サイバーエージェント（4751） – FY2022 1Q Presentation Material

[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 uncertainties.10. ContentsQuarterly Results (October – December 2021)1.2.3.4.5.6.7.Internet Advertisement BusinessForecastGame BusinessMedia BusinessMedium to long-term strategyReferences- Purpose21. Quarterly ResultsQuarterly ResultsOctober – December 202131. Quarterly ResultsFY2022Q1Sales and OP were off to a strong start.Sales: 171.0 billion yen up 30.6% YoYup 2.8X YoYOP: 19.8 billion yenRevenue from ABEMA and related businesses increased. MediaSales: 24.9 billion yenup 22.4% YoYOP:-3.8 billion yen +80 million yen YoYAdSales reached a new record driven by operation and technical capability. Sales: 87.8 billion yen up 14.7% YoYOP:5.7 billion yenup 0.7% YoYSales and OP grew driven by “Uma Musume Pretty Derby*.”GameSales: 58.3 billion yenOP: 17.1 billion yenup 94.7% YoYup 15.1X YoY*Uma Musume Pretty Derby* : © Cygames, Inc.41. 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.192.2179.7171.0163.4Billion Yen93.389.586.5109.5107.5104.4110.8101.897.9129.1131.0117.3113.6 111.7115.6120.8112.81Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY202251. Quarterly Results[Consolidated OP] 19.8 billion yen (up 2.8x YoY)44.526.825.819.8Billion Yen7.96.36.511.49.88.212.49.48.67.47.78.27.05.36.85.33.61Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY202261. Quarterly Results[SG&A Expenses] 34.6 billion yenMarketing expenses of the game business and “WINTICKET“ has increased.37.11.434.628.927.37.90.82.18.07.50.92.08.530.6 30.89.48.129.71.428.923.77.87.78.08.41.62.21.62.21.32.21.52.21.42.27.39.48.610.7 9.026.3 26.97.77.90.82.11.32.27.18.425.025.023.47.30.82.18.57.40.82.17.67.21.02.28.61.32.18.76.71.12.17.2Research and development expensesSpecial incentivesOther*Office costsPersonnelAdvertisement costBillion Yen23.0 22.624.924.6 24.521.66.30.71.77.95.80.61.66.65.80.51.56.823.16.80.61.87.17.30.71.80.72.06.87.77.65.90.31.56.19.17.96.78.17.07.16.89.98.16.15.35.87.87.38.26.410.19.510.013.411.51Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY2022*Since the current fiscal year, R&D expenses are excluded from “Other” and sales-related expenses are included in “Other”, retroactive from FY2017.*Other: Outsourcing expenses, sales-related expenses, external standard taxation, entertainment expenses, and others.71. Quarterly Results[No. of Employees] Total headcount was 6,171 at the end of December. Investment DevelopmentHeadquartersOtherGameInternet AdMediaheadcount4,153183103014,054192962851,272 1,2674,523 4,543 4,537 4,576183351733615344357406406153304251,330 1,346 1,347 1,3496,171126,089123955,958123846497303937435,433113696015,282 5,215 5,1621137060811366123625965785,467 5,49314370133745,549 5,53512370123746036056106204,902 4,98815350153525015035,109 5,11114372123624904871,522 1,5541,6121,6441,6431,4531,4591,670 1,786 1,826 1,924 1,9422,105 2,150 2,1831,560 1,6331,802 1,778 1,758 1,7541,822 1,900 1,881 1,894 1,964 1,883 1,819 1,7861,903 1,871 1,834 1,7982,0111,967 1,9796226246816606677037537678308028447987807547918047997898418238291Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY202281. Quarterly Results[PL]million yenFY2022 Q1FY2021 Q1YoYFY2021 Q4QoQ　Net Sales171,090131,01430.6%179,728-4.8%　Gross profit54,41935,96751.3%64,065-15.1%　SG&A expenses34,61528,90819.7%37,197-6.9%　Operating profit19,8047,058180.6%26,867-26.3%　OPM11.6%5.4%6.2pt14.9%-3.3pt　Ordinary profit19,8366,932186.1%26,894-26.2%　Extraordinary income-78.5%908.2%　Extraordinary loss17.2%3,411-71.2% Income before income taxes and non-controlling interests18,9536,550189.4%23,573-19.6%　Net profit*6,0912,930107.9%8,509-28.4%97981454837*Net profit: Profit attributable to shareholders of parent is affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc. 91. Quarterly Results[BS] We maintain a strong financial position.million yen　Current assets　Cash deposits　Fixed assets　Total assetsEnd ofDec. 