Existing Business

CyberAgent, Inc
Results Briefing for the Second Quarter
(interim period) Ending September 2007
(October 2006 – September 2007)
http://www.cyberagent.co.jp/
Tokyo Stock Exchange Mothers: 4751
The opinions and forecasts contained within this document are based on the judgments of CyberAgent, Inc., at the time the
document was prepared. No guarantee is made as to the accuracy of this information.
Opinions and forecasts may differ significantly from actual performance and results due to changes in a variety of factors.
Table of Contents
Overview of Consolidated Financial Results
“Existing Business” Internet Media Business
“Existing Business” Internet Advertising Agency Business
Investment Development Business
“Ameba Blog” Strategy
Reference Material (1)
Reference Material (2)
Reference Material (3)
1
Overview of Consolidated
Financial Results
Overview of Consolidated Financial Results
Overview of Consolidated Financial Results
for the Second Quarter
January – March 2007
2
Overview of Consolidated
Financial Results
Highlights of the Second Quarter (January – March 2007)
Net Sales
19,362 million yen
(increased by 39.7% on a year-to-year basis).
Operating Income
1,136 million yen
(increased by 85.6% on a year-to-year basis).
“Ameba Blog”
The PV count increased by 209%
over a year-to-year basis.
Continued to be led by Internet Advertising Agency Business,
the net sales (excluding Investment Development Business)
increased by 26.4% on a year-to-year basis.
Invesetment Development Business continued to enjoy an excellent
condition and Existing Business’ revenues increased.
Resizing and restructuring of netprice.com was undertaken
(netprice.com’ s second quarter operating loss due to inventory
valuation loss, etc.: 511 million yen)
960 million PV (2Q, 2006) ψ 2.97 billion PV (2Q, 2007)
Grew into the No.1 blog media nationwide. Accelerated PV expansion.
Note: Existing business refers to businesses excluding Ameba business and investment development business.
3
Overview of Consolidated
Financial Results
Future Perspective
①
Existing Business
②
③
Aim for a continued investment
Back to growth trend.
performance by utilizing the
strengths of discovering
Continued priority
investment.
and fostering.
Internet
Media
Business
Internet
Advertising
Agency
Business
Investment
Development
Business
Ameba
(Ameba Blog)
4
Overview of Consolidated
Financial Results
Quarterly Consolidated Net Sales
Unit: million yen
19,362
20,000
18,402
18,087
Increased
by 39.7%
14,580
15,000
13,857
13,275
13,213
11,360
10,118
10,000
8,582
5,000
0
2005
2006
2007
1Q (Oct – Dec)
2005
2006
2007
2005
2Q (Jan – Mar)
2005
2006
2007
3Q (Apr – Jun)
2006
2005
2006
2007
4Q (Jul – Sep)
2007
5
Overview of Consolidated
Financial Results
Quarterly Consolidated Operating Income
Unit: million yen
Unit: million yen
1Q, 2007
2,800
2,800
2,100
Unit: million yen
3,000
2,100
1,765
1,725
1,400
1,426
Investment
Development Business
Consolidated
Operating Income
1,400
700
299
Existing Business
Existing Business -387
-80 (netprice)
-700
-792 -325 Ameba
-1,400
1,136
Existing Business
-700
-349
-511
-413
-1,273
-1,400
1,270
644
Existing Business
(netprice)
Ameba
Increased by
85.6%
933
900
612
604
600
0
0
2,510
1,136
700
Existing Business
0
300
Consolidated
Operating Income
Investment
Development Business
933
Existing Business
1,200
2Q, 2007
2,409
628
615
2005
2006
506
247
2005
2006
2005
2007
Operating Income Composition
Investment
Development
Business
2006
2007
2Q (Jan – Mar)
2005
1Q (Oct – Dec)
Existing Business
Total
2006
2007
3Q (Apr – Jun)
2007
Existing Business
netprice
Ameba
2005
2006
2007
4Q (Jul – Sep)
Consolidated Operating
Income
Total
2Q of Yr to Sep 2007
1,765
644
2,409
2Q of Yr to Sep 2007
-349
-511
-413
-1,273
2Q of Yr to Sep 2007
1,136
1Q of Yr to Sep 2007
1,426
299
1,725
1Q of Yr to Sep 2007
-387
-80
-325
-792
1Q of Yr to Sep 2007
933
Note: Ameba publicity charges (PR fees of “Ameba Blog” ) of 56 million yen (1Q of 2007) and 149 million yen (2Q of 2007) included in Ameba.
6
Overview of Consolidated
Financial Results
Quarterly Consolidated Net Sales/Gross Margin Rate
gross margin rate excluding effects from netprice.com’s inventory valuation loss, etc.: 39.2%
Unit: %
Unit: million yen
20,000
19,362
18,402
3,093
15,000
42.7
43.4
44.1
43.4
42.7
39.6
41.7
10,000
13,857
13,213 13,275
28
314
42.2
41.2
41.5 41.5
39.4
1,053
547
36.7
10,118
11,360
70.0
18,087 1,889
60.0
1,654
14,580
327
50.0
42.3
38.0
37.8
37.2
8,582
40.0
30.0
7,873
7,103
6,334
5,000
3,984 4,173
4,735
5,416
20.0
2,510
10.0
1,270
0
-1,000
-127
03/
1-3
222
121
03/
4-6
363
482
472
409
247
506
604
628
612
615
933
1,136
0
03/
7-9
Yr to Sep 2003
Net Sale
03/
10-12
04/
1-3
04/
4-6
Yr to Sep 2004
Operating Income
04/
7-9
04/
10-12
05/
1-3
05/
4-6
Yr to Sep 2005
05/
7-9
05/
10-12
06/
1-3
06/
4-6
06/
7-9
Yr to Sep 2006
Investment Development Business Net Sales
06/
10-12
07/
1-3
Yr to Sep 2007
Gross Margin Rate
Note: The Investment Development Business net sales shown above are figures that conform to the segment information in financial statements.
