Cyberagent Incorporated · TSE:4751
Cyberagent — Q2 FY2005 Earnings Presentation
43 slides from Cyberagent's earnings presentation, May 13, 2005
Slide 1: Results Briefing for the Second Quarter of the Year Ending September 30, 2005
Results Briefing for the Second Quarter of the Year Ending September 30, 2005 May 13, 2005 CYBER AGENT, LTD. http://www.cyberagent.co.jp/ The opinions and forecasts contained within this document are the decisions of CYBER AGENT, LTD. at the time the document was prepared and do not guarantee the ac
Slide 2: Table of Contents
Table of Contents zOverview of Second Quarter Consolidated Financial Results zUpward revision of forecasted performance zCAJJ Program zBusiness Model zMedia Business (CA Network) zAdvertising Business (Internet Advertising Headquarters) zMedium- to Long-Term Outlook Reference Materials Company Overv
Slide 3: Overview of Second Quarter Consolidated Financial Results
Overview of Second Quarter Consolidated Financial Results January – March 2005 3
Slide 4: Highlights From Second Quarter of Year Ending September 2005
Highlights From Second Quarter of Year Ending September 2005 Advertising demand won over to achieve record revenue of 10,118 million yen (17.9% increase from first quarter) Record earnings of 506 million yen posted for operating income (104.9% increase from first quarter) CAJJ Program: Financial bus
Slide 5: Consolidated Financial Results Summary for Q2: Profit and Loss Statement
Consolidated Financial Results Summary for Q2, Year to Sept. 2005: Profit and Loss Statement Jan-Mar 05 Oct-Dec 05 Change Jan-Mar 04 Change Net sales (¥million) 10,118 8,582 17.9% 6,334 59.7% Gross income from sales (¥million) 4,201 3,540 18.7% 2,748 52.9% Gross margin (%) 41.5 41.3 0.2points 43.4 -
Slide 6: Net Sales, Operating Income and Gross Margin Rate
Net Sales, Operating Income and Gross Margin Rate Consolidated net sales increased 17.9% quarter-on-quarter Units: ¥million Units: % 11,000 60 10,118 10,000 44.1 8,582 9,000 43.1 41.8 41.4 43.4 41.5 50 41.2 39.2 39.6 42.7 43.4 42.7 41.7 41.3 8,000 38.8 35.9 7,103 40 32.2 7,873 7,000 6,334 6,000 30 4
Slide 7: Results by Business (Net Sales)
Results by Business (Net Sales) Media Business Advertising Business Units: ¥million CA Network Units: ¥million Internet Advertising Headquarters 5,000 7,000 6,730 4,783 6,500 4,500 6,000 5,642 4,002 4,000 5,500 5,238 3,579 5,000 4,713 3,500 3,220 4,500 4,300 2,916 3,000 4,000 3,896 2,263 2,500 2,044
Slide 8: Consolidated SG&A
Consolidated SG&A 4,000 60.0% 3,695 Units: ¥million 3,500 3,292 50.1% 3,000 2,875 50.0% 2,558 2,500 43.0% 42.9% 41.3%41.6% 2,026 2,266 39.8% 38.7% 2,000 38.4% 40.0% 37.4% 1,707 35.8% 36.0% 36.5% 36.5% 1,656 1,662 1,834 1,500 1,264 1,318 1,085 1,000 30.0% 500 0 20.0% 02/1-3 4-6 7-9 10-12 03/1-3 4-6 7
Slide 9: Number of Employees in Consolidated Companies
Number of Employees in Consolidated Companies Compared to December 31, 2004, the number of employees increased by 140; 108 in the Media Business, 26 in the Advertising Business Units: people 1,200 1,040 1,000 Other Management 900 13.3% 3.0% Sales 799 Technical 19.8% 800 734 7.6% 609 Administration 6
Slide 10: Consolidated Financial Results Summary for Q2: Balance Sheet
Consolidated Financial Results Summary for Q2, Year to Sept. 2005: Balance Sheet Units: ¥million Mar 31, 05 Dec 31, 04 Change Mar 31, 04 Change Current assets 20,805 18,704 11.2% 16,234 28.2% (Cash+marketable securities, etc.) 13,725 12,795 7.3 12,108 13.4 Fixed assets 7,553 8,362 -9.7 5,268 43.4 To
Slide 11: Consolidated Financial Results Summary for Q2: Cash Flows
Consolidated Financial Results Summary for Q2, Year to Sept. 2005: Cash Flows Units: ¥million Jan-Mar 05 Oct-Dec 04 Jan-Mar 04 CF from operating activities 114 -52 847 CF from investing activities 772 -53 61 CF from financing activities -23 -96 78 Change in cash and cash equivalents 863 -209 986 Ter
Slide 12: Upward Revision of Forecasted Performance for the Year Ending Sep 2005
Upward Revision of Forecasted Performance for the Year Ending Sep 2005 12
