency coronavirus measures. 18.25 Growth of WAU* 15.46 15.14 14.90 14.89 14.56 14.49 14.69 14.23 14.03 13.93 13.97 13.64 13.30 13.21 13.89 13.09 12.83 13.15 13.31 12.69 12.75 12.39 11.98 12.19 12.25
Slide 32: ABEMA broadcasts MLB games
5. Media Business [ABEMA] ABEMA broadcast all 324 official Major League Baseball (MLB) games live with Japanese play-by-play comment. The number of viewership are off to a good start and increased by 1.7x compared to the last season*. *Last season: broadcast from July 2021~ ©AbemaTV, Inc. 31
Slide 33: ABEMA PPV fights
5. Media Business [ABEMA] Upcoming fights of Tenshin Nasukawa vs Takeru and others will be fully covered on ABEMA PPV ONLINE LIVE. ©AbemaTV, Inc. 32
Slide 34: ABEMA button on Amazon Fire TV remote
5. Media Business [ABEMA] “ABEMA button” is now available on the remote control of Amazon Fire TV series*. Users can watch live sports of ABEMA on their big screen TVs. Many TVs with the "ABEMA button" on the remote control are on the market. ABEMA is now available on almost all the TVs. Apple TV is
Slide 35: ABEMA FIFA World Cup Qatar 2022
5. Media Business [ABEMA] ABEMA will broadcast all 64 matches of the "FIFA World Cup Qatar 2022" live and free of charge. ©AbemaTV, Inc. 34
Slide 36: ABEMA World Cup viewing experience
5. Media Business [ABEMA] ABEMA will provide a unique experience to everybody who watch the FIFA World Cup in Japan. Original Content World Cup for everybody, whenever and wherever Original High-quality Stable Multi-angle Content Video Streaming Video of Past On-demand Comment Highlights Time-shift
Slide 37: Sales of ABEMA & Related Businesses
5. Media Business [Sales of ABEMA & Related Businesses (Quarterly)] 16.9 “ABEMA PPV ONLINE LIVE” Q2 16.9 billion yen (up 1.6X YoY) PPV 15.2 13.3 Related 10.310.410.5 Businesses Online Sports Betting “WINTICKET” 7.9 Monthly Subscription 4.7 4.5 Official Shopping Channel of ABEMA 3.9 3.6 3.5 3.2 3.3 2
Slide 38: WINTICKET transaction amount
5. Media Business [WINTICKET] The transaction amount is accelerated and increased by 2.1x year over year. Quarterly Transaction Amount* 67.9 679 52.8 528 44.6 446 39.3 393 31.9 319 Keirin derby campaign 192 19.2 137 13.7 Billion Yen 72 7.2 35 3.5 0.4 4 0.8 8 1.7 17 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 39: WINTICKET market share in growing market
5. Media Business [WINTICKET] Rapidly expanding the market share in the growing market. Keirin Online Betting Market* 19％ 31％ 2021 2022 Jan. to Mar. Jan. to Mar. 161 billion yen 205 billion yen The market grew 1.3X *Keirin Online Betting Market: January-March 2021 and January-March 2022 are taken fr
Slide 40: ABEMA Medium and Long-Term Sales Pipeline
5. Media Business [ABEMA] Medium and Long-Term Sales Pipeline Accelerate monetization by related businesses etc. while increasing advertising and subscription revenues. Related Business etc. Subscription Advertising 39
Slide 41: Medium to Long-Term Strategy
6. Medium to Long-Term Strategy Medium to Long-Term Strategy 40
Slide 42: Directions of each business
6. Medium to Long-Term Strategy [Directions of each business] Media Grow ABEMA larger and increase monetization Aim to increase the market share by Ad maximizing advertising effectiveness. Game Make successful games and enhance the operational capability to run long term games 41
Slide 43: Operating Profit in Medium to long-term (Image)
6. Medium to Long-Term Strategy [Operating Profit in Medium to long-term (Image)] Accumulate profit through Ad Business and Game Business, invest in Media Business to grow as a pillar for the medium to long-term. 42
Slide 44: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 45: Integrated Report CyberAgent Way 2021
Integrated Report CyberAgent Way 2021 The theme of the Integrated Report for fiscal 2021 is the Purpose set in October 2021, “To break through stagnation with new power and the internet.” It covers a variety of measures that support our sustainable growth, including competitive advantage and ESG inf