Broadmedia Corporation · TSE:4347

Broadmedia — FY2023 Earnings Presentation

54 slides from Broadmedia's earnings presentation, May 10, 2024

  1. Slide 1: Summary of Financial Results for the Fiscal Year Ended March 31, 2024

    Summary of Financial Results for the Fiscal Year Ended March 31, 2024 Broadmedia Corporation May 10, 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 statements regarding f

  2. Slide 2: Agenda

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  3. Slide 3: Consolidated Financial Results for FY2023

    Consolidated Financial Results for FY2023 (Unit：Million yen)(Amounts are rounded down to the nearest million yen) FY2023 FY2023 Financial existing Rate of Forecasts Achievement FY2022 businesses div and divx FY2023 Difference difference （announced on ratio Results Results Feb. 7, 2024） Revenue 13,02

  4. Slide 4: Changes in Operating Income (year over year)

    Changes in Operating Income (year over year) Q1 Q2 Q3 Q4 Actual results in FY2022 1036 Cumulative totals in FY2022 Actual results in FY2023 844 869 Cumulative totals in FY2023 850 （ Revised forecast 774 on Feb. 7） 552 465 Impact of div and divx （140） 360 308 289 292 261 176 192 24 (Unit：Million yen)

  5. Slide 5: Operating Income for the 4th quarter of the fiscal year

    Operating Income for the 4th quarter of the fiscal year (Year-over-Year) FY202２ Q4 FY2023 Q4 600 ２６１ 24 59 32 400 142 21 Technology 156 200 299 233 Education 0 (34) (73) (7) (60) (14) (192) (200) (277) (400) (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Education Technology

  6. Slide 6: Operating Income for the 4th quarter of the fiscal year

    Operating Income for the 4th quarter of the fiscal year (Year-over-Year) — Breakdown of operating income with div Inc. and divx Inc. shown separately from their respective segments — FY202２ Q4 FY2023 Q4 600 ２６１ 24 166 400 Technology 142 (existing business) 200 Education 363 299 (existing business) 0

  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 FY2022 FY2023 Difference FY2022 FY2023 Difference Education 3,444 4,449 1,004 1,089 1,218 129 （Incl. div impact/goodwill） [176] [（-129）] Media Content 7

  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 FY2022 FY2023 Difference FY2022 FY2023 Difference Education 3,444 4,449 1,004 1,089 1,218 129 （Incl. div impact/goodwill） [176] [（-129）] ＋29％ ＋12％ Exist

  9. Slide 9: Topics (Education): Mito Campus and Okayama Campus opened

    Topics (Education) Renaissance High School Group, The Mito Campus and The Okayama campus opened Mito Campus Okayama Campus The number of eSports program applicants has increased for six consecutive years. The number of facilities for the eSports program and Renaissance Junior High School has increas

  10. Slide 10: Consolidated Financial Results by Business Segment: Education (div impact)

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2022 FY2023 Difference FY2022 FY2023 Difference Education 3,444 4,449 1,004 1,089 1,218 129 （Incl. div impact/goodwill） [176] [（-129）] ＋29％ ＋12％ Exist

  11. Slide 11: Topics (Education): Programming Course Launch

    Topics (Education) Renaissance High School Group Launches Programming Course that Teaches Professional- Level IT Engineering Skills https://www.r-ac.jp/curriculum/course/programming/  Creation of the programming course with the full cooperation of div.  div Inc. plans to open TECH CAMP High School

  12. Slide 12: 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 FY2022 FY2023 Difference FY2022 FY2023 Difference Media Content 736 633 (102) (279) (195) 84 loss (14％) reduced  With the termination of sales to TV st

  13. Slide 13: 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 FY2022 FY2023 Difference FY2022 FY2023 Difference Studio ＆ Production 1,922 1,734 (188) 191 38 (153) (10％) (80％)  In Q1 there was a negative impact aft

  14. Slide 14: 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 FY2022 FY2023 Difference FY2022 FY2023 Difference Broadcast 2,518 2,358 (160) 193 95 (98) (6％) (51％)  Sponsorship revenues are also declining as subscr

  15. Slide 15: 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 FY2022 FY2023 Difference FY2022 FY2023 Difference Technology 4,213 4,745 532 508 542 34 （Incl. divx impact/goodwill） [230] [（-10）] +13％ +7％ Existing Exi

  16. Slide 16: Consolidated Financial Results by Business Segment: Technology (divx impact)

    Consolidated Financial Results by Business Segment (Unit：Million yen)(Amounts are rounded down to the nearest million yen) Revenue Operating income FY2022 FY2023 Difference FY2022 FY2023 Difference Technology 4,213 4,745 532 508 542 34 （Incl. divx impact/goodwill） [230] [（-10）] +13％ +7％ Existing Exi

  17. Slide 17: 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 FY2022 FY2023 Difference FY2022 FY2023 Difference Others 186 257 70 (24) (20) 4 loss +38％ reduced  The Pocket Company posted operating profit due to th

