CyberAgentWay
CyberAgent, Inc.
TSE4751

Integrated Report
December, 2022

C O N T E N T S
Editorial Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 003
CEO Message ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 007
Purpose ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 010
CyberAgent's Value Creation Model ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 011
Special Feature

Superior Talent for Realizing Sustainable Growth ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 015

01 Value Creation Strategy

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CyberAgent's Growth Strategy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 032
CyberAgent Business Model ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 033
Media Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 034
Internet Ad Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 039
Game Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 045

02 Risks & Opportunities
03 ESG・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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056

Environment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 057
Society ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 060
Corporate Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 066

Commitment to the Sustainable Development Goals
04 Our(SDGs)

05 Facts

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

074

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079

ESG Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 080
Financial Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 081

06 Company Overview

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

087

Editor ial P olic y
CyberAgent, Inc. (the "Company") has prepared the"CyberAgent Way 2022 Integrated Report" to help investors
and other stakeholders understand our commitment
to sustainable value creation. In editing the report, wehave referenced the International Integrated Reporting
Framework proposed by the International Integrated
Reporting Council (IIRC), the Value Creation Guidance
advocated by the Ministry of Economy, Trade, and Industry(METI), and other relevant documents. For detailed financial
data, please refer to Chapter 6, "Fact Book."

Repor ting per iod
October 1, 2021 to September 30, 2022

For war d-look ing s t atement s
Forward-looking statements in this report are based on
information available to the Company at the time the material
was prepared, and thus include risks and uncertainties andare not in any way intended as a commitment to future
implementation.

007

CEOMESSAGE
Susumu Fujita

008

CEO MESSAGE_SUSUMU FUJITA

Summary for FY2022

businesses and fully invest in the future in order to achieve even

We hope the FIFA World Cup Qatar 2022, the biggest game series

further growth in the years to come.

since ABEMA was launched, to work as a springboard to bring it
into the next stage.
Because of advances in technology, our high-quality content

Despite a slowdown of last year's hugely popular game, we were

can now reach people around the world in the blink. In contrast,

able to increase sales again for the 25th fiscal year since ourfounding. With today's economic uncertainty, we are strategicallyon track to make a soft landing in FY2023. Unless unexpectedcircumstances arise, I will lead the company back to a growthtrajectory in FY2024.
In our Internet Ad Business, which we have continued to expand
since our founding, we aim to increase our market share at a ratethat exceeds the market growth rate. At the same time, we invest in
the DX field to achieve sustainable growth and broaden the scopeof our advertising business.
In our Game Business, we will focus efforts on developing new titles
while also enhancing the operation of existing titles. We also hopeto nurture our group's original IPs into assets that users will love foryears to come through cross-media production and other means.
ABEMA, which was built from the ground up through significant
investment since 2016, has surpassed 83 million downloads. Its
weekly active users, which we use as a key indicator, have also
been steadily increasing. In addition to revenue from advertisingand subscriptions, peripheral businesses have also been strong.
I believe ABEMA and other media businesses have entered a phaseof improved profitability since FY2020. These developments also
give me a sense that monetization is gaining traction.
We intend to continue improving the performance of our core

Aiming to make ABEMA an industry powerhousethrough the power of content and technology
ABEMA, the new TV of the future, recently celebrated its sixth
anniversary. Despite our original prediction that it would take ten
years to be fully established, its content is already steadily growing
in a wide range of genres. "THE MATCH 2022," streamed in June
2022, was hailed as a dream match between Tenshin Nasukawa
and Takeru and also considered the match of the century in fighting
sports history. A major success, this event achieved the mosttickets ever sold in Japan.
*Sports broadcasting is undergoing a major transformation, and theviewing environment that has been developed allows viewers toenjoy high-quality programs more flexibly, without being bound bytime or location. ABEMA is at the forefront of this transformation,
and we hope to continue to lead market growth. With this in mind,
we decided to embark on the challenge of live-streaming all 64
matches of the "FIFA World Cup Qatar 2022" for free for the firsttime in Japan's history. This will be a great chance for a vast
number of people to experience the quality and convenience of
ABEMA, which we have evolved and refined over the last six years.

ordinary content is no longer being chosen by viewers. Quality is
the deciding factor in this industry, and companies able to invest areasonable amount of money are growing by leaps and bounds. It
would be fair to say that if a company has two key components—
extreme quality and the technology—it has the potential to win big
in this industry.
Mainstream movies and TV dramas face stiff competition, but thecontent industry goes well beyond that. ABEMA has the largest
market share in fighting sports and shogi (Japanese chess), andother genres are steadily growing as users become regular viewers.
Above all, ABEMA's competitiveness stems from the technologicaladvantages that we have developed over the years. Our aim is toleverage the content and technological advantages that we havedeveloped over the years to make ABEMA a powerhouse in theindustry.

009

CEO MESSAGE_SUSUMU FUJITA"Servant leadership," to maximize humanresources, a constant axiom since our inception
It has been a year since we released our purpose: "To break throughstagnation with new power and the internet." Since our inception
in 1998, we have steadily and sustainably grown in step with thedevelopment of the internet industry, and we still continue to growin size with over 10,000 employees*.
In this time of rapid change in the world, we sensed our employees'

think for yourself, implement ideas through trial and error, andmanner, and we are seeing some promising results. The mostactually see the results. Of course, it's frustrating when things

important aspect of entrusting CyberAgent to the next president is

do not go as planned, but the sense of fulfillment and experience

to verbalize and communicate the decision-making skills that haveremain, and people will grow through the cycle of failures andbeen based on years of experience and intuition. I will take on thechallenges. Our strategy is to provide an environment in which

responsibility of laying the groundwork for others to visualize myemployees can push themselves and expand our business throughmanagement know-how in a format that can be understood by

their own initiative.

anyone.

* Number of employees: Total number of employees as of the end of September 2022, including

In October 2022, we announced a new executive officer structure,

limited-term employees

all executive officers are now female employees. Personally,

genuine desire to "feel that they are contributing to society throughI don't think that I have ever made decisions based on a person's

their work," which led to the development of our purpose. The fact that
we have clearly stated our vision and the role we should play in society
in CyberAgent's own words has provided significant moral support toour employees, which I feel is a result of declaring our purpose.
CyberAgent's vision "to create the 21st century's leading company"
stems from our desire to establish a Japanese company deservingof praise on a global scale in the new era. A great company is likea work of art that everyone contributes to, and in order to build
the company, we hire the best people and let them stretch theirpotential to the fullest. In my opinion, the key to leading a company
is all about bringing out the best in members, recognizing each
person's unique strengths, and encouraging the development of
those strengths.
This approach is based on "servant leadership," which has been
the foundation of my leadership philosophy since the company's
inception. We expect each employee to exercise self-leadership,and maximize their individual skills by gaining decision-making
experience. Work is much more enjoyable when you are able toand with the addition of three female executive officers, 18% ofgender. However, because Japan's society still tends to be male-

Focus next 10 years to develop into a company
that can be entrusted to the next generation

dominated, I believe that some deliberate efforts are needed tokeep pace with the global trend of increasing female executives.
I believe that increasing the proportion of female executive officers
is also a positive step toward revitalizing the organization, andOur company will celebrate its 25th anniversary in March 2023.

I look forward to people having more career choices to maximize

I feel that I have truly done everything to foster the company, andtheir potential in all areas of responsibility.

I want CyberAgent to be successful that can sustain itself for

Even in today's rapidly changing environment, we will continue

decades to come. It has to become a company that will thrive

to create social value through our businesses by leveraging ourregardless of who is president. So I have decided to spend the next

advantages in talent, technology, and creation, and we will remain

ten years training the next president to make the company that cancommitted to our purpose "To break through stagnation with new

pass on to the next generation.

power and the internet."

As part of this succession training, we launched the "President
Training Program" in FY2022, bringing together a diverse group ofpeople from across the company in a training program to groom
future presidents. Although it is still in its early stages, we believe it
is a good opportunity to learn about management in a systematic

CEO and President

Susumu Fujita

010

011

CyberAgent's Value Creation Model

Focusing on the internet, a high-growth industry,
CyberAgent pursues sustainable growthby taking advantage of its adaptability to change.

Risks
Superior
Creation

Adaptability
tochangeSuperior
Technology

Superior
TalentExternal
Environment

Sustainablebusiness
growthContribution
to localcommunities

To createthe 21st century's
leading company

Internet Advertising Business trainer and trainee (New Employee Training Program)Researchers from AI Lab, launched in 2016

015
Special FeatureSpecialFeatureSuperior Talentf o r Re a l i z i n g S u s t a i n a b l e G r o w t h
At CyberAgent, based on our belief that maximizing employees' capabilities is a primary driver of our company's growth,
our human resource policies prioritize "hiring, training, motivating, and putting the right person in the right place."
We spoke with Managing Executive Officer and CHO, Tetsuhito Soyama, on how to create an environment in which
employees can take on new challenges as the company strives to achieve even greater future growth.

016
Special Feature

Human Resources Division
Tetsuhito Soyama
Managing Executive Oﬃcer, CHO

017
Special Feature"Our HR initiatives aim
at bringing out people's
full potential."
Eliminating the seniority system and embracing
the 21st-century model of Japanese-style management

Tetsuhito Soyama,

CHO

Special Feature018

CHO INTERVIEW_ TETSUHITO SOYAMA

To be a company where employees are"surprised by their own abilities"

In the purpose, there is a phrase "embracing the 21st--

century model of Japanese-style management." What exactly isthat has traditionally been a strength of Japanese companies.
What measures have been taken to foster talent development?

proposing new missions based on career goals and individualinterests.Our aim is to be a company where employees aremeant by that?

-"Connection x Talent Development" are the keywords for new"Ashita Kaigi (Meeting for Tomorrow)," "GEPPO," and "Career

is more than simply putting an employee in any position; the key isJapanese-style management in the 21st century.

Agent" are some notable examples of measures we haveto establish expectations. Even if it's not a critical job, delegating

Because lifetime employment was the norm at Japanese companies

implemented. At the Ashita Kaigi, where employees can participate

work with high expectations helps to newly draw out the potential

in the 20th century, they emphasized strong connections andin making management decisions, they can propose ideas, shareof the person. We also pay special attention to not overlooking theteamwork. This "connection" gave Japanese-style management

opinions, get direct feedback from President Fujita, and see how

promotion of outstanding talent.

its advantages. This is demonstrated by the number of global

decisions are made firsthand, providing an opportunity to further

We want to build an organization in which everyone has mutualcompanies in operation for 200 or more years. Japanesedevelop their natural talent.

expectations of one another, both among members and between

companies account for 65% of those global companies. While thisEmployee conditions, which are a basis for identifying individual

seniors and subordinates, thereby forging strong connections withis a tremendous achievement, the reality is that, despite the large

talent, are assessed each month through GEPPO, and all comments

one another. We want as many of our employees as possible to benumber of companies, only a few are globally competitive.

submitted are read and responded to by "career agents" who serve

surprised by their own abilities, appreciating how much they have

We want CyberAgent to be a global company. Our focus has been on

as in-house headhunters. GEPPO also provides opportunities forgrown in just five years.

"talent development" while upholding the "connection" component

new talent to bloom, such as through individual interviews and"surprised by their own abilities." To achieve this, we must continue
to make deliberate employee assignments. Employee assignment

Special Feature019

CHO INTERVIEW_ TETSUHITO SOYAMA"The link between a company's future, purpose andan individual's reason-to-exist is a source of people's job satisfaction."

What do you think about 87% of employees responding-that they find their work "meaningful and rewarding"?

employees to work remotely on certain days of the week, adopting

ambiguity between office and remote work and setting a well-a hybrid work pattern that combines the benefits of both coming todefined balance.

the office and working at home. If we compare the situation today

Through the various efforts you've mentioned, you certainly

We believe that a person's sense of having a "reason-to-exist" isto the situation before Remo Day was incorporated, we can see

an essential element for job satisfaction. These days, when societythat the GEPPO score has increased in several categories.

as a whole is feeling trapped, job satisfaction depends on whether

In fact, 79% of employees answered "sunny" when asked about

you can feel a reason-to-exist, and that there is a bright future

relationships at work. I believe this is largely because we succeed

The concept of human capital has been spreading recently, andahead. I assume that our employees resonate with CyberAgent's

in drawing out the self-initiative of employees by recognizing thethis is a perfect example of where CyberAgent's competitivenessfuture and purpose, and feel a connection between these and theirdiversity of work styles. Employees have been able to effectively

lies. As Mr. Fujita has stated in the past, "A great HR idea is more

own reason-to-exist. I believe this is reflected in their response thatutilize the benefits of each, such as focusing on work when working

valuable than a great business idea." That's why our top priority

they find their work "meaningful and rewarding."

remotely, while making time for face-to-face interaction on days

in management is to ensure that employees are highly motivatedwhen they come to the office.

to take on challenges and can work with joy and passion. In

Another important point is that the days they come to the officepursuit of our company's future vision, we will continue to create

are fixed. It is quite shocking for a young employee to arrive at theenvironments that enable employees to maximize their abilities andoffice expecting to speak with a senior colleague who is not there.

provide them with job satisfaction.

The COVID-19 pandemic has drastically altered working-

styles, but have you seen any changes in GEPPO scores?
In 2020, we started incorporating "Remo Day," which allows* Figures for non-consolidated CyberAgentI suspect that relationship building has benefited from eliminating-

seem to be creating a rewarding work environment.

