Existing Business

CyberAgent, Inc
Results Briefing for the Third Quarter
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
for the Third Quarter
April – June 2007
2
Overview of Consolidated
Financial Results
Highlights of the Third Quarter (April – June 2007)
Net Sales
18,803 million yen
(increased by 29.0% on a year-to-year basis)
Operating Income
1,507 million yen
(increased by 145.0% on a year-to-year basis)
“Ameba Blog”
The PV count increased
by 237% ona year-to-year basis.
Net sales (excluding Investment Development Business)
increased by 17.7% on a year-to-year basis.
The netprice group made good progress although experiencing
effects of resizing.
Investment Development Business continued to enjoy an excellent
condition and Existing Business’ revenues increased.
A significant improvement was actualized due to
netprice group’ s restructuring.
Grew into the No.1 blog media nationwide. Accelerated PV expansion.
(cf.) July 2007: 1.5 billion PV
Note: Existing business refers to businesses excluding Ameba business and investment development business.
3
Overview of Consolidated
Financial Results
① Existing Business
②
Aim for a continued investment
Growth Trend
Internet
Media
Business
Internet
Advertising
Agency
Business
performance by utilizing the strengths
of discovering and fostering.
Investment
Development
Business
③
Continued priority
investment.
Ameba
(Ameba Blog)
4
Overview of Consolidated
Financial Results
Quarterly Consolidated Net Sales
Unit: million yen
20,000
19,362
18,803
18,087
18,402
Increased by
29.0%
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
Recovery of the
Exisiting Business
2Q, 2007
Unit: million yen
2,500
Unit: million yen
3,000
2,409
2,000
1,765
Investment
Development Business
1,500
Consolidated
Operating Income
700
Existing Business 644
1,136
0
900
-1,500
0
-413
-1,273
300
0
1,507
1,270
Increased by
145.0%
-500
-1,000
Ameba
-590
-1,037
-1,500
612
604
600
既存事業
㧔PGVRTKEG㧕
-447
Existing Business
-860
Ameba
-1,000
1,507
663
Existing Business
Existing Business
-500
500
2,510
Consolidated
Operating Income
1,000
1,136
933
1,881
Investment
Development Business
1,000
1,200
2,544
2,500
2,000
1,500
3Q, 2007
Unit: million yen
628
615
2005
2006
506
247
2005
2006
2007
2005
Operating Income Composition
Investment
Development
Business
Existing Business
2006
2007
2Q (Jan – Mar)
2005
1Q (Oct – Dec)
Total
2006
Existing Business
2007
3Q (Apr – Jun)
2007
Ameba
2005
2006
2007
4Q (Jul – Sep)
Consolidated
Operating Income
Total
3Q of Yr to Sep 2007
1,881
663 2,544
3Q of Yr to Sep 2007
-447
-590
-1,037
3Q of Yr to Sep 2007
1,507
2Q of Yr to Sep 2007
1,765
644 2,409
2Q of Yr to Sep 2007
-860
-413
-1,273
2Q of Yr to Sep 2007
1,136
Note: Ameba publicity (PR fees of “Ameba Blog” ) charges of 149 million yen (2Q) and 243 million yen (3Q) included in Ameba.
6
Overview of Consolidated
Financial Results
Restructuring of the netprice Group
Fixed costs reduction of approximately 227 million yen (24.3% over 2Q) in the 3Q.
netprice Group
Unit: million yen
5,000
Net Sales
Operating Income
Unit: million yen
Measures for 4Q of 2007
3,781
3,195
3,789
3,355
3,010
1
Employing a flow-type,
stockless retail model
2
Appropriate cost control
3
Incubating subsidiaries having
growth potential
2,915
2,500
500
74
67
45
0
0
-17
-79
-500
Defacto Standard Co., Ltd.
Cyan Co., Ltd., etc.
-511
2006
2Q
2006
3Q
2006
4Q
2007
1Q
2007
2Q
2007
3Q
7
Overview of Consolidated
Financial Results
Quarterly Consolidated Net Sales/Gross Margin Rate
Unit: %
Unit: million yen
20,000
18,402
3,093
15,000
42.7
43.4
44.1
43.4
42.7
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
19,362
18,803
18,087 1,889 2,027
60.0
1,654
14,580
327
50.0
42.3
38.0
37.8
39.3
37.2
8,582
40.0
30.0
7,873
7,103
6,334
5,000
4,173
4,735
5,416
20.0
2,510
10.0
1,270
121
222
03/
4-6
03/
7-9
363
482
472
409
247
506
604
628
612
615
933
1,136
1,507
0
0
-1,000
Yr to Sep 2003
Net Sale
03/
10-12
04/
1-3
04/
4-6
04/
7-9
Yr to Sep 2004
Operating Income
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
Yr to Sep 2006
Investment Development Business Net Sales
06/
7-9
06/
10-12
07/
1-3
07/
4-6
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.