7
4
Overview of Consolidated
Financial Results
Consolidated SG&A Expenses
Unit: million yen
Unit: %
50.0
7,000
5,938 6,073
6,000
5,265
40.0
38.4
35.8
3,695
36.5
36.0
3,292
30.0
2,266
2,558
2,875
36.5
4,090
4,309
4,622
4,889
5,000
4,479
4,000
36.0
32.6
34.8
32.3
33.5
32.8
31.4
3,000
28.6
2,000
1,000
20.0
04/
01-03
04/
04-06
04/
07-09
04/
10-12
Yr to Sep 2004
454
05/
01-03
05/
04-06
05/
07-09
05/
10-12
Yr to Sep 2005
404
528
06/
01-03
06/
04-06
06/
07-09
Yr to Sep 2006
06/
10-12
07/
1-3
Yr to Sep 2007
Sales
Consolidated
adjustment
354
33
35
28
33
22
45
43
54
46
62
67
57
85
Advertising
265
277
323
328
424
463
404
467
403
378
380
523
598
Personnel
990
1,193
1,306
1,507
1,726
1,932
1,958
2,069
2,024
2,338
2,476
2,703
2,777
Office
156
159
195
218
261
293
363
361
403
419
441
507
538
Others
468
440
619
678
712
691
850
901
871
902
1,035
1,187
1,168
SG&A Expenses Ratio
550
666
691
770
732
790
0
866
961
907
Note: Beginning with the April – June 2006 quarter, payment service expenses of 101 million yen for consolidated
subsidiary GCREST, Inc., have been appropriated from "Others" (payment fees) to "Sales."
8
4
Overview of Consolidated
Financial Results
Number of Employees in Consolidated Companies
1,581 employees at the end of March 2007 (decrease of 16 over the previous quarter).
191 new guraduates (consolidated) joined the group in April 2007.
Unit: People
1,800
1,464
Administration
9.6%
1,228 1,212 1,235
1,171
Increase of 429
1,200
Others
4.0%
1,561 1,597 1,581
Increase of 333
1,040
Sales
20.1%
Management
18.3%
900
799
734
600
Production
24.7%
609
Operation
14.8%
0
04/
04/
04/
1-3
4-6
7-9
Yr to Sep 2004
04/
10-12
05/
05/
1-3
4-6
Yr to Sep 2005
05/
7-9
05/
10-12
06/
06/
1-3
4-6
Yr to Sep 2006
06/
7-9
06/
10-12
Yr to Sep 2007
411
507
584
675
781
860
894
868
883 1,037 1,098
Advertising 162
Investment
Development
193
178
184
3
210
5
258
7
283
7
289
7
300
7
362
14
395
14
412
14
432
14
Corporate HQ 36
34
37
38
44
46
44
48
45
51
54
58
59
Media
Technical
8.5%
As with the diagram on the left,
does not include temporary and part-time workers.
1,113 1,076
"Note: The employees of Fraudia Communications, Inc. were transferred to Internet Advertising Agency Business from Media Business as of the July – September 2005 quarter
(this change was reflected in the Results Briefing for the First Quarter of the Year Ending September 2007 and thereafter)."
4
9
Overview of Consolidated
Financial Results
Second Quarter of the Year Endling September 2007: PL (year-on-year)
Jan – Mar 2007
Net Sales
19,362
13,857
39.7%
Gross Income from Sales
7,209
5,092
41.6%
Gross Margin
37.2 %
36.7 %
0.5points
SG&A
6,073
4,479
35.6%
SG&A Ratio
31.4 %
32.3 %
-0.9points
Operating Income
1,136
612
85.6%
5.9 %
4.5 %
1.4points
1,142
626
82.4%
Current Net Income Before
Tax and Other Adjustments
851
2,763
-69.2%
Current Net Income
384
2,292
-83.2%
Operating Profit Margin
Ordinary Income
Jan – Mar 2006
Change
Unit: million yen
Effect from valuation loss renounced for tax reasons.
In the same period of the previous year, the extraordinary profit due to the
consolidated subsidiaries’ profit from changes in equity of 2,283 million yen was recorded.
10
4
Overview of Consolidated
Financial Results
Second Quarter of the Year Endling September 2007: BS (over the previous quarter)
Unit: million yen
End of Mar 2007 End of Dec, 2006
Change
Current Assets
41,388
43,223
-4.2 %
(cash + marketable securities, etc.)
17,431
16,194
7.6 %
Fixed Assets
9,959
9,588
3.9 %
Total Assets
51,347
52,812
-2.8 %
Current Liabilities
18,003
17,507
2.8 %
371
276
34.4 %
32,973
35,028
-5.9 %
Fixed Liabilities
Shareholders' Equity
Decrease of unrealized capital gains, etc. due to mixi, Inc.’ s gain on sales of shares, etc.
11
4
Overview of Consolidated
Financial Results
Second Quarter of the Year Endling September 2007: CF (over the previous quarter)
Unit: million yen
Jan – Mar 2007
Oct – Dec 2006
CF from Operating Activities
1,993
- 1,919
CF from Investing Activities
- 1,439
- 960
CF from Financing Activities
268
- 763
Change in Cash and
Cash Equivalents
884
- 3,867
17,044
16,160
Term-End Balance of Cash
and Cash Equivalents
Acquisition of fixed assets, associated companies’ shares, etc.
Note: Cash and cash equivalents do not include the segregated account of CA Capital, Ltd.
12
4
Overview of Consolidated
Financial Results
Consolidated Business Forecast for the Year Ending September 2007
(October 2006 to September 2007)
Progress toward Business Forecast
Operating
Income
Ordinary
Income
75,000
5,000
5,000
2,500
37,450
2,069
1,996
770
49.9%
41.4%
39.9%
30.8%
Unit: hundred million yen
Net Sales
Business Forecast for the Year
Ending September 2007
Interim Period of the Year
Ending September 2007
Progress
Net Income
Consolidated Business Forecast for the Year Ending September 2007
Unit: hundred million yen
Net Sales
Operating
Income
Ordinary
Income
Net Income
Consolidated Business Forecast
for the Year Ending September 2007
75,000
5,000
5,000
2,500
Actual Performance for the Year
Ending September 2006
60,115
4,342
3,722
4,300
Change
24.8%
15.2%
34.3%
-41.9%
13
Existing Business
Media
Existing Business
Internet Media Business
14
Existing Business
Media
Consolidated Subsidiaries and Divisions that Constitute the Media Business
Media Business
Advertising
EC
EC
(product sales)
(charged services)
Other
Advertising
Agency Business
Ameba Headquarters
MicroAd Company
LifeMile Project
Blog Accessory Group
CA MOBILE, Ltd.
