CyberAgentWay
CyberAgent, Inc.
TSE4751

Integrated Report
December, 2020

New Normal

In 2020, the spread of the COVID-19 has changed the way people live and work, creating what
we now call the "new normal." While prioritizing the safety and security of business partners
and employees, CyberAgent has been implementing a series of measures that harness one of
our key strengths ― adaptability to change. These measures have led to the creation of new
business opportunities, including the launch of our digitalization support business as well as
the full-scale launch of our online live business. The structure of our Board of Directors, which
has continued to evolve with each stage of growth, will also transition to a new configurationthat provides clear separation between supervision and implementation in order to further
strengthen our governance. While adapting to the new normal at CyberAgent, we are dedicatedto continuing to realize sustainable growth.

Yusuke Hidaka

Executive Vice President

Susumu Fujita
CEO, President

Yasuo Okamoto

Executive Vice President

Takahiro Yamauchi

Senior Managing Executive Officer

Masahide Koike

Senior Managing Executive Officer

Go Nakayama

Senior Managing Executive Officer

Yuko Ishida

Senior Managing Executive Officer

Yuta Iizuka

Senior Managing Executive Officer

Riku Yamada

Managing Executive Officer

Tetsuhito Soyama

Managing Executive Officer, CHO

Norishige Nagase

Managing Executive Officer, CTO

Takahito Naito

Managing Executive Officer

Koki Ukita

Managing Executive Officer

Hiroyuki Ishii
Senior Executive Officer

Eiji Koike
Senior Executive Officer

Masato Sato
Executive Officer

Daiki Nakata
Executive Officer

Yosuke Sato
Executive Officer

Tomohisa Nomura
Executive Officer

Takehiro Takeda
Executive Officer

Takunori Fujii
Executive Officer

Tatsuhiko Taniguchi
Executive Officer

Gaku Miyata
Executive Officer

Yuka Yokoyama
Executive OfficerTo create the 21st century's leading company

CEO Message

In 2020, despite the impact of the COVID-19 pandemic on the advertising industry, CyberAgentachieved a new record sales. Our TV & video entertainment medium, ABEMA, which launched in April

2016, has also built up a viewership under its "Check ABEMA First" concept, achieving over 59 million
downloads in just four and a half years of operation. Given the current circumstances, we havediversified our peripheral businesses, including online live entertainment delivery. And we strongly feelthat ABEMA has excellent media potential.

Since our founding in 1998, we have followed our vision "to create the 21st century's leading
company" by continuing to expand business in the rapidly evolving internet industry. Following in thefootsteps of our internet advertising and game businesses, we will continue to develop media

business centered on ABEMA as a pillar of our mid-to-long-term strategy. While at the same time,creating social value through supporting sports, fostering the next generation of engineers and otherinitiatives, and pursuing sustainable management sets us for new growth stages.
Thank you for your continued support of CyberAgent.

Susumu Fujita
Representative Director
CEO,President

CyberAgent, Inc.

CyberAgent Way 2020 | CyberAgent Integrated Report

01
02

03
04
05

The New Normal at CyberAgent

012

Corporate Governance016

Sustainable Development Goals

0 24

CyberAgent's Value Creation Model

027

Value Creation Strategy

0 32Media Business

035

Internet Ad Business

0 51

Game Business

0 59

Adaptability to Change for Realizing Sustainable Growth067

Risks & Opportunities

071

ESG Topics

090

Environment

093

Commitment to Society

096

Governance

10 9

Facts

113

Financial Information

115

Company Overview

125

01

T h e N e w N o r m a l a t C y b e rA g e n t

Corporate Governance
The New Normal at CyberAgent

0 17

The New Normal at CyberAgent

Changes in Our

Management Structure
CyberAgent has been reinventing its

management structure by utilizing a uniquesystem that is tailored to the company's growthphases and business strategy. To further

2008

2018

2021

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

Further strengthening and enhancing
our management structure by making aclear separation between supervisionand execution

CA8

Bulking up

New executive officer structure

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

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

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 the structure in which half of the board
members are from outside the company to further
enhance the supervisory function of directors.

strengthen corporate governance, in December

2020 CyberAgent transitioned to a new executive
officer structure with a clear separation between
supervision and execution, and to further

Outside Director

enhance supervisory functions, the structure

Ratio

0%

Outside Director
Ratio

20 %

Outside Director
Ratio

50 %

ensures that half of the board members are fromoutside the company.

FY 2000

FY 2005

FY 2008

FY2014

FY 2018

FY 2021

・The company launched “CA 18” an executive officer system that replacesthree
officers, once per year.
・Takeover defense measures have been eliminated.

0 18

The New Normal at CyberAgent

Governance

Outline of the Corporate Governance Structure

Corporate governance structure

Company with Audit and Supervisory Committee

Directors who are not Audit and Supervisory Committee members (Outside directors)

5 (2)Directors who are Audit and Supervisory Committee members (Outside directors)

3 (2)Executive Officer System

None

Standards for appointment and independence of outside directors
Introduction of anti-takeover measures

Strategic Shareholdings

Conforms to Tokyo Stock Exchange's "Practical Considerations when Appointing
Independent Directors/Auditors"
None
The Company may own "Strategic Shareholdings" if, for instance, it is expecting tostrengthen business collaboration. The execution of voting rights of strategic shareholdings
shall be handled appropriately based on careful review of proposal content.

Corporate Governance Reporthttps://www.cyberagent.co.jp/files/user/pdf/way/governance/cg/cgr_en.pdf

Accounting Auditor

Deloitte Touche Tohmatsu LLC

0 19

The New Normal at CyberAgent

GovernanceDirectors

Susumu Fujita
Representative Director

Apr. 1997

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

Mar. 1998

Established CyberAgent, Inc. and was appointed as President.

Jun. 2012

Vice Representative Director, the Japan Association ofcurrent position

New Economy (JANE)

No. of Company's shares owned: 24,639,600
Board Meeting Attendance: 13/13（100%）

Yusuke Hidaka
Director

Reason of appointment
He has represented the company since its founding in 1998 and has many years of experience toensure proper decision-making and management oversight of the company's broad range ofbusinesses. Therefore, we appoint him for a director as he is a suitable candidate for the Group's

current position

further growth in the future.

Apr. 2015

President, AbemaTV, Inc.

Apr. 2015

President, AbemaNews, Inc.

Oct. 2018

Director, Zelvia Co.,Ltd.

Apr. 1997

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

Mar. 1998

Established CyberAgent, Inc. and was appointed as Managing

current position
current position

current position

Director.
Oct. 2010

Vice President , CyberAgent, Inc.

May. 2011

Director, Cygames, Inc.

Dec. 2020

Director & Executive Vice President, CyberAgent, Inc.

Reason of appointment
Since he founded the Company with Susumu Fujita, he has been engaged in launching various
Internet businesses. Since he entered the game business in 2009, it grew rapidly along with the
expansion of the smartphone game market and has become one of the Company's key

current position
current positionbusinesses. Therefore, we appoint him for a director because of his contribution to the expansion
and supervision of the business based on his extensive management experience.

No. of Company's shares owned: 868,600
Board Meeting Attendance: 13/13（100%）

Go Nakayama
Director

Apr. 1998

Joined Sumitomo Corporation.

Aug. 1999

Joined CyberAgent, Inc.

Dec. 2003

Director, CyberAgent, Inc.

Apr. 2006

Managing Director, CyberAgent, Inc.

Jul. 2015

Director, Makuake, Inc.

Dec. 2020

Director & Senior Managing Executive Officer, CyberAgent, Inc.
current position

No. of Company's shares owned: 373,076
Board Meeting Attendance: 13/13（100%）* As of the end of September 2020

current position

Reason of appointment
He has broad experience in setting up subsidiary companies, business management, as well ashead office operations since he joined the Company. Therefore, we appoint him for Director as heis conversant with a wide range of business fields and commits to improve corporate governance,compliance, risk management, and group management.

020

The New Normal at CyberAgent

Koichi Nakamura
Outside Director

Independent

Apr. 2008

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

Apr. 2012

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

Jun. 2014

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

Dec. 2016

Outside Director, CyberAgent, Inc.

current position

Reason of appointment
Mr. Nakamura had contributed to business development for many years at Japan Recruit Center

Co., Ltd. (currently Recruit Holdings Co., Ltd.) and served as a director and vice president. As an
outside director of the Company, he provides practical and objective advice on all aspects ofmanagement and supervision of business execution with his wealth of experience and broad
insights into business promotion and corporate management. Based on his track record, theNo. of Company's shares owned: 2,500

Company believes that he can continue to provide appropriate advice on the decision-making

Board Meeting Attendance: 13/13（100%）

process of the Board of Directors and that he will be able to adequately execute his duties as anindependent director.

We have judged that he meets the Tokyo Stock Exchange's independence standards and that
there is no risk of conflicts of interest with general shareholders. Therefore, we have appointed him
as an independent director and outside director.

Kozo Takaoka
Outside Director

Independent

Apr. 1983

Joined Nestlé Japan Ltd.

Nov. 2010

Representative Director, President & CEO, Nestlé Japan Ltd.

Apr. 2015

Representative Director, K & Co. K.K.

Aug. 2019

Representative Director, KT Digital K.K.

Mar. 2020

Resigned: Representative Director, President & CEO, Nestlé

current position
current position

Mr. Takaoka has a wealth of experience and a wide range of insights into corporate management
and is a leading marketing expert in Japan, having driven management and contributed to thebusiness's development as Representative Director and CEO of Nestlé Japan Ltd. for many years.
We believe that his support for management from a highly independent and broad perspective, asJapan Ltd.
Apr. 2020

Advisor, CyberAgent, Inc.

Dec. 2020

Outside Director, CyberAgent, Inc.

No. of Company's shares owned: 0

Reason of appointment

current position

well as advice on the execution of marketing operations will enhance the corporate value of theGroup.

We have judged that he meets the Tokyo Stock Exchange's independence standards and that
there is no risk of conflicts of interest with general shareholders. Therefore, we have appointed him
as an independent director and outside director.

* As of the end of September 2020・Independent director: They meet the Tokyo Stock Exchange's independence standards

・There is no risk of conflicts of interest with each director and the Company.

021

The New Normal at CyberAgent

GovernanceDirectors who are the Audit and Supervisory Committee members *Toko Shiotsuki

Apr. 1996

Joined Japan Airlines Co., Ltd.

Director (Full-time member of the
Audit and Supervisory Committee)

Oct. 1999

Passed the second part of the CPA examination.

Jul. 2000

Standing Corporate Auditor, CyberAgent, Inc.

Dec. 2017

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

current position

No. of Company's shares owned: 9,600
Board Meeting Attendance: 13/13（100%）

Ms.Shiotsuki is a certified junior accountant and holds a J.D. degree (professional) from the Universityof Tokyo. She largely contributes to appropriate decision-making and management supervision of theBoard of Directors. She also brings diversity to the Board of Directors and provides practical advice
from various perspectives, playing a leading part in improving auditing practices and strengthening
corporate governance. Therefore, we appoint her as she oversees the Company's management basedon extensive insights and broad experience in accounting, auditing, and legal affairs for operatingcompanies.

Masao Horiuchi

Apr. 1995

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

Reason of appointment

Director (Member of the Audit andSupervisory Committee)

Mar. 1998

Outside Auditor, CyberAgent, Inc.

May. 2010

Certified Public Tax Accountant

Jul. 2017

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

Since Mr. Horiuchi took office as an Outside Director of the Company in December 2017, he has raised
frank discussions with management regarding possible risks based on his wide experience and insightand offered advice on strengthening internal control and corporate governance. Going forward, we
continue to expect him to supervise the Board of Directors from an independent standpoint when
making decisions.He has been responsible for corporate management departments and internal
controls for many years, and has extensive experience and wide insights regarding internal control andcorporate governance as a director of UNEXT Co., Ltd. (currently USEN-NEXT HOLDINGS Co., Ltd.)He is a certified tax accountant and has specialized knowledge in finance, accounting and tax.

Independent

HOLDINGS, Co., Ltd.)
Dec. 2017

current position

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

current position

No. of Company's shares owned: 44,600
Board Meeting Attendance: 13/13（100%）

Isao Numata

Apr. 1988

Director (Member of the Audit andSupervisory Committee)

Jul. 2000

Representative Director, Five Eyes Networks Co., Ltd.

Dec. 2000

Outside Auditor, CyberAgent, Inc.

Dec. 2009

Representative Director, SBL Co., Ltd.

Dec. 2017

Outside Director serving on the Audit and Supervisory

Independent

No. of Company's shares owned: 64,732
Board Meeting Attendance: 13/13（100%）* As of the end of September 2020

Reason of appointment

Joined Daiwa Securities Co., Ltd. (present: Daiwa Securities

Reason of appointment

Group Inc.)

