CyberAgentWay
CyberAgent, Inc.
TSE4751

Integrated Report
December, 2019

Shibuya, a popular gathering spot for IT entrepreneurs, has been known as "bit valley" forsome 20 years since around 2000. Shibuya is not only home to IT companies that have growninto mega-ventures, but has evolved into the district where numerous startup companies
converge.CyberAgent has developed and deployed numerous internet services from its
headquarters in Shibuya, thriving on the energy of this area that attracts young digital natives.
This year, however, in response to the expansion and scattering of its of fices due toever-expanding business, the company decided to consolidate its operations into two offices in
Shibuya. CyberAgent is committed to continuing to develop world-class "Made in Shibuya"
services from its offices in Shibuya, which continues to be an influential source of cutting-edge
culture among young people.

創出

Dai Nishijima
President, CyberACE, Inc.

Rina Takai
President, eStream, Inc.

Tomohiro Ueno
President, CA Tech Kids, Inc.

Manami Kabashima
Anime channel producer, AbemaTV, Inc.

Chihiro Sano
President, WinTicket, Inc.

匠

Karyakin Anton
Internet Ad Business Facebook creative planner

Shiori Mogi
Media Business UI designer

Yusaku Washiyama
Game Business Director CCO, Grenge, Inc./Creative director

Atsushi Nakahashi
Internet Ad Business Creative director

熱狂

Danshoku Dieno
Professional wrestler, DDT Pro-wrestling, Inc挑戦者

Kota Yamaguchi
AI Business Unit Research Scientist of AI Lab

VisionTo create the 21st century’s leading company

Message from the President

Thank you for your continued support of CyberAgent.
Under our vision "to create the 21st century's leading company,"
we at CyberAgent have, since our inception, worked to expand
business in the fast-changing internet industry by honing ourability to 'adapt to change' and also drawing on our advantages in'talent', 'technology' and 'creation'.

Internet TV station "AbemaTV," which launched in April 2016, hasalready achieved over 45 million downloads in just three and ahalf years. It has also received positive feedback for its ability toprovide value as an infrastructure for spreading emergency info
in the event of disaster as a smartphone-based form of mass
media.

While growing our media business into the next mid- to long-term

pillar after our advertising and gaming businesses, CyberAgent isdedicated to continue creating social value through activities that
include next-generation engineer training and sports support,

and striving to achieve the kind of sustainable management thatwill lead us to a new stage of growth.

Susumu Fujita
President

Contents

01

CyberAgent’s Value Creation Model
Superior Technology

010
0 11

Superior Talent

018

Superior Creation

0 25

02

Business Models and Synergies

032

03

CyberAgent by the Numbers

057

04

ESG

069

05

Environment

070

Social072

Governance093

Company Overview

113

CyberAgent’s
Value Creation Model

Value creation
model

01

CyberAgent's Value Creation Model

CyberAgent's Value Creation Model
Focusing on the internet, a high-growth industry,
CyberAgent pursues sustainable growth by taking advantage of its adaptability to change.

Superior Technology
Research Institutions
Academia-Industry Cooperation

Sustainablebusiness expansion

Superior TalentMarketcompetitiveness

Active Participation
Development
HiringSuperior Creation

Contribution to

New businesses

local communities

Business management
Creation system

10

CyberAgent's Value Creation Model

Superior
Technology
Technology is the cornerstone of internet companies' competitiveness. The wide range ofCyberAgent services ― which include video distribution through AbemaTV, music distribution

through AWA, over 50 smartphone games, and advertising products and creative work that meetadvertisers’ expectations ― are created and supported by some 2,000 engineers and creators who
have a sense of ownership and passion for advanced technical skills and creativity.

Our development structure is characterized by a free and open-minded culture in which eachdevelopment team is given broad discretionary power, and by combining this with the synergistic
effect of our various shared resources and built-up knowledge, CyberAgent is dedicated tocontinuing to improve the utilization of data and AI technology, and boosting our technicaladvantages in priority areas.

11

CyberAgent's Value Creation Model

Director

Creating Completely New Value andBusiness Opportunities through Technology

Delivering Absolutely Uninterrupted,
High-Quality Video Content

T h e v i s i o n of A b e maT V i s to "c reate
unique internet-based mass media."

Since the launch of AbemaTV, we haveworked to improve the video, delivery, andplayback technology to deliver

uninterrupted high-quality video that, likec o nvent i o na l T V, i s a b l e to d eli ver aseamless viewing experience regardlessof the number of simultaneous viewers.

Essentially, internet-delivered content waspremised on a "best ef for t " approachsince people generally assumed it

wouldn’ t play smoothly. Against thisbackdrop, it was a huge challenge tounable to withstand the over whelming
traffic.

Since that time, a variety of improvements
have been made to deliver stably, a coreelement of AbemaTV's technology, andwe have evolved it into today's

highly-robust system that does not go
down even during high viewer accessconcentrations. This is a huge advantage
on which we intend to continue focusing
investment in the years to come.

AbemaTV's Development Policy is
Consistently "simple"

Fo r A b e m aT V, we p l a c e t h e h i g h e s tsimultaneously with the state ofeasy for users to understand. While manytechnology at the time.

In May 2017, during a show broadcast on
AbemaTV called "Win 10 Million Yen, If
You Can Beat Koki Kameda," which pit

entrants against the former pro boxer, theserver went down right at the beginning of
the match. Traffic reached around 20% of

all Japan's internet communications at theNorishige
Nagasemoment, and the server shut down being

provide a crisp image and comfortablev i e w i n g ex p e r i e n c e t o m a ny p e o p l eTechnical Development
Divisionpriority on a simple UI/UX design that isfeatures tend to pile up as the result of

running an internet service for this many

years, we have always pursued simplicity
a t A b e m aT V b y m a k i n g t h e t o u g hdecisions to let go of some things as newones are added.

When AbemaTV first launched, we had

assumed that linear viewing would play

12

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Modelthe central role, but more recently we"Fastest or Best"

includes an increasing number of thosebroadcasts can coexist with on-demand

As our President Fujita of ten says, tosensibilities and unique ideas. Theseand anime. For the major overhaul of thet wo c h o i c es: ei t h er b e t h e fa s tes t tokeenly focused on how to display content
that contains both linear and on-demand
programming, in a manner that is simple
and easy for users to understand.

As for the subscription ser vice, its

s u c c es s d e p e n d s o n i m p r ov i n g us er

satisfaction so it is used regularly. To

achieve this, we need to continue making
improvements in three key areas:

market, or deliver the best quality.

could not be imitated by other companies.

hiring, it is also essential to provide overall

With using existing solutions out there,
A b e m aT V c o u l d n o t b e c o m p l e t e d .

However, it took us just four months, byourselves, to create a system that kept

competition from entering the market for
years.

o n - d e m a n d p r o g r a m m i n g; p r ov i d i n gskills, but also due to the passion andutilize user behavior data; and offeringc ontent that user s want to watc h. By

drawing on our strengths that span all
stages from content planning to

distribution, we are confident that the

number of paid members will increase as
the natural result of ensuring that users
enjoy AbemaTV even more.

At the same time, we are also reviewing
the technology for delivering

to our engineers' advanced technicals e n s e of ownership each had during

development ― treating the product almost
as if it were their own child. We consider

these technical strengths and passion themost important factors in developing ourown technology, as well as a key sourceof our competitiveness.

CyberAgent's Engineering Teams andHuman Resources are the Ultimate

As AI technology becomes increasingly

time during linear program broadcasts,

to use new technologies to boost theand if realized, we will be able to create
adver tising value that is unique to

A bemaT V with deliver y that is highly
efficient and accurate.

at tention of potential engineers whensatisfaction such as a rewarding work,

professional growth, and colleagues that
one can improve together with.

CyberAgent is the opposite of the ‘onecompany, one product’ model. We offero p p or tunit ies for grow th through theregular development of numerous projects
in the fields of media, advertisements, andgames while using a broad spectrum oftechnologies. By communicating

CyberAgent's appeal to students, eachyear we are improving our recruitment
abilities, which are the basis of ourtechnological advantage. Ultimately, since
our engineering teams and humanresources are the company's competitiveedge, we are dedicated to focusing on
building teams by leveraging ouradvantage of scale and boostingsatisfaction for each and every engineer.

Source of Our Competitivenessadvertisements. We are developing ads

that can achieve targeted delivery in realin the company.

Although compensation tends to grab thecore of its technology strategy was that it

This was made possible not only due

highly-accurate recommendations thathuman resources are playing active roles

When AbemaTV was first launched, theensuring a seamless and comfor tableviewing experience for linear andwho are "technology users" with business

Norishige Nagase

UI/UX we are currently working on, we aresucceed in a new business, there are only

Superior Creation

universal, it will be important to know how
value of ser vices and solve business｜programming such as dating reality shows

Superior Talentissues. In addition to engineers who "have* AbemaTV 1st Anniversary Program, "Win 10 Million Yen,amazing technical skills" or "create new

If You Can Beat Koki Kameda" broadcast on May 7, 2017

technologies," our engineering team also

https://abema.tv/channels/special-plus/slots/9YCojXFBHRK1F5

13Interview

have found that linear news and sports

Superior Technology

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Research Institutions

AbemaTV Data Technologies

Akihabara Lab

AbemaTV Data Technologies was established to effectively utilizing the data logs accumulated

Akihabara Lab is an R&D organization with around 40 engineers who specialize in large-scale

but also for determining formats, procurement, add-on fees, and behavior tracking.

established in April 2011.

since AbemaTV was launched in April 2016 for various purposes, including not only ad delivery,

data processing, data analysis, and machine learning. The Akihabara office itself wasUnder the themes of "contributing to the business decision-making process through data

To improve user satisfaction in CyberAgent's media services, Akihabara Lab strives to better

utilization" and "improving products through statistical modeling," Data Technologies mainly

understand human behavior on the internet by strengthening industry-academia collaboratione n gag es i n o pt i m iz at i o n f r o m t h e us er’ s p er s p e c t i ve, s u c h a s by i m p r ov i n g b ot hwith universities and research institutes while conducting research in computational social

recommendation accuracy and the services for attracting more customers.

science.

Akihabara Lab

14

CyberAgent's Value Creation ModelAI LabSuperior Technology

1

AI Lab was established with the goal of conducting R&D on advertising delivery technologythat utilizes artificial intelligence (AI). The lab includes researchers who specialize in machinelearning, econometrics, computer-vision, natural language processing, HAI/HRI etc., and who
conduct research in three areas :automated dialog technology for virtual interactive agents

creation support and automated creation of advertisement creative work
analyses of the causal effect of advertisements

The lab has also partnered with universities and research institutes in several fields (Osaka
University, Yale University, Tokyo Institute of Technology, etc.) with which it is advancing
research and development with the aim of further improving technologies.

2

1 Demonstration test of a communication robot by AI Lab and Osaka University
2 Robot-assisted Marriage Partner Hunting

15

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Results of Academia-Industry Cooperation

Co-authored Paper Received
the 2018 Yamashita SIG Research Award

Co-authored Paper Adopted at
the International Conference "AAAI 2019"*

March 2019, a paper co-authored by Akihabara Lab's Masanori Takano and the University of

In December 2018, a paper co-authored by AI Lab's Shota Yasui and Yale University's Yusuke

Yamashita SIG Research Award from IPSJ (Info Processing Society of Japan)*. The paperof artificial intelligence. The paper, on evaluating decision-making by applying machineTokyo School of Engineering's Associate Professor Fujio Toriumi was awarded the 2018

Narita and Kouhei Yada was adopted at the international conference "AAAI 2019"* in the field

proposed a method to hierarchically analyze the music listening behavior of users on thelearning similar to a bandit algorithm*2, proposed a method with less evaluation uncertainty

flat-rate music streaming service known as "AWA."than with past methods.

Visual concept of Off-Policy Evaluation* This award is given to the presenters of highly outstanding papers from among papers presented at IPSJ research meetinguser

Log data

ResultNew policy

ResultA

Creative B

Click

Creative A

UnknownB

Creative A

non-Click

Creative A

non-ClickC

Creative C

Click

Creative C

Click

D

Creative C

non-Click

Creative B

Unknown

Evaluation
supplementing
missing data

* "AAAI" is an annual conference that brings together researchers in various fields of artificial intelligence fromevents and symposiums throughout the year.

around the world, and is one of the most influential international conferences in the field of AI.

16

CyberAgent's Value Creation Model

Superior Technology

Superior Talent

HR System

Developer Experts System
The Developer Experts System provides a platform for engineers with knowledge, skills, and aproven track record as leading experts in specific fields to engage in new activities. It is also
intended to contribute to development in each specialty field and return results to the

CyberAgent group. The system provides full support for activities whether experts are working
from Japan or overseas.

Five people have been selected from CyberAgent's current focus areas, who are responsible
for carrying out the following three major roles:

1
2

Acquire expertise in each specialty field and contribute to its development.
Establish the CyberAgent brand in each specialty field through external interaction
and activities (delivering presentations, community activities, writing, and spreading

3info).
Receive and support in-house discussion beyond their areas of responsibility or

Yusuke Goto

Masaya Aoyama

Hiroki Tani

Video Technology /Product Design

Kubernetes /Cloud Native

UX Design /Product Design

Daichi Furiya

Soichi Masuda

Android

Accessibility

department.

17

Superior Creation

CyberAgent's Value Creation Model

Superior
TalentCyberAgent places the highest value on hiring, training,

motivating, and assigning the right person in the right place.
To realize our goal of being a company able to continue

growing in the fast-changing internet sector, we utilize avariety of systems to create an environment and culture inwhich each employee can maximize their full potential.

18

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Hiring

YJC

DRAFT

YJC gets its name from the first letters of this Japanese phrase: Y="Yoi hito wo (good people)";DRAFT is an elite internship that can only be attended by students carefully selected from

YJC is essentially a project for improving the hiring process of new grads by having a variety

proposals from the winning team are commercialized, and we have seen an increasing

J="Jibuntachi de (on our own)"; and C="Chanto saiyo suru (hire properly)".

various internships that CyberAgent carries out across the country. Held annually since 2016,
number of cases* where past graduates have become the persons assigned to launchof employees participate in the hiring process rather than expecting only HR personnel tohandle it. The project was launched in 2017 under the vision to "hire talent that exemplify thesubsidiaries or put in charge of managing a service.

21s t c e n t u r y." W i t h a r o u n d 4 0 0* e m p l oye e s i nvo l ve d , we h ave r a i s e d o u r h i r i n gcompetitiveness by having employees in the field work side-by-side with HR staff.

* Number of employees involved in YJCBusiness positions: About 200

Engineering & designer positions: About 200* CAmotion Inc., Bizbot Inc., etc.

Total: About 400

19CyberAgent's Value Creation Model

Development

CA24
CA24 is a strategy to find and train the human resources who will take responsibility for futureof CyberAgent.

Each year we select 24 young employees who define company-wide issues and work to resolve
them. This helps develop the next generation management-level professionals throughproposals and reports at board meetings.

CA24 members

Scene from training seminar

20

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

Active Participation

YMCA
This company-wide project has a number of objectives: to connect the energy and passion ofyoung employees in their 20s to the next generation; to boost the company's top line while

increasing chances for promotion; and to create opportunities to think about CyberAgent's
future with a sense of ownership. The project is led by a team of young leader-classemployees in their 20s who engage in wide range of activities both in and outside thecompany.

Since 40.6% of our organization is made up of people in their 20s, these young employees

have ownership―meaning that "they are the ones responsible for creating a company that will
epitomize the 21st century."

Even as our organization grows larger in the future, this measure is designed to ensure wecan continue as a company where young employees play an active role.

