Cyberagent Incorporated · TSE:4751
Cyberagent — Q1 FY2005 Earnings Presentation
39 slides from Cyberagent's earnings presentation, Feb 15, 2005
Slide 1: Results Briefing for the First Quarter of the Year Ending September 30, 2005
Results Briefing for the First Quarter of the Year Ending September 30, 2005 February 15, 2005 CYBER AGENT, LTD. http://www.cyberagent.co.jp The opinions and forecasts contained within this document are based on the judgments of Cyber Agent, Ltd. at the time the document was prepared, so there are n
Slide 2: Table of Contents
Table of Contents zCAJJ Program zOverview of First Quarter Consolidated Financial Results zBusiness Model zMedia Business (CA Network) zAdvertising Business (Internet Advertising Headquarters) zMedium- to Long-Term Outlook Reference Material Company Overview 2
Slide 3: Overview of First Quarter Consolidated Financial Results
Overview of First Quarter Consolidated Financial Results October – December 2004 3
Slide 4: Highlights From First Quarter of Year Ending September 2005
Highlights From First Quarter of Year Ending September 2005 Consolidated net sales increased 9.0% quarter-on-quarter to ¥8,582 million Quarter-on-quarter, EC increased 4.4%, Media rose 12.2% and Advertising grew 11.8% Consolidated operating income declined 39.6% quarter-on-quarter to ¥247 million In
Slide 5: Consolidated Financial Results Summary for Q1: Profit and Loss Statement
Consolidated Financial Results Summary for Q1, Year to Sept. 2005: Profit and Loss Statement Oct-Dec 2004 Jul-Sept 2004 Change Oct-Dec 2003 Change Net sales (¥million) 8,582 7,873 9.0% 5,416 58.5% Gross income from sales (¥million) 3,540 3,284 7.8% 2,389 48.2% Gross margin (%) 41.3 41.7 -0.4 points
Slide 6: Results Forecasts for the Year Ending September 2005
Results Forecasts for the Year Ending September 2005 Consolidated Results Forecasts Consolidated net sales: ¥36.0 billion (year-on-year increase of 34.8%) Operating income: ¥2.3 billion (operating profit margin of 6.4%) Ordinary income: ¥2.3 billion Net income: ¥1.8 billion EPS: 5,535.53 yen Anticip
Slide 7: Net Sales, Operating Income and Gross Margin Rate
Net Sales, Operating Income and Gross Margin Rate Unit: ¥million Net sales were strong; operating income down quarter-on-quarter due to investment in new businesses. Unit: % 10,000 60 9,000 8,582 43.4 7,873 50 8,000 43.1 41.8 41.4 41.2 42.7 44.1 43.4 42.7 41.7 41.3 39.2 38.8 39.6 7,000 35.9 6,334 7,
Slide 8: Results by Business (Net Sales)
Results by Business (Net Sales) Media Business Advertising Business Unit: ¥million CA Network Unit: ¥million Internet Advertising Headquarters 6,000 4,500 5,642 5,500 4,002 5,238 4,000 5,000 3,579 4,713 3,500 4,500 4,300 3,220 4,000 3,896 3,000 2,916 3,500 3,303 2,500 2,263 3,000 2,900 2,104 2,044 2
Slide 9: Consolidated SG&A
Consolidated SG&A SG&A ratio increased 1.9 points over the previous quarter due to aggressive investment in new businesses Unit: 3,500 60.0% 3,292 ¥million 3,000 2,875 50.1% 2,558 50.0% 2,500 44.4% 2,266 43.0% 42.9% 1,662 2,026 41.3%41.6% 1,834 2,000 39.8% 1,707 38.7% 38.4% 40.0% 1,656 37.4% 1,500 3
Slide 10: Number of Employees in Consolidated Companies
Number of Employees in Consolidated Companies Quarter-on-quarter, employees increased by 101; 92 in the Media Business, 6 in the Advertising Business Unit: People 1000 900 900 799 800 734 700 609 600 548 495 500 484 414 400 391 356 360 303 300 247 200 As with the diagram at left, does not include 10
Slide 11: Consolidated Financial Results Summary for Q1: Balance Sheet
Consolidated Financial Results Summary for Q1, Year to Sept. 2005: Balance Sheet Unit: ¥million Dec. 2004 Sept. 2004 Change Dec. 2003 Change Current assets 18,704 18,199 2.8% 14,496 29% (Cash+marketable securities, etc.) 12,795 12,872 -0.6 10,904 17.3 Fixed assets 8,362 8,573 -2.5 4,207 98.8 Total a