Media Business
EC Navi Company
netprice.com, ltd. (former netprice, ltd.)
GCREST, Inc
CyberAgent FX, Inc. (former CA Capital, Ltd.)
International Sports & Marketing Co., Ltd.
WeddingPark, Ltd.
CyberBuzz, Inc.
cybozu.net, Inc.
StoreFactory, Inc.
Investment
Development Business
Financial Plus, Inc.
Ameba Books, Ltd.
Crown Jewel, Inc.
Super Sweets, Inc.
Media Alliance Project
CA Search, Ltd. (former CA Guide)
15
Existing Business
Media
Internet Media Business (net sales)
Unit: million yen
12,000
9,612
9,000
10,089
Increased
by 24.0%
8,206
7,784
7,085
6,719
6,000
8,728
8,266
8,139
Increased
by 32.6%
5,596
3,000
Increased
by 10.2%
0
2005
2006
2007
1Q (Oct – Dec)
EC
2005
2006
2007
2Q (Jan – Mar)
2005
2006
2007
3Q (Apr – Jun)
2005
2006
2007
4Q (Jul – Sep)
3,142
5,173
6,460
3,556
5,004
6,633
4,242
5,085
4,752
5,735
Advertising 2,453
3,033
3,152
3,163
3,135
3,456
2,843
3,181
3,032
2,993
Note: Net Sales are reference values before excluding internal transactions.
16
Existing Business
Media
EC (e-commerce) Net Sales
Mobile commerce and commissions/charged services (online games)
continued to perform well.
Unit: million yen
7,500
6,460
6,633
Increased
by 32.6%
5,173
5,735
5,004
5,085
5,000
4,752
Increased
by 39.6%
3,556
4,242
3,142
Increased
by 18.3%
2,500
Increased
by 33.6%
0
2005
2006
2007
1Q (Oct – Dec)
2005
2006
2007
2Q (Jan – Mar)
2005
2006
2007
3Q (Apr – Jun)
2005
2006
1,673
2,652
3,296
1,876
2,591
3,616
2,215
2,522
2,414
2,856
PC Commerce
932
1,463
1,784
1,045
1,347
1,593
1,225
1,374
1,401
1,591
Commissions/
Charged Services
537
1,058
1,380
635
1,066
1,424
802
1,189
937
1,288
Mobile Commerce
2007
4Q (Jul – Sep)
Note: Net Sales are reference values before excluding internal transactions.
17
Existing Business
Media
Advertising Sales
Mobile advertising recovered despite the impact by specific industries (consumer finance).
Unit: million yen
4,000
3,033 3,152
Increased
by 10.2%
3,456
3,163 3,135
3,000
3,181
3,032 2,993
2,843
2,453
2,000
1,000
0
2005
2006
2007
1Q (Oct – Dec)
2005
2006
2007
2Q (Jan – Mar)
2005
2006
2007
2005
3Q (Apr – Jun)
2006
736
220
149
689
202
156
513
151
378
162
PC (WEB) Advertising
158
949
933
404
957
985
440
951
719
816
Mobile
(cell phone) Advertising
832
1,097
1,170
1,054
1,207
1,382
1,074
1,404
1,097
1,231
Research Business
252
186
208
356
256
268
200
177
212
238
Others
475
(including affiliate advertising)
581
692
660
513
665
616
498
626
546
PC (e-mail) Advertising
2007
4Q (Jul – Sep)
Note: Net Sales are reference values before excluding internal transactions.
18
Existing Business
Media
Grow into the No.1 Blog Media Nationwide
“Ameba Blog” PV
Unit: million PV
April 2007
Number of Blog set up
exceeded 1.6 million
1,200
1,157
Number of Blog set up
exceeded 1.5 million
1,000
914
903
698
696
216
207
1
2
806
800
698
881
654
600
615
536
521
502
507
Number of Blog set up
exceeded 1 million
440
423
400
400
381
Number of Blog set up
exceeded 500,000
348
313
291
287
286
200
224
370
301
260
Number of Blog set up
exceeded 100,000
317
270
264
262
285
406
351
317
343
361
273
172
276
138
95
191
107
71
0
9
10
30
11
45
12
68
48
1
2
3
4
5
6
7
8
9
21
10
23
11
24
12
28
1
Yr to Sep 2005
28
2
31
34
38
39
3
4
5
6
Yr to Sep 2006
PC
70
7
96
8
113
9
147
177
10
11
12
3
Yr to Sep 2007
mobile
Note: Company values calculated using the measurement tool “Analog.”
19
Existing Business
Media
Quarterly Sales of the “Ameba Blog”
Quarterly Sales of the “Ameba Blog”
Unit: thousand yen
450,000
440,780
413,598
360,000
322,511
330,268
270,000
209,088
180,000
148,131
85,604
90,000
34,724
21,194
0
Ameba
MicroAd
CyberBuzz
2Q, 2005
3Q, 2005
2,086
5,737
19,108
28,987
࡯
4Q, 2005
1Q, 2006
2Q, 2006
3Q, 2006
4Q, 2006
1Q, 2007
2Q, 2007
23,138
43,046
88,630
162,169
178,661
246,161
191,551
62,466
105,085
120,458
160,342
151,607
171,262
173,237
23,357
48,810
࡯
࡯
Ameba: Net Sales of tie-up advertisements, etc. run on Ameba.
CyberBuzz: Net sales of word-of-mouth advertisements using blogs.
࡯
࡯
࡯
࡯
MicroAd: Net Sales of advertisements that analyze and run contents, user situations, etc.
Note: Net Sales are reference values before excluding internal transactions.
20
Existing Business
Advertising Agency Business
Existing Business
Internet
Advertising Agency Business
21
Existing Business
Advertising Agency Business
Consolidated Subsidiaries and Divisions that Constitute the Advertising Agency Business
Advertising
Agency
Others
Advertising
Agency Business
Internet Advertising Headquarters
CA Search, Ltd.
Fraudia Communications, Inc.
CA/H, Inc.
CyberBuzz, Inc.
Adplayin', Inc.