YMCA Ashita Kaigi (Meeting for Tomorrow) poster

21

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

CA BASE CAMP

Battle Conference Under30

CA BASE CAMP is a conference designed to strengthen CyberAgent's technical capabilities

2019 marks the third time to hold Battle Conference Under30, a tech conference exclusively

creators company-wide, which has grown to around 1,800 staff, over 40% of which in full-time

The conference aims to provide a venue where participants can inspire and learn from eachas a team by promoting the sharing of know-how and interaction among engineers andfor speakers and participants under 30 years old.

permanent positions. It has been held once a year since 2018.

other through a wide variety of content that encourages communication between them. These

By providing a venue to proactively share know-how accumulated from CyberAgent's

events include presentations on technological and career challenges faced by young

wi de - ranging media , adver tising an d game busines s areas, as well as prom oting

engineers both in and outside the company; booths where visitors can talk directly withcross-departmental and cross-occupational exchange between engineers, we are committed

speakers; programming contests that anyone can participate in; demonstrations; poster

to further boosting both technical capabilities and business growth.

exhibits, and more.

Photo from the conference

Photo from the conference

22CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Woman Tech Terrace

CAramelHeld for the first time in June 2019, Woman Tech Terrace is a conference for, and by, female"CAramel" is female cross-departmental group that was established at the September 2017

other female engineers who, in the course of building their career, were seeking to “hear thethe management level" and "increasing opportunities for female staff to interact with each other."engineers. It was founded by female CyberAgent engineers in response to requests from

Ashita Kaigi (Meeting for Tomorrow) with the intent of "making the voices of female staff heard at

ideas and opinions of other female engineers,” “find colleagues to mutually inspire and'CAramel' is a play on the Japanese word 'karameru', meaning to interact or mix together. As

encourage each other,” and “hear talks from female engineers who resumed their career after

the name implies, through this we hope to create a forum where many women can interact

giving birth.” About 140 people participated in this event.

with each other.

According to the survey results* published by METI, only 16% of engineers in Japan are

To date, more than 220 female employees have participated in events on various themes suchas "Women's Health," "For New Graduates and Prospective Employees," "For Mid-Career

female and this has remained low for almost 10 years. Based on the concept of "supporting

Hires," and "For Women from Sales."the 'long-term, individually unique' working lives of female engineers," Woman Tech Terrace

As women are susceptible to significant impacts on their career due to changes at various life

utilizes career-oriented panel discussions and technical sessions in an aim to connect female

stages, these events support in ways that help the women embrace change with positivity

engineers beyond departmental boundaries and create an opportunities for them to plan theirand build active mid- to long-term career paths.

vision of a long and fruitful career.

Photos of conference speakers and venue content* 2018 Information Service Industry Basic Statistics Survey p.30

Photo from a CAramel event

23

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Interview with Active Woman
in the Workplace
Career in "proactive" promotional
work in the PR department led to
CEO position

CEO of one of our subsidiaries. I am very

When I was in my sec ond year at thegender.

a d ve r t i s i n g s a l e s a t C y b e rZ , w h o s e

if they involve risk', Mr. Yamauchi, CEO of

Realizing a career path true to myindividuality while enjoying thechanges in life-stages

tr ying public relations. At fir st, I was

As a matter of fact, I was going through awork was mainly "reactive." But when hesame time as I became the CEO. Taking

company, after working in smartphone
culture values 'taking big challenges even
CyberZ asked if I might be interested inresistant to the idea ― my image of PR

said he wants me to be "'proactive' like inthe sales department," I was sold on theidea and decided to transfer to the PR
department.

"Proactive PR" requires me to understandthe intent of management and consider
how to best communicate their vision. I

also realized that public relations is much
like sales as I became aware that the jobof PR is really to sell the company itself tothe world. As I gradually built up a trackrecord in PR, I started to feel that although
my current position was an advocate forthe company's management, someday I
would like to be in that position myself.

When I shared these aspirations with the
manager, they agreed to assign me as"I want to rely on myself to build up the company and my career.
Taking on challenges as a businessperson and as a woman."grateful for this kind of environment where
the company supports employees' pursuitof c ha ll e n g e re ga r d l es s of c a re er o r

life-stage change, namely marriage, at theon the position of CEO at that timing

carried a heavy burden in terms of bothtime-commitment and mental stress, andsome people around me were concernedthat I may have taken on too much risk. I
would b e l y i n g i f I s a i d I wa s n' t a b i t

c o n c er n e d m y s e l f. H o w e v e r, a s M r.

Yamauchi of ten said, "Careers bloom

when your path and the company's pathcross at the right time. Until that time, youhave to keep your blade sharp for when it

Rina Takai

is needed." These words were a source of
encouragement for me.

President, eStream, Inc.

I realized that, even before this, first steps

Going through that experience shapedknowledge or ability. Still, I did the work in

to take advantage of my natural positivity

always involve not having enoughfront of me with 100% effort, achieved

results, and gradually gained confidence.

who I am today. I look forward to continuing
and abilit y to take ac tion to realize acareer path that is true to my individuality.

24

Joined CyberAgent as new graduate in April 2014.
Gained experience in advertising at CyberZ Inc. Latertransferred to the PR department of same. Contributed
to business growth through proactive PR work.
Assigned as president of eStream in April 2018 andbecame responsible for "e-chance!" Serving in current
position since October 2018.

CyberAgent's Value Creation Model

Superior
Creation
CyberAgent has launched numerous new businesses andremained continuously engaged in self-driven growth
without re lying on me rge rs and acquisitions. Whileestablishing a system for developing new businesses andcontinuing to take on challenges, we are also applying

innovative ideas to boost profitability by implementing

training programs with clear rules on business withdrawal
and not clinging to unprofitable ventures.

25

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Creation System

Ashita Kaigi (Meeting for Tomorrow)

Startup Challenge“Ashita Kaigi” is a meeting (=kaigi) led by company directors in which new business initiatives

Startup Challenge is a new business plan contest for employees and potential recruits.

upon. Twice a year, each director selects four people from among our business leaders andbusinesses if selected.

and solutions that could improve CyberAgent ‘s future (=ashita) are proposed and decided

Presentations are made to the president and officers, which are developed into actual

specialists to assemble teams that compete by delivering proposals. From September 2019,
we changed from a ranking format where participants compete for a total score, to a

“Startup Challenge: Student Edition” was held as a business plan contest open to university

Since its inception in 2006, Ashita Kaigi has resulted in the establishment of 29 subsidiaries.

over 100 proposals, took part in the final presentation where President and CEO Susumu

tournament format. This brought event to a whole new level of tension.

students nationwide (first-year to graduate students). Here, 10 people, screened down from

From these new businesses, we have generated cumulative sales of roughly 250* billion yen

Fujita served as presentation judge. The best proposal was selected for investment from theand an operating income of around 35* billion yen, thereby greatly contributing to business"Fujita Fund," which exists to enhance investments aimed at supporting young managers.

expansion.

Ashita Kaigi tournament schedule

Startup Challenge: Student Edition* As of end of September, 201926

CyberAgent's Value Creation Model

Superior Technology

Superior TalentSuperior Creation

Business Management

Strategic Meetings

CAJJ program

Strategic meetings are held once per quarter for all businesses operated by CyberAgent forThis training program derives its name from CyberAgent plus Japanese words for businessbusiness manager explains their business strategy to the president, providing an opportunity

ef for ts are directed towards achieving grow th. Under clearly established criteria forthe purpose of honing a 'strategic mindset' among business managers. At meetings, each("Jigyo") and personnel ("Jinzai"). Businesses are ranked by level of operating income andto assess the growth of the business. If there are no signs that business growth either

withdrawal, if the business posts a revenue and earnings decline for two consecutive quarters,

matches or exceeds growth of the overall market, strategic changes are implemented such as

the business is either discontinued or the general manager is replaced.

rethinking business content or even withdrawal of the business.

Meetings are also held once a month with all subsidiaries and businesses associated with the
CAJJ program to promote competition and collaboration, such as by boosting intra-groupsynergies and horizontally deploying risk management.

Ranking criteria

J1

Quarterly operating profitof 1 billion plus (yen)J2

Quarterly operating profit

J3

Operating at a profitof 100 million plus (yen)Withdrawal criteria:
Withdraw if income and profit decrease fortwo consecutive quarters

Photo from the Strategic Meeting27

CyberAgent's Value Creation Model

Startup JJJStartup JJJ is a training program whose name is derived from the Japanese words for new
business ("Jigyo"), personnel ("Jinzai") and market value ("Jikasougaku").

Generally targeting startup businesses that have not achieved profitability within two years of
being launched, market value is based on the idea that we want them to become number one
in their market, or to become a project with meaningful impact to CyberAgent.

In Startup JJJ, businesses are ranked by market value and efforts are directed towards

achieving growth. Under clearly established criteria for withdrawal, a business is discontinued
if it exhibits no grow th for six consecutive quar ters or is unable to demonstrate anycompetitive advantage.

Evaluation criteria to increase the business value
Rank startup businesses by the estimated market value

Listed to “CAJJ” when the estimatedmarket value exceeds 5 billion yen

Prelisting¥3 billion - ¥5 billion

Series B¥1 billion - ¥3 billion

Series A¥500 million - ¥1 billion

Early¥100 million - ¥500 million

Seed

Not calculable - ¥100 million"Startup JJJ" Awards Ceremony

Note :

A business may be discontinued if the seed period continues for six consecutive
quarters (18 months), or if gross profit declines for three consecutive quarters.

28

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

New Business Example

RAGE"RAGE" is an esports event operated jointly by CyberZ, Avex Entertainment, and TV Asahi,
whic h c ombines the nex t- generation s p or ts c ompetition of "es p or ts" with various
entertainment properties. RAGE is also a generic term for the esports League.

RAGE is currently implementing two projects: general participatory 'events' mainly held offline;
and a spectator format 'professional league' whose professional player competitions aredelivered online. At events, game titles from multiple genres are brought together under one

roof. In addition to esports competitions that determine the strongest champion in each title,
there are also venue -limited c ompetitions, test plays for new titles, and live ar tist
performances.

Esports competitions held to date with prize systems have consisted of the following four titles(in alphabetical order): "Shadowverse" (Cygames Inc.), "Street Fighter IV" (Capcom Co., Ltd.),"Vainglory" (Super Evil Megacorp), and "Winning Eleven 2017" (Konami Digital Entertainment
Co., Ltd.).

There are also some non-prize winning competitions that use "Splatoon 2" (Nintendo Co.,
Ltd.) and "PlayerUnknown's Battlegrounds" (PUBG Corporation). As for esports leagues inwhich Japan's top players participate, we operate "RAGE Shadowverse Pro League" as wellas "RAGE STREET FIGHTER V All-Star League powered by CAPCOM."

29

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

TappleOperated by MatchingAgent Inc., "Tapple" is a dating app that matches people with similarinterests. As an online dating app where people use similar interests such as cooking, movies
or sports as a jumping-off point to find dating partners, Tapple has launched the relationships
of some 7,200 couples each month since the service began in May 2015, and enjoys avid
support especially from young persons in their early twenties.

Currently holding over 5 million registered members, Tapple has been used to set up around 2
billion matchings, making it the largest service of its kind in Japan.

* As of end of October 201930

Superior Technology

Superior TalentSuperior Creation

CyberAgent's Value Creation Model

WinTicket"WinTicket," launched by WinTicket, Inc. in April 2019, is an internet betting service that allows
users to purchase betting tickets for cycle racing ("Keirin") events. The "Keirin Channel" wasalso simultaneously launched on AbemaTV.

Keirin Channel aims to communicate the excitement cycle racing not only to existing fans, butalso to the younger generation who are generally unfamiliar with cycle racing. The channel

produces and delivers special programs centered mainly on live race broadcasts and midnightraces, and includes features that allow users to purchase betting tickets even as they watch.

We are committed to continuing to expand our range of services and aid in the monetization ofAbemaTV.

31

Superior Technology

Superior TalentSuperior Creation

Business Models and Synergies
CyberAgent is implementing a three-pillar business portfolio with specific focus oninternet industries.

Business
model

02

Business Models and Synergies

CyberAgent's Business Model

AbemaTV
Ameba
AWA
TappleC yb e rAg e nt ’s main fo cus e s a r e on m e dia ,Media

internet advertising and game businesses. In
each of these, we are expanding business by

Businessusing our operational advantages as a competitiveedge, also leveraging our strengths in content

production, customer attraction, marketing, and

ale
Ad
S
es
ac
Sp
Ad

Economic value

Synergys

Outc o me

er

nt
tom
us
nte
Co act CtrAtssales to generate business synergies.

Sales
ProfitInternet Ad

Cash

Outc o me

Business

Marketing
Ad Placement

Game

Business

Social value

Creation of new industries
Employment promotion
New info infrastructures
Development of IT TalentEntertainment provision

Esports
AI Business Unit
Internet Advertising Business Unit
CA Dashboard

Sengoku Enbu-KIZNAGranblue Fantasy
Shadowverse

Ad Creative

BanG Dream! Girls Band Party!

© Cygames, Inc.
©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved

33

Business Models and Synergies

B usiness S yne r g y E x a mp l e sMedia Business

Internet Advertising Business

Our internet ad business sells ads on AbemaTV which
is deployed through our media business

Advertiser Nestle Japan takes advantage ofAbemaTV to boost awareness of NESCAFE

C yb e r Ag e n t

In this promotion example, a spin-off movie of this blockbuster was

distributed on AbemaTV, achieving widespread attention by merging
c ontent with ad ver tis in g. As a result of a ma ximizin g v iewer

motivation to view this episode and achieving seamless advertisingcontact, this effort generated an impressive response with some

80,000 comments posted on the commercial. This also establisheda new kind of communication design in which users themselves canbecome influencers by interacting with others in the comment
section. It turned out to be an excellent oppor tunity that users

established trust in the product, win over customers, and spreadawareness.

Nestle Japan Ltd.

34

B usin e s s s y n e rgy

GOLDBLEND BARISTA coffee machines

Business Models and Synergies

B usiness S yne r g y E x a mp l e s

Game BusinessMedia Business

Early release of new game-based animation on AbemaTV"Granblue Fantasy The Animation Season 2,"
based on the original Granblue Fantasy
provided by Cygames, was delivered via
broadcast and exclusive early-release formats.
C yb e r Ag e n t

Original IP anime was broadcast on AbemaTV's popular anime

channel. To fully utilize the opportunity, not only did we rerun thefirst season in advance to generate buzz for the sequel, but apromotion was run with the Granblue Fantasy game, providing
in- game items to enc ourage players to watch the anime, andviewers to play the game.

Granblue Fantasy Campaign to commemorate the 2nd season launch of the anime©Granblue Fantasy The Animation Project © Cygames, Inc.

35

B usin e s s s y n e rgy

AbemaTV simultaneously in both regularBusiness Models and Synergies

B usiness S yne r g y E x a mp l e s

Internet Advertising BusinessGame BusinessOne of Japan's largest esports events held with
Cygames’ game as the competitive game title.

One of Japan's largest esports events"RAGE Shadowverse 2019 Autumn" Grand
Finals that featured Pro smartphone card

C yb e r Ag e n t

T h i s e s p o r t s eve n t i n v o l ve d " R AG E ," J a p a n' s l a r g e s t n ex t

generation esports tournament (operated in a collaboration between
CyberZ, Avex Enter tainment, and T V Asahi), and digital CCG(Collectible Card Game) "Shadowverse," which has achieved over
21 million downloads.

The venue, which also attracted many women and foreign visitors,
was filled with excitement and enthusiasm as players bat tled

fiercely for the chance to win a prize of 4 million yen and the right toparticipate in the world championship "Shadowverse World GrandP r i x 2 019 " (110 m i l l i o n y e n g r a n d p r i z e), c u l m i n a t i n g i n aresoundingly successful event.

RAGE Shadowverse 2019 Autumn, Grand Finals

36

B us in e ss sy n e rgy

battle game as main content "Shadowverse"

Business Models and Synergies

Media
Internet T V station "Abe maT V" launche d in April 2 016,
earning over whelming support from the younger
demographic and achieving 10 million WAU* in just three anda half years. We also offer a wide variety of entertainment
services that include the world's largest blog service "Ameba
Blog" as well as dating app "Tapple."* WAU 10 million: Number of active users accessing at least once a week, achieveda record 10 million by June 201937

Business Models and Synergies

AbemaTV Business Model
Income is derived from ad revenue and in-app purchase of premium member fees (960 yen/month)which allows subscribers to watch on-demand content and provides unlimited features. About 75% ofcosts are content costs for program production or sourcing.

