Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Financial Results for the Second Quarter of the Fiscal Year Ending May 2020
Copyright © UUUM Co., Ltd. All rights reserved. 22
UUUM is a content company that invents unprecedented forms of fun through Kodomogokoro (a child-like spirit of adventure), developing new culture and values.
Content is an extension of personal preference and fun, embraced by those who share the same values.
Today, we live in an era of personal media channels, where a single person can have influence regardless of platform or media format.
The boundaries between creator and viewer is fast disappearing as new cultures and markets are created through viral connections.
In this new age, UUUM is a company that delivers this type of entertainment experience to the people of the world.
Copyright © UUUM Co., Ltd. All rights reserved. 3
1. Overview of Results for Q2, FYE May 2020
2. Progress Toward Earnings Forecast
3. Featured Highlights
4. The Future Industry Environment and the UUUM Long-Term Vision
INDEX
Overview of Results for Q2, FYE May 2020
4Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 5
Earnings Highlights
(million yen)
Q2, FYE May 2020(Sept.-Nov. 2019)
Q2, FYE May 2019(Sept.-Nov. 2018) Year on Year
Net Sales 5,411 4,569 118%
Gross Profit 1,536 1,272 121%
SG&A 1,185 877 137%
Operating Profit 351 395 89%
Net Income 120 256 47%
Copyright © UUUM Co., Ltd. All rights reserved. 6
Earnings Highlights Through Q2, FYE May 2020
(million yen)
Q2, FYE May 2020(June-Nov. 2019)
Q2, FYE May 2019(June-Nov. 2018) Year-on-Year
Net Sales 10,919 8,746 125%
Gross Profit 3,163 2,474 128%
SG&A 2,389 1,753 136%
Operating Profit 774 721 107%
Net Income 459 451 102%
Note: Figures rounded to the nearest million.
Copyright © UUUM Co., Ltd. All rights reserved. 7
735 829 1,110 1,358 1,290 1,381 1,755
2,254 2,382 2,803 3,020
3,484 3,070 2,975
480 423 549
749 781 718
957
1,202 1,133 1,156
1,107
1,474 1,603 1,459
98 71 177
104 212 294
292
225 548
432 427
796 588 748
73 62
84 82 106 91
90
86 114
178 194
479
247 229
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
UUUM services (UUUM owned channels, games, etc.)Creator Support, Other (merchandise, events, music, etc.)Advertising (sponsored video, etc.)AdSense (YouTube revenues)
Sales by Quarter
Q2 sales higher for all businesses; year-on-year growth of 118%.Q2 yoy growth in adsense business down to 106% due to one-off sales in last Q2.
(Units: million yen)
1,385 1,3851,921
2,293 2,388 2,4853,094
3,7684,177
4,569
6,233
4,7475,508 5,411
Copyright © UUUM Co., Ltd. All rights reserved. 8
Gross Profit by Quarter
Q2 gross profit increased due to higher sales; year-on-year growth of 121%.
398 364
532617
727 744864
1,069 1,202
1,272 1,282
1,651 1,626 1,536
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
(Units: million yen)
Copyright © UUUM Co., Ltd. All rights reserved. 9
129 162 191 265 293 302 344 368 431 494 515617 708 664
16 29 3958 58 61 63 67
7277 77
8484 85
105 55 44 35 3931
14 39
10039 31
23
52 68 49 72 9895 79
93
23678 113
825
25
25 25
5880 97
194 137 146150
240246 204
255
339
268 268
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Other expenseAmortization related to acquisitionContracting expenseAdvertising and promotion expenseRent expensePersonnel expense
224304 351
673610
(Including 57 in new business-
related expenses)
603(Including 31 in new business-
related expenses)
664(Including 60 in new business-
related expenses)
812(Including 72 in new business-
related expenses)
875(Including 61 in new business-
related expenses)
877(Including 37 in new business-
related expenses)
1,005(Including 61 in new business-
related expenses)
1,401(Including 115 in
new business-related expenses)
1,203(Including 34 in new business-
related expenses)
1,185(Including 54 in new business-
related expenses)
Increase in personnel expense accounts for main difference compared to Q2 SGA.
Selling, General, and Administrative Expenses by Quarter
(Units: million yen)
Copyright © UUUM Co., Ltd. All rights reserved. 10
Operating Profit by Quarter
Operating profit down 11% year on year.
