Broadmedia Corporation · TSE:4347
Broadmedia — Q3 FY2017 Earnings Presentation
51 slides from Broadmedia's earnings presentation, Apr 13, 2018
Slide 1: Report on a series of materials and Summary of Financial Results
Report on a series of materials announced today and Summary of Financial Results for the First Three Quarters of the Fiscal Year Ended March 31, 2018 Broadmedia Corporation April 13, 2018 1 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 2: Internal investigation and results regarding damages from fictitious transactions
Internal investigation and results with regard to damages from fictitious transactions Establishment of a third-party committee Management responsibility and punitive actions against the management team Submission of quarterly financial results 2 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 3: Damages from Fictitious Transactions Suffered by Fishing Vision
Damages from Fictitious Transactions Suffered by Fishing Vision We received a report from the Internal Investigation Committee with regard to damages suffered by Fishing Vision, a consolidated subsidiary, due to fictitious transactions, which were discovered in January 2018. We will establish a thir
Slide 4: Overview of the internal investigation report on damages from fictitious transactions
Overview of the internal investigation report on damages from fictitious transactions The main points of the investigation report by the Internal Investigation Committee are as follows. The report confirmed that the matter was a case of fraud committed by a company to which Fishing Vision subcontrac
Slide 5: Overview of the situation
Overview of the situation The matter was a case of fraud committed by a company that Fishing Vision subcontracted video production work to. It occurred over ten years, however… ・ When the transactions first started, they were genuine transactions. ・ All documents necessary for the transactions were
Slide 6: Specified facts in the fictitious transactions
Specified facts in the fictitious transactions The total number of transactions related to this matter was 694, with total orders received worth approximately 12.2 billion yen, of which 652 transactions worth nearly 12.0 billion yen were fake. There were genuine transactions at first. However, the n
Slide 7: Involvement of insiders and other fictitious transactions
Involvement of insiders and other fictitious transactions We commenced investigations due to a confession made by an attorney of the subcontractor that the matter was a case of fraud committed by the subcontractor. We conducted investigations mainly through interviews and the inspection of emails an
Slide 8: Reasons why we failed to avoid falling victim to the fraud
Reasons why we failed to avoid falling victim to the fraud The following facts were presented as reasons why we failed to avoid falling victim to the fraud, in addition to the aforementioned cunning methods. No appropriate personnel was assigned to the task of checking delivered items. The inter
Slide 9: Measures for internal controls
Measures for internal controls The report identified inadequacies in some internal control procedures. We will strengthen the administrative system while simultaneously applying corrective measures to inadequacies in internal control. The Company’s involvement in the internal document approval and
Slide 10: Establishment of a third-party committee
Establishment of a third-party committee The report of the Internal Investigation Committee, as a result of its investigation, did not identify any insiders that were involved with respect to the damages from the fictitious transactions. However, there was a request from an insider who had already h
Slide 11: Management Responsibility and Subsidiary Supervisory Responsibility
Management Responsibility and Subsidiary Supervisory Responsibility The matter relates to damages suffered due to a sophisticated fraud, nonetheless, we believe that Fishing Vision has certain responsibilities for allowing the fictitious transactions to occur and for not being able to detect them at
Slide 12: Financial Results and Quarterly Financial Results 1
Financial Results and Quarterly Financial Results 1 Status of the auditing of the financial report for the first three quarters of the fiscal year ended March 31, 2018. ・ Some of the audit procedures have not been completed with regard to the impacts of corrections of past fiscal years’ results on t
Slide 13: Financial Results and Quarterly Financial Results 2
Financial Results and Quarterly Financial Results 2 Report incorporating correction to reports that were submitted in past fiscal years as well as those for the first three months and the first six months ⇒ We are currently in the process of auditing. The report will be submitted before the submissi
Slide 14: Outlook for the future
