2023

CyberAgent Way
Integrated Report

TSE4751

002

Editor ial P olic y
CyberAgent, Inc. (the "Company") has prepared the "CyberAgentWay 2023 Integrated Report" to help investors and otherstakeholders understand our commitment to sustainable value
creation. In editing the report, we have referenced the International Integrated Reporting Framework proposed by the International
Integrated Reporting Council (IIRC), the Value Creation Guidance
advocated by the Ministry of Economy, Trade, and Industry(METI), and other relevant documents. For detailed financial data,
please refer to the separate "Fact Book."

Repor ting per iod
October 1, 2022 to September 30, 2023

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

003

CON T EN T S
Editorial Policy

002

CEO Message

004

Vision006

CyberAgent's Value Creation Model

007

Business Model

008

Diversified Businesses that Support Long-Term Growth009

CyberAgent's Growth Strategy

011

Media Business Growth Strategy

012

Internet AD Business Growth Strategy

034

Game Business Growth Strategy

045

Risks & Opportunities

052

ESG

058

How to Develop “Self-directed” Employees

059

Fostering a "Corporate Culture of Challenge"

064

Company Overview

078

004

CEO
Message005

Following our vision "to create the 21st century's leading

technologies since the establishment of "AI Lab," an AI researchcompany," CyberAgent has continued to expand its businessand development organization in 2016. These include thesince its inception.

development of projects using generative AI, especially in our

While we revised the forecast downward in fiscal 2023 due toadvertising business, as well as the release of a proprietary

lower-than-expected sales of highly profitable titles in our game

Japanese language LLM (Large Language Model). Goingbusiness, we also made several strategic moves aimed at future

forward, we intend to improve productivity, including work

income and profit growth. In our media business, we made aefficiency, through company-wide deployment of the generative

major investment in the FIFA World Cup Qatar 2022, which was

AI technologies that we have developed.

streamed for free through ABEMA; in our advertising business,
we continued to advance our AI and DX initiatives; and in ourWith regard to the succession planning, which began ingame business, we have been developing new game titles. As

FY2022, we have selected 16 candidates who are currently

these efforts are gradually realized, we remain committed toundergoing training. Our focus is on "creating a company thatgrowing revenues and profits from FY2024 onwards, which we

can be entrusted to the next generation" rather than "who isbelieve will lead to an increase in our share price.

chosen." To achieve this, I am preparing for a seamless
handover of responsibilities by putting into words the business

ABEMA, the TV for the Future, celebrated its 7th anniversary

decisions that have been made based on my own experiencesince being launched. It has not only increased its viewership toand sensibilities while also putting decision criteria into aover 20 million WAUs*, including the streaming of the FIFAvisually understandable format.

World Cup in November 2022 but has also established itself asa social infrastructure for connecting anytime, anywhere. Our

March 2023 marked the 25th anniversary of CyberAgent, whichinvestment in ABEMA, which we previously estimated would

has continued to increase revenues for 26 fiscal years, and intake ten years to complete, has entered a phase of deficit

addition to pursuing sustainable growth, we remain committed

reduction, and we believe we are turning the final corner.

to our purpose of "breaking through stagnation with new power
and the internet."

In the field of AI, which has attracted widespread interest, wehave been actively developing business initiatives that use new* WAU: Weekly Ac tive User sSusumu Fujita Representative Director

CEO MESS AGE

006

VisionTo create the 21st century's leading company

007

CyberAgent's Value Creation Model

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

Risks
Superior
Creation

Adaptability
tochangeSuperior
Technology

Superior
TalentExternal
Environment

Sustainablebusiness
growthContribution
to localcommunities

To createthe 21st century's
leading company

008

Business Model

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

Media
Business

Internet Ad
Business

OutcomeEconomic
value
Sales
ProfitCash

FY2023
Sales :720.2
billion yen
F Y2022
売上高 7,000 億円

OutcomeSocialvalue
Creation of new industries
Employment promotion

Game
Business

New information infrastructures
Development of IT TalentEntertainment provision

009

Diversified Businesses that Support Long-Term Growth* Our Major Products and Services at a Glance (As of September 30, 2023)

010

CyberAgent's
Growth Strategy

MediaGrow th Strategy

013

014

015

Strong Progress as"TV for the Future"
Helps ABEMA Leap
Into the Next Stage
Norishige Nagase
Senior Managing Executive Officer, Director of AbemaTV

ABEMA aims to be a social infrastructure for connecting anytime, anywhere, basedon the concept of TV innovation.
This year marks the 7th anniversary of ABEMA, which was built from the ground up
since its launch in 2016. Not only has the number of users grown steadily, but
WAU*, a key metric, has reached an all-time high as a result of streaming sports
and other popular content.
We spoke with Norishige Nagase, Senior Managing Executive Officer and Directorof AbemaTV, about how ABEMA has the potential to advance to the next stage
before its 10th anniversary, an important milestone.
*WAU: Weekly Active Users

016

FIFA World Cup Qatar 2022 Shifted the
Trajectory of the Company―What are your thoughts on the current state of ABEMA?
Since ABEMA's inception, we've been working toward the goalof establishing ABEMA as a major media provider within 10
years, and we believe we have made strong progress.
One reason behind this was the success of the free live
coverage of all 64 FIFA World Cup Qatar 2022 matches. This
gave ABEMA the chance to leap into the next stage.
The 5 million WAUs in the five years leading up to the FIFA
World Cup Qatar 2022 were matched in just one year when the
Cup was streamed and now stand at around 20 million WAUs.
This resulted in consistent increases not only in advertising andbilling revenues but also in peripheral businesses, putting thecompany in a deficit-reduction phase.
The fact that many people in Japan became aware of theconvenience and high quality of ABEMA has had a positive
impact on subsequent initiatives and activities. The level of trustand expectations among various business partners has
increased, including clients, content holders, and performers,
which has helped relationships evolve to a higher level.
The FIFA World Cup Qatar 2022 has also instilled greater
confidence in our assets, which include technology, creativity,
marketing, and operations.
Especially in terms of technology, we took on the ambitious
challenge of streaming the matches against Japan live over theinternet, which resulted in the highest number of simultaneousconnections ever seen in Japan. Still, the best indicator of our
success has been our consistent ability to stream high-quality
video.
Taking advantage of the nature of internet services, CyberAgentquickly developed a number of features, including "multi-angle
video," which allows viewers to select their favorite angle frommultiple camera feeds; "commentary," which allows them towatch the game while cheering each other on; and "gamedata," which allows them to check information about the game,p l a y e r s , a n d m o re . T h i s w a s y e t a n o t h e r e x a m p l e o f
CyberAgent's advanced technological capabilities.

Becoming a "Social Infrastructure forConnecting Anytime, Anywhere"―In the face of fierce competition in video streaming
services, what is ABEMA's competitive advantage?
ABEMA is the only company in Japan with a dedicated news
channel that streams 24 hours a day, 365 days a year, and isavailable for free. We believe that our ability to flexibly structure
and program the channel to include news during disasters andpress conferences of international interest makes ABEMA an
essential part of the social infrastructure. We hope to continue
to be a media provider that can provide everyone with the kindof content they want to watch.

017
Since its inception, ABEMA has provided news, dating reality

which has been one of our competitive advantages.

shows, dramas, sports, anime, Japanese chess, mahjong,
among other genres that cannot be covered under a TV format.

―What do you think is important when training engineers?

* "Ashita Kaigi" is an important executive meeting (=kaigi) in which new businessinitiatives and solutions that could improve CyberAgent's future (=ashita) are proposedand decided upon.

While we intend to continue broadening our streaming offerings,
our current focus is on sports and anime.

We place a high value on our ownership culture. To foster such

We have streamed a wide variety of sports, including Majora culture, it is essential to build on each engineer's sense of

League Baseball (MLB), Premier League and Bundesliga

autonomy and responsibility, to let their creativity flow and to

Soccer, K-1, professional wrestling, sumo, F-League, and more.

be flexible in response to change. But most importantly, we

To further bolster our sports content, we signed an agreement

believe that the engineers themselves should be given

with KDDI Corporation in June 2023, intending to step up suchopportunities and discretion.

efforts, contribute to the growth of the sports industry andWe provide an environment where they can propose andculture, and deliver the kind of new sports viewing experience

implement their solutions if they feel they can improve a service

that only ABEMA can provide.

they operate or strengthen their team, and we recognize thesekinds of efforts. We are always aware of having systems thatA System and Culture That Encourage
Engineers to Take Ownership―How did ABEMA become so technologically advanced?
CyberAgent has developed its business around the internet
industry since 1998. In 2006, we came up with the slogan"Technology-Led CyberAgent," under which we internalized ourengineers to strengthen our technological capabilities. In
addition, we have always invested aggressively in technologicalinnovation, including technology research as well as recruiting
and training talent.

create a virtuous cycle of opportunities and recognition, suchas holding a technical version of our Ashita Kaigi* andoverhauling our recognition system.
We are currently working hard to actively use generative AI toboost productivity.
In April 2023, we integrated "GitHub Copilot," an AI-driven
code completion tool, across the company. The tool is used byroughly 70% of engineers, the highest number of users in the
country. Going forward, we will contribute to the business byaccelerating development and improving productivity morethan ever before.

