Company Information Session - Q&A Summary
This document summarizes the questions asked by shareholders at the Company Information Session held on Friday,December 8, 2023.
---------------------------------------------------------------------------------------------------------------------------------------------Q1
The size of smartphone games has recently grown significantly, as have development and advertising costs. Thelonger you continue this business, the harder it will be to generate profits. You also have to compete with foreign
investment. How do you plan to continue to win in such an environment?
A1
Respondent: Yusuke Hidaka, Director
As you said, development costs are rising and development cycles are getting longer, but we believe that we canstreamline marketing costs by partnering with leading IPs. We have also gained the trust of content holders byproducing high-quality products such as FINAL FANTASY VII EVER CRISIS and JUJUTSU KAISEN Phantom Parade.
The Group’s original IPs are highly profitable, and our consolidated subsidiary Cygames brand is developing.
Therefore, we believe that we are a top-ranking game company in Japan and can remain highly competitive as longas the market is stable.

Q2
The number of employees has increased by about 1,000 compared to last year, but what are the intentions andgoals behind this?
A2 Respondent: Go Nakayama, Director
We decided to invest in human resources while Umamusume: Pretty Derby performs well. So we have been
increasing staff not only for the last fiscal year but for the past three fiscal years. Around half of our hires are newgraduates, and we plan to continue to increase the number of new graduates, reduce mid-career hires, and leveragetechnologies such as AI to streamline operations. We mainly assign new human resources to our three major
businesses, with a focus on advertising and games businesses.

Q3
Competitors are also using AI to optimize advertising effectiveness, but what is your competitive advantage?
Also, what are your future expectations in terms of new AI businesses?
A3 Respondent: Go Nakayama, Director
In the advertising business, our strength lies in our 25-year history of maximizing advertising effectiveness. AI has
recently enabled the prediction of which creatives will be more effective than existing ads, and this technologicaladvantage is highly valued.

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Q4
I believe you encourage employees to go independent, but what are the risks of losing talented people?
Are you able to monetize this behavior, such as by investing in those who leave and start their own businesses?
Also, working at CyberAgent has the impression of being hard work, but as competition for talent increases, I think
more and more people will place importance on life-work balance. How will you respond to this?
A4 Respondent: Susumu Fujita, Representative Director
We do not encourage independence. Of course, we are interested in investing in companies with top talent, but wehaven’t received many requests, possibly because they don’t want to be seen as dependent on their previous
employer. Our basic approach is to invest and monetize.
With regard to "hard work," our staff currently comes to work three days a week and works remotely two days aweek, which we feel is a good balance and don’t consider hard work. As for long working hours, Human Resources
Division closely monitors working hours and makes improvements as necessary.

Q5
Thank you for the opportunity to see President Fujita’s investment horse, Hirari, race in Urawa. Since I invested in
Hirari’s mare, I would like the chance to invest in her when she becomes a breeding mare. Are you considering
shared racehorse ownership?
A5 Respondent: Susumu Fujita, Representative Director
That’s a personal matter, but currently I’m not considering a shared racehorse ownership club.

Q6Besides the addition of new characters, what other big plans do you have for the future of Umamusume: Pretty
Derby?
A6 Respondent: Susumu Fujita, Representative Director
I can’t discuss Umamusume plans that have not been announced. I can only tell that we’re working on something
exciting.

Q7
Over the past year, what has been the internal and external reaction to the upcoming presidential transition thatwill take place in three years?
I’m curious about the reactions of institutional investors and business partners, as well as the track record of the 16
expected successors.
A7 Respondent: Susumu Fujita, Representative Director
We have started training successors, but we do not expect them to take over completely right away. Even after thenext president is chosen, I will continue to serve as chairman and CEO alongside them. I am now 50 years old, and I
have publicly stated that I intend to continue until I am 60. That being said, we have received positive feedback on
preparing for business succession from an early stage. In order to verbalize and communicate my years of experienceand intuition, we view it as important to break them down into smaller elements and define the requirements ofmanagement. If assessments of current human resources show areas of deficiency, we will provide more training.
Nevertheless, the 16 people who have received training have shown remarkable growth. By continuing this process,I believe we will create a public company with excellent sustainability. Like Recruit, our goal is to build a company
that can thrive even after its founder is no longer with the company.

2Q8
While programs with high royalties, such as sports and Shogi, make for great ABEMA content, would you consider
programs with a high level of social concern? For example, how about a once-a-month program featuring adiscussion with a Diet member?
A8 Respondent: Susumu Fujita, Representative DirectorWe are putting a lot of effort into a news program called ABEMA Prime, which includes inviting people at the centerof topic. We also communicate information via SNS and YouTube. Please take a look.

Q9I often watch ABEMA’s Shogi program, but I only see ads for your company.
Is AI technology only being used for your advertising business?
Also, visiting Shibuya for Halloween has been restricted due to overcrowding. Are there any local revitalization
activities you could implement?
A9 Respondent: Susumu Fujita, Representative Director
Shogi is relatively well sponsored, but due to the program’s lengthy airtime, we also put advertising for our service.
Since viewer targeting is used for ABEMA’s advertisements, certain ads may not be shown to some people.
We try to avoid showing people the same ads over and over again.
As for Halloween in Shibuya, I think it would be difficult to collaborate with Shibuya Ward under current conditionsof the day. However, we have been discussing about possible collaboration to revitalize Shibuya in other ways.

Q10I think that a company that has flat organization and fosters open communication across all levels will grow. Despite
its short history, CyberAgent is a large company with over 7,000 employees. In general, large companies with a longhistory tend to have "big company disease," such as a highly hierarchical structure. What are your thoughts on
corporate culture and big company disease?
A10
Respondent: Tetsuhito Soyama, Managing Executive Officer and CHO
We clearly state in our mission statement that we will eliminate the disadvantages of scale. Also, in a monthly survey
where employees are asked to rate their overall condition using weather terms on a 5-point scale from sunny torainy. Over 80% respond with "sunny." When asked about job satisfaction, our most valued aspect, 87% ofrespondents said their work is rewarding. Based on this feedback, we will continue to work hard at CyberAgent toprevent big company disease.

Q11
Both the stock price and business performance have plummeted from their peaks, but I believe you could haveachieved a softer landing. Does looking back give you any insight at all?
A11
Respondent: Susumu Fujita, Representative Director
To be honest, we were hoping for a softer landing, but it resulted in a hard landing with downward revision of theforecast, which was regretful. We had planned a number of new businesses to launch when times were good inorder to prepare for the next stage. But we were unable to complete them in time. By continuing to build solid
business performance from this point forward, we hope to achieve a steady increase in income and profits and growthe share price. It has been difficult to match the business results and stock price formation from the massive hit of
Umamusume: Pretty Derby, but things have finally settled down.
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