Cyberagent Incorporated · TSE:4751
Cyberagent — Q3 2003 Earnings Presentation
40 slides from Cyberagent's earnings presentation, Aug 13, 2003
Slide 1: Information Meeting for Financial Results of the Third Quarter
September 2003 Information Meeting for Financial Results of the Third Quarter August 13, 2003 CYBER AGENT, LTD. http://www.cyberagent.co.jp/ 1
Slide 2: Contents
Contents Outline of Consolidated Settlements of Quarterly Period Outline of Cyber Agent Business Activities Advertising Agency Business Internet Media Business Opinions, predictions, etc. described in this data are based on our company’s judgment when the data was prepared, and do not guarantee the
Slide 3: Outline of Consolidated Settlements, Third Quarter of September 2003
Outline of Consolidated Settlements The Third Quarter of September 2003 3
Slide 4: Highlights of the Third Quarter of 2003
Highlights of the Third Quarter of 2003 Operating Third Quarter Transferred from preceding investment period to profit income 121 million yen creating period as scheduled Up 37.2% over the same period of EC (Electronic Commerce) Sales the previous year business and mobile related Up 4.7% over the pr
Slide 5: Summary of Consolidated Settlements (Third Quarter)
Summary of Consolidated Settlements (Third Quarter) Sales up 37.2% over the same period of the previous year, transferred from preceding investment period to profit P/L creating period, operating profit 121 million yen Unit (million yen) The 3rd of 2002 The 2nd of 2002 The 3rd of 2003 Apr. ∼ Jun. 20
Slide 6: Changing in Sales and Gross Margin Ratio
Changing in Sales and Gross Margin Ratio Sales exceeded the level of 4 billion yen for the first time for the quarter and gross margin ratio increased to 42.7%. Unit: million yen Sales Gross margin ratio Unit: % Profit creating Preceding investment period period September 2000 September 2001 Septemb
Slide 7: Quarterly Changes in Operating Profit
Quarterly Changes in Operating Profit Operating Profit Up 248 Million Yen over the Previous Quarter Unit: million yen Sale s Ope rating profit Gross margin ratio Unit: % Profit creating Preceding investment period period September 2001 September 2002 September 2003 7
Slide 8: Monthly Changes in Operating Profit
Monthly Changes in Operating Profit Monthly operating profit has been continuously in the black since March, and the gross margin ratio has been at the level of 40% since March Unit: million yen Sales Operating profit Gross margin ratio Unit: % Oct. 2002 Nov. 2002 Dec. 2002 Jan. 2003 Feb. 2003 Mar.
Slide 9: Consolidated Sales and General Administrative Expenses
Consolidated Sales and General Administrative Expenses Personnel costs increased due to increased number of persons by 70 In comparison with the Unit: million yen previous quarter 1,707 Unit: million yen 1,656 1,662 Costs Costs related related to to EC EC 1,318 + Consolidated Consolidated adjustment
Slide 10: Consolidated Number of Directors/Staff Members
Consolidated Number of Directors/Staff Members Increase of 70 persons in comparison with the previous quarter 38 new employees and increased personnel of subsidiary companies expanding business Unit: person 484 By Business Type Internet Internet Media Media Business Business 414 +19 persons 391 CA M
Slide 11: Changes in Business Performance (Sales) by Business Type
Changes in Business Performance (Sales) by Business Type Advertising Agency Business Internet Media Business Advertising Business Unit Media Business Unit Unit: million yen Unit: million yen EC EC Advertising Advertising Jan. - Mar. Apr. - Jun. Jul. - Sep. Oct. - Dec. Jan. - Mar. Apr. - Jun. Jan. -
Slide 12: Sales and General Administrative Expenses and Operating Profit by Business Type
Changes in Sales and General Administrative Expenses and Operating Profit by Business Type Advertising Agency Business Internet Media Business Advertising Business Unit Media Business Unit Sales Sales Total of Sales and general administrative expenses Sales and general administrative expenses Operat
Slide 13: Profit and Loss by Business Division