Norishige Nagase
Senior Managing Executive Officer, Director of AbemaTV
Aug. 2005 Joined CyberAgent, Inc.
Jan. 2007 Director, New Development Bureau
Oct. 2015 Corporate Officer, CyberAgent, Inc.

ABEMA also benefits from our experience and accumulated

Oct. 2018 Director, CyberAgent, Inc.

knowledge of rapid development without sacrificing quality,

Oct. 2022 Senior Managing Executive Officer, AbemaTV, Inc. (current position)

Feb. 2022 Director, AbemaTV, Inc. (current position)

018

Free Fun For All
Live Broadcast Immersive Experiences Unique to Live Broadcasting
Synchronization Creating and Capturing Japan s Modern Trends
News Always Fresh News
Convenience Freedom from Time and Space019

Delivering World-Class Content
That Is "the Highest Quality,
Or Completely Original"
Tatsuhiko Taniguchi
Executive Officer, Head of ABEMA's Programming Department

The strength of ABEMA's content is its unique ability to seize popular cultural shifts
and trends.
In addition to streaming some 25 channels of various genres 24 hours a day, 365 daysa year, ABEMA also boasts the most original episodes* in Japan among Japan-based
video services.
We spoke with Tatsuhiko Taniguchi, Executive Officer and Head of ABEMA's
Programming Department, about ABEMA's content strategy, which aims to realize aunique "TV for the future" with free live streaming, simultaneous feeds, news
coverage, and convenience," to stand out from the crowd of competitors in video
streaming services.
* Source: In-house research (January 2023)

020― What is your content programming strategy?

reaches that point.
The final step of the process is to watch the actual finished

Our current strategy is for programming to be "the highest

production and make a final quality judgment under thequality, or completely original."

direction of myself and the general producer, and then, based

With the spread of foreign-capital video streaming services, theon the quality of the production and expectations, we determine

quality of content demanded by viewers has skyrocketed. In the

how much marketing investment will be made.

face of fierce competition for quality, we strive to create

By using this new production method, the variety show "Sekai

world-class content.

no Hate ni, Hiroyuki o Oitekita (Drop Hiroyuki off at the edge of

In February 2023, we launched a project with Netflix as our

the World) and dating reality show "Shuffle Island" were bothcontent partner. The resulting original ABEMA dating reality

very successful. Both of these programs generated a buzz,

show, "Is She the Wolf?" was streamed in June of that year anddrawing a large number of viewers from their respective target

was extremely well received, rising to #4 in Netflix's rankings.

demographics.

This initiative not only served as a foothold for ABEMA to enter
the global market, but was also designed to raise awareness of―What is your view on compliance?

world-class production within the company in terms of quality
competition.
―What are you doing to improve quality?

We believe it is essential to consider the viewer's point of viewin all aspects of our work. This commitment has grown evenstronger in the aftermath of the FIFA World Cup Qatar 2022,
which has increased trust and expectations from all sides.

We are doing many things, but in terms of both speed andHowever, our mindset of eliminating the unnecessary, such as

quality, we believe that reimagining the original programming

things that are unclear as to how others will perceive them, or

planning and production process has been effective.

rules whose purpose is unclear, has remained consistent since

The process from planning to stream is divided into three steps.

ABEMA's inception.

First, the project's quality is scrutinized to ensure that it meets

We naturally consider whether programming that could be being

our standards, and then feedback is provided to the planner

offensive or hurtful to people, and do not compromise when it

within 48 hours.

comes to this. We're also committed to producing works while

This is followed by casting and detailed production planning to

upholding the highest ethical standards and pursuingensure accuracy, and the official green light is only given when it

entertaining content that touches people's hearts.

* Is She the Wolf? entered the Netflix Top 10, peaking at No. 4 (Week of June 12–18, 2023)

021

ABEMA s Content Production That Does Not
Separate "Production" From "Delivery"―What is your current production system like?
We plan and produce original works, including dramas andvariety programs, in collaboration with the content studio
BABEL LABEL as well as with highly-skilled creators both in andoutside the company.
We will extend our reach to the world by combining thesecreative powerhouses with in-house talent, who are experts ininternet business and marketing. For the time being, we plan tocontinue implementing this strategy while also focusing on
revitalization.
We often say, "Don't separate production from delivery. Unlikein the past, when the only way to reach an audience wasthrough limited advertising, marketing design is now required
from the content planning and sourcing stages. When it comesto this aspect, our company, which has created a diverse range
of internet-based entertainment businesses, possesses uniqueexpertise and knowledge.
―Wo u l d y o u s a y t h a t y o u r g re a t e s t s t re n g t h l i e s i ninternet-based marketing capabilities?

We want to continue to refine our content creation, whosestrength lies in having a unique hook that captures the times
and trends to create something of an ignition point—like a story
that seems interesting even before you see it, or a story thatm a k e s y o u w a n t t o s h a re y o u r t h o u g h t s , e v e n i f i t i scontroversial, rather than just leaving a good after-impression.

We Want to Deliver Content That
Breaks Through the Sense of Stagnationin Japan s Media―What are your plans for the future?
Under CyberAgent's purpose, to "break through stagnation withnew power and the internet," we want to keep increasing theamount of content that brings vitality to Japan.
Two examples of this are the FIFA World Cup Qatar 2022 andMajor League Baseball (MLB).
Many Japanese people, including myself, have been inspired by
the sight of athletes competing around the world. Every time I
watch a livestream, I am struck by the power of sports.
There is a lot of content out in the world that moves people. We
intend to be the sole media provider capable of delivering suchcontent on a large scale and in the right way.

Tatsuhiko Taniguchi
Executive Officer, Head of ABEMA's Programming Department

The internet is characterized by its abilities to rapidly spread

Apr. 2014 Joined CyberAgent, Inc.

information among users and exert a strong influence. Creating

Oct. 2020 Chief Diversity Officer (CDO), CyberZ Inc. (current position)

content based on this reality has always been ABEMA's strong suit.

Oct. 2018 President, eStream Inc. (current position)
Oct. 2022 Executive Officer, CyberAgent (current position)

022

Anime Choose ABEMA to Go Viral,
ABEMA Connects Anime
with its Viewers
Rina Takai
Executive Officer, Head of ABEMA's Commerce Business Department

The Anime Channel has been a staple of ABEMA since its inception.
In addition to its extensive anime lineup, the channel offers special programs, voice actor
programs, and other content that connects anime works with its viewers, and it has received
widespread support from anime fans.
Over the past decade, the anime industry market has more than doubled to 2.7 trillion yen*,making anime a growth industry in Japan. As commercial opportunities grow, we spoke with
Rina Takai, Executive Officer and Head of ABEMA's Commerce Business Department, about
ABEMA's anime strategy.
* Source: Association of Japanese Animations "Anime Industry Report 2022" (Jan. 2023)© Taiki Kawakami, Fuse, KODANSHA/ “Ten-Sura” Project

023

The Anime Channel, a Popular Genreon ABEMA― How would you characterize the state of anime on
ABEMA these days?
Since ABEMA was launched, anime works has consistently
remained at the top of the rankings in terms of viewers andcomments.
Currently, we're getting a lot of positive feedback from content
holders who tell us that streaming on ABEMA has expanded thereach of their work, and we have built a track record of several
exclusive and advance streams of animated shows.
The wide range of genres and themes of anime on ABEMA,
across our six anime channels, streaming not only the latest
works but also past works, marathon broadcasts, and more,
draws many viewers constantly.In addition, ABEMA attracts bothanime productions and viewers because, in addition to the freeservice, we offer special programs aligned with the original work
as well as a wide variety of voice-acting content, such as "Say
You to Yo Asobi," (Night out with voice actors) the industry's first
regular show featuring voice actors. Content like this allows
viewers to enjoy anime from many different perspectives.
―The fastest exclusive streaming of the wildly popular
anime "Oshi no Ko" is still fresh in our minds.
Timed to coincide with the fastest streaming of this anime, we

set up a special store where people could purchase the latestthat only ABEMA can fully realize through our investment andmerchandise. While the strength of the work itself wasother relationships from the anime production stage.

instrumental, I'm proud to say that the collaborative efforts ofAnime, manga, and figurines― what was once considered a

ABEMA contributed to maximizing the buzz.

Japanese subculture has now become a mainstream culture

We intend to continue to strengthen these efforts to makearound the world.

ABEMA a place that connects works and viewers.

In particular, the commerce area has enormous potential for

Expanding Profit-Making Opportunities for
Anime IPs to Create Win-Win Relationships
With Stakeholders

growth, not just in Japan but internationally. It should be agame-changer when it comes to competing on a global scale. In
the years to come, we will make every effort to bring ABEMA
and anime content produced by CyberAgent to the world.
*Source: Association of Japanese Animations "Anime Industry Report 2022" (Jan. 2023)―"Character goods" seem to be gaining popularity withthe rapid growth of anime.
The character merchandising market in Japan has a worth of
663.1 billion yen* and has been on the rise in recent years.
ABEMA Mart, our official online store that launched in Januaryof this year, has been working to develop products based on
ABEMA viewing data. Among the most popular items in our
online store are anime figurines and merchandise based on theoriginal program, which cannot be purchased anywhere else. In
addition to dedicated fans, demand is growing among young
people and women who enjoy light anime.
Going forward, we want to expand the scope of commerce toincrease revenue opportunities, such as by selling moremerchandise that utilizes our anime IPs.

