Cyberagent Incorporated · TSE:4751
Cyberagent — Q2 FY2006 Earnings Presentation
50 slides from Cyberagent's earnings presentation, April 2006
Slide 1: Results Briefing for the Second Quarter of the Year Ending September 2006
CyberAgent, Inc. Results Briefing for the Second Quarter of the Year Ending September 2006 (January – March 2006) http://www.cyberagent.co.jp/ Tok y o S toc k Ex c ha nge M othe rs: 4751
Slide 2: Table of Contents
Table of Contents Overview of Consolidated Financial Results Business Model Media Business Advertising Agency Business Investment Development Business Medium- to Long-Term Outlook Reference Material (1) Reference Material (2) 1
Slide 3: Overview of Consolidated Financial Results
Overview of Consolidated Financial Results Overview of Second Quarter Consolidated Financial Results January – March 2006 2
Slide 4: Consolidated Net Sales
Overview of Consolidated Financial Results Consolidated Net Sales No sale of operational investment securities in investment development business during the second quarter. Unit: million yen 15,000 13,857 13,275 Increased 37.0% 13,213 12,000 11,360 10,118 9,000 8,582 7,873 7,103 6,334 6,000 5,416 3,
Slide 5: Operating Income
Overview of Consolidated Financial Results Operating Income Profitable businesses such as media and advertising agency business steadily increased their profits. Unit: million yen 1,200 1,200 1,077 1,108 1,500 0.4 Investment Development Business 249 Investment Development Business 1,107 800 828 800
Slide 6: Consolidated Net Sales and Gross Margin Rate
Overview of Consolidated Financial Results Consolidated Net Sales and Gross Margin Rate Net sales developed steadily. Factors pertaining to the decrease of the gross margin Rate: No sale of operational investment securities in investment development business -1.9 points. Ameba Headquarters -0.4 poin
Slide 7: Consolidated SG&A
Overview of Consolidated Financial Results Consolidated SG&A Unit: % Unit: million yen 60.0 5,000 4,622 4,309 4,479 4,090 4,000 3,695 50.0 3,292 2,875 3,000 2,558 42.9 2,266 2,026 1,662 1,834 2,000 1,707 40.0 38.4 39.8 38.7 36.5 36.0 37.4 1,000 35.8 36.0 36.5 34.8 32.3 32.6 30.0 0 03/ 03/ 03/ 03/ 04
Slide 8: Number of Employees in Consolidated Companies
Overview of Consolidated Financial Results Number of Employees in Consolidated Companies Quarter-to-quarter, the number of employees increased by 23; 15 increased in the Media Business, 11 increased in the Advertising Agency Business. Unit: People 1,500 Others 1,228 1,212 1,235 1,200 1,171 5% Admini
Slide 9: Q2, Year to Sep. 2006: PL (Year-on-Year)
Overview of Consolidated Financial Results Q2, Year to Sep. 2006: PL (Year-on-Year) Unit : million yen Jan-Mar 2006 Jan-Mar 2005 Change Net sales 13,857 10,118 37.0% Gross income from sales 5,092 4,201 21.2% Gross margin 36.7 % 41.5% -4.8points SG&A 4,479 3,695 21.2% SG&A ratio 32.3 % 36.5% -4.2poin
Slide 10: Q2, Year to Sep. 2006: BS (over the previous quarter)
Overview of Consolidated Financial Results Q2, Year to Sep. 2006: BS (over the previous quarter) Unit : million yen End of Mar 2006 End of Dec 2005 Change Current Assets 34,327 26,337 30.3 % (cash + marketable securities, etc.) 18,208 13,336 36.5 % Fixed Assets 9,112 9,101 0.1 % Total Assets 43,439
Slide 11: Q2, Year to Sep. 2006: CF (over the previous quarter)
Overview of Consolidated Financial Results Q2, Year to Sep. 2006: CF (over the previous quarter) Unit : million yen Jan-Mar 2006 Oct-Dec 2005 CF from Operating Activities 571 -930 CF from Investing Activities -647 3,223 CF from Financing Activities 4,963 -202 Change in Cash and Cash Equivalents 4,88
Slide 12: Consolidated Results Forecasts for the Year Ending September 2006
Overview of Consolidated Financial Results Consolidated Results Forecasts for the Year Ending September 2006 (October 2005 - September 2006) Consolidated results forecasts (revised up on January 19, 2006) Net Sales Operating Income Ordinary Income Net Income Revised up on January 19, 2006 60,000 4,0
