Broadmedia Corporation · TSE:4347

Broadmedia — Q1 FY2024 Earnings Presentation

43 slides from Broadmedia's earnings presentation, Jul 30, 2024

1. Slide 1: Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025

   Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2025 Broadmedia Corporation July 30, 2024 The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking

2. Slide 2: Summary of Financial Results for Q1 FY2024 / Shareholder Return / Sustainability

   Summary of Financial Results for Q1 FY2024 Shareholder Return Sustainability (Human Capital) Initiatives Topics [Reference Documents] ・Restricted Stock Compensation for Directors ・Other Topics © 2024 Broadmedia Corporation. All Rights Reserved. 2

3. Slide 3: Consolidated Financial Results for the First Quarter (April – June)

   Consolidated Financial Results for the First Quarter (April – June) (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Financial FY2023 FY2024 Rate of Forecasts Achievement Difference difference ratio Q1 Q1 （announced on May 10） Revenue 3,556 4,197 640 ＋18% 17,000 25% Operating

4. Slide 4: Changes in Operating Income (Year-over-Year)

   Changes in Operating Income (Year-over-Year) Q1 Q2 Q3 Q4 1,000 （forecast） Actual results in FY2023 Cumulative totals in FY2023 869 Actual results in FY2024 844 Cumulative totals in FY2024 （forecast） 552 360 292 226 192 24 (Unit：Million yen)(Amounts are rounded down to the nearest million yen) The Gr

5. Slide 5: Operating Income for the 1st quarter of the fiscal year

   Operating Income for the 1st quarter of the fiscal year (Year-over-Year) FY2023 Q1 FY2024 Q1 360 226 700 0 17 Technology 112 15 500 37 48 Education 300 475 394 100 (41) (33) (21) (41) (100) (181) (193) (300) (Unit：Million yen)(Amounts are rounded down to the nearest million yen) 教育 技術 放送 スタジオ・プロダクショ

6. Slide 6: Operating Income for the 1st quarter of the fiscal year (div and divx shown separately)

   Operating Income for the 1st quarter of the fiscal year (Year-over-Year) — Breakdown of operating income with div Inc. and divx Inc. shown separately from their respective segments — FY2023 Q1 FY2024 Q1 360 226 700 112 107 500 300 475 502 100 (100) impact of div (59) div （Education） and divx divx （T

7. Slide 7: Consolidated Financial Results by Business Segment

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 Difference FY2023 FY2024 Difference Q1 Q1 Q1 Q1 Education 1,289 1,661 372 475 394 (80) （Incl. divx impact/goodwill） [202] [(108)] Media Co

8. Slide 8: Consolidated Financial Results by Business Segment: Education

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Education 1,289 1,661 372 475 394 (80) （Incl. divx impact/goodwill） [202] [(108)] ＋29％ （１７

9. Slide 9: Consolidated Financial Results by Business Segment: Education (div Inc.)

   Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Education 1,289 1,661 372 475 394 (80) （Incl. divx impact/goodwill） [202] [(108)] ＋29％ （１７

10. Slide 10: Consolidated Financial Results by Business Segment: Media Content

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Media Content 161 126 (34) (41) (41) 0 （21％） similar level  Entertainment news websites m

11. Slide 11: Consolidated Financial Results by Business Segment: Studio & Production

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Studio ＆ Production 384 359 (24) 0 (33) (32) loss (6％) expanded  The impact of the strike

12. Slide 12: Consolidated Financial Results by Business Segment: Broadcast

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Broadcast 579 582 2 17 37 19 similar level 100％  Subscription fee revenue continues to fa

13. Slide 13: Consolidated Financial Results by Business Segment: Technology

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Technology 1,101 1,298 197 112 48 (64) （Incl. divx impact/goodwill） [170] [(59)] ＋18％ (5７％

14. Slide 14: Consolidated Financial Results by Business Segment: Technology (divx Inc.)

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Technology 1,101 1,298 197 112 48 (64) （Incl. divx impact/goodwill） [170] [(59)] ＋18％ (5７％

15. Slide 15: Consolidated Financial Results by Business Segment: Others

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2023 FY2024 FY2023 FY2024 Difference Difference Q1 Q1 Q1 Q1 Others 40 167 127 (21) 15 36 returning to +3１５％ profit  Game Publishing returned to profi

16. Slide 16: Consolidated Financial Results by Business Segment: Corporate expenses

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Operating income FY2023 FY2024 Q1 Q1 Difference Corporate expenses (181) (193) (12) 7％ cost increased  Personnel expenses increased due to the enhancement of the administrative

