Cyberagent Incorporated · TSE:4751

Cyberagent — Q2 FY2009 Earnings Presentation

49 slides from Cyberagent's earnings presentation, May 2009

  1. Slide 1: Table of Contents

    O Table of Contents & CyberAgent Overview of Consolidated Financial Results Consolidated Business Forecast for the Year Ending September 2009 Existing Business (Internet Media Business) Existing Business (Internet Advertising Agency Business) Financial Related Business Ameba Business Summary 00} |N

  2. Slide 2: Second Quarter Highlights - January through March 2009

    Overview of Consolidated Financial Results & CyberAgent Second Quarter Highlights - January through March 2009 —-----------------------, Net sales: Media Business . . ani 10.4% increase from the same i Existing Business ( Advertising Agency Business ) :¥ 22,318million ( uarter of the previous year )

  3. Slide 3: Overview of Consolidated Financial Results

    1 Overview of Consolidated Financial Results & CyberAgent Overview of Consolidated Financial Results i ‘eserved.

  4. Slide 4: Consolidated Financial Results by Quarter

    Overview of Consolidated Financial Results & CyberAgent Consolidated Financial Results by Quarter Units: Million yen Consolidated net sales by quarter 25,000 23,699 5 2371 23.343 53 20,801 21,276 21,746, 19,753 129 20,000 19,362 1 18,803 18,402 8,087 2 7 14,580 15,000 13,887 43,213 19275 2 | 21MB19

  5. Slide 5: Second quarter operating income on Existing Business

    Overview of Consolidated Financial Results & CyberAgent Second quarter operating income on Existing Business: ¥ 1,426million Unit: Million yen Consolidated operating income by quarter 2,500 2,356 2,327 2,105 2,000 |- 1,858 1,500 | 1,501 1,397 1.305 1,463 1,426 541 1,064 Financial Related 1,000 }- 80

  6. Slide 6: Profit and Loss for second quarter of FY 2009

    1 Overview of Consolidated Financial Results & CyberAgent Profit and Loss for second quarter of FY 2009 (compared to the same quarter of the previous year) Units: Million yen Jan-Mar 2009 Jan-Mar 2008 Change Net sales 23,699 21,276 11.4% Gross margin 8,344 7,407 12.7% Gross margin rate 35.2% 34.8% 0

  7. Slide 7: SG&A expenses

    Overview of Consolidated Financial Results & CyberAgent SG&A expenses Unit: million yen Consolidated SG&A expenses by quarter Unit: % 8,000 40.0 7,380 7,216 7,165 7,000 | 6,000 |- 130.0 5,000 |- 4,000 + {20.0 3,000 F 2,000 }- 410.0 1,000 + 0 v0 Oct-Dec Jan-Mar Apr-Jun Jul-Sey Oct-Dec Jan-Mar Apr-Jun

  8. Slide 8: Restraining mid-career recruitment / new college graduates entered in April

    Overview of Consolidated Financial Results & CyberAgent Restraining mid-career recruitment /146 new college graduates entered in April Unit: person Number of Employees in Consolidated Companies 2,500 rr . Percentage distribution by job type 1,966 _ 9012s 036 a 2,000 S| Administ 1,823 1,696 4561 1597

  9. Slide 9: Second quarter of FY 2009: BS

    1 Overview of Consolidated Financial Results & CyberAgent Second quarter of FY 2009: BS (Compared to the previous quarter) Unit: million yen End-Mar 2009 [End-Dec 2008 Change Current assets 49,943 @& 47,001 6.3% h - Best cuehign) 15,955 14,057 13.5% Fixed assets 11,895 11,704 1.6% Total assets 61,83

  10. Slide 10: Consolidated Business Forecast for the Year Ending September 2009

    P. Consolidated Business Forecast for the Year Ending September 2009 & CyberAgent Consolidated Business Forecast for the Year Ending September 2009 i ‘eserved.