AbemaTV
In-app purchases
Paid content

Abema video
Production costs
Advertising expenses
Personnel expenses
etc.

In-app purchase income

Various functions

Users

AbemaTV
Free services

Advertising income

Ad placement

Advertiser

Non-broadcast income

Purchase
Products and refunds

Commission income fromshopping, gifting, public
competitions, etc.

38

Cost

Business Models and Synergies

About AbemaTV
AbemaTV delivers around 20 channels with content ranging from original programs such as reality
dating shows, to news, animation, sports and more. Users can enjoy TV-quality programs on various

smart devices with additional services for premium members (960 yen/month) such as on-demand
paid content, content download, and simultaneous rec and play.

Market Entry Background

Service Characteristics
We offer a unique service that combines on-demand andlinear offerings.

Video market has expanded as a result of the sharp increase of
media consumption from smart- and mobile-phones.
200（mins）
180

173 mins
144 mins

160

TV

140
120

Youngerdemographic
targetVariety ofcontent

TV-quality

Around20 channels

24-hourformat

UI and UX
tailored toeach device

103 mins Smartphone/100

mobile phone

80
PC

60
40

25 mins
Radio

20
0

2010

2012

2014

2016

2018

* Media consumption time: Calculation of average daily media consumption by men and women aged
15–59 living in Tokyo (based on Institute of Media Environment research)

39

Business Models and Synergies

AbemaTV Versus Competitors* （MAU* ）1

2Achieving Japan's highest MAU through major support from young demographic viewers.

Comparison of 10s–20s Demographic MAU
among Video Distribution Services

MAU Comparison Among Video Distribution Services

AbemaTV

AbemaTV

Amazon prime video

Amazon prime video

GYAO!

TVer

TVer

GYAO!

dTV

Netflix

Hulu

Hulu

Netflix

DAZN

DAZN

dTV

Video Pass

Video Pass

ParavidTV Channel*1 Comparison MAU among video distribution services: Based on app analysis tool "App Ape" provided by Fuller, Inc.; As of June 2019
*2 MAU: Monthly Active Users; As of June 201940

Business Models and Synergies

AbemaTV User Count and Attributes
AbemaTV exceeded 45 million downloads in just 3.5 years after its launch. The number of smart

device users in Japan is generally believed to be around 80 million. Of them, around 10 million users
now access content at least once per week, demonstrating a steady increase in the user base.

WAU* GrowthUser Demographics
Over half are 18–34 year olds.

Record 10 million WAU.
1,330
1,070

1,027

1,059

855
628

510
475

Apr.

352

269

928

54%

843
658

550 568

267

118

729

6%

1,005

918

550
679

623
591

732

46%

418
Female

Male

Jun.

2016

Sep.

Dec.

Mar.

2017

Jun.

Sep.

Dec.

Mar.

2018

Jun.

Sep.

Dec.

Mar.

Jun.

3%

1,269

29%

14%
20%

28%

18-24 years old

45-54 years old

35-44 years old

Over 65 years old

25-34 years old

55-64 years old

Sep.

2019

* Gender ratio: Attributes of users with at least 5 minutes access time, as of January–March 2019(values measured by Google Analytics)* Age comparison: Age attributes of users with at least 5 minutes access time, as of March 2019(values measured by Google Analytics)* Employment ratio: Employment ratio of users (N=1,953) from February 22 to April 25, 2017

* WAU：Weekly Active Users(value assigned by Macromill monitor from AdID/IDFA)

41

Business Models and Synergies

Content Provided by AbemaTV
A wide variety of content is delivered from around 20 channels. An extensive lineup of original

programs targeting the younger demographic is available, among which reality dating shows, dramas,
animations, and variety shows in particular have earned significant popularity.

There are also a number of other programs worth watching for their live coverage of news, urgent

press conferences, sports, etc. Info on these has spread across social media, search engine services
etc., providing opportunities for more people to find and use the service.

Channels and Lineup

Number of broadcast programs*
We broadcast only the highest quality lineup created byprofessional producers.

We provide around 20 channels including original live broadcasting,dramas, news, animation, sports and more.

Linear
About 700 series/month
About 5,500 episode/month(Originals*2 About 600 episode)On demand
About 900 series
About 20,000 episode(Originals*2 About 5,000 episode)*1 Number of broadcast programs: As of January 2019*2 Originals: In-house produced programs including reality dating shows, variety shows, dramas, news, etc. ©AbemaTV42

Business Models and Synergies

Diversification of AbemaTV BusinessWe actively pursue diversification of our business, including collaborations with other companies andperipheral businesses.

Business Alliance

Shopping Channel

Dentsu Inc.

Hakuhodo DY Media Partners Inc.

Partnership
DAZN , niconico , Gunosy

Working with
PartnerCompanies

RelatedBusiness

Public Gambling
WinTicket

A dedicated button appear on remoteSony Marketing Inc.

Tipping

Toshiba Visual Solutions Corporation
Panasonic Corporation

Supporting Function

FUNAI ELECTRIC CO., LTD

New Billing Service
SoftBank Corp.

Animation Label CAAnimation

M＆A

Increasing IPs

FC Machida ZELVIA

Anime FundDDT Pro Wrestling

Licensing43Business Models and Synergies

AbemaTV Growth Strategy
We are intensifying monetization through non-broadcast income while steadily increasing in-app andadvertising income

Mid-to-long Term Sales Image

Relatedbusiness
income,etc.

In-apppurchaseincomeAdvertisingincome

2016

2019

44

Business Models and Synergies

Internet Ad
Since our founding in 1998, we have been expanding ourinternet ad business which has already achieved the top
market share in Japan. In addition to advertising sales,
CyberAgent also delivers comprehensive solutions thatleverage its strengths in maximizing advertising
effectiveness, including AI-driven technologies and expertisein creative work.

45

Business Models and Synergies

Business Model
Through our internet advertising business, we purchase advertising space from such companies as

Google, Facebook, Yahoo! Japan and LINE, and sell it to roughly 600 advertisers* each quarter. Whilestrengthening brand advertising with an emphasis on national clients, we aim to continue maximizing
advertising effectiveness.

Production
incomePosting fee
incomeAdvertiser

Automotive
Beverages
Financial

Order
Reporting

System usage
fee income

Internet
Advertising
BusinessMedia

Ad placement
Results of insertion

Cosmetics

Facebook
LINE

Yahoo! Japan

Game

Twitter

Online MediaEC

GoogleAbemaTV

Attract customers* Advertisers: The number of companies that have business relations with the internet advertising business of CyberAgent. The number of client companies of subsidiaries is excluded.

46

Business Models and Synergies

Internet Advertising Market and Our Growth Rate
Internet advertising continues to expand the market, driven by the massive digital shift. CyberAgent isleading this market, boasting Japan's top market share.

Internet Ad Market

2012

2013

2014

2015

2016

* Growth transition: Growth rate based on setting 2012 as “100”* Internet Ad Market: “Advertising Expenditures in Japan 2018” by Dentsu, Inc.

47

2017

2018

Business Models and Synergies

Our Competitive Advantages"Operational Advantages" and "Collective Capabilities"

Tools to Maximize Advertising Effectiveness andan Operating Structure of Over 700 Staff

A Production Force of Over 400 Staff Including Creative
Subsidiaries that Specialize in Creative and Production WorkFor advertisers, we provide the business intelligence (BI) tool "CA Dashboard"

The Creative Development Division at our Internet Advertising Headquarters includes abeta which has been specifically designed for internet advertising. In addition tocreative system for brand and direct marketing. By also collaborating with subsidiaries thatfacilitating decision-making and swift judgments in the PDCA process, we havespecialize in production, we are able to boost our collective capabilities and realize the kindalso established an operating system of over 700 people to achieve aof creative development that reflects platform characteristics and user sentiment.

sophisticated advertising operation that meets the needs of our customers.

AdTech tools for advertisers

System for maximizing advertising effectiveness48

Business Models and Synergies

AwardsWe have been recognized with a number of awards based on high ratings from partner media.

Yahoo! JAPAN Marketing Solutions ★ ★ ★ ★ Partner"Google Premier Partner Awards" certified by Google Inc.

Facebook Marketing Partners, Certified Partner

Certified as a partner company under the 'Ad Technology'
category in the Instagram Partner Program.

Received “Gold Award” as partner with the most excellent
results overall and MAP Award for two consecutive terms
at the Agency Award ceremony "#TwitterAgencySummit “held by Twitter Japan.

Received a 5-star (★★★★★) rating as a Criteo Certified
Partner (Criteo's Star Partner Certification Program),
which certifies the only top-ranked partners in Japan.

Certified at the highest rank of "Diamond" sales partner inLINE Sales Promotion category of the LINE Biz-Solutions
Partner Program.

Certified at the highest rank of “Diamond” sales partner inLINE Ads Platform category of the LINE Biz-Solutions
Partner Program for four consecutive terms.

Certified at the highest rank of "Diamond" sales partner
for three consecutive years, and "Gold" technology
partner for four consecutive years in the LINE AccountConnect category of the LINE Biz-Solutions Partner
Program.

49

Business Models and Synergies

Key Area Enhancement
In digital advertising, whose demand continues to grow along with market growth, it is essential toachieve mass production of high quality creative work and also operate in a manner that leverages

advantages. As it is unrealistic to handle the enormous amount of work manually, we recognize theimportance of utilizing AI (artificial intelligence) in enhancing this area, and are actively conducting
R&D to incorporate this technology into advertising deployment and operation.

Movie

IR Channel - "AI for Digital Ad"
Learn more about the efficient, AI-driven advertising deployment
techniques that CyberAgent is working on. This 6 -minute video

presents a summary of the aspects of digital advertising making
rapid progress via AI, including the creation of highly ef fective

adver tising messages and helping with the selection of optimal
creative works.

50

Business Models and Synergies

Games
In our game business which we launched in 2009, we provide
smartphone games centered mainly on eight major titles, andd eve lop and op e rate game s in a wid e range of ge nre s
through 14 subsidiaries, the largest of which is Cygames.

51

Business Models and Synergies

Business Model
We provide games for smartphones. These are free-to-play games that adopt the freemium model thatcharges for only certain items in-game. We have five original IPs among the eight major hit titles
released, while the other 3 games are developed and operated under other companies' IP.

Original IP

Game

In-game purchases

Business

Users

Platform fee, 30%
Ex, Apple, Google

Item

Income fromin-game item
purchases

Other
company IP

In-gamepurchases

Users

Publisher
Ex. NintendoDistribution

Item

Revenue sharing

Development costs

incomeAdvertising expenses
Personnel expenses
etc.

52

Business Models and Synergies

Comparison of Market Size and Competition
Although the market's grow th rate has slowed as the spread of smar tphones has essentiallycompleted, the Japanese game market is the third-largest in the world and can be expected to makefurther progress in the years to come. We have deployed several hit titles that continue to provide abusiness with stability and little volatility.

Game market country rankings*

Comparison of Competitors' Quarterly Sales*

Japan has the third-largest game market in the world.

Rank

Country

Revenue

1

United States

36.8 billion USD

2

China

36.5 billion USD

3

Japan

18.9 billion USD

Market share of top 5 company's in the smartphone game market.

FY 2014* Game market country rankings: "2019 Global Games Market Report"

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019* Competitor comparison: Shows internet gaming sales from earnings presentation material of the respective company.

53

Business Models and Synergies

Competitive Advantages
In addition to the high hit rate of games from Cygames, the game business is also characterized by thelong-lasting popularity of its existing titles due to the company's high level of operational expertise.

With the latest equipment, the company has what it takes to develop cutting-edge, high-quality games,
and has produced several hits in collaboration with partner companies that hold prominent IPs.

Cutting-Edge Development Equipment
The company is fully equipped with a photogrammetry studio, which quickly produces 3D models from photogrammetric images anda motion capture studio that transforms the actor's movements into 3D motion-capture data.

Cygames Photogrammetry Studio

Cygames Motion Capture Studio

54

Business Models and Synergies

Key Titles
Our eight key titles include "Granblue Fantasy," an original title that has been a huge hit since its 2014
release, achieving 25 million users to date, and "BanG Dream! Girls Band Party!," an IP owned by
Bushiroad Inc. Strong operational advantages of existing titles provide business stability.

* Granblue Fantasy users-to-date is as of December 2019

© Cygames, Inc. ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad ©sumzap All Rights Reserved.

55

Business Models and Synergies

Future Plans
We plan to provide in the range of five to six new titles for smartphones annually. Four new titles werereleased between October and November 2019, with Cygames' new title "World Flipper" in particularhaving a good start. We are also working to strengthen our original IPs through efforts that include porting
the highly popular Granblue Fantasy property to the PS4, and broadcasting animations on AbemaTV.

Smartphone Games

Console GamesBLADE XLORDWorld Flipper *1

Granblue Fantasy: Versus

RPG
Released on Oct. 25, 2019 ｜ Provided by Applibot, Inc.

Non-stop full-on action
Released on Nov. 27, 2019 ｜ Provided by Cygames, Inc.

For PS4 ｜ Feb. 2020 On Sale
© Cygames, Inc. Developed by ARC SYSTEM WORKS

KonoSuba: God's Blessing on
this Wonderful World! Fantastic Days *2

Uma Musume: Pretty Derby *3

Granblue Fantasy: Relink

Training simulator
Provided by Cygames, Inc.

For PS4 ｜ In development© Cygames, Inc.

This winter ｜ Provided by Sumzap, Inc.

*1 World Flipper: © Cygames, Inc. / Citail Inc. Developed by Cygames, Inc. and its subsidiary Citail, Inc.
*2 KonoSuba: God’s Blessing on this Wonderful World! Fantastic Days: ©2019 Akatsuki Natsume, Mishima Kurone / KADOKAWA/ KonoSuba Movie Production Committee ©Sumzap, Inc. *3 Uma Musume: Pretty Derby: © Cygames, Inc.

56

CyberAgent by the Numbers
In its 22nd year in business, CyberAgent's consolidated sales totaled 453.6
billion yen, achieving a new record high as the company continues to
e x p a n d i t s b u s i n e s s . We c o m p i l e n o t o n l y f i n a n c i a l i n f o b u t a l s omanagement indices and shareholder returns that are necessary for making
investment decisions.

FY2019Numbers

03

CyberAgent by the Numbers

Consolidated
Sales

Consolidated OP

453.6

Subsidiaries

billion yen

308

Employees(consolidated)billion yen

DOE *Dividend Payout
Ratio

5.2
245.2

Female-To-MaleManagement Ratio%(Non-consolidated)

Engineers andCreators Ratio%(Non-consolidated)* FY2019 * DOE * Dividend on Equity = ROE (Net income ÷ Equity capital) x Dividend payout ratio

58

115
5,139
21.5
23.3

%

%

CyberAgent by the Numbers

Growth Strategy and Management Indices
CyberAgent is still achieving sustainable business expansion as a result of making two major upfront

investments in the past. Now that watching videos through smart devices has become a way of life forthe younger generation, CyberAgent is making its third upfront investment in internet TV station"AbemaTV" as a pillar of its medium to long-term strategy.

Operating Profit ImageManagement Indices

Aim to highly profitable business model by repeating the cycle of upfront investment andCyberAgent takes advantage of its adaptability to change to promote continued businessgrowth. In April 2016, we entered a new investment phase when we launched our internet

reward-reaping.

TV station "AbemaTV." For this reason, since the year ended September 2017 we haveintroduced DOE as a management benchmark, which is calculated by multiplying ROE by
the dividend payout ratio. At time of investment, we looking for a DOE of at least 5% inorder to support our shareholders in the medium to long term.

