Slide 1: 1Q FY2023 Presentation Material
@A CyberAgent. 1Q FY2023 Presentation Material October to December 2022 (Januar y 25,2023) ENGLISH
Slide 2: Forward-looking statement
@A CyberAgent. [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 variou
Slide 3: Contents
0. Contents @A CyberAgent. 1. Financial Summary (October - December 2022) 2. Internet Advertisement Business 3. Game Business 4. Media Business 5. Medium to long-term strategy 6. References - Purpose
Slide 4: 1. Financial Summary
1. Financial Summary @A CyberAgent. FY23 Q1 Financial Summary October - December 2022
Slide 5: FY2023 Q1 Financial Summary: sales and OP by segment
1. Financial Summary @A CyberAgent. The FIFA World Cup Qatar 2022 was the largest FY2023 investment in our history. Q1 Sales: 167.5 billion yen down 2.1% YoY OP: -1.2 billion yen The value of ABEMA as a medium has increased considerably resulting from the investment in the FIFA World Cup Qatar 2022.
Slide 6: Quarterly sales trend
192.2 191.1 179.7 176.2 171.0 172.1 167.5 163.4 129.1 131.0 120.8 117.3 115.6 113.6 111.7 109.5 110.8 112.8 107.5 104.4 97.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 5
Slide 7: Quarterly operating profit trend
26.8 25.8 25.7 19.8 13.2 12.4 11.4 10.3 9.4 8.6 8.2 8.2 7.4 7.7 6.8 7.0 5.3 5.3 3.6 -1.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 6
Slide 8: SG&A expenses breakdown
Special incentives 40.4 40.4 Other* 37.8 Research and development expenses 37.1 37.1 1.4 34.6 Office costs 9.3 9.6 Personnel 7.7 8.5 Advertisement cost 30.6 30.8 29.7 9.4 8.1 28.9 28.9 2.0 2.2 27.3 1.4 1.7 26.9 1.8 2.4 25.0 26.3 2.4 25.0 8.0 8.4 2.3 2.4 24.6 24.5 1.6 1.6 23.1 7.9 23.4 23.7 7.7 7.8 7
Slide 9: Number of employees by segment
6,563 Investment Development 6,406 6,472 14 14 13 368 Headquarters 352 365 5,911 Other 5,733 5,815 13 5,595 12 748 12 394 817 Game 12 798 395 393 5,113 5,144 5,196 5,199 384 Internet Ad 5,102 12 12 11 4,952 4,888 14 13 764 4,780 4,782 4,842 370 374 730 743 Media 369 11 370 374 4,587 4,670 11 12 649
Slide 10: Financial Summary: P&L
1. Financial Summary [PL] million yen Net Sales Gross profit SG&A expenses Operating income (loss) OPM Ordinary income (loss) Extraordinary gain Extraordinary loss Income (loss) before income taxes FY2023 Q1 39,187 40,443 -0.7% 1,296 409 -52 and non-controlling interests Net income (loss) attributab
Slide 11: Financial Summary: balance sheet
1. Financial Summary @A CyberAgent. [BS] million yen Current assets Cash deposits Fixed assets Total assets Current liabilities (Income tax payable) Fixed liabilities Shareholders equity Net Assets End of Dec. 2022 331,580 198,697 91,368 423,028 139,914 2,318 71,416 126,003 211,696 End of Dec. 2021
Slide 12: FY2023 forecast
1. Financial Summary @A CyberAgent. 720.0 710.5 Sales 720 billion yen (up 1.3% YoY) OP 40 - 50 billion yen Ads and Media business will drive revenue growth. Profits are forecasted with a range considering the investment in FIFA World Cup content and fluctuations 4195 in the Game business. range mSal
Slide 13: 2. Internet Advertisement Business
2. Internet Advertisement Business @A CyberAgent. Internet Advertisement 12
Slide 14: Internet Advertisement sales
99.5 97.0 95.6 92.3 87.8 81.8 82.2 80.6 76.5 72.7 66.6 67.3 64.3 64.3 64.9 62.2 63.3 61.4 61.3 60.2 57.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 13
Slide 15: Internet Advertisement OP and OP margin
