Itmedia Inc. · TSE:2148
Itmedia — Q3 FY2023 Earnings Presentation
59 slides from Itmedia's earnings presentation, Jan 31, 2024
Slide 1: Earnings Briefing: Nine-Month Period Ended December 31, 2023
Slide 2: ime
ime This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail. Forward-looking statements, such as earnings outlooks, are based on information available when
Slide 3: Agenda
ITmedia ne 1. Business Status and Growth Strategies Business Overview FY23 Q3 Earnings Overview BtoB Media Business BtoC Media Business Initiatives for Growth 2. Measures to Promote Management With an Awareness of Cost of Capital and Share Price 3. Earnings and Dividend Forecasts
Slide 4: Business Status and Growth Strategies: Business Overview
1. Business Status and Growth Strategies Business Overview
Slide 5: Our Mission
ITmedia 7 Our Mission Contribute to Information Revolution by Innovating Professional Media * We believe profession makes media reliability * Technology leads conventional media to innovation + Providing media community as a social knowledge platform
Slide 6: Our Materiality and Contributions to Society
| | Our Materiality and Contributions to Society Social innovation through technology ITmedia ino. Innovate professional media & Contribute through information Development of a sustainable society ©2024 ITmedia Inc. All Rights Reserved
Slide 7: Sustainability Initiatives and Materiality
Business Overview | Sustainability Initiatives and Materiality ©2024 Contributing to the realization of a sustainable society through sustainability initiatives @ Materiality Deliver a bright future for humanity through the information revolution Contributing to the development of humanity by encour
Slide 8: Segments and Revenue Model
Business Overview | Segments and Revenue Model BtoB Media Business (fe Be Revenue model aC) re’ ‘Tmacdiaine. 1 i ' i ' ' i ' Lead Generation revenue Digital Event revenue Ad revenue H Programmatic Ad revenue ' ' i ' . Commissioned Sponsored ! Revenue format + Provide sales leads + Sales of ad slots
Slide 9: One of Japan's Largest Digital Media Content Providers
Pcs Overview | One of Japan’s Largest Digital Media Content Provider re Number of potential (Sellers) (Buyers) iv customers Number of customers =] Profile members Number of readers 7,000 2,000 1.2 25 million people companies companies million people 50 million UB goaiq Number of digital Number of A
Slide 10: Core Company Foundations
re’ Business Overview | Core Company Foundations ‘Tmecdae. re One of the largest media in the BtoB technology market Contribute to digital transformation of Sales and Marketing Data on purchasing behavior for BtoB technology products One of the largest holders of data in Japan that brings technology
Slide 11: Core Company Foundations: Data Holdings
Fosse Overview | Core Company Foundations rm ‘Tmecdae. One of the largest holders of data in Japan that brings technology buyers and sellers together Companies providing technology In-house DX staff / IT buyers Potential Suse Memberreaders — Siterun by ITmedia customers 2,000 companies ag, fl . 1.2
Slide 12: FY07 FY08 FY09
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 13: FY07 FY08 FY09
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 14: FY23 Q3 Earnings Overview
re’ ITmedia ne 1. Business Status and Growth Strategies FY23 Q3 Earnings Overview
Slide 15: Q3 Earnings Overview: Executive Summary
i Q3 Earnings Overview | Executive Summary Decreased revenue and profit. The situation from the first half continues. Impact of market deterioration expected to remain throughout FY23. lenjov €0 ral o = 5 gq wn = fe} o O° o a ay Tmedia Inc Earnings Decreased revenue and profit Revenue: ¥5,769 millio
Slide 16: Understanding the Current Situation
i Q3 Earnings Overview | Understanding the Current Situation Market conditions Digital magketing ting shift surrounding the “rm ™ — Event e pees eee Gen_ on post pandemic — See sae ung el joint PVs * members 2024 ITmedia Inc. All Rights Reserved ‘Tmecdae. 16
Slide 17: Customers in Japan and Foreign Customers
e Customers in = = Digital Events decreased Japan : = Lead Generation , remained flat By edecrnsed | ©2024 ITmedia Inc. All Rights Reserved. and Foreign = customers
Slide 18: Earnings
Toc Q3 Earnings Overview | Earnings Cumulative period Unit: million yen 6,417 BtoB Media Business 4,769 1,169 BtoC Media Business , 1,000 FY22Q3 FY23Q3 ©2024 ITmedia Inc. All Rights Reserved. ig income 1,337 27.1% Operating margin 226 FY23Q3 18
Slide 19: Operating Income Variance Analysis