17461
181
-57
117 142 200 257 326 395276 250
423351
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Gross profit
SG&A
(Units: million yen)
Copyright © UUUM Co., Ltd. All rights reserved. 11
Employees and Temporary Employees, End of Quarter
104 127 143 152 175 195 214 249 276 297 318
385 415 439
3 5 6 9
16 22 17
26 28
37 31
24 33
30
107 132 149 161
191 217 231
275 304
334 349
409
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Temorary employees
Employees (including directors)
(Units: employees)
448469
Copyright © UUUM Co., Ltd. All rights reserved. 12
Trend in Number of Affiliated Channels at End of the Quarter and Three-month Total Number of Video Views
Copyright © UUUM Co., Ltd. All rights reserved. 13
ランキング チャンネル名 登録者数
1 はじめしゃちょー(hajime) 8,320,000
2 HikakinTV 7,900,000
3 Fischer's-フィッシャーズ- 5,910,000
4 Yuka Kinoshita木下ゆうか 5,410,000
5 avex 5,000,000
6 東海オンエア 4,870,000
7 Travel Thirsty 4,730,000
8 SUSHI RAMEN【Riku】 4,690,000
9 米津玄師 4,660,000
10 HikakinGames 4,430,000
ランキング チャンネル名 登録者数
12 水溜りボンド 4,200,000
13 SeikinTV 3,750,000
22 圧倒的不審者の極み! 2,800,000
25 桐崎栄二.きりざきえいじ 2,730,000
27 ポッキー 2,700,000
31 ワタナベマホト 2,570,000
35 はじめしゃちょー2 (hajime) 2,450,000
36 はねまりチャンネルHane & Mari's World 2,440,000
37 おるたなChannel 2,410,000
38 HIKAKIN 2,400,000
39 東海オンエアの控え室 2,380,000
43 Fischer's-セカンダリ- 2,320,000
52 HIMAWARIちゃんねる 2,120,000
57 ボンボンTV 2,000,000
63 はじめしゃちょーの畑 1,900,000
70 カズチャンネル/Kazu Channel 1,760,000
73 MAHOTO 1,720,000
74 70cleam 1,680,000
75 TOMIKKU NET 1,670,000
78 アバンティーズ 1,610,000
81 瀬戸弘司 / Koji Seto 1,580,000
81 PDSKabushikiGaisha 1,580,000
90 はなお 1,530,000
97 カズゲームズ/Gaming Kazu 1,460,000
Channel Subscription Ranking
Source: YouTube rankings data as of December 2019, collated by UUUM
■ TOP 10 ranking ■ TOP 100 ranking
6/1030/100
Copyright © UUUM Co Ltd All rig 14
Progress Toward Earnings Forecast
14Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 15
Progress Toward Fiscal Year Earnings Forecast
(million yen)
Q2, FYE May 2020(June-Nov. 2019)
FYE May 20Plan
Progress TowardPlan
Net Sales 10,919 26,000 42%
Gross Profit 3,163 7,020 45%
Operating Profit 774 1,400 55%
Net Income 459 880 52%
Copyright © UUUM Co., Ltd. All rights reserved. 16
Net Sales Progress by Business
¥15,361 million
¥5,807 million
¥3,475 million
¥1,357 million
¥6,046million
Progress
¥3,062million
¥1,335million
¥475million
Progress
Progress
AdSense
Advertising
Creator Support, Other
UUUM services
39%
53%
38%
35%Progress
¥6,046 million
¥3,062 million
¥1,335 million
¥475 million
Copyright © UUUM Co Ltd All rig 17
Featured Highlights
17Copyright © UUUM Co.,Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 18
U-FES. FOOD PARADE Debuts in Shibuya PARCO!
Collaboration-based café opened in the newly opened Shibuya PARCO
For a limited time between Nov.22, 2019 and Jan. 20, 2020, UUUM is operating a collaboration-based café, U-FES. FOOD PARADE, in the TOKYO PARADE goods & café located on the 6th floor of Shibuya PARCO
See press release for more : https://www.uuum.co.jp/2019/11/07/42038
Copyright © UUUM Co., Ltd. All rights reserved. 19
Original U-FES. TOUR 2019 Collaboration Goods (Part II) Available at Lawson
Goods for sale/promotional giveaways at Lawson locations throughout Japan
See press release for more: https://www.uuum.co.jp/2019/10/23/41512
Limited-Edition U-FES.TOUR 2019 Collaboration Goods (Partial Selection)
Limited-Edition/First Customers Only Promotional Giveaways (Partial Selection)
Copyright © UUUM Co., Ltd. All rights reserved. 20
UUUM sponsored a pro-am golf tournament with 35 of Japan’s top professionals at a high-end golf course. More than ¥10 million in prizes given away.