Outlook for the future An additional investigation will be conducted by the aforementioned third-party committee. Recovery of damages Damages incurred by our group… ・ Appr. 500 million yen recorded as extraordinary loss for direct damages. ・ Incidental expenses incurred for investigation and outside
Slide 15: Summary of Financial Results for the First Three Quarters of the Fiscal Year Ended March 31, 2018
Summary of Financial Results for the First Three Quarters of the Fiscal Year Ended March 31, 2018 Broadmedia Corporation April 13, 2018 The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-
Slide 16: Disclaimer
Disclaimer The audit company has provided us with its quarterly review report today, stating that it will refrain from expressing an opinion with regard to the consolidated quarterly financial statements for the first three quarters of the fiscal year ended March 31, 2018. The company says that it i
Slide 17: Financial Summary for the First Three Quarters of FY2017 Topics
Financial Summary for the First Three Quarters of FY2017 Topics Shareholder Benefit Programs 【Reference Documents】 ・ Results by Business Segment ・ Other Topics 17 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 18: Consolidated Financial Results for the First Three Quarters (April – December)
Consolidated Financial Results for the First Three Quarters (April – December) * Announced on March 14, 2018 Forecasts for FY2016 FY2017 Rate of Difference difference full-year 3Q 3Q financial results (*) Revenue 7,721 8,005 284 4% 10,600 Operating income (8) 70 78 - 50 Ordinary income (79) 56 136 -
Slide 19: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 20: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 21: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 22: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 23: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 24: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 25: 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 FY2016 FY2017 FY2016 FY2017 Difference Difference 3Q 3Q 3Q 3Q Content 1,470 1,556 85 (208) (31) 176 Broadcast 2,339 2,231 (108) 130 74 (55) Studio 2,04
Slide 26: Consolidated Financial Position
Consolidated Financial Position Position of assets, liabilities, (Unit：Million yen) and net assets FY2017 Rate of FY2016 Difference 3Q difference Total assets 7,278 6,326 (952) (13%) Liabilities 4,857 3,438 (1,419) (29%) Net assets 2,420 2,888 467 19% Shareholders’ equity 1,692 2,405 712 42% Stock a
Slide 27: Consolidated Financial Position
Consolidated Financial Position Condition of Cash flow FY2016 FY2017 3Q 3Q Operating cash flow 36 (575) Investing cash flow (86) (221) Financing cash flow 918 (234) Changes in cash and cash equivalents 866 (1,026) Year-end balance of cash and cash equivalents 2,308 1,277 (Unit：Million yen) (Amounts
Slide 28: Consolidated Financial Forecasts
Consolidated Financial Forecasts (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Forecasts for Previously forecast Revised forecast Difference full-year as of April 28, 2017 as of March 14, 2018 Revenue 14,000 10,600 (3,400) Operating income 250 50 (200) Ordinary income 200
Slide 29: Financial Summary for the First Three Quarters of FY2017 Topics
Financial Summary for the First Three Quarters of FY2017 Topics Shareholder Benefit Programs 【Reference Documents】 ・ Results by Business Segment ・ Other Topics 29 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 30: Technology Services
Technology Services We joined UK-based DPP officially in November 2017. We invited DPP to Inter BEE 2017 in November 2017. DPP is promoting the international standardization of IMF, a standard for the distribution of television content and files for storage. The Group supports efforts to popul
Slide 31: Educational Services
Educational Services Renaissance Academy Corporation concluded a sponsor agreement as the top partner of FC Osaka, a professional soccer club, in January 2018. Renaissance Osaka High School provides support to students aspiring to be professional soccer players in collaboration with FC Osaka. 31 © 2
Slide 32: Educational Services
Educational Services Four commuting-based learning courses will be launched in April 2018. eSports course YouTuber development course Preparatory course for university exams using “Studysapuri” materials Dedicated English language course Programming classes and a soccer club will be newly offered. 3
Slide 33: Cloud Gaming Business
Cloud Gaming Business On March 22, 2018, we launched the “I Am an Air Traffic Controller 4 at Haneda 2,” a popular air traffic control simulation game of TechnoBrain Co., Ltd., as a cloud gaming app for enjoyment on smartphones and tablets. 33 © TechnoBrain CO.,LTD. © 2018 Broadmedia Corporation. Al
Slide 34: Content Services Game development／Procurement
Content Services Game development／Procurement In January 2018, Pocket Co., Ltd., a company in which we have a stake, commenced the distribution of “Chiki-Chiki BOXYRACERS,” a gaming app for the Nintendo SwitchTM, in Japan! The company is considering the adoption of online battle functions and distri
