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8.
1. Overview of Full-year Results
Internet Advertisement Business
2. Business Forecast for FY2018
Game Business
Media Business
Summary
3.
4.
5.
6. New Business Field
7.
0. Table of Contents
・Overview of Quarterly Results・AbemaTV・Market Data
References
1
Overview of Full-year Results
(Oct.2016 – Sep. 2017)
2
1. Overview of Full-year Results
Game
FY2017Results
Media
Ad
Sales: 371.3 billion yen up 19.5% YonY
OP: 30.7 billion yen (existing business* 51.6B yen, AbemaTV etc. -20.9B yen)
AbemaTV 18months after launch, about 5 million WAU**
Sales: 25.6 billion yen up 17.0% YonY
OP: -18.5 billion yen (Incl. AbemaTV etc. -20.9B yen)
Outpace the market growth, driven by smartphone adsSales: 208.1 billion yen up 18.7% YonY
OP: 18.7 billion yen up 23.5% YonY
Major titles performed well, expanding market shareSales: 140.3 billion yen up 14.4% YonY
OP: 26.5 billion yen down 13.0% YonY
3*Existing business: Internet Advertisement, Game and Ameba in Media and Investment Development business, etc. **WAU: Weekly Active User
Marked a record high sales and OP of existing business*
1. Overview of Full-year Results
3.2 6.3 10.8 16.226.7
43.2
60.176.0
87.093.8 96.6
119.5
141.1
162.4
205.2
254.3
310.6
371.3
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
371.3 billion yen (up19.5% YonY)
Record high resultsSucceeded in shifting
to smartphone
[Full-year Consolidated Sales]
Unit: billion yen
4
1. Overview of Full-year Results
-1.6 -0.1 -0.2 -0.1
1.7 2.64.3
5.5 4.6 4.4
9.3
14.3
17.4
10.3
22.2
35.0
46.7
51.6
-2.2
-9.9
-20.9
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
OP of existing businesses ( Internet Advertisement, Game, Ameba in Media, Investment Development Business, etc.)
OP of up-front investment (AbemaTV, Inc. etc.)
10.4% up YonY
OP of existing business 51.6 billion yen
Marked a record high
30.7B
Unit: billion yen
[Full-year Consolidated OP]
5
1. Overview of Full-year Results
Unit: million yen FY2017 FY2016 YonY
Net Sales 371,362 310,665 19.5%
Gross profit 122,976 112,928 8.9%
SG&A expenses 92,276 76,138 21.2%
Operating profit 30,700 36,790 -16.6%
OPM 8.3% 11.8% -3.6points
Ordinary profit 28,741 35,341 -18.7%
Extraordinary income 668 5,212 -87.2%
Extraordinary loss 4,731 5,935 -20.3%
Income before income taxes and non-controlling interests 24,678 34,619 -28.7%
Net profit* 4,024 13,612 -70.4%
[PL]
*Net profit: Profit attributable to shareholders of parent.Affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc. 6
1. Overview of Full-year Results
Unit: million yen End of Sep 2017 End of Sep 2016 YonY
Current assets 117,010 114,647 2.1%
Cash deposits 46,614 51,774 -10.0%
Fixed assets 46,998 41,950 12.0%
Total assets 164,009 156,597 4.7%
Current liabilities 62,799 62,137 1.1%
( Income tax payable) 5,374 11,169 -51.9%
Fixed liabilities 2,423 1,845 31.3%
Net assets 98,785 92,614 6.7%
[BS]
7
1. Overview of Full-year Results
5.8%5.1%
7.5%
5.2%
4.4%
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
[DOE* FY2017]
Changes in DOE
*DOE:Dividend on Equity(ROE×Dividend payout ratio)
4.0%
5.2%
(Planned dividend)
***
8
Increased dividend from 25 yen to 32 yen** to achieve DOE at 5.2%(Total dividends paid will rise from 3.1 billion yen to 4 billion yen)
**Dividend of FY2017:We plan to discuss a surplus disposal plan at the annual General meeting of Shareholders to be held in December 2017.***To celebrate the market shift to the Tokyo Stock Exchange, commemorative dividend was conducted in FY2014.
1. Overview of Full-year Results
Business Forecast for FY2018
(Oct. 2017 – Sep. 2018)
2. Business Forecast for FY2018
9
3.2 6.3 10.8 16.226.7
43.2
60.1
76.087.0
93.8 96.6
119.5
141.1
162.4
205.2
254.3
310.6
371.3
420.0
-1.6 -0.1 -0.2 -0.1
1.72.6
4.35.5
4.6 4.4
9.3
14.3
17.4
10.3
22.2
32.7
36.7
30.7 30.0
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018E
Sales
OP
Remain in the up-front investment period for AbemaTV following FY2017
2. Business Forecast for FY2018
Sales 420.0 billion yen (up 13.1% YonY)
OP 30.0 billion yen (down 2.3% YonY)
Invest in Smartphone business Strengthen up-front
investment in AbemaTVInvest in
Blog service
10
Unit: billion yen
FY2017 FY2018
Up 12% YonY
Keep up-front investment
FY2017FY2018
2. Business Forecast for FY2018
*Omit Investment Development Business, Other Business and inter-segment transfers.