  11. Slide 11: Consolidated Business Forecast for the Year Ending September 2009

    Consolidated Business Forecast for the Year Ending September 2009 & CyberAgent Net sales Unit: million yen 100,000 80,000 60,000 40,000 20,000 -20,000 Business Forecast for FY 2009 Net sales ¥ 97billion (11.4% increase from the previous year) Operating income ¥4.7billion (1.5% increase from the prev

  12. Slide 12: Consolidated Business Forecast and Dividends Forecast

    2 Consolidated Business Forecast for the Year Ending September 2009 & CyberAgent Consolidated Business Forecast for the Year Ending September 2009 Consolidated Business Forecast for the Year Ending September 2009 Unit: million yen Net sales Operating Ordinary Net income the year ending September 200

  13. Slide 13: Forecast - Breakout by segments of operating income

    Consolidated Business Forecast for the Year Ending September 2009 & CyberAgent Consolidated Business Forecast for the Year Ending September 2009--Breakout by segments of operating income Unit: million yen Consolidated operating income 8,000 FY 2009 (forecast) FY 2008 (results) ¥ 4,700million ¥ 4,629

  14. Slide 14: Existing Business (Internet Media Business)

    3 Existing Business (Internet Media Business) & CyberAgent Existing Business (Internet Media Business) i eserved.

  15. Slide 15: Media (Advertisement, Fee Collection and Contents)

    Existing Business (Internet Media Business) & CyberAgent . i H Media (Advertisement, sements, Fee Collection and Contents [iggeiicas beds epg. cotcton and Contents) lead to sales increase. ¥6,947 million YW Internet Media usiness Media - Adv re Net sales on media (advertisements, fee collection and

  16. Slide 16: Media (Commerce)

    Existing Business (Internet Media Business) & CyberAgent Media (Commerce) Unit: million yen Sales on media (commerce) by quarter Internet Media Business Media (Commerce) ¥4,538million Q2 FY 2009 total 6,000 ¥ 23,699 million 5,380 5,260 5,000 J” 4,766 W538 4,435 Existin 4,385 4,348 4,315 Businesses 4

  17. Slide 17: Existing Business (Internet Advertising Agency Business)

    4 Existing Business (Internet Advertising Agency Business) & CyberAgent Existing Business (Internet Advertising Agency Business) i ‘eserved.

  18. Slide 18: Sales by products

    Existing Business (Internet Advertising Agency Business) & CyberAgent Sales by products Some categories clients are effected by recession. 7 et Media Business _ . Q2 FY 2009 total Unit: million yen Sales on Internet Advertising Agency Business by quarter 42.000 ¥ 23,699 , million 10,887 11,112>10,86

  19. Slide 19: Productivity by quarter: sales volume per salesperson

    Existing Business (Internet Advertising Agency Business) & CyberAgent Unit: million yen Productivity by quarter: sales volume per salesperson Unit: person 60 300 250 200 150 100 50 0 t-D. Mi: Apr- I t-D. -M Apr- 1 Oct-Dec Jan-Mar Apr-Jun = Jul-Sep Oct-Dec. = Jan-Mar Apr-Jun Jul-Sep Oct-Dec = Jan-Mar

  20. Slide 20: Financial Related Business

    5 Financial Related Business & CyberAgent Financial Related Business served.

  21. Slide 21: Net sales on Investment Development Business

    Financial Related Business & CyberAgent Net sales on Investment Development Business Internet Media Business End-Mar 2009 Operating Investment Q2 FY 2009 total ¥ 23,699 Number of Companies invested 65 (including 5 listed ng ¥, in end-March companies) Securities Balance million ¥ 2,762 million \ Inte

  22. Slide 22: Net sales on FX Business by quarter

    Financial Related Business & CyberAgent Sales on FX Bu ess by qua Stay in the Best group in the oligopolistic market. Unit: million yen Net sales on FX Business by quarter Number of opened accounts: 2,000 7,834 over 70,000. Number of opened accounts: over 60,000. Number of opened accounts: 1,500 + o

  23. Slide 23: Ameba Business

    6 Ameba Business & CyberAgent Ameba Business CyberAgent, Inc. All Rights Reserves d.

  24. Slide 24: Rapid Growth of Ameba Blog Page Views

    Ameba Business & CyberAgent apid Growth of Ameba Blog Page Views (PV) Unit: million page views Monthly page view trends on media "Ameba" 9,000 8,500 8,000 7,500 7,000 6,500|— 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500}- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct N

