[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.
1
Internet Advertisement Business
Game Business
Media Business
FY2021
1.
2. Forecast
3.
4.
5.
6.
0. Contents
2
Quarterly Results (October - December 2020)
References7. Governance
1. Quarterly Results
Quarterly ResultsOctober - December 2020
3
Media
Game
Ad
FY2021Q1
Sales: 20.4 billion yen up 67.0% YoY
OP: -3.9 billion yen
Sales: 76.5 billion yen up 13.8% YoY
OP: 5.7 billion yen up 0.8% YoY
Sales: 29.9 billion yen down 15.0% YoY
OP: 1.1 billion yen down 77.8% YoY
Decrease in sales and OP due to seasonal factors of existing titles, etc.
Sales: 131.0 billion yen up 13.3% YoY
OP: 7.0 billion yen down 8.7% YoY
Ads and media business went well. Sales reached a record high.
Driven by ABEMA related businesses, sales increased 1.6x year over year.
Sales reached a record high and grew at double-digits year over year.
1. Quarterly Results
4
74.0 74.6 76.4
85.6 86.5
93.389.5
101.897.9
109.5104.4
107.5110.8
117.3113.6 111.7
115.6
129.1
112.8
120.8
131.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Billion Yen
[Consolidated Sales]
1. Quarterly Results
5
131 billion yen (up 13.3% YoY)
The advertising business and the media business grew steadily and reached a record high.
12.9
11.2
8.3
4.2
6.3
7.9
6.5
9.8
8.2
11.4
6.8
3.6
5.3
8.6
9.4
7.47.7
12.4
8.2
5.3
7.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
[Consolidated OP]
Billion Yen
1. Quarterly Results
6
The investment development business offset the decrease in
profit of the game business. 7.0 billion yen (down 8.7% YoY)
4.4 4.46.5
9.9 9.17.9
6.78.1 7.0 7.1 6.8
8.19.9
6.1 5.3 5.87.8 7.3 6.4
8.210.1
5.0 5.5
5.5
5.3 6.16.8
6.6
7.9
6.8 7.7 7.6
8.5
8.0
8.57.6
8.67.1 8.4
7.2
8.77.3
1.2 1.2
1.3
1.4 1.5 1.51.6
1.7
1.81.8 2.0
2.02.1
2.1
2.1
2.2 2.22.1
2.1
2.1 2.2
1.4 1.2
1.3
1.2 1.2 1.31.1
1.2
1.11.3 1.2
1.21.2
1.3
1.2
1.3 1.31.7
1.4
1.7 1.4
3.5 3.5
3.9
4.4 4.9 5.05.3
5.8
6.36.4 6.8
7.3
7.5
6.8
7.0
7.07.7
7.0
6.5
7.3 7.73.1
1.4
15.6 16.0
18.7
25.6
23.0 22.621.6
24.9
23.124.6 24.5
27.3
28.9
25.023.4
25.026.3 26.9
23.7
29.7 28.9
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Special incentives
Other*
Sales related costs
Office costs
Personnel
Advertisement cost
[SG&A Expenses] 28.9 billion yenDue to increased marketing expenses of the game business and "WINTICKET".
*Other: Outsourcing expenses, R&D expenses, entertainment expenses etc.
Billion Yen
1. Quarterly Results
7
494 499 578 596 622 624 681 660 667 703 753 767 830 802 844 798 780 754 791 804 799
1,392 1,4011,530 1,539 1,560 1,633
1,802 1,778 1,758 1,754 1,822 1,900 1,881 1,894 1,9641,883 1,819 1,786
1,903 1,871 1,834
1,149 1,139
1,215 1,253 1,272 1,267
1,330 1,346 1,347 1,3491,459
1,453 1,522 1,5541,644
1,6121,643
1,670 1,786 1,826 1,924
263 266
259 267 285 301
357 406 406 425
501503
490 487
601608 596 578
603 605 610
303 297
290 297 296310
335 336 344 330
352350
372 362
369370 366 362
370 374 370
22 21
22 19 1918
18 17 15 15
15 1514 12
1111 11 12
14 13 12
3,623 3,623
3,894 3,971 4,054 4,153
4,523 4,543 4,537 4,576
4,902 4,9885,109 5,111
5,4335,282 5,215 5,162
5,467 5,493 5,549
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Investment Development
Headquarters
Other
Game
Internet Ad
Media
[No. of Employees] Total headcount was 5,549 at the end of December.
headcount
1. Quarterly Results
8
[PL]
*Net profit: Profit attributable to shareholders of parent.Affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc.