  18. Slide 18: 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 FY2022 FY2023 Difference Corporate expenses (642) (810) (168) 26％ cost increased  There were increases mainly in personnel expenses due to the enhancement of t

  19. Slide 19: 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) Rate of FY2022 FY2023 Difference difference Total assets 9,948 11,890 1,941 ＋20% Liabilities 4,498 5,981 1,483 ＋33% Net assets 5,450 5,909 458 ＋8%

  20. Slide 20: Consolidated Financial Position: Cash flow

    Consolidated Financial Position Condition of Cash flow FY2022 FY2023 Operating cash flow 1,429 1,176 Investing cash flow (331) (915) Financing cash flow (564) (320) Effect of exchange rate change on cash and cash equivalents 14 19 Changes in cash and cash equivalents 547 (40) Year-end balance of cas

  21. Slide 21: Agenda

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  22. Slide 22: Consolidated Financial Forecasts

    Consolidated Financial Forecasts (Unit：Million yen)(Amounts are rounded down to the nearest million yen) FY2023 FY2024 Rate of Difference difference actual results Full-year forecasts Revenue 14,179 17,000 2,821 ＋20% Operating income 869 1,000 131 ＋15% Ordinary income 910 1,000 90 ＋10% Net income 68

  23. Slide 23: Full-year earnings trends and forecasts

    Full-year earnings trends and forecasts （単位：百万円） Revenue Operating income 17,000 17,000 1,200 16,000 1,036 1,000 15,000 1,000 876 884 14,179 14,000 800 13,023 13,000 12,339 600 478 12,000 10,991 400 11,000 10,000 200 9,0000 0 2020 2021 2022 20２3 2024(forecast) 2020 2021 2022 20２3 2024(forecast) Ordi

  24. Slide 24: Agenda

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  25. Slide 25: Capital Allocation Policies

    Capital Allocation Policies Efforts will be made to improve capital efficiency through the allocation of the generated cash flows to growth investments and shareholder return, while also maintaining financial soundness. Cash inflows Cash outflows Surplus fundraising capacity Policy on growth investm

  26. Slide 26: Shareholder Return: Acquisition and cancellation of treasury stock

    Shareholder Return i) Acquisition and cancellation of treasury stock  A resolution on the repurchase and cancellation of treasury stock was passed at a meeting of the Board of Directors held on May 10, 2024. 【 Acquisition of treasury stock】 Total number of acquirable up to 200,000 shares shares (Th

  27. Slide 27: Shareholder Return: Dividends

    Shareholder Return i i) Dividends  In FY2023, we are going to pay a year-end dividend of 33 yen per share (consolidated payout ratio: 35.3%) , as planned at the beginning of the fiscal year.  It will be submitted to the Ordinary General Meeting of Shareholders scheduled in June 2024.  The dividen

  28. Slide 28: Shareholder Return Policy

    Shareholder Return Policy Total return Aim to maintain it at 50% in and after FY2024. Shareholder ratio Return Policy Consolidated dividend payout ratio of dividend 30% to 50%. （ Unit: Millions of yen ） 260 250 150 233 283 184 218 FY2021 FY2022 FY2023 FY2024 results results planned forecasts Annual

  29. Slide 29: Shareholder Return

    Shareholder Return 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 necessa

  30. Slide 30: Agenda

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  31. Slide 31: The Broadmedia Group will grow with sustainable and ethical businesses

    “ The Broadmedia Group will grow with sustainable and ethical businesses. ” ＋ “ We aim for further expansion and higher profitability. ” © 2024 Broadmedia Corporation. All Rights Reserved. 31

  32. Slide 32: Medium-Term Initiatives

    Medium-Term Initiatives “We grow with sustainable and ethical businesses. ”  Promotion of the original combined education business Wide-area online school business, the only school business expanding １ despite the declining birth rate ２ eSports education business, a business whose market is expecte

  33. Slide 33: Medium-Term Initiatives: Revenue trend by Segment (Previous)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （1） Revenue trend by Segment （Previous） Previous ② ① FY 2023 Education Media Content Studio & Production Broadcast Technology Ohters (i) The revenues of each segment had been close to each other. (ii) In recent years, g

  34. Slide 34: Medium-Term Initiatives: Revenue trend by Segment (Future)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （1） Revenue trend by Segment （Future） Previous Future FY 2023 Education Media Content Studio & Production Broadcast Technology Ohters  It is expected that Education and Technology will continue to grow significantly. ©

  35. Slide 35: Medium-Term Initiatives: Operating profit trend by Segment (Previous)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （2） Operating profit trend by Segment （Previous） Previous ０ FY 2023 Education Media Content Studio & Production Broadcast Technology Others  As in revenue, the operating incomes of each segment had been close to each o

  36. Slide 36: Medium-Term Initiatives: Operating profit trend by Segment (Future)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （2） Operating profit trend by Segment （Future） Previous Future ＋α ０ FY 2023 Education Media Content Studio & Production Broadcast Technology Others  Looking ahead, operating income will rise in both Technology and Educ