Investment
in Videocontent
business
Investment
in Smartphonebusiness

Dividend
Payout Ratio

ROE

Media
Business245.2%

DOE

5.2%

245.2%
24.4%
Game
Business

5.2%
4.4%

18.9%

2.1%

Investment
in blogs

100.0%

5.2% 5.0% 5.2%

NikkeiAverage

83.0%

2.6 %

5.2% 6.0%

AD
Business

FY 2015

FY 2016

FY 2017

ROE59

FY 2018

2.1%

21.2% 23.1%

FY 2019

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Dividend Payout Ratio

FY 2015

FY 2016

FY 2017DOE

FY 2018

FY 2019

CyberAgent by the Numbers

Financial Highlights
Consolidated Sales

Operating Income

Consolidated sales 453.6 billion yen(YoY increase of 8.1%)

Operating income of existing business*1 is 51.1 billion yen

FY2020 (E)453.6B 465.0B

New record highOperating income is 30.8 billion yen as

30.8B

investment *2 in AbemaTV etc.

30.1B

the result of a 20.3 billion yen upfront

419.5BFY2020 (E)

32.0B
28.0B

FY 2000

FY 2005

FY 2010

FY 2015

FY 2019

FY 2000

FY 2005

FY 2010FY2015FY2019*1 Existing Business: Advertisement, game and media businesses of "Ameba", "Tapple", etc.
*2 Upfront investment in AbemaTV etc.: Operating losses incurred with AbemaTV etc.

Net income** Net income attributable to parent company shown
14.7

Total dividend andpayout ratio
245.2%

13.6

4.0
3.1

4.0

FY 2016

FY 2017

FY 2018

4.0

4.1B

81.5
77.1 78.9

79.1B

ROE (Return on Equity)
24.4%

66.7

DOE (Dividend on Equity)
Management Index
5.2%

5.2%

5.0%

5.2%

FY 2018

FY 2019

4.4%

18.9%

3.1
100.0%

4.8

1.6B
FY 2015

Equity capital

FY 2019

5.2% 6.0%

83.0%

21.2% 23.1%
FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2015

FY 2016

FY 2017

FY 2018

Unit : billion yen

60

FY 2019

FY 2015

FY 2016

FY 2017

FY 2018

2.1%
FY 2019

FY 2015

FY 2016

FY 2017

CyberAgent by the Numbers

Full Year

Statements of Income (PL)
(Unit: million yen)

FY2015FY2016FY2017FY2018FY2019254,381

310,665

371,362

419,512453,61132,74736,79030,70030,16330,825Non-operating income

261

212

387

372

535

Non-operating expenses

695

1,660

2,346

1,970

867

Ordinary income

32,31435,341

28,741

28,56530,493Extraordinary income

3,272

5,212

668

981

1,912

Extraordinary loss

4,866

5,935

4,731

5,498

12,985

Income before income taxes and non-controlling interests

30,71934,61924,67824,047

19,420Net income

17,66018,57012,298

10,116

6,062

Profit attributable to non-controlling interests

2,868

4,957

8,274

5,266

4,368

Profit attributable to shareholders of parent

14,792

13,612

4,024

4,849

1,649

Net sales
Operating income

61CyberAgent by the Numbers

Cash Flow Statement (CF)Balance Sheet (BS)
(Unit: million yen)

FY2015FY2016FY2017FY2018FY2019Current assets

93,532

114,647

117,010

170,411

168,662

Non-current assets

37,656

41,95046,99855,021

56,172

Total assets

131,188

156,597

164,009

225,484

224,876

Current liabilities

52,01362,137

62,79972,44970,749Non-current
liabilities

1,472

1,845

2,423

43,784

43,774

Capital stock

7,203

7,203

7,203

7,203

7,203

Shareholders' equity

64,601

74,791

74,672

76,12974,015Net Assets

77,702

92,614

98,785109,250

110,352

50.8

49.3

48.1

36.2

35.2

Equity capital ratio(%)(Unit: million yen)* "Partial Amendments to Accounting Standard for Tax Effect Accounting, etc." is applied from FY2019.
The change of accounting standard took effect retroactively to FY2018.

62

FY2015FY2016FY2017FY2018FY2019Cash flow fromoperatingactivities

29,021

28,246

21,62428,394

14,917

Cash flow frominvestingactivities-19,492-15,224-20,396-22,410-18,000

Cash flow fromfinancing
activities-2,362453-7,23339,748-4,662

Cash and cash
equivalents at
the end of period

38,716

51,767

46,61392,37984,563

CyberAgent by the Numbers

Media BusinessNet sales

Operating Income

Led by AbemaTV (YoY increase of 18.5%)

Sales of AbemaTV etc. have risen by around 1.8 times YoY.

37.3B

11.1B

31.4

25.6
21.9
6.3

1.9

0.2
FY2016FY2017FY2018FY2019FY2016FY2017FY2018FY2019

-20.9

-20.8

-20.3

-9.9
Unit : billion yen

63

CyberAgent by the Numbers

Internet Advertising BusinessNet sales

Operating Income

Focus on new business development

21.34

260.2B(YoY increase of 8.4%*)

241.4

20.60B

18.71

208.1
15.16
175.4
11.52

142.8

FY2015FY2016FY2017FY2018FY2019* YoY comparison: Excluding Cyber Buzz, Inc. that became unconsolidated (FY2018 full year sales: 1.51 billion yen)
Unit : billion yen

64

8.1%

8.6%

9.0%

8.8%

FY2015FY2016FY2017FY20187.9%

FY2019

CyberAgent by the Numbers

Game BusinessNet sales

Operating Income

Sales were driven by major titles

Game business keeps steady revenue(up 3.9% YoY)

140.3

146.5

(up 2.9% YoY)

152.2B

30.45
26.50

122.6

87.0

FY201525.30

26.04B

17.87

FY2016FY2017FY2018FY2019FY2015

Unit : billion yen

65

FY2016FY2017FY2018FY2019

CyberAgent by the Numbers

Shareholder Return Policy
We recognize the return of profits to shareholders as an important issue in management, and plan toboost medium to long-term shareholder value by growing the business and improving capitalefficiency while also continuing to pay out dividends.

Stock Price of CyberAgent vs Nikkei Stock Average *Dividend History

13
12

32 yen32 yenFY2017FY201833 yen33 yen11
10

25 yen

9
8
7
6
5
4
3

Nikkei2
1
0FY2000FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2016FY2019* Stock Price of CyberAgent vs Nikkei Stock Average*

Stock chart of CyberAgent vs Nikkei Stock Average with setting the CyberAgent stock price as of March 2000 as 1

66

FY2019 FY2020(E)CyberAgent by the Numbers

Employee Facts
By Gender

By Job TypeBy Age GroupThe ratio of males is slightly higher due tothe large number of engineering staff.

Technical positions account for 34% of
our staff composition.

The age 20–30 demographic accounts for 84% of
our staff with the younger generation playing activeroles in the company.

11%
35%

23%

65%

16%
40%

66%

Business

20s

Male

Engineers

30s

FemaleCreators

40 or over

44%

Management Composition by Gender

Hiring of New Grad & Mid-career ProfessionalYears of Service

Female managers* hold at least 20% ofmanagerial positions.

We proactively recruit new graduates to ensure
market competitiveness of the company.

Work environment encourages staff retention with
44% of staff staying at least 5 years.

22%

Male
Female

78%

59%

19%

41%
< 3 years
3-4 years
5-6 years

New Grad Hiring

7-9 years

Mid-career
Professional hiring

10+ years* Managers: Management level or higher, and producers or directors at or above a certain grade * CyberAgent parent company executives and full-time employees, total 1,589 (as of the end of September 2019)67

15%
10% 14%42%

CyberAgent by the Numbers

Subsidiary Presidents' Age Demographics

Working Mothers

Younger employees are given active roles as managers.

We support working mothers, who make up 23% of our female staff.

10%

20s

23%

23%

10%

67%

67%

Working Mothers

30s

On maternity/childcare leave

40 or overNon-mother female employees

Turnover Rate

Returning to Work after Maternity/Childcare Leave

Low turnover rate continues.

We promote work-life balance by continuing to improve "macalon," our system forpromoting women in the workplace.

10%

99%
Turnover Rate

68

04
ESG
CyberAgent has been expanding business in the internet domain since
its inception, and by drawing on the knowledge and businessr e sour c e s b uilt up ove r t h e ye a r s , we a r e c o mmit te d to h e lp in g torealize a society capable of sustainable growth.

ESG

ESG

Environment
CyberAgent is making efforts to reduce environmental burdens andmaintain optimization in its operations to contribute to preserving
the global environment and achieving a sustainable society.

70Environment

ESG

SocialGovernance

Our Commitment to Environment

Promotion of Digitalization

Security Protection and Recycle

CyberAgent is working on digitalizing internal documents, including cost calculations, invoices,Documents in the office are destroyed using an exclusive recycling trash bin (Mamoru-kun) (Japan“GEPPO,” a tool to assess employee conditions and promoting digitalization of various kind ofcontributed to saving 1,927.49 trees and around 55,531.06kg (8.6% down compared to the sameand received faxes to reduce the amount of paper used in the office. By developing and providing

Purple Inc.) which maintains confidentiality and recycling. From April 2018 to March 2019, it

documents related to business transactions, we create an environment where each employee canperiod previous year) in carbon dioxide emissions annuallyfocus on their primary duties by preparing an internal system.

Conversion of Studio Lightsinto LED
CyberAgent reduces the environmental burden by saving energy. An example is to adopt LED

lights for the studio that "AbemaTV" uses for shooting. LED emits less harmful rays, such as heatrays and UV, and will also lead to cutting down stress found in shooting, like heat factors.

71

ESG

SocialWith taking advantage of our services and accumulated know-how,

we fulfill our social responsibility and make the efforts to enable thecreation of social value in a variety of fields.

72EnvironmentESG

E S G N ews

Contributions to Local Communities"Bit Valley" ProjectTo give the world wonderful services and products thatmove one’s hearts and astound the world

The Bit Valley project began in 2018 as a joint effort with Internet companies who are also

based in Shibuya to turn the district into a global IT hub. At the second event, Bit Valley
2019, the theme was: "Toward New Domains of Craftsmanship: Where Technology andCreativity Intersect." The event was for engineers, as well as anyone from the IT industry
involved in craftsmanship. During the two day-event, 1,700 participants signed up forsessions on diverse topics on technology, along with design, product management, music,
ideas and more. In addition to students aspiring to become engineers, there were manyother students of the fine and performing arts. This young talent was exposed to the latest
technology, creative works and diverse working lifestyles. The event helped the students
imagine what careers they want to pursue.

A speaker session

73

SocialGovernanceEnvironment

ESG

SocialE S G N ews

Contributions to Local Communities"Kids VALLEY" Future Learning Projectー Career Education Support to Develop IT Professionals ー

Structure of Companies’ Role
Shibuya Elementary & Jr. High Schools(Teachers, Elementary/Jr. High Students)

This project is a joint effort between Tokyu Corporation and four Internet companies

including CyberAgent, all located in Shibuya, and the Shibuya City Board of Education toenrich programming education in the city’ s public elementary and junior high schools. An

Shibuya City Board of Education

integrated public-private project, Kids VALLEY provides support for the development ofprogramming curriculum for elementary and junior high students, classroom support andcareer education support for the development of IT professionals through visits toConnect schools, advise on curriculum

Provide curriculum, support classes

In 2019, the companies held programming workshops for elementary students during

General Coordination

Deploy IT Knowhow

companies in the industry and other activities.

summer break, provided support and training for the development of programming
curriculum for the city’ s elementary and junior high school teachers.

Tokyu Railways

The goal of Kids VALLEY is the cultivation of world-leading talent in the field of IT from
Shibuya, where CA Tech Kids is also based. The project also aims to contribute to thedevelopment of IT professionals in Japan by systemizing and raising the visibility of theseeducational initiatives to drive programming education nationwide.

74

IT Firms locatedin Shibuya
CyberAgent, DeNA,
GMO Internet, Mixi

General mgt. and coordination

Curriculum development

Gov't/university coordination

Teacher training, class support

GovernanceEnvironment

ESG

Commitment to Society

Fostering IT Talent

1

The development of talent able to use technology to lead society into 21st century brings not only

the social significance of raising the IT industry's international competitiveness and creating future
jobs, but is also an important effort for increasing the potential for growing our company's internet
business while reducing operational risks such as the shortage of capable engineers.

CyberAgent established "CA Tech Kids" in a joint venture with "Life is Tech, Inc." to offer

programming education to elementary school students In May 2013 and provided programming
educational opportunities to over 30,000 elementary students.

In addition to being the driving force behind many elementary school students who have released
original iPhone applications on the App Store, "Tech Kids School," where participants learn

real-world programming, has achieved remarkable learning results by turning out students every
year who win prizes in a variety of programming contests.

While programming education will be mandatory at all elementary schools from 2020, there are
hurdles in disseminating programming education, including a lack of high-caliber teachingmaterials and lecturers to teach kids programming as well as disparities in educational

opportunities between urban and rural areas. To overcome these hurdles, we developed theonline programming learning service "QUREO" and launched its operation in February 2018.

2"QUREO" not only incorporates the knowledge and expertise that CA Tech Kids has built up

through its business, but also leverages insight on game knowledge such as video and character
navigation through collaboration with Applibot, a game company within the group. This delivers
enjoyable learning, even for kids with no previous knowledge or experience, in a framework thatallows them to independently learn at their own pace. Participants effectively learn the basics ofprogramming, covering 50 items including repetition and conditional branching, in a curriculumthat is even used as teaching material in programming classes throughout Japan.

CyberAgent and CA Tech Kids' efforts go beyond just helping kids acquire IT programming

1 Photo: Programming course offered by CA Tech Kids

knowledge and skills ― they teach the skills to 'design,' 'realize,' and 'make forward progress' in an

2 the online programming learning service "QUREO" materials

aim to support the development of "talent capable of using technology as a tool to realize theirown ideas and actively engage in society."

75

SocialGovernanceEnvironment

ESG

Programming Education Activities
CA Tech Kids carries out a variety of publicity activities, including programming contests andcertification exams, to foster awareness of programming education.

Programming Contests for Elementary Students

1

The Tech Kids Grand Prix is a programming contest for elementary students. With its slogan of“you are the creators of the 21st century,” contest entries are judged from three perspectives:
VISION (the dream or world the student wants to realize), PRODUCT (the creative idea that willrealize that dream and the product embodying it), and PRESENTATION (the student’ s approachto communicating their vision and product to the world).

1,422 entries were received during the first Grand Prix in 2019 with 10 finalists passing the judging
round to give their final presentations. The sophistication of the student’ s products andpresentations drew widespread attention in the media and elsewhere.

The aim of the Tech Kids Grand Prix is to become a goal for not just Japanese children, but

children around the world to work towards. With this in mind, outstanding elementary student

programmers from the Asia-Pacific region are invited to the contest as guest speakers during thefinal presentations.

2

Programming Certification for Elementary Students
CyberAgent launched the CyberAgent Kids Programming Certification Exam ( ” Pro-ken” ) tomeasure knowledge and technical ability of programming. The first exam was held in August 2019
aimed to give children the chance to get a feel for their development as a programmer.

The Pro-ken certifies examinees’ programming knowledge and technical proficiency in using
Scratch and QUREO visual programming tools according to different ten levels.

1 Tech Kids Grand Prix 2019
2 CyberAgent Kids Programming Certification Exam 201976

SocialGovernanceEnvironment

ESG

Popularizing & Promoting Programming Education
CA Tech Kids is actively carrying out a wide range of initiatives to introduce, popularize and promote programming education in
public schools. These include programming classes at schools, teacher training in partnership with local government andpublic elementary schools, and government policy advocacy related to programming education.

