CyberAgent : FY2023 Second Quarter Consolidated Financial Results

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

FY2023 Second Quarter Consolidated Financial Results [Japanese GAAP]

			April 26, 2023
Listed company name: CyberAgent, Inc.	Listed stock exchange: TSE Prime Market
Code No.:	4751	URL https://www.cyberagent.co.jp/en/
Representative:	Representative Director CEO	Susumu Fujita
Inquiries:	Senior Managing Executive Officer	Go Nakayama	Tel [phone]
Quarterly report submission date: April 27, 2023	Dividend payment start date	－
Preparation of Supplementary Materials for Quarterly Financial Results: Yes

Presentation of Quarterly Financial Results: Yes (live stream only)

(Amounts less than ¥1 million rounded down)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending September 2023

(1) Consolidated results of operations (cumulative)											(% = Year-on-Year Change.)
																		Net income
		Net sales	Operating income		Ordinary income			attributable to		Comprehensive
					owners of the		income
																		parent
		¥ million	%		¥ million	%		¥ million			%			¥ million	%		¥ million	%
2Q FY2023		363,235	0.3		17,531	(61.5)		17,891		(60.9)			2,898	(83.1)		8,128	(68.3)
2Q FY2022		362,192	23.0		45,527	38.2		45,715		38.4			17,155	25.3		25,668	40.8
		Basic earnings			Diluted earnings
		per share			per share
2Q FY2023						¥				¥
		5.72				5.24
2Q FY2022			33.93				32.14
(2) Consolidated financial position
		Total assets				Equity				Shareholders'	Shareholders'
									equity	equity ratio
As of 2Q FY2023		¥ million		¥ million							¥ million				%
	428,812		223,593							140,212			32.7
As of FY2022			383,698		222,915							144,264			37.6
2. Dividends
							Annual dividends
		1Q				2Q	3Q		Year end		Total
FY2022			¥			¥			¥							¥		¥
		－			0.00			－				14.00		14.00
FY2023			－			0.00
FY2023 (Forecast)									－				15.00		15.00
(Note) Revisions to most recent dividend forecast: None
3. Forecast of the Consolidated Results for the Fiscal Year Ending September 2023
(October 1, 2022 - September 30, 2023)
																		(% = Year-on-Year Change.)
	Net sales	Operating income	Ordinary income				Net income	Basic
				attributable to	earnings
														owners of the parent	per share
	¥ million	%	¥ million	%	¥ million		%	¥ million	%		¥
Full year	720,000	1.3	40,000	(42.1)	40.000	(42.4)		15,000	(38.1)		29.64
-50,000	-(27.7)	-50,000	-(28.0)		-20,000	-(17.4)		-39.52

(Note) Revisions to most recent forecast: None.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

*Notes

(1) Changes in Significant Subsidiaries during the Period: None

(Changes in specified subsidiaries due to changes in the scope of consolidation)

New : －(Company name:	－)
Excluded : －(Company name:	－)

1. Application of simplified accounting methods and/or special accounting methods: None
2. Changes in accounting policies, changes in accounting estimates, restatements
3. 1. Changes associated with revisions of accounting standards: Yes
   2. Changes other than those included in i) : None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of shares issued

1. Number of shares issued and outstanding at end of period (including treasury stock)

2Q FY2023: 506,073,600 shares

FY2022: 505,924,000 shares

(2) Number of shares of treasury stock issued and outstanding at end of period

2Q FY2023: 1,004 shares

FY2022: 1,004 shares

(3) Average number of shares during the period (cumulative quarterly period)

2Q FY2023: 505,988,611 shares

2Q FY2022: 505,534,912 shares

*The Consolidated Financial Results is not subject to audit. *Appropriate Use of Earnings Forecast and Other Matters

The forecast of performance is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those listed in this forecast because of various risks and uncertainties. For information related to the forecast indicated above, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" on page 3.