OP 7.47 7.23 OP Margin 6.72 6.37 6.19 5.66 5.70 5.74 5.52 5.43 5.04 4.91 5.20 4.99 5.05 5.00 4.69 4.74 4.52 4.24 4.23 9.6% 10.4% 9.2% 9.0% 7.8% 8.2% 7.8% 7.8% 8.4% 6.9% 6.8% 7.4% 7.5% 7.7% 7.0% 6.4% 6.5% 6.1% 6.2% 5.5% 5.2% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019
Slide 16: Upfront Investment: data-based advertising partners
2. Internet Advertisement Business @A CyberAgent. [Upfront Investment]To create a new advertising business utilizing data, we are focusing on developing businesses and 30 finding new partners in FY2023. partner companies ANA Mobility docomo Telecom CREDIT ‘O) MUFG Finance =ZUFJSRT + + % YAMADA 24 Re
Slide 17: 3. Game Business
3. Game Business Game @A CyberAgent. 16
Slide 18: Game sales
92.3 76.4 69.0 63.9 58.3 54.8 46.2 44.8 40.4 39.9 39.0 40.9 38.2 37.7 35.5 36.8 36.3 36.7 35.2 33.7 29.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q １Q 2Q 3Q 4Q １Q 2Q 3Q 4Q １Q FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 17
Slide 19: Game operating profit
28.1 23.2 21.3 17.1 12.1 10.4 9.8 8.5 8.3 7.4 7.5 7.4 6.7 7.0 5.6 5.1 5.2 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 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 18
Slide 20: Game titles by release year
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 1 2 5 7 9 3 4 6 8 10 19
Slide 21: Upcoming Games
@A CyberAgent. [Upcoming Games] A title released in December 2022, two other popular IP titles are to be launched. 3. Game Business “Tokyo Revengers Puzz-reve! Road to National Championship"*1 GOODROID, Inc. aun a5 is “Jujutsu Kaisen Phantom Parade”*2 “FINAL FANTASY VII EVER CRISIS"*3 Sumzap, Inc. /
Slide 22: 4. Media Business
4. Media Business @A CyberAgent. Media 21
Slide 23: Media sales and operating profit
33.4 30.2 29.5 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 27.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 24.9 22.6 20.4 19.9 19.8 17.6 13.8 13.3 12.2 12.2 11.4 11.611.2 10.6 9.1 9.0 9.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019 FY2020 FY2021 FY2
Slide 24: ABEMA user trends
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 Jun. Sep. Dec. . . . . . . 23
Slide 25: ABEMA weekly usage trend
19.19 18.96 18.45 17.66 18.25 17.21 17.09 16.3 14.90 14.89 14.83 14.56 14.49 15.14 14.23 13.93 13.30 13.21 13.31 12.83 12.43 12.65 12.43 12.19 12.39 12.69 11.93 11.98 10.70 10.87 11.42 10.38 10.27 10.25 10.05 9.18 8.83 8.81 8.55 8.33 8.29 6.92 7.29 5.99 5.47 5.54 5.29 5.68 5.35 4.60 4.52 4.04 4.18 3
Slide 26: ABEMA FIFA World Cup viewer data
User Demographics (%) Viewing Style Comparison (%) Age Gender Many users watched the games A wide range of users watched the games. at their preferred time.*2 Device Breakdown (%) The Number of Comments by Matches Many features and high-quality streaming The comment feature made users to share their
Slide 27: ABEMA provided a new viewing experience
4 CyberAgent. 4. Media Business [ABEMA] ABEMA provided a new viewing experience with high-quality and stable streaming. [Oral wets fo FFA Wor Cp tr 2022] FIFA World Cup Qatar 2022 First Time = AIL 64 wctcres & Live &.Free rem? On ABEMA
Slide 28: Viewership after the FIFA World Cup
1.3x 1.2x 2x 1.5x 1.7x 5.7x *1 Viewership: Compared the week of November 7, 2022, and the week of January 2, 2023, that are before and after the FIFA World Cup. ©AbemaTV, Inc. 27 *2 ©Tatsuya Endo/ Shueisha, Spy x Family Production Committee