Teaching Programming Classes at Schools

1

CA Tech Kids conducts programming classes at elementary schools across Japan. In theseclasses, students learn basic concepts related to controlling computers by developing simple

games with Scratch, software made for learning programming. Comments from children who havetaken the classes include: “Until now I only played video games, but I learned that I can makethem too,” and “I understood that programming and other technologies make our world moreconvenient.”

CA Tech Kids also holds a variety of new practical classes at primarily pilot and private

elementary schools and intends to give back the results in preparation for programming becoming
compulsory in 2020.

Initiatives With Local Government
CA Tech Kids is working to create programming education opportunities across Japan throughlocal government outsourcing and various partnerships.

2

The activities carried out as part of these partnerships include offering workshops for children
organized by local governments, training and development programs for instructors, offering
policy assistance to city government and councils, and company visits by politicians andeducators. Since CA Tech Kids’ establishment in 2013, it has worked with local governments large
and small in places such as Tokunoshima-cho in Kagoshima Prefecture, Matsudo-shi, Hikone-shi,
Osaka-shi, Tsukuba-shi, Rikuzentakata-shi, Seto-shi, Fujisawa-shi and Shimabara-shi.

School Faculty and Staff Training
One major challenge being faced with programming education becoming compulsory in 2020 is
the lack of educators that can teach programming. CA Tech Kids is working to resolve this byoffering training to school faculty and local government staff and explaining the meaning ofcompulsory programming education. In addition, the company conducts practical training using

programming software for children to promote an understanding of the subject in faculty and staff
and help them acquire the skills needed to teach it.

1 Programming classes at local elementary schools
2 Training ground for mentoring at Tokunoshima

77

SocialGovernanceEnvironment

ESG

Research Activities

SocialGovernance1

CA Tech Kids is also conducting research activities in partnership with universities and otherresearch organizations to deal with the various challenges related to compulsory programming
education in elementar y schools. It star ted researching related curriculum standards incollaboration with Masataka Isobe laboratory at the Aichi University of Education in 2014. Since
2017, the company has also been conducting research into ways to utilize programming in othersubjects in partnership with Professor Naoki Kato laboratory at the Tokyo University of the Arts.

Through academic conference presentations, publishing and conducting open research classes,
the results of this research will be given back to society at large.

Policy Advocacy
Tomohiro Ueno, CA Tech Kids’ President, is himself involved in policy advocacy to spread anddevelop programming education in Japan. Part of his advocacy work includes serving as amember of the Ministry of Education, Culture, Sports, Science and Technology’ s “Advisory
Council on Fostering Logical Thinking, Creativity and Problem Solving and Programming

2

Education at the Elementary School Level” and its “Round Table Committee and Working Groupon Fundamental Issues Related to Computerized Education in the 2020s.”

In April 2016, he attended the “Fifth Meeting for Public-Private Dialogue Towards Investment for
the Future” and presented his views regarding programming education to Prime Minister Shinzo
Abe and other cabinet ministers and government officials. Following this, the prime minister
officially announced that programming would become compulsory in Japanese elementary
schools from 2020.

1 Research activities
2 Photograph: Public-Private Dialogue towards Investment for the Future78

http://japan.kantei.go.jp/97_abe/actions/201604/12article6.html

Environment

ESG

SocialGovernance

Information Security
As a provider that handles a lot of personal information, CyberAgent, Inc. and CyberAgent Group havevarious internal regulations, including a Privacy Policy, Information Security Policy, and Personal

Information Protection Regulations, in place and make efforts to handle and protect such information
properly. If, for example, changes are made to the policies, we will announce them promptly.

CyberAgent will make sincere efforts to enhance and improve the information security measures toensure that you can enjoy the services we provide safely and securely.

The purpose of use of personal information in the media we operate and contact information forinquiries are described in the terms of use of each media.

Information Security Policy
Construction of an Information Security Management Framework

Improvement of Constant Information Security Management

The Company strives to protect all information assets that it possesses and works to maintain and

In order to prevent information security accidents, CyberAgent conducts external system audits at

improve information security.

least once a year for all systems that have high importance, are accessible from the outside
network, hold personal information and accounting functions.

System audits are also carried out when we release a new service or update the service.

Appropriate Management of Information Assets
Information assets to be held are categorized and evaluated from the perspectives of confidentiality,

Security Training for Employees

completeness and availability, and are appropriately managed according to their risks.

The Company provides security training to employees.

CyberAgent has built a special site to transmit security information throughout the company’ sCompliance with the Law

intranet. It is working to raise all employees’ awareness by sending information and educatingthem regarding security, and releasing comics that explain the importance of security fromCyberAgent complies with laws regarding information security and other guidelines.

different points in a simple manner.

79

Environment

ESG

SocialGovernance

Information Security Measures
CyberAgent acts to reduce various risks involving information security in four areas,
Organization, People, Technology, and Office. To continue business growth, we protect our users
by enhancing our information security measures and providing reliable, safe, and secure services.

Organizational Measures
To ensure that we can respond swiftly and comprehensively to every security risk, we havean organization called “Cybersecurity Office (CyberAgent CSIRT)” which consists ofrepresentatives from each business and department such as information system, lawaffairs, public relations, internal audit, and security promotion, including two executive

officers, and we have a group-wide information security management system in place. We

also have a special security organization called “Security Promotion Group” in place, which
consists of experienced security professionals, in order to prevent information security

incidents that are changing and becoming more complex every day and ensure that we canrespond smoothly to them.

Cybersecurity Office (CyberAgent CSIRT) is a member of the Nippon CSIRT Associationand the Forum of Incident Response and Security Teams (FIRST), and realizes appropriate
incident responses working together with external organizations.

Security officers from each department gather in the Cybersecurity Office (CyberAgent CSIRT)

Human Measures
Information security system chart

To raise the awareness of information security among all employees, we collect and provide
information and enlighten them by, for example, launching a special information website

Board

publishing with content using manga to explain the importance of security in an easy tounderstand manner from various perspectives.

We also provide security education for employees using an e-learning system. We

Business Units

encourage employees to acquire the knowledge necessary for their professions byproviding content tailored to the duties of each employee, such as content for service

Headquarters Function

Internet Ad

development engineers or service planning professionals, in addition to content that helps
understand the information security basics and the Personal Information Protection Act.

MediaInternal Audit
department

SystemCybersecurity
OfficeShareinformation
Excutethe strategy

Legal(CyberAgent CSIRT)

Game

Manga
"Information Security"

80

PR

etc.

Security
Promotion
GroupEnvironment

ESG

Technical Measures

SocialPhysical Measures

Internal Systems

Service Development

OfficeData Center

We c e n t r a l l y m a n a g e t h e e m p l o y e e

Sec urit y Prom otion Group, a s p ec ial

Access to of fices is controlled with a

Our data center is equipped withconnected to the HR database, and limit

developed security guidelines on service

information security measures in place to,to ensure that personal information andaccounts with a user management system
the use of internal systems and access tothe internal net work by unauthorizedusers.

We have malware protection measures inplace, ranging from general virus protection
to advanced malware protection measuresdepending on the professions and the risk
level of the business and operation. We

always monitor the system to detect andrespond to cyberattacks from externalsources.

Governancesystem security organization, has

security card. We have enhanced

development. We have a support systemfor example, control access to rooms andfor secure service development in place,

install security cameras depending on thewhich is ready to respond to consultation

security level of information handled.

from divisions in the service planning anddesign phases.

full-fledged disaster resilience measuressystem infrastructure are managed

securely. The data center is divided into

areas from levels 1 to 7 depending on theimportance level and various measures arein place to prevent natural disasters andWe a l s o h a v e a s y s t e m t o c e n t r a l l y

avoid human risks, including controlling

manage the accounts for the development

access to the building and rooms withenvironment and manage users and rights

security staff and card authentication,for each project properly. We per form

checking devices brought in and taken

vulnerability diagnosis before releasing

out, and monitoring with multi-element

new services to solve problems that may

authentication and security cameras.

l e a d t o s e c u r i t y i n c i d e n t s . We a l s operform vulnerability diagnosis for themain services in operation once a year.

81Environment

ESG

SocialCommitment to Protect Personal Information
About Collecting Personal Information
CyberAgent, Inc. may collect the following personal information through the services we operate only
if the user provides consent. The information collected varies depending on the service, but ismanaged properly in accordance with the privacy policy and the terms of use of each service.

Personal information

Information about your mobile device

Registration information that can identify a specific individual, such as the name, email address,

Your device, OS, user agent, mobile device’s language settings, access country, etc.

date of birth, or gender of the user (including information that can identify a specific individual
when collated with other information).

Information about the communication environment
Carrier, communication environment, access area, etc.

Authentication information
Registration information that we need to authenticate access from members, such as ID andInformation about the usage

password.

Version of the service, usage history of the service, etc.

Cookies, etc.
Information necessary to identify and authenticate visitors, record the number of visits, or forother purposes, such as cookies, ad IDs, and access logs collected from users (including IP
addresses).

82

GovernanceEnvironment

ESG

SocialGovernancePurposes for Collecting Personal Information
CyberAgent, Inc. collects personal information through the services we operate mainly for thefollowing purposes.

Online user authentication

Marketing analysis

If user authentication is performed online to provide the service, we may collect information, such

We may collect the usage history of the service to analyze data for marketing purposes.

as email addresses, phone numbers, or access tokens to third-party services.

Prevention of fraud

Verification of age

We may collect the usage history of the service to prevent fraud.

If there are age restrictions when providing the service, we may collect an image of the driver’ slicense, national health insurance card, or a part or the whole of a document that certifies the age

Academic researchor date of birth in order to verify the age of the user.

We may collect the usage history of the service as fundamental data for academic research.

Delivery of goods
Other

If goods are delivered when providing the service, we may collect information, such as physicaladdresses, names, and phone numbers.

We may collect the following personal information through the service to implement functions
necessary for providing the service

Payment of rewards and withdrawal of balance· Face photo· NameIf payment of a reward or withdrawal is made when providing the service, we may collect your· Phone number

financial institution’ s account information.

· Phonebook (contact list)· Location information

Access analysis and delivery of ads· Biological information

We may issue cookies, etc. and collect information to analyze accesses and deliver ads.

Delivery of email newsletters
We may collect email addresses to deliver email newsletters.

83Environment

ESG

SocialGovernanceManagement of Personal Information

Transfer of business

CyberAgent manages personal information collected through the services we operate in the

If the business is transferred to another organization, we provide personal information only on

Access control

Other

We have an integrated ID management system in place and limit access to personal information

We may provide personal information to administrative agencies in accordance with thecondition that such information is used to ensure successful transfer.

following ways.

only to employees who must have access to carry out their operational duties. Executives andprocedures prescribed by the law.

employees who do not have access permission cannot access and view personal information.

Encryption
We encrypt communications and databases that handle personal information.

Discontinuation of Use of Personal Information

Non-retention

Cancellation

If the user cancels any of the services CyberAgent operates, we delete the personal information

We outsource the handling of credit card information to a PCI DSS compliant payment service

collected promptly.

provider to abide by the revised Installment Sales Act and enhance the security measures for
credit card transactions.

Opt-out· Delivery of email newsletters

If the user performs the cancellation procedure from the link displayed in the email body, we stopusing the email address promptly.

Provision of Personal Information
CyberAgent, Inc. may provide personal information collected through the services we operate to· Delivery of behavior targeting ads

and improve our services within the scope of the stated purpose of use.

targeting ad service provider, we stop using the personal information promptly.

If the user selects the opt-out option according to the procedure provided by the behavior

third parties, such as our outsourced providers and research institutions to provide better services

Furthermore, we stop using the personal information for the behavior targeting ads we provide

according to the procedures described below.

Outsourcing
We may provide personal information to our outsourcing providers to carry out the following

services. We review the security measures of our prospective outsourcing providers in advance

The Guidelines on Cookies, Ad IDs, Etc. in Ameba

Japanese· Delivery of email newsletters and ads

About Disabling Display Ads Using AdTech Studio Cookies

Japaneseand continue to monitor them.

· Delivery of goods· Campaign service· Development of new functions and research to prevent fraud(If personal information is provided
to research institutions for study and research purposes, it is processed in such a way that
individuals cannot be identified.)84

Environment

ESG

SocialGovernance

Safe and Sound Services
Accessibility Initiatives
CyberAgent is working to improve accessibility to web services with the aim of "ensuring access to

information and services to all users of CyberAgent services regardless of mental/physical capabilities
or environment."

CyberAgent participates as a member of the Web Accessibility Infrastructure Committee (WAIC), an
organization that promotes the understanding and widespread adoption of JIS X 8341–3, Japan's
national standard for web accessibility.

Ameba

WinTicket

We have prepared the "Ameba Accessibility Guidelines," a collection of production guidelines

We are working to improve accessibility to ensure that all users of the service can participate in

aimed at ensuring that "all users of our services can enjoy content with confidence at any time."and enjoy public competitions. As part of these enhancements, we are now pursuing partial
compliance with "JIS X8341–3 (Guidelines for older persons and persons with disabilities -Information and communications equipment, software and services - Part 3: Web content) as wellas "Single-A" of WCAG (Web Content Accessibility Guidelines) 2.0.

85

Environment

ESG

SocialGovernance

Safe and Secure Services

Media
CyberAgent is committed to sound management of all media services we operate in order to protect
underage users and to provide a safe and secure environment for all people who use our services.

24/7/365 monitoring system

Feature restrictions forunder age users

We operate a stringent 24/7/365 services monitoring system to detect and eliminate any users

Based on date-of-birth information entered at the time of registration, we have measures in place

who use the service for malicious purposes.We have also introduced a user reporting system, andto protect underage users, such as restricting communication functions or setting purchase limits.

promptly investigate anytime we receive reports of suspicious users. If we find that the a user is in

Target services: Ameba, Ameba Pigg, etc.

violation of our terms of service we take immediate action that includes issuing a warning orcanceling the user's account.

Target services: Ameba, Ameba Pigg, Tapple, etc.

Age verification with government issued ID

A monitoring system that ensures reliable delivery

For our dating app, we accept only government-issued ID to verify the age of users before they are

A new monitoring system was introduced in September 2016, and we implement 24/7 services

acceptable ID includes a Driver ‘s License, National Health Insurance Card, Employees’ Healthdisaster or emergency, we strive to continuously deliver reliable content to fulfill our role as apermitted to use services such as message exchange, contacting features, etc. Examples ofmonitoring in order to further boost the reliability of our services delivery. Also, in the event of a

Insurance Card, Mutual Aid Association Card, Pension Handbook, Passport, Alien Registration

modern information infrastructure in the era of the internet.

Certificate etc.

Target services: AbemaTV

Target services: Tapple, etc.

86

Environment

ESG

SocialGovernance

Safe and Secure Services

Advertisement
In our advertising business, CyberAgent has been focused on improving our advertising-related

compliance structure since 2017. As a leading internet advertising company, our goals are to promotesound and transparent advertising transactions, and to be an advertising agency whose customers
can feel confident in placing ads with.

Compliance Bureau
In order to improve the sales management quality of business divisions and subsidiaries

responsible for expanding our advertising business, we constantly review the administrative flow,
including checking consistency, as well as make efforts to strengthen coordination among the

ClientWe also conduct advertising reviews to ensure that the content of the ads proposed to us are in

Ad placement ordersgroup in terms of know-how and knowledge.

full compliance with laws, regulations, and JIAA (Japan Interactive Advertising Association)
guidelines, and also in line with public order and morals.

ReportingAdvertising Compliance Structure

Advertising Compliance Committee

Submission
auditing

With the goal of improving the integrity and safety of advertisements, this committee is committed
to solving problems with a cross-section of members from the Advertising Business Department

Advertising
Compliance
Committee

and Legal and Compliance Office.

The committee takes advantage of the group's collective knowledge in a variety of issues related

Compliance
BureauAd
reviews

Advertising agency
business(Including subsidiaries)
Sales
Administration Dept.
(Order management)

to advertising quality, including with measures to protect against piracy and illegal sites, ensure

Brand
Security
Centerbrand safety, and prevent ad fraud.

