Slide 1: 1Q FY2022 Presentation Material
*k *K *K a ve kK oe @A CyberAgent. ENGLISH 1Q FY2022 Presentation Material October to December 2021 (Januar y 26,2022)
Slide 2: Forward-looking statement
[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 various risks and unc
Slide 3: Contents
0. Contents 1. Quarterly Results (October - December 2021) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Medium to long-term strategy 7. References - Purpose 2
Slide 4: Quarterly Results
1. Quarterly Results Quarterly Results October - December 2021 3
Slide 5: FY2022 Sales and OP were off to a strong start
1. Quarterly Results FY2022 Sales and OP were off to a strong start. Sales:171.0 billion yen up 30.6% YoY Q1 OP: 19.8 billion yen up 2.8X YoY Revenue from ABEMA and related businesses increased. Media Sales: 24.9 billion yen OP: -3.8 billion yen up 22.4% YoY +80 million yen YoY Sales reached a new r
Slide 6: Consolidated Sales 171.0 billion yen (up 30.6% YoY)
1. Quarterly Results [Consolidated Sales] 171.0 billion yen (up 30.6% YoY) The advertising business and the media business performed well while the game business has been volatile. 192.2 179.7 171.0 163.4 129.1 131.0 120.8 Billion Yen 117.3 115.6 113.6 111.7 109.5 110.8 112.8 107.5 101.8 104.4 97.9
Slide 7: Consolidated OP 19.8 billion yen (up 2.8x YoY)
1. Quarterly Results [Consolidated OP] 19.8 billion yen (up 2.8x YoY) 44.5 26.8 25.8 19.8 Billion Yen 12.4 11.4 9.8 9.4 8.6 7.9 8.2 8.2 7.4 7.7 6.8 7.0 6.3 6.5 5.3 5.3 3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 6
Slide 8: SG&A Expenses 34.6 billion yen
1. Quarterly Results [SG&A Expenses] 34.6 billion yen Marketing expenses of the game business and Special incentives Other* "WINTICKET“ has increased. 37.1 Research and development expenses Office costs 1.4 34.6 Personnel Advertisement cost 30.6 30.8 29.7 9.4 8.1 28.9 28.9 1.4 27.3 26.3 26.9 Billion
Slide 9: No. of Employees
1. Quarterly Results [No. of Employees] Total headcount was 6,171 at the end of December. Investment Development 6,089 6,171 Headquarters 5,958 12 12 12 395 393 Other 5,549 5,535 384 5,433 5,467 5,493 Game 12 12 11 5,282 5,215 14 13 743 5,109 5,111 369 11 5,162 370 374 370 374 730 Internet Ad 4,988
Slide 10: PL
1. Quarterly Results [PL] million yen FY2022 Q1 FY2021 Q1 YoY FY2021 Q4 QoQ Net Sales 171,090 131,014 30.6% 179,728 -4.8% Gross profit 54,419 35,967 51.3% 64,065 -15.1% SG&A expenses 34,615 28,908 19.7% 37,197 -6.9% Operating profit 19,804 7,058 180.6% 26,867 -26.3% OPM 11.6% 5.4% 6.2pt 14.9% -3.3pt
Slide 11: BS: Strong financial position
1. Quarterly Results [BS] We maintain a strong financial position. End of End of End of million yen YoY QoQ Dec. 2021 Dec. 2020 Sept. 2021 Current assets 273,381 193,779 41.1% 301,650 -9.4% Cash deposits 157,221 96,960 62.1% 181,451 -13.4% Fixed assets 80,485 58,274 38.1% 80,885 -0.5% Total assets 3
Slide 12: FY2022 Forecast
2. FY2022 Forecast FY2022 Forecast October 2021 - September 2022 11
Slide 13: FY2022 Forecast
2. FY2022 Forecast 666.4 We expect that the performance of the game 104.3 business will fluctuate, and thus it is still difficult to calculate a reasonable forecast. At this point we refrain from disclosing the 478.5 forecast for fiscal year 2022. 453.6 419.5 371.3 310.6 254.3 205.2 36.7 33.8 32.7 3
Slide 14: Internet Advertisement Business
3. Internet Advertisement Business Internet Advertisement 13
Slide 15: Internet Advertisement Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q1 87.8 billion yen (up 14.7% YoY) 87.8 Sales increased for the sixth consecutive 81.8 82.2 80.6 quarter and hit new record. 76.5 72.7 66.6 67.3 64.9 64.3 64.3 63.3 61.4 61.3 62.2 Billion Yen 60.2 57.6 55.6 52.5 51.0 48.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1
Slide 16: Internet Advertisement Quarterly OP