Mr. Numata has a wealth of experience and extensive knowledge of corporate management, the stock
market, and overseas markets, having run a consulting firm for many years that helps companies gopublic and expand overseas. Since assuming office as an outside director of the Company, he has
engaged in wide-ranging discussions from diversified viewpoints using his experience and insights andprovided advice based on his extensive information network, contributing to the strengthening of theCompany's audit system and corporate governance. Based on this track record, the Company believes
that he will continue to be able to provide appropriate advice from an independent standpoint when
making decisions at the Board of Directors and that he is well qualified to serve as an independent
director.

current position

Committee, CyberAgent, Inc.

・Independent director: They meet the Tokyo Stock Exchange's independence standards

current position

current position

・There is no risk of conflicts of interest with each director and the Company.

022

The New Normal at CyberAgent

GovernanceDirector Compensation

Policy for directors' compensation decisions

Amount of remuneration for directors and auditors

Within the remuneration limit approved at the general meeting of shareholders , the Board of Directors consults theNomination and Remuneration Advisory Committee on the amount of remuneration for each director (excluding
directors who are Audit and Supervisory Committee members) , and determined based on the content of the report.
The amount of remuneration for the directors who are members of the Audit and Supervisory Committee isClassification

Number of issued
members

Amount of compensationin million yen

Director who is NOT the Audit andSupervisory Committee members

12

564

（1）

（16）

3

19

（2）

（8）

15

583

（3）

（24）

determined through discussions among the directors who are members of the Audit and Supervisory Committee.

Establishment of Nomination and Remuneration Advisory Committee（Outside director）

The Company established a Nomination and Remuneration Advisory Committee as the Board of

Directors' optional advisory committee on October 30, 2019. The committee mostly consists of

Director who is the Audit andSupervisory Committee members

remuneration function of the Board of Directors, and further enhancing corporate governance.

（Outside director）

Independent Outside Directors to strengthen independence and objectivity of the nomination andStock Option System
Stock options are granted based on CyberAgent's consolidated sales with the objective of further

Total（Outside director）

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

* The amount of remuneration for Directors includes the amount of expenses (94 million yen) during this fiscal year
related to the stock acquisition rights granted as stock options.

023

The New Normal at CyberAgent

GovernanceManagement Transparency

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 and proactive disclosure of information in accordance with the Financial Instruments
and Exchange Act and Tokyo Stock Exchange timely disclosure rules, as well as 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 toreview the agenda. Convocation notices are sent out at least one week prior to the statutory date (at least three

weeks before the General Meeting of Shareholders). In addition, before notices are sent out, their Japanese andEnglish versions are posted on CyberAgent's corporate website, 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.

For the 23rd Annual General Meeting of Shareholders to be held on December 11, 2020, we have asked ourshareholders to refrain from coming to the meeting in order to prevent the spread of the COVID-19 and to give top
priority to the safety and security of our shareholders.

Due to the circumstances, we will not be holding a company information briefing after the shareholders' meeting as
we have done in the past. The meeting will be streamed live on the internet, and videos of the business report andthe resolutions of the General Meeting of Shareholders will be available on our corporate website.

Sustainable
Development Goals
The New Normal at CyberAgent

025

The New Normal at CyberAgent

SDGs

Our commitment to the Sustainable Development Goals (SDGs)

Decent work andeconomic growth

In the growing industry of the internet, we continue to grow bycreating businesses and structures throughout the Group thatenable our talented people to the best of their abilities.

Quality education

CyberAgent supports the Sustainable Development Goals (SDGs) set by theUnited Nations and aims to contribute the 17 goals through our various services,
content, and partnerships.understanding the company.

CA Tech Kids, Inc. is promoting programming education forelementary school students.
"Tech Kids School," programming education service forCulture at CyberAgentelementary students Online coding course for kids "QUREO"

CyberAgent by the Numbers

Popularizing and promoting programming education at public

Creating job opportunities in rural areas

schools with local government

Promotion for employment of disabled people

Contributing to local communities by supporting programming
education

Industry,
innovation, andinfrastructure

We actively invest in research and development of the latest
technology and new businesses to contribute to thedevelopment of new industries.
"ABEMA" as an information infrastructure at the time of emergency
Pre-marketing platform "Makuake" for new products and services
Promote industrial transformation using AI with digital marketing at
its core
A R&D organization that contributes to business and corporate
innovation through the utilization of large scale data
Development base for the latest fundamental game technologies
Promoting the growth of the esports industry

Gender equality

In order to create an environment in which excellent employees,
regardless of gender, are highly motivated and can continue towork for a long time, we have a number of measures in place,including support for changes in life stages.
Ethical Business Guideline
Measures to support women "macalon"
Active women at CyberAgent by the numbers

026

The New Normal at CyberAgentGood health andwell-being

We are committed to supporting the healthy lives of ouremployees and many others.
Industry-academia collaborationwith Juntendo University｜

Peace justiceand strong
institutions"CARTE" an app to support self-control of the autonomic nervous

We are committed to sustainable management with increasedtransparency and soundness.
Ethical Business Guideline
Measures to strengthen corporate governancesystemIndividual counseling for employees, regardless of gender, formedical advice, including fertility

Responsible
consumption
and production

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

Reducing environmental impact

Partnerships forthe goals

We contribute to a better society through a variety ofpartnerships.
The Japan Association of New Economy,
Five companies including CyberAgent, and the Shibuya City
Board of Education have agreed to enrich programming educationin the city's public elementary and junior high schools.
FC Machida Zelvia concludes an agreement with the Machida
City Department of Community Welfare to promote efforts for thedevelopment of community welfare

02

C y b e rA g e n t 's Va l u e C r e a t i o n M o d e lCyberAgent's
Value Creation Model
Value Creation Model for Realizing Sustainable Growth0 31

CyberAgent's Value Creation Model

Risks

人材力

技術力

リスク

Superior
Creation

CyberAgent's
Value Creation Model
Focusing on the internet, a high-growth

変化対応力

創出力
Superior
Technology

industry, CyberAgent pursues sustainable

創出力

Sustainablebusiness
growthAdaptability
to change

growth by taking advantage of its
adaptability to change.

Superior
リスク
Talent技術力

人材力

External Environment

変化対応力

Contribution to
local
communities

Value Creation Strategy
Value Creation Model for Realizing Sustainable Growth

0 33

CyberAgent's Value Creation Model

Granblue Fantasy

Game

ns
atio
m
i
an messt n gaadc d osebusiness by using our operational andplacement

SynergyBusiness

In each of these, we are expanding ourMarketingMedia

internet advertising and game businesses.

At

technical advantages as a competitiveedge, also leveraging our strengths inAdcontent production, customer attraction,marketing, and sales to generate moresynergies.

sa

ABEMA

les

Ad

sp

Ameba

EM

Sales
ProfitCash

Outcome

Outcome Social value

Creation of new industries
Employment promotionest

New information infrastructures
Development of IT TalentA

Tappleacads ope r at i ons

CyberAgent ‘s main focuses are on media,

tc

c
tra

s

er

om

t
us

ital

C

Outcome Economic value

t

en

t
on

BanG Dream! Girls Band Party!

Dig

Business Model

Shadowverse

OutcomeBroaba

CyberAgentBusiness

Princess Connect! Re: Dive

B

A

Sa

ad

les

ve

Entertainment provision

of

rtis

eme

nts

Internet Ad
Business

Internet Ad Business
Ad Creative Busiess
AI Business

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

0 34

CyberAgent's Value Creation Model

CyberAgent's

Mid- to Long-Term Operating Profit Overview

Past Performance

We have made three major investments in the past. Currently, we are building up profits

With the spreading popularity of smartphones, we intensified our second upfront

make our media business, "ABEMA," a pillar of our mid- to long-term strategy.

phone-related services to smartphone business, which now accounts for some 90% of

in our internet advertising and game businesses while making upfront investments toGrowth Strategy

investment period from 2011 to 2014. We have shifted from PC and mobile
our consolidated sales.

2020 Top Publishers by Revenue

We have launched new businesses in stepwith the evolution of the internet industry,

Investment
in Video content
businessand strengthened upfront investment while
existing businesses were still strong. By

MediaBusinessmaturing new businesses into future pillarsof our business strategy, we have been able

Investment
in Smartphonebusinessto achieve sustainable growth.

Investment
in blogs

Game
Business

AD
Business

Japan

#2

(Left) Source

Global#21: "Top Publishers of 2020: Japan Rankings Edition," appannie.com
Total revenue on App Store and Google Play in Japan in 2019

(Right) Source : "Announcement of World's Top Publishers for 2020," appannie.com
Total revenue on the App Store and Google Play in 2019

Value Creation Model for Realizing Sustainable Growth

02

Media
Business
TV & Video Entertainment "ABEMA" launched in April 2016, attracting many viewers and achieving 59
million downloads* in four and a half years. We also offer a wide variety of entertainment services that
include the country's largest blog service "Ameba Blog" as well as dating app "Tapple."*The number of downloads: As of October 2020.

0 37CyberAgent's Value Creation Model0 38

CyberAgent's Value Creation Model01
A Hybrid Service of TV and Video

Viewing Style
Composition
Rate
September 2020

LinearOn-demand

57% 43 %On-demand viewing: Viewing times for "ABEMA Video", including free and paid viewing

0 39

CyberAgent's Value Creation Model

02
Available on Smartphones, PC, Tablets, and TV.

10 %
12 %
8%

69 %
DeviceUsage Rate
September 2020

Smartphones
Tablets
PC
TV
TV remotes released after 2019 are equipped with ABEMA buttons.

Compatible TV devices: As of April 2020 (depending on models)

040

CyberAgent's Value Creation Model

03
Around 24 channels in 24-hour Format
Enhanced video (on-demand) exclusive content for premium members regardlessof the programming offered on TV (linear).

Number of broadcast programs*1

TV (Linear)
About
About

700 series / month

5,500 episodes/month(Originals*2 About 600 episodes)

Video (On-demand)
About
About

1,100 series

26,000 episodes(Originals*2 About 8,000 episodes)*1 Number of broadcast programs: As of March 2020
*2 Originals: In-house produced programs including reality dating shows, variety shows, dramas, news, etc. ©AbemaTV041

CyberAgent's Value Creation Model

Focusing on original content aiming to build brand awareness of
ABEMA as “ABEMA is fun.”Exclusive Content on ABEMA Premium
ABEMA Exclusive:
LDH Festival Live Streaming(selected live concerts)
Available since
Monday, September 28

Co-production with
Toei VideoTo stream on Friday, January 1 onward©AbemaTV, Inc

Vid eoHigh quality shows of ABEMA have been recognized.
Two original shows were awarded at the 36th ATP Award TV Grand Prix.

” 5 ways to use ABEMA” - IR channel
This one-and-a-half minute video shows how ABEMA is used inJapan on a daily basis and its useful functions. Feel the charmand ease of use of "ABEMA", even if you live abroad.

* ATP Award TV Grand Prix: Japan’ s only televisionawards in which the year’ s most outstanding programs
are chosen by a jury of production company producers
and directors who are actual creators.

042

CyberAgent's Value Creation Model

04
Interactive Features of ABEMA
ABEMA offers a rich set of functions unique to internet
media, including the ability to comment on programs in real

Comment function

Support function

Multi-angle function

time and support programs with ABEMA Coins. As for
ABEMA PPV ONLINE LIVE, in addition to the actual live
video, it also includes a multi-angle function that allows
viewers to select their preferred angle of view from multiple
cameras at the live venue, providing added value that is
only available online.

* Multi-angle function is available for iOS app, Android app, Fire TV, Android TV, and PC only.

043

CyberAgent's Value Creation Model

05
The Key Demograhic Is Young People.
One in three Japanese middle and high school girls
watch the dating reality shows of ABEMA.

Demographics

22 %
40 %

Users
by ageUsers
by gender

53 %September 2020

September 2020

38 %
10s

20~30s35 or overMale

Female47 %044

CyberAgent's Value Creation Model

ABEMA
Business ModelABEMAMedia Business

Subscription
Paid content

Income is derived from ad revenue andProduction costs
Advertising expenses
Personnel expenses
etc.

Subscription income

Various functions

in-app purchase of premium member fees
(960 yen/month)which allows subscribers to watch

on-demand content and provides unlimited
features. About 75% of costs are content

Users

Advertising income

Free services

Ad placement

Advertiser

costs for program production or sourcing.
Related businesses income

Commission income fromPurchase
Products and refunds

Business Model
Growth Strategy
Competitive Advantages
Performance

PayPerView, shopping, gifting,public competitions, etc.

Cost

045

CyberAgent's Value Creation Model

GrowthStrategy
Media Business

ABEMA as a Pillar of Business and a Medium with Social Influence

Changes in WAU*

With 22 years of experience in providing internet services, we believe it is possible tomonetize media with customer pulling power, and we have been using Weekly Active

Users (WAU) as the key performance indicator (KPI) for ABEMA since its launch four

1,490

and a half years ago.