UUUM Pro-Am ~Celebration With 35 Top Japanese Pros~
See press release for more: https://www.uuum.co.jp/2019/11/21/42544
Copyright © UUUM Co., Ltd. All rights reserved. 21
Sale of Promotional Goods With the Popular Creators on “note” platform
See press release for more: https://www.uuum.co.jp/2019/12/06/42970
UUUM sold original goods at MUUU designed by the popular creators on “note”, a media platform operated by piece of cake co., ltd.
Part of an equity and business tie-up between UUUM and piece of cake announced previously. See our July 12, 2019 press release, UUUM Signs Equity and Business Agreement With piece of cake co., ltd.
Copyright © UUUM Co., Ltd. All rights reserved. 22
Seven Videos Ranked in YouTube 2019 Domestic Top Trending (Excluding Music Videos)UUUM creators and Gachapin Channel (official), operated in collaboration with Fuji Television Network, Inc., combined for seven videos ranked in the YouTube 2019 Domestic Top Trending category (excluding music videos)
See press release for more: https://www.uuum.co.jp/2019/12/05/43189
Copyright © UUUM Co., Ltd. All rights reserved. 23
Business Alliance Signed With Courage Co., Ltd.~Strengthened Support for TikTok Creators~
See press release for more: https://www.uuum.co.jp/2019/12/11/43411
Courage performs production for models and celebrities across various media. The company also provides management services for Hinata and other TikTokcreators. Through this alliance, UUUM intends to provide support for Courage-affiliated talent in the influencer realm, secure corporate tie-ups, facilitate collaborations with UUUM-affiliated creators, and more.
Courage-Affiliated Creators
Hinata Kokone RionIshida
Mau
Copyright © UUUM Co., Ltd. All rights reserved. 24
Business Alliance Signed With Line Corporation~Strengthened Support for Live Broadcasters~Aiming to foster live broadcasters (LIVERs) on the Line Corporation LINE LIVE service, UUUM launched a LIVER Support Program with Line Corporation. For live broadcasters aiming to raise their presence, UUUM will provide video platform services, SNS activities, merchandise sales, corporate tie-ups, and other support, spreading the circle of activity for these creators.
Copyright © UUUM Co Ltd All rig 25
The Future Industry Environment and the UUUM Long-Term Vision
25Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 26
Diversification in Media Caused by the Rise of the Internet
The Individualization of Media
Changes in the Business Environment to Date
Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 27
Changes in Video Media
Online Entertainment of the Past
Online Entertainment Today
Devices Content
TV
Smartphones
PC
TV
Devices Content
TVPrograms
TVPrograms
OnlineContent
The industry has gone from having only several TV programs to one in which online content has extended beyond the number of devices due to the popularization of the Internet and smart phones.