Rina Takai
Executive Officer, Head of ABEMA's Commerce Business Department
Apr. 2014 Joined CyberAgent, Inc.

We also hope to contribute to the anime industry as a whole,Oct. 2018 President, eStream Inc. (current position)

including to content holders and viewers, by providing services

Oct. 2022 Executive Officer, CyberAgent (current position)

Oct. 2020 Chief Diversity Officer (CDO), CyberZ Inc. (current position)

024

Introducing Japan's"Oshi" Activities to the World
to Build a Highly-Profitable
Entertainment Ecosystem
Takunori Fujii
Executive Officer, Head of ABEMA's Entertainment DX Division

Since the launch of the paid online live streaming service ABEMA PPV ONLINE LIVE("PPV") in June 2020, it has featured over 500 performers, making it one of the largest
platforms in Japan. The kickboxing event, THE MATCH 2022, sold approximately
500,000 tickets, the highest ever in Japan.
We spoke with Takunori Fujii, Executive Officer and Head of ABEMA's Entertainment
DX Division, about the service's strategy and plans for global expansion.

025

Boosting Profitable Business Throughthe "Entertainment Ecosystem"― With the COVID pandemic coming to an end, whatchanges can we expect in the entertainment industry?
With the lifting of restrictions on holding events, there is a
growing demand for in-person events. Shouting loudly andfeeling a sense of unity at a live event is one of its mostdelightful aspects.
On the other hand, it is also true that online streaming has
opened people's eyes to the convenience of being able towatch live performances whenever, wherever, and however theywant, without having to travel to a specific location to enjoy
them. We believe that the internet-based experiences are here
to stay.
―What is your future business strategy in this context?
We are currently working to strengthen our IP business, which
encompasses artists, celebrities, anime, and more.
We are now able to handle every aspect in-house, from box
office planning to operation, sales, and streaming, and this has
increased our earning potential.
In July 2023, ABEMA held "Creator Dream Fes ~produced byCom.", an in-person live performance that drew around 40,000
people to the Tokyo Dome. In parallel, ABEMA streamed an
original pre-event program, sold merchandise, and held

exclusive live streaming. The number of live-streaming viewersthat would not otherwise be possible, and we are confident thatexceeded those who showed up at the Tokyo Dome, a clear

this will lead to dramatic business growth. We are dedicated tosign of the demand for PPV.

developing IPs and expanding their streaming and monetization

We've also signed a partnership agreement with "Hypnosis Mic

opportunities.

-Division Rap Battle-," a popular character rap project, andwe're working on exclusive streaming and original projects.
―The IP business in the entertainment industry seems to
be attracting a lot of attention.

Boosting Profitable Business Throughthe "Entertainment Ecosystem"

By owning numerous IPs in the fields of music, video, andanime, we hope to create an "entertainment ecosystem" thatcan compete on a global scale.
For example, we will develop artists from our ABEMA audition
program and promote them using the internet-based marketing
expertise we have developed over the years.
Then, we will build up the business and eventually monetize it
globally by mobilizing all of our assets, including box office, PPV

4Generate profits
globally

13

Expand businesswith owned assets

2

IP ownership(investment/production/
procurement, etc.)(pay-per-view), commerce, fan clubs, and advertising, resulting
in a highly profitable business model.
A good example of this is the K-pop boy group "n.SSign."
They were selected to make their debut on the Japan-Korea
joint audition program "Stars Awakening," which was broadcast
exclusively in Japan on ABEMA. We are responsible for handling
fan meetings and promotional marketing in Japan, and we arelooking to expand our activities globally in the future.
Once the "entertainment ecosystem" is in place, there will be
more opportunities to collaborate and take on new challenges

IP promotion

026

A Close Affinity With "Oshi" Activities by
Dedicated Fans
―In what areas do you see affinities with the PPV offeringsof CyberAgent?

Because athletes are matched between countries, MMA andboxing are content the world is passionate about. So it is why weare working to develop more PPV services for global markets.

Our Technological and Marketing
Advantages Gives Us the Competitive Edge

We target IPs that have a strong fan base.
"Oshi" activities (supporting your favorite entertainers or―What are the benefits of your PPV services?

characters) have flourished in Japan in recent years, and thesheer size of the population and willingness to spend is

We believe that our technological and marketing advantages

astounding.

give us a competitive edge.

In Japan and abroad, many fans of artists, idol groups, andOne of the concerns with PPV is server overload when the

2.5-dimensional entertainment have purchased PPV to watch

number of simultaneous accesses is too high. In this regard,

again after experiencing the live show.

ABEMA has extensive experience dealing with it. The free live

We have already streamed the PPV of the 2.5-dimensional

streaming of all matches of the FIFA World Cup Qatar 2022 also

musical produced by Nelke Planning, who joined the group inproved our technological advantages.

June of this year. In the near future, we are also planning a fan

In fact, we have never had a single PPV stream fail. Because

meeting after the last performance and an original ABEMA

people pay for PPV, we feel a strong responsibility to provide

program to deliver uninterrupted entertainment and maintain ahigh-quality video that cannot be experienced through freehigh level of engagement with dedicated fans.

media.We also have unparalleled marketing advantages. Unlike

Online streaming has also become commonplace in the mixed

TV broadcasts, which anyone can watch, paid PPVs are only

martial arts (MMA) field.

watched by those who are truly interested, making it more

The fact that over 500,000 tickets were sold for THE MATCH

difficult to acquire new fans. The ability to attract new fans using

Takunori Fujii

2022 kickboxing event sends a strong message that MMA

ABEMA's free programming as a marketing tool is an advantage

Executive Officer, Head of ABEMA's Entertainment DX Division

belongs on PPV. The MMA event "RIZIN" used to rely onthat only we possess.

televising rights from TV stations as a source of revenue but is

We are committed to delivering global hits in the way that only

Apr. 2006 Joined CyberAgent Inc., assigned to the Office of the President

now only streamed online, which we believe is a result of PPVABEMA can, as well as providing incredible video and user

becoming commonplace in society.

experiences to as many people as possible.

Sept. 2007 Head of Entertainment Division, Ameba Business Headquarters
Oct. 2015 Executive Officer, CyberAgent (current position)
Apr. 2020 President, OEN Inc.
April 2020 Head of the AbemaTV Entertainment DX Division (current position)

027

028

Growing ABEMA
as a "New Model for
the Future of Advertising"
Riku Yamada
Managing Executive Officer, Head of ABEMA's Business Development Division

ABEMA, the new future model of TV, aims to create "a new kind of advertising" that is a hybrid of TV
and the internet. With today's increase in users of video streaming services, 30% of TV sets in Japanare now connected to the internet, with this figure expected to rise to 43% by 2025*.
In response to the rapid proliferation of CTVs (Connected TVs), ABEMA, which can be viewed on
multiple devices, has stepped up efforts to have ABEMA buttons incorporated into the remote controlsof major TV manufacturers in Japan, as well as the development of special promotional products. As aresult, the share of CTVs in ABEMA's ad space inventory has increased to over 30%.
We spoke with Riku Yamada, ABEMA's Managing Executive Officer and Head of Business Development,
about ABEMA's business strategies and advertising business advantages, which have resulted in highadvertising effectiveness and consistent growth while adapting to changes in the digital marketing
market.
* Source: Intage Inc., "Research Report on Connected TV Trends" (May 2022)

029

Reaching a Wide Age Bracket with aSpecial Focus on the Younger Demographic― What kinds of changes have occurred in ABEMA's
advertising business?
In the 7 years since the ABEMA launched, needs and

ABEMA was originally launched to provide free videos for the
younger demographic, who prefer watching videos on theirsmartphones. We've been able to reach a wide range of age
groups, especially younger viewers, by focusing on planning
content that would be popular among the group, casting, social
media-driven marketing, and also improving national sports andother content.

expectations regarding advertising have evolved each time
ABEMA's content went viral, but the FIFA World Cup Qatar
2022, which was streamed live in November 2022, was one of
the most significant turning points.
I believe that this was due to the increased awareness of the
new future model of TV, which offers functionality and ease ofuse that frees people from time and place, combined with its

Comparison of Daily TV Viewing Demographics (2015 vs. 2020)
In 2015, 85% of all people watched TV; in 2020, 79%.
The decline is significant among the 50s and younger demographic, especially those in
their 20s and younger, where the percentage of TV viewers has dropped to about 50%.

unparalleled service that allows free viewing of a wide variety ofcontent that includes news, sports, anime, and variety shows.
People in the TV industry have told us that "ABEMA has gained
citizenship," and we believe that our ability to build up a0

Ages 10-15

service can also be effectively used for advertising.

Ages 16-19

advertising?
ABEMA is a medium that is viewed by a large number of young
people and users in their twenties and thirties who have astrong propensity to consume and are difficult to reach throughother media such as TV broadcasts.

40

60

80

100

2015

2020

All

viewership base has helped foster a sense of trust that the―What characteristics define ABEMA in terms of

20

20s
30s
40s
50s
60s
70s and over*Source: NHK Broadcasting Culture Research Institute, "Japanese Time Use Survey" (2015, 2020)

030

ABEMA Users by Age

Unknown9%

Age 35and over46%*As ofJune 30,2023

10s

46% of all users
are under theage of 34.