Slide 13: Business Model
Business Model Business Model 12
Slide 14: Internet Advertising Industry Map
Business Model Internet Advertising Industry Map Users (Individuals/Consumers) Media Reps Ad Agencies Clients (Advertisers) Yahoo(4689) CCI(4788) 4324 Google DAC(4281) 2433 Overture 2389 Rakuten(4755) 4293 13
Slide 15: Internet Media Business
Media Business Internet Media Business 14
Slide 16: Consolidated Subsidiaries and Divisions that Make Up the Media Business
Media Business Consolidated Subsidiaries and Divisions that Make Up the Media Business Media Business Advertising (OnlineEC EC Shopping) (Commision Others and billing) Business Advertising Agency netprice, ltd. CA MOBILE, Ltd. EC Navi Company Media Headquarters GCREST, Inc. Ameba Headquarters Media
Slide 17: Internet Media Business (sales)
Media Business Internet Media Business (sales) Unit: million yen 10,000 Increased 21.1% 8,206 8,139 8,000 7,784 7,085 6,719 6,000 5,596 Increased 5,238 40.7% 4,713 4,300 4,000 3,896 Decreased 2,000 0.9% 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q (Oct-Dec) 2Q (Jan-Mar) 3Q (Apr-J
Slide 18: Advertising Sales
Media Business Advertising Sales Shift to Web2.0 Media Advertising Unit: million yen 4,000 Decreased 0.9% 3,033 3,163 3,135 2,843 3,032 3,000 2,453 Increased 2,229 2,011 2,075 2,000 1,901 136.9% 1,000 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q (Oct-Dec) 2Q (Jan-Mar) 3Q (Apr-Jun
Slide 19: Web2.0 Media: The Leader of PC Advertising (web)
Media Business Web2.0 Media: The Leader of PC Advertising (web) Unit: thousand yen Monthly Sales of the "Ameba" Blog Page Views of the "Ameba" Advertisement Listing Pages 80,000 Unit: Thousand page views 77,408 35,000 33,164 70,393 28,000 25,360 25,429 20,939 61,287 21,000 60,000 58,696 12,798 53,72
Slide 20: Tie-Up Blog Expecting Word-of-Mouth Effect
Media Business Tie-Up Blog Expecting Word-of-Mouth Effect Otsuka Pharmaceutical Co., Ltd. http://ameblo.jp/soyjoy/ Tie-Up Blog of Soy Snack, “SOYJOY” – SOY Kobo – There are a total of 60 tie-up blogs, which is the highest figure nationwide. Internet Number of bloggers with Advertising banners certif
Slide 21: Celebrity Blogs: Leaders who Increase the Number of Blog Visitors
Media Business Celebrity Blogs: Leaders who Increase the Number of Blog Visitors Matsumoto Oki no Tsubuyaki Oshikiri Moe no BACKSTAGE Otobe-no-Oshigoto Monex, Inc.: Oki Matsumoto, CEO Moe Oshikiri Ayako Otobe Jitsuroku Oniyome Nikki Vida Del Football Kazuma Urawa Reds: Takahito Soma (soccer player)
Slide 22: U.S. Internet Market - Web2.0 Media's Development (1)
Media Business U.S.: Internet Market - Web2.0 Media’ s Development (1) - Web2.0 Media from the Viewpoint of PV MySpace (web2.0 media): Ranked out of range 2 years ago but rose to the 23rd place a year ago and currently in the 4th place PV Ranking of U.S. Internet Services as of the end of April 2006
Slide 23: U.S. Internet Market - Web2.0 Media's Development (2)
Media Business U.S.: Internet Market - Web2.0 Media’ s Development (2) - Web2.0 Media from the Viewpoint of Upgrading Services - U.S. MySpace and Ameba - Blog Music Video News Communication Communication Function Function To be strengthened after renewal in June. 22
Slide 24: Ameba's Future Policy: Complete Site Renewal in June
Media Business Ameba’ s Future Policy Complete Site Renewal in June Recruit more technicians until June. Strengthen word-of-mouth marketing research business. Provide the world’s first The best and Japan’s first services at service on the internet The fastest pace. as of this point. Become the natio
Slide 25: Actively Launch New Services that Capture the Long Tail