[OP outlook by segment*]
Game
Internet Ad
Media ¥2.3B
¥26.5B
¥18.7B
Up-front Investment
ー¥20.9B ー¥20.0B
¥50.0B
Up-front Investment
ー¥20.0B
Existing Business
Game
Internet Ad
Media ¥3.0B
¥26.0B
¥21.0B
Up-front Investment
11
Conservative,consider volatility
Unit: million yen FY2018E FY2017 YonY
Net Sales 420,000 371,362 13.1%
Operating profit 30,000 30,700 -2.3%
Ordinary profit 28,000 28,741 -2.6%
Net profit* 5,000 4,024 24.2%
Dividend 32 yen 32 yen 0.0%**
2. Business Forecast for FY2018
12
[Business Forecast]
[Dividend Forecast]
*Net profit: Profit attributable to shareholders of parent.Affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc.
**Dividend of FY2017:We plan to discuss a surplus disposal plan at the annual General meeting of Shareholders to be held in December 2017.
InternetAdvertisement
3. Internet Advertisement Business
13
34.1
62.1
90.6
121.8
163.2
49.0
51.6
52.2
53.5
44.9
83.2
113.8
142.8
175.4
208.1
FY2013 FY2014 FY2015 FY2016 FY2017
PC・Others
Smartphone
8.39
9.12
11.52
15.16
18.71
FY2013 FY2014 FY2015 FY2016 FY2017
14
3. Internet Advertisement Business
Unit: billion yen
Unit: billion yen
[Full-year Sales] [Full-year OP]
Driven by smartphone ads
18.7%UP YonY
*Segment change: The data of FY2016 were retroactively revised. (Advertisement Business of CA Mobile, Inc. is added)
Keep high OPM
23.5%UP YonY
7.0 8.1 8.310.5 11.5
15.1 16.418.9
20.7 21.7 22.725.3
26.929.3 29.5
35.937.8
39.940.7
44.6
12.512.5 11.6
12.312.9
14.8 12.0
11.9
12.513.4 12.7
13.513.7
14.3 13.5
11.910.9
12.6 10.3
11.0
19.620.7 19.9
22.824.4
29.928.5
30.9
33.335.1 35.5
38.840.7
43.7 43.0
47.948.7
52.551.0
55.7
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
PC・Others
Smartphone
3. Internet Advertisement Business
Smartphone ad ratio rose to 80% (up 5points YonY)
Unit: billion yen
[Quarterly Sales] 4Q 55.7 billion yen(up 16.3% YonY)
*Segment change: The data of FY2016 were retroactively revised. (Advertisement Business of CA Mobile, Inc. is added)15
7.08.1 8.3
10.511.5
15.116.4
18.9
20.721.7
22.7
25.326.9
29.3 29.5
35.9
37.8
39.940.7
44.6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
[Smartphone Ad] 4Q 44.6 billion yen(up 24.3% YonY)
3. Internet Advertisement Business
Unit: billion yen
*Segment change: The data of FY2016 was retroactively revised. (Advertisement Business of CA Mobile, Inc. is added)
Continuously driven by In-feed Ads and Video Ads
16
0.18 0.26 0.360.61
0.97 1.01.3
1.9
2.63.1
3.4
5.86.1
7.7 7.7
10.8 10.7
11.911.6
12.6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
3. Internet Advertisement Business
[Fortified field] In-feed Ad* 4Q 12.6 billion yen (up 15.8% YonY)
*In-feed Ads: Ads posted in the timeline of websites or apps, etc. Ad method used for SNS, curation, news media, etc.
Unit: billion yen
17
0.100.26 0.19 0.19 0.25
0.48 0.50 0.37 0.460.81 0.83
1.5
1.9
2.3
2.8
5.2 5.2
6.7
7.5
8.6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
3. Internet Advertisement Business
[Fortified field] Video Ad 4Q 8.6 billion yen ( 1.6x YonY)
YouTube and in-feed video ads flourished.
Unit: billion yen
18
2.10 2.17
1.75
2.47
2.07
3.02
2.302.18
2.88
3.80
2.882.79
3.58
4.37
3.74
4.29
4.72
5.31
4.13
4.54
10.7%10.5%
8.8%
10.8%
8.5%10.1%
8.1% 7.1%8.6%
10.8%8.1%
7.2%8.8%
10.0%8.7% 9.0%
9.7% 10.1%8.1% 8.1%
0.01Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
OP
OP Margin
3. Internet Advertisement Business
*OP and OPM : Earnings incentive paid until FY2016 are excluded.