14%

Ages 20-34

32%

Driving Monetization Capabilities as the New
Model for the Future of Advertising―What are some of the advertising products offered by
ABEMA?
ABEMA's advertising products currently consist of planned
advertising linked to popular original programs on ABEMA anddistributed advertising, which targets viewers and delivers
advertisements for a period of time, similar to TV commercials.
For planned advertising, we plan and produce infomercials andcommercials that, for example, feature cast members from ouroriginal dating reality show. Post-delivery surveys have verified

that this is a highly effective advertising method, and they

ABEMA handles all processes in-house and employs manyreceived high praise from advertisers.

engineers and creators from development to operation. ThisThe advantage of distributed advertising, where we select viewer

gives us the flexibility to transfer staff, for example, from

attributes that match the advertiser's commercial products andprogram production to ad production or from streaming to ad

target and distribute them to programs and channels of highplatform development, so that we can create video ads tailoredaffinity for a predetermined period of time, is that it can reach at o t h e p ro g r a m ' s v i e w e r s h i p , a c c u r a t e l y m e a s u re a dyounger demographic that is not reached by television.

effectiveness, develop ad delivery systems that are easy foradvertising agencies to sell, and make any necessary upgrades―What is your long-term advertising strategy for ABEMA?

when needed.

In the medium term, we plan to expand our programmatic

including efforts to improve targeting accuracy using LLM*2.

advertising, which is one of the most appealing aspects of

We believe our competitive edge lies in our ability to adapt tointernet advertising. These are ads that can be distributed up to

the future evolution of devices, viewer usage trends, anda certain monthly budget limit without setting a specific timeadvertiser needs.

period for ad streaming. This product can be used while

We will continue to help monetize ABEMA by developing themonitoring ad unit price and ad effectiveness in order to achieve"new model for the future of advertising," combining thethe advertiser's desired results. ABEMA currently accounts forbenefits of TV and internet advertising.

Recently, we have been actively incorporating new technologies,

about 15% of all ad spaces, but we intend to increase this to
30% in three years.
ABEMA also focuses on visualizing the advertising effectivenesseffect, which is difficult to do with TV broadcasts, and on
strengthening our support for CTV advertising*1, a market that is
expected to grow to over 160 billion yen in the future. We arecommitted to meeting the needs of advertisers even when ads
are viewed on TV by quantitatively visualizing advertising effects
in a manner similar to internet advertising.

*1 Source: AJA/SMN/Digital InFact "Market Size for Connected TV Advertising in Japan"(March 2022)*2 LLM: Large Language Model

Riku Yamada
Managing Executive Officer,
Head of ABEMA's Business Development Division
Apr. 2011 Joined CyberAgent, Inc.
Apr. 2015 Head of Media Development Division, Ameba Business Headquarters (currently Media
Headquarters)
Oct. 2015 Executive Officer, CyberAgent Inc.

―What are ABEMA's competitive advantages in advertising?

Oct. 2017 Head of the AbemaTV Business Development Division (current position)
Dec. 2018 Director, CyberAgent, Inc.
Oct. 2020 Managing Executive Officer, CyberAgent, Inc. (current position)

031

Combining Sports and Technology
to Create New Value
Chihiro Sano
Executive Officer, President of WinTicket Co., Ltd.

Apr. 2013 Joined CyberAgent, Inc.
Apr. 2015 Director, Applibot, Inc.
Nov. 2018 President, WinTicket Inc.
Oct. 2022 Executive Officer, CyberAgent (current position)

WinTicket is an internet betting service for cycle and auto racing. Despite being a latecomer to the market,
WinTicket now accounts for over 40% of the online betting market for cycle racing by leveraging its close
relationship with ABEMA, as well as its user interface (UI) design and marketing capabilities. Transaction
volume continues to increase at double-digit rates, contributing significantly to ABEMA-related sales.
The spread of internet betting in recent years has helped the cycle racing market* to expand to over 1 trillion
yen. We spoke with Chihiro Sano, Executive Officer and President of WinTicket, about the service's futurebusiness strategy.
*Source: Japan Keirin Autorace Foundation, "Total Ticket Sales in FY2022" (April 2023)

032

033

Cultivating New Cycle Racing Fansto Be No.1 in the Industry― Despite being a latecomer to the industry, having
launched in 2019, you have steadily increased your market
share to become number one in the industry. What is yourcompetitive advantage?
I believe it is because our target market is clearly different fromthe target of other companies' services. Our strategy is tocommunicate the appeal of WINTICKET to people who havenever experienced cycle racing, rather than to those who have.
The fan base for cycle racing and other government-regulated
betting sports is aging. But in the case of WINTICKET, roughly
80% of users are in their 20s to 30s. The difference is clear evenwhen looking at the age groups.
The key to this strategy has been CyberAgent's marketing
advantages, the fact that it operates ABEMA media, and its
development capabilities.
Through marketing, WINTICKET has communicated the appealof cycle racing ("keirin") to people who have never experienced
it before to spark their interest, and created experiences forpeople to learn about and enjoy cycle racing through ABEMA
programs. I believe that ABEMA's programming expertise andname recognition as a media outlet were instrumental in this.
Development capability is also important. Because we aretargeting a new audience, we need to make sure that theservice is really easy to use or that people abandon it. Even for
cycle racing services, our competitive advantage is our ability tocreate a UIUX (user interface/user experience) that is simple foryoung people to use. WINTICKET was also the first to introduce
a smartphone payment service in a government-controlledgambling sport.
When people hear the phrase "expand market share," itconjures up images of fighting over pieces of the same pie, but
fighting within the same market only limits the growth ofservices. We believe that services have expanded as the overallmarket has grown by capturing new audience, and we believethat further growth can be achieved in the coming years byattracting even more new users.
―The market for cycle racing has surpassed 1 trillion yen, andthe proportion of internet betters has risen to more than 80%.
How are you going to keep increasing the number of users?
We have a business strategy for each phase of our business.
The phases are divided based on the target audience, which is acombination of demographics and the level of cycle racingawareness. Right now, WINTICKET is in Phase 1, which means
it is still in its infancy based on our perception.
Of course, the level of difficulty increases as the phases
progress, but we are gaining knowledge at the same time. We
hope to continue to grow the popularity of cycling and to workwith the industry as a whole.
In any case, cycle racing is simply a lot of fun to begin with.The
word "gambling" may have a negative image, but it is awonderful form of entertainment when done responsibly.
Combining this with the great potential of this engaging sport,

we believe the market is going to continue growing.

Bringing Innovation to the Sports Experienceand Offering New Ways to Enjoy It―What is your vision for WinTicket?
We want to bring innovation to the sports experience.
Specifically, by integrating AI technology, sports data, andsports video, we want to create new experiences and newvalue. The actions that we have planned are already taking
shape, and I think we'll be able to announce them soon.
Cycle racing, our current focus, is the only government-controlledgambling sport that is also an Olympic sport. Given that ABEMA
is also focused on sports content, we believe we can achieve asynergistic effect with the group.
WINTICKET currently offers cycle racing and auto racing, bothof which are government-controlled gambling sports. Still, wewant to expand our efforts to sports in general to make thesports business a major pillar of CyberAgent in the future.

Internet AD
Growth Strategy

035

Our "Client First Principle"
Has Not Changed
Since Our Founding
Yasuo Okamoto
Executive Vice President, Head of Internet Advertising Headquarters

The internet advertising industry now accounts for roughly half ofCyberAgent's total sales.
We spoke with Yasuo Okamoto, Executive Vice President, and Head ofInternet Advertising Headquarters, who has long led the business,
which boast the largest market share in Japan, about CyberAgent's
strategies for continued growth and the strengths of the company.

036

Maximizing Advertising Effectivenessfor Clients―CyberAgent holds the top market share in Japan forInternet advertising transaction volume, but what competitive
advantages have made this possible?
It all comes down to the systematic implementation of ourstrategy to "maximize advertising effectiveness'' for clients.
While our advertising business has grown in line with market
growth, we have been committed to effective advertising since
the early days of the internet, and have continued to improve
the structure and technology required to achieve it.
The biggest difference between traditional mass advertising andinternet advertising is the fact that we can quantitatively
visualize advertising effectiveness.
We have a long history of improving our clients' sales andprofits through meticulous processes designed to optimize
advertising budgets, such as product-specific targeting, the―What are some of the ways you are maximizing

financial crisis of 2008 and rapid market shifts caused by theadvertising effectiveness?

emergence of smartphones; however, I believe that "change iswhat makes the difference."

We do this by improving operational and technological capabilities.

Without being bound by past practices or preconceived notions

The early days of internet advertising were dominated by "pureof how things should be done, we put tremendous thought intoadvertising," where ad space was reserved and purchased inminimizing downsides and into the process of all employees

advance, but gradually, "programmatic advertising," which allows

working as one to implement the solution. We are able to growbidding for each ad impression or per click, became widespreadsignificantly both as an organization and as individuals.

and now accounts for approximately 80% of internet advertising.

