Broadmedia Corporation · TSE:4347

Broadmedia — Q1 FY2018 Earnings Presentation

41 slides from Broadmedia's earnings presentation, Aug 14, 2018

  1. Slide 1: Summary of Financial Results for the First Quarter of FY Ending March 2019

    Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2019 Broadmedia Corporation August 14, 2018 The statements contained here indicate the Company’s current plans, expectations, strategies, and beliefs. Any statements that are not historical facts are forward-looki

  2. Slide 2: Amendment of Financial Results for Prior Years; Financial Summary for Q1 FY2018

    Amendment of Financial Results for Prior Years Financial Summary for the First Quarter of FY2018 【Reference Documents】 ・ Results by Business Segment ・ Topics 2 © 2018 Broadmedia Corporation. All Rights Reserved.

  3. Slide 3: Amendment of financial results for prior years related to Fishing Vision damages

    Regarding amendment of financial results for prior years related to damages from fictitious transactions suffered by Fishing Vision 3 © 2018 Broadmedia Corporation. All Rights Reserved.

  4. Slide 4: As of July 20, amendment of financial results is complete

    Financial Results for the Previous Fiscal Year and Amendment of Financial Results for Prior Years As of July 20, amendment of financial results is complete  We submitted the annual securities report for the fiscal year ended March 31, 2018, which had been postponed  We also amended and submitted a

  5. Slide 5: Change of accounting method associated with damages from fictitious transactions

    FY2017 Financial Results Announced on July 20 Change of accounting method associated with damages from fictitious transactions  Change from initial method of booking a lump-sum allowance for doubtful accounts to method of allocating the amount proportionately to prior years  As a result, we did no

  6. Slide 6: Change of Accounting Method: Initial method

    Change of Accounting Method Initial method of recording losses and changes in accounts receivable–other (receivables) （Announced May 30) 6 © 2018 Broadmedia Corporation. All Rights Reserved.

  7. Slide 7: Change of Accounting Method: Revised method

    Change of Accounting Method Revised method of recording losses （Announced July 20) 7 © 2018 Broadmedia Corporation. All Rights Reserved.

  8. Slide 8: Consolidated Financial Results after amendment

    Consolidated Financial Results after amendment (announced on July 20) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) As a result, we recorded a final profit on a full-year basis in FY2017. 8 © 2018 Broadmedia Corporation. All Rights Reserved.

  9. Slide 9: Action Taken Since July 20

    Action Taken Since July 20 Submission of Improvement Report to the TSE on August 7  We will implement improvement measures to prevent a reoccurrence and strengthen corporate governance and compliance  We will report on the status of improvement in six months (February 2019) Convocation of “continu

  10. Slide 10: Next Steps

    Next Steps Actions to be taken  Because this is a case of fraud, we are proceeding with a criminal complaint.  Regarding damages incurred by our group, the Company will make efforts to obtain refunds, claim damages, etc.  We have also been making progress with the amendment of the consumption/cor

  11. Slide 11: Amendment of Financial Results for Prior Years; Financial Summary for Q1 FY2018

    Amendment of Financial Results for Prior Years Financial Summary for the First Quarter of FY2018 【Reference Documents】 ・ Results by Business Segment ・ Topics 11 © 2018 Broadmedia Corporation. All Rights Reserved.

  12. Slide 12: Consolidated Financial Results for the First Quarter (April – June)

    Consolidated Financial Results for the First Quarter (April – June) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Forecasts for FY2017 FY2018 Rate of Difference difference full-year 1Q 1Q financial results (*) Revenue 2,657 2,764 107 4% 11,700 Operating income 26 (30) (56)

  13. Slide 13: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  14. Slide 14: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  15. Slide 15: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  16. Slide 16: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  17. Slide 17: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  18. Slide 18: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  19. Slide 19: 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 FY2017 FY2018 FY2017 FY2018 Difference Difference 1Q 1Q 1Q 1Q Content 543 588 44 (9) (14) (5) Broadcast 743 722 (21) 45 41 (3) Studio 614 529 (84) 0 (8

  20. Slide 20: Consolidated Financial Position

    Consolidated Financial Position Condition of assets, liabilities, （Unit : Million yen) and net assets FY2018 Rate of FY2017 Difference 1Q difference Total assets 6,535 6,025 (510) (8%) Liabilities 3,859 3,435 (424) (11%) Net assets 2,675 2,589 (85) (3%) Shareholders’ equity 2,187 2,092 (94) (4%) Sto

  21. Slide 21: Consolidated Financial Position: Cash Flow

    Consolidated Financial Position Condition of Cash flow FY2017 FY2018 １Q 1Q Operating cash flow (411) (308) Investing cash flow (58) (22) Financing cash flow 72 (72) Changes in cash and cash equivalents (394) (405) Year-end balance of cash and cash equivalents 1,909 1,211 (Unit：Million yen) (Amounts

  22. Slide 22: Enhancing governance and compliance for sustainable growth

     We are enhancing governance throughout the company and our compliance system, working to achieve our group’s sustainable growth and improve its corporate value.  We aim to increase profit by taking on new challenges and creating opportunities to earn further profits in each segment. 22 © 2018 Bro

  23. Slide 23: 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

  24. Slide 24: Reference Documents: Results by Business Segment, Topics

    Amendment of Financial Results for Prior Years Financial Summary for the First Quarter of FY2018 【Reference Documents】 ・ Results by Business Segment ・ Topics 24 © 2018 Broadmedia Corporation. All Rights Reserved.