Business Development Group, New Business Division
Media
Business
Investment
Development Business
22
Existing Business
Advertising Agency Business
Internet Advertising Agency Business (sales)
Continued growth of 7.7billion (3Q), 8.1 billion (4Q), 8.3 billion (1Q), and 9.2 billion (2Q)
despite the impact by specific industries (consumer finance) from the 3Q of 2006.
Unit: million yen
10,000
9,203
Increased by
29.0%
8,366
8,000
8,180
7,756
7,134
6,151
5,882
6,000
5,001
4,783
4,000
4,002
2,000
0
2005
2006
2007
1Q (Oct – Dec)
Advertising
Headquarters
CA Search, Ltd.
Fraudia
Communications, Inc.
CA/H, Inc.
Others
2005
2006
2007
2Q (Jan – Mar)
2005
2006
2007
3Q (Apr – Jun)
2005
2006
3,806
5,531
7,426
4,556
6,512
8,041
4,730
6,894
5,389
7,120
196
362
480
227
387
656
271
430
344
489
258
336
235
282
425
149
418
169
55
7
94
20
2007
4Q (Jul – Sep)
135
18
Note: Sales are reference values before excluding internal transactions.
Note: Sales of CA Search, Ltd. is the sales excluding former CA Guide which has been merged into the company.
23
Existing Business
Advertising Agency Business
Internet Advertising Agency Business (sales)
Increased revenues led by site listing advertisements
Unit: million yen
9,000
8,041
Increased by
23.5%
6,512
7,426
6,000
5,531
7,120
6,894
5,389
4,556
4,730
3,806
3,000
0
2005
2006
2007
1Q (Oct – Dec)
2005
2006
2007
2Q (Jan – Mar)
2005
2006
2007
3Q (Apr – Jun)
2005
2006
Own/Partner Media
1,283
1,679
1,824
1,664
1,874
1,951
1,537
2,141
1,652
1,834
Paid Search Ads.
1,081
1,756
2,348
1,197
1,826
2,638
1,497
1,987
1,616
2,075
Other Company Media
1,303
1,895
2,951
1,572
2,559
3,067
1,576
2,527
1,929
2,936
201
303
123
253
384
120
239
192
275
Other Production Fees, etc.
139
2007
4Q (Jul – Sep)
Note: Internet Advertising Headquarters net sales (before exclusion of internal transactions)
24
Existing Business
Advertising Agency Business
Quarterly Sales Productivity per Sales Employee
Unit: million yen
Unit: people
200
60
50.9
50
40.5
40
37.1
31.5
42.2
145
145
40.7
37.9
37.2
166
41.5
166
42.9
159
49.6
46.7
162
128
136
120
32.6
30
29.5
90
75
76
94
160
108
98
80
20
40
10
0
03/
10-12
04/
1-3
04/
4-6
Yr to Sep 2004
04/
7-9
04/
10-12
05/
1-3
05/
4-6
Yr to Sep 2005
Quarterly Productivity
05/
7-9
05/
10-12
06/
1-3
06/
4-6
Yr to Sep 2006
06/
7-9
06/
10-12
07/
1-3
0
Yr to Sep
2007
Number of Sales Employees
Note: Number of sales employees in the Internet Advertising Headquarters.
25
Investment Development
Business
Investment Development Business
26
28
Investment Development
Business
Consolidated Subsidiaries and Divisions that
Constitute the Investment Development Business
Advertising
Agency Business
Media Business
Investment
Development
Investment
Development Business
Investment Development Business
VC Business Division
CyberAgent Investment, Inc.
27
Investment Development
Business
Investment Development Business (net sales)
Unit: million yen
3,093
3,000
2,000
1,889
1,654
1,053
1,000
547
327
314
28
0
05/4-6
05/7-9
05/10-12
06/1-3
Yr to Sep 2005
06/4-6
06/7-9
06/10-12
07/1-3
Yr to Sep 2007
Yr to Sep 2006
Net Sales
547
1,053
314
28
327
3,093
1,654
1,889
Operating Income
461
952
249
0
262
2,722
1,426
1,765
Note: Figures conform to the segment information in financial statements.
28
Investment Development
Business
Business Model and Actual Investments
Business Model
Past Investments
Listing Day
Excavation
and
Investment
Prospective
Company
Internet Media
Business
Media Operation
Know-how
Internet Advertising
Agency Business
Approximately 2,000
Business Partners
Finding
Sales of Advertisements,
Media Provision, etc.
AQ INTERACTIVE INC.(3838)
February 28, 2007
Web Do Japan Co., Ltd.(2138)
February 14, 2007
interspace co., ltd.(2122)
September 19, 2006
mixi, Inc. (2121)
September 14, 2006
OKWave㧔3808)
June 20, 2006
Drecom Co., Ltd.(3793)
February 9, 2006
S-GRANT Co., Ltd.(8943)
December 20, 2005
DeNA Co., Ltd. (2432) ※
February 16, 2005
WebCrew Inc. (8767) ※
September 21, 2004
Sammy NetWorks Co., Ltd.(3745) ※
September 1, 2004
TAKE AND GIVE. NEEDS Co., Ltd(4331) ※
December 12, 2001
Fostering
IPO
Investment
Development
Business
Listed Company
Sale
※ Including stocks acquired for pure investment
purposes and reported in extraordinary gain.
29
Investment Development
Business
Actual Investment Performance in Web2.0 companies
Unit: million yen
18,000
Investment will be made up to no more than20%
of consolidated assets.
Operational Investment Securities Balance
Companies invested in as of March 31 2007: 53
15,881
Invested Companies List (as of March 31, 2006)
IPO mixi, Inc.
President: Kenji Kasahara
Established June 3, 1999.
SNS service, recruitment advertising, etc. (listed September 14, 2006 on Tokyo Stock Exchange Mothers: 2121)
12,000
10,835
IPO
interspace co., ltd.
President: Shinichiro Kawabata
Established November 8, 1999.
Affiliate service and price-comparison site operation.
8,290
13,703
8,862 6,346
6,000
IPO
Web Do Japan Co., Ltd.
AQ INTERACTIVE INC.
Unoh Inc.
2,041 1,912
133
1,536
821 280 1,755 1,656 2,178 1,973 1,944
1,256
0 Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31,
2004
+
2005
2005
2005
2005
2006
2006
President and CEO: Yoji Ishii
Established March 1, 2000.