8
4
Overview of Consolidated
Financial Results
Consolidated SG&A Expenses
Unit: million yen
Unit: %
7,000
5,938 6,073 5,890
40.0
36.0
38.4
36.5
36.5
36.0
4,090
4,309
30.0
2,558
4,479
34.8
3,695
3,292
4,622
4,889
32.6
5,265
5,000
33.5
32.8
32.3
2,875
6,000
4,000
31.4
31.3
3,000
28.6
2,000
1,000
20.0
04/
4-6
04/
7-9
04/
10-12
Yr to Sep 2004
05/
1-3
05/
4-6
05/
7-9
05/
10-12
Yr to Sep 2005
06/
1-3
06/
4-6
06/
7-9
06/
10-12
07/
1-3
07/
4-6
Yr to Sep 2007
Yr to Sep 2006
Sales
Consolidated
adjustment
454
35
28
33
22
45
43
54
46
62
67
57
85
75
Advertising
277
323
328
424
463
404
467
403
378
380
523
598
622
2,476
2,703
2,777
2,778
404
528
550
666
691
770
732
790
866
961
907
736
1,193
1,306
1,507
1,726
1,932
1,958
2,069
2,024
2,338
Office
159
195
218
261
293
363
361
403
419
441
507
538
548
Others
440
619
678
712
691
850
901
871
902
1,035
1,187
1,168
1,131
Personnel
SG&A Expenses Ratio
0
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."
9
4
Overview of Consolidated
Financial Results
Number of Employees in Consolidated Companies
Increase of 115 employees over the end of March due to admission of new graduates.
Unit: People
1,800
1,696
1,561 1,597 1,581
Increase of 333
Others
7.4%
1,464
Increase of 429
1,200
1,171
Administration
9.7%
1,228 1,212 1,235
Sales
21.8%
1,040
Management
16.6%
900
799
734
600
Operation
13.4% Technical
8.6%
0
04/
4-6
04/
7-9
04/
10-12
Yr to Sep 2004
05/
1-3
05/
4-6
05/
7-9
05/
10-12
Yr to Sep 2005
06/
1-3
06/
4-6
06/
7-9
Yr to Sep 2006
06/
07/
07/
10-12 01-03 04-06
Yr to Sep 2007
507
584
675
781
860
894
868
883 1,037 1,098
Advertising 193
Investment
Development
178
184
3
210
5
258
7
283
7
289
7
300
7
362
14
395
14
412
14
432
14
493
15
34
37
38
44
46
44
48
45
51
54
58
59
83
Media
Corporate HQ
Production
22.5%
As with the diagram on the left,
does not include temporary and part-time workers.
1,113 1,076 1,105
Note 1: 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).
Note 2: 9 employees joined our management headquarters between April – June 2007 through the handicapped employment initiative.
10
4
Overview of Consolidated
Financial Results
Third Quarter of the Year Ending September 2007: PL (year-on-year)
Unit: million yen
Apr – Jun 2007
Apr – Jun 2006
Change
18,803
14,580
29.0%
Gross Income from Sales
7,398
5,504
34.4%
Gross Margin
39.3 %
37.8 %
1.5points
SG&A
5,890
4,889
20.5%
SG&A Ratio
31.3 %
33.5 %
-2.2points
Operating Income
1,507
615
145.0%
8.0 %
4.2 %
3.8points
Ordinary Income
1,372
427
221.3%
Current Net Income Before
Tax and Other Adjustments
1,272
186
583.9%
501
- 239
-305.4%
Net Sales
Operating Profit Margin
Current Net Income
Effect from valuation loss renounced for tax reasons.
11
4
Overview of Consolidated
Financial Results
Third Quarter of the Year Ending September 2007: BS (year-on-year)
Unit: million yen
End of Jun 2007 End of Mar 2007
Change
Current Assets
38,614
41,388
-6.7 %
(cash + marketable securities, etc.)