020

Changes in sales and staﬃng level

Special Feature

POINT

1

Hiring(Billion yen/person)
8000

Sales

7000

Numberof staff

Staffing level grew in 23 years of operation

6000

35

5000
4000

about

6,300

3000
2000
1000

CyberAgent began hiring new graduates in 1998, our first year in business. We value humanresources as an essential driving force in business creation, and operate under the policy of0

FY1999FY2022"expanding the company by making massive efforts on hiring the best human resources possible
and training them." As a result of CyberAgent's deeply held belief that human resources provide
our competitive advantage, we have created a culture in which
all employees work as one, with(Billion yen/person)
8000

over 450 employees currentlySales
involved in hiring. Susumu Fujita, CEO and executives are also
Numberactively involved in hiring process
in a variety of ways, including7000
designing internships and judging
of staff1

Numberof staff

CyberAgent,Inc.
competitions. We also update our hiring methods every year as appropriate
to the company's

l grew in 23 years of operation
about

6,300

phases, leading to shift to online hiring in recent years. We have been implementing large-scale
Yahoo Japan Corporationabout
online events aimed at students throughout Japan, which have5000
accumulated over 7,200 views.

2

35

3

6,300

FY2022

No. of employees
hiredSony Corporation
We have also decided to raise the starting salary for new graduates to 420,000 yen from FY2023.
Inc.
3000 to Mercari,
To bring out our employees' full potential, CyberAgent will continue
make additional
investments
4000

957

4

in human resources, which are critical to our long-term growth.

5

2000

Google LLC* Survey 413 students with programming experience or who plan to1000
graduate in 2024 and who are interested in working in computerengineering positions responded to the survey conducted by
Supporterz, Inc.

FY20220

New graduate
hires

36.1%

Staffing level grew in 23 years of operation

6000

FY1999The 30 Most Attractive Company
for Engineering Students

Annual number of new
graduates/mid-career
hires
Sales

Mid-career
hires

63.9%

1 CyberAgent, Inc.
2

Yahoo Japan Corporation

3

Sony Corporation

4

Mercari, Inc.

5

Google LLC* Survey 413 students with programming experience or who plan tograduate in 2024 and who are interested in working in computerengineering positions responded to the survey conducted by
Supporterz, Inc.

FY2022

Mid

021

POINT

Special Feature

2

CyberOwl, Inc., President & CEO
Executive producer of the "YJC neo"

Graduatehiring project"YJC"
The YJC project began in 2017, which intends to "diligently
hire the best people by ourselves." YJC not only reemphasizes
the importance of hiring but also provides an opportunity tocommunicate how highly we regard hiring activities. CyberOwl,
Inc. President Keita Tanaka, who serves as the executive
producer of a YJC project aimed at hiring the next possible
candidates of executives, talked about their activities

graduate hiring project

Keita Tanaka

I've been involved in new graduate hiring interviews and internships since myfirst year at the company, and from this I can say that the most important thingin hiring is that we, the front-line staffs, are fully committed to it and do notleave it to others. We do everything we can to motivate students we want towork with to grow together and choose our company.
Given the age of the management team and the company, there will inevitably
come a time when the company's future must be entrusted to the next
generation. To prepare for that time, through "YJC neo," we strive to findpeople who can take the future operation of the company. As our company andorganizations continue to grow, this is a great opportunity for young people topotentially be involved in the management of a company of this size. In my
opinion, there is no better environment for those who want to build an amazing
company or be involved in managing a company that embodies the era. I lookforward to discovering the future colleagues who will be shaping CyberAgentand taking on the challenge of achieving further corporate growth together.

022
Special Feature

POINT

Human
resource
development3

Based on our belief that "decision-making experience fosters individual
development," we value those who have initiative and make decisions. To
facilitate this, we provide an environment in which each and every employee
can unleash their fullest potential while supporting the pursuit of challenges
in their career. Project Reports are held every six months, where all the teams
determine organizational goals. This aligns organizational and individual goals
and creates a system that facilitates personal relevance and self-motivation.
We also focus on hiring and training engineers, who are critical to businessexpansion, and provide opportunities to learn new programming languages,
advanced technologies, and specialized knowledge through our "Reskilling
Center," an organization dedicated to assisting engineers in their careerdevelopment. We are committed to creating an environment that lets
engineers and creators in friendly competition through various crossdepartmental HR initiatives.

023
Special Feature

POINT

4

Energizingorganization

We believe it is critical to energize the organization to create a constantly
evolving environment to generate innovations fitting to current times.
Through several initiatives aimed at energizing throughout theorganization, we strive to strengthen cross-departmental connections,and boost engagement by improving communication quality. In

B 22

addition, we also hold award ceremonies to recognize outstanding
individuals, teams, and projects. These are held once every six months
for the entire CyberAgent group and once a month for each division,and have resulted in increased motivation by creating an environment offriendly competition by praising each other's impressive performanceand achievements.
Through efforts like these, we have fostered a culture that is highly
adaptable to change and has a positive outlook on the fast-moving
external environment and business lines, and organizational reforms.
Images: In-house initiatives to energize and bring changes to the company.

YMCA, a company-wide projectfor developing young talent

025

POINT

Special Feature

5

The right personin the right job

Career Agent group for putting the right person in the right job

Executives
Recommendation

Provide transfer
Assess situations
opportunities and info
Career AgentManagement decisions
Recommendation
GEPPO
Assess situations

Career Agent

Tool for assessing conditions

Consultation
Recommendation

Tool for assessing conditions

headhunter group that works to put the right people in the right positions

Provide transfer
Careerand
Challenge
opportunities
infoInternal transfer
listing system

Career Challenge

GEPPO

To bring out the talents of our workforce, we have established an in-house

Status sharing

Consultation
Recommendation
Employee

Status sharing

Employeeby running an internal job posting system “Career Challenge” as well as
an internal recruiting website that allows people to see available positions.

Management decisions

Executives

CareerBar Internal recruiting site
Activities
introduction
transfer
CareerTVInternal
videoslistingsystemCareerBar Internal recruiting site
CareerTV

Activities introduction

videosGathering info
on jobopenings and departments

Versus before the COVID-19 pandemic

Gathering info on job
Now and departments
Before COVID-19
openings

to another division or group company once every six months. Currently,

Relationships

79%

74%

roughly 70% of those who applied have successfully transferred with

Versus before the COVID-19 pandemic

Before COVID-19

engineers accounting for 30–40% of applicants.

Goals

Now

Relationships

79%

74%

54%

Career Challenge introduced in 2005, allows employees to apply to transfer

Changes in the percentage of employees who answered "SUNNY" in GEPPO

76%

and other matters. Comparing the situation today to before the COVID-19

Challenge
Workload distribution

pandemic, you can see that the GEPPO score has increased in several

Contribution

72%
76%
68%
72%
64%
68%

Workload distribution

64%

Another tool, "GEPPO," is a pulse survey to quantify the condition ofindividual members on a scale of 1–5 using weather symbols as well as
open-format answers to gauge employees' career trajectory, struggles,

categories. We believe that "Remo Day" (Remote Day), a system forworking remotely on certain days, has achieved results by drawing out the
self-initiative of employees and achieving more diversity in work styles.

Challenge

Goals
Contribution

72%
68%
72%
67%
68%
54%
67%

*(On a 5-point scale with responses ranging from "beautiful" weather to "heavy rain")

026

CareerTV, video content to communicate
the work of each department

Special Feature

CareerBar, an internal job-posting website for openings
in each department

Pikalog, a project designed to discover
the talents of young employees

027

Our people by the numbers

Special Feature

POINT

6

% of People Who Answered
They Are Satisﬁed With Their Job*1

Age Distribution*2

44.7%
35.4%

Female

32.1%

35.4%

FemaleFemale

32.1%

Male

18.5%

67.9%

32.1% Male

30s

1.4
87.0
0%

40s

50s

18.5%

%

60s

20s

30s

40s

20s

Female-To-Male Ratio*2

Female-To-Male Ratio in Managerial Positions*2

44.7%

FemaleFemale
22.3
%

35.4%

32.1%

20s

6.1 年 22.3%
30s

1.4%

0%

50s

60s

30s

40s

40s

1.4%

0%

50s

60s

Turnover Rate*2

8.4%

22.3%

18.5%

67.9
77.7
%%

18.5%

Female6.1 年

Female

Male
Male

44.7%

35.4%

67.9% Male
67.9%

%

20s

44.7%

Male

77.7%

1.4%

0%

50s

60s

Male

77.7%

6.1 年
*1 Percentage of respondents who answered I am motivated to work in the stress test.
*2 CyberAgent consolidated / An error in the ﬁgures has been corrected. (March 9, 2023)

Winning team from Ashita Kaigi (Meeting for Tomorrow), held to generate new business ideas

01
Value Creation
StrategyGame BusinessKoki Ukita
Managing Executive Oﬃcer

031

01
Value Creation Strategy

Adapting to environmental
changes in business andusing technologicalinnovation to diversify
our businesses resulted
in sales increase for the
25th consecutive ﬁscal
year since our founding.

Consolidated sales
10-year growth rate:
ApproxConsolidated sales/Sales Composition*

500

Investment Development 0.6 % Other 3.4 %Media 15.0 %FX 4.9%Total Internet
Busines

Ameba16.6%

FY2012%710.5B
yen

Games

30.5%
FY2022Media
Related31.9%(Internet Ad Business)

46.3%

Internet Ad

Investment
Development

50.4 %

0.2%

141.1Byen

Early stage

Smartphone shift stage

FY2000ABEMA/AI/DX investment stage

FY2012

FY2022
ABEMA

Games
Media
Internet ad
Entry into AI/DX* Sale composition: Calculated based on sales by segment disclosed in securities reports (before deducting internal transactions)

032

Medium- to Long-Term Operating Profit Overview

Value Creation Strategy

01

We have made three major investments in the past. Currently, we are building up profits in our internet advertising andgame businesses while making upfront investments to make our media business, "ABEMA," a pillar of our medium- tolong-term strategy.

CyberAgent's
Growth Strategy

Investment
in Video content
business

We have launched new businesses in step with the evolution of the internet

Media
Business

Investment
in Smartphonebusinessindustry, and strengthened upfront investment while existing businesses
were still strong. By maturing new businesses into future pillars of ourbusiness strategy, we have been able to achieve sustainable growth.

Game
Business
Investment
in blogs

AD
BusinessWe are expanding our business model primarily in the areas of media, internet
advertising, and game businesses.
In each of our businesses, we are engaged in creating sustainable value by
leveraging our technological and operational advantages to create content, attract
customers, and improve our marketing and sales capabilities.

Value Creation Strategy

01

033

CyberAgentBusiness ModelMedia
Business
●
●

ABEMA
Ameba

●
●

TappleN organic

OutcomeInternet Ad
Business●●and others.

Economic
value

DX in collaboration
with partnercompanies
AI Business
DX Business●

AI technology R&D

Sales

and others.

ProfitCash

OutcomeSocialvalue

FFY2022Y2022
売上高 7,000
億円
Sales:710.5
billionyen

Creation of new industries
Employment promotion
New information infrastructures

Game
Business
Uma Musume Pretty Derby
Granblue Fantasy● Project SEK AI Colorful Stage!
Feat. Hatsune Miku
and others.

Development of IT TalentEntertainment provision●●© Cygames, Inc.
© SEGA / © Colorful Palette Inc. /© Crypton Future Media, INC. www.piapro.net

All rights reserved.

034

01
Value Creation Strategy

Med i aB u si n e s s"ABEMA" launched in April 2016, attracting many viewers and achieving 83 million downloads*
in six years and ﬁve months. We also oﬀer a wide variety of entertainment services that include
the country's largest blog service "Ameba", dating app "Tapple", and ecommerce cosmetics N organic.
*The number of downloads: As of October 2022.

036

01
Value Creation Strategy

Leveraging content and technology tocreate the "new TV of the future"
GrowthStrategy

Based on the concept of reinventing TV, ABEMA has beendelivering high-quality content and a wide range of information asa service that allows everyone to enjoy video content anywhere,
easily, and free of charge 24-hours-a-day across 25 channels.
In times of emergency ABEMA is used as an immediate sourceof information. It has added value by breaking ground in several

Media Buisinessgenres, including the largest numbers of original programs inJapan and exclusive streaming of sports events. We will continue
growing ABEMA into a medium that is indispensable to our social
infrastructure while also ensuring an easy and comfortableviewing experience for everyone, regardless of location orenvironment.

037

01
Value Creation Strategy

Services that continue to evolve
based on CyberAgent's strong
technological advantages
Over 100 engineers are committed to ABEMA on a daily basis to make the service
more user-friendly and expand its compatibility with devices. Based on the experience
gained from live broadcasting a diverse range of events since its inception, ABEMA
has developed the ability to deliver a stable viewing experience even with a massive
number of simultaneous connections. This resulted in the most tickets ever sold inJapan* for "THE MATCH 2022," an epic match in the fighting world that was streamedin June 2022. We were also the first in the industry to launch the online live platform"ABEMA PPV ONLINE LIVE" to support the entertainment industry, which was greatly
impacted by the COVID-19 pandemic. We continue to evolve our services in response
to societal changes by utilizing our technological advantages to expand functionality
when needed.
For the first time in Japanese history, we decided to broadcast all 64 matches of theFIFA World Cup Qatar 2022 live and absolutely free. FIFA World Cup is widely regarded
as the world's most prestigious soccer tournament and has captured the interest of aMedia Buisinessglobal audience comprising over 3.5 billion people in the past. Through this challenge,
we hope to provide the highest-quality videos and most innovative viewing experience
to date, paving the way for ABEMA to reach a whole new level of success.
* Most tickets ever sold in Japan: Number of ﬁghting sports PPV tickets sold (as of June 2022, based on our research)

038

01
Value Creation Strategy

Improving monetization
through a diverse range of
peripheral businesses

Medium to Long-Term Sales Model of ABEMA

While the business model of ABEMA is generally based on a combination ofboth advertising and billing revenue that is unique to internet services, we
also improve monetization through peripheral businesses. Despite being a

Related Business,latecomer to the service, WINTICKET, our internet betting service for cycleetc.

and auto racing that launched in April 2019, today, has grown to account for
30% of the market share. By leveraging the service development expertiseand operational capabilities that we have built up and refined, we equipped
WINTICKET with a simple and easy-to-read UI/UX and unique data, which has
resulted in excellent user retention and loyal use of the service.
It is also worth noting that the global industrialization of sports is accelerating,with sports betting now legal in all G7 countries except Japan. It is believed

Subscriptionthat promoting the sports ecosystem will not simply circulate funds within
the sporting world but also contribute to the overall sustainability of society.
If the ban on sports betting is lifted in Japan in the future, we can anticipate

Media Buisinessthe potential of a sports betting market, which would provide yet another new

Advertisingsource of revenue. Due to the high level of affinity between ABEMA and theinternet betting service WINTICKET, we have positioned it as a medium- tolong-term high focus area to watch for future developments.

