Itmedia Inc. · TSE:2148
Itmedia — H1 FY2022 Earnings Presentation
52 slides from Itmedia's earnings presentation, Oct 31, 2022
Slide 1: Earnings Briefing
ITmedia Inc. The Six-Month Period Ended S e p t e m b e r 3 0 , 2 0 2 2 Earnings Briefing October 31, 2022 Securities code: 2148 Tokyo Stock Exchange Prime Market
Slide 2: Forward-looking comments appearing in this material, such as earnings outlooks, are based on
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 comments appearing in this material, such as earnings outlooks, are based on inf
Slide 3: Agenda
Company Overview The Six-Month Period Ended September 30, 2022, Earnings Overview Sustainability Fiscal Year Ending March 31, 2023, Earnings Forecast and Dividend Forecast 3
Slide 4: Corporate mission
Corporate 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 5: Materiality
Materiality Deliver a bright future for humanity through the information revolution 1 Materiality P r o d u c i n g a l a r g e n u m b e r o f e xc e l l e n t I T p r o f e s s i o n a l s , a d v a n c i n g t h e I T industry and spreading technology to improve productivity throughout society an
Slide 6: Materiality
Materiality ¥¥ Social innovation Innovate professional through technology media ¥¥¥ Contribute through information Development of a sustainable society
Slide 7: Typical Key Stakeholders and Value Provided
Typical Key Stakeholders and Value Provided A medium that connects technology buyers and vendors with information & data Value provided Value provided Specialized information on Effective technology contributing to the digital marketing information revolution Image of our typical users and members I
Slide 8: Business Base and Strength
Business Base and Strength Specialized sales force of Ad revenue around 100 people Development of various revenue models leveraging data Programmatic Ad revenue Digital Event 2,000 technology companies revenue as customers Data platform Lead Generation Behavioral data revenue Over 400 million PVs pe
Slide 9: Scale (Snapshot of FY22)
Scale (Snapshot of FY22) Customer/user scale Number of potential Vendor Buyer Number of readers customers Number of customers Profile member 1.1 million 25 million people 7,000companies 2,000companies people 50 million UB Media/data scale Number of Number of Monthly PVs digital events held specializ
Slide 10: Innovation of Marketing Service - Lead Generation
Innovation of Marketing Service - Lead Generation 1 Development of data-leveraging service Introduction of the U.S. advanced digital models 2 Account Quality and quantity of 1st-party data Intent Data Data Contact Data generated by specialized content Product targets Clear intent Contactable to purc
Slide 11: Changes in Our Earnings Structure and Initiatives
Changes in Our Earnings Structure and Initiatives Lead Generation Lead Generation Under Programmatic Lead Generation development Ad Ad Ad Digital Event Expand industrial technology field Lead Generation Lead Generation Lead Generation revenue Redesign platform system (Lead generation Business Platfo
Slide 12: Lead Generation Revenue
Lead Generation Revenue: Successfully Imported and Established the Advanced “Lead Generation” Model in the U.S. Redesigned platform system (LBP) Digital shift within marketing and sales FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 13: Digital Event Revenue
Digital Event Revenue: Projects Undertaken Since FY2009 Have Come to Fruition Pandemic Collaboration with U.S.-based ON24 The market was established in the wake of Pandemic FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 14: Programmatic Ad Revenue
Programmatic Ad Revenue: Responding to the Smart and Social Trend Grew into a iPhone Launched huge media outlet with 300- 400 million PVs per month
Slide 15: Growth Spiral
Growth Spiral Value Demonstration Synergistic revenue growth Perceiving social change in each model Intensively enhancing content Accelerating new development Artificial Cloud and SaaS Lead Generation Digital Event intelligence Programmatic Security Industry DX Data Driven Ad Decarbonization SDGs Hi
Slide 16: Medium-Term Target
Medium-Term Target FY25 Operating Income of ¥4.0 billion 40 FY25 Operating Income (Unit: hundred million yen) W20 40 hundred million yen achieved 20 = Beyond6 8 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY25 X40
Slide 17: Agenda
Company Overview The Six-Month Period Ended September 30, 2022, Earnings Overview Sustainability Fiscal Year Ending March 31, 2023, Earnings Forecast and Dividend Forecast 17
Slide 18: Executive Summary
The Six-Month Period Ended September 30, 2022, Executive Summary Record earnings Continuing growth Revenue Operating income Steady growth ¥4,206 million ¥1,392 million towards achieving (+13%) (+10%) the earnings Lead Generation Business +10% Media Ad Business +16% forecast • Digital shift within ma
Slide 19: Six-Month Earnings