[Quarterly OP] 4Q 4.54 billion yen (up 5.7% YonY)
**Segment change: The data of FY2016 were retroactively revised. (Advertisement business of CA Mobile, Inc. is added)
Unit: billion yen
19
[FY2018 Plan]
Maximize advertising effectiveness by operating capability①
New client development②
Strengthen video ads③
3. Internet Advertisement Business
20
Game
4. Game Business
21
8.26 8.47
17.87
30.45
26.50
FY2013 FY2014 FY2015 FY2016 FY2017
47.950.7
87.0
122.6
140.3
FY2013 FY2014 FY2015 FY2016 FY2017
Major titles performed well
14.4% UP YonY
Advertising costs increased
13.0% Down YonY
4. Game Business
Unit: billion yen Unit: billion yen
[Full-year Sales] [Full-year OP]
22
12.7 12.7
11.3 11.1 11.4
12.9 12.613.7
19.720.4 20.8
26.0
29.7
27.6
30.6
34.5 34.6
35.8
33.4
36.3
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
FY2017
FY2016
FY2015
FY2014
FY2013
FY2012 or before
Others
Marked record high results, major titles went well
*Others in Sales : Sales of goods etc.
<Released Fiscal year>
4. Game Business
[Quarterly Sales] 4Q 36.3 billion yen (up 5.0% YonY, up 8.6% QonQ)
Unit: billion yen
*
23
0.91
2.11
2.80 2.69
2.05 2.30
1.47
2.99
4.77 4.60
3.66
6.07
8.83
6.93
8.31
7.51
6.45
7.91
6.89
5.23
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
Advertising for BanG Dream! Girls Band Party!**, GRANBLUE FANTASY, Shadowverse, etc. stepped up
4. Game Business
[Quarterly OP] 4Q 5.2 billion yen (down 30.3% YonY, down 24.1% QonQ)
Unit: billion yen
*OP : Earnings incentive paid until FY2016 are excluded.** BanG Dream! Girls Band Party! : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved 24
9月3月9月3月9月3月9月3月9月
1st
4. Game Business
[Sales ranking] 7 major titles performed well
Shadowverse
BanG Dream! Girls Band Party! ***
10th
100th
30th
THE iDOLM@STERCINDERELLA GIRLS STARLIGHT STAGE*
Sengoku Enbu-KIZNA-
GRANBLUEFANTASY
Dragon Quest Monsters
Super Light**
* THE iDOLM@STER CINDERELLA GIRLS STARLIGHT STAGE : ©BANDAI NAMCO Entertainment Inc. It was jointly developed and is operated by ©BANDAI NAMCO Entertainment Inc. and Cygames, Inc.** Dragon Quest Monsters Super Light : © 2014-2017 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.© SUGIYAMA KOBO Developed by Cygames, Inc.*** BanG Dream! Girls Band Party! : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved**** Sales ranking calculates the App Store top sales ranking from AppDB. Monthly average values in ranking is used. (For October, use average until October 2)
Joker~Gang Road~
Sep. Sep. Sep. Sep.Mar. Mar. Mar. Mar.2014 2015 2016 2017
25
Sep.
[New titles]
PRINCESS CONNECT!Re:DiveAuthentic Role Battle
10 titles will come after FY2018
LOST ORDERReal tactics game
Provided by Cygames, Inc.
Provided by Cygames, Inc.
Pre-registration
Pre-registration
Animation RPG
4. Game Business
SENGOKU ASURA Provided by Sumzup, Inc.
26
7 other titles are under development
[FY2018 Plan]
Keep creating New hit titles①
Strengthen operation of existing titles②
Focus on working with third party IP following original IP③
4. Game Business
27
Media
5. Media Business
28
0.82 0.71
0.30 0.49 0.47
0.66 0.51
0.67
-0.14
-0.68
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2016 FY2017
5.8
5.35.0
5.75.9
6.4 6.4
6.8
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2016 FY2017ー5.7
ー3.4
ー4.8ー5.0
ー5.8
Up-front investmentFY2016
ー9.96B
FY2016
21.9BFY2017
25.6B
Up-front investmentFY2017
ー20.9B
ー5.2
Unit:billion yen
5. Media Business
[Quarterly Sales]4Q 6.8 billion yen (up 19.2% YonY)
[Quarterly OP]4Q up-front investment -4.8 billion yen
*OP : Earnings incentive paid until FY2016 are excluded.
Online dating service went well
Unit:billion yen
29
Apr. Jun. Sep. Dec. Mar. Jun. Sep.