Brand Security Center

Anti-fraud

Ad placement

To ensure that our customers can feel confident in adver tising with us, in June 2017 weestablished the "Brand Security Center," a group dedicated to monitoring brand safety 24 hours a

Media

day 365 days a year.

CyberAgent Brand Security minimizes advertisement opportunity losses while simultaneously
preventing damage to our advertisers brand value. By doing this, CyberAgent maintains
outstanding advertising quality while pursuing maximum advertising effectiveness.

87

Ad effectivenessdata

24-hourmonitoringEnvironment

ESG

SocialGovernance

Safe and Secure Services

Game
In all games we operate, CyberAgent is committed to protecting young users, and providing fun games
in a safe and secure environment for all people who use our services.

Money spending alerts

Spending limits for minors

Money spending alerts are issued to users when the amount of money spent on in-game purchases

We limit the monthly spending amount of minors. By limiting the maximum spending amount users

has reached the amount set for each month, thereby preventing excess purchases and usage.

for age 15 or under to 5,000 yen and ages 16–19 to 10,000 yen, we protect users by ensuring thatminors are unable to spend excessive amounts* Alert amount set differs by game.

Prohibition of Real Money Trade (RMT)

Display of distribution rates (also known as "drop rates")ofeach obtainable random in-game item

In all games we provide, CyberAgent prohibits the advertising, announcing, or soliciting of RMT(Real Money Trading) with other users, as well as RMT involving the buying or selling of game IDs

In accordance with the "Operating Guidelines for Random Item Distribution in Network Games"or game items in exchange for money or anything of monetary value. If such acts are discovered,established by the Computer Entertainment Supplier's Association ("CESA"), CyberAgent displays

we will take action in accordance with each game's usage policy, including the suspended use of

the distribution rates (also known as "drop rates") of each obtainable random in-game item toall or part of a game, or cancellation of the user's account.

increase transparency. In addition, we disclose information more simply and clearly by displaying
modified distribution rates if they are modified for a special event

Thorough compliance with game related laws and regulations

In-game patrols

In order to ensure that users can enjoy games in full confidence of their safety, we haveestablished acceptable use policies for each game and also take steps to promote awareness on

CyberAgent prohibits the advertising, announcing, or soliciting of RMT (Real Money Trading) withother users, as well as RMT involving the buying or selling of game IDs or game items in exchange

our official website and in-game.

accordance with each game's usage policy, including the suspended use of all or part of a game,or cancellation of the user's account.Voluntary patrols help ensure a safe and secure gaming

Games operated in accordance with CESA's"Operating Guidelinesfor Random Item Distribution in Network Games”

unacceptable activities such as RMT, and checking whether posted comments violate rules.

Games are operated in accordance with the "Operating Guidelines for Random Item Distribution infor money or anything of monetary value. If such acts are discovered, we will take action inenvironment for all users by monitoring whether games are being operated properly, watching for

Network Games" which have been established by the CESA
Applies to:

CyberAgent, Inc., Cygames, Inc., Applibot, Inc., GCREST, Inc., Sumzap, Inc., Grenge, Inc., Griphone, Inc., Goodroid, Inc.,
Craft Egg, Inc., QualiArts, Inc. We will continue to take appropriate action as necessary for games provide

88Environment

ESG

Creating Job Opportunities

Aggressive Investmentin Talent
CyberAgent is promoting employment in rural areas through the establishment of local

subsidiaries. Offices in Okinawa and Sendai employee 818 people* who are engaged inmonitoring the c omments on our smar tphone ser vic e, Ameba, and operating internet
advertisements as part of our internet advertising business.

Since 2016, we have also been stepping up the hiring of students from regional universities.
CyberAgent has held outreach seminars, consultations, and local employment screening at

regional universities and has launched hiring activities in all 47 prefectures across Japan. Since
2017, we have also posted online videos of company information sessions.

Proactive Employment ofPersons with Disabilities
In 2007, we launched subsidiary CyberAgent Will, Inc. based on the 'Act on Employment

Promotion of Persons with Disabilities' to proactively employ persons with disabilities. Throughparticipation in joint explanatory meetings and interviews at various locales, we have enhanced
recruitment abilities and systematically expanded employment opportunities. As a result ofproactively employing disabled persons who possess high-level computer operating and technicalskills, we successfully achieved the mandatory employment rate of 2% by June 2018.We currently
employ 90 persons* with disabilities who function in a variety of roles such as data entry and otheroperational work, in-house physical therapists, etc.

* As of the end of September, 2019

Okinawa office89

SocialGovernanceEnvironment

ESG

Supporting Sports
Through its support of sports, CyberAgent aims to expand sports culture, develop human resources,
and contribute to local communities.

FootballIn October 2018, the Japan Professional Football League Club "FC Machida ZELVIA" became partof CyberAgent Group. By taking advantage of the group synergies, we aim at enhancing theinformation and services provided to supporters and winning new supporter demographics.

Going for ward, we will continue to contribute to the promotion of spor ts culture and thedevelopment of the local economy in Tokyo and Machida, working towards the goals to grow FC
Machida ZELVIA into a top club born in Machida, Tokyo and recognized around the world.

Since July 2017, Cygames, Inc., a subsidiary company of CyberAgent, has also been sponsoring
Juventus F.C.(Juventus Football Club S.P.A.), an Italian pro soccer league that plays in Serie A.

FC Machida ZELVIA

90

SocialGovernanceEnvironment

ESG

Mahjong
CyberAgent formed a company team, the Shibuya Abemas, to join in the M.League* season that
opened in October 2018. In its first year, the team finished second in the regular season andfinished the season in third place after the finals. We will remain active in the M.League to raise
the social standing of mahjong, spread recognition and win new fans.

* The M.League is an organization whose purpose is to promote competitive mahjong in Japan, make the game more wholesome,and to popularize and develop the sport. Although people across the country are familiar with mahjong and there are reportedly

thousands of pro mahjong players who belong to professional organizations, the strong association with gambling and the complex
rules are part of the reason why mahjong's social standing has not improved. However, mahjong was recognized by the International
Mind Sports Association in April 2017. This led to the appearance of numerous online mahjong games whose popularity has spreadamong senior citizens as a way to ward off dementia. It's an example of how mahjong is gaining recognition as a mind sport forpeople of all ages to enjoy.

SHIBUYA ABEMAS

91

SocialGovernanceEnvironmentESG

DDT Pro-Wrestling
DDT Pro-Wrestling marked its 20th year in 2017. The professional wrestling organization has

grown its fanbase with compelling wrestlers and by performing Rojo (Street) Pro-Wrestling insteadof using traditional rings. DDT is a fine example of what independent wrestling can achieve. On
September 1, 2017, CyberAgent acquired all the issued shares of DDT Pro-Wrestling stock.

The year-round calendar of DDT events, including DDT group events by Pro-Wrestling Basara,

Tokyo Joshi Pro-Wrestling and Ganbare Pro-Wrestling, are aired on AbemaTV. Original programs
are also shown on AbemaTV to take advantage of the uniqueness of Rojo (Street) Pro-Wrestling.
These broadcasts offer enjoyable content for a wide-ranging audience, from long-time pro
wrestling fans to newcomers to the sport.

DDT Pro-Wrestling event poster

92

SocialGovernanceGOVERNANCE

Governance
Under our vision “To create the 21st century's leading company,”
CyberAgent re gards corporate governance as a key issue inachieving sustainable expansion of the business. While conducting
corporate activities based on rules that include legislation, social
norms, ethics etc., in October 2017, we transferred our corporate
governance to a company with an audit committee in an aim to
improve the effectiveness of the Board of Directors. We have been
making efforts to further enhance the supervisory functions,transparency and fairness of the Board of Directors, including by
the appointment of three external directors and one female director.

93Environment

GOVERNANCE

SocialGovernance

Outline of the Corporate Governance Structure

Corporate governance structure

Company with Audit and Supervisory Committee

Number of directors on the board(Outside directors)

15（3）Directors who are Audit and Supervisorycommittee member (Outside directors)

3（2）Executive Officer System

None

Standards for appointment andindependence of outside directors

Conforms to Tokyo Stock Exchange's "Practical
Considerations when Appointing Independent
Directors/Auditors"

Introduction of measures to prevent
takeover bids

None

Strategic Shareholdings

Corporate Governance structure
Shareholders' Meeting
Appointment
and removal

Company Attorney etc.

https://www.cyberagent.co.jp/files/user/pdf/w
ay/governance/cg/cgr_en.pdf

Accounting Auditor

Deloitte Touche Tohmatsu LLC

Accounting Auditor
Accounting audit

AdviceNomination andConsultation
Remuneration
Advisory Committee
ReportBoard of Full-time
Directors' meeting
11 Executive Directors,
1 Audit and Supervisory
Committee member

The Company may own "Strategic Shareholdings" if,for instance, it is expecting to strengthen businesscollaboration. The execution of voting rights ofstrategic shareholdings shall be handledappropriately based on careful review of proposal
content.

Corporate Governance Report

Appointment
and removal

Delegationof authority

Audit of internal control

Board of Directors
Directors
12 Directors who are not
Audit and Supervisory
Committee members, ofwhich 1 is Outside Director

Audit,
supervision

Audit andSupervisory Committee
3 Directors who are Audit
and Supervisory Committee
members, of which 2 are
Outside Director

ReportAppointment,
instruction
and supervision

Instruction andsupervisionInternal Audit OfficeInternal audit,
Internal control
Assesment

President / CEO
Instruction
and supervision
Business Division,
Subsidiaries

94

Instruction
and supervision
Business Division,
Subsidiaries

Instruction
and supervision

Instruction
and supervision
Business Division,
Subsidiaries

Environment

ESG

SocialGovernanceDirectors
Susumu Fujita

Go Nakayama

25,909,600
13/13（100%）

President and CEO, Overall Management363,676

Managing Director, Company-wide Function

Apr. 1997

Joined Intelligence, Ltd. (Present: PERSOL CAREER CO., LTD.)

Apr. 1998

Joined Sumitomo Corporation.

Mar. 1998

Founded CyberAgent, Inc. President.

Aug. 1999

Joined CyberAgent, Inc.

Jun. 2012

Vice Representative Director, The Japan Association of New Economy (JANE)

Dec. 2003

Director, CyberAgent, Inc.

Apr. 2015

President, AbemaTV, Inc.

Apr. 2006

Managing Director, CyberAgent, Inc.

current position

current position

Yusuke Hidaka

55,715
12/13（92.3%）

Managing Director, Media Business

Apr. 1997

Joined Intelligence, Ltd. (Present: PERSOL CAREER CO., LTD.)

Jul. 2001

Joined CyberAgent, Inc.

Mar. 1998

Founded CyberAgent, Inc. Managing Director.

Dec. 2012

Director, CyberAgent, Inc.

Oct. 2010

Vice President, CyberAgent, Inc.

Dec. 2014

Managing Director, CyberAgent, Inc.

May 2011

Director, Cygames, Inc.

Jul. 2016

Director of AbemaTV, Inc.

current position

current position

Yasuo Okamoto

current position

current position

Takahiro Yamauchi

90,60012/13（92.3%）

Executive Managing Director, Internet Advertisement Businesscurrent position

Masahide Koike

850,600
13/13（100%）Vice President, Game Business

13/13（100%）

25,857

13/13（100%）

Managing Director, Internet Advertisement Business

Apr. 2000

Joined CyberAgent, Inc.

Apr. 2006

Dec. 2008

Director, CyberAgent, Inc.

Apr. 2009

Representative Director, CyberZ, Inc.

Oct. 2010

Managing Director, CyberAgent, Inc.

Dec. 2012

Director, CyberAgent, Inc.

Dec. 2014

Executive Managing Director, CyberAgent, Inc.

Oct. 2018

Managing Director, CyberAgent, Inc.

current position* Name, Title, Managing Division (as of December 13, 2019) * Number of shares hold (as of the end of September 2019) * Board meeting attendance95

Joined CyberAgent, Inc.
current position

current position

Environment

ESG

Koki Ukita
Apr. 2011

Joined CyberAgent, Inc.

Apr. 2014

Representative Director, Applibot, Inc.

Dec. 2016

Director, CyberAgent, Inc.

current position

Apr. 2000

Joined NTT Software Corporation (present: NTT TechnoCross Corporation)

Aug. 2005

Joined CyberAgent, Inc.

Jan. 2018

General Manager, Technical Development DivisionDec. 2018

Director, CyberAgent, Inc.

current position

current position

Riku Yamada

112,373
13/13（100%）

Director, Human Resources

3,255
11/11（100% ）*Director, Technical Development Division

current position

Tetsuhito Soyama

Governance

Norishige Nagase

6,407
13/13（100%）

Director, Game BusinessSocial3,000
11/11（100% ）*Director, AbemaTV Advertising

Apr. 1998

Joined Isetan Co., Ltd. (present: Isetan Mitsukoshi Holdings, Ltd.)

Apr. 2011

Joined CyberAgent, Inc.

Apr. 1999

Joined CyberAgent, Inc.

Oct. 2015

Corporate Officer, CyberAgent, Inc.

Dec. 2008

Director, CyberAgent, Inc.

Oct. 2017

General Manager of Advertisement Hq. of AbemaTV, Inc.

Dec. 2016

Director, CyberAgent, Inc.

Dec. 2018

Director, CyberAgent, Inc.

current position

Takahito Naito

Toko Shiotsuki

75,585

11/11（100% ）*Director, AI, Creativity, Ad Operations

9,600

Director, Full-time Audit and Supervisory Committee member

Apr. 2001

Joined CyberAgent, Inc.

Apr. 1996

Oct. 2010

Director, CyberAgent, Inc.

Oct. 1999

Passed the second part of the CPA examination.

Oct. 2014

General Manager of AdTech Business Hq. (present: AI Business Unit)

Jul. 2000

Standing Corporate Auditor, CyberAgent, Inc.

Dec. 2018

Director, CyberAgent, Inc.

current position

Dec. 2017
current position* Name, Title, Managing Division (as of December 13, 2019) * Number of shares hold (as of the end of September 2019) * Board meeting attendance96

Joined Japan Airlines Co., Ltd.

Director serving on the Audit and Supervisory Committee ,CyberAgent, Inc.

current position

current position

current position

13/13（100%）

Environment

ESG

SocialGovernanceOutside Directors
Koichi Nakamura

Reason for the appointment of outside directors

2,240

Independent

13/13（100%）

Outside Director

The Company has nominated Koichi Nakamura as a candidate for an outside director because he has

provided practical and objective indications regarding overall management and supervision of business

Apr. 2008

Director and Vice President , Recruit Co., Ltd.(present: Recruit Holdings Co., Ltd.)

Apr. 2012

Director and Advisor, Recruit Co., Ltd. (present: Recruit Holdings Co., Ltd.)

Jun. 2014

Resigned Director and Advisor, Recruit Holdings Co., Ltd.

Dec. 2016

Outside Director, CyberAgent, Inc.

execution from a third party perspective when making decisions at the board of directors. He also

provides a number of useful advices on the use of human assets, which we value, and contributes to our
corporate value enhancement. He has contributed to business development for many years at Japan

Recruit Center Co., Ltd. (currently Recruit Holdings Co., Ltd.). He served as a director and vice president

current positionof the company, and has vast experience and broad insight into business promotion and corporate
management.

Masao Horiuchi

Reason for the appointment of outside directors

45,200Independent

13/13（100%）

Outside Director, Audit and Supervisory Committee member

The Company has nominated Masao Horiuchi as a candidate for a Director serving on the Audit andSupervisory Committee. Because since he took office as an Outside Director of the Company inDecember 2017, he has raised frank discussions with management regarding possible risks based on his

Apr. 1995

Joined Intelligence, Ltd. (Present: PERSOL CAREER CO., LTD.)

Mar. 1998

Outside Auditor, CyberAgent, Inc.