(scheduled to be listed February 28, 2007 on JASDAQ: 3838)
President and CEO: Hiroshi Watanabe
Established February 9, 2001
Comprehensive point conversion site operation, etc.
3,796 3,568
504
Established May 24, 2001.
(scheduled to be listed February 14, 2007 on Osaka Securities Exchange Hercules: 2138)
Game software planning, development and sales
G.plan Inc.
430
President and CEO: Koji Obuchi
Internet media content business, etc.
IPO
(listed September 19, 2006 on Tokyo Stock Exchange Mothers: 2122)
2006
2006
2007
= Operational Investment Securities Balance
Book Value after Considering Losses
Unrealized Capital Gains and Losses
Note: Includes amount invested for sales.
CEO: Shintaro Yamada, Executive Vice President: Atsushi Ishikawa
Established August 1, 2001.
Internet media business, etc.
Real Communications Co., Ltd.
President and CEO/COO: Hidenori Suzuki
Established November 7, 2003.
Wholesale, mail-order, product distribution, system development, and advertising businesses.
CROSSWARP Inc.
President and CEO: Shingo Yamazaki
Established October 4, 2001.
Internet marketing business, etc.
WEBSHARK Inc.
President: Seiji Kimura
Established February 1, 2002.
Drop shipping business, etc.
30
“Ameba Blog” Strategy
“Ameba Blog” Strategy
36
31
“Ameba Blog” Strategy
Accelerated Migration to Web2.0 Media
What is Web2.0 Media?
This is a concept which encompasses all of the rising trends in net services, and includes CGMs, etc.,
created in conjunction with service users.
Portal
Blog: "Ameba Blog"
Video Sharing Service: "AmebaVision"
Reach
Number of Users
Net Sales
Magnitude of Needs
SNS: "mixi"
Video Sharing Service: "YouTube"
Web2.0 Media
Long Tail
Type of Internet Media
32
“Ameba Blog” Strategy
Accelerated Migration to Web2.0 Media
Purchased the product after
reading the blog…40.8%
Web2.0 media market including blogs, SNS, etc.
will increase approximately eightfold in 5 years.
Blog/SNS Market
Unit: 100 million yen
2,000
1,706
1,600
Increase approx.
eightfold in 5 years
1,522
40.8%
Blog
(n=3,859)
1,186
1,200
824
800
13.9%
SNS
(n=1,348)
484
400
0
0
222
2006
5
10
15
20
25
30
35
40
45
Unit: %
2007
2008
2009
2010
2011
Source: Nikkei Research
January 22, 2007
Source: NRI forecasts
December 21, 2006
33
“Ameba Blog” Strategy
Service Expansion and PV of “Ameba Blog”
“Ameba Blog” PV
Unit: million PV
1,200
Apr 2007:Number of Blog set up exceeded 1.6 million.
1,157
Open recording studio “AmebaStudio” opened.
Number of Blog set up exceeded 1.5 million.
1,000
Ameba-Blog-based TV drama, "Kirakira Kensyui" (TBS network) began broadcasting.
Won first place in "Web of the Year 2006."
914
903
698
696
216
207
Jan
Feb
Number of Blog set up exceeded 1,340,000.
806
800
ˁ[Profile Function]added
ˁ [Access Analysis] started
ˁÛÁææéìéáôåÝ óôáòôåä
ˁÍïâéìå ÛÉîéôéáì Òåçéóôòáôéïî¯Ìïçéî ÆõîãôéïîÝ áääåä
899
[Point Return] started
600
ˁ[BLOPPA!] added
ˁ[Ameba Message] started
ˁ[AmebaVision] started
ˁMobile [Reader Registration/Comment Function] added
615
536
521
502
507
440
Number of Blog set up exceeded 1 million.
423
400
400
381
“Ameba Scrapbook Beta Version” started.
348
Number of Blog set up exceeded 500,000.
313
291
287
286
224
Number of Blog set up exceeded 100,000.
200
370
317
270
264
262
285
406
351
301
260
317
343
361
273
172
Published first-ever blog-based book:
“Jitsuroku Oniyome Nikki”
95
9
Oct
30
Nov
45
Dec
191
107
68
48
Jan
276
138
71
Sep: “Ameba Blog” started.
0
698
654
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
21
Oct
23
Nov
24
Dec
28
Jan
Yr to Sep 2005
28
Feb
31
34
Mar
Apr
38
May Jun
Yr to Sep 2006
PC
39
70
Jul
96
Aug
113
Sep
147
177
Oct
Nov
Dec
Mar
Yr to Sep 2007
mobile
Note: Company values calculated using the measurement tool “Analog” .
34
44
“Ameba Blog” Strategy
Accelerated PV Expansion
Topic Creation through 656 Celebrity Bloggers
“Ameba Blog” PV
Unit: million PV
1,200
Chinatsu Wakatsuki
Shinji Takehara
Emiri Henmi
Unit: %
20
1,157
Moe Oshikiri
16.1%
1,000
16
914 903
Saeko
Yakkun Sakuraduka
Leah Dizon
Yu Yamada
13.0%
806
800
12.5%
698
11.6%
12
654
10.7%
600
Kazuhiko Kamata
Oki Matsumoto
(INTELLIGENCE, LTD.)
(Monex, Inc.)
Fumie Wakabayashi
Masato Matsuura
502
(AVEX GROUP HOLDINGS INC.)
536
8
440
6.3%
400
400 381
Kahoko Tsunezawa
Futenou
Antonio Inoki
3.5%
Tadahiro Nomura
(Trenders, Inc.)
200
0.7%
0
Kimiko Date
Shugo Fujii
Jin Shirosaki
Mao Kobayashi
1.0% 1.1%
4
2
2006/ 2006/
05
06
4
14
18
2006/ 2006/ 2006/
07
08
09
Yr to Sep 2006
Celebrities' Blog Total
Tokyo Philharmonic Orchestra Takahito Soma
Usako Oda
Kazuma
4
2.8%
41
74
93
114 117 186
2006/
2006/
2006/
2007/
10
11
12
1
2007/ 2007/
2
0
3
Yr to Sep 2007
Celebrities' Blog PV Ratio
35
44
“Ameba Blog” Strategy
“Ameba Blog” PR Stragegies
Toward enhancement of “Ameba Blog” awareness and PV increase
through reinforcing of topic creation.