Media Business Actively Launch New Services that Capture the Long Tail Word-of-Mouth Marketing Business Company Name: CyberBuzz, Inc. Established: April 3, 2006 Service Feature: Provides word-of-mouth marketing techniques on its own that suit the needs of clients with regard to the intensified influ
Slide 26: EC (e-commerce) Sales
Media Business EC (e-commerce) Sales EC sales increased 40.7% year-on-year to 5,004 million yen, of which, sales of commissions and billing, etc. increased 67.9% year-on-year to 1,066 million yen. Unit: million yen 6,000 5,173 5,004 4,752 4,500 Increased 40.7% 4,242 3,556 3,142 3,009 3,000 2,638 2,2
Slide 27: Internet Advertising Agency Business
Advertising Agency Business Internet Advertising Agency Business 26
Slide 28: Consolidated Subsidiaries and Divisions that Make Up the Advertising Business
Advertising Agency Business Consolidated Subsidiaries and Divisions that Make Up the Advertising Business Advertising Agency Business Internet Advertising Internet Advertising Headquarters CA Search, Ltd. Fraudia Communications, Inc. CA/H, Inc. (established on 4/17) CyberBuzz, Inc. (established on 4
Slide 29: Internet Advertising Agency Business (sales)
Advertising Agency Business Internet Advertising Agency Business (sales) Unit: million yen 8,000 7,134 6,151 Increased 49.2% 6,000 5,882 4,783 5,001 4,002 4,000 3,579 3,220 2,916 2,263 2,000 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q (Oct-Dec) 2Q (Jan-Mar) 3Q (Apr-Jun) 4Q (Jul-
Slide 30: Internet Advertising Headquarters Sales
Advertising Agency Business Internet Advertising Headquarters Sales Unit: million yen 8,000 6,512 Increased 42.9% 6,000 5,531 5,389 4,556 4,730 4,000 3,806 3,414 3,083 2,815 2,209 2,000 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q (Oct-Dec) 2Q (Jan-Mar) 3Q (Apr-Jun) 4Q (Jul-Sep)
Slide 31: Number of Clients and Top 5 Business Categories
Advertising Agency Business Number of Clients and Top 5 Business Categories Unit: No. of clients Number of Clients Top 5 Client Business Categories by Sales Comparison 1,500 1,318 1,345 1,338 Finace/Insurance/Securites 1 33.9% (Including Consumer Finance) 1,200 1,133 1,049 2 Service 18.1% 941 900 84
Slide 32: Quarterly Productivity per Sales Employee
Advertising Agency Business Quarterly Productivity per Sales Employee Unit: million yen Unit: People 60 150 145 145 128 50 136 125 44.4 50.9 42.2 98 40.5 40.7 40 37.1 37.9 108 37.2 100 94 32.6 30.2 31.5 90 29.5 30 27.4 75 75 76 69 66 20 50 46 10 25 0 0 03/ 03/ 03/ 03/ 04/ 04/ 04/ 04/ 05/ 05/ 05/ 05/
Slide 33: Investment Development Business
Investment Development Business Investment Development Business 32 28
Slide 34: Consolidated Subsidiaries and Divisions that Make Up the Investment Development Business
Investment Development Business Consolidated Subsidiaries and Divisions that Make Up the Investment Development Business Business Advertising Agency Media Business EC Others Financial Service Business (charged services) Media Business CA Capital, Ltd. Finance Headquarters Financial Plus, Inc. (estab
Slide 35: Investment Development Business (sales)
Investment Development Business Investment Development Business (sales) Included only the earnings from fund management and execution compensations. Unit: million yen 1,200 1,127 800 543 400 333 47 31 11 0 04/10-12 05/1-3 05/4-6 05/7-9 05/10-12 06/1-3 Yr to Sept. 2005 Yr to Sept. 2006 Net sales from
Slide 36: CyberAgent Group's Amount of Investment
Investment Development Business CyberAgent Group’ s Amount of Investment Unit: million yen Operational Investment Securities Investment will be made up to no more than 20% 4,000 of consolidated assets. 3,796 2,041 34 companies invested as of the end of March 2006. 3,000 S-Grant. Co., Ltd. (Nagoya :
Slide 37: Medium- to Long-Term Outlook
Medium- to Long-Term Outlook Medium- to Long-Term Outlook 36
Slide 38: Targeting Consolidated Net Sales of 100.0 Billion yen