Slide 35: Content Services Game development／Procurement
Content Services Game development／Procurement Pocket Co., Ltd., a company in which we have a stake, decided to release “Hifumin’s Shogi School (tentative name) supervised by Mr. Hifumi Kato, a professional Shogi player with 9-Dan ranking,” a 2018 gaming app for the Nintendo SwitchTM! The company com
Slide 36: Content Services
Content Services We launched the service of providing digital comics for smartphones and tablets in March 2018, featuring more than 150,000 volumes including the latest publications as well as much-discussed originals made into movies and anime versions! Users can enjoy original comics as well as mo
Slide 37: Financial Summary for the First Three Quarters of FY2017 Topics
Financial Summary for the First Three Quarters of FY2017 Topics Shareholder Benefit Programs 【Reference Documents】 ・ Results by Business Segment ・ Other Topics 37 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 38: Shareholder Benefit Programs
Shareholder Benefit Programs Partial changes have been made to the content of shareholder benefits for parties who are confirmed as shareholders as of March 31, 2018. We have increased the points for shareholder benefits for shareholders who own 1,000 shares or more but less than 5,000 shares. Share
Slide 39: 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
Slide 40: Financial Summary for the First Three Quarters of FY2017 Topics
Financial Summary for the First Three Quarters of FY2017 Topics Shareholder Benefit Programs 【Reference Documents】 ・ Results by Business Segment ・ Other Topics 40 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 41: Consolidated Financial Results by Business Segment – Content
Consolidated Financial Results by Business Segment – Content - Revenue Operating income FY2016 FY2017 FY2016 FY2017 3Q 3Q Difference 3Q 3Q Difference Content 1,470 1,556 85 (208) (31) 176 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased in
Slide 42: Consolidated Financial Results by Business Segment – Broadcast
Consolidated Financial Results by Business Segment – Broadcast – Revenue Operating income FY2016 FY2017 FY2016 FY2017 3Q 3Q Difference 3Q 3Q Difference Broadcast 2,339 2,231 (108) 130 74 (55) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and operating income
Slide 43: Consolidated Financial Results by Business Segment – Studio
Consolidated Financial Results by Business Segment – Studio – Revenue Operating income FY2016 FY2017 FY2016 FY2017 3Q 3Q Difference 3Q 3Q Difference Studio 2,047 2,001 (45) 155 71 (83) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) In the program sales business, sales of
Slide 44: Consolidated Financial Results by Business Segment – Technology
Consolidated Financial Results by Business Segment – Technology – Revenue Operating income FY2016 FY2017 FY2016 FY2017 3Q 3Q Difference 3Q 3Q Difference Technology 1,413 1,705 291 238 281 42 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased,
Slide 45: Consolidated Financial Results by Business Segment – Network Sales
Consolidated Financial Results by Business Segment – Network Sales – Revenue Operating income FY2016 FY2017 FY2016 FY2017 3Q 3Q Difference 3Q 3Q Difference Network Sales 449 511 61 5 (11) (17) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) The segment recorded a loss beca
Slide 46: Consolidated Financial Results by Business Segment – Corporate expenses
Consolidated Financial Results by Business Segment – Corporate expenses – Operating income FY2016 FY2017 3Q 3Q Difference Corporate (328) (313) 15 expenses (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Expenses pertaining to affiliates incurred in the first half of the p
Slide 47: Topics (Studio Business)
Topics (Studio Business) Adolescence of “Talking Only” Two actors Mahiro Takasugi and Shono Hayama star. Released on Friday, March 2, 2018 ! 47 ©此元和津也（秋田書店）／「セトウツミ」製作委員会 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 48: Topics (Future distribution works)
Topics (Future distribution works) A movie based on a heart-warming story about a girl obsessed with cooking the best-ever ramen noodle soup. “Ramen kuite (I want to eat Ramen)!” To be released progressively at theaters nationwide including Shinjuku Musashinokan from Saturday, March 3, 2018. A live-
Slide 49: Cloud Gaming Business
Cloud Gaming Business On March 8, 2018, we launched “Nobunaga’s Ambition: Sphere of Influence – Ascension,” a popular historical simulation game of Koei Tecmo Games Co., Ltd., as a cloud gaming app. ©コーエーテクモゲームス All rights reserved. 49 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 50: Corporate Philosophy
Corporate Philosophy We aim to contribute to the development of a more affluent community through the dissemination of high quality products and services that are derived from creativity. 50 © 2018 Broadmedia Corporation. All Rights Reserved.
Slide 51: http://www.broadmedia.co.jp/
http://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 th