17,150
17,431
-1.6 %
Fixed Assets
10,085
9,959
1.3 %
Total Assets
48,700
51,347
-5.2 %
Current Liabilities
16,247
18,003
-9.8 %
364
371
-1.9 %
32,087
32,973
-2.7 %
Fixed Liabilities
Shareholders' Equity
12
4
Overview of Consolidated
Financial Results
Third Quarter of the Year Ending September 2007: CF (over the previous quarter)
Unit: million yen
Apr – Jun 2007
Jan – Mar 2007
CF from Operating Activities
423
1,993
CF from Investing Activities
-1 ,083
- 1,439
CF from Financing Activities
36
268
-557
884
16,487
17,044
Change in Cash and
Cash Equivalents
Term-End Balance of Cash
and Cash Equivalents
Acquisition of fixed assets, etc.
Interim tax payment -1,523 million yen
Note: Cash and cash equivalents do not include the segregated account of CyberAgent FX, Inc.
13
4
Overview of Consolidated
Financial Results
Consolidated Business Forecast for the Year Ending September 2007
(October 2006 – September 2007)
Progress toward Business Forecast
Operating
Income
Ordinary
Income
75,000
5,000
5,000
2,500
Third Quarter Accumulated Total of
the Year Ending September 2007
56,253
3,576
3,368
1,271
Progress
75.0%
71.5%
67.4%
50.8%
Unit: hundred million yen
Net Sales
Business Forecast for the Year
Ending September 2007
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%
14
Existing Business
Media
Existing Business
Internet Media Business
15
Existing Business
Media
Consolidated Subsidiaries and Divisions that Constitute the Internet Media Business
Media Business
Advertising
EC
EC
(product sales)
(charged services)
Other
Advertising
Agency Business
Ameba Headquarters
LifeMile Company
CA MOBILE, Ltd.
EC Navi Company
Media Business
netprice.com, ltd. (former netprice, ltd.)
GCREST, Inc
CyberAgent FX, Inc. (former CA Capital, Ltd.)
International Sports & Marketing Co., Ltd.
WeddingPark, Ltd.
CyberBuzz, Inc.
MicroAd, Inc.
cybozu.net, Inc.
StoreFactory, Inc.
Investment
Development Business
Financial Plus, Inc.
Ameba Books, Ltd.
Crown Jewel, Inc.
Super Sweets, Inc.
Media Alliance Company
16
Existing Business
Media
Internet Media Business (net sales)
Unit: million yen
12,000
10,089
Increased by
11.3% 9,202
9,612
9,000
8,206
7,784
7,085
6,719
6,000
8,728
8,266
8,139
Increased by
13.2%
5,596
3,000
Increased by
8.4%
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
5,755
4,752
5,735
Advertising 2,453
3,033
3,152
3,163
3,135
3,456
2,843
3,181
3,447
3,032
2,993
Note: Net Sales are reference values before excluding internal transactions.
17
Existing Business
Media
EC (e-commerce) Net Sales
Effects of Resizing on the netprice group.
Unit: million yen
7,500
6,633
6,460
Increased by
13.2% 5,755
5,173
5,004
5,735
5,085
5,000
4,752
4,242
Increased by
9.8%
3,556
3,142
Increased by
11.5%
2,500
Increased by
22.2%
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
2,770
2,414
2,856
PC Commerce
932
1,463
1,784
1,045
1,347
1,593
1,225
1,374
1,532
1,401
1,591
Commissions/
Charged Services
537
1,058
1,380
635
1,066
1,424
802
1,189
1,453
937
1,288
Mobile Commerce
2007
4Q (Jul – Sep)
Note: Net Sales are reference values before excluding internal transactions.
18
Existing Business
Media
Advertising related Sales
Unit: million yen
4,000
Increased by
8.4% 3,447
3,181
3,456
3,033 3,152
3,163 3,135
3,000
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
100
378
162
PC (WEB) Advertising
158
949
933
404
957
985
440
951
1,030
719
816
Mobile
(cell phone) Advertising
832
1,097
1,170
1,054
1,207
1,382
1,074
1,404
1,424
1,097
1,231
Research Business
252
186
208
356
256
268
200
177
197
212
238
Others
475
(including affiliate advertising)
581
692
660
513
665
616
498
696
626
546
PC (e-mail) Advertising
2007
4Q (Jul – Sep)
Note: Net Sales are reference values before excluding internal transactions.