22MDL
April 11Release
5. Media Business
Exceeded 22 million downloads in 18 months after its launch
Unit:DL
30
8.23
9.43
2.48
3.503.64
5.04
5.45
5.93 5.85 5.83
6.86
8.40
7.247.53
9.16
9.60
8.91
9.48
1.18
2.67
2.69
4.75
3.52
5.505.68
4.18
5.10
4.52
Apr. May. Sep. Dec. Mar. Jun. Sep.
Unit:million of user
[AbemaTV]
Unit:million of user
*MAU: Users per month measured by Google Analytics**WAU:Users per week measured by Google Analytics
5. Media Business
Change of MAU* Change of WAU**
9.48 million MAU
31
User base increased after each peak
©AbemaTV
[AbemaTV] Made more original regular programs to accustom users to watch AbemaTV
A spin-off from the special program “Win 10 million yen, if you could beat Koki Kameda”
5. Media Business
32
Dating reality show of high school students
©AbemaTV
5. Media Business
33
[AbemaTV] Prime Minister Shinzo Abe appeared in the live talk show “Toru’s Room”
Live starts at 9pm on Sunday, October 8
Host: Toru Kenjo CEO, GENTOSHA, INCGuest: The 97th Prime Minister Shinzo Abe
39%61%
36%
64%
Users by gender**
Age 25-34
Age 18-24
Age 35-44
Age 45-54
Age 55-64
March2017
September2017
♂♀
♂ ♀
2016 2017
Users by age group*
5. Media Business
*Users by age group: Age of users watching for more than five minutes measured by Google Analytics (functionally impossible to measure under the age of 18) **Users by gender: Gender of users watching for more than five minutes measured by Google Analytics (functionally impossible to measure under the age of 18)
[AbemaTV]
34
A whole generation of users lifted up, especially younger users
Female ratio is around 40%, driven by dating reality shows etc.
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep.2016 2017
Video service MAU Comparison*
[AbemaTV]
5. Media Business
*Video service MAU comparison: Made into a graph with data from VALUES eMark+ an internet access log analysis service which monitors nationwide user’s log provided by VALUES, inc.
AbemaTV
TVer
AmazonPrimeVideo
niconico
HuluVideoPass
Netflix
dTV
DAZN
35
Increased by popular programs which generated hot topics
FY2016
Up-front Investment phase
Launch
Apr. Oct.
FY2018FY2017
Oct.
3. Diversify revenue
2. Increase advertising sales
1. Strengthen content
[Road map to FY2018]
3. Provide 24 hours programming
2. Create original shows
1. Materialize comfortable UI/UX
5. Media Business
36
Pump up sales and content costsStep into growth phase
Feeling positive response after trial and error
[Plan after 1Q]
72 hours straight live show by popular Japanese pop artists1.Strengthen
content
©AbemaTV
5. Media Business
37
©AbemaTV
Running main programs of TV Asahi following “Hodo Station”
5. Media Business
38
[Plan after 1Q]
“Hodo Station” on AbemaTV start!
“Hatori Shinichi’s Morning Show” on AbemaTV start!
1.Strengthen content
Start creating original dramas leading to users’ watching habit
“Ayaka the Hostess” Ayaka is working part-time as hostess in a nightclub and handle troubleshooting of guests.Every Monday, 10pmJointly produced by Asahi Broadcasting Corporation and AbemaTV.
“#like an angel in voice” A story of 4 friends who are young, passionate to be a voice actor. describing friendship, love, failure and hope. Planned to broadcast in January 2018
COMINGSOON
©AbemaTV
(c) Cygames, Inc. (c) Yu Tsunamino.
5. Media Business
39
[Plan after 1Q]
“Tadano Hitoshi, An assistant manager with special assignment”Hitoshi is a redundant assistant manager in the Advertising Agency. But secretly he has another face as a right-hand man of chairman. Planned to broadcast five nights straight at the end of the year
“Monologue of two” A high school comedy about two girls who used to be friends when they were kids. Every Monday, 10:30pm
COMINGSOON
1.Strengthen content
Make more reality shows focus on the young
“Popular comedian Tamura Atsushi crams for university entrance exam”Every Saturday, 10pm
©AbemaTV
“Marriculum”How to get marry in 1 month after encounterStart on November 16. Every Thursday, 11pm
5. Media Business
40
[Plan after 1Q]
“Fell in love today” 8 high school students spend 2 days together to begin love. Every Monday, 11pm
“Weekend Homestay”2 city girls spend a weekend with 2 boys from Okinawa. Every Tuesday, 11 pm
“Proxy war of fighters”Reality show of fighting sports. Masato, former winner of K-1 WORLD tournament and other famous fighters recommend new comers to fight in tournament play to win 3 million yen.