1,330

With news on the COVID-19 pandemic and other disasters of recent years, ABEMA has

achieved success in its full-coverage live broadcasts of press conferences, and has built

1,070

up a viewership base that thinks to "check ABEMA first" whenever something happens.

1,431

918

medium with social influence.

729
475

658

623
628
591 550123

550 568 510

Program Lineup for Emergencies

679

1,325

1,198

1,027 1,059 1,038

855

1,142

1,321
1,087

843

732

1,423

1,269 1,253

1,005

We are dedicated to continuing developing ABEMA as a pillar of our business and

1,456
1,403

1,038

928
829

269

Breaking News

Permanent Emergency Channel

Prime Minister's press conferences arebroadcast live without interruption

Provision of info on COVID-19

267

418

352

118

4 6

9

FY2016123

6FY20179

6FY2018

9

12

3

6

FY2019

9

12

3

6

9

FY2020Business Model
Growth Strategy
Competitive Advantages
Performance※WAU：WeeklyActive
ActiveUsers
Users※WAU：Weekly

046

CyberAgent's Value Creation Model

GrowthStrategy
Media BusinessRealizing Japan's Top MAU* with Many Users in the Younger Demographic
ABEMA is a hybrid service that offers both linear (TV) and on-demand viewing.

largest number of users in their teens and 20s in Japan.

Video, due to the fact that it offers around 20 channels, 24-hours-a-day for free* anddifferentiate itself from the competition and create new industries and markets.

It is currently the second largest video streaming service in Japan after Amazon Primerequires no membership registration. It also offers a wide range of content that targets

By evolving its services to be unlike any others in the world, ABEMA will continue tothe younger demographic who tend to view content via smartphones, and boasts the

MAU of Video Streaming Services*

MAU in teenagers to 20s*

Amazon prime video

Amazon prime video

ABEMA

ABEMA

TVer

TVer

GYAO!

Netflix

Netflix

GYAO!

Hulu

U-NEXT

U-NEXT

Hulu

dTV

DAZN

DAZN

dTV

TELASA

ParaviParaviTELASA

Business Model
Growth Strategy
Competitive Advantages
Performance* MAU of Video Streaming Services: Based on App Ape, an app analysis tool provided by Fuller, Inc. (as of March 2020)

047

CyberAgent's Value Creation Model

Competitive
Advantages
Media Business

Services that Continue Evolving through Cutting-edge Technology
Responding to the push for no-spectator, no-audience events in today's post-COVID
reality, in June 2020, "ABEMA" TV & Video Entertainment launched a Pay per View
feature that allows users to watch events, live shows, sports and more. This newfeature, which was developed entirely in-house, was swiftly implemented while working
remotely after the government state-of-emergency declaration.

By taking advantage of the cutting-edge virtual filming system owned by our advertisingbusiness, we have also been able to provide a much more immersive viewing

experience. We will continue to evolve our services consistent with the latest trends anduser preferences by leveraging our many cutting-edge technologies.

Business Model
Growth Strategy
Competitive Advantages
Performance

048

CyberAgent's Value Creation Model

Competitive
Advantages
Media Business

In April 2019 we launched "WINTICKET," a feature that allows users to place bets while
which is approved under government-controlled gambling, and also began offering theChanges in WINTICKET Quarterly
Transaction Volume*

expanding rapidly as a benefit of more people being stuck at home during the

WINTICKET transaction volume

watching races on ABEMA. We have been offering the service for cycle racing ("Keirin"),same services for auto racing (motorcycle racing) from May 2020, which has been
COVID-19 pandemic.

The cycle race betting market is said to be worth 660.5 billion yen*, and while it has

137

has soared 17-fold YoY

Bexhibited slight growth, betting over the internet has increased by over half to 362.6
billion yen in 2019, achieving a 1.7-fold increase in five years. Despite being alatecomer to the market, market share has expanded due to collaboration with ABEMA*.

17x

72
35

4

8

17

FY2019 FY2019 FY2020 FY2020 FY2020 FY2020

3Q

Unit : billion yen

Business Model
Growth Strategy
Competitive Advantages
Performance*1 Cycle race betting market: From "Recent Developments in Cycle and Auto Racing," Manufacturing Industries Bureau, METI
*2 Quarterly transaction volume: Transaction volume of WinTicket (including points awarded) for its online betting service

4Q

1Q

2Q

3Q

4Q

049

CyberAgent's Value Creation Model

PerformanceMedia Business

Sales of ABEMA & Related Businesses* (Full-year)

Related Businesses

Increased by approx. 1.5x YoY driven by the growth of related businesses.

21.1B“ABEMA PPV ONLINE LIVE”

RelatedBusinesses

13.8
Ads

6.3

0.2
FY2016

Bet on Cycling Online “WINTICKET”

Monthly
Subscription

1.9
FY2017FY2018FY2019FY2020Business Model
Growth Strategy

Unit : billion yen

Official Shopping Channel of ABEMA

Competitive Advantages
Performance* Sales of ABEMA & Related Businesses: Advertising sales include consolidated subsidiary AJA, Inc since FY2019.

©AbemaTV, Inc.

050

CyberAgent's Value Creation Model

PerformanceMedia Business

Full Year Sales

Full Year OP

Sales were driven by ABEMA.(up 22.6% YoY)

Loss of ABEMA and related businesses reduced.

57.0 BFY2016FY2017FY2018FY2019FY202046.5
Loss of ABEMA &related businesses*

38.2

23.1

FY2019

28.4

-7.5
-20.6

-17.9
FY2016

Business Model

Unit : billion yen

FY2017FY2018FY2019FY2020

Unit : billion yen

Growth Strategy
Competitive Advantages
Performance

FY2020*1 Loss of ABEMA and related businesses: Sum of AbemaTV, Inc., Winticket, Inc., OEN, Inc., AJA, Inc., and Kaeru AbemaTV, Inc.
*2 Segment reclassification in FY2020: Some EC businesses that were included in Internet Advertisement Business has merged and reflected from FY2016.

-17.2

-16.8

-18.5 B

-18.2BValue Creation Model for Realizing Sustainable Growth

02

Internet Ad
Business
Since its launch in 1998, CyberAgent has been expanding its internet ad business, and already boasts
the top market share in Japan due to its strengths in maximizing advertising effectiveness. We currently
provide comprehensive solutions that go well beyond simply selling ads to include creative productionthat takes advantage of cutting-edge technologies such as 3DCG and AI-driven technologies, and also
leverage our recent new ventures into DX business.

053

CyberAgent's Value Creation Model

Business Model
Internet Ad Business

Media

Advertiser

Internet Ad
Business

Through our internet advertising business,

we sell advertising space such as Google,
Facebook, Yahoo! Japan and LINE toadvertisers. We are expanding businessby leveraging our strengths in maximizing
advertising effectiveness in internet

advertising, which is said to comprise over
80% of programmatic advertising.

Automotive
Bevarages

Order

Cosmetics

Competitive Advantages
Performance

GoogleFacebook

ReportingGame

Production incomeof insertion

LINE
Yahoo! Japan
Twitter

Online media
System usage fee income

Attract customers

Growth Strategy

Ad placement

Financial

EC

Business Model

Posting fee income

ABEMA

054

CyberAgent's Value Creation Model

GrowthStrategyInternet Ad Business

Aiming to Expand Market Share in Growth Industries
The percentage of digital advertising among ad spending in japan is still low at 30%

versus 51.4% globally in 2019, indicating high potential for growth in terms of clients inJapan shifting to digital advertising.

Global Advertising Industry Trends*1

Ad Spending by Media in Japan*2

By 2024, around 65% of global advertising and over 70% of US advertising isInternet Ad Spending to Surpass TV Ad Spending, Reaching 2 Trillion Yen

expected to be digital.

Digital Advancement in Ad Markets of Major Countries Global

Print 51

11.0 %

TV 173

29.1%

Print 32

4.3 %

9.4 %

18,105

TV 16321.9 %

Total (2024)

USD 595bn

17,84818,77018,12819,657 19,478

19,56419,023

19,323

17,589Internet

19,123
18,612TV

USD 746bn
4,826

Digital 481

CAGR
19-24

6,003

7,069

7,747

8,062

8,680

10,594
10,519
9,381

6,983

3,777

DigitalNon-Digital: +9.4%: -1.7%

Unit : billion yen

Growth Strategy
Competitive Advantages*1 Magna Global, Advertising Expenditure Forcasts, December, 2019

4,547

Source：Magna Global, Advertising Expenditure Forecasts, December 2019

Newspaper

1,675

Magazine

1,260

Radio

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Business Model

Performance

21,048 B

15,094

10,37764.4 %
51.4

19,768

13,100Total (2019)%
Digital 306

20,58420,705

Other 70

Other 65

8.5 %

20,898

055

CyberAgent's Value Creation Model

GrowthStrategyInternet Ad Business

Internet advertising continues to expand the market, driven by the massive digital shift.
CyberAgent is leading this market, boasting Japan's top market share.

Internet Advertising Market and Our Growth Rate

100

2013

2014

2015

2016

Business Model

Performance

2018

2019

40.5

1Q

43.6 43.0

2Q

3Q

FY201647.8 48.6

4Q

1Q

52.5

2Q

51.0

3Q

FY2017

55.6

4Q

57.6

1Q

61.4

2Q

60.2

3Q

FY201861.3 62.2

4Q

1Q

66.6

2Q

64.3 63.3

3Q

FY2019

4Q

67.3

1Q

72.7

64.9 B

64.3

2Q

3Q

4Q

FY2020

Unit : billion yen

Growth Strategy
Competitive Advantages

2017

there has been a turnaround in year-over-year revenue growth in July quarter.

Quarterly Sales

Internet Ad Market

2012

The demand for advertising was affected by COVID-19 around March 2020. However,* Growth transition: Growth rate based on setting 2012 as “100”* Internet Ad Market: “Advertising Expenditures in Japan 2019”* FY2020 Segment reclassification: Some EC businesses that were included in Internet Advertisement
Business have transferred to Media business and the change is applied from FY2016 retrospectively.

056

CyberAgent's Value Creation Model

Competitive
Advantages
Internet Ad Business

Operational Volume + Technical Capabilities=Maximized Advertising EffectivenessROI (return on investment) is an important indicator in internet advertising, where the

CyberAgent IR Channel

effectiveness of advertising can be quantified. High-level operational capabilities are

AI for Effective Advertising - AI research andbusiness implementation capability of CyberAgentcapabilities to achieve this gives us a competitive advantage. We established an AI lab

Learn about CyberAgent's efforts to streamline the adrequired to maximize advertising effectiveness, and having the advanced technicalin 2016, which utilizes AI technology in the creative production of ads and ad text toachieve highly effective advertising. Since we hold the number one market share in
Japan, we also have the largest database in advertising, and thus ads that AI is able toderive from this database are highly effective.

production process with AI.This ﬁve-minute video
summarizes high advertising effectiveness of Kiwami
Prediction AI, which predicts advertising results before
distribution, and Kiwami Prediction TD, which
automatically generates ad copy.

Using AI to create highly-effective ad creative work

Using AI to automatically generate ad text that matches searches

Pretest *1 : 2.6 times more effective advertising

Pretest *2 : 2.3 times more effective advertising

Business Model
Growth Strategy
Competitive Advantages
Performance*1 "Kiwami Prediction AI" pretest: Compares win-rates between the "most effective ads among existing

creative words currently deployed," the "normal production process," and "Kiwami Prediction AI-driven
production process."* 2 "Kiwami Prediction TD" pretest: Compares quality score (QS) improvement rates between "search

keyword quality scores" when new ad text is deployed, the "normal production process," and "Kiwami
Prediction TD-driven production process."

057

CyberAgent's Value Creation Model

Competitive
Advantages

To enable the creation of a wide variety of advertising creative works even during the
COVID-19 pandemic, we have built a new virtual photography studio equipped withJapan's very first LED wall. We are also using 3DCG and other technologies that

achieve a synergistic effect within the group, such as providing ABEMA Arena, a virtual
venue that offers an immersive viewing experience for ABEMA's online live business.

Internet Ad Business

Creative Production Using 3DCG and Other Cutting-edge Technologies"LED STUDIO™" virtual photography studio"ABEMA Arena" virtual live performance venue

Business Model©AbemaTV,Inc.

Growth Strategy
Competitive Advantages
Performance* Japan's first permanent installation of a large LED wall with LED lighting installed in the CyberAgent's Kamuro-zaka Studio (as of October 2020)
LED STUDIO™ Promo Video

058

CyberAgent's Value Creation Model

Performance
Internet Ad Business

Full Year Sales

Full Year OP

Increased 5.0% YoY despite declining ad demand due to COVID-19.