i Q3 Earnings Overview | Operating Income - Variance Analysis 2024 Decreased revenue and profit. Decreased total cost Cumulative period Unit: million yen 2,171 FY22Q3 Tmedia Inc. All Rights Reserved BtoB Media Business -478 9% BtoC Media Business ~ 69 -14% Revenue decrease Other +13 Cost decrease 1,
Slide 20: Consolidated Statement of Income
ia Q3 Earnings Overview | Consolidated Statement of Income ©202 4 re’ ‘Tmacdiaine. a ~) FY22Q3 FY23Q3 Cumulative period 9 9 Unit: million yen Amount s%0 ot Amount Aste of Increase % change Revenue 6,417 100.0% 5,769 100.0% (647) (10.1)% Total cost 4,245 66.2% 4,205 72.9% (39) (0.9)% (of which are pe
Slide 21: Consolidated Statement of Cash Flows
ia Q3 Earnings Overview | Consolidated Statement of Cash Flows Cumulative period Unit: million yen FY22Q3 FY23Q3 Charge fem operating activities 1,040 808 (231) fem investing activities (32) (122) (89) fem finoncing activities (631) (1,313) (682) cquvelents 375 | (627) | (1,003) Ceeand cash equivale
Slide 22: Consolidated Statement of Financial Position
ia Q3 Earnings Overview | Consolidated Statement of Financial Position At the end of Atthe end of Unit: million yen March 2023 December 2023 Change . Current assets 9,996 9,133 (863) g Non-current assets 1,161 1,301 +140 a Total assets 11,158 10,435 (722) = Current liabilities 1,668 1,078 (589) S No
Slide 23: Revenue (Quarterly)
ia Q3 Earnings Overview | Revenue (Quarterly) Unit: million yen Earnings Forecast 8,092 8,320 co 1 H 1 6,891 1 H 1 1 1 1 1 1 i 1 5,278 u 2,210 4 2,003 ! 1 ° i H 1 1 @ { 1 i) 1 i) 1 a 1 1 L 1 FY19 FY20 FY21 FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved. Decreased revenue 8 ¥1,928 million YoY chang
Slide 24: Operating Income (Quarterly)
ia Q3 Earnings Overview | Operating Income (Quarterly) Unit: million yen YoY -¥267 million (-34%) 2,930 2,687 Earnings Forecast 2,400 a} 2,022 H 1 1 ! 1 I 1 1 7719 1 ! m H | 1,172 511 619 os ft | t 1 3 | = i | ry 1 ——4 ° iu | Qu , FY19 FY20 FY21 FY22 FY23 ©2024 ITmedia Inc. All Rights Reserved. Decr
Slide 25: Revenue and Operating Income by Quarter
ia Q3 Earnings Overview | Revenue and Operating Income by Quarter rm Decreased revenue and profit Revenue Accounting period Unit: million yen 2,335 ‘a FY22 FY22 FY21 FY23 FY21 FY23 FY20 FY20 297 FY19 FY19 192 Qi Q2 Q3 4 Ql Qa Q3 Q4 ©2024 ITmedia Inc. All Rights Reserved. 25
Slide 26: Cost Breakdown by Quarter
FY23 Q3 Earnings Overview | Cost Breakdown by Quarter _ Accounting period 1,675 Unit: million yen 1, 576 YoY change 305 1,464 4 431 ia 1,387 1,401 1,416 Total -1.0% 100% 1,349 1,270 1,281 a Moutsourcing -13.9% 16.6% Ll7 248 aa 233 445 Mother +0.6% 28.5% 178 “0B con 398 xD 404 MPersonnel expenses +2.
Slide 27: Employee Breakdown by Quarter
FY23 Q3 Earnings Overview | Employee Breakdown by Quarter Unit: employees 36.4% 37.5% 35.3% 159 34.3% 7 38.8% 36.9% 34.2% 34.2% 35.5% 199 37.7% percent of total Total +11 100% @ Administrative and other +3 8.8% @ Technical +1 48% i 37.5% 40.3% ® Sales and planning +1 fo Editing +6 48.9% aa Includes
Slide 28: FY17Q3 FY18Q3 FY14Q3
1,965 1,768 1,609 1,423 1,286 1,153 1,188 1,148 1,064 989 693 600 566 495 429 339 337 295 190 FY14Q3 FY15Q3 FY16Q3 FY17Q3 FY18Q3 FY19Q3 FY20Q3 FY21Q3 FY22Q3 FY23Q3
Slide 29: BtoB Media Business
1. Business Status and Growth Strategies BtoB Media Business
Slide 30: BtoB Media Business Earnings
ia Q3 Earnings Overview | BtoB Media Business Earnings Revenue Cumulative period Unit: million yen YoY 5,248 { -¥478 tay, 74,769 FY22Q3 FY23Q3 Tmedia Inc. All Rights Reserved ae BtoB Media Business ye Mrmediaie 1,718 Operating margin FY22Q3 FY23Q3 30
Slide 31: Revenue by Revenue Model
Toc Q3 Earnings Overview | Revenue by Revenue Model BtoB Media Business re Cumulative period Unit: million yen 5,248 Lead Generation revenue Foreign company slows down -¥3 million (-0% YoY) Digital Event revenue Decrease due to the return to in-person activity -¥265 million (-19% YoY) Ad revenue Dec
Slide 32: Digital Event Revenue
i Q3 Earnings Overview | Digital Event Revenue Cumulative period Unit: million yen YoY -¥265 million (-19%) 1,362 Sponsored 717 Commissioned 380 FY2203 FY2303 ©2024 ITmedia Inc. All Rights Reserved. BtoB Media Business re’ rma te. Established market from the pandemic, but special demand subsides 32
Slide 33: FY22 FY23 Q1 cumulative Q2 cumulative Q3 cumulative Q4 cumulative
1,799 FY22 FY23 1,612 1,472 1,346 1,182 1,065 Q1 cumulative Q2 cumulative Q3 cumulative Q4 cumulative
Slide 34: Growth of Subsidiary Hacchu Navi Inc.