Start on November 12. Every Sunday, 11pm
1.Strengthen content
• Deliver high advertising effect with passive watching style• Enable reaching not-watching-TV group
2.Increase advertising
sales
Average View-Through Rate of commercials* Frequency rate of watching TV (“AbemaTV” user)**
Low
Middle
HighWatch TV always, frequently
43%
29%20%
80%28%
*Average View-Through Rate of commercials: “AbemaTV” results through September 2017** Frequency rate of watching TV (“AbemaTV” user): “Research on ‘AbemaTV’ user” June 2017, conducted by Macromill, Inc
Complete
Incomplete
5. Media Business
41
[Plan after 1Q]
Watch TV rarely, don’t watch, Don’t have TV
Watch TV sometimes
Non-broadcast revenue
Increasing IPs
Synergy of group networks
Working with Partner Companies
M&A
Anime fund
esports DDTPro Wrestling
5. Media Business
42
3.Diversify revenues
[Plan after 1Q]
Expand businesses around “AbemaTV”
Aims to be a mass media
[Future Plans of AbemaTV]
1
2
3
10MWAU
5. Media Business
Continues up-front investment in FY2018
Establishes the business modelwith no competitor as a pioneer
Gives the first priority to strengthen the contents
43
New Business Field
6.New Business Field
44
mimi
TorteLaunched in Aug. 2017
CROSS MELaunched in Aug. 2016
A dating service that links people up by hobbies.Surpassed 2.5 million members.
A dating service that recommends someone via their unique face type.
A dating service that pushes girls to move on to start a relationship.
Tapple Launched in May 2014
6.New Business Field
45
1. Dating Service Developing actively in the growing market
A dating service that utilizes information on where you are to help find love with people you cross paths with.
Launched in Dec. 2016
9月3月9月3月9月3月 9月3月9月3月9月3月
1st
100th
2015 2016
50th
2017
Tapple
Pairs
Omiai
6.New Business Field
46
Sep. Sep. Sep.Mar. Mar. Mar.
1. Dating Service Tapple grew as one of the largest dating apps in the nation
Competitor comparison of sales ranking*
*Sales comparison of sales ranking: Picked up services from App Store Top Grossing Ranking (monthly average) provided by AppDB.
* RAGE Shadowverse Wonderland Dreams GRAND FINALS on September 18, 2017
Running an esports event “RAGE” that draws more than 10,000 participants*. RAGE
6.New Business Field
47
2. Esports Expecting the market to grow following the world
Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.
OPENREC.tv Changes in MAU
2015 2016 2017
6.New Business Field
48
1.60Musers
2. EsportsOPENREC.tv became one of the largest gameplay video streaming platforms in the country
Live streaming of gameplay, narrated gameplay video, “cheer function” that enable users to cheer for the creator are provided.
FY2018春より
開 始予定
Aims at starting business in Spring 2018
*Virtual currency exchange : is supposed to be registered at the Financial Services Agency.
6.New Business Field
49
Established CyberAgent Bitcoin, Inc. on October 2, 2017.
Operate a virtual currency exchange*
3. Virtual currency business
Summary
50
7. Summary
Aim to increase growth rate in excess of market growth
Produce hit titles continuallyand expand our market share
Establish AbemaTV for mass media Media
Ad
Game
Develop Media Business as a main pillar in the mid/long term
51
7. Summary
[Operating Profit (Image)]
To accumulate profit through the AD Business and Game Business, invest in the Media Business, and grow it as a pillar in the mid to long terms.
52
AD Business
Game Business
Media Business
7. Summary
10.5
9.5
14.7
13.6
4.0
0
3
6
9
12
15
26.6%
39.4%
21.2%23.1%
100.0%
0%
20%
40%
60%
80%
100%
5.1%
7.5%
5.2%
4.4%
5.2%
0%
10%
20%
45.5
54.5
66.7
77.178.9
0.0
20.0
40.0
60.0
80.0
100.0
24.0%
19.1%
24.4%
18.9%
5.2%
0%
12%
24%
10.3
22.2
32.7
36.7
30.7
0.0
18.0
36.0
OP ROE※※ DOEDividend RatioNet Profit Shareholders’ equity
Management index DOE 5% or more as a guide
More than
5%
53
*The total dividend amount for the term ended Sep. 2014 includes a commemorative dividend of 20 yen/share.**Net profit: Profit attributable to shareholders of parent.***DOE: Dividend on Equity (ROE×Dividend payout ratio) ****The unit of OP and net profit, shareholders’ equity: billion yen
7. Summary
Aim to be a company that is supportedin the medium to long term
54
References
55
8. References
8. References: Overview of Quarterly Results
56
Overview of Quarterly Results
(Jul.– Sep. 2017)
40.8 41.3
38.0
42.243.7
52.4 51.2
57.7
63.460.5 61.1
69.2
74.0 74.676.4
85.6 86.5
93.3
89.5
101.8
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
[Quarterly Consolidated Sales]
Unit: billion yen
57
Marked a record high quarterly sales,
exceeded 101.8 billion yen.