19
Existing Business
Media
Grow into the No.1 Blog Media Nationwide
July 2007
“ Am e b a B l o g ” P V
Unit: million PV
1,600
Number of Blog set up
exceeded 1.83 million
1,498
Number of Blog set up
exceeded 1.7 million
1,349
1,303
1,200
1,157 1,164
1,066
Number of Blog set up
exceeded 1.5 million
977
958
914 903
851
881
806
800
698
698
654
696
615
536
502
Number of Blog set up
exceeded 1 million
Number of Blog set up
exceeded 500,000
400
381
0
9
10
30
11
45
12
48
1
71
2
313
291
287
286
270
264
262
260
224
Number of Blog set up
exceeded 100,000
440
285
301
348
351
317
317
343
400
361
521
507
423
406
370
432
273
172
313
138
95
3
276
107
68
4
5
345 370
6
7
8
9
21
10
23
11
24
12
Yr to Sep 2005
28
28
1
2
31
3
34
4
38
39
5
6
Yr to Sep 2006
PC
70
7
96
113
147
8
9
10
177
191
216
207
11
12
1
2
3
4
5
6
7
Yr to Sep 2007
mobile
Note: Company values calculated using the measurement tool “Analog.”
20
Existing Business
Media
Toward Generation of Earnings by "Ameba Blog"
Quarterly Sales of the “Ameba Blog”
Unit: million yen
500
459
440
413
400
322
330
300
209
200
148
100
85
34
0
3Q, 2005
4Q, 2005
1Q, 2006
2Q, 2006
3Q, 2006
4Q, 2006
1Q, 2007
2Q, 2007
5
23
43
88
162
178
246
191
223
MicroAd
28
62
105
120
160
151
171
173
170
CyberBuzz
࡯
࡯
࡯
23
48
65
Ameba
Ameba: Net sales of tie-up advertisements, etc. run on Ameba.
CyberBuzz: Net sales of word-of-mouth advertisements using blogs.
࡯
࡯
࡯
3Q, 2007
MicroAd: Net sales of advertisements that analyze and run contents, user situations, etc.
Note: Net Sales are reference values before excluding internal transactions.
21
Existing Business
Advertising Agency Business
Existing Business
Internet
Advertising Agency Business
22
Existing Business
Advertising Agency Business
Consolidated Subsidiaries and Divisions that Constitute the Internet Advertising Agency Business
Advertising Agency
Advertising
Agency Business
Internet Advertising Headquarters
Fraudia Communications, Inc.
CA/H, Inc.
CyberBuzz, Inc.
Adplayin', Inc.
CA Technology, Inc.
Media
Business
Investment
Development Business
23
Existing Business
Advertising Agency Business
Internet Advertising Agency Business (sales)
Take over of CA Search, Ltd. by Internet Advertising Headquarters as of July 1.
Unit: million yen
10,000
9,203
8,366
8,000
9,270
Increased by
19.5%
7,756
8,180
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
8,035
5,389
7,120
196
362
490
227
387
656
271
430
759
344
489
258
336
235
282
425
305
149
418
169
55
7
125
46
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.
24
Existing Business
Advertising Agency Business
Internet Advertising Headquarters Sales
Large increase of revenues led by site listing advertisements.
Unit: million yen
9,000
8,041
7,426
6,512
6,000
5,531
8,035
Increased by
16.6%
6,894
7,120
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
1,930
1,652
1,834
Paid Search Ads.
1,081
1,756
2,348
1,197
1,826
2,638
1,497
1,987
3,005
1,616
2,075
Other Company Media
1,303
1,895
2,951
1,572
2,559
3,067
1,576
2,527
2,696
1,929
2,936
201
303
123
253
384
120
239
404
192
275
Other Production Fees, etc.
139
2007
4Q (Jul – Sep)
Note: Internet Advertising Headquarters sales (before exclusion of internal transactions).
25
Existing Business
Advertising Agency Business
Quarterly Sales Productivity per Sales Employee
Temporary decrease in productivity due to admission of new employees.
Unit: million yen
Unit: people
60
240
50.9
50
40
40.5
42.2
37.9
37.1
136
202
46.7
159
180
162
39.8
128
32.6
30
98
20
166
42.9
145
37.2
31.5
166
41.5
40.7
145
49.6
90
94
120
108
76
60
10
0
04/
1-3
04/
4-6
04/
7-9
Yr to Sep 2004
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
06/
7-9
Yr to Sep 2006
06/
10-12
07/
1-3
07/
4-6
0
Yr to Sep 2007
Number of Sales Employees
Note: Number of sales employees in the Internet Advertising Headquarters.
26
Investment Development
Business
Investment Development Business
27
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.
28
Investment Development
Business
Investment Development Business (net sales)
Unit: million yen
3,093
3,000
2,027
2,000
1,889
1,654
1,053
1,000
547
327
314
28
0
05/4-6
05/7-9
05/10-12
Yr to Sep 2005
06/1-3
06/4-6
06/7-9
06/10-12
Yr to Sep 2006
07/1-3
07/4-6
Yr to Sep 2007
Net Sales
547
1,053
314
28
327
3,093
1,654
1,889
2,027
Operating Income
461
952
249
0
262
2,722
1,426
1,765
1,881
Note: Figures conform to the segment information in financial statements.