Medium- to Long-Term Outlook Targeting Consolidated Net Sales of 100.0 Billion yen 100,000 web2.0 Blog, Wikipedia, SNS, etc. User-Participating Type Media 60,000 web1.0 Individuals’ websites, etc. 43,273 Information Sent One-Sidedly 26,728 20,000 16,202 10,824 6,392 3,276 2,651 4,000 19 1,726 -2 452
Slide 39: Continued Focus on the Blog Media, Ameba; Alliances with Other Companies
Medium- to Long-Term Outlook Continued Focus on the Blog Media, Ameba Become the nation’s largest communication portal website. Active Development of Alliances with Other Companies CA/H, Inc Established: April 17, 2006 A joint venture with Hakuhodo, Inc. and Hakuhodo DY Media Partners, Inc. Announce
Slide 40: VISION: Growing into a Company Representative of the 21st Century
Medium- to Long-Term Outlook VISION Growing into a Company Representative of the 21st Century 39
Slide 41: Reference Material (1)
Reference Material (1) Reference Material(1) Overview of Consolidated Financial Results PL (over the previous quarter) Interim Financial Results PL (midterm) BS (midterm) 40
Slide 42: Q2, Year to Sept. 2006: PL (over the previous quarter)
Reference Material (1) Q2, Year to Sept. 2006: PL (over the previous quarter) Unit : million yen Jan-Mar 2006 Oct-Dec 2005 Change Net sales 13,857 13,275 4.4% Gross income from sales 5,092 5,227 -2.6% Gross margin 36.7 % 39.4 % -2.7points SG&A 4,479 4,622 -3.1% SG&A ratio 32.3 % 34.8 % -2.5points Op
Slide 43: Sales per Half-Year Term, Operating Income
Reference Material (1) Sales per Half-Year Term, Operating Income Unit: million yen Unit: % 30,000 50 27,133 43.1 43.7 41.6 42.2 41.4 41.9 41.0 38.6 39.5 38.0 40 24,573 20,000 18,700 30 30.7 14,976 11,751 20 10,000 8,909 7,293 6,108 4,716 10 3,161 3,231 1,898 1,217 344 845 881 753 0 60 0 1,000 -167
Slide 44: Consolidated Interim Financial Results, Year to Sept. 2006 (PL)
Reference Material (1) Overview of Consolidated Interim Financial Results, Year to Sept. 2006 (PL) Unit : million yen Oct ‘05 - Mar ‘06 Oct ‘04 - Mar ‘05 Change Net Sales 27,133 18,700 45.1% Gross Income from Sales 10,319 7,741 33.3% Gross Margin 38.0 % 41.4 % -3.4points Operating Income 1,217 753 6
Slide 45: Consolidated Interim Financial Results, Year to Sept. 2006 (BS)
Reference Material (1) Overview of Consolidated Interim Financial Results, Year to Sept. 2006 (BS) Unit : million yen End of Mar 2006 End of Mar 2005 Change Current assets 34,327 20,805 65.0 % (cash + marketable securities, etc.) 18,208 13,725 32.7 % Fixed Assets 9,112 7,553 20.6 % Total Assets 43,4
Slide 46: Reference Material (2)
Reference Material (2) Reference Material(2) CAJJ Program Company Overview Business Model 45
Slide 47: CAJJ Program Model Diagram
Reference Material (2) CAJJ Program Model Diagram CyberAgent Business and Personnel Development Program CAJJ Program Model Diagram (CyberAgent Business and Personnel Development Program) J1 Promotion Standard As of Apr. 2006 (Period: 3 to 6 months) ЈGross profit of 15 million yen/month J1 Lower limi
Slide 48: CAJJ Businesses
Reference Material (2) CAJJ Businesses Name of Business or Affiliated Company Service Contents J1 1 CA MOBILE, Ltd. Mobile marketing 2 EC Navi Company Price/information comparison website 3 Internet Advertising Headquarters Internet advertising agency 4 netprice, ltd. Online shopping service website
Slide 49: Company Overview
Reference Material (2) Company Overview Company Name CyberAgent, Inc. (securities code: 4751) Head Office Shibuya Mark City West 21F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo West Japan Division, Meiji Yasuda Life Osaka Umeda Bldg. 14F, 3-3-20 Umeda-, Kita-ku, Osaka Osaka Office West Japan Division, Nish
Slide 50: Business Model
Reference Material (2) Business Model Client Users (Individuals/Consumers) Internet Media Internet Media Business Internet Advertisement Planning, Proposal and Effectiveness Verification Clients (Advertisers) Information Provision through Internet Media Charged Services/Product Sales Investment Subs