May 2010

Certified Public Tax Accountant

Jul. 2017

Corporate Auditor, U-NEXT Co., Ltd. (Present: USEN-NEXT HOLDINGS, Co., Ltd.)

wide experience and insight and offered advice on strengthening internal control and corporate

governance. Going forward, we continue to expect him to supervise the Board of Directors from an

independent standpoint when making decisions. He has been responsible for corporate management
departments and internal controls for many years, and has extensive experience and wide insights

current position

Dec. 2017

regarding internal control and corporate governance as a director of U-NEXT Co., Ltd. (currently

Outside Director serving on the Audit and Supervisory Committee, CyberAgent, Inc.
current position

USEN-NEXT HOLDINGS Co., Ltd.). He is a certified tax accountant and has specialized knowledge infinance, accounting and tax.

Isao Numata

Reason for the appointment of outside directors

64,708

Independent

13/13（100%）

Outside Director, Audit and Supervisory Committee member

The Company has nominated Isao Numata as a candidate for a Director serving on the Audit andSupervisory Committee because since taking office as an outside director of the Company, he has
Apr. 1988

Joined Daiwa Securities Co., Ltd. (present: Daiwa Securities Group Inc.)

Jul. 2000

Representative Director, Five Eyes Networks Co., Ltd.

Dec. 2000

Outside Auditor, CyberAgent, Inc.

Dec. 2009

Representative Director, SBL Co., Ltd.

Dec. 2017

Outside Director serving on the Audit and Supervisory Committee, CyberAgent, Inc.

exchanged extensive discussions from various perspectives, and provided advice based on an abundant
information network. Based on these contributions, we continue to expect him to give appropriate

current position

supervision from an independent standpoint when making decisions at the Board of Directors. He has

run a consulting company for many years to support public offering and overseas operations. He has broad

current position

experience and deep insights regarding corporate management, stock markets, and foreign markets.

current position* Name, Title (as of December 13, 2019) * Number of shares hold (as of the end of September 2019) * Board meeting attendance * Independent directors: Independent directors pursuant to the provisions of the Tokyo Stock Exchange. * Independent directors: Independent directors pursuant to
the provisions of the Tokyo Stock Exchange. * Directors, directors who are member of the Audit and Supervisory Committee, and the Company do not share any special interests.

97

Environment

ESG

SocialGovernance

Board of Directors and Audit and Supervisory Committee

Board of Directors
The Board consists of 15 directors including 3 outside directors
The Board meets regularly once a month and also holds unscheduled meetings
whenever necessary
Meetings in 2019: 13

Audit and Supervisory Committee
Directors who are members of the Audit Committee attend Board of Director meetings and other important
meetings to audit and supervise the legality and appropriateness of the directors' business execution.
As necessary, the Audit and Supervisory Committee receives reports or explanations from company
executives and employees, and implements surveys etc. of major subsidiaries or workplaces.
The committee meets regularly once a month and holds unscheduled meetings whenever necessary.
13 meetings were held in 2019

Analysis and Evaluation ofBoard of Director Effectiveness
A questionnaire on effectiveness of the Board of Directors was conducted on
end of september, 2019, which evaluated directors (including those currently

Structure of the Audit and Supervisory Committee
Audit and Supervisory
Committee Attendanceserving as Audit and Supervisory Committee Members). With regard to thenumber of times the Board of Directors convened as well as scope, quantity
and content of recommendations presented, the questionnaire found that

there were no indications of problems and sufficient time was set aside fordeliberation. The questionnaire also found that directors have an appropriate

decision making process which is rooted in discussions that consider budget,earnings outlook, risk of impact on business or management, etc., and that13 /13 (100% )Toko Shiotsuki

Full time member of Audit and Supervisory Committee

Masao Horiuchi

Outside Director of Audit and Supervisory Committee

OutsideIndependent

13 /13 (100% )Isao Numata

Outside Director of Audit and Supervisory Committee

OutsideIndependent

13 /13 (100% )the board strives to improve corporate value, selection and concentration,a n d b u s i n e s s ex p a n s i o n n o t o n l y t h e d i r e c t o r s' s p e c i f i c r e a l m o f
responsibility, but also across the entire company.

98

Environment

ESG

SocialDirector Compensation

Policy for directors' compensation decisions

Amount of remuneration for directors and auditors

W i t h i n t h e re m un e rat i o n l i m i t a p p r ove d at t h e g e n era l m e et i n g ofshareholder s , the B oard of Direc tor s c onsults the Nomination andNumber ofissued members

Amount ofcompensation

12457 million yen（1）

15 million yen

3

18 million yen（Outside）（2）

7 million yen

Total

15

476 million yen（3）

23 million yen

Classification

Remuneration Advisory Committee on the amount of remuneration for eachdirector (excluding directors who are Audit and Supervisory Committee

Director who is NOT the Audit andSupervisory committee members

members) , and determined based on the content of the report.

（Outside）

Establishment of Nomination andRemuneration Advisory Committee

Director who IS the Audit andSupervisory committee members

The Company established a Nomination and Remuneration Advisory

Committee as the Board of Directors' optional advisory committee. Thec ommit tee m ostly c onsists of In dep en dent O uts i de Direc tor s tostrengthen in dep en denc e an d objec tivit y of the n omination an dremuneration function of the Board of Directors, and further enhancing
corporate governance.

（Outside）

stock option system
Stock options are granted based on CyberAgent's consolidated sales

with the objective of further boosting the motivation and morale, raising
corporate value, and further strengthening corporate management.

* The amount of remuneration for Directors include the amount of expenses (79 million yen)during this fiscal year related to the stock acquisition rights granted as stock options.

99

GovernanceEnvironment

ESG

SocialManagement Transparency

Basic policy for information disclosure
CyberAgent strives to provide prompt information to shareholders and investors based on

CyberAgent
Official Facebook

transparency and fairness. We are also dedicated to timely and proactive disclosure ofCyberAgent
Official Twitter

information in accordance with the Financial Instruments and Exchange Act and Tokyo StockE xchange timely disclosure rules, as well as information we deem valid for bet ter
understanding the company.

Initiatives to General Meeting of Shareholders
We are accelerating the delivery of convocation notices to ensure that our shareholders havesufficient time to review the agenda. Convocation notices are sent out at least one week prior
to the statutory date (at least three weeks before the General Meeting of Shareholders). In

President, Susumu Fujita
Official Twitter

addition, before notices are sent out, their Japanese and English versions are posted on

CyberAgent ‘s corporate website, on the Tokyo stock exchange website, and also on theelectronic voting platform for rights holders. Exercise of voting rights through the internet has
been available since 2007. CyberAgent sets shareholders’ meetings in December by avoiding
dates crowded with other company shareholder meetings so that as many shareholders as
possible can attend. The 22nd annual General Meeting of Shareholders was held on

December 13, 2019. A business report video on the first part General Meeting of Shareholders
as well as scenes from the second part Company Information Session are available to view on
the corporate website.

100

Director, Tetsuhito Soyama
Official Twitter

GovernanceEnvironment

ESG

SocialList of Corporate Officers

Hiroyuki Ishii

Yuko Ishida

Eiji Koike

Takunori Fujii

Masato Sato

Senior Corporate Officer
Internet Advertising Headquarters

Corporate Officer
Human Resources DivisionCorporate Officer
Internet Advertising Headquarters

Corporate Officer
AbemaTV, Inc.

Corporate Officer
Systems Department

Yosuke Sato

Takehiro Takeda

Tatsuhiko Taniguchi

Gaku Miyata

Corporate Officer
Creative Development DivisionCorporate Officer
Human Resources DivisionCorporate Officer
AbemaTV, Inc.

Corporate Officer
Internet Advertising Headquarters* As end of september, 2019101

GovernanceEnvironment

ESG

Internal Control
CyberAgent is making system enhancements to the IT internal control system and building an

operations monitoring system in order to realize sustainable growth for the group as a whole.By

responding flexibly to fast-paced changes in the business environment, we are committing the effort
necessary to maintain and improve the quality of our business operations.

Internal Control System

Board of Directors

Monitoring

Audit andSupervisory Committee

Recommendations

Risk Management

Risk Monitoring(Risk Owner)

Risk Monitoring
Business Division

Legal Compliance Office

Each Subsidiary

Financial
Accounting Office
Human Resources
and Compliance Office
Security GroupInternal auditing and monitoring

102

Internal auditing
and monitoring

ReportEffectiveness
Assessment
Internal Audit OfficeSocialGovernanceEnvironment

ESG

SocialGovernanceRisk Factors
The following passages will describe major possible risk factors related to the business operation of
our Group. In addition, the items that are not related to the risk factors, but considered important forinvestment judgment will be mentioned below, from the viewpoint of proactively disclosing information
to investors. CyberAgent will recognize these risks, and implement some measures for avoiding or
coping with these risks.

Business trend

for Youth’s Safe and Secure Internet Use, the Payment Services Act, and the Food Sanitation Act,and procedures and guidelines from supervisory government agencies. There may be changes to

If there emerges a hindrance to the growth of the Internet, game markets or if business confidence

royalties paid to copyright organizations or holders of neighboring rights or the terms andworsens, and affecting the Internet ad market, our business performance and financial standing

conditions of licenses on music copyright, or new licensing other than the music copyright may be

may be affected.

necessary. CyberAgent’ s business may be subject to new restrictions, and business performanceand future business expansion may be impacted as a result of the enactment or revision of rules
and regulations, or the formulation or revision of new guidelines or voluntary-regulatory rules. In

Fluctuations in business performance

addition, third parties who have suffered damage or loss from illegal acts within our services may

Earnings forecast is based on management’ s assumptions and it should be noted that thefile lawsuits against us as the service operator to claim damages.

accuracy of information is not guaranteed. Changes in unforeseen factors could cause actual
results to differ materially. Also, if accounting standards or taxation systems are changed

Internal control systems

considerably, it may affect our business performance and financial condition of CyberAgent.

CyberAgent takes various measures for maximizing the value of each group company, whileconsidering that our important managerial mission is to enrich our corporate governance.

Legal regulations

However, if the development of sufficient internal control systems cannot keep up with the rapid

CyberAgent’ s field of business is regulated by various laws and regulations, such as the Act on

expansion of our businesses, etc., it may become difficult to operate our businesses appropriately,

the Limitation of Liability for Damages of Specified Telecommunications Service Providers and theaffect the business performance and financial standing of CyberAgent.

Right to Demand Disclosure of Identification Information of the Senders, the Act on Prohibition of
Unauthorized Computer Access, the Consumer Contract Act, the Act Against Unjustifiable

Premiums and Misleading Representations, the Act on Specified Commercial Transactions, theAct on the Protection of Personal Information, the Act on Establishment of Enhanced Environment

103

Environment

ESG

Risks accompanying the dependenceon specific management and recruitment

SocialGovernanceon the content of the intellectual property rights held by the third party, extensive funds and time

may be required until that situation is resolved, and CyberAgent Group’ s performance and future

If it becomes difficult to secure personal or if as represented by board members, including thebusiness expansion may be impacted.

president or executive who has technical knowledge, skills, or experiences resigns or retires forsome reason and there are no successors, the business performance and financial standing ofCyberAgent may be affected.

Risks related to natural disasters
If there is an event such as a natural disaster (including an earthquake or a typhoon), or a terrorist

Information security, communication network, and system

attack, CyberAgent’s business may be greatly impacted or fall into a state of confusion. If there isa natural disaster or similar event, CyberAgent will make efforts to appropriately and promptly

There are risks of the leakage of important data, the unauthorized falsification of computer

carry out emergency measures or restoration measures. However, we do not guarantee that the

programs and system failure due to such occurrences as remarked below. Defect in computer

impact of any interruption to or termination of the computer system due to a natural disaster orsystems, deterioration in existing securit y measure, malware or c omputer viruses, ansimilar event can be completely prevented, and business activities may be impacted, our brandunauthorized access to computer networks, an error of executive, employee, or business partner,

image may be harmed, or there may be physical or damage injury as a result of that event.

natural disaster and temporary overload by the increase of access. It may result in a third party’ s

Further, our base and the computer network infrastructure are concentrated in a certain areaclaim for damages, fallen credibility of CyberAgent, and affecting the business performance andaccording to the services. Therefore, if a natural disaster or similar event occurs at that location,

financial condition of CyberAgent.

there may be significant damage and our performance and future business expansion may be
impacted.

Risks from managing personal information
Risks in future business operation

CyberAgent holds personal information obtained through businesses such as our internet media
business, and manages that information in keeping with the Privacy Policy prepared in

The business model of CyberAgent has contact points with both internet users and advertisers. In

accordance with the Act on the Protection of Personal Information. If personal information isorder to expand our business in rapidly growing internet industry, we need to bear additional

leaked or an issue arises in the process of collecting personal information due to events such as ainvestment in recruiting new personnel, improving equipment, developing businesses, etc. and it

computer system defect, compromised existing security measures, malware or a computer virus,

would take some time to earn stable profits from these businesses. In addition, our profitability

unauthorized access of a computer from an outside source, an error by an executive, employee, or

may decline due to price-cutting competitions and the cost for increasing users will augment forbusiness partner, natural disaster, or sudden mass network access, CyberAgent may incur

gaining an advantage over competitors.Moreover, when operating overseas businesses, we may

damage due to a claim against us or a deterioration of trust in CyberAgent, or our businessnot be able to cope with potential risks regarding the laws, regulations, politics, social situations,performance and financial standing may be impacted.

exchange rate fluctuations, and competitive environments in respective countries. Since

CyberAgent offers Internet media services targeted at general consumers, CyberAgent may suffer
an unexpected reputational damage. This would degrade our brand image, and affect our

Risks related to intellectual property rights

business performance.

CyberAgent makes efforts to protect our intellectual property rights that accompany technologicalinnovations in the internet industry and the expansion of our intellectual property rights business,

Risks in the Internet media and game businessand reinforces awareness of our intellectual property rights and our internal management structureso that our officers and employees do not violate third party intellectual property rights. However, if

We operate a wide array of contents and services on the internet, including “AbemaTV,” blogs,

a third party files a lawsuit against CyberAgent Group regarding intellectual property rightsocial media, games, videos, music, and informative websites. We plan to increase and retain

infringement or CyberAgent Group receives a claim to stop using the intellectual properties basedusers, by developing new contents, enriching the functions of existing services, stabilizing our104

Environment

ESG

SocialGovernance

Risks related to the EC businessbusiness operation, and so on. However, if we cannot offer attractive contents and services liked
by a broad range of users, the business per formance and future business operation of

As CyberAgent operates E-commerce businesses, we manage product control systems, and sign

CyberAgent may be affected.

contracts with suppliers thoroughly, but if the product we sold goes against the law or has defects,
producing problems of safety, etc., we may become liable for damages.

Our company takes various measures when necessary, for the purpose of promoting the sounddevelopment of markets related to the usage of games incorporate with industry groups. However,
if system adjustment and improvement or an unexpected event occurs, the business performance

Risks related to sporting businessand future business operation of CyberAgent may be affected. Our Internet media business offers
ser vices in accordance with the contracts with the card companies, platform operators,

CyberAgent carries out sporting business, including the operation of sporting exhibits and events,

telecommunications carriers, etc. If there are changes in technical specifications, revisions toand in the case of sporting exhibits, there may be an accident due to attendance by a large

contracts, cancellation of contracts, or other unexpected events, the business performance andnumber of spectators. The necessary prevention measures are taken, but CyberAgent Group’ s

future business operation of CyberAgent may be affected.

performance may be impacted due to incidents of liability for damages or a loss of confidence.