PR Measures
April 17, 2007
Tie-up with TV
“Oniyome Nikki – Iiyu Dana” –
blog coupled with the drama
TV drama to start
“Oniyome Nikki – Iiyu Dana”
February 5 and April 4, 2007
Special sponsorship for
K-1 World MAX 2007
“K-1 World MAX 2007” supporting blog
“Oniyome Nikki – Iiyu Dana” – press conference
Tie-up with Magazine
March 25, 2007 Topic Creation
March 25, 2007
AmebaStudio
AmebaStudio
Conversation between Chinatsu Wakatsuki and
President Matsuura of avex
“Miss YS Ameba Blog Otome Gakuin” : joint project with Young Sunday
36
44
“Ameba Blog” Strategy
“Ameba Blog” PR Stragegies
“Harajuku Ameba Blog Broadcast Station” blog
February 14, 2007
AmebaStudio
Grand opening of recording studio with live audience
December 2006 Topic Creation
January 2007
Tie-up with major computer schools (4,000 schools)
Tie-up with manga cafes “Mambo” and “POPEYE”
Scenes from “BLOG of the year 2006”
press release
Press release of
November 2006 Tie-up with TV
Project coupled with TV
“BLOG of the year 2006”
“Kirakira Kensyui”
-- Aiming for enhancement,
diffusion, and vitalization of
blog awareness--
(TBS network)
Blogs as Informational Sources
Ai Iijima’ s Porn Hospital
Topic Creation
Campaign blog of “Kirakira Kensyui”
Second Life Project (in preparation)
Eriko Sato’ s “SATOERI TIMES”
37
44
“Ameba Blog” Strategy
"Ameba Blog" PR Strategies
Further creation of topics aiming to increase the number of
visitors who naturally flow into blogs
Unit: Case
300,000
Unit: Case
60,000
Top blog in service search cases
Visitors who naturally flow into “Ameba Blog”
57,262
267,843
250,000
237,406
226,153
45,495
45,000
46,599
42,165
39,880
200,000
186,745
37,396
172,469
32,937
146,136
150,000
36,329
35,186
30,000
26,107
25,002
26,314
19,992
100,318
89,350
79,379
100,000
13,104
15,000
67,632
10,357
50,000
10,489
3,568
0
14,085
Jun Jul
Aug Sep
Yr to Sep 2006
Oct
Nov
Dec Jan Feb
Yr to Sep 2007
Mar
Search cases specifying "Ameba Blog" as a search word (overture).
0
Apr May Jun Jul Aug
Yr to Sep 2006
Sep
7,861
Oct Nov Dec Jan Feb Mar
Yr to Sep 2007
Visitors who naturally flow into blogs via PCs
Visitors who naturally flow into blogs via mobile phones
38
44
“Ameba Blog” Strategy
AmebaRoom
Personal Media Compiling Profiles, Photos, Blogs, Music, Videos, and SNS functions
Music
Limited Disclosure Function
Addition of a limited disclosure function to open blogs
Profile Function Expansion
Videos
Profiles
As with blogs, integrate the profile page (function) into media.
1）Vitalization of communities
2）Increased user circuit rate and PV
Blogs
U.S. SNS: “MySpace”
Each position can freely
be customized
Photos
Among the SNS advertising
net sales of 865 million dollars
in 2007,
MySpace is expected to
dominate 525 million dollars.
Source: U.S. eMarketer
Artists only AmebaRoom
Sample: “m-flo”
SNS
39
44
“Ameba Blog” Strategy
Ameba PR : Word-of-Mouth Promotional Service
Ameba PR
Nation’s first service that allows companies to directly provide
word-of-mouth information to bloggers
Companies
Word-of-mouth
promotional fee
＄
ą
Improved royalties
through ranking
Bloggers
No cash incentive
Spread of
word-of-mouth information
160
Word-of-mouth promotion
million people
Characters grow every time
a word-of-mouth article is written
Leads to blog vitalization
40
44
“Ameba Blog” Strategy
Ameba PR : Word-of-Mouth Promotional Service
Page listing links to bloggers who wrote
the same word-of-mouth articles
Click
Click
Page listing participating word-of-mouth topics
Page with details of blog topics provided to bloggers
41
44
①
Existing Business
②
③
Aim for a continued investment
Back to growth trend.
performance by utilizing the
strengths of discovering
Continued priority
investment.
and fostering.
Internet
Media
Business
Internet
Advertising
Agency
Business
Investment
Development
Business
Ameba
(Ameba Blog)
42
Establish a High Revenue Business Model
through the Growth of “Ameba Blog”
43
VISION
To become a company that is the hallmark
of the 21st Century.
44
To become a company that is the hallmark of the 21st Century.
We must not allow ourselves to slip away from the growing internet industry.
Conversely, we must continue to actively participate in a variety of related fields.
We must not forget the “Team CyberAgent” spirit.
We must commit ourselves fully to recruitment.
We must create an environment where our valuable employees can stay with us throughout the years.
We must promote the rise of the young. Promotion by seniority is forbidden.
We must be a rule abiding and moralistic company. Never forget the Livedoor scandal.
We must become a global company by developing the best globally compatible internet services.