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

Table of Contents
1. Qualitative Information on the Quarterly Financial Results	2
(1)	Explanation of Consolidated Financial Results	2
(2)	Explanation of Consolidated Financial Position	2
(3)	Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information	3
2. Quarterly Consolidated Financial Statements and Key Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of
	Comprehensive Income	5
(3)	Quarterly Consolidated Statements of Cash Flows	6
(4)	Notes to Quarterly Consolidated Financial Statements	7
(Notes Regarding the Going Concern Assumption)	7
(Notes Regarding Significant Changes in Shareholders' Equity)	7
(Notes Change in Accounting Policies)	7
(Additional Information)	7
(Segment Information)	8

1

English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Qualitative Information on the Quarterly Financial Results

(1) Explanation of Consolidated Financial Results

The CyberAgent Group has taken advantage of the growth of the smartphone market. At the same time, the group has been investing in ABEMA, a new TV of the future, to grow it in the medium to long-term mainstay.

As a result, during the cumulative consolidated second quarter, Net sales grew 0.3% year on year to ¥363,235 million, and operating income amounted to ¥17,531 million (61.5% decrease). Ordinary income amounted to ¥17,891 million (60.9% decrease), and profit attributable to shareholders of the parent decreased 83.1% to ¥2,898 million.

Earnings by business segments are discussed below.

(a) Media Business

The Media Business includes "ABEMA", "WINTICKET" and "Ameba", etc.

Driven by "ABEMA", a new TV of the future, and related business, net sales grew and amounted to ¥66,960 million for the period, a 27.9% year-on-year increase. With the distribution of the FIFA World Cup Qatar 2022 in the first quarter, operating loss amounted to ¥9,956 million, compared to operating loss of ¥5,804 million for the same period in the prior fiscal year.

(b) Internet Advertisement Business

The Group's Internet Advertisement Business includes Internet Advertisement Division, AI Division, and CyberZ, Inc., etc.

Resulted from strong client acquisition, this segment remained stable. It reported ¥195,871 million in net sales, up 6.0% year on year. Operating income was ¥9,938 million, a 24.8% year-on-year decrease.

(c) Game Business

The Game Business includes Cygames, Inc., Colorful Palette Inc., Sumzap, Inc., and Applibot, Inc. etc. The anniversary events of major existing titles were successful, however, net sales amounted to ¥103,061

million, a 19.1% year-on-year decrease. Operating income was ¥20,414 million, a 47.0% year-on-year decrease.

(d) Investment Development Business

The Investment Development Business consists of the CyberAgent corporate venture capital business and the fund operations of CyberAgent Capital, Inc. The Investment Development Business recorded net sales of ¥1,217 million (63.5% year-on-year decrease) and operating income of ¥356 million (a year-on-year decrease of 84.5%)

(e) Other Businesses

The Other Businesses segment includes Makuake, Inc., REALGATE INC., Zelvia Co., Ltd. and others.

This segment reported net sales of ¥14,775 million, a 13.9% year-on-year increase. Operating income amounted to ¥296 million (a year-on-year decrease of 18.1%)

(2) Explanation of Consolidated Financial Position

(Financial position)

Total assets at the end of this consolidated second quarter have increased by ¥45,114 million compared to the end of the previous fiscal year and amounted to ¥428,812 million. It is mainly due to the issuance of convertible bonds.

Total liabilities have increased by ¥44,435 million compared to the end of previous fiscal year and amounted to ¥205,219 million. This increase is mainly due to the issuance of convertible bonds.

Equity have increased by ¥678 million compared to the end of the previous fiscal year and amounted to ¥223,593 million. It is mainly due to increase in Non-controlling interests.

(Cash flows)

As of the end of the consolidated second quarter, cash and cash equivalents increased by ¥17,246 million from the end of the previous fiscal year to ¥185,281 million.

The following is a summary of the major factor affecting the cash flow in the cumulative consolidated second quarter.

i) Cash flow from operating activities

Net cash provided by operating activities was ¥14,080 million of inflow (¥10,887 million of inflow in the same period of the previous fiscal year). The major inflow included net income gains, and the major outflow included income tax payments.

ii) Cash flow from investing activities

Net cash used in investing activities was ¥12,012 million of outflow (¥10,371 million of outflow in the same period of the previous fiscal year). Major outflow included purchase of fixed assets.

iii) Cash flow from financing activities

Net cash provided by financing activities was ¥15,410 million of inflow (¥4,587 million of outflow in the same period of the previous fiscal year). The major inflow included issuance and redemption of convertible bonds.

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English Translation

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

(3)Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information

Forecast of FY2023 has not been revised from its original publication on October 26, 2022.

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