3Q FY2016 Presentation Material
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0. Table of Contents 1. Overview of Quarterly Consolidated Financial Results 2. Business Forecast for FY2016 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. Summary 1 1. Overview of Quarterly Consolidated Financial Results Overview of Quarterly Consolidated Financial Results (Apr. 2016 – Jun. 2016) 2 1. Overview of Quarterly Consolidated Financial Results [Highlights] FY2016 3Q Consolidated Marked a record high sales Financial Sales: 76.4 billion yen up 24.9% YonY Results OP: 8.3 billion yen up 33.2% YonY AbemaTV achieved 5 million DL after 3 months it launched Media Increase younger generation users by expanding contents. Business 3.4 billion yen for 3Q up-front investment. Driven by in-feed ad and video ad Ad Business Sales: 41.8 billion yen up 17.9% YonY OP: 3.6 billion yen up 25.7% YonY Extend sales and OP as good start for Shadowverse Game Sales: 30.6 billion yen up 47.1% YonY (up 10.7% QonQ) Business OP: 8.3 billion yen 2.3x YonY (up 19.9% QonQ) 3 1. Overview of Quarterly Consolidated Financial Results [Quarterly Consolidated Sales] Unit: billion yen 74.676.4 74.0 69.2 Record high sales results 63.4 60.5 61.1 60.0 Up 24.9% YonY 57.7 52.4 51.2 43.7 42.2 40.8 41.3 39.2 40.0 38.0 35.9 33.7 32.1 30.6 30.9 28.7 29.1 26.3 24.2 24.6 21.4 20.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 4 1. Overview of Quarterly Consolidated Financial Results [Quarterly OP] 3Q 8.3 billion yen (up 33.2% YonY) 3.4 billion yen investment for AbemaTV launched on April 11. Unit: billion yen 12.9 0.09 12.5 11.2 10.0 4.8 9.3 9.2 8.1 8.3 2.0 0.03 Earnings Incentives 11.3 3.4 Investment Development Business OP 6.5 6.2 12.9 6.1 OP (Excluding Investment Development Business) 0.1 2.6 0.009 4.9 5.0 4.5 4.2 8.6 6.7 4.0 4.3 0.05 4.0 8.1 3.5 0.05 1.0 3.6 0.2 7.6 3.4 3.4 0.7 3.2 0.02 0.1 3.2 6.2 0.02 6.1 2.7 0.5 5.7 0.8 4.9 2.1 2.2 4.7 3.5 3.4 4.0 1.6 4.2 3.8 3.6 3.6 3.4 1.5 3.2 2.9 2.8 2.3 0.6 2.1 2.2 1.7 0.9 0.0 -0.06 -0.1 -0.06 -0.06 -0.06 -0.07 -0.1 -0.07 -0.07 -0.1 -0.05 -0.1 -0.02 -0.2 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 5 1. Overview of Quarterly Consolidated Financial Results [Quarterly SG&A Expenses] Advertisement costs up 2.1 billion yen QonQ (up AbemaTV: 1.0 billion yen, Game Business: 1.0 billion yen/ QonQ) Unit: billion yen 20.0 18.8 18.7 3.4 16.0 3.9 Earnings Incentives 15.6 15.0 Other 14.4 3.5 Sales related costs 13.3 13.5 13.4 3.5 1.3 3.5 13.0 12.7 Office costs 3.1 1.3 11.8 2.0 11.6 Personnel 11.5 2.6 2.9 1.2 11.0 11.1 2.5 3.0 1.4 10.7 1.3 Advertisement costs 10.2 0.5 1.2 0.7 2.5 2.5 1.2 10.0 9.5 2.4 1.2 1.7 2.3 1.2 1.2 1.2 9.1 2.5 2.5 1.1 5.5 2.4 1.3 8.1 2.5 1.2 0.9 1.0 8.0 1.0 2.0 0.8 1.5 1.3 7.5 7.2 1.7 1.0 0.9 1.0 7.0 1.7 5.5 6.6 0.8 1.5 1.8 1.7 1.1 1.2 0.8 1.5 1.0 5.0 0.9 5.1 5.8 6.0 0.8 5.3 1.4 1.5 0.5 0.6 0.6 0.7 3.7 0.8 1.3 1.5 0.4 0.7 0.8 4.6 5.0 5.0 1.2 1.5 0.3 0.5 0.5 0.5 0.5 4.3 4.6 0.3 0.4 0.4 0.4 3.8 0.3 0.4 3.6 4.6 0.3 3.6 3.9 0.5 0.4 3.7 4.0 3.9 3.8 3.5 6.5 3.2 3.3 3.3 3.7 3.1 3.0 3.0 4.3 4.4 4.4 3.5 3.6 4.0 2.9 2.8 3.1 2.1 2.4 2.2 2.6 1.4 1.7 1.4 1.7 1.8 1.7 1.9 0.7 1.0 1.2 1.2 1.2 0.0 0.