The Six-Month Period Ended September 30, 2022, Earnings Revenue Operating income (Unit: million yen) +¥495 +¥129 million 4,206 million (+13%) (+10%) 1,392 +¥393 1,263 +¥608 million million 3,711 (+45%) (+20%) Operating margin 869 33.1% 3,103 34.0% 28.0% FY20Q2 FY21Q2 FY22Q2 FY20Q2 FY21Q2 FY22Q2
Slide 20: Revenue (by Quarter)
Revenue (by Quarter) (Unit: million yen) Earnings forecast 8,730 Historic Q2 8,092 revenue YoY 6,891 +¥271 5,278 million (+14%) Q2 ¥2,226million 4,703 Q4 YoY change Q3 Q2 +¥271million Q1 (+14%)
Slide 21: Operating Income (by Quarter)
Operating Income (by Quarter) (Unit: million yen) Earnings forecast 2,920 Historic Q2 2,687 revenue 2,022 YoY +¥77million Q2 0, ¥762million (+11%) 881 1,172 0 YoY change Q4 +¥77million Q3 Q2 350 578 630 (+11%) 129 192 Q1
Slide 22: Quarterly Revenue and Operating Income
Quarterly Revenue and Operating Income Quarterly trend will continue in the current fiscal year. Good progress has been made. Revenue Operating income (Unit: million yen) 2,376 2,226 YoY YoY +11% 1,980 +14% 2,003 2,036 630 1,955 FY22 FY22 619 1,755 1,751 FY21 FY21 1,677 533 518 1,501 366 1,425 FY20
Slide 23: Consolidated Statement of Income
Consolidated Statement of Income FY21Q2 FY22Q2 (Unit: million yen) Amount As % of revenue Amount As % of revenue Increase % change Revenue 3,711 100.0% 4,206 100.0% +495 +13.3% Total cost 2,448 66.0% 2,814 66.9% +365 +14.9% (of which are personnel expenses) 1,348 36.3% 1,491 35.5% +143 +10.6% EBITDA
Slide 24: Analysis of Changes in Operating Income
Analysis of Changes in Operating Income Income rose because of growth in revenue. We strengthened content investment in growth fields. Lead Personnel Generation +168 expenses +143 (Unit: million yen) Outsourcing expenses +131 YoY Media Ad +327 Other +091 +¥129million (+10%) Cost increase Revenue gro
Slide 25: Cost Breakdown by Quarter
Cost Breakdown by Quarter (Unit: million yen) 1,675 Q2 YoY change As percent of total 1,503 Total 1,464 +15.3% 100% 1,349 Outsourcing 1,270 1,281 +26.3% 20.3% expenses 1,158 1,177 Other 1,132 +17.4% 27.7% 1,075 Personnel +10.4% 52.0% expenses Main factors behind year-on-year change Personnel expense
Slide 26: Employee Breakdown by Quarter
Employee Breakdown by Quarter (Unit: employees) 392 401 As percent 370 373 Q2 YoY change of total 354 361 337 340 319 325 Total +40 100% Administrative and other (2) 8.2% Technical +2 5.0% 42.4% Sales and planning +12 38.4% 43.0% 38.4% 38.8% 36.4% 37.5% 35.3% 36.9% 34.3% 34.2% Editing +28 48.4% • In
Slide 27: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (Unit: million yen) Main items of operating CF FY21Q2 FY22Q2 Change Income before income tax +1,390 Cash flows from operating Income taxes paid (586) activities 626 727 +100 Decrease in trade and other payables +100 Cash flows from investing activities (9) (12) (
Slide 28: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position At the end At the end of (Unit: million yen) of March 2022 September 2022 Change Current assets 8,728 9,127 +399 Total assets Assets Non-current assets 1,320 1,199 (121) Cash and cash equivalents +398 Total assets 10,048 10,326 +277 Right-of-use assets (
Slide 29: Revenue by Segment
Revenue by Segment 1,786 (Unit: million yen) Lead Generation 1,617 Business YoY +¥168million – Digital shift within (+10%) marketing continued 2,420 Media Ad Business 2,093 YoY – Stronger demand among manufacturing and cloud/SaaS customers because of +¥327million accelerated DX (+16%) – Firm sponsor
Slide 30: Operating Income by Segment
Operating Income by Segment (Unit: million yen) YoY +¥69million (+16%) Operating Lead Generation margin 502 Business 432 367 YoY 190 +¥59million 92 (+7%) Operating Media Ad Business margin
Slide 31: State of KPI: Members and PV
State of KPI: Members and PV for Past 5 Quarters Number of Lead 1 Generation members * Number of PV (monthly average) YoY YoY (Unit: 10,000 people) +100 (Unit: million PV) thousand -73 million people 115 PVs (+9.2%) (-15.1%) 487 413 Other 105 (+5.3%) Netolabo (-20.2%) 1. Members eligible for Lead Ge
Slide 32: Number of Cumulative Customers in Q2
Number of Cumulative Customers in Q2 (Unit: companies) Strengthen contents in cloud/SaaS and industry DX fields Increase in number of customers in each field * Number of companies to which sales were recorded during the period
Slide 33: State of KPI: Customers
State of KPI: Customers Lead Generation Media Ad FY20 FY21 FY22 (Unit: companies) (Unit: companies) * Number of companies to which sales were recorded during the period
Slide 34: Revenue by Revenue Model
Revenue by Revenue Model YoY +¥495 million (Unit: million yen) (+13%) 4,206 3,711 Lead Generation revenue Lead Generation Business 3,103 +¥164 million (+13% YoY) Digital Event revenue +¥118 million (+15% YoY) Media Ad Business Ad revenue +¥212 million (+13% YoY) of which is Programmatic Ad revenue +
Slide 35: Lead Generation Revenue