This previous experience has taught us to view crisis as an

In response to the proliferation of search services, CyberAgent

opportunity, and even when economic conditions worsened after

founded CA Search Inc. in 2003, a search advertising company.

2020 due to the COVID pandemic, we were still able to achieve

In 2008, we founded CA Advance Inc., an advertising operating

revenue growth that outpaced market growth by shifting to newcompany, and in 2016, we built AI Lab, a facility dedicated to AI

business areas where there was client demand.

research. I'm proud to say that through efforts such as these,

Going forward, as the mainstay of business shifts from the physical

we've done everything we could to contribute to the goal ofworld to the internet, we want to remain our clients' most valuable"maximizing advertising effectiveness."

partner by using our ability to respond to change, and we hope to

Aiming for Sustainable Growth ThroughAdaptability to Change

provision of creatives with high advertising effectiveness,bidding adjustments, and more.

―Internet advertising is said to be heavily influenced byThis is why we have been able to capture a large share of thethe external environment, such as business sentiment, butmarket, and it has contributed to recognition and trust fromwhat is your view on this?

clients.

reshape the history of the advertising industry itself.

Yasuo Okamoto
Executive Vice President,
Head of Internet Advertising Headquarters
Apr. 2013 Joined CyberAgent, Inc.
May 2003 President, CA Search Inc.
Apr. 2007 Director of Internet Advertising Headquarters, CyberAgent, Inc.

We've faced various environmental changes, such as the global

Dec. 2008 President, CyberAgent, Inc.
Dec. 2020 Executive Officer and Vice President, CyberAgent, Inc. (current position)

037

The Goal of Training
Is the Success ofClients' Businesses
Noriko Kawai
Executive Officer, Sales Director of Internet Advertising Headquarters

With the number of executives and employees in internet advertising increasing
by 419 over the previous year to 2,381*, human resource development is
becoming increasingly important.
We spoke with Noriko Kawai, Executive Officer and Sales Director of Internet
Advertising Headquarters , about the company's approach to training programs
and specific initiatives.
*Total number of executives and employees in the internet advertising business (As of the end of September, 2023)

038

Fostering a "Client-First" Culture
Through Training Programs―W h a t a re y o u r p r i o r i t i e s w h e n i t c o m e s t o h u m a n
resource development?
We have prepared several programs in the internet advertisingbusiness that are geared to each member's stage of development.
The concept of "understanding our advertising clients to help theirbusinesses grow" is the topmost priority in all programs.
Each program is designed from the client's perspective, including"market forecast" and "the best account strategy to increase client
sales", and the evaluation criteria for the outputs are aligned withthis. The "client comes first" culture has been a core value for us
since our inception, and we have built it into our training programs.
The fact that many employees can work autonomously towards
the business strategy of "maximizing the effectiveness of client
advertising" is the result of a training program that simultaneously
disseminates the strategy and fosters culture.

Continuing to Provide Opportunities ThroughDiverse Training Programs

members to leadership training for executives, our training

Overview of Training Projects

programs systematically cover every stage an employee goes
through and are administered according to effectiveness andsituation.
Specifically, "CYBIRTH," an orientation program for new hires todeepen their understanding of our culture, and "Generations,"

Management

Executive

which trains new hires to become full-fledged account planners
members and veterans, we offer the "HEROES" program, which
is designed to increase the number of new client acquisition

Middlespecialists. Through these various programs, we strive toi n t e r n e t a d v e r t i s i n g b u s i n e s s , w h i c h h a s u n d e rg o n eTrainer training

Executive trainingHR
Awareness
Workshop

Improvesolutionproposing
capabilities

New
clientdevelopment
capabilities

Specialtyenhancement training

Role-playing quest

maximize our organizational performance.
― Was it difficult to create a training scheme for the

Director training
Manager training

over six months, are core programs we focus on. For key

Players

RookieHoning competitivenessPromotion of cultural understanding

significant changes in technology and organizational scale?
In line with changes in digital advertising, the knowledge andA major factor, in my opinion, was the urgent need to rebuild theskills required for staff involved have changed on a daily basis.

training program as a mechanism for understanding work

As our business has grown, so has our organizational scale,conditions and managing motivation to ensure that work efficiency

making it necessary to consider training programs optimized foris not compromised when employees work remotely.

each employee.
It took many years of trial and error, but the fundamentals of the―How much time does the leadership devote to training?

programs have become well-established in recent years. We have
―What kinds of training programs do you provide?
From onboarding training to developing the capabilities of new

made excellent progress, especially during the COVID pandemic,

It is not an exaggeration to say that they devote half their time

when working from home was introduced as a new way ofto training. Yasuo Okamoto, one of CyberAgent's top

working.

executives, has always told the leaders to "watch for signs of039
hidden talent in members and give them opportunities." I think it

We will continue striving to create an environment in which

is a good example of our commitment to human growth in theeveryone can maximize their potential in any situation, and weorganization.

aim to create an organization that can produce incredible results.

Female Managers Account for 28.8% ofInternet Advertising Business * 1―What are your thoughts on promoting and developing
female executives?

*1: Percentage of female employees in management positions at CyberAgent (Internet
Advertising Headquarters) (as of June 30, 2023)*2: Number of employees in the internet advertising business at CyberAgent (Internet
Advertising Headquarters) (as of June 30, 2023)*3: Percentage of women in managerial positions equivalent to section managers or higher
at companies (MHLW, "FY2022 Basic Survey of Gender Equality in Employment

Management," published in July 2023)

Of the 1,075 * 2 executives and employees in our internet
advertising business, 41.3% are women, an even higher
percentage than the 32.3% of engineers in our subsidiaries,
which itself is quite high.
Since we have many clients that sell women's products,
diversity in our organization is essential.
As a result of our decades-long focus on women's empowerment
and executive development, our ratio of female managers is
28.8%, which is very high compared to Japan's overall ratioof 12.7%.*3
We have also implemented a follow-up system after being
selected for executive positions, including the "WE PROJECT,"a cross-organizational talent maximization measure aimed atstrengthening ties and building relationships among managers.
It is critical that we strengthen our organizational capabilities toprepare for future difficulties in meeting client expectations andsolving business problems. Calculating backward from the
projected growth of the internet advertising market, we believethat we will need two to three times as many top players andleaders as we currently have.

Noriko Kawai
Executive Officer, Sales Director of Internet Advertising Headquarters
Apr. 2014 Joined CyberAgent, Inc.
Oct. 2017 Corporate Officer, CyberAgent, Inc.
Mar. 2019 Maternity/childcare leave
Apr. 2020 Returned to the Internet Advertising Headquarters as Director of Sales
Oct. 2022 Executive Officer, CyberAgent (current position)

040

A Sense of Crisis Inspires
Creation of New Advertising Business
Takahito Naito
Managing Executive Officer, Head of AI Business Unit

Armed with advanced technological and creative capabilities, the internet
advertising business has been pioneering the advertising industry.
Takahito Naito, Managing Executive Officer and Head of AI Business Unit, hasbeen engaged in ma ximizing adver tising effec tivenes s by adopting
cutting-edge technology and maintaining a forward-looking perspective.
We spoke with him about what led to using AI technology, future development
plans, and the potential for entering new fields.

041

Plunging into the Research andDevelopment of AI Technology After
Reaching the Limit of Human Effort―AI has been in the news almost every day in the last year
or so. I believe you were among the first advertising agencies
to start researching and developing AI technology, but what
was the chain of events or background that led to this?

Since then, we've used AI technology to accomplish various―AI Lab also seems to be strengthening

tasks, including effective ad delivery based on machineindustry-academia collaboration with universities andlearning, support for creating ad creatives such as text,

academic institutions.

banners, and videos, and automatic data analysis.
We are proud of the highly effective advertising of the "Kiwami

To date, we have collaborated with numerous universities andPrediction Series" (ad products using generative AI) that has

institutions in Japan and abroad (Osaka University, Yale

resulted from these efforts, and we are confident that we are

University, Tokyo Institute of Technology, University of Tokyo,

helping our clients maximize the effectiveness of theiretc.) in a variety of research areas, and we have implemented

advertising.

around 30 projects based on industry-academia collaboration
with major research laboratories.

We first conceived the idea in our internet advertising businessWe have conducted joint research with top researchers,around 2014, and then in 2016, we launched "AI Lab" as an

Kiwami Prediction AI

R&D organization tasked with conducting R&D on a wide range

U ses AI to create highly effective
adcreatives.
Preliminary results*1 show 2.6 times
greater advertising effectiveness.

of AI technologies related to digital marketing.
By 2019, we had established an AI Business Unit dedicated todeveloping internet advertising businesses with AI technology
and creating new AI-related businesses.
newspapers, in that advertising messages can be personalized to

Kiwami Prediction TD

suit the target. In particular, programmatic advertising requires
the production of a broad spectrum of advertising creatives in ashort timeframe and rapidly implementing creative work tomaintain advertising effectiveness.

language processing and has published several books; andProfessor Takehito Kojima of Tokyo University, one of theeconomics.
AI Lab, which aims to create business value through AI
technology while also contributing to academia, has submitted

Preliminary results *2 show 2.3 times
greater advertising effectiveness.

conferences in a wide range of academic and research fields.

and presented numerous papers at world-renowned international
Approximately 50 papers are peer-reviewed and accepted
annually, with a high acceptance rate of about 45% in 2022.

staffing burden on agencies that produce digital advertising. We
also felt a sense of urgency to find new ways to be creative andadvantage in the future.