29
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
Full Speed Inc. (2159)
August 2, 2007
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 (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
Finding
Sales of Advertisements,
Media Provision, etc.
Fostering
IPO
Investment
Development
Business
Listed Company
Sale
※ Including stocks acquired for pure investment
purposes and reported in extraordinary gain.
30
Investment Development
Business
Actual Investment Performance in Web2.0 companies
Unit: million yen
18,000
Investments will be made up to no more than
20% of consolidated assests.
Operational Investment Securities Balance
Companies invested in as of June 30, 2007: 56
15,881
Invested Companies List (as of June 30, 2007)
IPO mixi, Inc.
President: Kenji Kasahara
Founded: June 3, 1999
SNS service, recruitment advertising, etc. (listed September 14, 2006 on Tokyo Stock Exchange Mothers: 2121)
12,000
10,835
IPO
IPO
8,290
13,703
IPO
8,862
6,000
5,634
6,346
3,722
3,796 3,568
504
1,536
821 280 1,755 1,656 2,178 1,973 1,944 1,912
1,256
0 Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 31,
2004
+
2005
2005
2005
2005
2006
2006
2006
2006
2007
2007
= Operational Investment Securities Balance
Book Value after Considering Losses
Unrealized Capital Gains and Losses
Note: Includes amount invested for sales.
President: Shinichiro Kawabata
Founded: November 8, 1999
Affiliate service and price-comparison site operation.
Web Do Japan Co., Ltd.
AQ INTERACTIVE INC.
Founded: May 24, 2001
(listed February 14, 2007 on Osaka Securities Exchange Hercules: 2138)
President and CEO: Yoji Ishii
Game software planning, development and sales
Full Speed Inc.
(listed September 19, 2006 on Tokyo Stock Exchange Mothers: 2122)
President and CEO: Koji Obuchi
Internet media content business, etc.
Founded: March 1, 2000
(listed February 28, 2007 on JASDAQ: 3838)
President and CEO: Manaho Haga
Founded: January 4, 2001
Internet advertising and SEO. (listed August 2, 2007 on Tokyo Stock Exchange Mothers: 2159)
G.plan Inc.
2,041 1,912
133 430
IPO
interspace co., ltd.
President and CEO: Hiroshi Watanabe
Founded: August 1, 2001
Comprehensive point conversion site operation, etc.
Unoh Inc.
CEO: Shintaro Yamada, Atsushi Ishikawa
Founded: November 7, 2003
Internet media business, etc.
CROSSWARP Inc.
President and CEO: Shingo Yamazaki
Founded: October 4, 2001
Internet marketing business, etc.
WEBSHARK Inc.
President: Seiji Kimura
Founded: February 1, 2002
Drop shipping business, etc.
31
“Ameba Blog” Strategy
“Ameba Blog” Strategy
32
36
“Ameba Blog” Strategy
Web2.0 Media Market Now Expanding
Purchased the product after
reading the blog…40.8%
Web2.0 media market including blogs, SNS, etc.
will expand 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
“Ameba Blog” Service
Profile Function
Message Function
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.
Album Creation Function
Point Affiliate Function
Start: April 2007
This is a function which lets photo data to be updated,
classified according to each type, and stored.
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 upif articles
relating to blog topics provided by companies are written.
Access Analysis
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.
Ameba News
Displayed on the Top page from August 2006.
Original news is created and distributed.
“Peta” (footprint) Function
Start: November 2006
Renewal: July 26, 2007
This is a function which allows blog visitors to intentionally
leave their footprints (trace of visits).
34
“Ameba Blog” Strategy
“Ameba Blog” Features
No.1 Blog Media Nationwide
Largest Number of Celebrities’ Blogs Nationwide (813)
Easy-to-Use User Interface Even for Beginners
(number of blog set up: 1.83 million)
35
“Ameba Blog” Strategy
Accelerated PV Expansion
Topic Creation through 813 Celebrity Bloggers
“Ameba Blog” PV
Unit: million PV
1,600
Chinatsu Wakatsuk
Shinji Takehara
Emiri Henmi
Unit: %
25
24.4%
1,498
Moe Oshikiri
1,349
1,303
20
17.7% 19.8%
1,200
Saeko
Yakkun Sakuraduka
Leah Dizon
1,157 1,164
Aki Higashihara
16.1% 17.9%
15
903
914
806
800
Kazuhiko Kamata
Oki Matsumoto
(INTELLIGENCE, LTD.)
