Broadmedia Corporation · TSE:4347

Broadmedia — Q3 FY2022 Earnings Presentation

30 slides from Broadmedia's earnings presentation, Feb 3, 2023

1. Slide 1: Summary of Financial Results for the First Three Quarters of FY Ending March 2023

   Summary of Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2023 Broadmedia Corporation February 3, 2023 The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forwa

2. Slide 2: Financial Summary for the First Three Quarters of FY2022; Shareholder Return; Topics

   Financial Summary for the First Three Quarters of FY2022 Shareholder Return Topics [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation. All Rights Reserved. 2

3. Slide 3: Consolidated Financial Results for the First Three Quarters (April – December)

   Consolidated Financial Results for the First Three Quarters (April – December) (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Financial FY2021 FY2022 Rate of Forecasts Achievement Difference difference ratio Q3 Q3 （announced on Apr. 27） Revenue 9,170 9,653 482 ＋5% 13,600 71%

4. Slide 4: Consolidated Financial Forecasts

   Consolidated Financial Forecasts (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Financial FY2021 FY2022 Rate of Forecasts Achievement Difference difference ratio Q3 Q3 （announced on Apr. 27） Revenue 9,170 9,653 482 ＋5% 13,600 71% Operating income 637 774 137 ＋22% 1,000 77% O

5. Slide 5: Changes in Operating Income (year over year)

   Changes in Operating Income (year over year) Q1 Q2 Q3 Q4 Actual results in FY2021 1,000 （forecast） Cumulative totals in FY2021 774 876 Actual results in FY2022 Totals in FY2022 (forecast) 637 465 319 289 317 308 239 186 176 133 (Unit：Million yen) Operating income decreased by 8 million yen year on y

6. Slide 6: Operating Income for the third quarter of the fiscal year

   Operating Income for the third quarter of the fiscal year (year over year) FY2021_Q3 FY2022_Q3 500 317 308 2 45 0 55 400 94 138 300 Technology 117 200 Education 291 100 201 0 -13 -100 -153 -153 -200 Education Technology Broadcast Studio & Content Others Corporate expenses (Unit：Million yen)(Amounts

7. Slide 7: Results by Business Segment

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 Difference FY2021 FY2022 Difference Q3 Q3 Q3 Q3 Education 2,001 2,524 523 525 789 263 Studio & 2,304 2,018 (286) 47 (74) (122) Content Bro

8. Slide 8: Results by Business Segment: Education

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 FY2021 FY2022 Difference Difference Q3 Q3 Q3 Q3 Education 2,001 2,524 523 525 789 263 ＋26％ ＋50％  The number of new students reached a rec

9. Slide 9: Results by Business Segment: Studio & Content

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 FY2021 FY2022 Difference Difference Q3 Q3 Q3 Q3 Studio & Content 2,304 2,018 (286) 47 (74) (122) (12％) ｌoss recorded  In the production b

10. Slide 10: Results by Business Segment: Broadcast

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 FY2021 FY2022 Difference Difference Q3 Q3 Q3 Q3 Broadcast 1,978 1,878 (99) 225 161 (64) (5％) (29％)  Revenue dropped because the impact of

11. Slide 11: Results by Business Segment: Technology

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 FY2021 FY2022 Difference Difference Q3 Q3 Q3 Q3 Technology 2,679 3,090 410 278 365 87 +15％ +31％  CDN (Akamai) services maintained good pe

12. Slide 12: Results by Business Segment: Others

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2021 FY2022 FY2021 FY2022 Difference Difference Q3 Q3 Q3 Q3 Others 206 141 ― 33 (17) ―  The figures for Q3 of FY2021 represent the results of network

13. Slide 13: Results by Business Segment: Corporate expenses

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Operating income FY2021 FY2022 Difference Q3 Q3 Corporate (472) (449) 23 expenses 5％ cost reduced  Costs during the the third quarter accounting period remained at the same lev

14. Slide 14: Consolidated Financial Position

    Consolidated Financial Position Condition of assets, liabilities, (Unit：Million yen)(Amounts are rounded down to the nearest million yen) and net assets FY2022 Rate of FY2021 Difference Q3 difference Total assets 8,940 8,889 (51) (1%) Liabilities 4,329 3,858 (471) (11%) Net assets 4,610 5,030 420 ＋9