  37. Slide 37: Medium-Term Initiatives: Operating margin by Segment (Previous)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （3） Operating profit trend by Segment （Previous） Previous 30.0% 20.0% 10.0% 6.1% 0.0% -10.0% FY 2023 -20.0% Education Media Content Studio & Production Broadcast Technology Others Consolidated operating income  The ope

  38. Slide 38: Medium-Term Initiatives: Operating margin by Segment (Future)

    “We aim for further expansion and Medium-Term Initiatives higher profitability.” （3） Operating profit trend by Segment （Future） Previous Future 30.0% 20.0% 10.0% 6.1% 0.0% -10.0% -20.0% FY 2023 Education Media Content Studio & Production Broadcast Technology Others Consolidated operating income The

  39. Slide 39: Initiatives to Improve ROE: ROE trend

    Initiatives to Improve Return on Equity (ROE) “We aim for further expansion and higher profitability.” （4） ROE trend by Segment （Previous） 40.0% 32.5% 28.6% 30.0% 20.0% 16.4% 7.4% 10.0% 15.0% 5.6% 0.0% ROE (results) -10.0% FY2018 FY2019 FY2020 FY2021 FY2022 FY2023  In FY2021, ROE rose to higher tha

  40. Slide 40: Initiatives to Improve ROE: Adjusted ROE

    Initiatives to Improve Return on Equity (ROE) “We aim for further expansion and higher profitability.” （4） ROE trend by Segment （Previous） 40.0% 32.5% 28.6% 30.0% 16.0% 20.0% 16.4% 13.9% 21.9% 11.0% 7.4% 10.0% 15.0% 8.7% 5.6% 0.0% -5.9% ROE (results) Adjusted ROE（※） -10.0% FY2018 FY2019 FY2020 FY202

  41. Slide 41: Initiatives to Improve ROE: Target of 30%

    Initiatives to Improve Return on Equity (ROE) “We aim for further expansion and higher profitability.” （4） ROE trend by Segment （Previous） 40.0% 32.5% Target 28.6% 30％ 30.0% 16.0% 20.0% 16.4% 13.9% 21.9% 11.0% 7.4% 10.0% 15.0% 8.7% 5.6% 0.0% -5.9% ROE (results) Adjusted ROE（※） -10.0% FY2018 FY2019 F

  42. Slide 42: Sustainable and ethical businesses, further expansion and higher profitability

    “ The Broadmedia Group will grow with sustainable and ethical businesses. ” ＋ “ We aim for further expansion and higher profitability. ” (Operating profit ratio 10%, ROE 30%) © 2024 Broadmedia Corporation. All Rights Reserved. 42

  43. Slide 43: Agenda

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  44. Slide 44: Transition to Company with Audit & Supervisory Committee

    Transition to Company with Audit & Supervisory Committee Transition to a company with audit & supervisory committee system, subject to approval of the proposal to amend the Articles of Incorporation at the Ordinary General Meeting of Shareholders scheduled to be held on June 27, 2024. 【Purpose of tr

  45. Slide 45: 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

  46. Slide 46: Agenda: Reference Documents

    Summary of Financial Results for FY2023 Financial Forecasts for FY2024 Capital Allocation and Shareholder Return Medium-Term Initiatives Transition to Company with Audit & Supervisory Committee [Reference Documents] ・ Sustainability (Human Capital) Initiatives ・ Other Topics © 2024 Broadmedia Corpor

  47. Slide 47: 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

  48. Slide 48: Consolidated Financial Results by Business Segment: revenue by income type

    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

  49. Slide 49: Topics (Education): TECH CAMP employment transition school

    Topics (Education) TECH CAMP, an engineer training school, opened an employment transition school specializing in the provision of support for people with developmental disorders. https://tech-camp.in/lps/fukuoka Professional staff members supporting people with developmental disorders and IT educat

  50. Slide 50: Topics (Media Content): Crank In! Video App renewal

    Topics (Media Content) Renewal of the free Crank In! Video App for the Crank In! Video distribution service Every process including renting, purchasing and viewing works is completed through the app. There is a common point system, so points are redeemable for comics as well. © 2024 Broadmedia Corpo

  51. Slide 51: Topics: RIZAP for Nintendo Switch

    Topics (Others; Game Publishing) The RIZAP for Nintendo Switch — Experience Rhythm-based Exercise — software for the Nintendo SwitchTM is scheduled to be released on June 27. (c) RIZAP GROUP, Inc. All Rights Reserved. / (c) RFNS Production Committee Jointly developed under the full supervision of RI

  52. Slide 52: Topics: CYCLOPS athlete gaming changes team name to CAG OSAKA

    Topics (Others; Promotion of Professional eSports) CYCLOPS athlete gaming changes official team name to "CAG OSAKA” We will further strengthen our identity by unifying with the name that has been familiar as a nickname up to now. © 2024 Broadmedia Corporation. All Rights Reserved. 52

  53. Slide 53: Our Mission

    Our Mission We contribute to communities through quality content and services produced by human creativity. © 2024 Broadmedia Corporation. All Rights Reserved. 53

  54. Slide 54: 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 — FY2023 Earnings Presentation on 6ix