Slide 13: Upward Revision of Forecasted Performance for the Year Ending Sep 2005
Upward Revision of Forecasted Performance for the Year Ending Sep 2005 Previous forecast New forecast (Announced on November 15, 2004) ¥36.0 billion ¥40.0 billion Consolidated net sales (YoY increase of 34.7%) (YoY increase of 49.7%) Operating income ¥2.3 billion ¥2.3 billion 40,000 Ordinary income
Slide 14: CAJJ Program
l_” CAJJ Program ) | ( ( \ al an Oba CAC anita CACapital wae, (Congraturats»| ¢Congraturat 4 Weare \ eae eared Weare A! & CyberAgent 14
Slide 15: New Business Start-up Program: CAJJ Program
New Business Start-up Program: CAJJ Program CYBER AGENT Jigyo&Jinzai Ikusei Program J2 Promotion Standard (Period: 3 – 6 months) J1 Promotion Standard (Period: 6 – 12 months) Gross profit of 5 million yen /month Average quarterly gross profit of 15 million yen / month Lower limit on losses: 30 milli
Slide 16: CAJJ Program
CAJJ Program As of March 31, 2005 CAJJ Division Name or Affiliated Company CAJJ Division Name or Affiliated Company CA Mobile, Ltd. CA Mobile, Ltd. netprice, ltd. netprice, ltd. Internet Advertising Headquarters Internet Advertising Headquarters axiv.com Inc. axiv.com Inc. CA Search, Ltd. CA Search,
Slide 17: Topics in the Second Quarter and Onwards
Topics in the Second Quarter and Onwards January - CA Capital promoted to J1 - CA Capital holds trade contest for foreign currency transactions 2005 - Publicity cooperation developed for soliciting relief funds for the victims of the tsunami caused by the Sumatra earthquake - Fukuoka Office opened -
Slide 18: Businesses of Special Focus
Businesses of Special Focus Ameba Blog Group Site Opened: September 16, 2004 The number of blogs is continuing to grow rapidly at approximately 50 percent per month, and 500,000 is the target for the end of September 2005+ (Reference) Number of blogs was approximately 200,000 as of April 31, 2005 Am
Slide 19: Focus placed on starting and expanding web-related services
Focus placed on starting and expanding web- related services 19
Slide 20: Business Model
tp_ Business Model & CyberAgent
Slide 21: Business Model
Business Model Advertising Agencies Reps Media Dentsu, CCI Hakuhodo, Clients and advertisers Users and consumers etc. DAC Opt Septeni, etc. etc. CYBER AGENT Media etc. 21
Slide 22: Media Business
tp_ Media Business CA.network
Slide 23: Media Business: Advertising Sales
Media Business: Advertising Sales PC (Web) sales increased 155.7% quarter-on-quarter to ¥404 million Units: ¥million 3,174 3,000 671 2,500 2,229 356 2,011 2,075 522 2,000 1,901 597 1,674 475 512 252 1,420 1,382 359 621 1,054 79 105 141 184 202 832 19 35 42 30 764 772 736 1,000 677 622 640 684 404 15
Slide 24: Media Business: EC (E-Commerce) Sales
Media Business: EC (E-Commerce) Sales EC sales increased 13.2% quarter-on-quarter to ¥3,556 million Commission and billing sales increased 18.2% quarter-on-quarter to ¥635 million Mobile/ PC commerce sales increased 12.1% quarter-on-quarter to ¥2,921 million Units: ¥million 4,000 3,556 3,500 3,142 6
Slide 25: PC (Web) advertising sales are performing well
PC(Web) advertising sales are performing well Advertising-related sales Increased marketing by the advertising agency division has led to good performance EC Sales Netprice has fallen short of performance targets, but billing and online shopping are solid 25
Slide 26: Media Business: Future Strategies
Media Business: Future Strategies Continued focus on Web-related services such as blogs Integration such as a unified brand, ID/Pass and point system is under consideration 26
Slide 27: Advertising Business
Ea Advertising Business a: CyberAgent
Slide 28: Advertising Business: Internet Advertising HQ Sales
Advertising Business: Internet Advertising HQ Sales Advertising demand won over to achieve 19.7% increase from first quarter in sales by the Internet Advertising Headquarters CYBER AGENT / Partner Media sales rose 29.7% from the first quarter 5,000 4,556 Units: ¥million 4,000 3,806 35 3,414 3,083 36
Slide 29: Number of Clients