2016

2019

039

01
Value Creation Strategy

I nte r ne t A d
Bu si ne s s
Since its launch in 1998, CyberAgent has been expanding its internet ad businessand boasts one of the largest scale in Japan, leveraging its strengths inmaximizing advertising eﬀectiveness. We provide comprehensive solutions that
include creative production based on cutting-edge technologies such as 3DCG and
AI-driven technologies and are currently venturing into the DX market.

Joy Virtual human model041

CyberAgent Delivers DX for Partners
with "Technology" and "Implementation Capability"

Value Creation Strategy

01

GrowthStrategyThis video introduces "real-world examples of collaborative DX" with CyberAgent, such as our
support for launching data-driven digital ad distribution campaigns and developing apps, andhow businesses are co-created by implementing DX-driven sales promotion and HR
development activities. (Approx. 8 min. video)

Creating a new mid- to long-term
advertising business aimed atachieving sustained high growthInternet AD BusinessWith the goals of "contributing to our clients grow their businesses and maximizing advertising
effectiveness," CyberAgent has taken on a variety of challenges, such as developing and implementing
AI-based products in the rapidly changing industry.
We are currently investing in the DX (digital transformation) business to create a new revenue stream while
expanding our collaboration partners in order to employ client-held data for their marketing. Our flagship
AI Lab and other advanced technological advantages, help us being one of the top internet advertising
companies in Japan.

Top 100 Global Companies Leading in AI Research*1
Thundermark Capital, a venture capital firm thatinvests in AI and robotics startups, has released its AI
Research Rankings for 2022. Nine Japanesecompanies, including CyberAgent, have been ranked
and recognized as among the top 100 companies
leading AI in research in 2022.
AI Lab and others will continue to pursue R&D that
benefits both industry and academia by effectively
utilizing our company's technological advantages.

2020

2022

Global

66th

49 th

Japan

7th

4 th

*1 AI Research Rankings 2022

042

Marketing and Creatives

Histrory of internet
advertising services# 1st Generation Marketing and Creatives
We have evolved our advertising business by dividing it into threemajor phases.
In the first generation, we delivered value as an advertising

Common in All Generations

Value Creation Strategy

01# 1st Generation

agency through marketing strategies and conventional creatives
into one of Japan's leading internet advertising companies. This has
allowed us to build up a massive amount of advertising data, which

Internet AD Businesshelps to maximize the effectiveness of AI machine learning.

Operations and Technologies

development. Our operational advantages had enabled us to grow043

# 2nd Generation

Engineering and Data science01
Value Creation Strategy

Support companies to promote DX and create ad business as their technology partner.

Histrory of internet
advertising services# 2nd Generation Engineering and Data sciencescience to utilize the data we have accumulated. Through AI
Lab which we launched in 2016, as well as industry-academia
collaboration, we have acquired a number of cutting-edge andglobally acclaimed technologies*1 in internet advertising. We have

Medical Services

Event BusinessSupport digitalization of all kind ofadministrative procedures

Help to establish online doctor visits
and medical prescription service

Support launching online press
events and exhibitions

Digital Government
Promotion Dept.
GovTechDevelopment Center

also progressed to the point where we can DX with clients to launch
new advertising initiatives based on data held by them. We plan todevelop advertising initiatives that will make use of data from theInternet AD Businessretail, financial, mobility, and carrier communication industries, allof which have a close relationship with the advertising business,
as well as data from the healthcare industry in the future. Given the
many pioneering examples of advertising that have appeared in theretail industry, including from companies like Amazon and Walmart
in the US, we estimate that 1% of total retail sales, or approximately
1.5 trillion yen, will be converted to advertising.

Retail industry
market potential

1%
Commercial
Sales Value*3

Advertising Business * 2¥1.5T(E)¥150 T*1 Top 100 Global Companies Leading in AI Research*2 Advertising business forecast: Calculated on the US market, which is the leading market*3 Retail sales: Based on METI's "Current Survey of Commerce" (2021)

Operations and Technologies

In the second generation, we employed engineering and data

Public Offices

Common in All Generations

Collaborations

044
Value Creation Strategy

Histrory of internet
advertising services# 3rd Generation Virtual content and Financeareas of content and finance in the virtual and metaverse domains.
CyberAgent is currently establishing new subsidiaries and research
centers specializing in these areas, and we aim to achieve strong
long-term growth by investing in new businesses while existingones are still performing well.

Operations and Technologies

Looking to the future, CyberAgent is focusing on the 3rd Generation

Internet AD Business

Virtual content and FinanceCommon in All Generations

01# 3rd Generation

045

01
Value Creation Strategy

GameBus i n e s s
Our Game Business, which was launched in 2009, has maintained the largest share* of Japan's
smartphone game market by producing long-term hit titles and extending their lifespan through operations.
* Share of the smartphone game market: October 2021 - June 2022

Project SEKAI Colorful Stage! Feat. Hatsune Miku Project Team for the smartphone game

047

Game Buisiness

Value Creation Strategy

01

GrowthStrategy

Aiming todeliver longrunning hits thatprovide long-term challenge

FY2013CyberAgent has 13 gaming-related subsidiaries,

In this highly competitive industry, there are far

the most notable being Cygames, that deploy

more "non-hits" than "hits," and what we mustover 50 smartphone games.

value as an organization in these uncertain times

With each of these subsidiaries having its own

is "continuing to take on coherent challenges."

strengths and strategies, we currently have 10

We believe that one of the most importantmajor hit titles as a result of developing a wide

factors in increasing the chances of producing

variety of games.

a hit is an organization's ability to continue“Granblue Fantasy,” first released in 2014,

producing

continues to be a long-running major hit as it

adaptability to change.

approaches its 8th anniversary, and a console

By continuing to take on new challenges while

release is also planned for 2023.

refining our technology and creativity, we strive

We have also been working to increase ourto continue to bring new user experiences andgames' global reach. In June 2022, we released

value to as many people as possible in order to

Korean and traditional Chinese versions of adeliver titles that are passionately enjoyed bypopular title "Umamusume: Pretty Derby"*4,

users for years to come.

which was first released in February 2021 andimmediately became a massive hit.

high-quality

products

andFY2014FY2015FY2016FY2017FY2018FY2019FY20201

2

5Sengoku Embu
-KIZNA-

Granblue
Fantasy

Shadowverse

PRINCESSCONNECT!
Re:Dive

UMA
MUSUME
Pretty Derby

Original IP

Original IP

Original IP

Original IP

Original IP

CardBattleRPG

CombatOnlineTCG

Anime
RPG

Training
Simulation

3

4

7

FY2021

6

9

Dragon Quest
Monsters
Super Light

THE iDOLM@STER
CINDERELLA GIRLS
STARLIGHT STAGE

BanG Dream!
Girls Band
Party!

8

10

Project SEKAI
Colorful Stage!
Feat. Hatsune Miku

NieR
Re[in]carnation

他社 IP

他社 IP

他社 IP

他社 IP

他社 IP

RPG

Idol &
RhythmRhythm &Adventure

Rhythm
Game

RPG

its

1: © Sumzap, Inc. All Rights Reserved. 2, 5, 7, 9: © Cygames, Inc. 3: © 2014-2022 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All
Rights Reserved. Developed by Cygames, Inc. Distributor: Square Enix 4: © BANDAI NAMCO Entertainment Inc. Jointly developed andoperated by BANDAI NAMCO Entertainment Inc. and Cygames Inc. 6: © BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights
All rights reserved. 10: ©
Reserved. 8: © SEGA / © Colorful Palette Inc. / © Crypton Future Media, INC. www.piapro.net
2021,2022 SQUARE ENIX CO., LTD. All Rights Reserved.Developed by Applibot,Inc.

048

TOP PUBLISHER AWARDS 2022: data.ai Inc.
RankedRankedworldwidein Japan

Value Creation Strategy

01

12 th

"Umamusume: Pretty Derby"*1, released in

We not only have state-of-the-art development

February 2021, triggered a major movement

tools as a smartphone company but have alsoin Japan with over 16 million downloads as ofplaced a priority on unleashing the full potential

September 2022.

of our outstanding talent to consistently deliver

While the game had a long 5-year development

cutting-edge mobile games that customers

cycle, its success as an iconic title has

enjoy.

demonstrated our commitment to "pursuing

As we move forward, we plan to take a number

quality," one of our key competencies.

of measures to bring operations up to the best

We believe that the game's unprecedented

quality possible and ensure that our original IP,

success can also be attributed to our"Umamusume: Pretty Derby"*1, continues tocross-media

be widely loved by users for at least the next

expansion

strategy,which

included anime broadcasts, comics, and live

decade.

Game Buisinessevents, fostering a large fan base even before
the game was released.

*1 "Umamusume: Pretty Derby": © Cygames, Inc.
*2 "Top Publisher Award 2022": Referenced from "Top Publisher Award 2022" released by data.ai Inc.

1st© Cygames, Inc.

Risks & Opportunities

02

051

CyberAgent has established a wide range of systems for continuing to create new opportunities in theever-changing internet domain. Through the operation of these systems, we manage a variety of risks,
including the inability to respond or slow response to change, in order to ensure sustainable growth.		

Sustainability
Classification

Risks to Sustainable Growth of the Company

Risks & Opportunities

02

Risks & Opportunities

Superior
Creation

Risk item

Social Change

Adaptability
to change

Superior
Technology
Adaptability
to change

TechnologicalInnovation

Response Approach

Procedures and Systems
that Provide Countermeasures

Opportunities(value creation)

・Risks related to future
uncertainties, includingchanges in social conditions,
economic conditions/economic downturn, andmajor changes in accounting
standards or taxation systems

To continue achieving growth in the internet industry, it is important for
us to respond quickly to changes in the environment and consumer
preferences to develop new busines ses. CyberAgent's r isk
management challenges are to rapidly "create new businesses in
response to change"and "tur n r isk into oppor tunit y." We have
implemented a variety of measures to pursue the challenge of launching
the new businesses. In order to contribute to digital transformation (DX)of many industries, which progresses due to the COVID-19 impact, weare currently focusingefforts on commercialization opportunities.

Ashita Kaigi (Meeting for Tomorrow)To generate new value
through the creation of
new businesses

・Existing technologies andservices becoming obsolete
due to the emergence of newtechnologies

The wide range of CyberAgent services ― including ABEMA, over 50
smar tphone games, and adver tising produc t s that apply AI
technologies―are created by over 2,500 engineers and creators using
an extensive range of technologies. We strengthen the systems forcross-departmentally sharing the various technological assets built up
across the group to improve our capabilities necessary to keep ourcompetitive edge. At our in-house research institutes, we work on
developing the latest technologies and their practical applications,aiming to achieve a balance between finding solutions to businesschallenges and contributing to academia. CyberAgent leads Japan in thenumber of scientific papers adopted at international conferences in thefield of AI research.

CA BASE SUMMIT

Content

・Loss of competitiveness dueto the inability to predict orslow prediction oftechnological innovation* "AI Research Ranking for 2022", calculated based on the results of papers
adopted at ICML2021 and NeurIPS2022.

Financial Strategy Meeting
CAJJ
Startup JJJ
CyberAgent's DX

Ashita Kaigi (Meeting for Tomorrow)by in-house engineers and creators

CA BASE CAMPTechnology conference
by in-house engineers and creators

R&D Division(AI Lab・Media Data Tech Studio)

To create new value,
including new services
that utilize the latest
in technology

052

Risks to Sustainable Growth of the Company

Risks & Opportunities

02

Sustainability
Classification

Superior
Technology

Risk item

Information
Security

Adaptability
to change

Content

・System outages due tomalware infection or
unauthorized access, data
corruption, and informationtheft

Response Approach

Procedures and Systems
that Provide Countermeasures

As an internet service provider entrusted with significant amounts ofpersonal data, we are working to reduce information security risks andprotect personal information through measures based on four key
elements: organization, people, technology and office.

Information Security

To secure highly-capable personnel, we have implemented a number ofHR measures that emphasize "hiring, training, active utilization, andputting the right person in the right place," and have created anenvironment and culture where each and every employee is able toreach their full potential in terms of performance. To recruit outstanding
talent from acros s Japan, we continue to aggres sively recr uit
employees in line with the times, such as by implementing internships
and recruiting conferences online. We also offer training opportunities
based on a custom curriculum to some 20 selected members under theage of 30 as an effor t to develop the next generation of executive
leaders.

