Cyberagent Incorporated · TSE:4751
Cyberagent — Q1 FY2008 Earnings Presentation
43 slides from Cyberagent's earnings presentation, February 2008
Slide 1: Results Briefing for the Fiscal Year 2008
0 Results Briefing for the Fiscal Year 2008 Ending September 2008 (11th Term) President and CEO : Susumu Fujita Managing Director : Go Nakayama All opinions, projections, and statements contained in this material represent estimations of The Company at the time of publishing, and in no way, shape, f
Slide 2: Table of Contents
0 Table of Contents 1 Overview of Consolidated Financial Results 2 Consolidated Business Forecast for the Year Ending September 2008 3 Existing Business (Internet Media Business) 4 Existing Business (Internet Advertising Agency Business) 5 Investment Development Business 6 Media(Ameba Blog) 7 Summar
Slide 3: Overview of Consolidated Financial Results
1 Overview of Consolidated Financial Results Overview of Consolidated Financial Results CyberAgent, Inc. All Rights Reserved. 02
Slide 4: First Quarter Highlights - October through December 2007
1 Overview of Consolidated Financial Results First Quarter Highlights - October through December 2007 Net sales: 20,801 million Existing Business Media ( Business & Advertising Agency Business ( 18,313 million 14.6% increase from last year 15.0% increase from last year Investment Development Busines
Slide 5: Consolidated Financial Results by Quarter
1 Overview of Consolidated Financial Results Consolidated Financial Results by Quarter Units: Million yen Consolidated net sales, operating income, and gross margin by quarter Units: Percent 25,000 70.0 20,801 60.0 19,753 20,000 19,362 18,803 18,402 18,087 50.0 41.5 41.5 42.2 42.3 41.2 15,000 39.4 1
Slide 6: Existing Business
1 Overview of Consolidated Financial Results Existing Business Reliable growth Scout, leverage fostering capabilities, Convert rapidly increasing page views (PV) and and continue investment performance into reliable profitability profitability Ameba Advertising Investment (Ameba Blog) Media Agency D
Slide 7: Net Sales by Business Domain
1 Overview of Consolidated Financial Results Net Sales by Business Domain First quarter net sales by business domain Existing Businesses 18,313million Internet Media Business 9,856million 47.4% Q1 FY 2008 total 20,801 million % Internet 3.6 8.4% Advertising Agency Business Ameba Related Business 743
Slide 8: First Quarter Operating Income for Existing Business
1 Overview of Consolidated Financial Results First Quarter Operating Income for Existing Business: 921 million Units: Million yen Consolidated operating income by quarter 2,500 2,356 2,327 2,105 2,000 1,765 1,881 1,406 1,500 1,426 1,909 1,765 1,426 1,000 Up 474 million from previous quarter Existing
Slide 9: Profit and Loss for First Quarter of Fiscal 2008
1 Overview of Consolidated Financial Results PL Profit and Loss for first quarter of Fiscal 2008 (compared to same quarter of previous term) Oct - Dec 2007 Oct - Dec 2006 Change Net sales 20,801 18,087 15.0% Gross margin 7,900 6,872 15.0% Gross margin rate 38.0% 38.0% Operating expenses 6,046 5,938
Slide 10: Consolidated SG&A Expenses
1 Overview of Consolidated Financial Results Consolidated SG&A Expenses Unit : million Consolidated operating expenses by quarter Unit : % 7,000 40.0 5,938 6,073 6,046 33.5 5,890 6,000 5,748 34.8 5,265 32.8 32.3 31.4 31.3 30.0 5,000 4,889 4,622 28.6 29.1 29.1 4,479 4,000 20.0 3,000 2,000 10.0 1,000
Slide 11: Hire Conservatively and Emphasize Training
1 Overview of Consolidated Financial Results Hire Conservatively and Emphasize Training 128 New Employees Expected for April 2008 Units: Persons Number of Employees in Consolidated Companies 1,800 1,696 1,643 1,629 1,597 1,581 CyberAgent ranked in the Top 25 1,561 1,464 in a study conducted by the G
Slide 12: Balance Sheet for First Quarter of Fiscal 2008
1 Overview of Consolidated Financial Results BS Balance sheet for first quarter of Fiscal 2008 (compared to previous quarter) Dec. 31, 2007 Sep. 30, 2007 Change Current assets 40,221 39,393 2.1% (cash deposits & securities) 16,477 18,414 -10.5% Fixed assets 9,776 9,768 0.1% Total assets 49,997 49,16
Slide 13: Cash Flow for First Quarter of Fiscal 2008
1 Overview of Consolidated Financial Results CF Cash flow for first quarter of Fiscal 2008 (compared to previous quarter) Oct - Dec 2007 Jul - Sep 2007 Cash flows from operations 697 2,359 Cash flows from investments -873 -1,148 Cash flows from financing -1,717 355 Fluctuation of cash and cash equiv
Slide 14: Consolidated Business Forecast for the Year Ending September 2008