45
Reference Material (1)
Reference Material(1)
Overview of Consolidated Financial Results
46
Reference Material (1)
Second Quarter of the Year Ending September 2007: PL (over the previous quarter)
Jan – Mar 2007
Net Sales
19,362
18,087
7.0%
Gross Income from Sales
7,209
6,872
4.9%
Gross Margin
37.2 %
38.0 %
-0.8points
SG&A
6,073
5,938
2.3%
SG&A Ratio
31.4 %
32.8 %
-1.4points
Operating Income
1,136
933
21.8%
5.9 %
5.2 %
0.7points
1,142
853
33.9%
Current Net Income Before
Tax and Other Adjustments
851
879
-3.2%
Current Net Income
384
385
-0.3%
Operating Profit Margin
Ordinary Income
Oct – Dec 2006
Change
Unit: million yen
47
Reference Material (1)
Net Sales, Operating Income, and Gross Margin Rate per Half-Year Term
Unit: %
50
Unit: million yen
40,000
43.1
41.6
38.6
43.7
37,450
42.2
41.9
41.4
39.5
32,982
38.0
30,000
27,133
40.3
37.6
40
24,573
30
20,000
18,700
14,976
20
11,751
10,000
8,909
4,716
0
-1,000
6,108
7,293
10
344
-51
-227
2002
First Half
2002
Second Half
845
881
753
3,125
1,898
1,217
2,069
0
-486
2003
First Half
2003
Second Half
Net Sales
2004
First Half
2004
Second Half
Operating Income
2005
First Half
2005
Second Half
2006
First Half
2006
Second Half
2007
First Half
Gross Margin Rate
48
Reference Material (1)
Overview of Consolidated Interim Financial Results of the Year Ending September 2007 (PL)
Unit: million yen
‘06/10 - ’ 07/3
‘05/10 - ’ 06/3
Change
Net Sales
37,450
27,133
38.0%
Gross Income from Sales
14,082
10,319
36.5%
37.6 %
38.0 %
-0.4points
SG&A
12,012
9,102
32.0%
SG&A Ratio
32.1%
33.5%
-1.4points
Operating Income
2,069
1,217
70.0%
5.5 %
4.5 %
1.0points
Ordinary Income
1,996
1,284
55.5%
Current Net Income Before
Tax and Other Adjustments
1,730
6,719
-74.3%
770
4,783
-83.9%
Gross Margin
Operating Profit Margin
Current Net Income
49
Reference Material (1)
Overview of Consolidated Interim Financial Results of the Year Ending September 2007 (BS)
Unit: million yen
End of Mar 2007 End of Mar, 2006
Change
Current Assets
41,388
34,327
20.6 %
(cash + marketable securities, etc.)
17,431
18,208
- 4.3 %
Fixed Assets
9,959
9,112
9.3 %
Total Assets
51,347
43,439
18.2 %
Current Liabilities
18,003
13,145
37.0 %
371
315
17.8 %
32,973
29,979
10.0 %
Fixed Liabilities
Shareholders' Equity
50
Reference Material (2)
Reference Material(2)
“Ameba Blog” Service
Mobile Function Expansion
51
Reference Material (2)
“Ameba Blog” Service
Profile Function
Íåóóáçå Æõîãôéïî
Start: April 2007
This is a new profile page which displays profile information,
photos, blogs, music, videos, etc.
Customization and layout of designs are also possible.
ID holders who do not write blogs can easily own this personal media.
Start: July 2006
This is a function which lets messages to be
sent and received.
Promotes communication between
bloggers and readers.
Áìâõí Ãòåáôéïî Æõîãôéïî
Ðïéîô Áææéìéáôå Æõîãôéïî
Start: April 2007
This is a function which lets photo data to be updated and
classified according to each type.
Various ways of showing the photos on the profile page
(e.g., slide shows) are possible.
Start: August 2006
This is a function which lets users introduce
products on blogs and collect points if they are sold.
Revitalizes blogs since points are returned
to the users.
AmebaVision Video Sharing Service
Start: July 2006
This is a video sharing service in which users
post their videos.
AmebaPR
Start: April 2007
This is a function which allows rankings to go up
if articles relating to blog topics provided by
companies are written.
Áããåóó Áîáìùóéó
Start: October 2006
This is a function which records and analyzes blog
access. Increases blog use since analysis is done in a
way that is even easy for beginners to understand.
Áíåâá Îå÷ó
Displayed on the Top page from August 2006.
Original news is created and distributed.
“Peta” (footprint) Function
Start: November 2006
This is a function which allows blog visitors to
intentionally leave their footprints (trace of visits).
52
Reference Material (2)
“Ameba Blog” Service
Ðòïæéìå Æõîãôéïî
AmebaRoom
“Design Change" Page
Message Function - Communication Tool
Messages similar to emails can be sent from the reader to the
writer with just one click. PV can be improved by aiming to
enhace this reader-conscious service.
Various types of customization
is possible as a personal
media page.
Browsers can find and link
with members who have
similar hobbies/tastes.
Message In-Box
Album Creation Function
By choosing images stored in the albums, they can be shown
as a slide show on AmebaRoom.
Message
Point Affiliate Function
Advertisement Running Costs Returned to Bloggers
August 22, 2006: start of advertising fee returned to users (10 – 20%).
Turn into a “profitable media” by giving away Ameba points.
September 20, 2006: affiliate started.
Search Page
Photo
“Photo Uploading” Page
Search Result Page
Blog using the Service
Photo
“Photo Editing” Page
53
Reference Material (2)
“Ameba Blog” Service
Öéäåï Óèáòéîç Óåòöéãå ­ ÁíåâáÖéóéïî
AmebaPR
As of May 7, 2007
Approx. 140,000 posting; approx. 800,000 – 1 million streaming per day
AmebaVision Top Page
Creators Collection
Page listing word-of-mouth
ranking topics
Page with details of word-of-mouth
ranking topics
Áíåâá Îå÷ó
Access Analysis
This is a function that analyzes the number of blog
browsers, attributes of visitors, etc.
High-quality, reader-conscious contents can be increased.
Áããåóó ¨éî ãèòïîïìïçéãáì ïòäåò©
From the list of word-of-mouth topics, users can freely choose the topics
and post related articles. “Participating in word-of-mouth ranking” will
automatically be displayed on such articles so that it is clear that they are
wrote based on information provided by companies.
Weekly Ameba Blog Ranking
Blog news, etc. are displayed from time to time
on the management page. Topic sharing between
readers and writers can be conducted easily since
updating blog articles by quoting the news is also easy.
Blog participating in the
word-of-mouth ranking
“Peta” (footprint) Function
This is a function which allows blog
visitors to intentionally leave their
footprints (trace of visits).
Ameba News Top Page
54
Reference Material (2)
Mobile Function Expansion
A Mobile service that has the same functions as PCs.
Renewal: September 12, 2006
PV is also increased by having the same functions as PCs.