Risks in the Internet advertising and Ad Tech Businesses

Risks related to M&As

The Internet Advertisement Business may be affected by business trends, including the reduction

CyberAgent attaches great importance to diversification of earnings through entry into andof Ad costs by advertisers. In addition, we may have to fulfill the obligation to pay additional Ad

strengthening of business peripheral to “AbemaTV,” and entry into and strengthening of newfees to the media because of the worsening the financial standings of advertisers, the wrong

business fields, such as business that utilizes resources and know-how of existing business. One

distribution of Ads etc. If we become unable to procure ad spaces or products due to themethod to achieve that is to strengthen investments and lending, including M&As. The target

discontinuance of transactions with media firms or if the conditions for transactions are changed,

business is investigated in detail beforehand as much as possible, and once the risk is sufficiently

or if our profitability decline due to an intensifying price-cutting competitions , the businessconsidered, the M&A is proceeded with. However, if there are issues in the prior investigation,

performance of CyberAgent may be affected.

such as being unable to ascertain unrecognized debt or contingent liability post-acquisition, or
post-acquisition business expansions do not proceed as planned, CyberAgent’ s performance,

In the Ad Technology, if new technologies or methods for advertisement are invented, thefinancial standing, and future business expansion may be impacted. In addition, if new areas ofcompetitiveness of services we offer may decline considerably. the As for the advertising utilizing

business are added to our group through M&A or similar means, risk factors specific to thosead technology for smart devices, there are possibilities that the changes to the regulations,businesses will be taken on by CyberAgent.

guidelines for the providers of OS for smart devices and its functions will affect the businessperformance and future business operation of CyberAgent.

Risks related to food and beverage business
Risks related to investment development business

CyberAgent operates restaurants and has thorough quality control and hygiene management.
However, if a food related incident arises due to certain circumstances, CyberAgent Group’ s

Public companies that we invest in may see a decrease in the gain on valuation or an increase inperformance may be impacted due to incidents of liability for damages or a loss of confidence.

the loss on valuation due to share price trends. In addition, investments may not be collectible due
to future performance by the companies that we have invested in, and CyberAgent Group’ s profit
and loss may be impacted. Unlisted companies may experience a deterioration in performancedue to uncertain factors in the future, and CyberAgent’ s performance, financial standing, andfuture business expansion may be impacted.

105

ESG

Environment

SocialGovernance

Ethical Business Guideline

Objective

This guideline based on the “Mission Statement (the Code of Conduct of CyberAgent)” provides the basic conduct to be observed by the
directors, employees (including part-time and temporary employees) and all those who are involved in our company’ s business, such as

outsourcees engaging in business activities, so that the standing of stakeholders are respected and our company is able to fulfill its social
obligations as a corporation.

Social Obligations

We shall take the following matters into consideration in developing/offering services and products.
（１）We will develop and offer services and products that are useful for society while recognizing the diversifying needs of consumers and customers.
（２）We will ensure that our services and products meet the safety and quality level.

（３）We will offer appropriate information regarding our services and products to consumers and customers.
（４）We will respond in good faith to questions, etc. from consumers and customers.

（５）We will protect the personal/customer information appropriately, in accordance with our provisions for protecting personal information.

Fair Trading

We are committed to fair, transparent and free competition as well as appropriate trading. In addition, we will maintain a healthy and normal
relationship with politics and governmental authorities. Simultaneously, we will build an in-house structure that promotes and secures thecompliance with the law, while raising the awareness of our directors and employees in regard to the Antimonopoly Law.

Protecting the Intellectual Properties

We will manage the secret information of our company and respect and protect the intellectual properties of third parties and ours.

Disclosure of Corporate Information

In consideration of the following matters, we shall communicate with society broadly, and disclose corporate information actively and fairly.
（１）We will offer accurate information to shareholders, investors, and others and promote communication with them through shareholders’meetings and investor relations (IR) activities.

（２）We will comply with the laws and regulations regarding the prevention of insider trading in accordance with our provisions for insider
information management.

（３）We will disclose timely and appropriate information to stakeholders through public relations etc.

106

ESG

Respect for Human Rights

Environment

SocialGovernanceIn consideration of the following matters, we are committed to respect the diversity, personality and individuality of our employees, and tosecure a safe and comfortable working environment.

（１）We will promote good work-life balance and produce a personnel and treatment system that enables diverse human resources to work with us.
（２）We will eliminate discrimination in employment and treatment, and work towards equal employment opportunities.
（３）We will prevent accidents at workplaces and support the employees’ health promotion.

（４）To respect the individuality of our employees and provide support so that they can develop their career and potential abilities.

（５）We will engage ourselves in dialogues and discussions, in good faith, with our employees directly or with the representatives of the employees.
（６）We will strictly forbid child labor and forced labor.

Address Anti Social Forces

We will resolutely oppose to antisocial forces and organizations that pose a threat to the order and safety of civil society in order to prevent

International Business Operation

We will adhere to international rules and local laws as well as respect local culture and customs in international business activities.

Management Leadership

In consideration of the following matters, our directors will recognize that it is their duty to embody the spirit of this guideline, and diffuse it

damages.

among the group companies. They will also maintain the effective company structure, and disseminate our corporate ethics fully.
（１）Our directors will do our utmost to demonstrate leadership to clarify our “Vision” .

（２）Our directors will manifest our basic stance on our “Vision” and “Mission Statement” to the outside, and disclose the information
regarding the practical efforts towards them.

（３）Our directors will build a company-wide system to work towards corporate ethics.

Contribution to Sustainable Society

We centered on our core businesses, will collaborate with various stakeholders of our company to contribute to the realization of asustainable society by responding to social issues.

107

ESG

Environment

SocialGovernanceCompliance
CyberAgent has established the item, “a highly moral company that thoroughly complies with the law,”
in relation to complying with its Mission Statement, and strives to act with strong ethics andresponsibility. Moreover, CyberAgent continues to provide a necessary training and environment tocomply with laws.

Compliance Framework

Initiatives to Educate and Diffuse Compliance

CyberAgent rebuilt the Legal Office which was used until 2016 into the Legal

Implementation ofa Compliance Workshop

and Compliance Office to carry out compliance duties. The office has been
providing compliance education and ensured it has been diffused in alldivisions of the company. They have been setting up a framework thatenables business operations imbued with strong ethics by implementing

required measures in establishing a compliance framework for the entire

company group and regularly holding specialized compliance workshops

A compliance workshop is implemented at the moment new graduates or mid-career employees join thecompany. In addition, we regularly provide workshops to improve knowledge and awareness regarding

compliance. For example, we offer additional education about the Law for Preventing Unjustifiable Extra or

Unexpected Benefit and Misleading Representation, Infrastructure Security, etc. according to the characteristics
of each division and trends.

necessary to the duties in each division.

e-Learning
CyberAgent has built an intranet e-learning system to deepen understanding and diffusion of the training fromcompliance workshops. The system enables employees to test themselves in 10 or more categories such as
Personal Data Protection or Insider Training at any time.

HotlineCyberAgent has put in place a system in which company directors or employees can notify a support desk
(internal notification system) or ask for guidance anonymously should they discover a compliance violation.

108

Environment

ESG

SocialGovernance

Investor Relations Activities
CyberAgent promotes understanding of its management policies and business strategies on its

investor relations website through information disclosure, conference participation, and interviews
with institutional investors. In May 2019, it was adopted the S&P Japan 500 ESG and has now been

included in a total of seven indexes including ESG indexes. Recognizing the importance of disclosing
information, CyberAgent is dedicated to continuing to improve its IR activities.

FY2019 Summary of Activities
The number of institutional investors
we met at the individual meetings

Inclusion in Indexes
We are newly ad ded to the S&P Japan 5 0 0 ESG, b ein g par t of s even in dexes inc ludin g t wo ESG

866 people

Earnings presentations

4 times

Overseas roadshows

1 timeindexes in total.

2014

JPX-Nikkei Index 400

2015

FTSE All-World Index

2017

MSCI Japan Empowering Women Index *

2018

2019

* ESG index

109

MSCI Japan Index
Included in the 225 stocks that make up the Nikkei Stock Average
S&P Japan 500 ESG *Japan New Economy Index

ESG

Environment

SocialGovernance

IR Awards

IR Awards

The All-Japan Executive Team 2019

We are recognized in the five categories, including the “Most Honored Company”
in the Gaming & Internet sector.

Most Honored Companies

Gaming & Internet sector - earned the first place for the second consecutive years

Best CEO

Second place - Susumu Fujita – named top-two for the third consecutive years

Best IR Professional

Second place - Sonoko Miyakawa – Sell Side and Buy side ranking(among top-three for the seventh consecutive years)

Best IR Professional

First place - Sonoko Miyakawa – Sell Side ranking

Best IR Company

Second place - Sell Side ranking

The 40th Japan BtoB Advertising Awards
hosted by Japan BtoB Advertising Association.

Our integrated report“CyberAgent Way 2018” hadawarded Silver in Corporate
Activity Report category.

Our integrated report “CyberAgent Way 2018” had awarded Silver in
Corporate Activity Report category.

110

The 40th Japan BtoB Advertising Awards
hosted by Japan BtoB Advertising Association.

Environment

ESG

SocialGovernance

Strengthening Communication with Our Investor Website
We strengthened communication with the corporate site by utilizing owned media and ensuring thatvisuals are compatible for display on all types of devices. We also proactively use social media toregularly provide earnings and financial information, as well as information on other subjects such astechnological capabilities, competitive advantage, governance, empowering women and more, in aqualitative manner .

「IR Channel」

Owned Media「FEATUReS」

Go to IR Channel

Since 2016, we have released over 20 videos providing content for shareholders and

Go to FEATUReSFEATUReS delivers articles on our distinctive systems, culture, social contribution and more.

investors.

Episode 21"5 Ways to Use AbemaTV"

Episode 19"The ABCs of CyberAgent"

A mobile 3D CG scanning car seen on video.
It produces ad creatives and manages ads with a large,
assorted array of AI and CG.

Three ways newcomers to mahjong can enjoy the
M.League for professional mahjong

Episode 17"The Rise of Esports in Japan"

Episode 12"High Market Share Proves Our Ad Operations Capability"

The "Think Outside the Box" breaking news on theAbemaNews Channel has solidified Abema's position in
the market.

Developing the IT professionals of the future

111

Environment

ESG

SocialGovernance

Disclosure Policy

Basic policy for disclosure

Forward-looking statements

CyberAgent, Inc. (hereinafter called “ the company” ) will swiftly provide shareholders andThis website and other items the company publishesmay contain forward-looking statements suchinvestors with information while emphasizing transparency, fairness. The company will disclose

as business forecasts that made based upon the information currently available which involves

information under the timely disclosure regulations specified by the Financial Instruments andrisks and uncertainties. There can be no assurance that forward-looking statements will prove to

Exchange Act and the Tokyo Stock Exchange. At the same time, the company provides prompt

be accurate or achieved, as actual results may differ materially from those anticipated in suchand proactive disclosure of material information which is not subject to the timely disclosurestatements.

regulations, that could influence the investment decisions of investors.

Quiet Period
The company specifies the two weeks until the release of financial results as a quiet period to

Method fordisclosing information

prevent earnings information leakage and secure fairness. In this period, the company refrains

Information which is subject to the timely disclosure regulations will be disclosed on the website offrom answering questions regarding our results and giving relevant comments, except the caseregulations. The released information will be uploaded to the IR website of the company. The

decisions considerably.

where there emerge future-related information and material fact that would influence investment

the Tokyo Stock Exchange through the timely disclosure network (TDnet), according to theinformation that is not subject to the timely disclosure regulations will also be released through the
IR website of the company, to reach investors accurately and equally.

112

会社情報

Company Overview
We have been consolidating our office functions, which were previously
scattered across different locations, by integrating them in Abema Towers(in March 2019) as well as Shibuya Scramble Square (in September 2019).
This initiative has helped us achieve better communication among staff
while also boosting productivity and operational efficiency.

50

Company05

Mission
Statement

Focus on Internet growth markets.
Seize opportunities to enter adjacent markets.
Always keep things FRESH!
Build teams that emphasize character over talent.
Commit ourselves fully to recruitment.
Build an organization that encourages success at all levels; eliminate seniority.
Eliminate the disadvantages of scale.
Be honest when you need help; work together to make things better.
Create an environment that attracts talented, loyal employees.
Holds ourselves to consistently high standards in obeying the law.
Remember that hubris leads to failure.
Risk takers deserve second chances.
Compete creatively.
Always remember that we are Team CyberAgent.
Become a global company by developing Internet services for the world.

Company Overview

Company Overview

General Information

Company Name

Office Locations

CyberAgent, Inc.

JapanTokyo, Osaka, Nagoya, Fukuoka, Sapporo,
Sendai, Kanazawa, Kyoto, Saga, Okayama, Okinawa

Address

Abema Towers 40-1 Udagawacho Shibuya-ku, Tokyo 150-0042

President

Susumu Fujita

China（Beiing）

Foundation

March 18, 1998

Taiwan（Taipei）

Capital7,203 million yen (As of the end of september, 2019)

Korea（Seoul）

Employment Headcount5,139 (Consolidated, as of the end of september, 2019)

Vietnam（Ho Chi Minh City）

Annual Shareholders Meeting

DecemberSingapore（Singapore）

Business Portfolio

Media Business
Internet Advertisement BusinessGame Business
Investment Development Business

115

GlobalUnited States（New York, Guam）

Company Overview

Stock Information

Top Holders
Name

Number of Shares% O/S

Listed Market

First Section of the Tokyo Stock Exchange

Code

4751

1

Susumu Fujita

25,909,600

20.56

Number of Shares Outstanding

126,426,600 shares

2

The Master Trust Bank of Japan,

10,480,800

8.32

Number of Shareholders

15,404

3

Japan Trustee Services Bank,Ltd．

7,366,849

5.85

4

NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY

6,397,126

5.08

5THE BANK OF NEWYORK MELLON 140051

3,225,400

2.56

6Japan Trustee Services Bank,Ltd．(Trust Account5)

2,201,400

1.75

7STATE STREET BANK AND TRUST COMPANY 505225

1,977,937

1.57

8

SSBTC CLIENT OMNIBUS ACCOUNT

1,947,680

1.55

9MSIP CLIENT SECURITIES

1,906,932

1.51

10

GOLDMAN SACHS INTERNATIONAL

1,875,913

1.49

Distribution of Shares
1.6 %

0.4 %
0.4 %

Foreign Institutions and Individuals
Individual,other
Financial Institusions
Securities Company

23.5%

Treasury Stocks
Domestic Corporations* As of the end of september, 201945.4%

* As of the end of September 2019
* The number of Tresuary stocks is 434,142

28.9%
Large Shareholding Report
Institution% O/S

Submitting Date

Baillie Gifford & Co *10.87%

October 9, 2019

JPMorgan Asset Management (Japan) Ltd. *6.24%

October 21, 2019BlackRock Japan Co., Ltd. *5.03%

February 6, 2019

* As of the end of October 2019
* In the case of joint ownership, the submitter of the large shareholding report or the major shareholder is listed.

116

CyberAgent
OfficeAbema
TowersOn the first floor of Abema Towers, which houses the media business,game business and companywide functions, is Udagawa Base, a publicstudio. As an entertainment center primarily consisting of AbemaTV andother video businesses, Udagawa Base presents a fun and exciting vision
and we hope it will become a new Shibuya landmark.

117

Office Entrance
A b e m a T o w e rs

118

Meeting Room
Ab ema T ower s

119Meeting RoomAb e ma T o w e r s

120

Cafe & Lounge
Ab e ma T o w e r s

121

The Room of Spirit and TechA b ema To wers

122

CyberAgent
OfficeShibuya
Scramble
SquareShibuya Scramble Square is home to the ad-focused AI business andrelated group companies. Here we are on the cutting edge of advertising,working on ad management, creative production, AI research anddevelopment, and more.

123

Shibuya Scramble Square

124

Meeting Room Entrance
S h ibuya Sc ramble Square

125Meeting RoomS h ib u ya S c ra m b le S q u a re126

Lounge
Sh i b uy a Scr amb l e Sq uar e

127Forward-looking statement

IR&SR Division, CyberAgent, Inc.

The future information, such as earnings
forecast, written in this document is based

Investor Inquiries

on our expectations and assumptions as ofthe date the forecast was made.
Our actual results could dif fer materiallyfrom those described in this forecast
because of various risks and uncertainties.

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