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 6 1. Overview of Quarterly Consolidated Financial Results [No. of Employees] Increase 271 employees QonQ (within 244 new graduates) Unit: People 4,000 3,894 Headquarters 3,623 3,623 290 Investment Development 3,566 3,511 18 Other 303 297 296 302 412 Internet Ad 3,168 3,165 3,168 3,183 18 17 Game 33 35 121 404 401 288 3,000 Media(exsisting business) 34 308 322 2,825 2,862 582 2,777 574 Media(up-front Investment business) 2,764 33 33 103 107 393 34 117 110 33 32 2,511 2,489 30 30 510 2,479 372 523 505 2,423 373 1,381 93 92 111 348 358 92 24 27 22 25 1,255 1,270 331 328 336 337 957 1,993 1,098 1,121 2,000 1,875 72 1,835 1,806 711 717 772 807 70 23 985 65 62 977 981 1,630 22 303 621 637 19 20 604 635 1,551 1,526 1,544 1,554 326 72 349 1,428 341 75 70 71 71 18 74 18 12 13 16 359 642 526 490 510 12 394 387 367 543 567 526 530 473 1,215 405 439 474 437 822 865 751 697 1,149 1,139 1,000 688 703 737 329 674 635 291 628 631 597 581 265 259 1,081 1,039 1,018 926 936 954 948 1,001 977 168 201 139 141 740 682 667 430 110 120 636 638 624 630 412 392 392 421 231 236 282 298 295 306 107 148 0 82 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 *Number of employees in Media Business describe separately existing business and up-front investment 7 1. Overview of Quarterly Consolidated Financial Results [PL] FY2015 3Q FY2016 2Q Unit: million yen FY2016 3Q YoY Change QoQ Change Apr-Jun 2016 Apr-Jun 2015 Jan-Mar 2016 Net sales 76,408 61,154 24.9% 74,609 2.4% Gross profit 27,084 20,679 31.0% 27,344 -1.0% SG&A expenses 18,753 14,425 30.0% 16,090 16.6% Operating income 8,330 6,253 33.2% 11,253 -26.0% Operating profit margin 10.9% 10.2% 0.7points 15.1% -4.2points Ordinary income 8,061 6,256 28.9% 10,923 -26.2% Extraordinary income 0 2 -96.7% 1,072 -100.0% Extraordinary loss 1,850 613 201.7% 1,647 12.3% Current net pretax profit 6,211 5,645 10.0% 10,348 -40.0% Current net profit* 1,036 2,417 -57.1% 5,344 -80.6% *This number shows because of non-controlling interests (minority interests) of Cygames, Inc. and AbemaTV, Inc. is the non consolidated tax company. 8 1. Overview of Quarterly Consolidated Financial Results [BS] Unit: million yen End of Jun 2016 End of Jun 2015 YoY Change End of Mar 2016 QoQ Change Current assets 96,441 77,600 24.3% 95,776 0.7% Cash deposits 40,561 30,713 32.1% 39,432 2.9% Fixed assets 40,448 38,507 5.0% 39,135 3.4% Total assets 136,889 116,108 17.9% 134,911 1.5% Current liabilities 45,920 38,734 18.5% 48,375 -5.1% (Income tax payable) 6,720 6,063 10.8% 7,777 -13.6% Fixed liabilities 1,838 1,280 43.6% 1,769 3.9% Net assets 89,130 76,092 17.1% 84,766 5.1% 9 2.