(MONEX, Inc.)
Fumie Wakabayashi
Masato Matsuura
698
(AVEX GROUP HOLDINGS INC.)
654
13.0%
12.5%
11.6%
10
10.7%
536
502
400
400 381
Tomoko Namba
Futenou
Manabu Oshio
440
Tadahiro Nomura
6.3%
(DeNA Co., Ltd.)
5
3.5%
2.8%
0.7%
0
Sakura Yokomine
Hidekazu Nagai
Lou Oshiba
Misako Yasuda
2
365
1.0%1.1%
4
4
14
18
41
74
2006/ 2006/ 2006/ 2006/ 2006/ 2006/ 2006/ 2006/ 2007/ 2007/
05
06
07
08
09
10
11
Yr to Sep 2006
Celebrities' Blog Total
Tokyo Philharmonic Orchestra Takahito Soma
Usako Oda
Kazuma
117 186 208 230 267
93 114
12
1
2
2007/ 2007/ 2007/ 2007/ 2007/
3
4
5
6
0
7
Yr to Sep 2007
Celebrities' Blog PV Ratio
36
44
“Ameba Blog” Strategy
Service Expansion and PV of “Ameba Blog”
“Ameba Blog” PV
Unit: million PV
1,600
Jul 2007: Number of Blog set up exceeded 1.83 million.
1,498
Number of Blog set up exceeded 1.7 million.
1,348
1,303
Open recording studio “AmebaStudio” opened.
1,200
Number of Blog set up exceeded 1.5 million.
1,157 1,164
Ameba-blog based TV drama “Kirakira Kensyui” (TBS network) began broadcasting.
1,066
Won first place in “Web of the Year 2006.”
[Profile Function] added.
[Access Analysis] started.
977
958
914 903
[Affiliate] started.
Mobile [Initial Registration/Login Function]
added.
800
806
[Point Return] started.
698
[BLOPPA!] added.
[Ameba Message] started.
[AmebaVision] started.
Mobile [Reader Registration/
Comment Function] added.
440
400
381
Number of Blog set up
exceeded 500,000.
Number of Blog set up exceeded 100,000.
Published first-ever blog-based book:
“Jitsuroku Oniyome Nikki.”
SepŽÁíåâá Âìïçž
óôáòôåä®
9
10
30
11
45
12
48
1
287
286
270
264
262
260
224
313
291
285
301
348
351
317
317
343
400
361
696
615
536
“Ameba Scrapbook Beta Version” started.
698
654
502
Number of Blog set up exceeded 1 million.
0
851
881
521
507
423
406
370
432
273
172
313
138
71
2
95
3
276
107
68
4
5
345 371
6
7
8
9
21
10
23
11
24
12
Yr to Sep 2005
28
28
1
2
31
3
34
4
38
39
5
6
Yr to Sep 2006
PC
70
7
96
113
147
8
9
10
177
191
216
207
11
12
1
2
3
4
5
6
7
Yr to Sep 2007
mobile
Note: Company values calculated using the measurement tool “Analog.”
37
44
“Ameba Blog” Strategy
“Ameba Blog” Positioning
Structuring the increasing-returns-to-scale type business model.
Operating Profit Margin
50%
mixi
Yahoo!
DeNA
25%
Rakuten
All About
Gourmet Navigator
Excite
0
“Ameba Blog”
-10%
0
5 billion
10 billion
40 billion
Monthly PV
Note: “Ameba Blog” is the operating income and operating profit margin calculated by excluding the investment development business’ profit from the consolidated operating income.
Note: Operating income and operating profit margin are the consolidated business results between April 2006 – March 2007 (nonconsolidated business performance for mixi only).
Note: The PV indicates the monthly PV of March 2007 from the companies’ results briefing documents or press releases.
As for the companies not releasing their PV, the montly PV of March 2007 is indicated after gathering information from each company’ s IR.
Note: Each circle’ s size indicates the amount of the operating income.
38
① Existing Business
②
Aim for a continued investment
Growth Trend
Internet
Media
Business
Internet
Advertising
Agency
Business
performance by utilizing the strengths
of discovering and fostering.
Investment
Development
Business
③
Continued priority
investment.
Ameba
(Ameba Blog)
39
Establish a High Revenue Business Model
through the Growth of “Ameba Blog”
40
VISION
To become a company that is the hallmark
of the 21st Century.
41
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 internet 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.