3. Internet Advertisement Business [Quarterly OP] OP was 5.7 billion yen, OPM 6.5% Continue to invest in AI and DX. 7.23 6.72 6.37 OP OP Margin 5.66 5.70 5.74 Billion Yen 5.52 5.43 5.13 5.20 5.04 4.99 4.91 4.69 4.74 4.58 4.52 4.44 4.24 4.23 3.96 9.8% 9.6% 10.4% 9.4% 9.2% 9.0% 7.8% 7.8% 8.0% 6.9% 6.8
Slide 17: Focus Area: Expand the business in the DX area
3. Internet Advertisement Business [Focus Area] Expand the business in the DX area step by step. Business Alliance AWL, Inc. NTT Communications Corporation YAMADA DENKI Co., Ltd. SAPPORO DRUG STORE CO.,LTD. Joint Venture DX Related Departments Credit Saison Co., Ltd. Digital Government AI Business D
Slide 18: Three new subsidiaries launched in first quarter
3. Internet Advertisement Business [Focus Area] Three new subsidiaries are launched in the first quarter to increase the business in the focus area. 1. CyberAgent DX, Inc. NEW 2. CA Mujin Tenpo, Inc. NEW メディアの開発/グロース Media Development データ基盤の整理 Database Management データ増大 CDP Apps (Customer Data Platfo
Slide 19: Game Business
4. Game Business Game @A CyberAgent. 18
Slide 20: Game Quarterly Sales
4. Game Business [Quarterly Sales] Q1 58.3 billion yen (up 94.7% YoY) “Uma Musume Pretty Derby*,” which will celebrate its first anniversary in February, still maintains revenue at a high level. 92.3 76.4 63.9 58.3 Billion Yen 44.8 40.4 39.9 38.2 37.7 39.0 35.8 36.3 35.5 36.8 36.3 36.7 34.6 35.2 33.
Slide 21: Game Quarterly OP
4. Game Business [Quarterly OP] 17.1 billion yen (up 15.1x YoY) 44.24 28.13 23.20 17.13 Billion Yen 10.44 8.55 8.37 7.91 7.47 7.58 7.49 6.89 6.77 7.00 6.45 5.23 5.64 5.11 4.33 3.19 1.13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 *Quarterl
Slide 22: Uma Musume Pretty Derby downloads
4. Game Business [Uma Musume Pretty Derby*] Exceeded 12 million downloads in ten months since the launch. Dec.25 Feb.2022 12M Number of downloads 1st Anniversary Sep.20 10M Jun.10 8M Apr.27 6M Mar.30 4M A series of new commercials have been airing since December 2021. Mar.10 2M Feb 24 Launch *Uma Mu
Slide 23: Upcoming Games
4. Game Business [Upcoming Games] A number of leading other companies’ IP titles are planned to be released. “Dream Meister and the Recollected Black Fairy”* RPG “FINAL FANTASY VII EVER CRISIS”** RPG GCREST, Inc. To be released SQUARE ENIX CO., LTD. / Applibot, Inc. To be released on Feb. 17 in 2022
Slide 24: Media Business
5. Media Business Media @A CyberAgent. 23
Slide 25: Media Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 24.9 billion yen (up 22.4% YoY) -3.8 billion yen operating loss in Q1. ABEMA and related businesses Invest largely in “WINTICKET.” performed well. 24.9 22.6 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 20.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 26: ABEMA exceeded 76 million downloads
5. Media Business 76M DL Exceeded 76 million downloads in five years and nine months after the launch. Downloads April 11 2016 Release Apr. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. 2016 2017 2018 2019 2020 2021 25
Slide 27: ABEMA weekly active users
5. Media Business [ABEMA] Weekly active users (WAU) remained strong with special programs and sports content during the year-end and New Year holidays. 18.25 Growth of WAU* 15.46 14.90 14.89 14.56 14.49 14.31 14.23 14.03 13.93 13.97 13.30 13.64 13.21 13.89 12.83 13.15 13.31 12.69 12.53 13.25 12.75 1
Slide 28: ABEMA upcoming programs
5. Media Business [ABEMA] Many programs in various genres are coming up on ABEMA. Original/co-production shows (Dramas, dating shows) Exclusive distribution of Korean dramas on ABEMA Copyright, WHYNOT MEDIA. All rights reserved. Copyright, WHYNOT MEDIA. All rights reserved. © CJ ENM Co., Ltd, All Ri
Slide 29: ABEMA pay-per-view programs
5. Media Business [ABEMA] Pay-per-view programs attracted many viewers in the year-end and New Year holidays. Live concerts J-pop Idol shows Combat sports 28 ©AbemaTV, Inc.