Up 19.0% YonY
8. References: Overview of Quarterly Results
-0.44 -0.91 -0.71 -0.20 -0.14 -0.68
-3.4
-5.7
-5.0
-5.8
-5.2-4.8
1.5
3.6
1.6
3.5
4.2
6.5
4.0
9.3
12.9
9.1
6.9
5.9
13.1
11.9 11.7
9.9
11.4
13.7
11.8
14.6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
OP of existing businesses ( Advertisement Business, Game Business, Ameba in Media Business, Investment business, etc.)
OP of up-front investment (AbemaTV, Inc. etc.)
9.81B
Unit: billion yen
[Quarterly OP]
58
Recorded gain on sale of investment securities,
4Q 9.81 billion yen. UP 2.3X YonY
8. References: Overview of Quarterly Results
4.3
2.4 2.91.7 2.2 2.8 3.5
1.9 2.6 3.1 3.6 4.0 4.4 4.4
6.5
9.99.1
7.96.7
8.1
3.7
3.63.8
3.83.9
4.34.6
4.64.6
5.05.3 5.1 5.0 5.5
5.5
5.35.8
6.6
6.4
7.6
0.8
0.80.8
0.80.9
0.9
0.9
1.01.0
1.01.1 1.2 1.2
1.2
1.3
1.4 1.51.5
1.6
1.7
1.7
1.71.5
1.51.0
1.2
1.2
1.31.3
1.2
1.2 1.3 1.41.2
1.3
1.2 1.2 1.3
1.1
1.2
2.6
2.32.4
2.4 2.5
2.5
2.5
2.53.0
2.9
3.13.5
3.5 3.5
3.9
4.4 5.25.2
5.6
6.1
0.7
2.0
3.4
3.1
13.3
11.011.6
11.1 10.7
11.813.0
13.512.7
13.4
14.4
18.8
15.6 16.0
18.7
25.6
23.0 22.6
21.6
24.9
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
Earnings Incentives
Other
Sales related costs
Office costs
Personnel
Advertisement cost
Unit: billion yen
[Quarterly SG&A Expenses] 24.9 billion yen (down 2.4% YonY)
59
8. References: Overview of Quarterly Results
82 107 148 160 182 192 213 215
954 9481,081 1,039 1,001 977 1,018
638372 356 414 400
412 392 430 436 440 432 468 445
473 437490 510 543 567
642
688955 1,011
1,090 1,1321,149 1,139
1,215 1,253 1,272 1,2671,330 1,346
637 635
711 717 772 807
957
977 981 985
1,098 1,121
1,392 1,401
1,530 1,539 1,560 1,633
1,802 1,778
328 336
348 358 373 372
393
523 505 510
574 582
263 266
259267
285301
357 406
92 111
117 110 103 107
121308 322 288
302296 303 297
290297
296310
335 336
27 22
30 30 33 32
34 34 33 33
3335
22 21
2219
1918
18 17
2,511 2,489
2,777 2,764 2,825 2,862
3,165 3,168 3,168 3,183
3,511 3,566 3,623 3,623
3,8943,971
4,0544,153
4,5234,543
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2013 FY2014 FY2015 FY2016 FY2017
Investment Development
Headquarters
Other
Internet Ad
Game
Media(exsisting business)
Media(up-front Investment business)
Unit: people
* The results for FY2015 were retroactively revised, according to the new segments adopted in FY2016. (Mainly Ameba game business moves to Game Business segment).
[No. of Employees]
60
8. References: Overview of Quarterly Results
Unit: million yen FY2017 4QJul-Sep 2017
FY2016 4QJul-Sep 2016
YonY FY2017 3QApr-Jun 2017
QonQ
Net Sales 101,876 85,616 19.0% 89,593 13.7%
Gross profit 34,790 29,824 16.7% 28,200 23.4%
SG&A expenses 24,978 25,603 -2.4% 21,619 15.5%
Operating profit 9,811 4,220 132.5% 6,581 49.1%
OPM 9.6% 4.9% 4.7points 7.3% 2.3points
Ordinary profit 9,337 3,541 163.6% 6,057 54.1%
Extraordinary income 91 3,436 -97.3% 256 -64.3%
Extraordinary loss 2,517 1,091 130.6% 698 260.4%
Income before income taxes and non-controlling interests 6,911 5,886 17.4% 5,615 23.1%
Net profit* 1,015 1,317 -23.0% 380 166.8%
[PL]
61*Net profit: Profit attributable to shareholders of parent.Affected by the fact that AbemaTV, Inc. is exempted from consolidated tax payment, and non-controlling equity interest (minority interest) of Cygames, Inc.