Number of Clients The scope of advertisers grew, leading to the number of clients increasing Units: No. to 1.6 times the figure for the same period in the previous year. of companies 1,100 1,049 1,000 941 900 844 800 723 700 641 600 559 481 500 379 400 373 300 200 100 0 03/1-3 03/4-6 03/7-9 03/10-12
Slide 30: Quarterly Productivity per Sales Employee
Quarterly Productivity per Sales Employee Faster strategizing of operations led to increased productivity per employee Units: people Units: ¥million 50 120 108 98 40 44.4 94 100 43.9 90 42.2 38.7 37.7 75 76 37.9 40.5 30 34.3 80 66 69 37.1 31.5 59 30.2 29.5 20 53 60 46 46 27.4 37 10 40 0 20 -3 -6 -9
Slide 31: Summary of the Advertising Business for the Second Quarter
Summary of the Advertising Business for the Second Quarter Advertising demand won over in March led to solid sales for Cyber Agent and partner media Sales staff increased by 14 people (up 14.9% from first quarter) through mid-career recruiting 31
Slide 32: Advertising Business: Future Strategies
Advertising Business: Future Strategies Aiming for mid- to long-term growth to gain 20% market share Increase sales in CYBER AGENT and partner media by improving the rate of revenue growth. Quickly making new graduates productive 32
Slide 33: Medium- to Long-Term Outlook
Medium- to Long-Term Outlook 33
Slide 34: Targeting Net Sales of ¥100.0 Billion
Targeting Net Sales of ¥100.0 Billion 100,000 Units: ¥million Growth in mobile advertising & e-commerce Development of broadband for mobile devices Growth in PC advertising and e-commerce 40,000 Development of broadband for PCs 26,728 20,000 16,202 10,824 6,392 3,276 1,726 2,300 452 -106 -278 -142 1
Slide 35: Looking to Sales of 100 Billion Yen in the Year Ending September 2008
Looking to Sales of 100 Billion Yen in the Year Ending September 2008 Expanding the business as an Internet media company Strengthening of the organization 35
Slide 36: VISION
VISION Growing Into a Company Representative of the 21st Century 36
Slide 37: Reference Materials
Ea Reference Materials a: CyberAgent
Slide 38: Company Overview
Company Overview Company Name: CYBER AGENT, LTD. (securities code: 4751) Head Office: Shibuya Mark City West 21F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo Osaka office: Meiji Yasuda Life Osaka Umeda Bldg. 14F, 3-3-20 Umeda, Kita-ku, Osaka Nagoya office: Nishiki Park Bldg. 12F, 2-4-3 Nishiki, Naka-ku, Nag
Slide 39: [Reference] Overview of Consolidated Interim Results
[Reference] Overview of Consolidated Interim Results Latter half of First half of previous year previous year 04/10 05/3 04/4 04/9 Change 03/10 04/3 Change Net sales (¥million) 18,700 14,976 24.9% 11,751 59.1% Gross income from sales (¥million) 7,741 6,315 22.6% 5,137 50.7% Gross margin (%) 41.4 42.
Slide 40: [Reference] Net Sales and Operating Income by Semiannual Period
[Reference] Net Sales and Operating Income by Semiannual Period Net Sales Operating Income Gross Profit Margin Units: ¥million Units: % 40
Slide 41: [Reference] Overview of Interim Results: BS
[Reference] Overview of Interim Results for the Year Ending Sept. 2005: BS End of End of End of previous interim period previous period interim period Units: ¥million Mar 2005 Sep 2004 Change Mar 2004 Change Current assets 20,805 18,199 14.3% 16,234 28.2% (Cash+marketable securities, etc.) 13,725 12
Slide 42: [Reference] Overview of Interim Results: CF
[Reference] Overview of Interim Results for the Year Ending Sept. 2005: CF Latter half of Same period of This interim period previous year previous year Units: ¥million 04/10 05/3 04/4 9 03/10 04/3 CF from operating activities 62 595 865 CF from investing activities 719 -1,253 1,832 CF from financin
Slide 43: Compliance with the Act for Protection of Computer Processed Personal Data
Compliance with the Act for Protection of Computer Processed Personal Data Held by Administrative Organs Measures taken in response to the Personal Information Protection Law are being actively promoted by inviting outside intellectuals mainly to the Committee for the Promotion of Personal Informati