2021End ofDec. 2020YoYEnd ofSept. 2021QoQ193,77941.1%301,650-9.4%96,96062.1%181,451-13.4%58,27438.1%80,885-0.5%252,09440.4%382,578-7.5%　Current liabilities85,85426.9%140,714-22.6%（Income tax payable）1,90977.9%29,723-88.6%　Fixed liabilities43,80212.3%47,7183.1% Shareholders’ equity77,60154.1%119,1280.4%　Net Assets122,43659.9%194,1450.8%273,381157,22180,485353,904108,9073,39649,208119,621195,788102. FY2022 ForecastFY2022ForecastOctober 2021 – September 2022112. FY2022 ForecastWe expect that the performance of the game business will fluctuate, and thus it is still difficult to calculate a reasonable forecast. At this point we refrain from disclosing the forecast for fiscal year 2022.666.4104.3478.5453.6419.5371.3310.6254.3205.236.7162.4141.1119.522.232.730.730.130.833.8SalesOPBillion Yen87.076.060.193.896.617.414.39.33.26.310.816.2-1.6-0.1-0.2-0.143.226.71.72.64.35.54.64.4Invest in blog service10.3Invest in Smartphone businessContinue up-front investment in ABEMAFY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021123. Internet Advertisement BusinessInternet Advertisement133. Internet Advertisement Business[Quarterly Sales] Q1 87.8 billion yen (up 14.7% YoY)87.8Sales increased for the sixth consecutive quarter and hit new record. 81.882.280.676.572.766.667.364.363.364.964.361.460.261.362.2Billion Yen52.551.048.657.655.61Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY2022143. Internet Advertisement Business[Quarterly OP] OP was 5.7 billion yen, OPM 6.5%Continue to invest in AI and DX.7.236.72Billion Yen5.525.665.705.435.044.914.744.525.745.204.996.37OPOP Margin5.134.584.443.964.694.244.239.4% 9.8%7.8% 8.0%9.6% 10.4%7.8%6.9% 6.8%8.2% 7.8% 7.8% 8.4%9.2%9.0%7.4% 7.0% 7.5%6.5%6.4%6.1%1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY202215*Quarterly OP and OPM: Special incentives in FY2020 and FY2021 are excluded.3. Internet Advertisement Business[Focus Area] Expand the business in the DX area step by step.NTT Communications CorporationYAMADA DENKI Co., Ltd.AWL, Inc.SAPPORO DRUG STORE CO.,LTD.Business AllianceJoint VentureCredit Saison Co., Ltd.DX Related DepartmentsAI Business Division×Retail DX LabDigital GovernmentPromo OfficeGovTech Development CenterFukui PrefectureYamagata CityShibuya City And othersConsolidated SubsidiariesMG-DX, Inc.AI Shift, Inc.CyberHuman Productions, Inc.163. Internet Advertisement Business[Focus Area] Three new subsidiaries are launched in the first quarter toincrease the business in the focus area.1. CyberAgent DX, Inc.NEW2. CA Mujin Tenpo, Inc.NEWMedia Developmentメディアの開発/グロースDatabase Managementデータ基盤の整理AppsアプリECデータ増大CDP(Customer Data Platform)Social SNSMedia購買履歴 会員属性 アプリ/EC 外部データPurchase history, demographics etc.Data utilizationデータ活用自社マーケティングDXMarketing DX広告事業の立ち上げAdvertising BusinessCustomer Data 自社集客のAnalysisデータ配信CRＭ改革Improve CRM広告商品の開発Ad products広告主への販売Ad SalesProvide AI powered services for staff-free stores 3. CA Future Event, Inc.NEWPromote DX to increase client’s businessPlan, produce and operate online events174. Game BusinessGame184. 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. 