Training and active participation measures

Protect Personal Information

Opportunities(value creation)

To gain public trust byproviding safe, secureand reliable services

・Loss, leakage, removal or
misuse of personal, technicalor other important information
・Financial damage or loss oftechnological competitivenessdue to a third party exploiting
leaked critical information
・Reputation damage, incurringof damage compensation, lossof public trust, loss ofopportunities, etc. arisingfrom the above

Superior Talent
Adaptability
to change

Securing
Human
Resources

・Intense hiring competition
making it virtually impossible
to recruit and retain enoughtalented people
・Lack of management
succession"DASH"
program for prospective employees
to get started quickly

CA BASE AWARD
CA BASE NEXTJB Career Program
YMCA
Reskilling Center"ENERGY"
support system for engineers

CA Seminar System

To boost
competitiveness andachieve sustained
corporate growth bybolstering humanresources

Risks to Sustainable Growth of the Company

053

02
Risks & Opportunities

Response Approach

Procedures and Systems
that Provide Countermeasures

・Outflow of talent due to lack ofa healthy, hygienic work
environment for employees

We value the employees' health and provide an environment where theycan enjoy working without mental and physical stress. In addition to a
COVID-19 workplace vaccination program, we offer free seasonal
influenza immunizations to employees at the workplace every year. To
ensure the employees are able to maintain good health and work in a
comfortable environment, allowing them to fully utilize their skills atwork, we also provide opportunities to meet with an occupational
health physician as needed and a licensed clinical psychologist once amonth for those who wish to see a counselor.

Healthy Workstyle

To boost hiring
competitiveness andensure growth
opportunities by
providing a pleasantworking environment

NaturalDisasters, etc.

・Changes in the businessenvironment due to climatechangeTo preserve the global environment and contribute to the realization ofa sustainable society, CyberAgent strives for balance in reducing
environmental impact from climate change while also maintaining theefficiency of business activities at the same time.If an earthquake,
typhoon, or other natural disaster should occur, CyberAgent has
systemsin place to quickly and appropr iately implement cr isis
management and recovery measures.

Environment

To create sustainable
societies

External
Environment

Legal
Regulations

・Impact on business activities
due to tightening of regulations
and the establishment of new
guidelines and self-regulatory
rules in our business areas

Including the Japan Association of New Economy (JANE), we belong toindustry groups connected to each of our business areas, and we strive
to build relationships with relevant ministries and agencies while
carrying out other activities such as information gathering and making
policy recommendations.

Lobbying activities

To create business
opportunities

GovernanceCompliance・Loss of trust or damage tocorporate value as a result ofstaff violating laws orinfringing on the intellectual
property rights of a third party

Our Mission Statement, which is our code of conduct, clearly states ourintention to be a "highly moral company that thoroughly complies withthe law." Accordingly, we require all employees to act with a strong
sense of ethic s and responsibility for their actions, provide thenecessarytraining to do so, and conduct regular audits.

Mission Statement

To eliminate
non-compliance andfoster public trust

Sustainability
Classification

Risk item

Superior TalentWorking
Environment

External
Environment

Adaptability
to change

Content

Risk GEPPOManagement Training

Opportunities(value creation)

054

Risks to Business Growth

Risks & Opportunities

02

Sustainability
Classification

Governance

Governance

Governance

Response Approach

Procedures and Systems
that Provide Countermeasures

・Damage to our brand image,loss of public trust or
confidence, and claims fordamages compensation fromusers, including minors, who
suffer damage while using our
media services.

CyberAgent is committed to sound management of all media services
that we operate in order to protect underage users as well as provide asafe and secure environment for all people who use our services.

Safe and SoundMedia Service Operation

Internet
Advertising
Business

・Improper billing of advertisingexpenses from ad fraud, loss of
public trust or confidence in the
Company's advertising businessdue to damage to advertisers'
brand value, compensation
claims due to damages, changes
in transaction conditions or
product specifications due torestrictions on personal
information in and outside Japan,
guidelines and regulations on AI
ethics, infringement of third
party rights by AI-basedalgorithms and deliverables, etc.

In our advertising business, CyberAgent has been focused on improving
our advertising-related compliance structure. As a leading internet
advertising company, our goals are to promote sound and transparent
advertising transactions, and to be an advertising agency to which
advertisers can place ads with full confidence.
In addition, we promote the use of AI with caution, understanding theneed to avoid bias and infringement of rights about the data used, thescope of use, decision criteria, the algorithms that lead to decisions, anddeliverables.

Advertising Compliance

Game
Business・Damage to our brand image,loss of public trust or
confidence, and claims fordamages compensation fromusers, including minors, who
suffer damage while using ourgames

In all the games that 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. To ensure this, we deliver services
in strict compliance with all relevant guidelines.

Safe and Sound
Gaming Operations

Risk itemMedia
Business

Content

Safe and Sound Dating App Service

Research Ethics Guideline

Opportunities(value creation)

To foster social trust as asafe and secure service
provider by developing
procedures and systems
that protect users

To foster public trust asa safe and secureservice provider by
understanding theimportance of
establishing procedures
and systems that protect
advertisers as well as AI
ethics.

To foster social trust as asafe and secure service
provider by developing
procedures and systems
that protect users

Risks to Business Growth055

02
Risks & Opportunities

Sustainability
Classification

Risk item

Adaptability
to change

Investment
development
business

Adaptability
to change

M&A(corporate
acquisitions,etc.)

Response Approach

Procedures and Systems
that Provide Countermeasures

・Situations where theperformance of a company
that we have invested inpublicly or privately
deteriorates to a point that weare unable to recover ourinvestment.

With investment and support areas that are specialized for the internet,
we implement highly-specialized incubation activities that provide
CyberAgent's internet business expertise.

CyberAgent Capital, Inc.

・Discovery of unrecognizedliabilities after an M&A,
occurrence of contingent
liabilities, poor businessdevelopment after theacquisition, etc.

We investigate the target company in as much detail as possible inadvance, and after fully considering any risks, we rapidly proceed with
the M&A if we deem it necessary for future growth.

Content(investment development business)

Fujita Fund(an initiative that supports entrepreneurs)

Monthly Pitch(monthly event that brings together start-up
companies, other VCS, etc. to pitch ideas)

Rapid investment action
Operational support bydispatching a management team
Follow-up governance support
by CyberAgent Group

Opportunities(value creation)

To contribute to the
expansion of theinternet industry bysupporting venturecompanies withcommitments from seedand early stages.

To strengthen businessby acquiring new
management resources
and increase thecorporate value of thetarget company andCyberAgent Group

03

ESG

057

03
ESG

Environment

058

03
ESG

Environment

GovernanceInitiatives to combat
climate change

The Board of Directors makes important management decisions and oversees business operations. It also deliberates and makes
decisions on important matters such as policies for addressing risks and opportunities related to climate change and greenhousegas emissions.
Aiming to respond in line with the TCFD recommendations, companywide cross-functional members and the ESG promotion officeplay a central role in analyzing climate change-related risks and opportunities through scenario analysis, consideringcountermeasures, and reporting regularly to the Board of Directors.

Structure(information disclosure basedon TCFD recommendations)Shareholders' Meeting
Appointment and removal

Appointment and removal

CyberAgent recognizes climate change as one of its key management
challenges and is committed to reducing its environmental impact andimproving the efficiency of its business activities as a company thatstrives to help realize a sustainable society.

Supervisory Functions
Nomination andRemuneration
Advisory Committee

Board of Directors
Audit and Supervisory
Committee

Consultation

Directors

Report5 Directors who are not
Audit and Supervisory
Committee members, ofwhich 2 is Outside Directors.

We will continue to monitor and work to reduce greenhouse gas
emissions from our business operations, to establish and operate thenecessary systems, and to disclose relevant information.

Supervision,delegation ofpartial authority

Audit,
Supervision

Report3 Directors who are Audit
and Supervisory Committee
members, of which 2 are
Outside Directors.
Instruction andsupervisionInternal Audit OfficeInternal audit

ReportInstruction andsupervision

Executive Functions
Corporate Executive Office
8 senior management executive officers or higher
Instruction and supervision

Business Division, Subsidiaries

Accounting Auditor
Cooperation

ESG Promotion Office

Audit

CategoryContent

MeasurePhysicalrisk

Extreme weather
andnatural disasters

Service disruptions caused by flooding,power conservation, and power outages

・Choose data centers with excellent disaster preparedness
and diversify locations

〇

High

Internal infrastructure suspension

・Install emergency generators to ensure employee safety

〇

High

Voluntarily refraining or reductionof ad placement

・Develop sales strategies appropriate to the situation

〇

High

Slow service development

・Create developmental and operational systems for remote work〇

MediumCooling consumer sentiment・Operate in harmony with consumer sentiment〇

MediumTechnology

Increase in power consumption due to businessgrowth (increased access rate)

・Strive for greater efficiency through technological innovation
and a transition to energy-saving equipment〇

MediumExtreme weather
and natural disasters

Labor force migration due to high temperatures
becoming commonplace in urban areas

・Establish a remote work environment〇

Low

Technology

Transition to low-carbon technologies

・Encourage a gradual transition to energy-efficient servers and PCs〇

Low

Reputation

Misinformation about climate change

・Conduct third-party reviews or audits〇

Low

Increased
regulation

Carbon tax burden

・Consider energy-saving measures in the workplace,switch to renewable energy sources, etc.

△

Low

059

Risks and countermeasures
based on scenario analysis
The following table summarizes the impact on business performanceof the major risks identified and considered through scenario analysis.
For the scenario analysis, the two scenarios below were selectedbased on referenceable climate change scenarios.
・2°C scenario: This scenario assumes that global policy measuresand technological innovations will advance to keep the average

Status ofFinancial
Implemented
impactMeasuresRisk
category

ESG

03

Summary

Transition
risk

temperature rise below 2°C by the end of the century, that socialchanges associated with the transition to a decarbonized society will
have an impact on business, and that we will live in a society wheretransition risks and opportunities are apparent.
・4°C scenario: If no action is taken to address climate change,
average temperatures will rise by about 4°C by the end of the century.
This scenario assumes a society in which increased natural disasters
due to rising temperatures, etc., are likely to impact business, andphysical risks and opportunities will materialize.

Risk management
CyberAgent believes that assessing climate change as part of business risk is essential to carrying out risk management andensuring business continuity.
We strive to identify physical risks such as extreme weather and flooding caused by climate change, develop BCP plans, andensure widespread familiarization with manuals. The ESG promotion office also reports regularly to the Board of Directors on risks
and measures related to climate change. It also monitors and assesses risks and disclosures related to climate change throughinternal audits.

Society

ESG

03
060

Troubleshooting Guide
for Users

ESG

03

061

Society

Our safety andsecurity commitment:
Dating app "Tapple"
CyberAgent engages in a wide range of efforts to ensure the safety andsecurity of our services and products for users and business partners.
With our dating app, "Tapple," now having over 15 million members, weare focusing efforts on providing even stronger safety and security
measures in response to the growing demand for this service. In addition
to 24/7/365 monitoring patrols, we have also established a "Safety
Center" with guidelines on service safety measures. In addition tooffering LINE phone support for immediate contact for urgent concerns,
we also employ AI technology to quickly detect unauthorized users.
Tapple became the first dating app to be certified under the "Certification
System for Internet-Based Marriage Partner Introduction Services" inAugust 2022, a rating system for safe and secure online marriageoriented dating services established by the "Institution for Matchmaking
Service." By leveraging our strong technological advantages, we willcontinue striving to improve the convenience of our services andimplement measures that ensure safe and secure use.

Telephone
Consultation Service

Safety Tips
on Tapple

062
ESG

03

Society

Women's empowerment
At CyberAgent, we aim to create an atmosphere where women can naturally
play an active role by pursuing the kind of workplace environment in which
each and every employee finds their work meaningful and rewarding.
By providing support for major life events through "macalon packages,"
our system for promoting women's active participation in the workplace,and offering positions that suit the individual's career trajectory, we haveestablished an environment that makes constant challenge a reality. We
broaden employees' career options by bringing out their full potential,
and the experience gained from taking on challenges is beneficial to bothindividuals and the company's growth.
CAramel, a female cross-departmental group established in September
2017, also promotes a wide range of activities such as creating
opportunities for cross-divisional exchanges led by female employees. As
a result of its establishment as a measure to encourage communication, it
has recently served as a forum for cultivating better mutual understandingby holding seminars with both female and male employees. We willcontinue our efforts in the medium to long term to create a comfortableworking environment where employees can work in a manner that suits
their individuality while stretching their potential to the fullest.

List of "macalon packages" for promoting women's active
participation in the workplace「WE〜we × women's empowerment〜」
Women's Empowerment Project, Internet Advertising Headquarters
WE〜we × women's empowerment〜

CAramel, a female cross-departmental group

063

03
ESG

Society

Fostering a workplace where female employees
can naturally play an active role.
How does CyberAgent promote women's empowerment?
CAramel, a female cross-departmental group whose concept is to "support everyone's ability to work intheir own style," has been implementing a number of initiatives since its launch in 2017.
We spoke with three women on the topic of promoting women's empowerment: Senior Managing
Executive Oﬃcer Yuko Ishida; CAramel President Yui Suzumura; and CAramel Vice President Rika Shirato.

You were appointed Senior Managing Executive Officer in October
2020, and are also responsible for promoting women's empowerment
in the workplace. The term "women's empowerment" is commonly
heard these days, but how do you really feel about it?

-

Ishida: I view the promotion of women's empowerment as a first step
toward diversity and inclusion (D&I), but if you look at Japan overall, I
don't feel that enough is being done. If we just look at the word
"women's empowerment," it gives the impression that women are given
preferential treatment. However, what we are striving to do is create asituation where women can naturally play an active role based on
pursuing an environment where all employees can play an active role,
whether male, female, young, or old.
CyberAgent certainly seems to have a culture that encourages
people to take on challenges regardless of gender, doesn't it?

-

Ishida: We have always had an environment in which both genders canplay active roles, but we've also made conscious efforts to serve as aprime example of women's empowerment in the workplace. In the past,
there were several female employees that did not want to be inmanagerial positions despite being talented and capable. To address
this, we actively provided opportunities that led to women realizing thatmanagerial positions can be meaningful and rewarding and also helped
instill confidence, which resulted in more alternatives for women atwork. I believe our current situation is allowing us to provide morevariation in working styles and career development.
It's been two years since I became Senior Managing Executive Officer,
and I feel that the atmosphere at Board of Directors meetings is one
where all opinions are valued. Of course, I won't be the last female
board member, and I look forward to passing the torch to the next
generation.