Slide 12: Consolidated Financial Results Summary for Q1: Cash Flows
Consolidated Financial Results Summary for Q1, Year to Sept. 2005: Cash Flows Unit: ¥million Oct-Dec 2004 Jul-Sept 2004 Oct-Dec 2003 CF from operating activities -52 200 17 CF from investing activities -53 -745 1,770 CF from financing activities -96 1,199 226 Change in cash and cash equivalents -209
Slide 13: About the CAJJ Program
About the CAJJ Program Ay au | ae ( | CAC apital CACapital uae, (Congraturatnst | ¢Congraturatigne.os_| wor Weel Were M! & CyberAgent 13
Slide 14: New Business Start-Up Program
New Business Start-Up Program CAJJ Program (Cyber Agent Business and Personnel Development Program) As of February 10, 2005 J2 Promotion Standard (Period: 3 – 6 months) J1 Promotion Standard (Period: 6 – 12 months) Gross profit of 5 million yen /month Average quarterly gross profit of 15 million yen
Slide 15: Media Business: Profit & Loss by Business
Profit & Loss by Business As of Dec. 31, 2004 Note 1: Net sales and operating income are reference values before exclusion of amortization of the consolidation adjustment account and internal transactions. Note 2: Kensho no tsubo was absorbed by Media Box in April 2004. Unit 03 / 10 12 04 / 1 3 04 /
Slide 16: CAJJ Program As of December 31, 2004
CAJJ Program As of December 31, 2004 CAJJ Name of Business or Affiliated Company Major Line of Business CA MOBILE, Ltd. Mobile related activities netprice, ltd. Online shopping service Internet Advertising Headquarters Internet advertising agency axiv.com Inc. Manages “EC Navi”, a price comparison w
Slide 17: Topics in the First Quarter and Since
Topics in the First Quarter and Since Oct 2004 Ameba Blog Group opens Shohyo Tsunagari, a book review site, within Ameba Blog CA Mobile provides ring melody services for Spanish imode in conjunction with ACCESS and the content distribution business. Partner with Real Networks on advertisement produc
Slide 18: Businesses of Special Focus in the Year Ending September 2005
Businesses of Special Focus in the Year Ending September 2005 Ameba Blog Group Site Opening: September 16, 2004 A new blog services site with a unique ranking system which returns money to high-quality users. Its major features are a straightforward user interface through which even beginners can ea
Slide 19: Increasing Page Views Through Blogs
Increasing Page Views Through Blogs 19
Slide 20: Business Model
tp_ Business Model & CyberAgent
Slide 21: Business Model
Business Model Advertising Sales Breakdown in the Media Business: Cyber Agent Advertising Business: approx. 40%; Handled Through Other Ad Agencies: approx. 60% Sales Breakdown in the Advertising Business: Cyber Agent / Partner Media: approx. 35%; Other Company Media, Including Listings: approx. 65%.
Slide 22: Media Business
tp_ Media Business CA.network
Slide 23: Media Business Highlights
Media Business Highlights Advertising sales increased 12.2% quarter-on-quarter Balance handled through other ad agencies increased 15.9% quarter-on-quarter E-commerce (EC) sales increased 4.4% quarter-on-quarter Increased revenue for Diva Inc. through incorporating Pand@Leaf and from year-end sales
Slide 24: Media Business: Advertising Sales
Media Business: Advertising Sales Unit: ¥million 3,000 2,500 2,229 2,011 2,075 522 1,901 2,000 597 1,674 512 252 475 1,420 1,382 621 141 359 79 105 1,214 184 202 35 42 832 183 19 30 736 23 764 772 1,000 677 622 640 684 527 158 75 106 108 107 105 78 63 99 680 736 488 498 476 587 578 418 411 0 02 03 0
Slide 25: Sales Performance Directed at Other Ad Agencies
Sales Performance Directed at Other Ad Agencies (Media sales affiliated with non-consolidated Cyber Agent) Quarterly Productivity per Sales Employee Unit: ¥million Net Sales Productivity Per Employee 350 Net sales gained 15.9% quarter-on-quarter 29.9 Increased media value 300 28.7 27.0 26.2 TOPICS 2