2 Consolidated Business Forecast for the Year Ending September 2008 Consolidated Business Forecast for the Year Ending September 2008 CyberAgent, Inc. All Rights Reserved. 13
Slide 15: Business Forecast for Fiscal 2008
2 Consolidated Business Forecast for the Year Ending September 2008 Business Forecast for Fiscal 2008 Consolidated business forecast for fiscal 2008 (forecast surpassed original prediction as announced December 21, 2007) Units: Million yen FY 2008 business forecast FY 2007 business Q1 FY 2008 result
Slide 16: Existing Business - Continuing Growth
2 Consolidated Business Forecast for the Year Ending September 2008 Existing Business - Continuing Growth Net sales Operating income Units: Million yen Consolidated business forecast for fiscal 2008 Units: Million yen 10,000 81,200 80,000 Business Forecast for FY 2008 76,007 (published December 21,
Slide 17: Business Forecast - Operating Income
2 Consolidated Business Forecast for the Year Ending September 2008 Business Forecast - Operating Income FY 2007 results FY 2008 forecast Units: Million yen 5,501 million Consolidated operating income 㩯3,200 million 8,000 7,260 Units: Million yen Investment 1,200 Development FY 2008 forecast: 3,700
Slide 18: Existing Business (Internet Media Business)
3 Existing Business (Internet Media Business) Existing Business (Internet Media Business) CyberAgent, Inc. All Rights Reserved. 17
Slide 19: Media - Advertising, Fee Collection, and Contents
3 Existing Business (Internet Media Business) Media (advertising / fee collection / contents) Media - Advertising, Fee Collection, and Contents 5,471 million Internet Media Business Q1 FY 2008 total Media net sales by quarter for advertising, fee collection, and contents 6,000 20,801 ss million s in
Slide 20: Media - Commerce
3 Existing Business (Internet Media Business) Media - Commerce Internet Media Business Media (commerce) 4,385 million Q1 FY 2008 total Units: Million yen Media net sales by quarter for commerce 6,000 20,801 ss million ine Bus t 5,380 ed es m nt s en lat Internet Advertising in lop e 5,260 Re us e tm
Slide 21: Existing Business (Internet Advertising Agency Business)
4 Existing Business (Internet Advertising Agency Business) Existing Business (Internet Advertising Agency Business) CyberAgent, Inc. All Rights Reserved. 20
Slide 22: Sales by Product
4 Existing Business (Internet Advertising Agency Business) Sales by Product Internet Media Business Q1 FY 2008 total Units: Million yen Internet Advertising Agency Business sales by quarter 12,000 20,801 ss million s ine Bu t ed es m nt s en lat Internet Advertising in lop e Re us e tm Website listi
Slide 23: Productivity
4 Existing Business (Internet Advertising Agency Business) Productivity Units: Million yen Productivity by quarter : sales volume per salesperson Units: Persons 60 240 50.9 202 49.6 195 196 46.7 46.9 45.6 45 42.9 180 42.2 41.5 40.5 40.7 39.8 37.1 37.9 145 37.2 166 166 162 159 136 32.6 145 31.5 29.5
Slide 24: Investment Development Business
5 Investment Development Business Investment Development Business CyberAgent, Inc. All Rights Reserved. 23
Slide 25: Investment Development Business Net Sales
5 Investment Development Business Existing Business Investment Development Business Net Sales Internet Media Business Q1 FY 2008 total Units: Million yen Investment Development Business net sales by quarter 3,500 20,801 ss million s ine Bu 3,093 ed lat Internet Advertising Re eb a Agency Business 3,
Slide 26: Investment Development Business: Investments and IPO Performance
5 Investment Development Business Investments limited to a maximum of 20% of the consolidated total assets Two companies went public in the first quarter Domestic IPO performance as of December 31, 2007 Investments in 59 companies as of December 31 (including 8 Chinese companies) Full Speed Inc. CEO
Slide 27: Media (Ameba Blog)
6 Media (Ameba Blog) Media (Ameba Blog) CyberAgent, Inc. All Rights Reserved. 26
Slide 28: Ameba Blog Page View grows at an accelerating pace
6 Media (Ameba Blog) Ameba Blog Page View (PV) grows at an accelerating pace Units: Million page view Page view trends for Ameba Blog 3,500 More than 2.5 million blogs 3,010 3,000 3 billion PVs in January 2008 1,882 2,572 2,500 1,650 2,195 1,450 2,000 1,876 More than 2.0 million blogs 1,309 1,663 1,
Slide 29: Celebrity Bloggers Drive Upward PV Trend
6 Media (Ameba Blog) Celebrity Bloggers Drive Upward PV Trend Units: Persons Celebrity blogger trends Units: Million PVs Celebrity blogger PV trends Units: Percent 1,485 3,500 30 1,500 27.7% 29.8% 27.6% 3,010 2,500 24.4% 24.8% 25 1,162 24.7% 23.4% 2,572 2,500 1,000 20 2,195 17.9% 19.8% 813 2,000 17.