064

Society

ESG

03

Suzumura-san and Shirato-san, how do you feel about
women's working conditions at CyberAgent?

Ishida-san, how do you feel about the activities of the female
cross-departmental group "CAramel"?

--Suzumura: Since the time I joined CyberAgent as a graduate
hire, I've never noticed any specific bias against either women ormen, but after speaking with people outside the company, I've
come to realize that it is not the common practice everywhere.

Ishida: Since CyberAgent has such a deep-seated culture oftrying to improve the company on our own, having a project like
CAramel that constantly updates its activities is extremely
valuable to us as a company. It's amazing to see how CAramel
takes a bird's-eye view of the entire company and takes theinitiative to identify organizational issues, and then initiates
solutions on its own.

Shirato: In my case, I was a mid-career hire, but I feel that
CyberAgent provides an ideal working environment since
employees are given equal opportunities in terms of job
assignments regardless of their hiring route, gender, or otherattributes, and the people around are very supportive. I've alsob e e n a p p o i n t e d a s a n e x e c u t i v e o ff i c e r o f o n e o f o u r
subsidiaries, where I have the opportunity to gain management
experience, and I am currently in the process of launching a new
business that I expressed interest in.

Rika Shirato, Executive Oﬃcer, Lunamoto Inc./Vice Yui Suzumura, Product Owner and CAramel PresiPresident, Caramel.
dent, CL Business Division.

Suzumura: CAramel was born from a suggestion at an Ashita
Kaigi (Meeting for Tomorrow), and it launched in 2017 basedon the concept of "supporting everyone's ability to work intheir own style." At that time, many female employees hadconcerns about their careers and work styles because they had
no relatable role models. Because of this, we held events on
a variety of topics aimed at increasing their career options. In
keeping with CyberAgent's policy that "taking challenges andhaving job security are one set," we have promoted a number of
initiatives. Through CAramel, we’ve gotten to know many female
employees, and an increasing number of them say it helped
them find others to talk to.
Shirato: I was also involved in updating the "macalon package,"
our system for promoting women's active participation.
As individual values continue to diversify and new ways ofworking emerge in the wake of the COVID-19 pandemic,
the idea of "providing support for egg-freezing" arose from adesire to improve and update the system. After successfullycommunicating our desire to help female employees enjoy
long careers at CyberAgent, this initiative was resolved andimplemented by the Board of Directors.

Yuko Ishida, Senior Managing Executive Oﬃcer, CyberAgent. Yuko Ishida joined CyberAgent as a new
graduate hire in 2004. After taking on the position of Senior Sales Manager and Head of Sales in the Advertising Business Department, she worked as an Ameba producer before becoming President and CEOof two wholly owned subsidiaries in 2013 and 2014. She became an Executive Oﬃcer in 2016, followed by
Senior Managing Executive Oﬃcer from October 2020. She concurrently serves as General Manager of
the Personnel Hiring and Training Division.

How would you like to improve the company in the years tocome through the promotion of women's empowerment?

-

Ishida: I'd like to create an environment where women are
naturally involved in management decision-making. The key
word here is "naturally." It's not difficult for any company toadjust numbers, such as the ratio of women in managerial
positions, but that's not the intrinsic purpose. I hope to continue
contributing to the company's growth by increasing the numberof people involved in important decision-making while also
firmly establishing patterns in which female employees can play
active roles.

065
ESG

03

SocietySports support
Soccer: FC Machida ZELVIA

Through its support of sports, CyberAgent aims to expand
sports culture, develop human resources, and contribute to
local communities. CyberAgent owns J-League club "FC
Machida ZELVIA," which is a consolidated subsidiary, as wellas pro wrestling entertainer CyberFight, Inc., and "M.League,"an organization promoting mahjong as a professional sport inJapan. We are also supporting the next generation of future
leaders, such as amateur golfer Miyumi Teramachi, withwhom we signed a sponsorship agreement in May 2022.
By supporting sports culture, we aim to continue community
vitalization efforts as a part of fulfilling our corporate social
responsibility.

Golf: Miyumi Teramachi

Mahjong: Shibuya ABEMAS

Dance: CyberAgent Legit

Pro-wrestling DDT/NOAH

066

03
ESG

Corporate Governance067

Corporate GovernanceTotal number of directors :03

Directors who are not Audit andSupervisory Committee members :ESG(Outside Directors)

5

8
Directors who are Audit
and Supervisory Committee members :(2)(Outside Directors)

3(2)

Governanceoverview
Internal

External

CyberAgent is committed to conducting
corporate activities in accordance with laws,
regulations, social norms, ethics, and otherrules as working to enhance the supervisory
functions, transparency, and fairness of theBoard of Directors.

Outside director
ratio

Female director
ratio

Board of Directors
participation ratio

Age of theyoungest officer

Average age

50% 13% 100% 44

*

32

*

Introduction of
measures toprevent takeover bids

None

* Figures include directors and executive officers. (As of the end of September, 2022)

068
ESG

03

Corporate Governance

Changes in ourmanagement
structure
CyberAgent has been reinventing its
management structure by utilizing a uniquesystem that is tailored to the company's
growth phases and business strategy. To

2008

2018

2021

Using a competitive environment
to promote the execution of
directors' duties and develop the
management teamStrengthening the management
system in response to ourdiversifying business portfolio

Further strengthening and enhancing
our management structure bymaking a clear separation between
supervision and execution

CA8

Bulking up

We introduced a system in which two of theeight directors are replaced every two
years. While the system continued for 10
years, it ended in 2018 when the systemreached its limits due to difficulty inreplacing key positions.

New executive officer structure

In order to realize a more robust
management structure in the medium tolong term, the number of directors was
temporarily increased to improve risk
management amid diversifying business
operations.

further strengthen corporate governance,

A clear separation between supervision andexecution was established to further
strengthen corporate governance. In addition
to transitioning to a new executive officer
structure, the company also realized thestructure in which half of the board members
are from outside the company to further
enhance the supervisory function of directors.

in December 2020 CyberAgent transitioned
to a new executive officer structure witha clear separation between supervisionand execution, and to further enhancesupervisory

functions,thestructureensures that half of the board members
are from outside the company.

Outsidedirectorratio

0%Outsidedirector
ratio

20 %

Outsidedirector
ratio

50 %

069
ESG

03

Corporate Governance

Susumu Fujita

Representative Director, CEO

Directors

Yusuke Hidaka
Director

Go Nakayama
Director

Toko Shiotsuki

Director (Full-time Audit andSupervisory Committee member)

FemaleNumber of shares held: 89,121,600
Number of board meetings attended:
13/13(100%)

Number of shares held: 3,002,000
Number of board meetings attended:
13/13(100%)

Koichi Nakamura

Kozo Takaoka

Number of shares held: 1,591,507
Number of board meetings attended:
13/13(100%)

Number of shares held: 38,400
Number of board meetings attended:
13/13(100%)

There are a total of eight directors,
including three directors who are membersof the Audit and Supervisory Committee.
Of these, four are outside directors.

Outside Director

Outside Director

Masao Horiuchi

Outside Director (Audit andSupervisory Committee member)Tomomi Nakamura

Outside Director (Audit andSupervisory Committee member)

Independent

Independent

Independent

Independent

Number of shares held: 10,000
Number of board meetings attended:
13/13(100%)

Number of shares held: 0
Number of board meetings attended:
13/13(100%)

Number of shares held: 160,000
Number of board meetings attended:
13/13(100%)

Number of shares held: 0
Number of board meetings attended:
11/11(100%)** The number of meetings of the Board of Directors attended by Tomomi Nakamura is the number of meetings since the Ordinary
General Meeting of Shareholders held on December 10, 2021, when he assumed the position of Outside Director of the Company.

070

Susumu Fujita

Senior Managing Executive Officer, CTO
Technology

Riku Yamada

Yosuke Sato

Executive officer

Executive officer

Tomohisa Nomura
Executive officer

Yuka Yokoyama
Executive officer
FemaleExecutive officer

Chihiro Sano

Takahito Naito

Managing Executive Officer

Rina Takai

Executive officer

Creative work

Executive officers

Tatsuhiko Taniguchi

Managing Executive Officer

Promoted

Takunori Fujii

ESG

Norishige Nagase

CEO, President

Hiroyuki Ishii
Executive Officer

Executive officer
FemaleNew

Eiji Koike

Managing Executive Officer

New

Daiki Nakata
Executive officer

Advertising business

03

Media BusinessCorporate GovernanceYasuo Okamoto

Executive Vice President

Gaku Miyata

Takahiro Yamauchi

Senior Managing Executive Officer

Noriko Kawai

Executive officer

Executive officer
FemaleNew

Promoted

Increased by 5 members from FY2023.
Female executive officers comprise 18%,
or 5 members.

New

Company-wide functions

Go Nakayama

Senior Managing Executive Officer

Yusuke Hidaka

Executive Vice President

Yuko Ishida

Senior Managing Executive Officer
FemaleKoki Ukita

Managing Executive Officer

Tetsuhito Soyama

Managing Executive Officer, CHO

Yuta Iizuka

Senior Managing Executive Officer

Masato Sato
Executive officer

Investment Development BusinessFemaleNew Business

Executive officer

Game Business

Hino Takeuchi

Hirofumi Kondo
Executive officer

New

Takehiro Takeda

Managing Executive Officer

Technology
Promoted

071

Corporate Governance

Board of Directors

ESG

03

·There are a total of 8 directors (7 male and 1 female). Of these, 5 are directors who are not Audit and Supervisory Committee members (2 of the 5 are outside
directors), and 3 are directors who are Audit and Supervisory Committee members (2 of the 3 are outside directors).
·The Board meets regularly once a month and also holds unscheduled meetings whenever necessary·Meetings in 2022: 13

Board of directors
and audit
and supervisorycommittee

Questionnaire on the Eﬀectiveness of the Board of Director Meetings
At the end of September 2022, the Board of Directors (including Audit and Supervisory Committee members) was given a questionnaire on the effectiveness ofBoard of Directors meetings.
The resulting questionnaire scores were high overall, demonstrating that the company's Board is functioning properly and maintaining its effectiveness. The
questionnaire found no indications of problems with the number of Board of Directors meetings, the scope and quantity of proposals, or the time set aside fordeliberation. The questionnaire also found that directors have an appropriate decision-making process that is rooted in adequate coordination with outside
directors as well as discussions that consider budget, earnings outlook, risk of impact on business or management, etc., and that the board strives to improve
corporate value, selection and concentration, and business expansion not only in the directors' specific realm of responsibility, but also across the entire company.
In response to the survey results, steps have also been taken to improve the content of report materials in order to further facilitate discussion.

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 andappropriateness 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 2022

Structure of the Audit and Supervisory Committee

Toko Shiotsuki

Audit and Supervisory Committee
Meeting attendance: 13/13（100%）

Director,full-time Audit and Supervisory Committee member

Masao Horiuchi

Audit and Supervisory Committee
Meeting attendance: 13/13（100%）

Outside Director, Audit and Supervisory Committee member
OutsideIndependent

Tomomi Nakamura

Audit and Supervisory Committee
Meeting attendance: 11/11(100%)

Outside Director, Audit and Supervisory Committee member
OutsideIndependent

Matters Concerning the Policy for Determining Individual Directors'
Remuneration

ESG

03

072

Corporate GovernanceDirector
remuneration

At its meeting on December 10, 2021, the company's Board of Directors adopted thefollowing resolution regarding the policy for determining individual remuneration for
directors (excluding Audit and Supervisory Committee members). Resolutions frommeetings of the Board of Directors are adopted based on consulting with aRemuneration Advisory Committee of which more than half of the members are
independent outside directors and obtaining their approval report. With regard toeach director's remuneration for the current fiscal year, the Board of Directors has
confirmed that the determination of remuneration and the content of determined
remuneration are consistent with the decision-making policy adopted by the Board of
Directors, and that reports from the Remuneration Advisory Committee arerespected. Accordingly, remuneration decisions are deemed to be in line with theaforementioned decision-making policy.
The amount of individual remuneration for directors who are members of the Audit
and Supervisory Committee is determined through consultation with Audit andSupervisory Committee members.

Matters Concerning the Resolution on Directors' Compensationfrom the General Meeting of Shareholders
At the 20th Ordinary General Meeting of Shareholders held on December 15, 2017,
the maximum remuneration amount for directors (excluding Audit and Supervisory
Committee members) was set at 800 million yen per year (including 30 million yen peryear for outside directors), and it was resolved that the maximum remuneration
amount for directors serving on the Audit and Supervisory Committee is 30 million
yen per year. At the 24th Ordinary General Meeting of Shareholders held on
December 10, 2021, the remuneration amount for outside directors was revised froma maximum of 30 million yen per year to a maximum of 60 million yen per year
(excluding Audit and Supervisory Committee members). This revision was based on
consideration of several factors that include a future increase in the number of
directors, the increased role required of outside directors, and the economic climate.
At the conclusion of the aforementioned Annual General Meeting of Shareholders,
there were a total of 8 directors, consisting of 5 directors not serving on the Audit andSupervisory Committee (2 of which are outside directors) and 3 directors serving on
the Audit and Supervisory Committee (2 of which are outside directors).

Remuneration for Directors and Audit & Supervisory
Committee Members

Number of
Total
personspaid
remuneration
remuneration

Officer category

Total remuneration
by typeMonetary
rewardStock options

Directors(excluding Audit
and Supervisory
Committee members)

5 people 267 million yen 172 million yen

95 million yen（2 people） 38 million yen

34 million yen

4 million yen

4 people

19 million yen

19 million yen-（3 people）(Of which,outside director)

8 million yen

8 million yen

-

Total
9 people 287 million yen 191 million yen(Of which, outside （5 people） 47 million yen 42 million yen
executives)

95 million yen
4 million yen(Of which,outside director)
Directors(Audit and Supervisory
Committee members)

Stock option system
As compensation for the performance of duties, stock options are granted
based on CyberAgent's consolidated sales with the objective of fur therboosting motivation and morale, raising cor porate value, and fur therstrengthening corporate management.