A 7.3% increase YoY
OPM 7.8%

OP

240.6

256.6

269.3 B

O PM

20.84

207.8

18.12

175.0

FY2016
Business Model
Growth Strategy

Unit : billion yen

19.63

21.07B

15.13

FY2017FY2018FY2019FY2020

8.6%

8.7%

8.7%

FY2016FY2017FY20187.7%

7. 8 %FY2019FY2020

Unit : billion yen

Competitive Advantages
Performance* FY2020 Segment reclassification: Some EC businesses that were included in Internet Advertisement Business have transferred to Media business and the change is applied from FY2016 retrospectively.

Value Creation Model for Realizing Sustainable Growth

02

Game
Business
In our game business which we launched in 2009, we provide smartphone games centered mainly oneight major titles, and develop and operate games in a wide range of genres through 13 subsidiaries,
the largest of which is Cygames.

0 61CyberAgent's Value Creation Model

Business Model
Game Business

Original IP
In-game purchases

Game

Business

Users

Ex, Apple, Google

Items

We provide games for smartphones.

Platform fee,
30%

These are free-to-play games that adopt

Income from in-

the freemium model that charges for only

game item purchasescertain items in-game. We have fiveoriginal IPs among the eight major hit titles
released, while the other 3 games aredeveloped and operated under othercompanies' IP.

Other
Company’s IP

Publisher
In-game purchases

Users

Business Model
Growth Strategy
Competitive Advantages
Performance

Ex. Nintendo,
Items

Square Enix

Distribution

Revenue sharing
incomeDevelopment costs
Advertising expenses
Personnel expenses
etc.

062

CyberAgent's Value Creation Model

GrowthStrategyGame Business

Aiming for Profits as an Industry Survivor by Producing Continuous Hit Titles
Market Trends

Comparison against Competitors

Although it has been leveling off due in part to reaching market saturation, Japan's

As the market has matured and demand is focused on high-quality smartphone games,

smartphone game market is still the third largest in the world in terms of size.

there are only a limited number of companies capable of producing continuous hits dueto the need to have advanced technology as well as the financial strength to cover
surging development costs.

Our game business is highly competitive, ranking among the top 3*3 in the smartphone

Japan's Smartphone Game Market*1

game market as a result of delivering high-quality original games and forming

Slight YoY increase at around 1 trillion yen
8,950

9,250

9,450

10,29011,92010,850 11,380

collaborations with companies that hold superior IPs.

5,600

Changes in Quarterly Sales*4

2,610
480
FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019E FY2020E

Game Market Rankings by Country*2
Japan is third-largest in the world

Business Model

Rank

Country

Revenue

Rank

Country

Revenue1

China

40.8 billion USD

4

Korea

6.5 billion USD

2

United States

36.9 billion USD

5Germany

5.9 billion USD

3

Japan

18.6 billion USD

FY2014FY2015FY2016FY2017FY2018FY2019FY2020Growth Strategy
Competitive Advantages
Performance*1 Japan's smartphone game market: "2019–2020 Smartphone Game Market Trends and Company Analysis," Yano
Research Institute Co.

*2 Game Market Rankings by Country : "2020 Global Games Market Report," Newzoo*3 Based on a competitor comparison that disclosed smartphone game sales*4 Comparison against competitors: Internet game sales figures from the financial results briefing materials of various
companies

063

CyberAgent's Value Creation Model

Competitive
Advantages
Game Business

Operational Volume + Production Capabilities=Multiple Popular Titles
CyberAgent has eight major titles in addition to providing several long-lived titles thatcompetitive spirit through an environment of friendly competition, which has led to themarket. We have 13 subsidiaries engaged in developing games for smartphones. We

expand our fan base by leveraging group synergies, for instance, by broadcasting

include Granblue Fantasy, which was released in 2014 and reached its sixth year in thehave also been boosting our operational advantages by sharing technical know-how,
implementing collaborations through horizontal deployment of technology, and fostering

realization of games with extremely long service lives. We have also been working toanimations of popular original IPs on ABEMA.

Anime Broadcast on ABEMA

Business ModelTV anime "Shadowverse"*1

Anime "Princess Connect! Re:Dive*2

Cygames, Inc. original IP

Cygames, Inc. original IP

Growth Strategy
Competitive Advantages
Performance*1 Anime series “Shadowverse” : © Anime series “Shadowverse” Production Committee and TV Tokyo. Being aired on ABEMA, TV Tokyo Network of 6 channels.
*2 Anime Series “PRINCESS CONNECT! Re:Dive” : © Anime Series “PRINCESS CONNECT! Re:Dive” production committee, broadcast on ABEMA, Amazon Prime Video, TOKYO MX, BS11, WOWOW, etc.

0 64

CyberAgent's Value Creation Model

Competitive
Advantages
Game Business

Net Sales (Quarterly)

Regular releases of new hit titles continue to build up sales and stabilize the businessNEW

KonoSuba:
Fantastic Days!*1

Project SEKAI
Colorful Stage!
Feat. Hatsune Miku*2

Release Year

44.8

FY202040.4

FY2019FY2018FY201734.5 34.6

FY2016FY201529.7

FY2014FY2013 or before(For browser games & Others)

26.0

19.7 20.4

30.6

33.4

35.5

33.7

36.8 36.3

39.9

38.2 37.7

36.7

35.2

39.0B

27.6

2 FANTASY

4

1 -KIZNA-

3 Super Light

Sengoku Enbu

2Q

36.3

20.8

GRANBLUE

1Q

35.8

3Q

FY20154Q

5 Shadowverse

THE iDOLM@STER
CINDERELLA GIRLS
STARLIGHT STAGE

6 Girls Band Party!

Dragon Quest Monsters

1Q

2Q

3Q

FY20164Q

1Q

8 Dragalia Lost
7 CONNECT！Re:Dive
PRINCESSBanG Dream!

2Q

3Q

FY2017

4Q

1Q

2Q

3Q

FY2018

4Q

1Q

2Q

3Q

FY2019

4Q

1Q

2Q

3Q

4Q

FY2020

Unit : billion yen

Business Model
Growth Strategy
Competitive Advantages
Performance* Balloon : Selected major titles only
2.5.7 : ©Cygames, Inc.
3 : © 2014-2019 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. Developed by Cygames, Inc. Publisher: SQUARE ENIX
4 : ©BANDAI NAMCO Entertainment Inc. It was jointly developed and is operating by ©BANDAI NAMCO Entertainment Inc. and Cygames, Inc.
6 : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved.
8 : ©Nintendo / Cygames Publisher: Nintendo*1 KonoSuba: God ‘s Blessing on this Wonderful World! Fantastic Days : ©2019 Akatsuki Natsume, Mishima Kurone / KADOKAWA/ KonoSuba Movie Production Committee ©Sumzap, Inc.
*2 “Project SEKAI Colorful Stage! Feat. Hatsune Miku”：© SEGA /© Craft Egg Inc. Developed by Colorful Palette /© Crypton Future Media, INC. www. piapro.net
All rights reserved. Production: SEGA CORPORATION / Craft Egg, Inc. Development: SEGA CORPORATION / Colorful Palette, Inc.

0 65

CyberAgent's Value Creation Model

Competitive
Advantages
Game Business

Cygames, Inc., a part of our game business, has delivered several hit titles including

strong competitive advantage.

"GRANBLUE FANTASY Versus" for the PlayStation®4 in February 2020. With futurecompanies with powerful IPs including the development of the smartphone game "NieR

Granblue Fantasy. In addition to smartphone games, Cygames also releasedplans to release the action RPG "GRANBLUE FANTASY Relink" for the PlayStation®4,
Cygames commands the technical superiority that allows it to successfully develop

Another subsidiary, Applibot, Inc., has also been intensifying collaboration with other
Re[in]carnation," an IP held by Square Enix Co., Ltd.

console games with outstanding game design and one-of-a-kind 3D graphics, giving it a

Granblue Fantasy Versus*1

RPG "NieR Re[in]carnation"*2

Battle action RPG/PS4 console

Smartphone games: North American and European versions of the game are scheduled for release

Provided by Cygames

Pre-registration began on September 24, 2020.
Planning and Production: Square Enix Co., Ltd.; Development: Applibot, Inc.

Business Model
Growth Strategy
Competitive Advantages
Performance*1 Granblue Fantasy Versus: ©Cygames, Inc. Developed by ARC SYSTEM WORKS*2「NieR Re[in]carnation」: © 2020 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Applibot,Inc.

0 66

CyberAgent's Value Creation Model

Performance
Game Business

Full Year Sales

Full Year OP

Increased 2.4% YoY, driven by new successful titles

140.3

146.5

152.2

A 16.5% increase YoY

155.8 B

30.33B

30.45
26.50

1226.

FY2016

Business ModelFY2017FY2018FY2019FY2016FY2020Growth Strategy
Competitive Advantages
Performance

Unit : billion yen

Unit : billion yen

FY201725.30

FY201826.04

FY2019FY202003

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities
Adaptability to Change for Realizing Sustainable Growth072

Adaptability to Change for Realizing Sustainable Growth

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.

Risks & Opportunities

Risks to sustainable growth of the company

Risk item

Social Change

Content· Risks related to future uncertainties,
including changes in social

conditions, economic conditions/economic downturn, and majorchanges in accounting standards ortaxation systems

Response approach

Procedures and Systems that
Provide Countermeasures

In order to maintain growth in the fast-changing internet industry, it is important

01

preferences, and continue developing new businesses. Amid major trends,

Ashita Kaigi(Meeting for Tomorrow)

02

Financial Strategy Meeting

03

CAJJ program

04

Startup JJJ

05

Cycom

06

Technology Map

07

AI Lab08

Akihabara Lab

for us to respond quic kly to changes in the environment and c onsumer

CyberAgent's greatest risk management challenges are to rapidly "create new

businesses in response to change" and "turn risk into opportunity." Even during
the state-of-emergency declaration and voluntary stay-at-home order in April

2020, we made the decision to move our Ashita Kaigi (Meeting for Tomorrow)meeting online, which was held just nine business days later. This resulted inOpportunities(value creation)

To generate new value
through the creation of new
businesses

passing and quickly implementing a total of 16 resolutions.

TechnologicalInnovation· Existing technologies and services
becoming obsolete due to theemergence of new technologies· Loss of competitiveness due to theinability to predict or slow predictionof technological innovation

The wide range of CyberAgent services ― including ABEMA video media, over 50
smartphone games, and advertising products and creative work that apply thelatest technologies ― are created by some 2,000 engineers and creators using an
extensive range of technologies. While updating our services by validating andintroducing the newest technologies, which continue to evolve each year in every
area of technology, we continue to cross-departmentally share the vast range ofknowledge and resources built up at CyberAgent to improve the technologicalcapabilities that are necessary to compete as an internet company. At research
institutes, we are working on development of the latest technologies and theirpractical applications, aiming to achieve a balance between finding solutions tobusiness challenges and contributing to academia.

To create new value,
including new services thatutilize the latest in technology

073

Adaptability to Change for Realizing Sustainable Growth

Risks to sustainable growth of the company

Risk item

Securing
Human

Resources

Content· Intense hiring competition making it
virtually impossible to recruit andretain enough talented people· Lack of management succession

Response approach

To secure highly-capable personnel, we have implemented a number of HR

measures that emphasize 'hiring, training, active utilization, and putting the right

person in the right place.' We continue to aggressively recruit employees throughsuch measures as holding online internships, which are popular among students
even during the COVID-19 pandemic. Through a variety of measures aimed atboth HR development and organizational rejuvenation, we are creating anenvironment and culture where each and every employee is able to reach theirfull potential in terms of performance.

NaturalDisasters, etc.

・Changes in the business environment due
to climate change

To preser ve the global environment and contribute to the realization of asustainable society, CyberAgent strives for balance in reducing environmental

Procedures and Systems that
Provide Countermeasures

09

DRAFT

10

YMCA

11

CA BASE AWARD

12

CA BASE CAMP

13

JB Career Program

14

CAramel

ESG

Environment

impact from climate change while also maintaining the efficiency of business

Opportunities(value creation)

To boost competitivenessand achieve sustained
corporate growth bybolstering human resources

To create sustainable
societies

activities at the same time.

If an earthquake, typhoon, or other natural disaster should occur, CyberAgenthas systems in place to quickly and appropriately implement crisis management
and recovery measures.

Information
Security· System outages due to malware infection or
unauthorized access, data corruption, andinformation theft· Loss, leakage, removal or misuse of

personal, technical or other important
information· Financial damage or loss of technologicalcompetitiveness due to a third party
exploiting leaked critical information· Reputation damage, incurring of damage

compensation, loss of public trust, loss ofopportunities, etc. arising from the above

As an internet service provider entrusted with significant amounts of personaldata, we are working to reduce information security risks and protect personal

information through measures based on four key elements: organization, people,
technology and office.