15. Slide 15: Consolidated Financial Position: Cash Flow

    Consolidated Financial Position Condition of Cash flow FY2021 FY2022 Q3 Q3 Operating cash flow 675 (133) Investing cash flow 48 (239) Financing cash flow 48 (345) Changes in cash and cash equivalents 777 (706) Year-end balance of cash and cash equivalents 4,202 4,612 (Unit：Million yen)(Amounts are r

16. Slide 16: Shareholder Return

    Financial Summary for the First Three Quarters of FY2022 Shareholder Return Topics [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation. All Rights Reserved. 16

17. Slide 17: Shareholders Return (Acquisition of treasury stock)

    Shareholders Return (Acquisition of treasury stock) Type of shares to be acquired common shares of the Company Total number of acquirable up to 150,000 shares shares (Their ratio to the total number of outstanding shares (excluding treasury stock): 2.02%) Total share acquisition price up to 150 mill

18. Slide 18: Shareholders Return (Dividends)

    Shareholders Return (Dividends) The year-end dividend for FY2022 is planned to be 30 yen per share. The Company recognizes that one crucial issue for its management is simultaneously securing competitiveness in our business lines and returning profits to our shareholders. Dividends per Share Total d

19. Slide 19: Topics

    Financial Summary for the First Three Quarters of FY2022 Shareholder Return Topics [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation. All Rights Reserved. 19

20. Slide 20: Topics (Education): Ikebukuro Campus to open in April 2023

    Topics (Education) The Ikebukuro Campus is scheduled to open in April 2023. The campus is the seventh facility to provide an eSports program. It is the third large-scale flagship campus in the Tokyo metropolitan area. Providing eSports classes unique to the Renaissance High School Group © 2023 Broad

21. Slide 21: Topics (Education): The 5th All Japan High School esports Championship

    Topics (Education) The 5th All Japan High School esports Championship Renaissance Osaka: A team from the Umeda eSports Campus won in the Fortnite Division. 19 out of 40 finalist teams are from the Renaissance High School Group. 417 teams from 200 schools around Japan entered the division championshi

22. Slide 22: Topics (Technology; System Development): Kokoro Mate stress check service

    Topics (Technology; System Development) A new service was added to Kokoro Mate, a comprehensive stress check service that has been provided since 2016. The stress check service is provided free of charge to people with intellectual disabilities.1 SDD developed a cloud service that allows stress leve

23. Slide 23: Thank you for your attention.

    Thank you for your attention. The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by t

24. Slide 24: Reference Documents

    Financial Summary for the First Three Quarters of FY2022 Shareholder Return Topics [Reference Documents] ・ Consolidated Financial Results by Business Segment Breakdown of revenue by income type ・ Other Topics © 2023 Broadmedia Corporation. All Rights Reserved. 24

25. Slide 25: Breakdown of revenue by income type

    Consolidated Financial Results by Business Segment Breakdown of revenue by income type upper row：revenue（Unit：Million yen)(Amounts are rounded down to the nearest million yen) lower row： Composition ratio Breakdown of income Breakdown of revenue from by stock/flow original products/others Total Prod

26. Slide 26: Topics (Technology; Cloud Solutions): Cloud game app

    Topics (Technology; Cloud Solutions) Tenth in a series ! Cloud game app for smartphones and tablets, “I Am an Air Traffic Controller 4 Narita” is started. We will continue to improve and develop our services. © 2023 Broadmedia Corporation. All Rights Reserved. （C） TechnoBrain CO., LTD. 26

27. Slide 27: Topics (Others): CYCLOPS athlete gaming sponsorship with hi-ho

    Topics (Others; Promotion of Professional eSports) CYCLOPS athlete gaming, concluded a sponsorship agreement with hi-ho Inc. Aim for a further breakthrough in competitions in response to the provision of the hi-ho with games line, which ensures a stable connection environment even during online mult

28. Slide 28: Topics (Others): CYCLOPS to participate in SIX INVITATIONAL 2023

    Topics (Others; Promotion of Professional eSports) CYCLOPS athlete gaming will participate in SIX INVITATIONAL 2023 The biggest global Rainbow Six Siege competition which decides the world champion for the 2022 season To be held in Montreal, Canada from February 7 through 19, 2023 They have particip

29. Slide 29: Our Mission

    Our Mission We contribute to communities through quality content and services produced by human creativity. © 2023 Broadmedia Corporation. All Rights Reserved. 29

30. Slide 30: https://www.broadmedia.co.jp/

    https://www.broadmedia.co.jp/ The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by t

Broadmedia — Q3 FY2022 Earnings Presentation on 6ix