1. Quarterly Results
9
million yen FY2021 Q1 FY2020 Q1 YoY FY2020 Q4 QoQ
Net Sales 131,014 115,681 13.3% 120,858 8.4%
Gross profit 35,967 34,064 5.6% 35,157 2.3%
SG&A expenses 28,908 26,331 9.8% 29,788 -3.0%
Operating profit 7,058 7,733 -8.7% 5,369 31.5%
OPM 5.4% 6.7% -1.3pt 4.4% 1.0pt
Ordinary profit 6,932 7,724 -10.2% 5,399 28.4%
Extraordinary income 454 1 24864.6% 0 86727.5%
Extraordinary loss 837 951 -12.0% 255 227.4%
Income before income taxes and non-controlling interests
6,550 6,774 -3.3% 5,144 27.3%
Net profit* 2,930 1,456 101.3% 729 301.9%
[BS]
1. Quarterly Results
10
We maintain a strong financial position.
million yenEnd of
Dec 2020End of
Dec 2019YoY
End ofSept 2020
QoQ
Current assets 193,779 168,150 15.2% 203,674 -4.9%
Cash deposits 96,960 82,508 17.5% 102,368 -5.3%
Fixed assets 58,274 57,993 0.5% 57,047 2.2%
Total assets 252,094 226,195 11.4% 260,766 -3.3%
Current liabilities 85,854 70,591 21.6% 87,867 -2.3%
(Income tax payable) 1,909 2,555 -25.3% 9,458 -79.8%
Fixed liabilities 43,802 44,113 -0.7% 45,220 -3.1%
Shareholders' equity 77,601 72,958 6.4% 78,466 -1.1%
Net Assets 122,436 111,489 9.8% 127,678 -4.1%
FY2021Forecast
2. Forecast
October 2020 - September 2021
11
3.2 6.3 10.8 16.226.7
43.260.1
76.087.0 93.8 96.6
119.5
141.1
162.4
205.2
254.3
310.6
371.3
419.5
453.6
478.5
500.0
-1.6 -0.1 -0.2 -0.1
1.7 2.64.3
5.5 4.6 4.4
9.3
14.317.4
10.3
22.2
32.7
36.7
30.7 30.1 30.8
33.8
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021E
Sales
OP
35.0
Sales 500 billion yen(up 4.5% YoY)
OP 30~35 billion yen (down 11.5%~up 3.3% YoY)
Continue up-front investment in ABEMA
Invest in blog service
Invest in Smartphone
business
12
30.0
2. Forecast
Billion yen
0% 25% 50% 75% 100%
Net profit
Ordinary profit
Operating profit
Sales 131.0B 500B
2.9B
7.0B
6.9B
[Progress to Full-year Forecast]
30B~35B
8B ~10B
*Net profit: Profit attributable to shareholders of parent.Affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc.
30B~35B
20%~24%
29%~37%
13
Q1 off to a good start.
26%
20%~23%
2. Forecast
*
Internet Advertisement
3. Internet Advertisement Business
14
40.5
43.6 43.0
47.8 48.6
52.551.0
55.657.6
61.460.2 61.3 62.2
66.664.3 63.3
67.3
72.7
64.3 64.9
76.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
3. Internet Advertisement Business
[Quarterly Sales] Q1 76.5 billion yen (up 13.8% YoY)Sales recovered from Q3 and Q4 (0.01% and 2.5% increase respectively) and reached a record high.