Copyright © UUUM Co., Ltd. All rights reserved. 28
(Minutes) TV Viewing Internet Use Newspaper Reading
Radio Listening
10-19
2013 120.4 99.1 0.6 0.1
2014 110.4 109.3 0.7 0.2
2015 112.9 112.2 0.2 2.6
2016 102.4 130.2 0.3 3.5
2017 83.9 128.8 0.3 1.5
20-29
2013 145.9 136.7 1.4 3.6
2014 132.7 151.3 2.4 9.4
2015 143.8 146.9 2.1 6.4
2016 130.7 155.9 1.4 16.8
2017 105.7 161.4 1.4 2.0
30-39
2013 175.9 87.8 5.8 17.7
2014 167.2 87.6 4.1 5.4
2015 162.7 105.3 3.5 15.3
2016 166.1 115.3 3.8 15.4
2017 136.9 120.4 3.5 4.3
The Steady Shift from TV to the Internet
(Minutes) TV Viewing Internet Use Newspaper Reading
Radio Listening
40-49
2013 156.7 70.0 8.6 22.6
2014 183.7 82.5 9.3 19.4
2015 168.1 93.5 8.8 13.7
2016 183.7 97.7 8.0 17.2
2017 170.1 108.3 6.3 12.0
50-59
2013 197.0 61.8 18.6 20.2
2014 198.6 68.0 16.3 13.5
2015 238.4 74.7 17.0 10.7
2016 197.6 85.5 14.4 19.8
2017 221.1 77.1 16.3 19.5
60-69
2013 276.8 36.7 28.0 20.5
2014 274.2 32.2 31.3 40.3
2015 280.2 35.7 29.6 30.6
2016 277.6 46.6 25.8 23.4
2017 272.9 38.1 25.9 17.3
Average Media Usage Time (Per Week Day) by Age group
Note: TV viewing is total of real-time and time-shifted viewing (source: White Paper Information and Communications in Japan)
Decreasing TV Viewing Time for 30s and Younger; Increasing Internet Usage
Copyright © UUUM Co., Ltd. All rights reserved. 29
Shift in Japanese Advertising Market Budgets
Video Advertising MarketAdvertising Market Growth by Four Mass Media Categories
Budgets in Japan’s Advertising Market Have Started Shifting Away From Traditional Media
(bn yen)
-1%
2%
-1%-2%
-6%
-4%-5%
-7%
-2%
-9% -9% -9%
-1%
3%
0%
-1%
TV Newspaper Magazine Radio
2015 2016 2017 2018
Source: Japanese Advertising Revenues, Dentsu Inc. Source: CyberAgent, Inc. research
84137
184
259
329389
447507
0
100
200
300
400
500
600
2016 2017 2018 2019 2020 2021 2022 2023
Copyright © UUUM Co., Ltd. All rights reserved. 30
Terrestrial TV Pay video distribution service Free video distribution service
Commercial broadcasting NHK Amazon
Prime Hulu Netflix YouTube niconico AbemaTV GYAO!
All 95% 67% 11% 3% 3% 70% 14% 12% 11%
10-20 years 92% 59% 15% 7% 5% 84% 23% 13% 8%
30s 94% 53% 12% 4% 4% 80% 14% 12% 10%
40s 96% 61% 8% 2% 1% 65% 11% 15% 12%
50s 96% 77% 10% 2% 2% 69% 13% 14% 13%
60s 97% 82% 10% 2% 2% 57% 11% 7% 13%
Regularly viewed content services
Research: Joint study by MACROMILL, INC. (HoNote) and ShoeishaCo., Ltd (MarkeZine)Population surveyed: Men and women across Japan aged 18 to 69 years. Number of valid respondents: Sample of 1,000
Survey method: Internet research. Period of survey: December 2017
YouTube becomes a popular video media platform comparable to TV
Copyright © UUUM Co., Ltd. All rights reserved. 31
Individuals Dominate YouTube Ranking
Source: YouTube rankings data as of September 2019, collated by UUUM
Ranking Channel name Subscribers
1 はじめしゃちょー(hajime) 8,190,000
2 HikakinTV 7,710,000
3 Fischer's-フィッシャーズ- 5,800,000
4 Yuka Kinoshita木下ゆうか 5,340,000
5 avex 4,890,000
6 東海オンエア 4,740,000
7 米津玄師 4,400,000
8 HikakinGames 4,360,000
9 SUSHI RAMEN【Riku】 4,360,000
10 Travel Thirsty 4,310,000
Ranking Channel name Subscribers12 水溜りボンド 4,090,000
14 SeikinTV 3,670,000
23 桐崎栄三/きりざきえいじ 2,670,000
27 ポッキー / PockySweets 2,640,000
29 ワタナベマホト 2,610,000
31 圧倒的不審者の極み! 2,600,000
35 はじめしゃちょー2 (hajime) 2,430,000
36 HIKAKIN 2,400,000
38 東海オンエアの控え室 2,340,000
39 おるたなChannel 2,330,000
42 Fischer's-セカンダリ- 2,290,000
52 HIMAWARIちゃんねる 2,020,000
55 はねまりチャンネルHane & Mari's World 1,970,000
56 ボンボンTV 1,950,000
61 はじめしゃちょーの畑 1,820,000
64 MAHOTO 1,740,000
65 カズチャンネル/Kazu Channel 1,730,000
70 TOMIKKU NET 1,670,000
74 70cleam 1,640,000
77 アバンティーズ 1,610,000
78 PDSKabushikiGaisha 1,580,000
83 瀬戸弘司 / Koji Seto 1,550,000
90 カズゲームズ/Gaming Kazu 1,440,000
95 はなお 1,430,000
96 水溜りボンドの日常 1,420,000
■ TOP 10 ranking ■ TOP 100 ranking
6/10
31/100
Copyright © UUUM Co., Ltd. All rights reserved. 32
Shift in Time Spent from Portal Sites to Individual Content
Individual(Friends, Influencers)
Comparatively, ratio of time spent consuming individual content is
IncreasingPortal SitesComparatively, ratio of time spent using portal content is
Decrease in top page viewing ratios; increase in inflow from
social media properties
DecreasingIncrease in view of individual
content through video and photo posting, social media
Copyright © UUUM Co., Ltd. All rights reserved. 33
The Rise of the Internet Has Resulted in Unlimited Content
“Who” Has Posted is Becoming Much More Important Than “What” is Posted
Past Early Internet Today
Selecting content from a limited number of choices
Searching for content via portal sites
Follow favorite channels to view content
Content Channel
Searching for content is becoming impossible. Now, users give preference to content created by their favorite channels (content producers).
