Abematv on April 11, 2017 Media Exceeded 16 Million Downloads OP Or Loss: -5.1 Billion Yen (Incl
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0. Table of Contents 1. Overview of Quarterly Consolidated Financial Results (Jan. 2017 – Mar. 2017) 2. Business Forecast for FY2017 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Summary 7. References ・Abema TV ・Market Data 1 1. Overview of Quarterly Consolidated Financial Results Overview of Quarterly Consolidated Financial Results (Jan. 2017 – Mar. 2017) 2 1. Overview of Quarterly Consolidated Financial Results [Highlights] 2Q FY2017 Consolidated Marked a record high Sales and OP of existing businesses Financial Sales: 93.3 billion yen up 25.1% YonY Results OP: 7.9 billion yen (existing business* 13.7 billion yen, up15.2% YonY) First anniversary of AbemaTV on April 11, 2017 Media Exceeded 16 million downloads OP or loss: -5.1 billion yen (Incl. AbemaTV, etc. -5.8 billion yen) Keep high sales growth rate Ad Sales: 52.5 billion yen up 20.3% YonY OP: 5.3 billion yen up 21.4% YonY BanG Dream! Girls Band Party!** became a new hit Game Sales: 35.8 billion yen up 29.6% YonY OP: 7.9 billion yen up 14.1% YonY *Existing business: Advertisement, Game and Ameba in Media etc. 3 **BanG Dream! Girls Band Party! : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved. 1. Overview of Quarterly Consolidated Financial Results [Quarterly Consolidated Sales] 93.3 Up 25.1% YonY 86.5 85.6 Record high results 76.4 74.0 74.6 69.2 63.4 60.5 61.1 57.7 52.4 51.2 43.7 42.2 単位:億円Unit: billion yen 40.8 41.3 39.2 38.0 35.9 33.7 32.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 4 1. Overview of Quarterly Consolidated Financial Results [Quarterly OP] OP of existing businesses 13.7 12.9 13.1 13.0 13.7 billion yen 11.9 11.7 11.4 Record high results 9.4 9.3 9.1 6.9 6.5 6.1 4.9 4.2 4.0 7.9B 3.4 3.6 3.5 2.8 1.5 1.6 -0.44 -0.91 -0.71 -0.20 -0.14 -0.68 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 -3.4 ■OP of existing businesses ( Internet Advertisement, Game and Ameba in Media etc. ) ■OP of up-front investment (AbemaTV, Inc. etc.) Unit: billion yen -5.0 -5.7 -5.8 *OP or loss of Existing businesses and Up-front investment: Earnings incentive is excluded. 5 1. Overview of Quarterly Consolidated Financial Results [Quarterly SG&A Expenses] 22.6 billion yen (up 40.8% YonY) 25.6 3.1 23.0 22.6 Earnings Incentives 5.2 4.4 5.2 Other 18.8 18.7 Sales related costs Office costs 1.2 1.2 3.4 16.0 3.9 1.3 Personnel 15.6 1.4 1.5 Advertisement cost 14.4 1.5 13.5 13.4 3.5 Unit: billion yen 3.5 1.3 13.3 13.0 12.7 3.5 3.1 11.6 11.8 2.0 1.3 5.3 11.5 2.6 11.0 11.1 2.9 1.2 5.8 10.7 2.5 1.4 6.6 10.2 0.5 3.0 1.3 0.7 2.5 1.2 1.2 9.5 2.4 2.5 1.2 1.2 1.2 2.5 1.7 2.3 1.2 1.1 2.4 2.5 5.5 8.1 2.5 1.2 0.9 1.3 1.0 2.0 0.8 1.5 1.3 1.7 1.0 1.7 1.0 0.9 1.7 1.2 0.8 1.5 1.0 5.0 5.5 1.1 0.8 0.9 5.1 0.7 3.7 5.3 0.8 0.6 0.6 0.8 4.6 5.0 0.5 4.3 4.6 9.9 3.8 9.1 3.6 3.9 4.6 7.9 4.0 3.9 3.6 3.8 3.7 6.5 4.3 4.4 4.4 3.5 3.6 4.0 2.9 2.8 2.6 3.1 2.1 2.4 2.2 1.9 1.2 1.7 1.8 1.