Slide 30: Ranked 13th for Domestic PVs
6 Media (Ameba Blog) Ranked 13th for Domestic PVs September PV Ranking December PV Ranking 1 Yahoo! 1 Yahoo! 2 Rakuten 2 Rakuten Units: Rank NetRatings© page view ranking for Ameba Blog 1 3 mixi 3 mixi 4 google(co.jp) 4 google(co.jp) 5 Mobile Space 5 FC2 6 FC2 6 Youtube 20 7 Youtube 7 Mobile Space 1
Slide 31: Aggressively Develop Reliable Profitability
6 Media (Ameba Blog) Existing Aggressively Develop Reliable Profitability Business Internet Media Business Units: Q1 FY 2008 total 100 million yen Japan’s domestic blog and SNS market Units: Million yen Ameba Related Business quarterly net sales 2,000 1,000 20,801 million Increase 2007 levels by a f
Slide 32: Actions for Profitability (1) AmebaPR
6 Media (Ameba Blog) Actions for Profitability (1) AmebaPR: Providing blog topics and posting Word of Mouth recommendations on personal blogs The blog topics pages were renewed October 2007, and a total of more than 300,000 Word of Mouth (kuchikomi) recommendations have been posted. Access by mobile
Slide 33: Actions for Profitability (1) AmebaPR examples
6 Media (Ameba Blog) Actions for Profitability (1) AmebaPR: Providing blog topics and posting Word of Mouth recommendations on personal blogs Example of advertisement for a notebook computer Blog topics page Details page Personal blog with Word of Mouth recommendation CyberAgent, Inc. All Rights Res
Slide 34: Actions for Profitability (2) Google AdSense
6 Media (Ameba Blog) Actions for Profitability (2) Google AdSense (for mobile access) Google AdSense (for PC access) Began service November 2007 Began service February 2008 Advertisement Advertisement Mobile blog (moblog) article list screen Sample screen of an article displaying advertisements Cybe
Slide 35: Actions for Profitability (3) Personal Media Alliance
6 Media (Ameba Blog) Actions for Profitability (3) Personal Media Alliance: Exclusive advertising by official blogs Example of advertisement by a consumable goods company Official blogger’s blog page Client’s campaign page Advertisement CLICK CyberAgent, Inc. All Rights Reserved. 34
Slide 36: Effect of Filtering Services
6 Media (Ameba Blog) Effect of Filtering Services Effect on Ameba (Ameba Blog) Total for Dec 2007 Total for Dec 2007 2,572 million 2,572 million PVs Estimated at 3% or more of total PVs PVs Access to Ameba by DoCoMo by age group (%) (for December 2007) Units: Percent 30 PC 27.8 PC 1,650 1,650 18.6 2
Slide 37: Effect of Filtering Services: Target Users and Monitoring
6 Media (Ameba Blog) Effect of Filtering Services Our main target group is users 18 years and above. From the start, dating and adult content has been strictly prohibited. This policy will be strengthened continuously. Enhancement of the monitoring system CyberAgent, Inc. All Rights Reserved. 36
Slide 38: Page views are rapidly expanding
6 Media (Ameba Blog) Page views are rapidly expanding. Now, aggressively develop reliable profitability. CyberAgent, Inc. All Rights Reserved. 37
Slide 39: Summary
7 Summary Summary CyberAgent, Inc. All Rights Reserved. 38
Slide 40: Summary
7 Summary Existing Business Nearly all businesses are sustainably profitable. Mobile advertising and FX business are particularly robust. Investment Development Business Aggressively invest in China and neighboring Asia in addition to Japan. Ameba Related Business Page views are rapidly expanding. N
Slide 41: Developing Highly Profitable Business Models
7 Summary Developing Highly Profitable Business Models Net sales Operating income Units: Million yen Units: Million yen 10,000 81,200 80,000 Operating income is forecasted to temporarily decline in Fiscal 2008, 76,007 but exsisting businesses show excellent sustainable profitability. 70,000 80,000 A
Slide 42: Developing highly profitable business models around Ameba Blog
7 Summary Developing highly profitable business models around Ameba Blog CyberAgent, Inc. All Rights Reserved. 41
Slide 43: Vision: Create The Company that Symbolizes the 21st Century
7 Summary VISION Create The Company that Symbolizes the 21st Century. CyberAgent, Inc. All Rights Reserved. 42