073
ESG

03

Corporate GovernanceManagementtransparency

Basic policy for information disclosure
CyberAgent strives to provide prompt information to shareholders and investors based on transparency and fairness. We are also dedicated to timely andproactive disclosure of information in accordance with the Financial Instruments and Exchange Act and Tokyo Stock Exchange timely disclosure rules, as wellas information we deem valid for better understanding the company.

Initiatives to Annual General Meeting of Shareholders
We are accelerating the delivery of convocation notices to ensure that our shareholders have sufficient time to review the agenda. Convocation notices aresent out at least one week prior to the statutory date (at least three weeks before the General Meeting of Shareholders). In addition, before notices are sentout, their Japanese and English versions are posted on CyberAgent’s corporate website (released on November 15, 2022.), on the Tokyo stock exchange
website, and also on the electronic voting platform for rights holders. Exercise of voting rights through the internet has been available since 2007.

Our commitment to the Sustainable Development Goals

SDGs

04

075

In support of the Sustainable Development Goals (SDGs) adopted at the 2015 United Nations Summit,

O ur C o mm i t me nt to t h e S u s t a in a bl e De vel op m e n t G oa l s ( SDG s )04

CyberAgent is committed to contributing to the SDG goals by utilizing the know-how we have built up over the years through.

076

04
O ur C o mm i t me nt to t h e S u s t a in a bl e De vel op m e n t G oa l s ( SDG s )Contributing to the advancementof Japanese society by creating
value through our businesses
Since its establishment in 1998, CyberAgent has continued to change with thetimes, expanding its business from internet advertising to media and gamebusinesses. Based on our conviction that continuing to expand into new markets
and create new businesses will lead to the sustainable growth of the company
and the vitalization of society, we have consistently taken on new challenges.
CyberAgent launched the "Ashita Kaigi (Meeting for Tomorrow)" in 2006 as ameeting for proposing and discussing new businesses and methods of problem
solving. Through the meeting, we have established a total of 37 subsidiaries todate, which have contributed to our business growth by generating cumulative
sales of roughly 363.9 billion yen* and operating profit of roughly 49.7 billion yen*.
Under our purpose, "To break through stagnation with new power and theinternet," defined in 2021, CyberAgent is committed to contribute to Japan's
economic growth by creating value through know-how and services built up over
the years, and striving to realize a vibrant society by creating employment.
*As of end of September 2022

"Ashita Kaigi"(Meeting for Tomorrow)

077

04
O ur C o mm i t me nt to t h e S u s t a in a bl e De vel op m e n t G oa l s ( SDG s )Realizing a reliable environmentthat employees can unleash theirpotential
Because CyberAgent believes that maximizing employees' capabilities is a primary
driver of business development, we have implemented a variety of measures tocreate an environment that allows them to work long-term with peace of mind,
and a personnel system that draws out their full potential.
We have prioritized hiring since our founding and, as of fiscal 2022, employ over
6,000 executives and employees*1. In a stress check we administer to employees,
a remarkable 87.0%*2 responded that their work is "meaningful and rewarding."
To enable all highly-capable personnel, regardless of gender, to play an active rolein the company, we support a flexible work style that accommodates the changes
in life stages through "macalon," our system for ensuring that women can workwith reliability. Women hold 22.3% of all management positions*3. CyberAgent
will continue to provide an environment in which each and every employee canbe confident in taking on challenges with full peace of mind.

*1Number of executives and employees at CyberAgent and its subsidiaries (as of end of September 2022)*2Percentage of respondents who answered I am motivated to work in the stress test.
*3 Employees who perform managerial or supervisory duties and employees above a certain grade such as managers (as of end of September 2022)

078

04
O ur C o mm i t me nt to t h e S u s t a in a bl e De vel op m e n t G oa l s ( SDG s )An R&D organization dedicatedto innovatiaon and contributing tosocial implementation
CyberAgent founded "Media Data Tech Studio" in 2011 as an R&D organization
specializing in large-scale data processing, data analysis, and machine learning.
Later in 2016, CyberAgent launched "AI Lab" as an R&D organization tasked
with conducting research and development on a broad range of AI technologies
related to digital marketing.
By establishing facilities suited to research activities and creating opportunities
for interaction among engineers, CyberAgent provides an environment where
they can focus on developing innovative services. It also allows researchersand engineers who specialize in machine learning, natural language processing,
econometrics, computer vision, and 3DCG to achieve a balance between researchand business implementation. CyberAgent also actively promotes academiaindustry collaboration with universities conducting cutting-edge research. We willcontinue to create innovation through research and development, with the goalof contributing to business implementation and practical application in society.

05

Facts

080

ESG Data
Environment

Facts

05

CO2 Emissions Data [t-CO2]（t-CO2）

Scopes

FY2021*1

Scope １

321

Scope 2（Market-based）

11,053

FY2022Emissions Intensity per Net Sales

Nonconsolidated

Consolidated

Consolidated

Coverage*1

Total

48

-

-

55

-

-

Male

70.8%

-

-

60.0%

-

-

Female

29.2%

-

-

40.0%

-

-

Total

34.1

-

-

33.3

-

-

Male

34.1

-

-

33.8

-

-

Female

32.5

-

-

32.4

-

-

Average age(t-CO2/million yen)
FY2021

Data Items

FY2022371★
12,169 ★

Emissions intensity per net sales*2- Market-based

0.0171*1

Age distribution of employees

0.0176

Nonconsolidated

Coverage*1

20s

Total

36.2%

37.6%

87.8%

39.2%

35.4%

97.5%

30s

Total

43.9%

44.4%

87.8%

40.8%

44.7%

97.5%

Scope 2（Location-based）

10,782

12,002 ★

Total

19.1%

17.0%

87.8%

19.1%

18.5%

97.5%

11,374

12,540 ★

Emissions intensity per net sales*2- Location-based

40s

Total Emissions of Scope 1 and Scope 2（Market-based）

0.0167*1

0.0174

50s

Total

0.8%

0.9%

87.8%

1.0%

1.4%

97.5%

Total Emissions of Scope 1 and Scope 2（Location-based）
Scope 3

11,103
14,15812,373 ★

Consolidated net sales （million yen）

666,460

710,575

60s

Total

21,634

Data Items

Scope 3 Emissions per Category [t-CO2]
Category

1（t-CO2）

Data Items

FY2021

FY2022

Purchased goods and services

4,895*1

10,798 ★

Public cloud services

4,684

3,572

3

Fuel- and energy related activities(not included in scope 1 or scope 2)

1,589

1,763 ★

6

Business travel

2,298

4,172 ★

7

Employee commuting

692*1

1,180 ★

13

Downstream leased assets

ー

149 ★

Data Itemst*1 Revised to reflect appropriate values in accordance with the FY2022 calculation method (updated in March 2023)*2 Emissions intensity per net sales: (emissions of Scopes 1 + 2)/Consolidated net sales (in millions of yen)

Average length of service

Boundary of Data (CO2 emissions)Classification

subsidiaries as of September 30, 2022. Consolidated subsidiaries and some offices are
excluded if the impact is deemed negligible based on insignificant numbers of employees oroffice use. Also note that data that differs in scope from totaled items is listed separately.
To learn more, please access the CO2 Emissions data page on our corporate website.

97.5%

-

-

Male(years)

6.1

-

-

5.9

-

-

-

6.5

-

-

8.0%

7.9%

100%

8.0%

8.4%*8100%% of employees with disabilities in overall workforce*6

Ratio

-

2.35%

100%

-

2.39％

100%

Average annual salary of employees

Total(JPY)

7,711,000--

8,170,693--% of employees taking childcare leave

Male

6.3%

-

-

13.2%

-

-

Female

100%

-

-

100%

-

-

Total

100%

-

-

93.9%

-

-

Male

0

-

-

0

-

-

69

-

-

67

-

-

Utilization rate of paid leave

Ratio

48.6%

-

-

49.4%

-

-

Total annual working hours (average per person)

Total(hours)

2,079.6--

1,925.0--

No. of employees using work from home program*7

Total

1,634

-

-

1,865

-

Ratio

96.0%

-

-

94.3%

-

-

957

100%

CO2 Emissions Data

FY2021

FY2022

Nonconsolidated

Consolidated

Coverage*1

Nonconsolidated

Consolidated

Coverage*1

100%

-

10,336100%

Total no. of employees: gender composition

Total

1,702

5,593*4

100%

1,977

6,337

100%

Male

66.2%

66.7%

88.6%

65.8%

67.9%

99.0%

33.3%

88.6%

34.2%

32.1%

99.0%

33.8%
Media Business

-

809

100%

-

871

100%

Internet Advertisement Business-

1,593*4

100%

-

1,936

100%

Game Business

-

2,091

100%

-

2,378

100%

Investment Development Business

-

10

100%

-

11

100%

Other Businesses

-

695

100%

-

784

100%

Company-wide functions

-

387

100%

-

357

100%

Female

339

735

100%

New graduate hires

61.4%

-

-

43.9%

36.1%

100%

Total

Mid-career hires

38.6%

-

-

56.1%

63.9%

100%

% of employees taking stress test

Total

65.0%

-

-

-

Total

87.0%

-

-

-

-

% of employees taking regular medical checkups

Total

98.0%

-

-

To be publishedat a later date
To be publishedat a later date
To be publishedat a later date-

% of employees who responded they are satisfied
with their job in the stress test--

*1 Rate of data coverage for CyberAgent, Inc. and its 110 consolidated subsidiaries *2 Consolidated officers and employees: Total number of directors and employees of CyberAgent, Inc. and its consolidated subsidiaries *3 Temporary employees:
Includes temporary dispatch workers, contract employees, and part-time employees *4 MicroAd Inc. became non-consolidated on June 29, 2022, and is reflected retroactively from FY2021. Accordingly, 351 employees and 28 annual average
temporary employees in FY2021, and 12 annual average temporary employees in FY2022 were deducted. *5 Employees who perform managerial or supervisory duties and employees above a certain grade such as managers * 6 The number of
employees working at a special-purpose subsidiary CyberAgent Will, Inc. *7 Users of remote work system *8 An error in the figures has been corrected. (March 9, 2023)

Governance

Items

Classifictaion

Directors

Total

FY201815FY201915

FY202015

FY2021

8

FY20228-

3,355*4100%-

3,852*4100%% of outside directors

20.0%

20.0%

20.0%

50.0%

50.0%

Media Business

-

466.5

100%

-

553.3

100%

% of female directors

Total

6.7%

6.7%

12.5%

12.5%

12.5%

Internet Advertisement Business-

1,207.3*4

100%-

1,571.5*4

100%

Directors who are not Audit and Supervisory Committee members

Total

12

12

12

5

5

Game Business-

1,414.3

100%-

1,429.5100%

Directors who are Audit and Supervisory Committee members

Total

3

3

3

3

3

Investment Development Business

-

7.8

100%

-

7.8

100%

Board of Directors participation ratio

Total

100%

100%

100%

100%

Other Businesses

-

216.3

100%

-

222.3

100%

Average age(Figures include directors and executive officers)

Age

Company-wide functions

-

43.3

100%

-

67.8

100%

Age of the youngest officer

Age

-

-

-

31

32

-

57.1%

100%

-

59.4%

100%

% of females in executive officer or higher positions

Total

8.3%

8.3%

8.3%

10.7%

18.2%

100%

Executive Officers

-

-

100%
-

43

44

Composition ratio by occupation

Business

-

23.9%

-

23.2%

Total

-

-

-

23

28

Creator

-

19.0%

100%

-

17.5%

100%

Male

-

-

-

91.3%

82.1%

No. of employees in managerial positions*5

Total

270

478

69.0%

289

753

99.7%

Female

-

-

-

8.7%

17.9%

Male

80.0%

79.9%

69.0%

76.1%

77.7%

100%

Female

20.0%

20.1%

69.0%

23.9%

22.3%

100%

Engineer

100%

-

542

Total

Total

-

6.6

Ratio

No. of employees working shorter hours forchildcare reasons

9,472

Segment

0.0%

6.1

Return to work ratio after childcare leave-

Average number of temporary employees

0.0%

-

Calculation Method and Independent Assurance Report

Total

Segment

87.8%-

Please access the CO2 Emissions data page on our corporate website for details.

Total number of consolidated officers and employees*2
and temporary employees*3

Female0.0%

6.3

Turnover

Basic Information
Items

0.0%

years

Female(years)

In principle, the boundary of data is the company (CyberAgent, Inc.) and its 99 consolidated

No. of employees hired

SocialFY2022

Classification

Since FY2022, CO2 emissions data have been externally assured by KPMG AZSA Sustainability Co., Ltd. (Values denoted by the "★ ".)The FY2022 CO2 emissions have increased compared to the previous fiscal year, which was impacted by the COVID-19 spread due to the rise in the ratio of employees coming to work and the number of physical events.