  25. Slide 25: Celebrity and general bloggers on Ameba

    Ameba Business & CyberAgent More than 90% of celebrity bloggers are using Ameba Positive growth of both celebrity and general bloggers Page view component ratio of celebrities' blogs and general people's blogs More than 4,1 1 0 celebrity bloggers Unit: million page views Unit: % 9,000; 100 Reh -weAs

  26. Slide 26: Net Sales on Ameba Business by quarter

    Ameba Business & CyberAgent Continuous Development in Net Sales and Attempt for Reliable Profitability Net Sales on Ameba Business by quarter the same quarter of 66.2». increase from Unit milion yen . the previous year 800 P y Fy2008 ¥ 1,852 mitiion 650 620 600 | Ameba Business monthly sales on fee

  27. Slide 27: Percentage distribution of Ameba Business sales

    6 Ameba Business & CyberAgent Percentage distribution of Ameba Business sales | Focus on mobile service development and fee collection business Unit: % 100 Percentage distribution of Ameba sales @Advertisements @Fee collection Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 @Aim to achieve 50% in fe

  28. Slide 28: Newly launched fee collection services

    Ameba Business & CyberAgent Newly launched fee collection services ® Communication function "Ameba Pigg" *See p.29-32 for details Started on Feb 19, 2009 @ Premium Members--paid feature expansion service *150-980 Amegold/month. Started on Mar 3, 2009 @) Mobile version of charged skin service Started

  29. Slide 29: Communication function Ameba Pigg

    Ameba Business & CyberAgent Communication function "Ameba Pigg"--More than 200,000 members in about 2 months since the service launch on Feb 19, 2009 Ameba my page exsKe0 ents tA, RT oa PPPOE RP OU Fs-neD @:" = 3° B ba Ameba by cyberAgent ie Aves Ki act owen eo Ee5k eRe oTT PLAST . RTE “oat Th ER MA

  30. Slide 30: Ameba Pigg virtual towns

    CyberAgent Shibuya Asakusa In front of 106 Nakamise-dori The Caribbean Sea Pirate boat The Stone Age B.C./ before volcano

  31. Slide 31: Ameba Business & CyberAgent

    6 Ameba Business & CyberAgent CyberAgent, Inc. All Rights Reserved.

  32. Slide 32: Ameba Pigg dress-up function

    Ameba Business & CyberAgent Communication function "Ameba Pigg"--More than 200,000 members in about 2 months since the service launch on Feb 19, 2009 Clothes and furniture may be purchased at shops. F-NED Dress-up function CyberAgent, Inc. All Rights Reserved.

  33. Slide 33: Services to be Released

    6 Ameba Business & CyberAgent Services to be Released Expansion of fee collection services focusing on mobile <Game & Communication> Mobile version of game/ communication functions ; "Mobile Ameba Pigg (probational)" Planned to be launched.in Jun 2009 Mobile version of communication function "Ameba

  34. Slide 34: Page View Ranking by NetRatings Japan in March 2009

    6 Ameba Business & CyberAgent Page View Ranking by NetRatings Japan, Inc. in March 2009 (PC only) Ranking Unit: thousand page views YAHOO! 17,459,125 2,432,234 Google 2,415,490 You 1,748,687 mixi™.. 1,630,353 & Ameba 1,552,653 yyFe2 1,513,213 msn* 1,000,529 Wecstt: 877,435 =F 52HS 759,341 CyberAgent

  35. Slide 35: Ameba Business targets

    6 Ameba Business & CyberAgent Pursue 10billion page views per month. Planning to restore a month's profitability within this term. Enhancement of mobile and fee collection services. Pursue sales on fee collection equivalent to sales from advertisement business. CyberAgent, Inc. All Rights Reserved.