8. References: Overview of Quarterly Results
Unit: million yenEnd of
Sep 2017End of
sep 2016YonY
End ofJun 2017
QonQ
Current assets 117,010 114,647 2.1% 101,917 14.8%
Cash deposits 46,614 51,774 -10.0% 37,055 25.8%
Fixed assets 46,998 41,950 12.0% 46,895 0.2%
Total assets 164,009 156,597 4.7% 148,812 10.2%
Current liabilities 62,799 62,137 1.1% 49,705 26.3%
(Income tax payable) 5,374 11,169 -51.9% 2,203 143.9%
Fixed liabilities 2,423 1,845 31.3% 2,265 7.0%
Net assets 98,785 92,614 6.7% 96,841 2.0%
[BS]
62
8. References: Overview of Quarterly Results
April 11, 2016 Official launch
8. References : AbemaTV
What is AbemaTV?
63
AbemaTV 4 features
AbemaTV 4 Strengths
FREE24H
OperationAbout 25 channels
Target Young
Generation
Device by device
UI・UX
0 sec play Watch
smoothly
Various contents
TV like quality
64
8. References : AbemaTV
etc.
NewsVariety Shows
Anime
Drama
Sports
Hobbies
News
SPECIAL Variety shows
Mid-night Anime
Family Anime
24/7 Anime New Anime
NostalgicAnime
Drama Korean・Chinese
FightingSportsGolf Sports
Fishing
Mar-jong
MTV
HIPHOP
Japanese Chess
About25Channels
Documentary
65
K-Drama Reality Shows
8. References : AbemaTV
AmazonPrimeVideo
Hulu dTV
DAZN
Netflix
Pay
Linear
On demand
Video Service Comparison*
VideoPass
AbemaVideo
niconico
TVer
Free
[AbemaTV]
A business model that has no competitor
*Video Service Comparison: Created based on the main business model of each video services searched at the end of June,2017.66
8. References : AbemaTV
[Competitive Advantage]
TV-quality programs
Technical ability to create a service with high usability2
3 Healthy existing businesses backfinancial stability to invest
67
1
8. References : AbemaTV
60%
70%
80%
90%
100%
1995 2000 2005 2010 2015
People in their 10s to 40s watch TV less frequently than before.
67%
33%
50%50%
41%59%
28%
72%
**Internet video audience: Survey by NHK “Japanese people and TV 2015”; 35% of those who watch TV several days or more per year watch TV one day or more per week.
■ Trend in TV watching time weekdaymore than 15 min/day*
*Trend in TV watching time weekday more than 15 min/day:Calculate using “National life time research 2015” by NHK Broadcasting Culture Research Institute Media Research & Studies
30s
40s
2010 2015■ Do not watch ■ Watch
60%
59%
50s
13%
19%
30%
47%
87%
81%
70%
53%
16~29years old
20s
30s10s
40s
50s
60s
[Internet video audience ]Trend in TV watching time Internet video audience**
68
8. References : AbemaTV
The “App Ape Award” is a ceremony organized by Fuller, Inc. with “App Ape” the app analytics platform to celebrate and fete developers of the most popular applications in 2016.Among the other 100 apps, Abema TV received “App of the year 2016” as the most notable apps that received massive popularity in terms of new subscription .
App Ape Award “App of the year 2016”
Good Design Award 2016**
Reasons AbemaTV received the awardUnlike previous TV apps, the broadcast begins effortlessly as soon as the app is launched, with controls nearly the same as an ordinary TV.
Also, the design utilizes the advantages of a smartphone, such as quickly changing channels with a side swipe, or controlling the program listings with a touch.The service style is also new, combining 24-hour streaming of paid on-demand content, and free live streaming.
“Best App” Award in Google Play’s“Best of 2016” Ranking (Japan Edition)
The “Best of 2016” in Japan is Google’s program to select and recognize with awards the titles that was popular in Japan during the year. AbemaTV received "Best App in 2016" from among 39 nominated applications
*Top Video Streaming Apps* by MAU: State of Video Streaming Apps in Asia, July 2017, App Annie **Good Design Award 2016 : The “General Design Recommendation System” sponsored by the Japan Institute of Design Promotion
69
8. References : AbemaTV
順位 項⽬1 YouTube2 AbemaTV3 niconico4 Amazon Video5 Tver
動画ストリーミングアプリMAUランキング※ 第2位
Ranked 2nd in Top Video Streaming Apps* by MAU
8. References: Market Data
Market Data
70
2,041.1 2,016.1 1,998.11,909.2
1,713.9 1,732.1 1,723.71,775.7 1,791.3
1,834.7 1,808.8 1,837.4
377.7482.6
600.3698.3 706.9
774.7 806.2868.0
938.11,051.9
1,159.4
1,310.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
[Variation in Ad Cost by Media*]
*Variation in Ad Cost by Media: Dentsu, Inc. Ad cost in Japan in 2016.** Forecast of the global advertising market: Zenith. Advertising Expenditure Forecasts September 2016 .*** The Internet ad cost: Ad production expenses are included.