Tokyo Institute of Technology, who leads research in natural

Uses AI to automatically generate ad textthat matches searches.

This massive and ever-increasing workload places a heavy

resolving these issues while also providing a competitive

leader in robotics research; Professor Manabu Okumura ofworld's leading researchers in market design research inInternet advertising differs from mass advertising, such as TV andgenerate value. Using generative AI would be critical toincluding Professor Hiroshi Ishiguro of Osaka University, a world

予測AI人間

極予測LED*1 Ad effectiveness win rate when comparing creatives made using the "conventional
produc tion process" versus those created using the "K iwami Predic tion AI
production process."*2 Increase in search keyword quality score when comparing creatives made using the"conventional production process" versus those created using the "Kiwami Prediction
AI production process."*3 Thundermark CapitalCapital " AI Research Ranking 2022. "042

CyberAgent has also been ranked among the Top 100 Global

This has raised expectations for using the "proprietary data held

Model) early in the internet advertising business, but what is

Companies Leading in AI Research in 2022*, placed 4th inby companies" I mentioned earlier.

your view on the future possibilities of generative AI and LLM?

Japan and 49th in the world.

When the Banking Act was revised in May 2021, it greatly

Since 2016, CyberAgent has also prioritized the recruitment andbroadened the scope of banking business, allowing banks to

We are currently using generative AI and LLM in-house totraining of highly specialized personnel, including the appointing aenter the advertising business.

generate ad text for our "Kiwami Prediction AI" and "Kiwami

researcher a recruiter. We hope to contribute not only to businessThis has helped CyberAgent quickly form partnerships with

Prediction TD," but we have also begun to apply them toexpansion but also to Japan's technological advancement.

major Japanese companies, especially in the finance, retail,services beyond advertising and to improve internal operations

mobility, and telecommunications sectors, and we are working

and boost work efficiency.

to create new advertising businesses.

We p l a n t o w o r k w i t h o t h e r c o m p a n i e s t o d e v e l o p

We h a v e n o w s i g n e d c o l l a b o r a t i o n a g r e e m e n t s w i t h"industry-specific LLMs" by having the technology learn uniquecompanies that have a strong affinity with our advertisingindustry-specific data, and we also plan to launch a business tob u s i n e s s , a n d w e a re w o r k i n g h a rd t o d e v e l o p t h e s esupport other companies' use of LLM.

partnerships into actual businesses.

In the rapidly changing internet industry, we will continue to

In addition to our distribution network, which boasts top

shape the future of internet advertising by leveraging technology

performance in the internet advertising industry, we intend toand creativity while incorporating technological innovations.

New Advertising Business Created
Together with Partners―Given the various changes that digital advertising has
undergone, what changes do you expect to see in the future?
Major global media sites like Google and Facebook are primarydestinations for advertisements today, but I believe similar
global platforms will not emerge in the future.
Instead, we believe that a number of "local platforms" will emerge,
on which each company that owns so-called first-party data, suchas purchasing data and behavioral data on e-commerce sites andcreate new businesses for our clients and turn the business intoa sustainable growth industry by leveraging our track record inoperating digital advertising, developing technologies for the addevelopment of AI technology.

Takahito Naito

apps, will build their own advertising business.
In recent years, regulations governing the use of third-party data
to protect personal information have become more stringent,
making it more difficult to obtain cookies (recorded data from

Future Opportunities of Generative AI
and LLMs

websites visited) and IDFAs (identifiers for advertisers used on
iOS devices) that can be used for advertising.

*Thundermark Capital, AI Research Ranking 2022 (May 2022)

distribution infrastructure, and conducting research andManaging Executive Officer, Head of AI Business Unit
Apr. 2001 Joined CyberAgent, Inc.
Apr. 2008 Head of Internet Advertising Headquarters, CyberAgent, Inc.
Oct. 2014 Head of Ad Tech Division (currently AI Business Unit), CyberAgent, Inc.

―The AI lab developed and released an LLM (Large Language

Dec. 2010 Director, CyberAgent, Inc.
Oct. 2020 Managing Executive Officer, CyberAgent, Inc. (current position)

043

Kiwami AI Odaiba Studio opened in September 2023. Equipped with state-of-the-art facilities, including threeof Japan's largest LED walls, various scanning systems, including 4D scanning, and a BOLT motion control
camera, the studio pursues advertising effectiveness and image quality while utilizing AI and CG technologies.

044

Grow th Strategy

046

Create a Steady Streamof High-Quality Hit Games
Koki Ukita

Yusuke Hidaka

Managing Executive Officer

Director, Executive Vice President

Since its 2009 entry into the market, CyberAgent's Game Businesshas grown in parallel with the growth of the smartphone game market.
We spoke with Yusuke Hidaka, Director, Executive Vice President,
and Koki Ukita, Managing Executive Officer,
about the events of the past few years
that have brought about major changes in the environment,such as the impact of COVID and the full reopening,as well as CyberAgent's current competitive advantages
in the gaming business and future prospects.

047

We believe it is critical to strengthen
our company's collective capabilities inorder to consistently create hit titles. (Hidaka)
Leveraging Our Collective Capabilities
to Compete in a Highly
Competitive Environment― What is happening in the smartphone game market in

Pursuing a "AAA Strategy" withJapan's Largest Development System― What is your long-term business strategy?

Japan now?

Hidaka: In our game business, our strategy leverages the

Hidaka: The domestic smartphone game market has changed

in ongoing game development.

dramatically in recent years, as the gaming population has
grown in response to demand from the home-nesting that tookroot during the COVID pandemic. The market's current size isaround 1,212.9 billion yen*, placing Japan third in the world after
China and the United States.
"Umamusume: Pretty Derby"*2, released in February 2021,
became a massive hit for our company, indicating a significant
transition period.
The smartphone gaming market has been growing steadily.
However, growth is slowing, partly due to the impact of thereopening of COVID.
We expect competition to intensify further as the market maturesand more foreign companies enter. As consumers demand higher
quality, we believe it is critical to strengthen our company's
collective capabilities to consistently create hit games.

strengths of each of our 10 game-centric subsidiaries to engage
Cygames, which specializes in original IP, has already produced
several hit games. Even after the 9th anniversary, "Granblue
Fantasy"*3, one of its flagship titles, remains a mainstay title forthe company, with console games scheduled for release in
December 2023 and February 2024.
For "Umamusume: Pretty Derby"*2, we are currently striving tocreate a title that users will love for years through a multimedia
franchise that will expand the title beyond the scope of asmartphone game to include the production of TV anime andcomic series.
Ukita: At another one of our game subsidiaries, SGE(Smartphone Game Entertainment Division), we haveestablished a "AAA (Triple-A) Strategy," with the goal of
producing global hits with powerful IPs.
A good example of this is "FINAL FANTASY VII EVER CRISIS"*4

CyberAgent, Inc.
Yusuke Hidaka Mar. 1998 Establishedand was appointed as Managing Director.

Director,
Executive Vice President

Oct. 2010 Director and Vice President of CyberAgent (current position)
May. 2011 Director, Cygames, Inc. (current position)
Oct. 2020 Executive Officer, CyberAgent, Inc. (current position)*1 Kadokawa Ascii Research Institute, "Famitsu Mobile Game White Paper 2023" (March 2023)

048

To develop hits in the face of fierce competition, we must havea solid development system, technological capabilities,
a commitment to pursuing quality, and operational capabilities. (Ukita)
which was released in September 2023. Without altering the
beloved world and lore of the highly popular FINAL FANTASY
VII*5 series, we hope to not only satisfy existing fans but also
expand our new fan base through smartphone games.
― What are your competitive edges?
Ukita: I believe we have the largest smartphone gamedevelopment organization and operational capabilities in Japan.
To develop hit games in the face of fierce competition, we musthave a solid development system, technological capabilities, acommitment to pursuing quality, and operational capabilities.
Although the development time for each title is longer than in
the past, each member has worked with great enthusiasm,
which has helped to further increase confidence in the quality ofCyberAgent, and we have recently received more and more
inquiries from prominent IP content holders.
Another advantage is the flexible collaboration between
subsidiaries, each with its own strengths, and the flexible
movement of personnel.

Koki Ukita
Managing Executive
OfficerThroughout the game industry, information is actively exchanged
2011 Joined CyberAgent, Inc.
2014 President, Applibot, Inc. (current position)

between offices from the development stage, in addition to2018 Director, Colorful Palette Inc. (current position)

pre-launch tests performed by top management team.

2020 Managing Executive Officer, CyberAgent, Inc. (current position)

By maximizing group synergies without organizational boundaries

between subsidiaries, we are now able to produce high-quality
titles regardless of which company is working on them.