42
Reference Material (1)
Reference Material(1)
Overview of Consolidated Financial Results
43
Reference Material (1)
Third Quarter of the Year Ending September 2007: PL (over the previous quarter)
Change
Unit: million yen
Apr – Jun 2007
Jan – Mar 2007
Net Sales
18,803
19,362
-2.9%
Gross Income from Sales
7,398
7,209
2.6%
Gross Margin
39.3 %
37.2%
2.1points
SG&A
5,890
6,073
-3.0%
SG&A Ratio
31.3 %
31.4%
-0.1points
Operating Income
1,507
1,136
32.7%
8.0 %
5.9%
2.1points
Ordinary Income
1,372
1,142
20.1%
Current Net Income Before
Tax and Other Adjustments
1,272
851
49.5%
501
384
30.5%
Operating Profit Margin
Current Net Income
Effect from valuation loss renounced for tax reasons.
44
Reference Material (2)
Reference Material(2)
“Ameba Blog” Service
Mobile Function Expansion
Tie-Up Blog Examples
“Ameba Blog” PR Stragegies
45
Reference Material (2)
「Ameba
（アメブロ）
」のサービス
Profile Function
Message Function
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.
Album Creation Function
Point Affiliate Function
Start: April 2007
This is a function which lets photo data to be updated,
classified according to each type, and stored.
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 upif articles
relating to blog topics provided by companies are written.
Access Analysis
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.
Ameba News
Displayed on the Top page from August 2006.
Original news is created and distributed.
“Peta” (footprint) Function
Start: November 2006
Renewal: July 26, 2007
This is a function which allows blog visitors to intentionally
leave their footprints (trace of visits).
46
Reference Material (2)
“Ameba Blog” Service
Ðòïæéìå Æõîãôéïî
AmebaRoom
“Design Change" Page
Íåóóáçå Æõîãôéïî ¿ Ãïííõîéãáôéïî Ôïïì
Messages similar to emails can be sent from the reader to the
writer with just one click. PV can be improved by aiming to
enhance 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
Áìâõí Ãòåáôéïî Æõîãôéïî
By choosing images stored in the albums, they can be shown
as a slide show on AmebaRoom.
Message
Ðïéîô Áææéìéáôå Æõîãôéïî
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
47
Reference Material (2)
“Ameba Blog” Service
Video Sharing Service - AmebaVision
As of May 7, 2007
Approx. 140,000 posting; approx. 800,000 – 1 million streaming per day
AmebaVision Top Page
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 written based on information provided by companies.
Creators Collection
Page listing word-of-mouth
ranking topics
Page with details of word-of-mouth
ranking topics
Ameba News
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.
Access (in chronological order)
AmebaPR
Weekly Ameba Blog Ranking
Blog news, etc. are displayed from time to time on the
Ameba my 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) Functio
This is a function which allows blog
visitors to intentionally leave their
footprints (trace of visits).
Ameba News Top Page
48
Reference Material (2)
Mobile Function Expansion
A mobile service that has the same functions as PCs.
Renewal: June 19, 2007.
PV is also increased by having the same functions as PCs.
Ameba Headquarters
http://m.ameblo.jp/
“Ameba Blog”
Mobile Top Image
Shinji Takehara Official Blog
“Takehara Shinji wa Butappana”
Mobile Service PV
Unit: thousand PV
500,000
432,996
My Management Page
(Blog Edit Page)
400,000
371,239
345,391
313,935
300,000
276,074
Reader Registration
Function
Profile Function
216,789
207,828
191,264
177,780
200,000
Petit "Me"
(message) Function
(Message Function)
147,848
113,166
96,463
100,000
70,281
39,660
34,34338,118
0
4
5
6
7
8
Yr to Sep 2006
9
10
11
12
1
2
3
4
5
6
7
Yr to Sep 2007
49
Reference Material (2)
“Ameba Blog” Tie-Up Example
Examples of Tie-Up Blogs (Daikin Industries, Ltd.’ s Pichon-kun)
ブログパーツ配布
Conducting user participating type track-back present campaign and improving
branding image through word-of-mouth by distributing blog parts and original skin.
Personal Blog
Select user skin from my Ameba page.
Your entire blog turns into a character design!
Attach blog parts to your blog.
Daily weather forecast is displayed according to
the registered contents.
Official Tie-Up Blog List (as of August 6, 2007)
Click the following URL to view tie-up blogs.
http://ameblo.jp/content/officialblog/official_blog_tieup.do
50
Reference Material (2)
“Ameba Blog” PR Strategies
Toward enhancement of “Ameba Blog” awareness and
PV increase through reinforcing of topic creation.