Lead Generation Revenue (Unit: million yen) YoY +¥164million (+13%) Demand continues to grow Success in strengthening content
Slide 36: Strengthening Content in Fields with Strong Demand
Strengthening Content in Fields with Strong Demand Strengthen content investment to achieve Medium-Term Target X40 ITmedia’s dedicated editing department Cloud and SaaS Overseas media Translation partners partners Industry DX Strengthen content Strengthen ability Focus on higher growth markets to ge
Slide 37: Digital Event Revenue
Digital Event Revenue YoY +¥118 million 931 (Unit: million yen) (+15%) Sponsored Digital shift continued Growth mainly driven by YoY sponsored events +¥114 million (+25%) Commissioned YoY +¥3 million (+1%)
Slide 38: Strengthen Sponsored Digital Event Brands
Digital Event Revenue: Strengthen Sponsored Digital Event Brands Growth of event brands following ITmedia Virtual EXPO Setting flagship event in each business field Enhancing existing brands Expansion of business fields and new events (Related press releases) Expand external ad placements to https:/
Slide 39: Ad Revenue
Ad Revenue YoY +¥212 million (+13%) (Unit: million yen) Smart and social Programmatic ads YoY +¥87 million (+14%) drive growth of which is Programmatic Ad revenue
Slide 40: Ad Revenue: Netolabo—Revenue and PV
Ad Revenue: Netolabo—Revenue and PV Revenue per 1,000 PV (yen) Projections for FY22 Fruits of changing policy since Q3 of FY20 Focused on establishing a brand and Changes in To t a l P V s g r o w t h w i l l s l o w d o w n expanding PV operating policy High profit margin PVs will continue to grow
Slide 41: Agenda
Company Overview The Six-Month Period Ended September 30, 2022, Earnings Overview Sustainability Fiscal Year Ending March 31, 2023, Earnings Forecast and Dividend Forecast 41
Slide 42: Sustainability: Progress in Q2
Sustainability: Progress in Q2 Here is a description of our quarterly progress Sustainability: Priority topics for this fiscal year (announced on April 28, 2022) Done Done Topic Respond to climate change (1) Identify materiality Broaden English Expand decarbonization- (material issues) disclosure re
Slide 43: Sustainability: Progress in Q2
Sustainability: Progress in Q2 Contribute to social innovation as a media outlet Content example Content example A feature article on SDGs The challenge of becoming “The future of society as carbon neutral transformed by corporations” -What should the manufacturing https://www.itmedia.co.jp/news/spe
Slide 44: Sustainability: Progress in Q2
Sustainability: Progress in Q2 Smart work Promote work styles that respect diversity Employees can Expansion of smart work choose to work in Creating an environment in which a system remote locations diverse workf orce can f ulf ill their abilities without anxiety, thereby increasing employees' moti
Slide 45: Agenda
Company Overview The Six-Month Period Ended September 30, 2022, Earnings Overview Sustainability Fiscal Year Ending March 31, 2023, Earnings Forecast and Dividend Forecast 45
Slide 46: Selected as Component of JPX-Nikkei Mid and Small Cap Index
Topics: Selected as a Component of the “JPX-Nikkei Mid and Small Cap Index” ITmedia was selected as a component of the “JPX-Nikkei Mid and Small Cap Index” (From August 31, 2022) We are fully committed to sustainability in response to the heightened expectations of our stakeholders associated with o
Slide 47: Social Topics
Social Topics Weak yen COVID-19 Situation in Ukraine Inflation concerns No sign of calming, and uncertainty increased in the short term Earnings slowdown in some companies, especially major foreign firms Envisioned due to pandemic being gotten under control • Digital shift within marketing will cont
Slide 48: FY22 Consolidated Earnings Forecasts
FY22 Consolidated Earnings Forecasts Steady in 1H Current Increased uncertainty forecasts are in business conditions maintained Temporary cost addition in 2H (Accelerated depreciation of an office *P44) Net income attributable to (Unit: million yen) Revenue Operating income owners of parent Full fis
Slide 49: FY22 Dividend Forecast
FY22 Dividend Forecast (Unit: yen) 56.9% 28.0 41.2% Payout ratio 39.3% 23.0 30.6% No change to our 28.1% 24.6% 24.9% 30.4% 25.3% 25.3% original forecast 16.0 Achieve W20 commemorative For full dividend 10.0 10.0 11.0 Change- 12.0 20-year anniversary fiscal year in-market commemorative commemorative
Slide 50: Medium-Term Target
Medium-Term Target FY25 Operating Income of ¥4.0 billion 40 FY25 Operating Income (Unit: hundred million yen) W20 40 hundred million yen achieved 20 = Beyond6 8 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY25 X40
Slide 51: Contribute to Information Revolution by Innovating Professional Media
Contribute to Information Revolution by Innovating Professional Media
Slide 52: Inquiries
Inquiries ITmedia Inc. Kioicho Building 3-12, Kioicho, Chiyoda-ku, Tokyo 102-0094 Inquiries: [email protected]