Portal Sites
TV Channels
Copyright © UUUM Co., Ltd. All rights reserved. 34
Advantage for Individual Content
Easy to Follow Individual Channels
All content is self-madePersonality shines through in the content
Individual Content Tells a Story That is Easy to
Identify With
Why?
Copyright © UUUM Co., Ltd. All rights reserved. 35
Increase of Individual Influence Leads to an Expansion of the Individualized Economy
Projected Changes in the Future Business Environment
Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 36
Problems With Traditional Industry Structures (1)
Individuals Cannot Reach Their Goals Without Belonging to an Agency or Company
CD SalesSponsored EventsTV Appearances
Consumers(Fans)
Labels, Studios
Apparel Companies
ApparelSales
SpecificDesigns
Debut
Musicians
Designers(Potential Big-Name Designers)
Copyright © UUUM Co., Ltd. All rights reserved. 37
16%
6%
33%
45%
Problems With Traditional Industry Structures (2)
Source: Digital Content White Paper 2017, Digital Content Association of Japan Source: Extract from Ongaku Shugi, Federation of Music Producers Japan
Content Creator Receives Only Small Revenue ShareEx. Animation
CreatorIllustrators, animators, script writers, authors, cartoonist, singer, song writer, choreographer, etc.
AggregatorAdvertising Agency, distributor, publisher, editor, record company, etc.
DistributorBroadcaster, theater, news, online distribution, bookstore, record store, etc.
Content Added Value (Contribution)
Profit Structure
Approx. ¥200 billion
Approx. ¥1.8 trillion
Master RoyaltiesEx. Music
12% to 16%
Artist
Master License
Copyright Fees
Music Publisher (3%) Lyricist (1.5%) Composer (1.5%)
Label
Production Cost Marketing and Promotions Management etc.
Distributor
Retailer25% to 27%
1%+
6%45%
33%
Copyright © UUUM Co., Ltd. All rights reserved. 38
Main Factor: Limited Channels and Media
Music
Books
Lyricist
Composer
Singer
Label CD Store
AuthorCartoonist
Publisher Agency Bookstores
TV Magazines Radio Newspapers
Creator Aggregator Distributor Consumers(Fans)
Channel Limitations
Media Limitations
Copyright © UUUM Co., Ltd. All rights reserved. 39
Consumers(Fans)
However, IT and Social Media Have Freed Creators From Limitations
Lyricist
Composer
Singer
AuthorCartoonist
Freedom from
Channel Limitations
Freedom from Media
Constraints
Online Music SalesCharge for Live Content Online
Book Sales Through EC SitesCharge for Content Online
Anyone can distribute content through social media to build a fan base without relying on mass media
Creator
Music
Books
Copyright © UUUM Co., Ltd. All rights reserved. 40
When Media Changes, Consumption Behavior ChangesA Structural Shift From a Mass Consumption to Diversified Consumption
Social MediaYouTube, Instagram, etc.(Different Content for Each)
TVRanking Sites
Search via Ranking and Portal SitesMainly BtoC
Direct purchase via link on social media siteSpread of CtoC
(Same Content for All)
The Past The Future
Everyone Watches the Same Content and Buys the Same
Goods
Diversified Consumption
Information Sources
PurchaseProcess
Information Sources
PurchaseProcess
Copyright © UUUM Co., Ltd. All rights reserved. 41
Media Individualization → Individuals Form Economies
Advertising Revenue as Media The Present
The Future
Individualized Media Creates Direct Business With Fans
Advertiser
Influencers
Fans
Content
Advertiser
Influencers
Fans
EC
Music
Events
Patron/Fan
Support
ContentDistribution
AdvertisingAdvertising
Copyright © UUUM Co., Ltd. All rights reserved. 42
Significant Growth of Non-Advertising Economy Overseas
Market Size: ¥1.9 trillion
Market Size: ¥50 billion