PR Measures
June 14 – July 21, 2007
July 4, 2007
Topic Creation
Topic Creation
Ameba Thanks Party
Special sponsorship for m-flo live tour
June 28, 2007
Special sponsorship for K-1 World MAX 2007
“K-1 World MAX 2007” Typing Battle
51
44
Reference Material (2)
“Ameba Blog” PR Strategies
Project coupled
with TV
June 12, 2007
April 17, 2007
Ameba Blog Hot Spring Hotel Katara Fukushimaya
TV Drama to Start
“Oniyome Nikki – Iiyu Dana”
blog coupled with the drama
“Oniyome Nikki – Iiyu Dana”
“Oniyome Nikki – Iiyu Dana”
press conference
March 25, 2007 Topic Creation
Second Life Project
AmebaStudio
52
Reference Material (2)
“Ameba Blog” PR Strategies
Further creation of topics aiming to increase the number of visitors who naturally flow into blogs
Top Blog in the case of “blog” search
Unit: case
500,000
480,067
Unit: case
60,000
Visitors who naturally flow into blogs
57,262
55,193
442,151
419,802
400,000
51,062
45,495
383,320
45,000
51,597
46,599
42,165
39,880
37,396
300,000
32,937
237,406
226,153
35,186
30,779
30,000
26,107
186,745
172,469
200,000
36,329
26,314
25,002
19,992
21,279
146,136
21,252
13,104
15,000
100,000
100,318
10,357
7,861
14,085
10,489
3,568
0
9
Yr to Sep
2006
10
11
12
1
2
3
4
5
6
Yr to Sep 2007
Search cases specifying “Ameba Blog” as a search word (overture).
Note: Partial matches also included from March 2007.
0
4
5
6
7
8
9
Yr to Sep 2006
Visitors who naturally flow
into blogs via PCs
10
11
12
1
2
3
4
5
6
Yr to Sep 2007
Visitors who naturally flow into
blogs via mobile phones
53
44
Reference Material (3)
Reference Material(3)
CAJJ Program
Company Overview
Business Model
54
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 June 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
55
Reference Material (3)
CAJJ Businesses
Name of Business or Consolidated Company
Service Contents
Focused
Business
1
2
Ameba Headquarters
Web2.0 Media – Using blogs as platforms, where users play the leading part
MicroAd Company
Blog network advertising distribution services
J1
1
2
3
Internet Advertising Headquarters
Internet advertising business
CA MOBILE, Ltd.
Mobile marketing
EC Navi Company [merged with former All Navi Company]
Price/information comparison website
4
5
6
7
Netprice.com, ltd.
Online shopping service websites
GCREST, Inc.
Online games
CyberAgent FX, Inc.[former CA Capital, Ltd.]
Financial services
International Sports & Marketing Co., Ltd.
Sports contents
8
9
10
Wedding Park, Ltd.
Wedding information website
CyberBuzz, Inc.
Word-of-mouth marketing business
LifeMile Company [former Media Headquarters]
Net media for total information provision and point services (promoted to J1 7/1)
11
Media Alliance Company
Business focused on partnering with other companies (promoted to J1 7/1)
1
2
Fraudia Communications, Inc.
Suggestion-type media agency specialized for women
cybozu.net, Inc.
Business portal website
3
Crown Jewel, Inc.
Carefully selected apparel brand auction website
1
2
3
4
5
Adplayin’, Inc.
In-game advertising business
StoreFactory, Inc.
Drop shipping business
CA/H, Inc.
Advertising business focused on internet marketing
Financial Plus, Inc.
Stock information software service
Ameba Books, Ltd.
Publishing services
6
Super Sweets, Inc.
Operations of SNS and EC business related to sweets
7
CA Technology, Inc.
SEO (search engine optimization) business
J2
J3
Note: netprice, ltd. changed its name to netprice.com, ltd. on February 1, 2007.
As of July 2007
CA Search, Ltd. merged into the Internet Advertising Headquarters on July 1, 2007.
56
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
6,745,147,584 yen (as of June 30, 2006)
1,696 / CyberAgent Group Overall (as of June 30, 2006)
Average Age
28.0 / CyberAgent alone (as of June 30, 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
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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.
58
Reference Material (3)
Internet Advertising Industry Map
Advertising Agencies
Yahoo(4689)
Dentsu (4324)
Google
Hakuhodo DY Holdings (2433)
mixi（2121）
Opt(2389)
Rakuten(4755)
Septeni (4293)
Clients (Advertisers)
Users (Individuals/Consumers)
Internet Media
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