Production Team s Passion is Essential forGames to Become Timeless Classics― Game business consists of several subsidiaries, but dothey all follow the same HR strategy?
Hidaka: The major titles we are currently working on take atleast three years to develop and require around-the-clock work
even after release. Titles that are destined to become timelessclassics are born not only from a high level of technical skill but
also from the passion of developers, who must thoroughly
consider the user's perspective and whether they will truly findthe game entertaining.
Ukita: In this regard, I feel that every member of the production
team has a deep passion for their project.
It has been six years since we launched the "AAA Strategy," andthe titles that core members have experience working on are
now in their third round, which creates a virtuous cycle. I feelthat the organization has become stronger by having more049

experienced staff, and we anticipate that their knowledge-sharing
and training will accelerate in the future.
Hidaka: The CyberAgent Group, which launched its gamebusiness in 2009, is now one of the largest companies in thesmartphone game market in Japan. We also have the mostmodern development facilities, and I believe we have anenvironment that allows our talent to maximize their abilities.
By implementing a variety of approaches that leverage thestrengths of each subsidiary, we will continue to develop titles of
the highest quality that are universally popular around the world.

*2 Umamusume: Pretty Derby, © Cygames, Inc.
*3 Granblue Fantasy, © Cygames, Inc.
*4 FINAL FANTASY VII EVER CRISIS, © SQUARE ENIX
Powered by Applibot, Inc. CHARACTER DESIGN: TETSUYA NOMURA /CHARACTER ILLUSTRATION: LISA FUJISE*5 FINAL FANTASY VII, © SQUARE ENIX

050

© SQUARE ENIX Powered by Applibot, Inc. CHARACTER DESIGN: TETSUYA NOMURA / CHARACTER ILLUSTRATION: LISA FUJISE

051© SQUARE ENIX Powered by Applibot, Inc. CHARACTER DESIGN: TETSUYA NOMURA / CHARACTER ILLUSTRATION: LISA FUJISERisk s & Oppor tunitie s

053

Risks & Opportunities

Risks to Sustainable Growth of the Company

Sustainability
Classification

Superior
Creation

Risk item

Social Change

Adaptability
to change

Superior
Technology
Adaptability
to change

TechnologicalInnovation

CyberAgent has implemented various initiatives to continue to create new opportunities in the everchanging internet domain. We strive for sustainable growth by focusing on our ability to respond tochange while adapting our initiatives to the situation.

Our Approach

Procedures and Systems
that Provide Countermeasures

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

We are implementing a series of initiatives to enhance our ability torespond to change as we develop our business based on the internet
industry, where technological innovation and consumer preferenceschange rapidly.
While continuously creating new businesses and aggressively investing inareas that need strengthening for business expansion, we can flexibly
change our business portfolio and achieve sustainable growth by making
timely business transformation and market exit decisions. We are currently
using AI technology to develop products and improve operational efficiency
in various areas, including the advertising business.

"Ashita Kaigi"

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

Our group's wide range of services―including ABEMA, over 50 titles ofsmartphone games, and advertising products using AI technologies―arecreated by over 2,500 engineers and creators. We have formed a researchorganization to promote industry-academia collaboration to incorporate
the latest technologies across various business areas. Aiming to balance
solving business challenges and contributing to academia, CyberAgentleads Japan* in the number of scientific papers adopted at international
conferences in AI research.
To promote technology management, we have also allocated highly
skilled and experienced personnel as leaders who can make quick
decisions with management strategy and development. Furthermore, touse cutting-edge technologies in our business, we certify individuals withoutstanding knowledge and skills in specific areas as experts and support
their activities internally and externally.

AI LabContent

・Loss of competitiveness dueto the inability to predict orslow prediction oftechnological innovation* Source: "AI Research Ranking 2022," calculated based on the paper results of
ICML2021 and NeurIPS2022(a meeting to decide on new business initiatives
and solutions to company-wide issues)

Opportunities(value creation)

To generate new value
through the creation of
new businesses

Financial Strategy Meeting(strategy presentations by business managers)

CAKK Program(a program to manage the growth ofCyberAgent's (CA) businesses and subsidiaries
with the goal of continuously increasing"enterprise" (K, Japanese=kigyou)"value" (K, Japanese=kachi).

(R&D organization)

Leader Certification Program(technology management)

Developer Experts Program(enhance technical capabilities)

CA BASE SUMMIT("Ashita Kaigi" for technical staff)

CA BASE CAMP
(technology conference)

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

054

Risks to Sustainable Growth of the Company

Sustainability
Classification

Superior
Technology

Risk item

Information
Security

Adaptability
to change

Content

・System outages due to malware
infection or unauthorizedaccess, data corruption, andinformation theft

Our Approach

Procedures and Systems
that Provide Countermeasures

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

Information Security
Protection of personal information
Japan CSIRT Association

・Loss, leakage, removal or
misuse of personal, technical orother important information

FIRST

・Financial damage or loss oftechnological competitivenessdue to a third party exploiting
leaked critical information

Japan Network Security Association

Opportunities(value creation)

To gain public trust byproviding safe, secureand reliable services(Forum of Incident Response and Security
Teams)(JNSA)

・Reputation damage, incurringof damage compensation, lossof public trust, loss ofopportunities, etc. arising fromthe above

Superior Talent
Adaptability
to change

Securing
Human
Resources

・Intense hiring competition
making it virtually impossible
to recruit and retain enoughtalented people
・Lack of management
succession

To secure highly capable personnel, we have implemented a number ofHR measures that emphasize "hiring, training, active utilization, andputting the right person in the right place" and provide an environmentand system in which each and ever y employee is able to wor k
independently and produce results. To recruit outstanding talent fromacross Japan, we continue to aggressively recruit employees in line withthe times, such as through inter nships and online recr uitment
conferences, and we also create a culture in which employees areactively involved in recruitment efforts.
To develop the next generation of leaders, we also work to develop
successors by providing the opportunity for approximately 20 selected
members to participate in a President Training Program based on acustomized curriculum.

DASH(onboarding policy for prospective employees)

President Training Program(successor development)

CyberAgent Awards(company-wide awards)

CA BASE AWARD(technical awards)

JB Career Program(technical career development)

YMCA(youth activation)

Reskilling Center(skill improvement)

CA Seminar Program(skill improvement)

To boost
competitiveness andachieve sustained
corporate growth bybolstering humanresources

Risks to Sustainable Growth of the Company

055

Our Approach

Procedures and Systems
that Provide Countermeasures

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

We place a high value on employee job satisfaction and strive tomaintain an environment and health management system that allow
employees to do their best work without experiencing physical ormental stress. We promote a number of health initiatives, including
monitoring of working hours to prevent overwork, measures to increase
the rate of regular health check-ups, and in-house seasonal flu
vaccinations (free of charge), as well as the opportunity to meet with an
occupational health physician as needed and a licensed clinicalpsychologist once a month for those who wish to see a counselor.

Healthy Workstyle

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

NaturalDisasters, etc.

・Changes in the businessenvironment due to climatechangeTo contribute to the realization of a sustainable society, CyberAgent
strives for a balance in reducing the environmental impact of climatechange while maintaining the efficiency of business activities.
If an earthquake, typhoon, or other natural disaster should occur,
CyberAgent has systems in place to quickly and appropr iately
implement crisis management and recovery measures.

Environment

To create sustainable
societies

Legal
Regulations

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

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

Japan Association of New Economy

To create business
opportunities

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

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

Mission Statement

Sustainability
Classification

Risk item

Superior TalentWorking
Environment

External
Environment

External
Environment

Adaptability
to change

GovernanceComplianceContent(JANE)

Opportunities(value creation)Council for Sports Ecosystem Promotion
Lobbying activities

Risk GEPPO(pulse survey of all employees 4 times a year
to identify potential risks in the company)

Compliance Training

To eliminate
non-compliance andfoster public trust

056

Risks to Business Growth

Sustainability
Classification

Governance

Governance

GovernanceRisk itemMedia
Business

Internet
Advertising
Business

Game
Business

Our Approach

Procedures and Systems
that Provide Countermeasures

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

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

Safe and Sound Media Service Operation

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

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

Advertising Compliance

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

In all the games that we operate, CyberAgent is committed to protecting
young users and providing fun games in a safe and secure environment
for all people who use our services. To ensure this, we deliver services
in strict compliance with all relevant guidelines.

Safe and Sound Gaming Operations

Content

Safe and Sound Dating App Service
Japan Internet Safety Promotion
Association (JISPA)

Opportunities(value creation)

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

Mobile Content Forum (MCF)
Marriage Support Project

Research Ethics Guideline
Japan Interactive Advertising
Association (JIAA)
Japan Advertising Review Organization(JARO)
Japan Joint Industry Committee for
Digital Advertising Quality & Qualify(JICDAQ)

Computer Entertainment Supplier's
Association (CESA)

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

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

Risks to Business Growth057

Sustainability
Classification

Risk item

Adaptability
to change

Investment
development
business

Adaptability
to change

M&A(corporate
acquisitions,etc.)

Our Approach

Procedures and Systems
that Provide Countermeasures

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

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

CyberAgent Capital, Inc.