Information Security
Protect Personal Information

To gain public trust byproviding safe, secure andreliable services

074

Adaptability to Change for Realizing Sustainable Growth

Risks to sustainable growth of the company

Risk item

Content

Response approach

Working· Outflow of talent due to lack of a healthy,

hygienic work environment for employees

We value the health of employees and provide an environment in which they canEnvironment

Legal· Impact on business activities due toIncluding the Japan Association of New Economy (JANE), we belong to industry

establishment of new guidelines andrelationships with relevant ministries and agencies while carrying out other

Regulations

tightening of regulations and theself-regulatory rules in our business areas

Compliancegroups c onnected to each of our business areas, and we strive to build

Healthy Workstyle

Lobbying activities

Opportunities(value creation)

To boost hiring
competitiveness and ensure
growth opportunities by
providing a pleasant working
environment

To create business
opportunities

activities such as information gathering and making policy recommendations.

Our Mission Statement, which serves as our code of conduct, clearly states ouron the intellectual property rights of a thirdThus, we are continuously improving our environment to ensure that all

party

15

work free from mental and physical stress.

· Loss of trust or damage to corporate value

as a result of staff violating laws or infringing

Procedures and Systems that
Provide Countermeasuresintention to be a "highly moral company that thoroughly complies with the law."
employees have a strong sense of ethics and responsibility for their actions.

16

Risk GEPPOManagement Training

To eliminate non-complianceand foster public trust

075

Adaptability to Change for Realizing Sustainable Growth

Risks to Business Growth

Risk item

Media Business

Content

Response approach· Damage to our brand image, loss of public

CyberAgent is committed to sound management of all media services that wecompensation from users, including minors,

environment for all people who use our services.

trust or confidence, and claims for damages
who suffer damage while using our media

operate in order to protect underage users as well as provide a safe and secureInternet· Improper billing of advertising expenses

In our advertising business, CyberAgent has been focused on improving ourBusiness

confidence in the Company's advertisingc om pany, our g oal s are to p rom ote s oun d an d trans parent ad ver t is in gfrom ad fraud, loss of public trust or

business due to damage to advertisers'

brand value, compensation claims due todamages, etc.

Game Businessadvertising-related compliance structure. As a leading internet advertising

17

Advertising Compliancewith full confidence.

In all the games that we operate, CyberAgent is committed to protecting young

compensation from users, including minors,

who use our services. To ensure this, we deliver services in strict compliance

who suffer damage while using our games

Safe and Sound Datingtransactions, and to be an advertising agency to which advertisers can place ads· Damage to our brand image, loss of publictrust or confidence, and claims for damages

Safe and Sound Media Service
Operation
App Service

services.

Advertising

Procedures and Systems that
Provide Countermeasures

users and providing fun games in a safe and secure environment for all people
with all relevant guidelines.

Safe and Sound Gaming
Operations

Opportunities(value creation)

To foster social trust as a safe
and secure service provider
by developing procedures
and systems that protectusers

To foster public trust as a safe
and secure service provider
by establishing procedures
and systems that protect
advertisers

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

076

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities

01

Social Change

Ashita Kaigi (Meeting for Tomorrow)"Ashita Kaigi" is a meeting (=kaigi) led by the management team, in which

new business initiatives and solutions that could improve CyberAgent's future(=ashita) are proposed and decided upon. Twice a year, each executive

officer selects four people from among our business leaders and specialists
to assemble teams that compete by delivering proposals. From September
2019, the format was changed from a 'ranking' format where participants

compete for total score, to a 'tournament' format. This brought the event to awhole new level of tension.

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

29 subsidiaries. From these new businesses, we have generated cumulative
sales of roughly 288* billion yen and an operating income of around 40.5*
billion yen, thereby greatly contributing to business expansion.
* As of September 30, 2020

Ashita Kaigi being held online

077

Adaptability to Change for Realizing Sustainable Growth02

Financial Strategy Meeting

03

CAJJ program

Strategic meetings are held once per quarter for all businesses operated by CyberAgent for the purpose of honing aThis training program derives its name from CyberAgent plus Japanese words for business ("Jigyo") and personnel

to President Fujita, providing an opportunity to assess the growth of the business. If there are no signs that businessBusinesses are ranked by level of operating income and efforts are directed towards achieving growth. Under clearly'strategic mindset' among business managers. At meetings, each business manager explains their business strategy
growth either matches or exceeds growth of the overall market, strategic changes are implemented such as
rethinking business content or even withdrawal of the business.

("Jinzai").

established criteria for withdrawal, if the business posts a revenue and earnings decline for two consecutive
quarters, the business is either discontinued or the general manager is replaced.

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

Ranking Criteria

J1

Quarterly operating profit of 1 billion plus (yen)J2

Quarterly operating profit of 100 million plus (yen)J3Operating at a profit

Withdrawal criteria
Withdraw if income and profit decrease for two consecutive quarters
Financial Strategy Meeting poster

078

04

Adaptability to Change for Realizing Sustainable GrowthStartup JJJStartup JJJ is a training program whose name is derived from the Japanese words for new business ("Jigyo"),

Evaluation Criteria for Business Value Improvement

being launched that are currently receiving upfront investment, their market value is evaluated based on the idea that

Ranked by estimated market value

personnel ("Jinzai"), and market value ("Jikasougaku"). Generally targeting start-up businesses within two years of
we want them to become number one in their market, or to become a project with meaningful impact to CyberAgent.

In Startup JJJ, businesses are ranked by market value and efforts are directed towards achieving growth. Under
clearly established criteria for withdrawal, a business is discontinued if it exhibits no growth for six consecutive
quarters or is unable to demonstrate any competitive advantage.

Listed to CAJJ when estimatedmarket value exceeds 5 billion yen

Prelisting¥3 billion - ¥5 billion

Series B¥1 billion - ¥3 billion

Series A¥500 million - ¥1 billion

Early¥100 million - ¥500 million

Seed

Not calculable - ¥100 million

Withdrawal criteria
A business may be discontinued if its seed period continues for six consecutive quarters"Startup JJJ" Awards Ceremony(18 months) or gross profit declines for three consecutive quarters.

079

05

Adaptability to Change for Realizing Sustainable Growth"Cycom," a New Business Creation Project

Cycom launched in October 2019 as a new project that allows regular and prospective employees to take on thechallenge of proposing new business ideas. Proposers whose submissions have passed screening present their new
business proposals to President Fujita, which is video streamed internally at the company. The process allows
employees other than the proposer to, through feedback, also learn important aspects of the review process.

080

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities

06

Technological innovation

Technology Map 2020

Technology Map is a visualization of technology use in each business area of
the CyberAgent Group.
The map is designed for sharing technical know-how, including reviews andcase studies based on their use in libraries and frameworks, and to establish
cross-organizational technical links between businesses and subsidiaries.

081

07

Adaptability to Change for Realizing Sustainable Growth

AI Lab08

Akihabara Lab

The AI Lab was established to conduct R&D on a wide range of AI technologies related to general digital marketing.

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

The lab includes researchers who specialize in machine learning, econometrics, computer-vision, natural language

analysis, and machine learning. The Akihabara office itself was established in April 2011. The lab provides a platform

processing, HAI/HRI etc., and who engage in research mainly in four areas: (1) ad creative work creation support

for the large-scale gathering and processing of data accumulated in media services operated by CyberAgent, and isand machine learning driven automatic content-generating technology, (2) applied research on customer service

engaged in building and providing systems that can be effectively used in services and improve user satisfaction,technologies using virtual interactive agents, (3) developing better and more efficient methods of decision-making

especially those that use machine learning, natural language processing technology, and data analysis.

through the application of economics, and (4) hyperparameter optimization to maximize the performance of machinelearning models that support the advertising system.
The lab also collaborates in several fields with universities and research institutes (Osaka University, Yale University,
Tokyo Institute of Technology, etc.) that hold advanced AI research technology and are actively involved in practicalapplications; it promotes R&D aimed at not only solving business problems but also contributing to academia; and it
presents the results of research at forums such as international conferences on AI technology and the Japan
Economic Association.

Akihabara Lab

082

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities

09

Securing Human Resources

DRAFT

DRAFT is an elite internship that can only be attended by students carefully
selected from various internships that CyberAgent carries out across thecountry. Held annually since 2016, proposals from the winning team arecommercialized, and we have seen an increasing number of cases* where

past graduates have become the persons assigned to launch subsidiaries or
put in charge of managing a service.

083

10

Adaptability to Change for Realizing Sustainable Growth

YMCA

This company-wide project has a number of objectives: to connect the energy
and passion of young employees in their 20s to the next generation; to boost
the company's top line while increasing chances for promotion; and to create
opportunities to think about CyberAgent's future with a sense of ownership.

The project is led by a team of young leader-class employees in their 20s
who engage in a wide range of activities both in and outside the company.

Since 40.6% of our organization is made up of people in their 20s, theseyoung employees have ownership ― meaning that "they are the ones

responsible for creating a company that will epitomize the 21st century." Evenas our organization grows larger in the future, this measure is designed toensure we can continue as a company where young employees play anactive role.

084

11

Adaptability to Change for Realizing Sustainable Growth

CA BASE AWARD

12

CA BASE CAMP

This award system recognizes engineers and creators who are playing active roles in the company. Because the

CA BASE CAMP is a conference designed to strengthen CyberAgent's technical capabilities as a team by promoting

create an opportunity to recognize engineers with a more detailed focus. The event is also primarily implemented by

1,800 staff, over 40% of which in full-time permanent positions. It has been held once a year since 2018.

jobs of engineers and creators are highly-segmented, it was decided to hold this event based on suggestions toengineers in the field.

Due to the spread of COVID-19, it was decided to hold these awards as an online event rather than the original plan

to hold an in-person event. However, to capture the same level of excitement for the online awards ceremony, it was
live-streamed in a TV-show-inspired format.

Commemorative photo of grand prize winners

the sharing of know-how and interaction among engineers and creators company-wide, which has grown to around
By providing a venue to proactively share know-how accumulated from CyberAgent's wide-ranging media,

advertising and game business areas, as well as promoting cross-departmental and cross-occupational exchange

between engineers, we are committed to further boosting both technical capabilities and business growth. In 2020,
due to the impact of COVID-19, the event will be held in a remote-viewing format as "CA BASE CAMP 2020
ONLINE" rather than the usual in-person event.

The online presentation being held

085

13

Adaptability to Change for Realizing Sustainable Growth'JB Career Program', a New Evaluation System for Engineers

14

CAramelWith the recent increase in engineers' market value and growing importance of evaluating them, in April 2019,

CAramel is a female cross-departmental group that was established at the September 2017 Ashita Kaigi (Meeting

focuses on four key areas ― 'grade unification', 'reward systemization', 'goal standardization', and 'more cogent

opportunities for female staff to interact with each other."CyberAgent launched a company-wide standardized evaluation system for engineers. Through this program, which
evaluations' ― we aim to accelerate the growth of engineers and help them unleash their performance as they
advance in their careers.

for Tomorrow) with the intent of "making the voices of female staff heard at the management level" and "increasing'CAramel' is a play on the Japanese word 'karameru', meaning to interact or mix together. As the name implies,
through this we hope to create a forum where many women can interact with each other. This year marks the thirdyear of CAramel, and although workstyles have been significantly impacted by COVID-19, we continue to hold

events online where people can get involved and connect on how to expand CAramel's theme of everyone "working
according to their own style" and redefining workstyles to fit with the times.

To date, over 220 female employees have participated in these events. As women are susceptible to significant

impacts on their career due to changes at various life stages, these events support in ways that help the womenembrace change with positivity and build active mid- to long-term career paths.

CAramel 3rd members

086

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities

15

Work Environment

Healthy Workstyle

In June 2016, CyberAgent launched a Health Support Office and began avariety of measures aimed at promoting a healthy workstyle based on thecompany's policy to emphasize interactive dialog and respect the wishes ofeach employee. While promoting a healthy workstyle for each employee frommultiple angles, the Human Resources and Compliance Office is engaged inensuring compliance with HR-related laws and regulations, and utilizes career
agents to support career planning and ensure the right person is assigned to
the right job. We are committed to creating an environment that facilitateshigh performance while supporting both the physical and mental health of
every employee.

Health Support Office Members

087

Adaptability to Change for Realizing Sustainable Growth

Measures to Support Good Physical and Mental Health

GEPPO

Office Environment

This simple questionnaire, conducted once a month to group employees, asks them to rate their current
performance, team conditions, etc. using weather terms such as "sunny," "cloudy" and "rainy."

To maintain good health among employees working from the office, alcohol disinfectant spray and general medicine
are available at each floor/office.

Women's Health ”macalon”

Annual Medical Checkups

Our "macalon" system promotes the success of women working at CyberAgent. It includes eight benefits programs
to encourage women to continue to work through personal life events.