Profit and Loss by Note: deduction Sales/operating profit are reference values before of internal transaction/consolidated Business Division adjustment account amortization/all company expenses Unit January ∼ March 2003 April ∼ June 2003 (million Projects and yen) Group Companies Sales Operating Pro
Slide 14: MailVision Project
MailVision Project Aiming at black figures through increased sales and cost reduction Monthly Cost Monthly Sales Unit: million yen Advertising EC Unit December March June (million yen) (single (single (single month) month) month) Cost Sales and general administrative expenses Total Cost Oct. Nov. De
Slide 15: MLB Project
MLB Project For the following term, we aim to achieve black figures throughout the term by concentrating on fields where earnings can be expected. Monthly Cost Unit: million yen Monthly Sales Unit December March June (million yen) (single (single (single month) month) month) Cost Sales and general a
Slide 16: Summary of Consolidated Settlements (Third Quarter)
Summary of Consolidated Settlements (Third Quarter) B/S Factor of increased fixed assets is appraisal gain investment securities End of the 3rd of 2002 End of the 2nd of 2002 End of the 3rd of 2003 Unit (million yen) June 30, 2002 March 30, 2003 June 30, 2003 Current assets (Cash on hand and in bank
Slide 17: Changes in Consolidated Cash Flow (Third Quarter)
Changes in Consolidated Cash Flow (Third Quarter) CF from operating activities turned positive and the cash equivalent is an increase of about 226 million yen The 3rd of 2002 The 2nd of 2002 The 3rd of 2003 Unit (million yen) Apr. - Jun. 2002 Jan. – Mar. 2003 Apr. - Jun. 2003 CF from operating activ
Slide 18: Outline of Cyber Agent Business
Outline of Cyber Agent Business 18
Slide 19: Company history and development phases
Unit: million yen Sales Gross margin ratio Initiation period Preceding investment period (3 years) Profit creating period From companies of click No. 1 in sales/profit among Internet advertising companies Annual sales: 15.4 billion yen (expected in September period of 2003) guarantee type advertisin
Slide 20: Future Development
Future Development We made the transition to a profit creating period in March 2003, judging that we established the foundation to produce stable and continuous earnings Aiming at producing profits throughout the September period of 2004 as per the original medium plan, we will cut down on large inv
Slide 21: Business Model
Business Model Customer Customer Individuals Advertisers (corporations) Other companies Other advertising media advertising agencies, representatives sale Charging accounting Internet InternetAdvertising AdvertisingAgency AgencyBusiness Business Electronic Commerce Media representatives, etc. Compan
Slide 22: September Period of 2003
September Period of 2003 Composition image of about 16 billion yen in sales Internet Advertising: about 12 billion yen EC: Other Agencies’ Company’s Advertising about 4 Sale: about 4 Agency Business: billion yen billion yen about 8 billion yen Other Companies’ Company’s Media: Media: 7.2 billion yen
Slide 23: Features of Business Model
Features of Business Model Selling Power: No. 1 in Internet advertising sales Capable of providing solutions for advertisers not limited to media buying Earning Power: gross margin ratio 40% or more As the sales of advertising agency business increase, the gross profit margin ratio of our company’s
Slide 24: Organization Chart
CASEARCH, LTD. Osaka Account Station Account Station Unit method Advertising YMIRLINK. Inc. Business Unit MailVision Project Media Contents Business melma! Project Companies applying equity Organization Chart Kensho-no-tubo Project LifeMile Project CA MOBILE, LTD. Shareholders Board of Directors Axi
Slide 25: Advertising Agency Business
Advertising Agency Business 25
Slide 26: Position of Advertising Agency Business
Position of Advertising Agency Business Customer Customer Individuals Advertisers (corporations) Other companies Other advertising media advertising agencies, representatives sale Charging accounting Internet InternetAdvertising AdvertisingAgency AgencyBusiness Business Electronic Commerce Media rep
Slide 27: Advertising Agency Business