15
Billion yen
3.58
4.42
3.70
4.27
4.58
5.13
3.96
4.44
5.52
6.37
4.69
4.24 4.23
5.43
5.044.91
5.66
6.72
4.744.52
5.70
8.8% 10.1% 8.6%8.9% 9.4% 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%
7.4% 7.0%7.5%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
OP
OP Margin
Billion yen
3. Internet Advertisement Business
*Quarterly OP and OPM: Special incentives in FY2016 and FY2020 are excluded.16
[Quarterly OP] OP was 5.7 billion yen, OPM 7.5%
[Focus Area]
KIWAMI Prediction LED
17
3. Internet Advertisement Business
Following the release of KIWAMI Prediction AI (ad creative production) and KIWAMI Prediction TD (automatic advertising text generation,) KIWAMI Prediction LED is launched.
KIWAMI Prediction AI
The most advanced LED lighting and high-definition CG backgrounds reproduce a variety of locations
The AI score is immediately shared with the camera operator, who continues shooting until a high score is achieved.
An innovative shooting method uses KIWAMI Prediction AI to predict the advertising effectiveness of shot video and still images in real-time. It continues shooting until the advertising effectiveness is expected to improve.
Technical Capabilities
18
×[Creative] [AI]
3. Internet Advertisement Business
Aiming to expand market share on the strength of the ability to maximize advertising effectiveness.
[Competitive Advantage]
Ad Operations
Maximize Advertising Effectiveness
Game
4. Game Business
19
[Quarterly Sales] Q1 29.9 billion yen (down15.0% YoY) due to seasonal factors of existing titles. It is recovering to the level of Q4 FY2020 in January.
29.727.6
30.6
34.5 34.635.8
33.4
36.3
33.7
40.4
35.536.8 36.3
39.938.2 37.7
35.2
44.8
36.739.0
29.9
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
FY2021FY2020FY2019FY2018FY2017FY2016FY2015FY2014FY2013 or before(For browser games & Others)
<Release Year>
4. Game Business
Billion Yen
GRANBLUEFANTASY2
6BanG Dream! Girls Band Party!
PRINCESS CONNECT!Re:Dive
7
DragaliaLost8
Sengoku Enbu
-KIZNA-1
20
3Dragon Quest MonstersSuper Light
Project SEKAI Colorful Stage! Feat. Hatsune Miku*
5Shadowverse
2.5.7 : ©Cygames, Inc. 3 : © 2014-2019 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. Developed by Cygames, Inc. Publisher: SQUARE ENIX4 : ©BANDAI NAMCO Entertainment Inc. It was jointly developed and is operating by ©BANDAI NAMCO Entertainment Inc. and Cygames, Inc.6 : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved. 8 : ©Nintendo / Cygames Publisher: Nintendo *“Project SEKAI Colorful Stage! Feat. Hatsune Miku”:© SEGA /© Colorful Palette Inc. /© Crypton Future Media, INC. www. .net All rights reserved. Publisher : SEGA CORPORATION**Balloon : Selected major titles only
THE iDOLM@STER CINDERELLA GIRLS STARLIGHT STAGE 4
[Quarterly OP]
*Quarterly OP and OPM: Special incentives in FY2016 and FY2020 are excluded.
1.13 billion yen due to decrease in sales (down 77.8% YoY)
Billion Yen
4. Game Business
21
8.83
8.31
7.51 7.91
8.55
7.47
8.37
10.44
7.58 7.49
6.93 6.45
6.89
5.23 5.64
6.77
4.33
3.19
7.00
5.11
1.13
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
22
[Upcoming Games]
*「NieR Re[in]carnation」: © 2021 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Applibot,Inc.
4. Game Business
To be released in North America & Europe as well
New RPG game “NieR Re[in]carnation” will be released on February 18.Planning & Production by SQUARE ENIX CO., LTD. Development by Applibot, Inc.
23
4. Game Business
The training simulation game “UMA MUSUME Pretty Derby,*” an original IP of Cygames, will be released on February 24.