  36. Slide 36: Summary

    7 Summary & CyberAgent Summary CyberAgent, Inc. All Rights Reserved.

  37. Slide 37: Summary by business

    7 Summary & CyberAgent 1) 2) 3 Advertising Agency Business Ameba Business FX Businessjand others Influenced by recession Positive transition Solid transition We will currently maintain conservative management in response of recession. CyberAgent, Inc. All Rights Reserved.

  38. Slide 38: FY 2009 operating income forecast

    Summary & CyberAgent FY 2009 income With consideration of downturn in economy, Net sales is expected to be 11.4% increase from the previous year. Unit: million yen 8,000 6,000 4,000 2,000 -2,000 Consolidated operating income FY 2008 (result) ¥4,629million Financial Related (FX) Business 2,661 Existi

  39. Slide 39: New Business Established in April

    7 Summary & CyberAgent New Business Established in April 2009 Among the policy of "Deliver Small, Grow Big," we launch new businesses in the fields of high market growth rate. TMN, Inc. Sumzap, Inc. Sells celebrity bloggers’ article ads Mobile game and community Deals with approximately 7,000 celebr

  40. Slide 40: Net sales and operating income outlook

    7 Summary & CyberAgent Net sales 100.000 yen o7000 Aim to expand profit increase rate after next . so.000/---! term by taking advantage of amonth's = | a a je profitability of Ameba this term. ly FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 (forecas

  41. Slide 41: VISION

    7 Summary & CyberAgent VISION We Create The Company that Symbolizes the 21st Century. CyberAgent CyberAgent, Inc. All Rights Reserved.

  42. Slide 42: Reference Materials - Mid-term Performance Progress

    8 Reference Materials & CyberAgent Reference Materials - Mid-term Performance Progress - CyberAgent, Inc. All Rights Reserved.

  43. Slide 43: Trends of net sales, operating income by half year

    Reference Materials & CyberAgent Trends of net sales, operating income by half year Unit: million yen Unit: % 50 50,000 47, 043 45,019 42,078 +} --------------------------------------------------------------------------------5-----+-------------- 9 ------ i ------------- 40 40,000 37,450 ; 30,000 20

  44. Slide 44: FY2009 Second Quarter Total Period (PL)

    8 Reference Materials & CyberAgent FY2009 Overview of the Second Quarter of the Total Period of Consolidation (PL) Units: Million yen Oct 2008 -Mar 2009 Oct 2007 -Mar 2008 Net sales 47,043 42,078 11.8% Gross margin 16,447 15,308 7.4% Gross margin rate 35.0% 36.3% -1.3 points SG&A expenses 14,546 12,

  45. Slide 45: FY2009 Second Quarter Total Period (BS)

    1 Reference Materials & CyberAgent FY2009 Overview of the Second Quarter of the Total Period of Consolidation (BS) Unit: million yen End-Mar 2009 = End-Mar 2008 Change Current assets 49,943 44,867 11.3 % (Cash deposits & securities) 15,955 16,997 “6.1 % Fixed assets 11,895 10,457 13.8 % Total assets

  46. Slide 46: Reference Materials

    8 Reference Materials & CyberAgent Reference Materials served.

  47. Slide 47: Celebrity blog advertising article examples

    Reference Materials & CyberAgent Nile Nel gefeltfeewVailel-) Ele iarew) Post introduction articles of advertisers' products on celebrities blogs © Vocalist: misono's blog article @ Model: Jun Komori's blog article ir Ts CAL Sh BC, sees ead ® Article on mobile service Article on a fastfood product Se

  48. Slide 48: Celebrity blog advertising article examples

    Reference Materials & CyberAgent ENT Nel Svefe (rel we Vettel) MEV eliaveh) Post introduction articles of advertisers' products on celebrities blogs 9 Taiyo Sugiura's blog article ee or cmnman 2477’ 707 Article on a dairy product Section leading to advertiser's campaign page CyberAgent, Inc. All Rig

  49. Slide 49: Function list of Ameba Pigg

    Reference Materials & CyberAgent a te\eVeVater-V EVEL |) Function list of "Ameba Pigg" Community function Chat function Through characters of "Pigg," users may speak to each other. Users may post their self introduction and lead to their blogs. Guppigg Users may compliment other users' "Pigg" fashio

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