i Q3 Earnings Overview | Growth of Subsidiary, Hacchu Navi Inc. @QH#iESE WE 4 BtoB Media Business subsidiary Specialized for system development companies Subscription-type Lead Generation services Expands the number of member companies through freemium model June 2023 4,000 companies May 2022 3,000
Slide 35: Strengthening Specialized Media
Toc Q3 Earnings Overview | Strengthening Specialized Media re ITCLI kK SaaS Information Media “IT Select powered by Hacchu Navi” launched powered by RHESE ITeLI bas: aan ahr Se = M Expert concierges help customers select SaaS products M Provide comparative information and user reviews of IT and SaaS
Slide 36: BtoC Media Business
1. Business Status and Growth Strategies BtoC Media Business
Slide 37: BtoC Media Business Earnings
FY23 Q3 Earnings Overview | BtoC Media Business Earnings BtoC Media Business a* Cumulative period Unit: million yen 1,169 453 e' 38.8% Operating margin 22.6% FY22Q3 FY23Q3 FY22Q3 FY23Q3 ©2024 ITmedia Inc. All Rights Re 37
Slide 38: Netolabo Revenue and PVs
FY23 Q3 Earnings Overview| Netolabo—Revenue and PVs 350 00 Revenue per 1,000 PVs (yen) 250 200 150 COVID-19 pandemic Focused on establishing Change in operating policy a brand and expanding PVs (increase in earnings) Accounting period Disorder in ad market mmm Lb -O=PV Disorder in ad market AVBVBRAU
Slide 39: Initiatives for Growth
1. Business Status and Growth Strategies Initiatives for Growth
Slide 40: Technological Development and Our Growth
ces for Growth} Technological Development and Our Growth Berrie Nex & fa BS : ; — s re 7. is Wearable; a \ we | \ GY Metaverse | bie il > Digital shiftof A \ di sal : society and industries wy YS ei fe Robotics A ~ XRG ye a 4 se \ Ld’es (eDigital twin | | 4 / —-_ ay ’ tegbnaleey” ; Quantum |) 6% = W
Slide 41: Engage with Growth Vectors
Initiatives for Growth| Engage with Growth Vectors Previously Expansion on both buy-side and sell-side he) Manufacturing and Innovation of society IT Electronics Increasingly sophisticated and diverse solutions 22 Innovation of marketing Lead Generation Digital Events Established as a lnnovenonteame
Slide 42: Expansion of Domains x Expansion of Solutions
i for Growth | Expansion of Domains x Expansion of Solutions rm The largest BtoB holders of data that brings “ buyers and sellers together from all industries 2 At Ind ustry DX (media alliance) Expansion of media in industrial fields in response to the expansion of DX “Campaign Central Concept” Cent
Slide 43: New Initiatives: Image of Industrial DX
i a for Growth | New Initiatives: Image of Industrial DX rm Expansion of mutual revenue opportunities through alliances with specialist media of various industries Medical i /pharmaceuticals EI Construction Education Chemistry/materials Agriculture iq Public Smart energy 3 projects Mobility DX Finan
Slide 44: Industry DX Results
| for Growth | Industry DX Results. Expand partnerships into new domains We S47 Rat s+ — Orsztar ih: 10 FRESE ay UF DX¥S7k I= 20281B/135 Via *x “<<: OZSVOVESY «= ©2024 ITmedia Inc. All Rights Reserved aame aw BBR ZEIMUKENKYUKAL MTmediak VARA “ONLINE, THIVT4D cameos ve live S#B8ming 1 agaaox ime TIV2
Slide 45: Industry DX Results
| a for Growth | Industry DX Results rm Expand partnerships into new domains Live Pers +- EEE SIA mm ax \ TDA SERAT I — VE “fh SRUREITRS | Construction IT World m/\ ow Realize partnerships newly Sasi in pharmaceuticals and ZEIMUKENKYUKAL —_, * fooger Se SRA BRB | U7 SF eae | Wag oxbiton SPEMTETSEAt
Slide 46: The Campaign Central Concept