Advertising Agency Business Internet Advertising: about 12 billion yen EC: Other Agencies’ Advertising Company’s Advertising about 4 Sale: about 4 billion yen Agency Agency Business: billion yen about 8 billion yen Business Other Companies’ Company’s Media: Media: 7.2 billion yen 4.8 billion yen 27
Slide 28: Monthly Order Receiving
Advertising Agency Business Monthly Order Receiving The amount of orders received in April decreased, but recovery was made in May and June Unit: million yen Amount of orders received Linear (Amount (Amount ofof orders orders received) received) October 1999 April 2000 October 2000 April 2001 Octobe
Slide 29: Changes in Sales Composition
Advertising Agency Business Changes in Sales Composition Stable development at company’s medium ratio 40% (approx.) Oct. - Dec. Jan. - Mar. Apr. - Jun. Jul. - Sep. Oct. - Dec. Jan. - Mar. Apr. - Jun. 2001 2002 2002 2002 2002 2003 2003 Company’s medium Other companies’ medium Creating costs, etc. Not
Slide 30: Quarterly Productivity per Salesperson
Quarterly Productivity per Salesperson The productivity temporarily decreased in April to June due to assigning of 23 new employees, but recovery is expected in July to September or later Quarterly productivity Unit: person Unit: million yen Number of salespersons Oct. - Jan. - Apr. - Jul. - Oct. -
Slide 31: Sales Component Ratio: Company's Media, Other Companies' Media
Advertising Agency Business Sales Component Ratio Jan. – Mar. 2003 Apr. – Jun. 2003 Increase/decrease YAHOO! Other Companies’ Media MSN GMO Media Site Listing 3 companies DEMAIL Rakuten Media Other other companies’ media CA MOBILE Company’s Media melma! MailVision Kensho-no-tubo LifeMile Other compa
Slide 32: Word Auction Advertisement
Word Auction Advertisement Word Auction advertising sales of Advertising BU Oct. to Dec. of Jan. to March April to June Unit (1,000 yen) 2002 of 2003 of 2003 Google , , , overture , , BTLookSmart Site Listing Total , , , CASERCH, LTD.: Search engine marketing company was established on May 1, 2003.
Slide 33: Internet Media Business
ee CyberAgent Internet Media Business 33
Slide 34: Position of Internet Media Business
Position of Internet Media Business Customer Customer Individuals Advertisers (corporations) Other companies Other advertising media advertising agencies, representatives sale Charging accounting Internet InternetAdvertising AdvertisingAgency AgencyBusiness Business Electronic Commerce Media represe
Slide 35: Internet Media Business
Internet Media Business Internet Advertising: about 12 billion yen Internet Other Agencies’ EC: Company’s Advertising aboutMedia 4 Sale: about 4 Agency Business: billion yen billion yen about 8 billion yen Business Company’s Media: Other Companies’ Media: 7.2 billion yen 4.8 billion yen 35
Slide 36: Internet Media Business: PC (Web & Mail), Mobile
Internet Media Business PC (WEB & Mail) Mobile * Tie-up with News Service Center 36
Slide 37: Changes in Sales Composition Related to Advertising
Internet Media Business Changes in Sales Composition Related to Advertising Advertising related sales show no marked changes in the third quarter Unit: million yen , , , Apr. - Jun. 2002 Jul. - Sep. 2002 Oct. - Dec. 2002 Jan. - Mar. 2003 Apr. - Jun. 2003 Advertising PC (Mail) Advertising PC (WEB) Ad
Slide 38: Quarterly Productivity of Internet Media Business
Quarterly Productivity of Internet Media Business Productivity per employee belonging to the Internet Media Business is about 10 million yen Quarterly productivity Regular and contract employees belonging to the Internet Media Business Unit: million yen Unit: person Oct. - Dec. Jan. - Mar. Apr. - Ju
Slide 39: Mobile Related Sales of Internet Media Business
Mobile Related Sales of Internet Media Business Mobile business is developing smoothly, up 25.3% over the previous period The mobile commerce accounts for 58.1% of the total sales of mobile Unit: million yen , Advertising Commerce Oct. - Dec. Jan. - Mar. Apr. - Jun. Jul. - Sep. Oct. - Dec. Jan. - Ma
Slide 40: Commerce Sales of Internet Media Business
Commerce Sales of Internet Media Business The sales of electronic commerce business are developing smoothly, up 20.0% over the previous period Unit: million yen The mobile commerce business accounts for 61.1% of the total sales of EC , , PC Mobile Oct. - Dec. Jan. - Mar. Apr. - Jun. Jul. - Sep. Oct.