92.376.463.958.3Billion Yen34.635.836.333.433.740.435.536.8 36.339.9 38.2 37.735.239.036.744.829.9１Q 2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q１Q2Q3Q4Q１QFY2017FY2018FY2019FY2020FY2021FY2022*Uma Musume Pretty Derby: © Cygames, Inc.194. Game Business[Quarterly OP] 17.1 billion yen (up 15.1x YoY)442.428.13 23.20 17.13 Billion Yen7.91 6.89 6.45 5.23 5.64 8.55 6.77 8.37 7.47 7.00 7.58 7.49 10.44 5.11 4.33 3.19 1.13 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2017FY2018FY2019FY2020FY2021FY2022*Quarterly OP : Special incentives in FY2020 and FY2021 are excluded.204. Game Business[Uma Musume Pretty Derby*]Exceeded 12 million downloads in ten months since the launch.Number of downloadsDec.2512MFeb.20221st AnniversarySep.2010MJun.108MApr.276MMar.304MMar.102MFeb 24LaunchA series of new commercials have been airing since December 2021.*Uma Musume Pretty Derby: © Cygames, Inc.214. Game Business[Upcoming Games] A number of leading other companies’ IP titles are planned to be released.“Dream Meister and the Recollected Black Fairy”*RPGGCREST, Inc.To be releasedon Feb. 17“FINAL FANTASY VII EVER CRISIS”**SQUARE ENIX CO., LTD. / Applibot, Inc. RPGTo be releasedin 2022“Jujutsu Kaisen Phantom Parade”***Sumzap, Inc. / TOHO CO., LTD.RPGTo be releasedin 2022“Tokyo Revengers (Name TBD)”****GOODROID, Inc.PuzzleTo be releasedin 2022* “Dream Meister and the Recollected Black Fairy”: © bilibili © GCREST** ”FINAL FANTASY VII EVER CRISIS”: © 1997, 2021 SQUARE ENIX CO., LTD. All Rights Reserved. Powered by Applibot,Inc. CHARACTER DESIGN: TETSUYA NOMURA CHARACTER ILLUSTRATION: LISA FUJISE*** ”Jujutsu Kaisen Phantom Parade”: © Gege Akutami/ Shueisha, Jujutsu Kaisen Production Committee © Sumzap, Inc**** “Tokyo Revengers (Name TBD)”: © Ken Wakui, Kodansha/ Anime “Tokyo Revengers” Production Committee © GOODROID,Inc. ALL Rights Reserved. CyberAgentGroup. 225. Media BusinessMedia 235. Media Business[Quarterly Sales][Quarterly OP]24.9 billion yen (up 22.4% YoY)ABEMA and related businesses performed well.-3.8 billion yen operating loss in Q1.Invest largely in “WINTICKET.” 24.922.620.419.919.817.6FY2017FY2018FY2019FY2020FY2021FY20221Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q13.813.312.2 12.211.411.611.210.6Billion Yen7.1 7.2 7.66.49.1 9.0 9.3-3.3-4.0-4.0-4.4-4.5-4.9-4.7-4.6-5.0-3.4-3.5-3.8-3.8-3.9-3.6-4.1-4.3-4.0-4.2-4.6-5.01Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QFY2017FY2018FY2019FY2020FY2021 FY2022*Quarterly OP: Special incentives in FY2020 and FY2021 are excluded.Billion Yen245. Media Business76MDLExceeded 76 million downloads in five years and nine months after the launch.DownloadsApril 112016ReleaseApr.2016Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.20172018201920202021255. Media Business[ABEMA] Weekly active users (WAU) remained strong with special programs and sports content during the year-end and New Year holidays.18.25Growth of WAU*14.9014.5614.3114.2314.0313.3013.2112.6912.5311.9813.2512.8312.7512.1912.3912.1815.4614.8914.4913.9313.9713.6413.8913.1513.3110.7010.8711.4211.5911.5310.3810.3810.7710.3410.2710.259.188.559.288.438.297.296.586.797.326.235.916.285.505.50 5.685.104.184.752.692.673.52Million 1.182016*WAU: Weekly Active UsersApr.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.20172018201920202021265. 