All Group employees undergo a medical checkup once a year to detect illness early and assess their overall healthcondition. Depending on the results, an Occupational Health Physician follows up to provide the necessary
employee health care.

Stocktaking Meetings
This special meeting is used to visualize the work content of all target teams to determine work that should beabandoned, discontinued, or modified. At the same time, it offers an opportunity to identify organizational issues,
aiming to reduce stress on individuals and teams and boost performance by finding points needing improvement.

Monitoring of Working Hours
We monitor working hours each day. If monthly overtime hours exceed a predetermined limit, a consultation with an
Occupational Health Physician is set up to discuss their physical and mental situation and provide medical support
as needed.

Establishment of Remote Work Environment
We have established an environment where employees can continue to work from anywhere without stress andwithout compromising performance through several measures. These include managing security based on staff ID,
providing a VPN connection, implementing measures to prevent delay, introducing a video conferencing system, andmoving business folders to the cloud.

Vaccinations
Free vaccinations are administered in-house every year to prevent seasonal flu.

Mental Health
Consultation with an Occupational Health Physician is arranged as necessary to ensure employees are able tomaintain good health and work in a comfortable environment, thereby allowing them to fully utilize their skills at work.
For those interested, we also provide opportunities to consult once a month with a counselor who possesses clinicalpsychologist qualifications.

088

Adaptability to Change for Realizing Sustainable Growth

Risks & Opportunities

ComplianceTo carry out compliance duties, CyberAgent established a new Legal & Compliance Office in 2016 to replace the previous Legal Office. The officehas been conducting compliance education and promoting widespread understanding of compliance in all company divisions. The office has
established a framework to ensure that business activities are conducted with uncompromising ethics by implementing measures necessary toestablish the group-wide compliance structure and regularly hold specialized compliance workshops as required by each division.

Initiatives to Educate and Broadly Instill Compliance Practices

HIYA RISK TEST: Testing Awareness of Sudden and Unexpected Risks

Compliance training is administered as soon as new graduates or mid-career employees join the company. We alsoThis is a compliance test that asks questions on how to respond to sudden and unexpected risks that can occur in aincorporate harassment modules into training for newly-appointed managers, but also offer additional education'YMCA Ashita Kaigi (Meeting for Tomorrow)' implemented by YMCA, an organization that supports and encourages

provide regular training to increase knowledge and awareness of compliance issues. As examples, we not only
attuned to current trends and the unique characteristics of each occupation or job activity, such as training on the'Law for Preventing Unjustifiable Extra or Unexpected Benefit and Misleading Representation' for advertising staff, or'Infrastructure Security' for engineers.

16

Risk GEPPOFour times a year, all employees take a questionnaire based on the same 3-question format as GEPPO, on what

they feel are sources of risk for the company. Questionnaire responses are read only by directors and members of

the internal Risk Management Committee. This content is then discussed and countermeasures are implemented asnecessary. This system is designed to proactively prevent losses that could arise in managing the company by not

only identifying risks beforehand, but also raising employees' awareness of risks and focusing more attention onthem.

variety of situations from work to social gatherings. It was decided to administer this test company-wide during theyoung persons in their 20s. All employees are required to obtain a perfect score in this program, whose purpose is to
educate on risk knowledge and countermeasures across the CyberAgent Group.

089

17

Adaptability to Change for Realizing Sustainable GrowthAdvertising ComplianceIn our advertising business, CyberAgent has been focused on improving our advertising-related complianceTransaction Review

Interactive Advertising Association) to promote sound and transparent advertising transactions. CyberAgent is

To improve transparency in sales management, we thoroughly strictly adhere to the set flow when receiving
advertising orders and review of the integrity of relevant documents.

structure. As a leading Internet advertising company, we participate with industry organization 'JIAA' (Japan
dedicated to being an advertising agency to which advertisers can place ads with full confidence.

Efforts to Raise Awareness of Advertising Compliance

Measures Against Ad Fraud
With our Advertising Compliance Committee playing the central role, we cooperate with media to which ads areplaced and prevent the placement of ads on websites suspected of ad fraud. If a suspected ad fraud incident occurs,
we take swift action such as by immediately taking down the ad in order to ensure sound advertising practices aremaintained.

All employees, including those engaged in advertising business and limited-term employees, receive training
dedicated to advertising compliance as soon as they join the company. Even after joining the company, training isheld once a year on a variety of topics that include data leaks and copyright protection. If an employee is assigned toa creative team, they are also provided with training specific to the creative process. We also periodically published
an internal newsletter containing compliance information to reinforce educational efforts and raise complianceawareness.
ClientAd placement

Brand Safety
To ensure that advertisers can place advertisements with full confidence, ad distribution is blocked to any illegal or
harmful websites based on lists regularly provided from JIAA. We also strive to ensure high-quality ad destinations toprevent any harm to brand value from inappropriate ad placements.

Advertising Compliance Structure
Submission auditing
Advertising Compliance
Committee

Compliance Bureau

Ad reviews

ReportingAdvertising agency business(including subsidiaries)
Sales Administration Dept.
(order management)

Report Audits
To further improve the quality of services provided in CyberAgent Group's advertising business, a team independent
from sales staff checks the ad delivery reports submitted to advertisers for any discrepancies in the management
screen data, application forms and invoices.

Anti-fraud

Ad placement

Ad effectiveness data

Media

Ad Reviews
We review advertising content to ensure that ad creative work proposed to advertisers is compliant with relevantlaws and regulations (e.g., Pharmaceutical and Medical Device Act), follows the JIAA (Japan Interactive Advertising
Association) guidelines, and is in line with public order and morals.

* Compliance Bureau: An organization that conducts audits and reports on order-related matters in Internet advertising business.
* Advertising Compliance Committee: A committee composed of a cross-section of members from the Advertising Business Department andLegal and Compliance Office.

04

E S G To p i c s

Environment
ESG Topics

0 94

ESG Topics

Climate Change Engagement

CyberAgent has been working on disclosing information on greenhouse gas emissions fromits business activities since the fiscal year 2020.

Due to the nature of our business, which is mainly in the Internet domain, the calculation of
CO2 emissions covers emissions from our main domestic offices, emissions from the data

centers for the operation of the internet services we provide, employees' commuting, andbusiness trips, etc. We will continue to measure the environmental impact of businessactivities and strive to improve business efficiency and reduce total CO2 emissions at thesame time.

GHG Emissions [t-CO2]
Scopes*Scope 1
Scope 2（Location-based）
Scope 3
Total GHG Emissions

FY2018FY2019

0

0

4,866

5,188

4,601

19,244

19,606
24,794

11,21915,820* Scopes
Scope 1
Scope 2
Scope 3Category

Scopes*1

Purchased Goods and Services

20 %

17%

19%

3

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

5%

4%

6%

5

Waste generated in operations

1%

1%

0.3%

6

Business travel

66%

71%

59%

7

Employee commuting

10%

7%

15%

FY2018FY2019FY2020014,378

Scope 3 Emissions per Category (%)

Changes in Total GHG Emissions

20,000

Reduced electricity consumption due to24,79425,00019,244the consolidation of the Shibuya-based
offices between April and September

15,82015,00010,0005,000

Direct emissions from our owned or controlled sources such as offices and data centers. (Due to the
combustion of gases and other fuels)
Indirect emissions from the use of electricity and heat supplied by other companies in our main
domestic offices and data centers.
Indirect emissions other than scope 1 and scope 2（Applicable categories only）

0

FY2018(Base year)

FY2019FY20202 019, a n d l owe r t r a n s p o r t at i o n a n d
travel expenses due to the spread of
COVID-19.

FY20200 95

ESG Topics

Environment

Our Commitment to Environment"N organic," a natural lifestyle brand launched the Eco
Program to collect used cosmetic containers and recycle
them as a new resource"N organic," a natural lifestyle brand operated by Shiroku, Inc. is engaged insustainable beauty initiatives such as recycling marble (Terazo) made from crushed
used cosmetic bottles into floors and sinks in its directly managed stores. In July

2020, in collaboration with TerraCycle, Inc., N organic launched the Eco Program tocollect used cosmetic containers and recycle them as a new resource. All used

cosmetic containers (plastic, glass, and aluminum containers) of N Organic andother brands will be collected at the Yurakucho Marui store, and customers whobring their used cosmetic containers will receive a 500 yen off coupon to be used in
the store. We aim to contribute to marine plastic pollution and the reduction ofwaste, which are currently global problems.

Commitment to Society
ESG Topics

0 97

ESG Topics

Commitment to Society

Fostering IT Talent

Tech Conference “BIT VALLEY 2020”

With the four companies of CyberAgent, DeNA, GMO Internet, and Mixi serving asorganizers, BIT VALLEY 2020 was the first Industry-Government-Academia
conference to be held online. In addition to support activities from the Tokyo

metropolitan and Shibuya municipal governments, it also received backing in theform of special cooperation from Tokyu Corporation and newly from Aoyama

Gakuin as well. Under the theme of "Next-Gen Online Meetings--A Celebration of

Innovative Technology," the conference delivered content not only to students andyoung engineers, but also to those responsible for the next generation in a wide
variety of industries and professions. The aim of this conference is to provide avenue where participants from different backgrounds can consider the next

generation from their own perspective, which differs from each participant's own

situation, thereby creating an opportunity to spark innovations that will pave theway to Japan's future.

* Images from the online session

0 98

ESG Topics"Kids VALLEY" Future Learning Project

The "Kids VALLEY Future Learning Project" is an integrated public-private projectthat provides career education support for the development of IT professionals.
Four Shibuya-based internet companies that include CyberAgent and Tokyu as wellas the Shibuya City Board of Education provide this support, which covers support
for developing programming curriculum for elementary and junior high students,
in-class support, company field trips and more.

In 2020, the Kids VALLEY Future Learning Project's "Programming Summer Camp

2020 " was held for elementary and junior high school students across the country.
While the spread of COVID-19 has greatly impacted the places and opportunities
for elementary and junior high school students to learn, by expanding the target toelementary and junior high school students nationwide and implementing online,
this has created opportunities to not only inspire interest in the fields ofprogramming and IT, but also cultivate a better understanding. With the aim ofdeveloping professionals in Shibuya who can play active roles in the world, and toalso be a driving force behind programming education in Japan as a whole, we arefocusing efforts on contributing to human resource development in society bysystematizing and widely deploying a series of initiatives.

* Our video, "Introductory Programming Course," is available to allow those unable toparticipate in workshops to experience programming from home.

0 99

ESG Topics

Programming Contests for Elementary Students “Tech Kids
Grand Prix 2020”"Tech Kids Grand Prix" is one of the Japan's largest programming contests, which
under its slogan of "You are the creators of the 21st century," judges contest entries
from three perspectives: VISION (the dream or world the student wants to realize);
PRODUCT (the creative idea that will realize that dream and the productembodying it); and PRESENTATION (the student's approach to communicating

their vision and product to the world). To provide opportunities for more children to
feel a sense of purpose in learning to program, this programming contest was alsorolled out to several regions through cooperation with regional governments etc.
throughout Japan.

* An image of the presentation (2020)

10 0

ESG Topics

Commitment to Society

Driving Forward Digital Transformation (DX)The digitization of consumer behavior has been accelerating in recent years,
spread of payment services, and rapid growth of D2C business due to theincreased popularity of micro e-commerce. Due to the spread of COVID-19,
even the entertainment industry which mainly focuses on entertainment inreal situations, has been forced to shift digitally to create new revenue
opportunities. We are driving forward digital transformation by leveraging our
know-how built up and refined through years of providing various services tothe entertainment industry, government, and retail industries; cutting-edge
technologies; and platforms both in-and-outside the company.

Official SNS Accounts

including the digital transformation of retail stores and points-of-purchase,10 1

ESG Topics

Entertainment field

CyberArrow, Inc.

OEN promotes digital shifts in the entertainment

CyberArrow plans to provide a distribution platform thatvideo streaming, project support (gifting), online social

online fan interaction events to large scale events.

industry, including high-quality live entertainment andgatherings, and e-commerce sales.

enables the online deployment of events ranging fromSUPERLIVE by OPENREC

Ame-Pass by Ameba

SUPERLIVE by OPENREC supports high-quality

Provides a platform to buy tickets for a broad range ofand performances at the company's own OPENREC

featuring celebrities and influencers, to live music,

online live performances and live streaming of artists
STUDIO, a 1,200 m², 5-meter-high studio in Tokyo.

online events, covering everything from events
theatre, and sports.

SUPERLIVE by OPENREC

Official SNS Accounts

OEN, Inc.

10 2

ESG Topics

Marketing field

CA Retail Marketing, Inc.

MG-DX, Inc.

CA Retail Marketing assists in boosting purchasing

Provides support pharmacies and pharmaceutical

media to shops, such as the use of digital signage at

Online medication instruction

rates by deploying advertisements and adding digitalretail stores.

sales making a digital shift.