FY2021

Items% of new appointments to managerial positions

081［1］Changes in Key Management Indicators

Facts

05

Accouting period(October 1 - September 30)

Financial Information
Contents［ 1］ Changes in Key Management Indicators［ 2］ Consolidated Statements of Income［ 3］ Consolidated Statements of Comprehensive Income［ 4］ Consolidated Balance Sheets［ 5］ Consolidated Statements of Cash FlowsFY2018FY2019FY2020

FY2021

FY2022

Net sales(Unit: ¥ million)

419,512453,611478,566

666,460

710,575

Ordinary income(Unit: ¥ million)

28,56530,49333,863

104,694

69,464

Net income attributable to owners of the parent(Unit: ¥ million)

4,849

1,694

6,608

41,55324,219Comprehensive income(Unit: ¥ million)

11,416

5,670

20,16665,37635,963

Total net assets(Unit: ¥ million)

109,250

110,352

127,678

194,145

222,915

Total assets(Unit: ¥ million)

225,484

224,876

260,766

382,578

383,698

Equity per share(Unit: ¥)162.02157.09177.45254.98285.15

Basic earnings per share(Unit: ¥)

9.63

3.36

13.1

82.3

47.89

Diluted earnings per share(Unit: ¥)

9.21

3.05

12.28

77.9

45.33

Shareholders'equity ratio(%)

36.2

35.2

34.3

33.7

37.6

Return on equity (%)

6.0

2.1

7.8

38.1

17.7

Price earnings ratio (times)

156.98308.55123.45

26.32

25.43

Cash flows from operating activities

28,394

14,91737,028109,609

17,946-31,412

Cash flows from investing activities-22,410-18,000-16,621-28,537

Cash flows from financing activities

39,748-4,662-2,590374-2,801

Cash and cash equivalents at end of year

92,37984,563102,368

184,082

168,035

Total no. of employees

4,853

5,139

5,344

5,944

6,337

［ 6］ Return to Shareholders Ratios(In addition, average number of temporary employees)

2,885

3,284

3,104

3,383

3,864

［ 7］ Consolidated Statements of Changes in Shareholders Equity* 1 The Company conducted a four-for-one stock split of common stock as of April 1, 2021. The Basic earnings per share, Equity per share and Diluted earnings per share are calculated
assuming that the said stock split was conducted at the beginning of the previous consolidated fiscal year. * 2 The accounting standards on revenue recognition (ASBJ Statement No.29,
March 31, 2020) have been applied since the beginning of the current consolidated fiscal year. Key management indicators shown for the current consolidated fiscal year are those after theapplication of the said accounting standards. * 3 Number of employees is the total number of full-time permanent employees for each period * 4 "Partial Amendments to AccountingStandard for Tax Effect Accounting, etc." (ASBJ Statement No.28, February 16, 2018) have been applied since the beginning of the 22nd fiscal period. Key management indicators shown for the
21st fiscal period are those after the application of the said accounting standards. The indicators, etc. are the indicators, etc. after applying the relevant accounting standards, etc. retroactively.

［ 8］ Net sales and operating income data by each reportable segment［ 9］ Net sales and operating income data by reportable segment(quarterly for 2 years)*Described according to Consolidated Financial Results for the Fiscal Year Ended.

082［2］Consolidated Statements of Income［3］Consolidated Statements of Comprehensive Income(Unit: ¥ million)

Facts

05

Accouting period(October 1 - September 30)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Gain on valuation of investment securities
Subsidy income
Foreign exchange gains
Rent income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Equity in losses of associated companies accounted for by the equity method

Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary gain
Gain on sales of investment securities
Gain on sales of investments in subsidiaries and associated companies

Gain on sales of non-current assets
Insurance income
Other
Total extraordinary gain

Accouting period(October 1 - September 30)
Extraordinary loss
Loss on impairment of long-lives assets
Relocation expenses
Other
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income tax
Net Income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

FY2018FY2019FY2020

FY2021

FY2022

419,512289,496130,015
99,85230,163453,611
320,311
133,300
102,474
30,825478,566
337,918
140,648
106,768
33,880666,460
434,465
231,995
127,613104,381710,575
491,417
219,158
150,044
69,114

91
110
70
25
-

75
372

140
110
92
71
120
535

135
118
132
63
69
519

135
341
150
10
70
153
861

139
384
163
110
201
999

10
1,773
186
1,970
28,565

11
605
37
213
867
30,493

14
367
71
83
536
33,863

13
17
314
132
548
104,694

86
54
313
193
648
69,464

281
2
696
981

749
147
1,015
1,912

79
9
0
88

1,578
429
1
429
184
2,201

805
330
6
1,633

-

FY2018

4,741
127
629
5,498
24,047
14,530-599
13,931
10,1165,266
4,849

FY2019

9,502
2,769
713
12,985
19,42014,896-1,53813,357
6,062
4,368
1,694

FY2020

4,589
1,159
5,749
28,202
15,218-1,272
13,945
14,2577,648
6,608

FY2021

5,102
1,071
6,173
100,722
36,523-2,472
34,051
66,671
25,11741,553

FY2022
7,742
557
8,299
62,79821,155
2,229
23,38539,413
15,194
24,219(Unit: ¥ million)

Accouting period(October 1 - September 30)
Net Income
Other comprehensive income
Unrealized gain (loss) on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted
for using equity method

Total other comprehensive income (loss)
Comprehensive income(Comprehensive income attributable to)
Owners of the parent
Non-controlling interests

FY2018FY2019FY2020

FY2021

FY2022

10,116

6,062

14,257

66,671

39,413

1,176
122
0
1,300
11,416

-251
-132
-8
-392
5,670

5,865
-58
102
5,909
20,166-1,383183
95-1,29565,376-3,51670-3-3,45035,963

6,041
5,374

1,420
4,249

12,517
7,649

40,24625,12920,64915,313

083［4］Consolidated Balance Sheets(Unit: ¥ million)

Facts

05

Accouting period(October 1 - September 30)
AssetsCurrent assets
Cash and deposits
Trade notes and accounts and notes receivable
Trade notes and accounts receivable and contract assets
Inventories
Operational investment securities
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Buildings and structures, net
Tools, furniture and fixtures, net
Other
Total property and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

FY201892,381
49,994750
14,816
12,712-243
170,411

FY201984,56554,917924
14,23914,093-77
168,662

FY2020102,368
58,5502,078
24,096
16,674-93
203,674

FY2021

181,451
75,3003,226
18,96922,832-130
301,650

FY2022

165,907
4,262
16,457
72,371
34,887-36
293,850

4,116
5,467
867
10,450

6,392
4,925
1,679
12,998

8,025
4,655
560
13,241

9,761
5,221
1,757
16,74011,346
5,846
1,781
18,974

1,578
13,244
13,183573
28,5791,196
7,006
15,711474
24,3881,192
8,710
14,004601
24,5094,957
10,814
8,766
1,903
26,442

4,843
5,076
10,205
1,927
22,054

6,748
126
4,343
4,790
-17
15,99155,021
51
225,484

8,210
243
5,640
4,711
-20
18,78556,172
41
224,876

8,186
356
5,875
4,893
-14
19,29657,04744
260,766

22,061
492
8,454
6,792
-97
37,70280,88542382,578

22,907226
6,783
18,896-17
48,79789,82621
383,698* "Partial Amendments to Accounting Standard for Tax Effect Accounting, etc." is applied from FY2019.The change of accounting standard took effect retroactively to FY2018.

(Unit: ¥ million)

Accouting period(October 1 - September 30)
Liabilities
Current liabilities
Trade accounts payable
Other payables
Short-term bank loans
Income taxes payable
Current portion of convertible bonds
Other
Total current liabilities
Non-current liabilities
Convertible bonds
Long-term bank loans
Provision for long service rewards for employees
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total other comprehensive income
Stock acquisition rights
Non-controlling interests
Total Equity
Total liabilities and equity

FY2018FY2019FY2020

FY2021

FY2022

38,34012,286900
7,069
13,852
72,44938,151
11,563940
7,014
13,08070,74942,966
13,5191,080
9,458
20,84487,86756,055
17,735
1,037
29,72336,162
140,71459,212
15,9542,380
5,036
20,02327,407130,014

40,637
91
1,247
1,386
329
90
43,784116,234

40,434
83
1,409
1,795
40
10
43,774
114,523

40,331
22
1,586
1,851
1,414
13
45,220133,088

40,228
1,174
1,851
1,974
1,293
1,196
47,718
188,433

20,102
3,750
2,787
2,250
371
1,505
30,768160,783

7,203
5,758
63,789-622
76,1297,203
6,181
61,090-459
74,015

7,203
8,048
63,529-315
78,466

7,203
11,198100,794-67
119,128

7,239
11,636
119,204-1
138,079

5,191
235
5,427
988
26,705109,250
225,484

5,000
152
5,153
925
30,258110,352
224,876

10,952
109
11,062977
37,171
127,678
260,766

9,517
237
9,755
1,320
63,940
194,145
382,578

5,887
298
6,185
1,747
76,903
222,915
383,698

084［5］Consolidated Statements of Cash Flows［6］Return to Shareholders Ratios(Unit: ¥ million)

Accouting period(October 1 - September 30)

FY2018FY2019FY2020

FY2022

FY2021

Accouting period(October 1 - September 30)

05
Facts

FY2018FY2019FY2020

FY2021

FY2022

Income before income taxes

24,047

19,42028,202

100,72262,798

DOE(Dividend on Equity)*1
ROE(Return on shareholders' equity)*2

Depreciation and amortization

8,771

8,924

8,719

10,111

8,685

Dividend ratio*3

83%245.2%

64.9%

13.4%

29.20%

Loss on impairment of long-lived assets

4,741

9,502

4,589

5,102

7,742

Dividends per share

32yen

33yen

34yen

11yen*4

14yen*5

Cash flows from operating activities

Decrease (increase) in investment securities for sale
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in trade notes and accounts receivable and contract assets

Increase (decrease) in trade notes and accounts payable
Decrease (increase) in prepaid expenses
Increase (decrease) in advances received
Increase (decrease) in other payables

273-1,655-1,246--2,7804,107-5,142-55-3,6204,802-16,525
12,778

-

112

3,553

-2,584--4,207

1,036-1,562

3,119

3,943

-1,217-12,786---

10,549Other, net

847

47

2,367

2,954

Sub-total

Increase (decrease) in consumption taxes payable

1,325
4,479
-

41,04529,59050,487127,050

62,879Interest and dividends income received

154

147

149

373

419

Interest expenses paid

-10

-11

-14

-17

-54

Income taxes paid

-12,795-14,808-13,594-17,797-45,298

Net cash provided by (used in) operating activities

28,394

14,91737,028109,609

17,946

Cash flows from investing activities

Purchases of non-current assets and investment property-4,019-6,157-4,095-3,834-16,926

Purchase of intangible assets-14,472-11,096-9,939-8,632-9,164Purchases of investment securities

-

-

-

-10,999-1,965

Payments for sales of subsidiaries' shares resulting in a change inconsolidation scope
Proceeds from sales of subsidiaries shares resulting in a change inconsolidation scope

-

-

-

-7

-1,637

-

-

-

1,780

-

Other, net-3,918-746-2,586-1,495-1,717

Net cash provided by (used in) investing activities-22,410-18,000-16,621-28,537-31,412

Cash flows from financing activities

2,373

Increase(decrease) in short-term loans payable

-

-

-

-202

Proceeds from long-term loans payable

-

-

-

-

3,181

-

308

2,001

-617
4,016

-1,769-4,022--4,026--4,157-1,696-4,290--5,556

-

180

1,875

1,454

-

Other, net

43,772-1,125-613-805-1,029Net cash provided by (used in) financing activities-2,801

Payments of dividends to investment partners
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid
Purchase of treasury shares of subsidiaries
Proceeds from the sales of subsidiaries' shares without a change in thescope of consolidation-

39,748-4,662-2,590374

Foreign currency transaction adjustments on cash and cash equivalents

-48

-113

-39

267

292

Net increase (decrease) in cash and cash equivalents

45,684-7,85917,777

81,714-15,975

Cash and cash equivalents at beginning of year

46,61392,37984,563102,368

184,082

81

42

27

-

-72

92,37984,563102,368

184,082

168,035

Increase (decrease) in cash and cash equivalents resulting from changeof scope of consolidation

Cash and cash equivalents at end of year

5.0%

5.2%

5.1%

5.1%

5.20%

6.0%

2.1%

7.8%

38.1%

17.70%*1 Set the DOE 5% or higher from FY 2017 as a guideline*2 ROE×Dividend Payout Ratio=DOE*3 "Partial Amendments to Accounting Standard for Tax Effect Accounting, etc." is applied from FY2019.The change of accounting standard took effect retroactively to FY2018.
*4 A four-for-one stock split of common stock with a record date of March 31, 2021 and an effective date of April 1, 2021. Pre-shareholder split conversion cost is 44 yen.
*5 Added to the agenda of the Annual General Meeting of Shareholders to be held in December 2022.