Ameba Headquarters
http://m.ameblo.jp/
Mobile Service PV
Unit: thousand PV
“Ameba Blog”
Mobile Top Image
Chinatsu Wakatsuki Official Blog 300,000
“Maabo Tofu wa Nomimono Desu”
276,074
250,000
My Management Page
216,789
207,828
(Blog Edit Page)
Favorite Registration
Function
Petit "Me"
(message)
Function
200,000
“Peta”
(footprint)
Function
Profile Function
150,000
191,264
177,780
147,848
113,166
96,463
100,000
70,281
50,000
24,704 28,003
0
Dec
Jan
28,230
Feb
39,660
38,118
31,975 34,343
Mar
Apr
May
Jun
Yr to Sep 2006
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Yr to Sep 2007
55
Reference Material (3)
Reference Material(3)
CAJJ Program
Company Overview
Business Model
56
Reference Material (3)
CAJJ Program Model Diagram
CyberAgent Business and Personnel Development Program
CAJJ Program Model Diagram
(CyberAgent Business and Personnel Development Program)
As of Junuary 2007
J2
J1
Promotion Standard
(Period: 3 to 6 months)
ЈGross profit of 15 million yen/month
Lower limit on losses:
60 million yen/6 months
Promotion Standard
(Period: 3 to 6 months)
ЈGross profit of 5 million yen/month
Lower limit on losses:
30 million yen/6 months
J3
New Businesses (Groups)
Exploration of business models
J2
Business (Projects) Undergoing Anticipatory Investment
Continued commercialization
J1
Core Businesses (Companies)
Continued business growth
J1 Restructuring Considerations
ЈThree consecutive quarters of unachieved
operating income budget
Three consecutive quarters of lower operating income
J2 Restructuring Considerations
⇒Three consecutive quarters of unachieved operating income budget
Three consecutive quarters of lower operating income
57
Reference Material (3)
CAJJ Businesses
Name of Business or Affiliated Company
Focused
Business
J1
Ameba Headquarters
Web2.0 Media – Using Blogs as Platforms, where Users Play the Leading Part
1
2
3
Internet Advertising Headquarters
MicroAd Company
CA MOBILE, Ltd.
Internet advertising business
4
5
6
7
EC Navi Company [merged with former All Navi Company]
CA Search, Ltd.
GCREST, Inc.
CyberAgent FX, Inc.[former CA Capital, Ltd.]
International Sports & Marketing Co., Ltd.
Wedding Park, Ltd.
Price/information comparison website
Netprice.com, ltd.
Fraudia Communications, Inc.
CyberBuzz, Inc.
cybozu.net, Inc.
Crown Jewel, Inc.
LifeMile Project [former Media Headquarters]
Media Alliance Project
Online shopping service websites
Blog Accessory Group
Adplayin’, Inc.
y Inc.
StoreFactory,
y
g
CyberAgent
Investment, Inc.
CA/H, Inc.
Financial Plus, Inc.
Ameba Books, Ltd.
Super Sweets, Inc.
Business Development Group, New Business Division
Blog accessory portal website
8
9
J2
1
2
3
4
5
6
7
J3
Service Contents
1
2
3
4
5
6
7
8
9
Note: netprice, ltd. changed its name to netprice.com, ltd. on February 1, 2007.
Blog network advertising distribution services
Mobile marketing
Planning, execution and operation of search engine marketing strategies
Online game
Financial services
Sports contents
Wedding information website
Suggestion-type media agency specialized for women (promoted to J1 7/1)
Word-of-mouth marketing business (promoted to J2 7/1)
Business portal website
Carefully selected apparel brand auction website (promoted to J2 10/1)
Net media for total information provision and point services
Businesses centered on partnering with other companies
In-game advertising business
p shipping
pp g business
Drop
Venture capital business
Advertising business focused on internet marketing
Stock information software service
Publishing services
Operations of SNS and EC business related to sweets
Administration, etc., of the training course for Internet advertising staff
As of March 31, 2007
58
Reference Material (3)
Company Overview
Company Name
Head Office
CyberAgent, Inc. (securities code: 4751)
Shibuya Mark City West 21F, 1-12-1 Dogenzaka, Shibuya-ku, Tokyo
West Japan Division
Osaka Office
Meiji Yasuda Life Osaka Umeda Bldg. 14F, 3-3-20 Umeda, Kita-ku, Osaka
West Japan Division
Nagoya Office
Nishiki Park Bldg. 15F, 2-4-3 Nishiki, Naka-ku, Nagoya, Aichi
West Japan Division
Fukuoka Office
Fukuoka Kogin Bldg. 9F, 1-13-2 Tenjin, Chuo-ku, Fukuoka
Established
Capital
Number of Employees
March 18, 1998
6,743,447,584 yen (as of March 31, 2006)
1,581 / CyberAgent Group Overall (as of March 31, 2006)
Average Age
28.3 / CyberAgent alone (as of March 31, 2006)
Annual Sales
Approx.60.1 billion yen (year ending Sep. 2006)
Memberships
Member of Japan Advertising Review Organization, Inc.
Member of Japan Internet Advertising Association
Member of Advertising Cooperative Association
Member of Japan Advertising Agencies Association
59
Reference Material (3)
Business Model
Client
Internet Media
Business
●Internet Advertisement Planning,
Proposal and Effectiveness Verification
● Information Provision
through Internet Media
● Charged Services/Product Sales
● Subscription
③ Investment
Development
Business
● Product Purchase/Usage Fees
②
Internet Advertising
Business
Internet
Advertising Agency
User
● Advertising Cost
Clients (Advertisers)
Users (Individuals/Consumers)
①
Internet Media
ク
ラ
イ
ア
ン
ト
︵
広
告
主
︶
(1) Internet Media Business
Advertising: Advertisement using Web2.0 Media centered on "Ameba Blog." Mobile advertising, etc.
(2) Internet Advertising Business
Conduct direct sales of Internet media ad spots to advertisers.
(3) Investment Development Business
Utilize our wide business experience to discover, invest in and foster promising businesses and to obtain profits through their sales, IPO, etc.
60
Reference Material (3)
Internet Advertising Industry Map
Advertising Agencies
Yahoo(4689)
Dentsu (4324)
Google
Hakuhodo DY Holdings (2433)
Mixi（2121）
Opt(2389)
Rakuten(4755)
Clients (Advertisers)
Users (Individuals/Consumers)
Internet Media
Septeni (4293)
61