DX Opportunity Center

Digital Government Promotion Office

Supports digital transformation (DX) in all aspects ofSupports the digitalization of administrative procedures

marketing.

Ex. "Business development support for D2C brands byin public offices and local governments.

developing fan communities"

A collaborative promotional project between CA Retail Marketing, Inc. and KYORINDO
DRUG STORE CO.,LTD. to maximize in-store promotion through digital signage.

10 3

ESG Topics

Commitment to Society

Support for Creating Social Value

Crowdfunding Platform "Makuake"

Makuake, operated by Makuake, Inc., is a crowdfunding-based industrial support
platform that helps to create new products and services. It achieves this byallowing creators of products and services yet to be sold on the market to share

their stories and thoughts on the Makuake platform, and these products or services
are then purchased by individuals who feel a connection with them. Since theservice launched in August 2013, over 10,000 new projects have been listed on
Makuake, including futuristic gadgets, specialty foods, alcoholic beverages,

restaurants, content, and new challenges with traditional crafts, all made in regions

across Japan. Of particular note, in response to the spread of COVID-19 in 2020, a

new online purchasing experience for "support purchases," in which creators andbuyers are directly connected to purchase products or services, has been

attracting great interest and the number of project supporters has been growing

dramatically. We are also committed to supporting business development before
and after a Makuake project is implemented, including support for brick-and-mortar
retail spaces and expanding secondary sales channels through e-commerce.

10 4

ESG Topics

Commitment to Society

Supporting Sports

Soccer
FC Machida ZELVIAIn October 2018, the Japan Professional Football League Club "FC MachidaZELVIA" became part of CyberAgent Group. As a member of the CyberAgentGroup, the club takes advantage of group synergies to enhance the informationand services provided to supporters, and attract new supporter demographics.

While continuing to contribute to promoting sports culture and expanding the local

economy in Tokyo and Machida, we also aim to grow FC Machida ZELVIA into a
top club that is recognized around the world.

During the current suspension of public J-League matches as a measure toprevent the spread of COVID-19, the club has committed to its motto: "Let's

overcome this together! # いまゼルビアにできること " (translation: #What Zelvia can
do now), the team is proactively engaged in a wide variety of activities online,
especially through SNS, to continue interacting with fans.

FC Machida ZELVIA

©FCMZ

10 5

ESG Topics

SoccerJuventus F.C.
With the aims of building an unparalleled brand that inspires joy and dreams inpeople around the world, and delivering a broad range of value to society in sports
and other fields, in July 2020, Cygames Inc. entered into a sponsorship agreementwith Juventus F.C.(Juventus Football Club S.P.A.), a club that boasts the most winsin Série A of Italian pro soccer's first division league.

Juventus F.C..

10 6

ESG Topics

Mahjong
CyberAgent formed a company team, "Shibuya ABEMAS," to compete in the

M.League* season that kicked-off in October 2018. For a second consecutive year,
the team advanced to the finals and finished the 2019 season in third place. The
team will continue its efforts in M.League as it strives to boost the social status andspread awareness of mahjong, and also attract new fans to the sport.From theopening game to the final matches, all matches are streamed live on the Mahjong
Channel of ABEMA, the TV & Video Entertainment source.

* M.League is an organization whose purpose is to promote competitive mahjong in Japan, make the game morewholesome, and to popularize and develop the sport. It has been chaired by the CyberAgent President Fujita

since the league launched in October 2018. Although people across the country are familiar with mahjong andthere are reportedly thousands of pro mahjong players who belong to professional organizations, its strong
association with gambling and complex rules are partly responsible for the lack of improvement in its social

standing. However, mahjong's recognition by the International Mind Sports Association in April 2017 led to theemergence of numerous online mahjong games, and its popularity has spread among senior citizens as a way toward off dementia. This is an example of how mahjong is gaining recognition as a mental sport for people of allages to enjoy.

Shibuya ABEMAS

10 7

ESG Topics

Pro-Wrestling
The three companies of DDT Pro-Wrestling, Noah Global Entertainment, and DDT

Foods were merged on September 1, 2020 to establish CyberFight, Inc. Both DDT
and Noah, which have been working to further invigorate the pro-wrestling industry,
have consolidated their management operations in preparation for the "with

COVID-19" and "after COVID-19" eras. By optimizing human resource allocationand expanding the pro wrestling business, they are striving towards a new era of
pro wrestling management.

Pro-Wrestling Noah
DDT Pro-Wrestling

10 8

ESG Topics

Dance
CyberAgent participated in the planning of "D.LEAGUE," Japan's first professional
dance league, and will participate as team CyberAgent Legit when it launches inJanuary 2021. Closely attuned to the philosophy of D.LEAGUE, which aims tocreate new value in the fields of art, sports and business, CyberAgent is committed
to establishing new forms of entertainment.

*D.LEAGUE is a professional dance league newly launched by D.League, Inc. There are said to be some 20
million people in Japan with dance experience, and after becoming part of the compulsory education curriculum in
2008, the dance population continues to increase each year. Against this backdrop, D.LEAGUE is established withthe goals of developing and expanding street dance in Japan, as well as turning out street dance professionals. In
the regular season, which kicks off in January 2021, a total of eight teams will compete against each other indance performances.

CyberAgent LegitGovernance
ESG Topics

11 0

ESG Topics

Using DX to Boost Productivity and Strengthen Internal Controls

CyberAgent is promoting systematization within the company as well,for instance, by centrally managing the data of its over 100 groupsubsidiaries. We have been pursuing DX transformation by setting

goals that promote data management and utilization, especially in

our accounting, HR, and legal departments. Also, through initiatives

such as shifting to digital signatures on contracts, etc., we have been

Business
Management

contributing to the environment by reducing the use of paper

Integration of accounting systems with group subsidiaries
Digitization of financial and accounting operation

resources, boosting efficiency, and strengthening internal controls.

HR

Centralized data management of HR info
Promoting the shift to paperless in internal andadministrative dealings

Legal affairs

Group-wide centralized data management for registration info
Digitalization of credit management, contracts anddocument stamping work

11 1

ESG Topics

Interview with Leaders

Corporate Management Division,
Corporate Management
Systems Office

Masahiro Nishimura

Human Resources Division,
HR Data Management Off ice

YuichiroTsutsumi

Business ManagementHRaccelerating the shift to paperless"routine HR work and 50,000 sheets of paper""Systematizing the financial closing process and"Reduction of 10,000 hours of annualized

Corporate Management Division,
Legal & Compliance Office

Yusuke Komurasaki

Legal"Going paperless to reduce administrative costs"

We are pursuing systematization of the settlement process with the

We are promoting the "HR Data Consolidation Project." By

By going paperless for contracts, purchase orders, invoices, andcompass, and establishing a strong governance foundation. To"people," our greatest management resource, we aim to build aburden, including mailing work to suppliers that occurs at businessgoals of accelerating account settlement, creating a management
achieve these goals, we intend to complete compliance with theElectronic Records Retention Law for reimbursements by FY2020,
and are working to accelerate the shift to paperless.

preparing, consolidating, and visualizing a wide range of data on
foundation for our "data-driven HR strategy," which will enable us tofurther strengthen our support in areas such as developing staff

talent, recruitment, and compliance. The process has already saved

an annualized 10,000 hours of routine HR work and 50,000 sheets ofpaper.

other transaction-related documents, we are reducing the paperwork
sites. By going paperless, we also aim to reduce administrative costs
through seamless cross-departmental management between

business, accounting, legal, tax and other departments. We havealready completed the transition to a paperless database for legal
documents such as the minutes of board meetings of groupcompanies. We have also achieved around 60% of contracts being

entered electronically, and continue to reduce revenue stamp fees aswell as the costs of paperwork storage.

11 2

ESG Topics

Various Efforts to Ensure a Worry-free Work Environment

CyberAgent is implementing efforts to improve business efficiency and security protection with measuresthat include moving business folders to the cloud, shifting to online-based contracts and invoices, andintroducing video conferencing systems. By providing multiple VPN connections that ensure secure data

Use of video conferencing and VPN connections before and after
remote work began
After working-from-home was recommended

transmission, we have established an environment where staff can continue to work without stress andwithout compromising performance, even when working remotely due to COVID-19.

3,885 WAU

Time Spent on Video Conferencing in Hours
Number of VPN Users in Weekly Active Users

3,453

96,774to all employees on March 26, there wasincreased use of video conferencing and
VPN in terms of both people and time used.
However, since a better environment than

2,276

Actual percentage of staff

staff to work from the office based

working from office from end

on government issued theof March 2020 to end of April

state-of-emergency declaration

work was able to progress smoothly without
interruption.

Measures to Prevent the Spread of COVID-19
Approximate percentage ofprevious was established, as seen below,

68,886

917

863

763

6,417

8,236

6,119

March 1March 8March 15

9,927

March 22

Working-from-homeannouncement on March 26

March 29

April 5

April 12Issuance of the state-of-emergency
declaration on April 7

According to questionnaires via "GEPOO," aHow is remote working going for you? Describe it in terms of weather.

environment immediately after starting towork remotely, and more improvements

Work from home

3
About

About

20 %

%

34 %

some 60% of employees have been able tos mo o t h l y a d a p t t o t h e r e m o t e - w o r k

8%

97%

tool for assessing employee conditions,58%* Work-from-homepercentage at the time ofthe questionnaire: 97%(as of April 7)

have continued through the ingenuity of thegroup and its individuals.

05

Facts

Financial Information
Facts

117

Facts

Consolidated
Sales

4,785

Subsidiaries

billion yen

338

Consolidated OP

Employees(consolidated)billion yen

5.1

DOE※

Dividend Payout
Ratio

%

64.9

* FY202009 * DOE * Dividend on Equity = ROE (Net income ÷ Equity capital) x Dividend payout ratio%

Female-To-MaleManagement Ratio(Non-consolidated)

Engineers andCreators Ratio(Non-consolidated)

107
5,493
21.0
25.5

%

%

118

Facts

Financial Information

Data

Consolidated Sales

Operating Income

478.5 billion yen (up 5.5% YoY)

33.8 billion yen (up 9.9% YoY)

Marked a new record high despite the impact of COVID-19

FY2020 Forecast: 28-30 billion yen

Exceeded the upper end of the forecast.

478.5 B 500.0B

FY2021（E）
36.7

453.6

32.7

419.5
371.3
310.6

17.4

205.2

3.2 6.3

FY 2000

10.8 16.2

26.7

43.2

60.1

FY 2005

76.0

87.0

14.3

162.4
141.1
119.5

9.3

-1.6 -0.1 -0.2 -0.1

FY 2010

FY 2015

30.8
30.7
30.1

22.2

254.3

93.8 96.6

33.8B

FY 2020

FY 2000

1.7

2.6

4.3

FY 2005

5.5

10.3

4.6 4.4

FY 2010FY2015

FY2020

FY2021（E）

35.0B
30.0B

119

Facts

Management Index

Return to Shareholders

We adopted “DOE* 5% or more” as management index to maintain shareholder returns through dividends or sharebuybacks, etc. during the investment phase.

We aim to increase stock price over the medium to long-term and pay dividend continually.
We recognize the return of profits to shareholders as an important issue in management, and plan to boost medium

to long-term shareholder value by growing the business and improving capital efficiency while also continuing to pay
out dividends.

FY2021Dividend Payout Ratio: 46.7％-58.3％
Total Dividend Amount: 4.6billion yen (Planned)*2

ROE

Dividend DOE
Payout Ratio

Stock Price of CyberAgent vs
Nikkei Stock Average*3

Total Dividend Amount13
12245.2%

11

4.0

10

4.0

4.1

4.2 B

9

18.9 %

7.8 %
5.2 %

7.8 %

6.0 %
2.1%

FY2016 FY2017 FY2018 FY2019 FY2020

100.0 %
83.0%

5.1%

64.9 %
64.9 %

7
6

4.4 %

4
3
Nikkei Stock 2
Average

Nikkei Average

2.6 %

1
0

FY2016 FY2017 FY2018 FY2019 FY2020

FY2000ROE

Dividend Payout Ratio

3.1

55.2% 5.0% 5.2 % 5.1%

23.1%
FY2016 FY2017 FY2018 FY2019 FY2020

8DOE*1 DOE: Dividend on Equity (ROE x Dividend Payout Ratio)*2 FY2021 Dividend Payout Ratio and Total Dividend Amount: Expected Dividend 37yen x Number of outstanding shares excluding
treasury shares as of September 2020

2002

2001

2004

2003

2006

2005

2008

2007

2010

2009

2012

2011

2014

2013

2016

2015

2018

2017

2020

FY2016 FY2017 FY2018 FY2019 FY2020

2019*3 CyberAgent Inc. vs Nikkei Stock Average (Nikkei 225): Transition of stock price of CyberAgent vs Nikkei stock avarage.