TV anime “UMA MUSUME Pretty Derby Season 2**”
has been airing since Jan. 4
*“UMA MUSUME Pretty Derby” :©Cygames, Inc. **TV Anime “UMA MUSUME Pretty Derby Season 2”: 2021 Anime “UMA MUSUME Pretty Derby Season 2” Production Committee
[Upcoming Games]
24
Jan. 20Release
4. Game Business
[Upcoming Games] More new games will come out aiming to be successful titles.
To be released on Jan. 27
“London Labyrinth**”
Sumzap, Inc. Original IP
Mystery & Hidden objects game
“IDOLY PRIDE***” Idol management RPG
QualiArts, Inc.
To be released In spring
On airSince Jan. 10
TV Anime“IDOLY PRIDE****”
Cygames, Inc. Original IP
“Princess Connect Re:Dive*” EnglishOperated by Crunchyroll Games
Developed by funplex, Inc.
Dramatic anime RPG
* “Princess Connect Re:Dive” English : © Cygames, Inc. Developed by: funplex, Inc. Service operated by: Crunchyroll Games Available on: iOS/Android** “London Labyrinth : © Sumzup,Inc. ALL Rigts Reserved.*** “IDOLY PRIDE” : © 2019 Project IDOLY PRIDE**** TV Anime ”IDOLY PRIDE” : © 2019 Project IDOLY PRIDE/ Hoshimi Production Available on ABEMA every Sunday at 11 pm starting January 10, prior to terrestrial broadcasting.
Media
5. Media Business
25
0.6
-0.01
-3.0
-5.1
-4.4
-4.9
-4.5
-4.0
-3.3
-4.0
-4.7-5.0
-4.6-4.3
-4.1
-3.6
-5.0
-4.2-4.0
-4.6
-3.9
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
6.0 5.6 5.46.0 6.4
7.1 7.27.6
9.1 9.0 9.3
10.611.411.6
11.2
12.212.2
13.8 13.3
17.6
20.4
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
5. Media Business
[Quarterly Sales] [Quarterly OP]
-3.9 billion yen operating loss in Q1.
26
billion yen
billion yen
*Quarterly OP: Special incentives in FY2016 and FY2020 are excluded.
20.4 billion yen (grew 1.6x YoY)ABEMA related businesses performed well.
5. Media Business
Exceeded 62 million downloads in four and nine months after the launch.
Downloads
62MDL
April 112016
Release
272016 20192017 2018
Apr. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec.
2020
Mar. Jun. Sept. Dec.
2021
10M WAU
1.18
2.67
2.69
4.75
3.52
5.505.68
4.18
5.10
7.29
6.58
5.916.23
5.50
6.28
6.79
9.18
7.32
8.55
10.70
10.27
8.43
13.30
10.59
10.05
9.28
12.69
10.38
8.29
11.98
10.87
14.31
14.90
12.53
13.21
10.38
14.56
13.25
14.03
11.42
14.23
12.83
10.77
12.19
Apr. Jun. Sep. Dec. Mar.
Jun. Sep. Dec. Mar.
Jun. Sep. Dec. Mar.
Jun. Sep. Dec. Mar.
Jun. Sep. Dec.2016 2017 2018 2019 2020
5. Media Business
Growth of WAU*
*WAU: Weekly Active Users
In million
WAU stays at around 12 million.We will increase viewing and billing from overseas in the future.
[ABEMA]
28
29
80K
0.921M Exclusive Content on ABEMA Premium
©AbemaTV, Inc.
5. Media Business
[ABEMA] 0.921 million premium users at the end of December.ABEMA will continue to expand the number of exclusive contents for subscribers.
Special movie co-produced with Toei VideoStreaming started on January 1, 2021
You can’t fool me, Mr.WolfStreaming started November 1, 2020
Dec. 2020Dec. 2017
“ABEMA Premium” Subscribers
30
Live concerts in Oct-Dec
©AbemaTV, Inc.
5. Media Business
[ABEMA] During December quarter, many famous artists performed at the “ABEMA PPV ONLINE LIVE.”