Slide 30: ABEMA compatible with Nintendo Switch
5. Media Business [ABEMA] ABEMA is now compatible with “Nintendo Switch.” Users can use their game consoles to watch ABEMA. 29 ©Usui Yoshito/Futabasha, SHIN-EI Animation, TV Asahi, ADK 2020 ©AbemaTV, Inc.
Slide 31: Sales of ABEMA & Related Businesses
5. Media Business [Sales of ABEMA & Related Businesses (Quarterly)] “ABEMA PPV ONLINE LIVE” Q1 15.2 billion yen (up 1.5X YoY) 15.2 PPV 13.3 10.310.410.5 Related Online Sports Betting “WINTICKET” Businesses 7.9 Monthly 4.7 Subscription 4.5 3.9 Official Shopping Channel of ABEMA 3.6 3.5 3.2 3.3 2.0 Bi
Slide 32: WINTICKET transaction amount up 2.8x
5. Media Business [WINTICKET] The transaction amount increased by 2.8x year over year and continues to be strong. 52.8 Quarterly Transaction Amount* 44.6 A large promotion has been running, including tv commercials. 39.3 31.9 19.2 13.7 7.2 Billion Yen 3.5 0.8 1.7 0.4 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 33: WINTICKET expanding market share
5. Media Business [WINTICKET] Rapidly expanding the market share in the growing market. Keirin Online Betting Market* 13％ 27％ 2020 2021 Oct. to Dec. Oct. to Dec. 142 billion yen 185 billion yen The market grew 1.3X *Keirin Online Betting Market: October-December 2020 and October-November 2021 are ta
Slide 34: BABEL LABEL consolidated subsidiary
5. Media Business [BABEL LABEL] Babel Label, a content studio involved in producing films, TV shows, and other entertainment, became a consolidated subsidiary to create content for a wide range of platforms and export worldwide. Portfolio Movie Movie Movie TV drama Netflix Netflix “The Journalist” “
Slide 35: ABEMA Medium and Long-Term Sales Pipeline
5. Media Business [ABEMA] Medium and Long-Term Sales Pipeline Accelerate monetization by related businesses etc. while increasing advertising and subscription revenues. Related Business etc. Subscription Advertising 34
Slide 36: Medium to Long-Term Strategy
6. Medium to Long-Term Strategy Medium to Long-Term Strategy 35
Slide 37: Directions of each business
6. Medium to Long-Term Strategy [Directions of each business] Media Grow ABEMA larger and increase monetization Aim to increase the market share by Ad maximizing advertising effectiveness Game Make successful games and enhance the operational capability to run long term games 36
Slide 38: Operating Profit in Medium to long-term (Image)
6. Medium to Long-Term Strategy [Operating Profit in Medium to long-term (Image)] Accumulate profit through Ad Business and Game Business, invest in Media Business to grow as a pillar for the medium to long-term. 37
Slide 39: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 40: Reference
7. Reference @A CyberAgent. Reference
Slide 41: Reference - Purpose
7. Reference - Purpose CyberAgent had defined a new "Purpose" that clearly states the significance of its existence. 40
Slide 42: CyberAgent Official Media FEATUReS
7. Reference - Purpose President & CEO Susumu Fujita and Outside Director Koichi Nakamura discussed the background to creating the purpose and the ideas behind it on our owned media “FEATUReS.” Learn more CyberAgent Official Media “FEATUReS” 41
Slide 43: Integrated Report CyberAgent Way 2021
Integrated Report CyberAgent Way 2021 The theme of the Integrated Report for fiscal 2021 is the Purpose set in October 2021, “To break through stagnation with new power and the internet.” It covers a variety of measures that support our sustainable growth, including competitive advantage and ESG inf