TV
Internet
Newspapers
Magazines
Radio
Up
13.0%YonY
Unit: billion yen
71
Domestic Internet advertising market keeps high growth rate and surpassed 1.3 trillion yen. In global advertising market**, internet advertising may overtake TV advertising in 2017.
8. References: Market Data
21%
80.0
207.3
345.0
497.9
647.6
801.0
2012 2013 2014 2015 2016 2017E
YonY
Up30.1%
YonY
Up23.7%
[Our share][Smartphone Ad Market*]
Smartphone Ad Market
2016
*Smartphone Ad Market: Internet Ad Market Size Estimate (Jan-Dec 2016) – Originally estimated by D2C/CCI
Unit:billion yen
72
8. References: Market Data
38.0
76.8
140.1
187.5
221.2
247.6
268.4
285.4
301.3
2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E
27%YonY
Up33.8%
YonY
Up18.0%
YonY
Up11.9%
YonY
Up82.4%
[In-feed Ad Market*] [Our share]
*In-feed Ad Market:Surveyed by CyberAgent, Inc. / Seed Planning Digital InFact, February 9, 2017 © CyberAgent, Inc. All rights Reserved.
In-feed Ad Market2016
Unit:billion yen
73
8. References: Market Data
19%
YonY
Up57.4%
YonY
Up39.9%
YonY
Up29.9%
YonY
Up25.9%
[Our share][Video Ad Market]
Video Ad Market2016
*Video Ad Market:Online video reserch / Digital InFact, November 9, 2016 © CyberAgent, Inc. All rights Reserved.
Unit:billion yen
31.7
53.5
84.2
117.8
153
192.6
230.9
262.5
291.8
2014 2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E
.0
74
8. References: Market Data
2012 2013 2014 2015 2016
*Growth transition: Growth rate based on setting 2012 as “100”**Internet Ad Market: “Advertising Expenditures in Japan 2016” by Dentsu, Inc.
InternetAd Market
100
[Market Comparison] Sales growth exceeds market growth
75
8. References: Market Data
325
493
696
1,488
2015 2016 2017 2018 2019 2020
YonY
Up 51.7%
YonY
Up 41.3%
*Esports Market:「2017 GLOBAL ESPORTS MARKET REPORT」Newzoo
8. References: Market Data
[Esports Market*]
Unit:million USD
76
48.0
261.0
560.0
895.0925.0
945.0 960.0
0.8%
8.4% 8.0%6.2%
10.2%
13.1%
0.0%02011 2012 2013 2014 2015 2016E 2017E
Smartphone Game Market
Our share
Rank Country Revenue
1 China 24.3
2UnitedStates
23.5
3 Japan 12.4
4 Germany 4.1
5 South Korea 4.1
6 United Kingdom 3.9
7 France 2.8
8 Canada 1.8
9 Spain 1.8
10 Italy 1.7
Unit:billion USD
8. References: Market Data
[Smartphone Game Market*] [Game Market by Country**]
*Smartphone Game Market: Yano Research Institute Ltd, Market trend and prospect analysis of smartphone game market 2017**Game Market by Country: Newzoo global game revenue estimates for 2016
Unit:billion yen
YonY
Up2.2%
YonY
Up1.6%
77
YonY
Up19.0%
YonY
Up13.8%
YonY
Up10.2%
[The number of paid video streaming service users*]
*The number of paid video streaming service users: ICT Research & Consulting , Trend of Pay Video Streaming Service Usage 2016. Calculated based on the estimates of the number of flat rate and pay-per-view users
Unit:10,000 users
78
790
980
1,160
1,380
1,570
1,730
2014 2015 2016E 2017E 2018E 2019E
8. References: Market Data
YonY
Up30.0%
YonY
Up33.3%
YonY
Up31.3%
YonY
Up34.4%
[Online Dating, Matchmaking Service Market*]
*Online Dating, Matchmaking Service Market: Market scale is calculated for a total value of usage fee of the services paid by users. Source: MatchingAgent, Inc. / Digital InFact, Inc.**Definition of Online Dating, Matchmaking Service: Online dating, matchmaking service is a service that introduces romance or marriage partners online. It excludes services with low ethics that are appealing "sexual encounters" such as dating sites and those with high confidentiality of user information disclosed on the service.
Unit:billion yen
12.015.6
20.8
27.3
36.7
45.1
51.7
57.7
2015 2016E 2017E 2018E 2019E 2020E 2021E 2022E
79
8. References: Market Data
The financial results of 1Q FY2018 are scheduled to be released at 15:00 or later on Thursday, January 25, 2018.
[Forward-looking statement]
The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various risks and uncertainties.
80