085(Unit: ¥ million)［7］Consolidated Statements of Changes in Shareholders Equity

Accouting period(October 1 - September 30)(Unit: ¥ million)

Accouting period(October 1 - September 30)

FY2018FY2019FY2020

FY2022

FY2021

Facts

05

Capital stock

Balance at the beginning of current period
Balance at the beginning of year, as restatedIssuance of new shares(Exercising share option)
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Balance at the beginning of year, as restated
Changes of items during the period
Issuance of new shares(Exercising share option)
Disposal of treasury stock
Change in treasury shares of parent arising from transactions with
non-controlling shareholders

Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Cumulative effect of changes in accounting policies
Balance at the beginning of year, as restated
Changes of items during the period
Dividends from surplus
Change of scope of consolidation
Profit attributable to shareholders of parent
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the beginning of current period
Cumulative effect of changes in accounting policies
Balance at the beginning of year, as restated
Changes of items during the period
Issuance of new shares(Exercising share option)
Dividends from surplus
Disposal of treasury stock
Change in treasury shares of parent arising from transactions with
non-controlling shareholders

Change of scope of consolidation
Profit attributable to shareholders of parent
Total changes of items during the period
Balance at the end of current period

7,203
7,203

7,203
7,203

7,203
7,203

7,203
7,203

7,203
7,203
35
7,239

4,827

5,758

6,181

8,048

-

-

-

-

11,198
11,198

16
914

158
264

130
1,736

201
2,948

931
5,758

422
6,181

1,867
8,048

3,149
11,19863,31663,78961,09063,529----100,794-17
100,777-4,025
-351
4,849
473
63,789-4,026-366
1,694-2,69861,090-4,157
-11
6,608
2,439
63,529-4,288-5,560041,55337,264
100,794-231
24,21918,427
119,204

-674

-622

-459

-315

-67

52
52
-622

162
162
-459

144
144
-315

247
247
-67

66
66
-1

74,672

76,12974,01578,466

119,128-17
119,110-4,025
69
914
-351
4,849
1,456
76,129-4,026
320
264
-366
1,694
-2,11374,015-4,157
274
1,736
-11
6,608
4,450
78,466-4,288449
2,948
041,553
40,662
119,128

35
65
84
252
438
11,63671-5,560131
84
20
24,21918,968138,079

Accumulated other comprehensive income
Net unrealized gain on securities
Balance at the beginning of current period

Balance at the beginning of year, as restated
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustments
Balance at the beginning of current period
Balance at the beginning of year, as restated
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total other comprehen sive income
Balance at the beginning of current period
Balance at the beginning of year, as restated
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the beginning of current period
Balance at the beginning of year, as restated
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Non-controlling interests
Balance at the beginning of current period
Balance at the beginning of year, as restated
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period

FY2018FY2019FY2020

FY2022

FY2021

4,085

5,191

5,000

10,952

-

-

-

-

9,517
9,517

1,106
1,106
5,191

-191
-191
5,000

5,952
5,952
10,952-1,434-1,434
9,517-3,630-3,630
5,887

149
-

235
-

152
-

109
-

237
237

85
85
235

-82
-82
152

-42
-42
109

127
127
237

60
60
298

4,235

5,427

5,153

11,062

9,755

-

-

-

-

9,755

1,192
1,192
5,427

-273
-273
5,153

5,909
5,909
11,062-1,307-1,307
9,755-3,569-3,569
6,185

769

988

925

-

-

-

977
-

1,320
1,320

218
218
988

-62
-62
925

52
52
977

342
342
1,320

426
426
1,747

19,10826,70530,25837,171

63,940----63,9407,597
7,597
26,7053,552
3,552
30,258

6,913
6,913
37,171

26,76926,76963,94012,962
12,962
76,903

98,785109,250

110,352

127,678

194,145

-

-

-

-

194,127-4,025
0
69
914
-351
4,849
9,008
10,464109,250-4,026
320
264
-366
1,694
3,216
1,102
110,352-4,157
274
1,736
-11
6,608
12,874
17,325
127,678-4,288
0
449
2,948
0
41,55325,80566,467
194,14571-5,560013184
20
24,2199,819
28,787
222,915-17

Cumulative effect of changes in accounting policies
Balance at the beginning of year, as restated
Changes of items during the period
Issuance of new shares(Exercising share option)
Dividends from surplus
自己株式の取得
Disposal of treasury stock

Change in treasury shares of parent arising from transactions with
non-controlling shareholders

Change of scope of consolidation
Profit attributable to shareholders of parent
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

086［8］Net sales and operating income data by each reportable segment［9］Net sales and operating income data by reportable segment (quarterly for 2 years)(Unit: ¥ million)

Facts

05

Principal services provided by each reportable segment are summarized below:
Accouting period[Reportable Segment][Details of Services Belonging to the Segment]

Media Business

ABEMA, WINTICKET, and Ameba.

Internet Advertisement Business

Advertising, AI,and Digital Transformation(DX)Game BusinessGame application for smartphone

Investment Development BusinessCorporate venture capital and fund operation

Other Businesses

Crowdfunding service and sports business(October 1 September 30)(Unit: ¥ million)

Accouting period(October 1 September 30)

Net sales

Reportable Segment

FY2018Total

FY2020

FY2021

FY2022

Media Business

31,48937,30457,09876,128112,142Internet Advertisement
Business

241,451

260,212269,396

302,083

376,819

Game Business

146,552

152,224

155,861

262,365

228,387

Investment Development
Business

4,263

6,428

4,092

6,441

4,438

Other Businesses

17,59818,947

19,59919,441

25,716

Reconciliations*2-21,844

Total

OperatingincomeFY2019セグメント
1Q-21,506-27,481453,611478,566

666,460

710,575

Media Business-17,764-17,838-18,267-15,141-12,419

Internet Advertisement
Business

25,303

20,60921,071

22,57024,464

Game Business

21,34026,04030,33796,44560,531

Investment Development
Business

2,631

4,593

3,068

4,408

2,524

Other Businesses

1,819

907

1,300

479

-16

Reconciliations*2-3,166-3,486-3,630-4,381-5,97030,16330,82533,880104,381

69,114*1 Service content of each segment are as of end of September 2022
*2 Segment profit adjustments include company-wide expenses, which are primarily general and administrative expenses that are not included in reportable segments.

Total

セグメント
1Q

4Q

2Q

3Q

4Q

20,428

19831

19914

22696

24,99627,34229,50430,300

80641

81854

82231

87,831

97,024

99,57392,391

Game Business

29,954

63983

92398

76416

58,32969,013

46,20954,836

Investment Development
Business

5,314

448

345

334

2,461

876

16

1,085

Other Businesses
Reconciliations*2

5,223

5674

4800

6047

6,347

6,624

6,354

6,391

-6,493

-7094

-7076

187724-8,876-9,776-9,501-8,776

131,014

163,483

192235179728171,090

191,102

172,156

176,227-3,926

-3458

-3831

-3926

-3,840-1,964-3,975-2,640Internet Advertisement
Business

5,705

7236

5203

4426

5,746

7,472

6,191

5,055

Game Business

1,137

23210

44242

27856

17,13021,399

9,898

12,104

Media Business-36,929

3Q

76,587

Total

Operatingincome2Q

Internet Advertisement
Business

Media BusinessNet sales

FY2022

FY2021
Reportable Segment

Investment Development
Business

4,636

-61

28

-195

1,969

337

-187

405

Other Businesses
Reconciliations*2

289

270

3

-83

152

209

-5

-372

-783

-1323

-1065

28078

-1,353-1,731-1,550-1,336

7,058

25,874

44581

26868

19,80425,723

10,371

13,216*1 Described according to Consolidated Financial Results for the Fiscal Year Ended.
*2 Quarterly data are calculated by numbers rounded down to the million of the financial statements.

Company Overview

06

088

06
Company Over view

VisionTo create the 21st century's leading company

089

Focus on Internet growth markets.

06

Seize opportunities to enter adjacent markets.

Company Over view

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.

Mission Statement

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.

090

06
Company Over view

Company Over view

Company Name

CyberAgent, Inc.

Office Locations

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo,
Sendai, Kanazawa, Kyoto, Saga, Okayama, Okinawa
United States (Guam),

Head Office

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

China (Beiing),

Representative

Susumu Fujita

Taiwan (Taipei),Foundation

March 18, 1998

Korea (Seoul),

Capital7,239 million yen (As of the end of September, 2022)

Employment Headcount6,472 (As of the end of September, 2022)

AGM

DecemberBusiness Portfolio

Media Business
Internet Advertising BusinessGame Business
Investment Development Business

Vietnam (Ho Chi Minh City),*Main operating locations including consolidated subsidiaries

091

Company Over view

Company Over view

06

Stock Information

Top Holders

Name

Number of Shares% O/S

Listed Market

TSE Prime market

Code

4751

1

Susumu Fujita

89,121,600

17.6 %

Number of Shares Outstandin

505,924,000 shares

2

The Master Trust Bank of Japan,

81,898,700

16.2 %

Number of Shareholder

52,041

3

Custody Bank of Japan, Ltd.

37,271,600

7.4 %

4

THE BANK OF NE W YORK MELLON 140051

16,530,502

3.2 %

5

SSBTC CLIENT OMNIBUS ACCOUNT

11,825,931

2.3 %

6

JP MORGAN CHA SE BANK 385635

8,321,166

1.6 %

7

STATE STREE T BANK WEST CLIENT - TRE AT Y 505234

7,352,216

1.5 %

8

STATE STREE T BANK AND TRUST COMPANY 505225

6,617,876

1.3 %

9

RBC ISB S/A DUB NON RESIDENT/TREATY RATE UCITS-CLIENTS ACCOUNT

6,157,965

1.2 %

10

BNYM AS AGT/CLTS 10 PERCENT

5,896,378

1.2 %*A s of September 30, 2022

Type of Shareholders

3.4 %0.01 %
0.5 %

25.3 %
Type of
Shareholders

43.7%*A s of September 30, 2022

Investor Inquiries

Major Shareholders*As of the end of
September, 2022

Download financial data

27.0 %
Foreign Institutions and Individuals

Securities Company

Individual,other

Treasury Stocks

Financial Institutions

Domestic Corporations

Excel

Institution% O/S

Submitting Date

Baillie Gifford & Co※

12.11 %

August 15, 2022

Sumitomo Mitsui Trust Asset Management Co., Ltd.※

6.21 %

January 20, 2022

Nomura Asset Management Co.,Ltd.※5.39 %

October 6, 2020BlackRock Japan Co., Ltd.※

5.03 %

February 6, 2019

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

092

06
Company Over view

Investor relations
activities

CyberAgent promotes understanding of its management policies and businessstrategies mainly through information disclosure on its investor relations website,meetings with institutional investors, and participation in conferences. CyberAgentis dedicated to delivering prompt and fair information disclosure and continuing to
improve our IR activities.

Inclusions

Number of Meetings with Institutional Investors

Nikkei Stock Average

JPX-Nikkei Index 400

Nikkei 500 Stock Average

Nikkei Stock Index 300

Nikkei 225 Climate Change
1.5 C Target Index

Japan New Economy Index

MSCI Japan Empowering
Women Index (WIN)MSCI Japan Index

MSCI ACWI Index

FTSE All-World Index

FTSE JAPAN Index【ESG】
MSCI Japan ESG SelectLeaders Index【ESG】
MSCI Japan Empowering
Women Select Index【ESG】
FTSE Blossom Japan
Sector Relative Index

ESG Ratings

FY2022 Summary of Activities

1,125
Number of Videos on IR channels【ESG】
S&P/JPX Carbon
Efficient Index

We are working to improve our ESG rating by disclosing ESG information, which has become
increasingly important in recent years, on our corporate website.

27(as of end of November 2022)

Percentage of Institutional Investors by Region

2%

Sustainalytics

17%

THE USE BY CyberAgent, Inc. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ( MSCI ) DATA, AND
THE USE OF MSCI LOGOS, TR ADEMARKS, SERVICE MARKS OR INDE X NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF CyberAgent,
Inc. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERT Y OF MSCI OR ITS INFORMATIONPROVIDERS, AND ARE PROVIDED AS-IS AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI.

34%
In September 2022, CyberAgent, Inc. received an ESG Risk Rating of 16.9 andwas assessed by Sustainalytics to be at LOW risk of experiencing materialﬁnancial impacts from ESG factors.
©2022 Sustainalytics. All rights reserved.

47%■ Japan (Includes sell-side analysts)■ ASIA excl.Japan■ North America■ Europe

093

会社概要

Strengthening communication

Company Over view

06

with our Investor website
Our corporate website enhances the company's ability to communicate
information with owned media and to ensure compatibility with all types ofdevice. In addition to earnings and financial information, we proactively use
SNS to not only communicate qualitative information on financial andoperating results, but also technological capabilities, competitive advantage,
governance, empowering women, and more

IR Channel

Go to IR Channel

The IR Channel was created to provide video content for shareholders and investors. It includes videos
that explain the competitive advantages of our business activities, including core competencies, in aneasy-to-understand manner.

CyberAgent Delivers DX for Partners with "Technology" and "Implementation Capability

094

Company Over view

Company Over view

06

Find us on social media

LINE

CEO Susumu Fujita on Twitter@cyberagent_ir

twitter.com/susumu_fujita

Facebook

Twitter

https://www.facebook.com/CyberAgent-Inc-239078019444837/

twitter.com/CyberAgent_PR

Youtubeyoutube.com/c/cyberagentof ficial

095

会社概要

Company Over view

06

Disclosure policy
Basic policy for disclosure
CyberAgent, Inc. ( the "Company") will swiftly provide shareholders and investors with information whileemphasizing transparency, fairness. The Company will disclose information under the timely disclosure
regulations specified by the Financial Instruments and Exchange Act and the Tokyo Stock Exchange.
Simultaneously, the Company provides prompt and proactive disclosure of material information that is
not subject to the timely disclosure regulations, which could influence investors' investment decisions.

Method for disclosing information
According to the rules, the Company discloses the information subject to the timely disclosure
regulations on the Tokyo Stock Exchange website through the timely disclosure network (TDnet). The
released information, as well as the information that is not subject to the timely disclosure regulations
will be uploaded to the Company's investor relations website to inform investors accurately and equally.

Forward-looking statement
We may provide earnings forecasts in addition to the earnings forecasts we file with the Tokyo Stock
Exchange, where we are listed. Also, news releases, earnings presentations, question-and-answer
sessions at analyst meetings, etc., may contain information about our plans, prospects, strategies, etc.
The information the Company publishes is based upon the currently available information, which
involves risks and uncertainties. There can be no assurance that forward-looking statements will proveaccurate or achieved, as actual results may differ materially from those anticipated in such statements.

Quiet Period
In order to prevent the leakage of important corporate information and ensure fairness, we have a quiet
period "from two weeks before the end of the fiscal quarter to the earnings release day" as a general
rule. In this period, the Company refrains from answering questions regarding our results and giving
relevant comments. However, this does not apply to the occurrence of material events that we believe
will have a significant impact on the investment decisions of investors, even during this period.

Forward-looking statement
The future information, such as the earnings forecast, written in this document is based upon thecurrently available information, which involves risks and uncertainties. There can be no assurance thatforward-looking statements will prove accurate or achieved, as actual results may differ materially fromthose anticipated in such statements.

Contact
IR&SR Division, CyberAgent, Inc.

Investor Inquiries

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