re’ Initiatives for Growth | The Campaign Central Concept ‘Tmacdiaine. Digital Advantage: As data accumulates and becomes more connected, it becomes more valuable. Enhancement of media Improved services for readers and members Event participation Lead Generation Enhancement of Interests | member im
Slide 47: Our Company's Take on AI
i for Growth | Our Company’s Take on Al Asa topic for content Number of Al-related articles published (cumulative) 3,062) 2,575) 2,126 1,884, 1,625, ty 688 » 453 202 Fg FFF WF WF NH i F V 8 34 81 es Development of No.1 media in the Al domain GY NTs desp@ EETimes ‘Al Everywhere, ronan Tmedia Inc. All
Slide 48: Medium-term Targets
re’ Initiatives for Growth | Medium-term Targets ‘Tmecdae. Medium-term Targets to be Reestablished 40 Operating income target FY29 4 0 hundred million yen FY21 FY22 FY23 FY24 FY25 ++ FY29 2024 1T c. All Rights Reserved 48
Slide 49: Measures to Promote Management With an Awareness of Cost of Capital and Share Price
ITmedia ne 1. Business Status and Growth Strategies 2. Measures to Promote Management With an Awareness of Cost of Capital and Share Price 49
Slide 50: FY18 FY19 FY20
10,000 90% 80% 30% 2,000 6.0 70% 5.0 8,000 60% 1,500 20% 4.0 50% 1,000 3.0 40% 6,000 30% 10% 2.0 500 20% 1.0 10% 0% 0 0.0 4,000 0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Stock price Net assets ROE PBR Capital adequacy ratio
Slide 51: Policies and Specific Initiatives for Cost of Capital Management
Cf F esse to Promote Management With an Awareness of Cost of Capital and Share Price | Policies and Specific Initiatives rf ‘Tmacdiaine. Optimizing cost of capital by utilizing funds for business growth and improving capital efficiency Financial strategy Growth strategy IR & sustainability Optimizat
Slide 52: Earnings and Dividend Forecasts
ITmedia ne 1. Business Status and Growth Strategies 3. Earnings and Dividend Forecasts 52
Slide 53: Forecast Overview
Tce and Dividend Forecasts | Forecast Overview re’ ‘Tmecdae. Strengthen new earnings development for the next fiscal year and beyond Return to in-person activity from digital events U.S. technology market growth slowdown (Restructuring) Programmatic Ad market unit price decline ©2024 ITmedia Inc. Al
Slide 54: FY23 Consolidated Earnings Forecast
Tce and Dividend Forecasts | FY23 Revision of Consolidated Earnings Forecast rm ‘Tmacdiaine. + Progressing as expected + Strengthen new earnings development > Current forecasts are for the next fiscal year and beyond maintained Net income attributable to Revenue Operating income owners of parent Uni
Slide 55: Change in Dividend Policy
Cf i and Dividend Forecasts | Change in Dividend Policy rf ‘Tmecdae. Implementing management resource allocation with an awareness of cost of capital and capital efficiency Growth investment as atop Target payout ratio (applicable through FY28) O% or more priority Medium- to long-term dividend incre
Slide 56: Revision of Fiscal Year-End Dividend Forecasts and Future Dividend Plans
Cf Tce and Dividend Forecasts | Revision of Fiscal Year-End Dividend Forecasts and Future Dividend Plans rf ‘Tmacdiaine. Revision of fiscal year-end dividend forecast to ¥100 per share and annual dividend to ¥115 per share 1. Revision of the fiscal year-end dividend forecast Second quarter-end Fisca
Slide 57: FY20 FY21 FY12
136.5% 56.9% 41.2% 30.6% 30.4% 28.1% 39.3% 24.9% 25.3% 25.3% 24.6% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
Slide 58: Contribute to Information Revolution by Innovating Professional Media
Contribute to Information Revolution - by Innovating Professional Media E : a ail : = NE:
Slide 59: ITmedia Inc. Inquiries
ITmedia Inc. Inquiries ITmedia Inc. Kioicho Building 3-12, Kioicho, Chiyoda-ku, Tokyo 102-0094 Inquiries: [email protected]