  25. Slide 25: Business Segment Results – Content –

    Consolidated Financial Results by Business Segment – Content – Revenue Operating income FY2017 FY2018 FY2017 FY2018 1Q 1Q Difference 1Q 1Q Difference Content 543 588 44 (9) (14) (5) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) In education services, revenue rose due to an

  26. Slide 26: Business Segment Results – Broadcast –

    Consolidated Financial Results by Business Segment – Broadcast – Revenue Operating income FY2017 FY2018 FY2017 FY2018 1Q 1Q Difference 1Q 1Q Difference Broadcast 743 722 (21) 45 41 (3) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and operating income declined

  27. Slide 27: Business Segment Results – Studio –

    Consolidated Financial Results by Business Segment – Studio – Revenue Operating income FY2017 FY2018 FY2017 FY2018 1Q 1Q Difference 1Q 1Q Difference Studio 614 529 (84) 0 (8) (9) (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased, as sales of p

  28. Slide 28: Business Segment Results – Technology –

    Consolidated Financial Results by Business Segment – Technology – Revenue Operating income FY2017 FY2018 FY2017 FY2018 1Q 1Q Difference 1Q 1Q Difference Technology 535 628 93 86 100 14 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Solutions and services handled expanded. B

  29. Slide 29: Business Segment Results – Network Sales –

    Consolidated Financial Results by Business Segment – Network Sales – Revenue Operating income FY2017 FY2018 FY2017 FY2018 1Q 1Q Difference 1Q 1Q Difference Network Sales 219 295 75 (0) 12 12 (Unit：Million yen) (Amounts are rounded down to the nearest million yen) Both revenue and income increased, a

  30. Slide 30: Business Segment Results – Corporate expenses –

    Consolidated Financial Results by Business Segment – Corporate expenses – Operating income FY2017 FY2018 Difference 1Q 1Q Corporate (96) (161) (65) expenses (Unit：Million yen) (Amounts are rounded down to the nearest million yen) The results reflect the temporary expenses (around 70 million yen) inc

  31. Slide 31: Educational Services: Programming x Intensive English Course

    Educational Services Launch of Programming x Intensive English Course by Renaissance High School Group, announced in June 2018 Supporting the acquisition of skills required by society 31 © 2018 Broadmedia Corporation. All Rights Reserved.

  32. Slide 32: Educational Services: SHADOWVERSE Event at Renaissance Osaka High School

    Educational Services Holding of “SHADOWVERSE” ES (Event Support) at Renaissance Osaka High School on July 28, 2018 Participation award emblem Emeralda, Demonic Officer A competitive online trading card game that can be played on a smartphone, developed and launched by Cygames in 2016 with a mind to

  33. Slide 33: Educational Services: Opening of Nagoya Sakae Campus

    Educational Services Opening of Nagoya Sakae Campus in Nagoya Sakae on August 1, 2018 in partnership with Renaissance Toyota High School Plan to launch a YouTuber and e-sports programmer course 33 © 2018 Broadmedia Corporation. All Rights Reserved.

  34. Slide 34: Educational Services: Partnership with Yoyogi Animation Gakuin

    Educational Services Formation of education services partnership between Renaissance High School Group and Yoyogi Animation Gakuin on August 3, 2018 “YOANI” will share the knowhow accumulated over 40 years with Renaissance high school students! Provision of affordable 1-week course in animation and

  35. Slide 35: Cloud Gaming Business: Distribution of PHOTON 3

    Cloud Gaming Business Start of distribution of PHOTON３ , A 3D prism action puzzle on Amazon Fire TV and G-cluster platforms on June 28 (Thur) 35 ©SMILEAXE Co., Ltd. All Rights Reserved. © 2018 Broadmedia Corporation. All Rights Reserved.

  36. Slide 36: Cloud Gaming Business: Launch of Asonde Manabu!

    Cloud Gaming Business Launch of Asonde Manabu!, an intellectual training app for young children, on Amazon Fire TV and G-Cluster platforms Start of distribution from July 5 (Thur) 36 ©UNI-TY INC © 2018 Broadmedia Corporation. All Rights Reserved.

  37. Slide 37: Cloud Gaming Business: Boku Wa Kokukanseikan 4 Centrair

    Cloud Gaming Business Launch of air traffic control puzzle game Boku Wa Kokukanseikan 4 Centrair - a cloud gaming app for smartphones and tablets - July 26 (Thur)! 37 © TechnoBrain CO.,LTD. © 2018 Broadmedia Corporation. All Rights Reserved.

  38. Slide 38: Film On Wings of Eagles, Theatrical Distribution

    Theatrical Distribution Film On Wings of Eagles, which tells the heroic story of the “later life” of the legendary gold medalist from the deeply moving Academy- Award winning film Chariots of Fire, is to be released progressively at theaters nationwide including Yurakucho Subaru-za from July 14 (Sat

  39. Slide 39: Film La Mélodie, Theatrical Distribution

    Theatrical Distribution Film La Mélodie, which tells the story of a frustrated violinist and children who find their dream rehearsing on the rooftops in Paris is to be released progressively at theaters nationwide, including Human Trust Cinema Yurakucho Shinjuku Musashinokan and Yebisu Garden Cinema

  40. Slide 40: Corporate Philosophy

    Corporate Philosophy We aim to contribute to the development of a more affluent community through the dissemination of high quality products and services that are derived from creativity. 40 © 2018 Broadmedia Corporation. All Rights Reserved.

  41. Slide 41: http://www.broadmedia.co.jp/

    http://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 th

Broadmedia — Q1 FY2018 Earnings Presentation on 6ix