Slide 29: ABEMA new sports and anime channels
4. Media Business @A CyberAgent. [ABEMA] A new sports channel and three new anime channels are added to expand the coverage of these genres. UAwort) HIPHOP iCM 1 Dh. Anim 1631, Anim Anim Pas80: P=%9: w=%00, P= GFE #68] SBort- BORIRALE 3ST™= $9) Fatt Roe Sys ©AbematV, Inc. 28
Slide 30: ABEMA live events attracting large audience
4. Media Business @A CyberAgent. [ABEMA] The live events of combat sports and other popular genres are attracting a large audience. The Osho title match of Japanese A series of NJPW and NOAH matches Shogi on Jan. 21 and 22, 2023 on Jan. 21, 2023 The last match of legendary pro-wrestler Keiji Muto on
Slide 31: ABEMA advertising sales
21.7 19.0 19.0 16.9 15.2 13.3 10.3 10.4 10.5 7.9 4.7 4.5 3.9 3.6 3.5 3.2 3.3 2.0 1.6 1.4 1.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 30
Slide 32: ABEMA paid subscription results
88.9 77.9 73.5 67.9 52.8 44.6 39.3 31.9 Billion yen 19.2 13.7 7.2 3.5 1.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2020 FY2021 FY2022 FY2023 31
Slide 33: BABEL LABEL partnered with Netflix
4. Media Business @A CyberAgent. [BABEL LABEL] Content studio BABEL LABEL partnered with Netflix aiming at producing world-class content to distribute on Netflix. TV drama Movie Movie Netflix Original Netflix Original Netflix Original “INFORMA” “The Family” "Ghost in the Shell: SAC_2045 “Samurai Gou
Slide 34: 5. Medium to Long-Term Strategy
5. Medium to Long-Term Strategy @A CyberAgent. Medium to Long-Term Strategy 33
Slide 35: Directions of each business
5. Medium to Long-Term Strategy @A CyberAgent. [Directions of each business] M edia Grow ABEMA larger and increase monetization Aim to increase the market share by maximizing advertising effectiveness Make successful games and enhance the operational capability to run long term games 34
Slide 36: Operating Profit in Medium to long-term (Image)
5. Medium to Long-Term Strategy @A CyberAgent. [Operating Profit in Medium to long-term (Image)] Accumulate profit through Ad Business and 7 Game Business, invest in Media Business to grow as a pillar for the medium to long-term. cd: ( Investment in video content business } 0 ( Investment in smartph
Slide 37: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 38: 6. Reference
6. Reference @A CyberAgent. Reference
Slide 39: Reference - Purpose
6. Reference - Purpose @A CyberAgent. CyberAgent had defined a new "Purpose" that clearly states the significance of its existence. @A CyberAgent. | Purpose To break through stagnation with new power and the internet Contribute to the digital shift of all industries. Make ABEMA the television of the
Slide 40: Integrated Report CyberAgent Way 2022
@A CyberAgent. Integrated Report CyberAgent Way 2022 als alate The 2022 Integrated Report features our talent management frameworks to realize sustainable growth with soaring attention by society. It introduces our four focus areas: hiring, developing human resources, energizing the organization, an
Slide 41: Copyrights of Game Business
@A CyberAgent. Copyrights of Game Business 1: ©Sumzap, Inc. All rights Reserved. 2: ©Cygames, Inc. 3 : © 2014-2023 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. Developed by Cygames, Inc. Publisher: SQUARE ENIX 4: THE IDOLM@STER & ©BANDAI NAMCO Entertainment Inc. Jointly developed and i