China
Japan
Mostly Advertising
Advertising
EC, Goods
Social Tipping
Other
ChinaJapan
Platform Agreements
Source: May 2019 PWC Consulting LLC Research (Estimate)
Comparison of Japanese and Chinese Influencer Markets
Copyright © UUUM Co., Ltd. All rights reserved. 43
The Past The Future
Summary: Individualized Economy Should Expand and Disrupt Traditional Corporate-Centric Economy
Companies
Individuals
• Limited number of companies owned distribution channels(New entry in some markets virtually impossible due to licensing and other regulations)
• Creating a user base required mass media coverage, advertising and promotions
• Can only achieve goals through a company/agency
• Even after joining, still subject to circumstances and decision-making of the company/agency
• Ultimately, only small percentage of revenue goes to the individual
• The decline of mass media influence has made it more difficult to generate reach and brand recognition, especially among the younger segment
• Individual creates their own fan base from which to conduct business
• In contrast to companies, the hurdle to success is relatively low; can compete in niche markets(Succeed with only a few hundred or a few thousand fans)
Copyright © UUUM Co., Ltd. All rights reserved. 44
The UUUM Long-Term Vision
Copyright © UUUM Co., Ltd. All rights reserved.
Copyright © UUUM Co., Ltd. All rights reserved. 45
The UUUM Business Model
Provide expertiseProvide training opportunities
Partner Companies
PartnershipsInvestments
M&A
Videography and editing support
BackyardAsset Support
Content managementMaking it possible to do what people want to do
Providing profit-making opportunities
FansEngagement
Strengthen
Creators
UUUM aims to become far and away the No.1 infrastructure provider supporting creators as we enter an expanding era of individualized economies.
Copyright © UUUM Co., Ltd. All rights reserved. 46
UUUM Strengths
Content Platforms
YouTube
TikTok
TV
Help Creators to Expand to Multi-Channel Platformsto Maximize Fan Engagement
Creators
Athletes
Artists
Idols
Culinary experts
IntellectualsMusicians
Photographers
Copyright © UUUM Co., Ltd. All rights reserved. 47
UUUM Aims to Work With Individual Creators to Change Current Industry Structures
Traditional Revenue Allocationin the Corporate-Centric Economy
Future Revenue Allocation inIndividualized Economies
Creators
Aggregators
Distributors
Creators
UUUM
Copyright © UUUM Co., Ltd. All rights reserved. 48
Advertising Market
Music Market
E-commerce market
Events Market
Education Market
・・・ ・ ・
Future Target Market Scale Overview
Shift to Individualized Economies
出所:「デジタルコンテンツ白書2017」(一般財団法人 デジタルコンテンツ協会)、経済産業省「平成30年度電子商取引に関する市場調査」、ライブ・エンタテインメント白書調査委員会「2017ライブ・エンタテインメント白書サマリー」
etc.
¥6 trillion
¥500 billion
¥500 billion
¥2 trillion
¥9 trillion Our TotalAddressable
Market
Copyright © UUUM Co., Ltd. All rights reserved. 49
Strategy to Achieve Our Long-Term Vision
1. Expand Base of Creators
2. Expand Individualized
Economies
3. Original Content
The Future
YouTube Instagram note And OtherPlatforms
Sponsored ContentAdsense
MerchandisingEventMusic
New Business
The Present
Copyright © UUUM Co., Ltd. All rights reserved. 50
Prioritizing Sales Growth (Market Growth) for the Time Being
Operating Profit Ratio
Sales
FYE May 17 FYE May 18 FYE May 19 Medium-Term Target Future
●Expanding base of creators●Expansion of individualized
economies●Original content
¥6.9 billion
¥11.7 billion
¥19.7 billion
5.1%6.1%
6.3%...and other initiatives to
expand and open new markets
15%
10%
Margin Expansion by Operating Leverage
Sales Growth Phase