17. Slide 17: Consolidated Financial Position

    Consolidated Financial Position Condition of assets, liabilities, and net assets (Unit：Million yen)(Amounts are rounded down to the nearest million yen) FY2024 Rate of FY2023 Difference Q1 difference Total assets 11,890 11,021 (868) (7%) Liabilities 5,981 5,441 (539) (9%) Net assets 5,909 5,579 (329

18. Slide 18: Consolidated Financial Position: Cash flow

    Consolidated Financial Position Condition of Cash flow FY2023 FY2024 Q1 Q1 Operating cash flow (224) (571) Investing cash flow (63) (63) Financing cash flow (248) (477) Effect of exchange rate change on cash and cash equivalents 17 13 Changes in cash and cash equivalents (519) (1,099) Year-end balan

19. Slide 19: Summary of Financial Results for Q1 FY2024 / Shareholder Return / Sustainability

    Summary of Financial Results for Q1 FY2024 Shareholder Return Sustainability (Human Capital) Initiatives Topics [Reference Documents] ・Restricted Stock Compensation for Directors ・Other Topics © 2024 Broadmedia Corporation. All Rights Reserved. 19

20. Slide 20: Shareholder Return; (1) Dividend

    Shareholder Return; (1)Dividend  In FY2023, we paid a dividend of 33 yen per share (consolidated payout ratio: 35.3%).  The dividend forecast for FY2024 is 40 yen per share (consolidated payout ratio: 35.6%). Total Dividend Annual Dividend Payout Ratio （per share） Amount (Consolidated) （millions o

21. Slide 21: Shareholder Return; (2) Cancellation of Treasury Stock

    Shareholder Return; (2) Cancellation of Treasury Stock The Company completed the cancellation of its treasury stock in accordance with the resolution of the Board of Directors on May 10, 2024. 【Cancellation of Treasury Stock】 Total number of shares 414,732 shares cancelled （5.24% of total number of

22. Slide 22: Shareholder Return; (3) Acquisition of Treasury Stock

    Shareholder Return; (3) Acquisition of Treasury Stock Acquisition of treasury stock is ongoing in accordance with the Board of Directors' resolution of May 10, 2024. 【Status of Acquisition of Treasury Stock】（as of June 30, 2024） Total number of acquired 108,900 shares shares （Progress against the up

23. Slide 23: Shareholder Return; (3) Acquisition of Treasury Stock: Extension of Period

    Shareholder Return; (3) Acquisition of Treasury Stock  Extension of acquisition period 【Before change】（Resolution of the Board of Directors dated May 10, 2024） Total number of acquired 200,000 shares (upper limit) Their ratio to the total number of outstanding shares (excluding treasury shares stoc

24. Slide 24: Shareholder Return Policy

    Shareholder Return Policy Our company recognizes that one crucial issue for its management is simultaneously securing competitiveness in our business lines and returning profits to our shareholders. We will continue to provide shareholder returns, considering the need to balance it with investments

25. Slide 25: Summary of Financial Results for Q1 FY2024 / Shareholder Return / Sustainability

    Summary of Financial Results for Q1 FY2024 Shareholder Return Sustainability (Human Capital) Initiatives Topics [Reference Documents] ・Restricted Stock Compensation for Directors ・Other Topics © 2024 Broadmedia Corporation. All Rights Reserved. 25

26. Slide 26: Sustainability (Human Capital) Initiatives

    Sustainability (Human Capital) Initiatives FY2023 FY2023 Percentage of eligible employees taking childcare leave: Percentage of female managers Female employees: 100%, 20.3% Male employees: 85.7% （Target） （Target） 100.0% 20.3% 20.0% 85.7% 16.3% 60.0% Percentage of eligible Percentage of male employe

27. Slide 27: Summary of Financial Results for Q1 FY2024 / Shareholder Return / Sustainability

    Summary of Financial Results for Q1 FY2024 Shareholder Return Sustainability (Human Capital) Initiatives Topics [Reference Documents] ・Restricted Stock Compensation for Directors ・Other Topics © 2024 Broadmedia Corporation. All Rights Reserved. 27

28. Slide 28: Renaissance High School Group Launches Programming Course

    Topics (Education) Renaissance High School Group Launches Programming Course that Teaches Professional- Level IT Engineering Skills Enrollment Is Now Open for the 2024 and 2025 Academic Years  Creation of the programming course with the full cooperation of div.  div Inc. opened TECH CAMP High Scho