Slide 26: Media Business: E-Commerce Sales
Media Business: E-Commerce Sales EC sales improved 4.4% over the previous quarter Unit: ¥million 3,500 3,142 3,009 3,000 2,638 537 474 2,500 2,289 387 1,994 294 858 932 2,000 1,629 205 881 1,518 694 113 1,500 1,238 59 590 27 526 562 1,000 884 476 4 1,677 1,673 297 1,370 1,199 1,301 500 897 990 735 5
Slide 27: Advertising Business
Ea Advertising Business a: CyberAgent
Slide 28: Advertising Business Highlights
Advertising Business Highlights Net sales increased 11.8% quarter-on-quarter Ratio of site listing advertisements increased three points Number of clients climbed 11.5% quarter-on-quarter to 941 companies Penetration of Ameba Job Program: Shortening of period to develop sales power and improvement o
Slide 29: Advertising Business: Internet Advertising Headquarters Sales
Advertising Business: Internet Advertising Headquarters Sales Unit: ¥million 4,000 3,806 3,414 3,083 3,000 2,815 36 39 2,209 39 2,044 2,083 2,000 1,783 1,810 42 29 51 26 57 55 26 57 1,000 56 22 15 3 5 7 2 35 35 36 35 42 40 38 38 34 0 02/10-12 03/1-3 03/4-6 03/7-9 03/10-12 04/1-3 04/4-6 04/7-9 04/10-
Slide 30: Number of Clients
Number of Clients Unit: No. of Number of clients roughly 1.75 times higher than the same quarter of the previous year due to growth in listing advertisements. companies 1,000 941 900 844 800 723 700 641 600 559 481 500 373 379 400 379 300 200 100 0 02/10-12 03/1-3 03/4-6 03/7-9 03/10-12 04/1-3 04/4-
Slide 31: Quarterly Productivity per Sales Employee
Quarterly Productivity per Sales Employee Plan to continue to increase the number of sales employees, but per-employee productivity rose 6.8% quarter-on-quarter. Unit: People Unit: ¥million 98 50 94 100 90 40 43.9 44.4 75 76 43.6 80 40.5 38.7 69 37.9 66 30 37.1 59 53 30.2 29.5 31.5 60 46 20 46 27.4
Slide 32: Medium- to Long-Term Outlook
Medium- to Long-Term Outlook 32
Slide 33: Targeting Net Sales of ¥100.0 Billion
Targeting Net Sales of ¥100.0 Billion 100,000 Unit: ¥million Growth in mobile advertising & e-commerce Development of broadband for mobile devices Growth in PC advertising and e-commerce 36,000 Development of broadband for PCs26,728 20,000 16,202 10,824 6,392 3,276 1,726 2,300 452 -106 -278 -142 19
Slide 34: Structure of ¥100.0 Billion in Sales in the Year Ending September 2008
Structure of ¥100.0 Billion in Sales in the Year Ending September 2008 Commissions, Billing, Etc. Site Listing Advertisements Commissions, Billing, Etc. Site Listing 8.0 b 12.0 b Advertisements 8% 12% Other Media C 2.8 b 10.0 b 1.4 b 480 48.0 b Product 10% Product Sales Year Ended Sept 2008 9.8 b Sa
Slide 35: Profitability: Construction of High Revenue Business Model
Construction of High Revenue Business Model High 2008 Commissions, Profitability Billing ¥8.0 billion Own Media ¥30.0 80 billion Commissions, Billing ¥1.4 billion Product Sales Present Own Media Product ¥40.0 billion ¥8.3 billion Sales Other Media ¥8.4 billion Other Media ¥5.8 billion ¥10.0 billion
Slide 36: ¥100.0 Billion in Sales for the Year Ending September 2008
¥100.0 Billion in Sales for the Year Ending September 2008 Business Growth as an Internet Media Company Further Bolstering of Organization-Building 36
Slide 37: VISION
VISION Growing Into a Company Representative of the 21st Century 37
Slide 38: Reference Material
tp_ Reference Material a: CyberAgent
Slide 39: Company Overview
Company Overview Company Name: CYBER AGENT., LTD. (securities code: 4751) Head Office: Shibuya Mark City West 21F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo CA Network: Shibuya Humax Bldg. 9F, 1-14-6 Dogenzaka, Shibuya-ku, Tokyo Shibuya Nomura Bldg. 2F, 1-10-8 Dogenzaka, Shibuya-ku, Tokyo Ninomiya Bldg. 4