0.41.7
31
0.8
3.5
7.2
13.7
11x
Billion yen
19.2
FY2019 3Q FY2019 4Q FY2020 1Q FY2020 2Q FY2020 3Q FY2020 4Q FY2021 1Q
New Feature “Original EX Data”***
TV commercial was aired during winter holidays. **
5. Media Business
[ABEMA] By stepping up promotions and releasing new functions, the transaction volume of "WINTICKET" has increased about 11 times year over year.
*Quarterly Transaction Amount: Transaction amount of WinTicket, Inc. that operates internet betting system of Keirin races. (includes loyalty point campaign)**WINTICKET’s first TV commercial has been aired from Dec. 22 to Jan. 12. *** WINTICKET launched a new feature that provides 11 types of original data that further improves the racing entries on Oct. 28.
Quarterly Transaction Amount* of "WINTICKET"
32
5. Media Business
[ABEMA] The ABEMA team has been reorganized from FY2021.The two units work to expand the number of "FREE users" and "PREMIUM users" respectively.
ABEMA
1. FBU(Free Business Unit)
Raise WAU base• Service improvement
• Strategic operationand others
2. PBU(Premium Business Unit)
Increase Premium Users• Expand programming lineups
• Enhance marketingand others
Subscription
Advertising
RelatedBusiness etc.
Accelerate monetization by related businesses etc.
while increasing advertising and subscription revenues.
2016
Medium and Long-Term Sales Pipeline
2019
5. Media Business
[ABEMA]
33
FY2021
6. FY2021
34
Game
Ad
Media
Make successful games and enhance the operational capability to run long term games
Aim to increase sales by maximizing advertising effectiveness
Grow ABEMA larger and increase monetization
Grow ABEMA as a medium to long-term pillar.
35
6. FY2021
Aiming to be a company with medium to long-term supporters
7. Reference
Reference
37
• Governance
38
Board of Directors
Four executive directors include a female director
本体役員室
常務執行役員
7. Reference_ Governance
We developed a new structure to strengthen governance and make a clear distinction between management oversight and execution.
Corporate Executive Office
Managing Executive Officers Executive Officers
Four outside directors
Eight executive directors who are higher than senior managing executive officers
39
Outside
Director Nominees
[Directors]
7. Reference_ Governance
Eight directors include three Audit and Supervisory Committee members. Seven male directors and a female director, of which four are outside directors.
Susumu FujitaRepresentative Director
Yusuke HidakaDirector
Go NakayamaDirector
Koichi NakamuraOutside Director
Kozo TakaokaOutside Director
Female
Members of Audit and Supervisory Committee
Toko ShiotsukiDirectorStanding member of Audit and Supervisory Committee
Isao NumataOutside Director
Masao HoriuchiOutside Director
Outside
Outside Outside
40
7. Reference_ Governance
[Executive officers]
41
7. Reference_ Governance
[Executive officers]
42
IR video contents for shareholders and investors
“IR Channel”
https://www.cyberagent.co.jp/en/ir/ir_channel/
AI for Effective Advertising - AI research and business implementation capability of CyberAgent
The evolving ad creative of CyberAgent
5 ways to use “ABEMA”
These short videos cover the latest case studies of AI in the advertising business, as well as the usage scenarios and functions of "ABEMA" in Japan.
https://www.cyberagent.co.jp/en/ir/library/annual/
Integrated ReportCyberAgent Way 2020
Click!!Integrated Report CyberAgent Way 2020
43
“CyberAgent Way 2019” won the Silver award in PDF Version of Annual Report: Internet Service Provider category at the 2020 ARC Awards hosted by MerComm Inc.
FY2021 Q2 earnings release is scheduled to be released at 3 pm or later on Wednesday, April 28, 2021.
The New Normal is a theme of the report whichdescribes CyberAgent's strength in respondingto change, creating new business opportunities,and a new structure that separates supervisionand execution to strengthen governancefurther. Also, to provide increasingly diverseESG information, we started disclosingenvironmental data this fiscal year.