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 6 1. Overview of Quarterly Consolidated Financial Results [No. of Employees] Increase 530 employees YonY by expanding businesses (up 99 employees QonQ ) 301 new employees joined in April 2017 4,153 4,054 3,971 18 Investment Development 3,894 19 19 310 Headquarters 22 296 3,6233,623 297 290 Other 3,566 301 3,511 22 21 285 35 267 Internet Ad 33 303 297 259 296 Game 3,1653,1683,1683,183 302 34 34 33 33 263 266 Media(exsisting business) 121 2,8252,862 308 322 288 Media(up-front Investment business) 2,7772,764 582 32 574 33 393 Unit people 30 30 107 Unit: :people 103 1,560 1,633 2,4792,5112,489 117 110 510 1,539 2,423 372 523 505 1,530 24 27 22 348 373 25 92 358 93 111 92 1,392 1,401 331 328 1,993 337 336 957 1,098 1,121 1,875 23 711 772 807 22 72 717 977 981 985 70 303 621 637 635 326 604 526 490 510 642 543 567 1,253 1,272 1,267 530 439 474 473 437 1,215 1,149 1,139 688 1,090 1,132 329 955 1,011 291 1,081 1,039 926 936 954 948 1,001 977 1,018 740 430 436 440 432 636 638 412 392 372 356 414 400 82 107 148 160 182 192 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 *Segment change: The data of FY2016 were retroactively revised. 7 (Moved Internet Advertisement business, etc. of CA Mobile, Inc. from Others to Internet Advertisement business.) 1. Overview of Quarterly Consolidated Financial Results [PL] FY2017 2Q FY2016 2Q FY2017 1Q Unit: million yen YonY QonQ Jan-Mar 2017 Jan-Mar 2016 Oct-Dec 2016 Net Sales 93,321 74,609 25.1% 86,571 7.8% Gross profit 30,604 27,344 11.9% 29,380 4.2% SG&A expenses 22,651 16,090 40.8% 23,026 -1.6% Operating profit 7,952 11,253 -29.3% 6,354 25.2% OPM 8.5% 15.1% -6.6points 7.3% 1.2points Ordinary profit 7,415 10,923 -32.1% 5,930 25.0% Extraordinary income 320 1,072 -70.2% 0 92756.0% Extraordinary loss 949 1,647 -42.4% 565 67.8% Income before income taxes and non-controlling interests 6,786 10,348 -34.4% 5,365 26.5% Profit attributable to shareholders of parent* 1,302 5,344 -75.6% 1,326 -1.8% *Profit attributable to shareholders of parent: Affected by Non-controlling equity interest (minority interest) of Cygames, Inc. AbemaTV, Inc. is exempted from consolidated tax payment. 8 1. Overview of Quarterly Consolidated Financial Results [BS] End of End of End of Unit: million yen YonY QonQ Mar 2017 Mar 2016 Dec 2016 Current assets 110,017 95,776 14.9% 99,988 10.0% Cash deposits 38,884 39,432 -1.4% 34,095 14.0% Fixed assets 45,354 39,135 15.9% 44,221 2.6% Total assets 155,372 134,911 15.2% 144,210 7.7% Current liabilities 58,495 48,375 20.9% 50,872 15.0% (Income tax payable) 6,924 7,777 -11.0% 1,775 289.9% Fixed liabilities 2,206 1,769 24.7% 2,030 8.7% Net assets 94,670 84,766 11.7% 91,306 3.7% 9 2. Business Forecast for FY2017 Business Forecast for FY2017 (Oct. 2016 – Sep. 2017) 10 2. Business Forecast for FY2017 Positioned as up-front investment period for AbemaTV 360.0 58.0 Strengthen up-front Sales 360.0 billion yen (up 15.9% YonY) investment in AbemaTV 310.6 OP 28.0 billion yen (down 23.9% YonY) 287.7 Invest in AbemaTV 254.3 36.7 38.0 205.2 32.7 Invest in Smartphone business 187.7 28.00 162.4 141.1 22.2 119.5 17.4 18.0 93.8 96.6 87.0 14.3 Sales OP 87.7 76.0 Unit: billion yen 10.3 60.1 9.3 43.2 5.5 26.7 4.3 4.6 4.4 16.2 2.6 10.8 1.7 3.2 6.3 -1.6 -0.1 -0.2 -0.1 -12.3 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E -2.0 11 2. Business Forecast for FY2017 [Progress rates toward earnings forecast] 売上高 Sales 179.8B 50% 360.0B Operating営業利益 profit 14.3B 51% 28.0B Ordinary 経常利益 profit 13.3B 50% 26.7B Profit attributable to当期純利益 shareholders of parent 2.6B 26% 10.0B 0% 50% 100% 進捗率 業績予想 12 2.