120

Facts

Statements of Income (PL)

(Unit: million yen)

FY2016FY2017FY2018FY2019FY2020Net sales

310,665

371,362

419,512453,611478,566

Operating income

36,79030,70030,16330,82533,880Non-operating income

212

387

372

535

519

Non-operating expenses

1,660

2,346

1,970

867

536

Ordinary income

35,341

28,741

28,56530,49333,863Extraordinary income

5,212

668

981

1,912

88

Extraordinary loss

5,935

4,731

5,498

12,985

5,749

Income before income taxes and minority interests

34,61924,67824,047

19,42028,202

Profit attributable to non-controlling interests

4,957

8,274

5,266

4,368

7,648

Profit attributable to shareholders of parent

13,612

4,024

4,849

1,694

6,608

Net Income

18,57012,298

10,116

6,062

14,257

Comprehensive income

18,476

14,501

11,416

5,670

20,166

121

Facts

Balance Sheet (BS)Cash Flow Statement (CF)

(Unit: million yen)

FY2016FY2017FY2018FY2019FY2020Current assets

114,647

117,010

170,411

168,662

203,674

Non-current assets

41,95046,99855,021

56,172

57,047

Total liabilities andnet assets

156,597

164,009

225,484

224,876

260,766

Current liabilities

62,137

62,79972,44970,74987,867

Non-current liabilities

1,845

2,423

43,784

43,77445,220Capital stock

7,203

7,203

7,203

7,203

7,203

Total shareholders'equity74,791

74,672

76,12974,01578,466

Total net assets

92,614

98,785109,250

110,352

127,678

49.3

48.1

36.2

35.2

34.3

Equity capital raito(%)(Unit: million yen)

Cash flow fromoperating activities
Cash flow frominvesting activities-

FY2016FY2017FY2018FY2019FY202028,246

21,62428,394

14,91737,02815,224

Cash flow fromfinancing activities

453

Cash and cash
equivalents at
the end of period

51,767* "Partial Amendments to Accounting Standard for Tax Effect Accounting, etc." is applied from FY2019.The change of accounting standard took effect retroactively to FY2018.

-

20,396-

22,410-18,0007,233

39,748-46,61392,37984,563

-

4,662

-

16,621-

2,590

102,368

122

Facts

SG&A Expenses

No. of Employees

The costs are properly controlled to achieve sustainable growth.

295 new employees joined in April.

Special incentives

Investment Development

Other*

Sales related costs
Office costs

Advertisement costs

92.2

Personnel

76.1

21.3

3.1
15.4

4.8
6.5

99.8
27.0

102.4

28.5

5.0

5.1

7.8

8.5

106.7 B
1.4

28.7

Other

Game

Internet Ad
Medhia

4,543
3,971

6.3
8.7

5.3
5.3

Headquarters

19
297
267

503

608

13
374
605

406

1,346

32.0

29.1

27.2

1,453

1,612

1,826

29.9

1,539

FY2016

15
350

11
370

5,493

1,253

25.3

21.5

17
336

4,988

5,202

27.5

30.8

33.0

* Other: Outsourcing expenses, R&D expenses, entertainment expenses etc.

FY2018FY2019

1,900

1,883

1,871

767

798

804

31.6
596

FY20171,778

FY2020FY2016660

FY2017FY2018* Segment reclassification in FY2020: The change is applied from FY2019 retrospectively.

FY2019FY2020

12 3

Facts

Data

Employee Facts

11%

34%

25 %

By Gender

19%
By Job Type66%
Business 43% to 57%
Engineers 9% to 91%
Creators 43% to 57%

Male

FemaleManagement
Composition
by Gender

59%

79%
Female managers* hold at least 20% ofmanagerial positions.

Male

Female* Managers: Management level or higher, and producers or directors at or above a certain grade

Hiring of
New Grad&Mid-career
Professional

We proactively recruit new graduates toensure market competitiveness ofthe company.

45%
Business

Technical positions account for 36% of
our staff composition.

21%

By Age Group64%

Female to male ratio by job type36%

Engineers
Creators

20s

The age 20–30 demographic accounts for 81% of
our staff with the younger generation playing
active roles in the company

18 %

41%

17 %

30s

40 or over38 %Years of Service

11 %
16 %

New Grad Hiring
Mid-caree

Professional hiring

Work environment encourages staff retention
with 46% of staff staying at least 5 years.

* CyberAgent parent company executives and full-time employees, total 1,602 (as of the end of September 2020)< 3 years

3-4 years
5-6 years
7-9 years

10+ years

12 4

Facts

17%

21%
Subsidiary
Presidents' Age
Demographics

62%
The ratio of males is slightly higher due tothe large number of engineering staff.

12%

27%
65%
20s
30s

40 or overWorkingMothers

We support working mothers,
who make up 27% of our female staff.

8%
Working Mothers

On maternity/childcare leaveNon-mother female employees

Returning
to Work
after Maternity /Childcare
Leave

90 %
We promote work-life balance by continuing to improve "macalon,"
our system for promoting women in the workplace.

Turnover Rate

Low turnover rate continues.
Turnover Rate

Company Overview
Facts

Mission Statement

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

12 7

Facts

Corporate

Company Overview

General Information

Company Name

Office Locations

CyberAgent, Inc.

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Kanazawa, Kyoto, Saga, Okayama, Okinawa
United States (New York, Guam), China (Beiing), Taiwan (Taipei), Korea (Seoul)Vietnam (Ho Chi Minh City), Singapore (Singapore)

Address

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

Representative director*

Susumu Fujita

Foundation

March 18, 1998

Capital7,203 million yen (As of the end of september, 2020)

Employment Headcount5,344 (As of the end of september, 2020)

AGM

DecemberBusiness Portfolio

Media Business

Internet Advertisement BusinessGame Business

Investment Development Business* We will submit a proposal for the election of directors at the 23rd Annual General Meeting of Shareholders to be held on December 11, 2020.

12 8

Facts

Stock Information

Top Holders

Listed Market

First Section of the Tokyo Stock Exchange

Name

Code

4751

1

Susumu Fujita

24,639,600

19.54%

Number of Shares
Outstandin

126,128,858 shares

2

The Master Trust Bank of Japan,

13,405,300

10.63%

Number of Shareholde

12,946

3

Custody Bank of Japan, Ltd.

7,935,200

6.29%

4

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

5,082,054

4.03%

5

THE BANK OF NEWYORK MELLON 140051

3,111,500

2.47%

6

SSBTC CLIENT OMNIB US ACCOUNT

2,708,399

2.15%

7

JP MORGAN CHASE BANK 385632

2,517,120

2.00%

8

Custody Bank of Japan, Ltd. (Trust Account5)

2,455,100

1.95%

9

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

1,861,600

1.48%

10

STATE STREET BANK AND TRUST COMPANY 505225

1,741,481

1.38%* As of September 30, 2020

1.8 %

0.2 %
0.4 %

27.0%
Type of
Shareholders

44.1%

Number of Shares% O/S* As of September 30, 2020 * The number of Tresuary stocks is 297,742*As of September 30, 2020

Large Shareholding Report

26.5%

Institution

Foreign Institutions and Individuals

Securities Company

Financial Institusions

Domestic Corporations

Individual,other

Treasury Stocks% O/S

Submitting Date

Baillie Gifford & Co*

10.87%

October 9, 2019

Sumitomo Mitsui Trust Asset Management Co., Ltd.*

5.96%

October 21, 2020

JPMorgan Asset Management (Japan) Ltd.*

5.46％

December 3, 2020

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.

12 9

Facts

Corporate

Investor Relations Activities

CyberAgent promotes understanding of its management policies andbusiness strategies on its investor relations website through information

Inclusion in Indexes

disclosure, conference participation, and interviews with institutional

investors. In June 2020, it was adopted by the Nikkei 300 Index and has now
been included in a total of seven indexes including ESG indexes.

Nikkei 300 Index

The Nikkei Stock Index 300 is a market value-weighted index representing the overall Japanesemarket with a smaller number of stocks calculated and published by Nikkei Inc.

Japan New Economy Index

A weighted average of 104 companies listed on the First and Second Sections of the Tokyo Stock
Exchange, TSE Mothers, and JASDAQ among the member companies of the Japan Association of
New Economy.

Recognizing the importance of disclosing information, CyberAgent isdedicated to continuing to improve its IR activities.

FY2020 Summary of Activities
The number of institutional investors
we met at the individual meetings
Earnings presentations

1327 people
4 times

Nikkei Stock Average(Nikkei 225)

The Nikkei 225 is a price-weighted equity index, which consists of 225 stocks in the 1st section of

S&P Japan 500 ESG

The S&P Japan 500 ESG Index is a broad-based, market-cap-weighted index designed to measure
the performance of securities meeting sustainability criteria, consisting of 258 stocks..

MSCI Japan Index

The MSCI Japan Index is designed to measure the performance of the large and mid cap segments of
the Japanese market. With 320 constituents, the index covers approximately 85% of the free
float-adjusted market capitalization in Japan.

FTSE All-World Index

The FTSE All-World Index is a market-capitalisation weighted index representing theperformance of the large and mid cap stocks and covers 90-95% of the global investable market
capitalisation.

MSCI Japan Empowering
Women Index*

The MSCI Japan Empowering Women Index (WIN), which is part of the MSCI ESG indexes, aims torepresent companies' performance that is leading within their industry groups in terms of promoting
and maintaining gender diversity while also meeting certain quality criteria.

the Tokyo Stock Exchange.

130

Facts

Corporate

IR Awards

The All-Japan Executive Team 2020

CyberAgent placed in the top three in seven categories in the Gaming, Internet & Software sector.

by institutional Investor Research

MSCI ESG Ratings - A

Most Honored Company

Second place

Best CEO

Third place (Combined) Susumu Fujita

Best CFO

Third place (Combined) / First place (Buy-side) Go Nakayama

Best IR Professional

First place (Combined) / Second place (Buy-side) Sonoko Miyakawa

Best IR ProgramFirst place (Combined) / Second place (Buy-side)

Best IR Team

Second place (Combined) / First place (Buy-side)

Best ESG

Second place (Combined)

MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scaleof AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to
manage those risks relative to peers. As of 2020, CyberAgent received an MSCI ESG Rating of A.

2020 International ARC Awards - Silver“CyberAgent Way 2019” won Silver award in the PDF Annual Reports category of International ARC
Awards 2020.

Graphis Design Annual 2021
- Honorable Mention"CyberAgent Way 2019""CyberAgent Way 2019" has been selected as an Honorable Mention in the Graphis Design Annual 2021, aninternational design competition.

2020 International ARC Awards - Silver“CyberAgent Way 2019” won Silver award in the PDF
A nnual Re p or t s c ate g or y of Inter nat i onal ARC
Awards 2020.

Graphis Design Annual 2021
Honorable Mention"CyberAgent Way 2019" has been selected as an
Honorable Mention in the Graphis Design Annual
2021, an international design competition.

131

Facts

Corporate

Strengthening Communication with our Investor Website

We strengthened communication with the corporate site by utilizing owned

media and ensuring that visuals are compatible for display on all types ofdevices. We also proactively use social media to regularly provide earnings“IR Channel”

Go to IR Channel

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

and financial information, as well as information on other subjects such astechnological capabilities, competitive advantage, governance, empowering
women and more, in a qualitative manner .

Episode 23"AI for Effective Advertising"

Episode 21"5 ways to use AbemaTV"

Episode 22"Evolving Ad Creative of CyberAgent"Episode 20"Digital Ads Make a Quantum Leap with AI"

13 2

Facts

Corporate

Find us on social media

Facebook

CEO Susumu Fujita on Twitter

Twitter

Twitter for HR and recruiting

YoutubeInstagram for HR and recruiting

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

twitter.com/CyberAgent_PR

youtube.com/c/cyberagentofficial

LINE@cyberagent_ir

twitter.com/susumu_fujita

twitter.com/ca_recruit_info

instagram.com/ca_recruit_info/

13 3

Facts

Corporate

Disclosure Policy

Basic policy for disclosure

Quiet Period

CyberAgent, Inc. ( the "Company") will swiftly provide shareholders and investors with information while emphasizing

In order to prevent the leakage of important corporate information and ensure fairness, we have a quiet period "fromthe Financial Instruments and Exchange Act and the Tokyo Stock Exchange. Simultaneously, the Company provides

Company refrains from answering questions regarding our results and giving relevant comments. However, this doestransparency, fairness. The Company will disclose information under the timely disclosure regulations specified byprompt 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 theTokyo 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 noassurance that forward-looking statements will prove accurate or achieved, as actual results may differ materiallyfrom those anticipated in such statements.

two weeks before the end of the fiscal quarter to the earnings release day" as a general rule. In this period, thenot 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.

Contact
IR&SR Division, CyberAgent, Inc.

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