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 ABEMACopyright, WHYNOT MEDIA. All rights reserved. Copyright, WHYNOT MEDIA. All rights reserved. © CJ ENM Co., Ltd, All Rights ReservedExclusive genres only on ABEMA (Japanese chess, Sumo, Mahjong)©AbemaTV, Inc.27[ABEMA] Pay-per-view programs attracted many viewers in the year-end and 5. Media BusinessNew Year holidays.Live concertsJ-pop Idol showsCombat sports©AbemaTV, Inc.285. Media Business[ABEMA] ABEMA is now compatible with “Nintendo Switch.” Users can use their game consoles to watch ABEMA.©Usui Yoshito/Futabasha, SHIN-EI Animation, TV Asahi, ADK 2020©AbemaTV, Inc.295. Media Business[Sales of ABEMA & Related Businesses (Quarterly)]Q1 15.2 billion yen (up 1.5X YoY) 15.2 “ABEMA PPV ONLINE LIVE”PPV13.3 10.3 10.4 10.5 Related Businesses7.9 Online Sports Betting “WINTICKET”Official Shopping Channel of ABEMA4.7 4.5 3.9 3.6 3.5 3.2 3.3 MonthlySubscriptionAds2.0 1.6 1.4 1.1 Billion Yen0.3 0.4 0.5 0.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QFY2017FY2018FY2019FY2020FY2021FY2022305. Media Business[WINTICKET] The transaction amount increased by 2.8x year over year and continues to be strong. Quarterly Transaction Amount*A large promotion has been running, including tv commercials. 52.844.639.331.919.213.77.23.51.7Billion Yen0.43Q0.84Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2019FY2020FY2021FY2022*Quarterly Transaction Amount: Transaction amount of WinTicket, Inc. that operates internet betting system of Keirin races. (includes loyalty point campaign)315. Media Business[WINTICKET] Rapidly expanding the market share in the growing market.Keirin Online Betting Market*13％2020Oct. to Dec.142 billion yen27％2021Oct. to Dec.185 billion yenThe market grew 1.3X*Keirin Online Betting Market: October-December 2020 and October-November 2021 are taken from JKA’s public relations KEIRIN “Telephone Betting” sales. December 2021 is estimated by CyberAgent.325. 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.PortfolioMovie“The Journalist”Movie“The Family”Movie“The last 10 years”TV drama“Avalanche”Netflix“Ghost in the Shell”Netflix“The Journalist”TV drama“August night at the batting cage”TV drama“RISKY”ABEMAABEMA“The company is not a 「会社は学校じゃねぇんだよ」school”TV drama“Musho-boke”(Out of Prison)TV drama“Tokyo Houchi Shokudo ”(An Abandoned Eatery in Tokyo)Movie“GO TO THE FUTURE”335. Media Business[ABEMA]Medium and Long-Term Sales PipelineAccelerate monetization by related businesses etc.while increasing advertising and subscription revenues. RelatedBusiness etc.SubscriptionAdvertising346. Medium to Long-Term StrategyMedium to Long-Term Strategy356. Medium to Long-Term Strategy[Directions of each business]MediaGrow ABEMA larger and increase monetizationAdAim to increase the market share by maximizing advertising effectivenessGameMake successful games and enhance the operational capability to run long term games366. Medium to Long-Term Strategy[Operating Profit in Medium to long-term (Image)]Accumulate profit through Ad Business andGame Business, invest in Media Businessto grow as a pillar for the medium to long-term.37Aiming to be a company with medium to long-term supporters 7. ReferenceReference397. Reference – PurposeCyberAgent had defined a new “Purpose” that clearly states the significance of its existence.407. Reference – PurposePresident & 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 moreCyberAgent Official Media “FEATUReS”41Integrated ReportCyberAgent Way 2021The 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 information. Visit our investor relations website to read more.Integrated Report CyberAgent Way 2021https://www.cyberagent.co.jp/en/ir/library/annual/Click!!FY2022 Q2 earnings release is scheduled to be released at 3 pm or later on Wednesday, April 27, 2022. 42