29. Slide 29: Programming School TECH CAMP Develops Information I Test Prep Materials

    Topics (Education) Programming School TECH CAMP Develops Information I Test Prep Materials in Collaboration with Yoyogi Seminar Study materials for the new Information I subject in the standardized university entrance exam starting in January 2025. Provides materials that incorporate TECH CAMP’s exp

30. Slide 30: Renaissance High School Yokohama Campus New On-Campus Standard Course

    Topics (Education) Renaissance High School Yokohama Campus New On-Campus Standard Course Launched in July Allows students to enjoy high school life in a relaxed, self-paced learning environment. Offers an original curriculum focused on active learning, free from subject constraints. © 2024 Broadmedi

31. Slide 31: The Japanese Language Teacher National Exam Prep Course Launched

    Topics (Education) The Japanese Language Teacher National Exam Prep Course Launched https://www.rn-ac.jp/course/nihongo-teacher-exam/ Provides strong support with specialized knowledge during exam preparation. Aims to train high-quality Japanese language teachers and increase the number of nationall

32. Slide 32: Thank you for your attention.

    Thank you for your attention. The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by t

33. Slide 33: Reference Documents

    Summary of Financial Results for Q1 FY2024 Shareholder Return Sustainability (Human Capital) Initiatives Topics [Reference Documents] ・Restricted Stock Compensation for Directors ・Other Topics © 2024 Broadmedia Corporation. All Rights Reserved. 33

34. Slide 34: Consolidated Financial Results by Business Segment: Breakdown of Revenue

    Consolidated Financial Results by Business Segment Breakdown of revenue by income type upper row：revenue（Unit：Million yen)(Amounts are rounded down to the nearest million yen) lower row： Composition ratio Breakdown of income Breakdown of revenue from by stock/flow original products/others Total Prod

35. Slide 35: Restricted Stock Compensation for Directors

    Restricted Stock Compensation for Directors  The aim is to give them an incentive to work on the sustainable enhancement of the Company’s corporate value and promote the further sharing of values with the Company's shareholders. The Board of Directors approved the disposal of treasury stock as rest

36. Slide 36: Renaissance High School Group Hosts KITAKU eSPORTS SUMMER FESTIVAL

    Topics (Education) Renaissance High School Group Hosts KITAKU eSPORTS SUMMER FESTIVAL with Support from Osaka’s Kita Ward An exciting eSports event for everyone from elementary to high school students. Aims to showcase the allure of eSports and help energize its future development. © 2024 Broadmedia

37. Slide 37: Esports World Cup

    Topics (Others; Promotion of Professional eSports) Esports World Cup in Saudi Arabia This Summer: Over $60 Million Prize Pool Our team is competing as one of the 28 top teams in the world in the PUBG MOBILE category! Thank you for your enthusiastic support! © 2024 Broadmedia Corporation. All Rights

38. Slide 38: Sponsorship Agreement with eSports place MAKUHARI ACE

    Topics (Others; Promotion of Professional eSports) Sponsorship Agreement signed with eSports place MAKUHARI ACE, an eSports café Partnering in event planning and campaigns hosted by eSports place MAKUHARI ACE. We are hosting eSports events at the café! © 2024 Broadmedia Corporation. All Rights Reser

39. Slide 39: The RIZAP for Nintendo Switch

    Topics (Others; Game Publishing) The RIZAP for Nintendo Switch — Experience Rhythm-based Exercise — software for the Nintendo SwitchTM released on June 27. (c) RIZAP GROUP, Inc. All Rights Reserved. / (c) RFNS Production Committee https://www.pckt.co.jp/rizap/ Experiential rhythm training game joint

40. Slide 40: System Design Development and Career Bank Form Business Alliance

    Topics (Technology) System Design Development Co., Ltd. and Career Bank Co., Ltd. Form a Business Alliance for Stress Check Services Career Bank provides multilingual support and business process expertise, while System Design Development constructs the system. Aims to achieve the nationwide operati

41. Slide 41: DIVX Partners with UPBOND for Technical Collaboration

    Topics (Technology) DIVX Partners with UPBOND for Technical Collaboration Achieves ID integration and centralized customer data management using the Web3-based authentication platform Login3.0. Expands solutions to enhance problem-solving capabilities and accelerate digital transformation (DX). Logi

42. Slide 42: Our Mission

    Our Mission We contribute to communities through quality content and services produced by human creativity. © 2024 Broadmedia Corporation. All Rights Reserved. 42

43. Slide 43: https://www.broadmedia.co.jp/

    https://www.broadmedia.co.jp/ The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looking statements regarding future business performance. This document contains forecasts determined by t

Broadmedia — Q1 FY2024 Earnings Presentation on 6ix