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

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

Content(investment development business)

Fujita Fund(an initiative that supports entrepreneurs)

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

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

Opportunities(value creation)

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

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

ESG

059

ー

A Corporate Culture of Taking on Challenges ー

At CyberAgent, employees significantly contribute to our competitiveness and are thesource of our corporate growth. It goes without saying that we have focused on humanresource development, but our efforts do more than just that.
We believe cultivating a corporate culture and foundation of growth for our talentcomes first.
We spoke with Senior Managing Executive Officer Yuko Ishida to learn more about ourhuman resource development policy, our philosophy regarding “self-leadership” and“freedom and responsibility,” as well as why 87.5%* of employees believe working at
CyberAgent is “meaningful and rewarding.”* Stress test conducted in FY2023

060

Yuko Ishida
Senior Managing Executive Officer
General Manager, Recruitment Strategy DivisionCorporate Culture: The Foundation of
Employee Development― What is CyberAgent’s human resource development policy?
Our mission is to “nurture talent with decision-making
experience.” We aim to develop talent with self-reliance and theability to make their own decisions so that they may growindependently.
To achieve this goal, we identify the unique talents of each
employee and utilize their knowledge and skills while also
providing tasks and opportunities to develop their strengths. As
they gain various experiences and knowledge in the process,even failure becomes a valuable ingredient for the next
opportunity. We consider this entire cycle to be “humanresource development.”
Of course, every employee must possess the knowledge
necessary for each division/line of work and receive training invarious areas, such as risk management and leadership.
However, rather than a one-size-fits-all approach, we prefer to leteach business and line of work create its own development plan
based on what best supports growth in their respective positions.
This is because, as a company that deploys diverse businesses
in line with changing times and technological innovation, theskills and knowledge required are constantly being updated.
Training alone won't help our people to grow. These efforts
would be pointless without providing a 'nurturing foundation'
where they can make use of what they have learned and haveopportunities to make decisions and implement them.
Since the dawn of the internet, we have worked to realize ourvision “to create the 21st century’s leading company” and havegrown by cultivating new markets and developing numerous
business ventures. The cumulative experience of success andfailure over the past 25 years has created a culture of taking onchallenges, even the most difficult ones.
The growth of individuals can be achieved by a combination of
the number of decisions they've made and the difficulty of themissions they've been on. Missions completed will lead to thecompany's growth- so the individual's growth equals thec o m p a n y ' s g r o w t h . We b e l i e v e t h a t c r e a t i n g g r o w t hopportunities for individual employees is critical to thedevelopment of our people.

Ideally, We Want to Cultivate a Cycle of
Self-Growth for Employees― Since CyberAgent’s foundation, there have been a numberof original growth measures and systems.
We value being self-directed to "think, decide, and do yourwork." The same goes for training and development - we canthink and try quickly as long as it is part of our principle torecruit, develop, nurture, and place people.
A notable example of this philosophy is Ashita Kaigi (Meeting
for Tomorrow), which brings together management andemployees from different areas and levels of experience todiscuss issues and future prospects for the company. The main
purpose of this meeting is to generate new business andregularly identify issues within the company. But it is also avaluable opportunity for employees to stimulate management
thinking. It has helped to launch countless initiatives.

061

Ashita Kaigi is an annual company-wide event, but it is also held
on a smaller scale in each subsidiary, division, department,
profession, and age group, contributing to the growth of many
employees.
Examples of Ashita Kaigi initiatives include Career Agent, ourinternal headhunting team, and GEPPO, a survey system tomonitor employee conditions and career aspirations. Bycollecting and analyzing information on employees, we canidentify their talents and help them to develop and achieve
appropriate placement.
Career Agent is also responsible for the operation of Career
Challenge, an internal transfer listing system for employeesinterested in changing divisions, which has successfullytransferred roughly 70% of applicants.
Another example is YMCA (Young Man CyberAgent), a projectthat supports and encourages young employees in their 20s.
This project brings together willing younger members to discuss
issues such as how to further develop high-performing
20-somethings, what factors are missing in younger employees
like themselves, and what activities can benefit the company inthe future. Younger members think for themselves, make theirown decisions, and carry out activities, recruiting those aroundthem as they see fit. These activities are then passed on to thenext generation. The whole process is an opportunity for growth.
"Freedom and responsibility" is an important philosophy at
CyberAgent. These activities to think freely and realize one's
visions with one's own hands also help to bring out the
motivation and commitment of the members. Simply put, ourYuko Ishida
Senior Managing Executive Officer
General Manager,
Recruitment Strategy Division

Apr. 2004 Joined CyberAgent, Inc.
Feb. 2013 President of Pashaoku, Inc.
Sep. 2014 President of Woman&Crowd, Inc.
Oct. 2016 Executive Officer
Oct. 2020 Senior Managing Executive Officer(current position)

062

ideal is for people to achieve a natural cycle of self-learning, overcoming challenges on their own andusing any failures to move on to the next opportunity as they see fit. This ensures the growth of both
our people and our business.
― How is top management involved in employee development?
At CyberAgent, executives and employees have a close relationship where they can freely consult with

Our unique measures and projects to elicit motivation and commitment
Explanatory note

［Typical Initiatives］

CultureHuman Resource Development

2000

Creativity
Technological Capability

each other, and there is a high level of executive participation in various internal events, such as
recruitment activities and social gatherings. We pride ourselves on our high level of internal

Created Visioncommunication, both in terms of frequency and quality. When executives are committed to employee
development, it boosts the enthusiasm and intent of those on the receiving side, our employees.
involves extensive discussion of member-related agendas. This is where we share information about
members' current circumstances and decide their placement based on their profile pictures. As a company

2005

Internal transfer
recruitment
systemCAJJ Program
Transformed to CAKK
program in 2022.

――What kind of personality will be needed to take the company forward?

Strengthen
recruitment andtraining of engineers

Our vision for the future is reflected in our Vision and Purpose.
We have chosen to use abstract language so that employees are free to interpret our statements andReleased
Missionstatement

visualize the company's future in relation to themselves.
It's okay for everyone to be different. We don't believe everyone's goal should be to become amanager or leader, and we don't intend to create a highly homogeneous organization.
of employees who are surprised by their own abilities." We are trying to create an environment that helps

Monthlymeeting

Career
Challenge

with over 6,000 employees, I don't think many companies of a similar size go into this level of detail.

As Managing Executive Officer and CHO Tetsuhito Soyama always says, "We want to increase the number

CyberAgentAward

To createthe 21st century sleading company

In addition, more than half of our weekly board meeting is devoted to human talent strategies, which

87.5%* of Employees Responded That
Their Work is "Meaningful and Rewarding"*Years indicate the year inwhich each project started.

The slogan"Technology-Led
CyberAgent" is made.

GEPPO
Pulse survey toBusiness
Idea Contest*Discontinued
in 2015.

Meeting
for Tomorrow
The management meeting
to decide on new businessand solutions tochallenges

CA8
Director rotation
system2010

Trainersystem*Discontinued
in 2018.

Career Agent
Support for employeetransfers and talentdevelopment

ProjegtReporting

check employee s
condition

List organizational
and individual goals
on a poster

063

macalonpackage

YMCA
our people be motivated, be themselves, be self-directed, and perform to the best of their potential.

2015

System for supporting
young people at
the workplace

ENERGY
System for supporting
engineers s careersand skill training― Have you noticed any differences since the Purpose was first introduced?

Career
Programshift is regardless of the length of service. Whether they are in their first year or their tenth, they can beclearer about their own intentions and what they want to achieve. I believe that the introduction of the
future that the company is aiming for and overlap it with their own raison d'être.

high compared to the average in Japan.
I imagine that 'why do you think so' is different for everyone. However, I believe that creating anenvironment where people can feel a clear sense of growth is one aspect that contributes greatly.
At CyberAgent, we select and promote people for new opportunities on a regular basis. It's not about
handing out titles. It's about valuing people and giving them certain types of work with highexpectations - even for tasks that may seem small. The cycle of decision-making, success or failure,

CAramelNext-genManagement
OfficePurpose has increased the number of employees motivated to work because they resonate with the― 87.5% of employees responded that their work is "meaningful and rewarding,"*1, which is quite

YJC

JB

The clarity of the vision that each of the employees has seems to have improved considerably. This

Developer
Experts
Program

2020
Created Purpose

To break throughstagnation with new power
and the internet

perspective shifts more toward the bigger picture, leading to encouraging a team mindset aroundthem. Ultimately, these things make for a meaningful and rewarding workplace.
In recent years, human capital has become a more widely recognized concept, and at CyberAgent, we
also believe that people are our best source of competitiveness and business growth.
We will continue to broaden the horizons of each and every one of our employees and aim for evengreater growth. I believe that the new businesses and values created through such ventures will help
create a vibrant society.
* Stress test conducted in FY2023

Recruitment projectby employees who
are not in the HR
department

Financial
Strategy Meetings

Executive
Education
for leadership
succession

Reskilling
CenterPresentations by businessheads on their strategies for
managerial development
and business growth

CTO
Management
Officeand reflection and learning will build confidence in our people.
When employees see how their own growth contributes to the organization as a whole, their

System for supporting
women atthe workplace

CAKK Program
Meeting structure forcontinuous improvementof the group s
corporate value

Tech
DE&I
Project

Principal
recognition
system forengineers andscientists

064

New employees
who feel they are taking
on challenges*
Senior Managing Executive Office Yuta Iizuka, who provides opportunities for dialog
with over 70 new and prospective employees, explains that "people are the mostimportant thing for a company's growth, which is why I believe it is important for me
to fulfill my role by meeting directly with the people I will be working with to help them
* New employee respondents:
Employees in the April 2023 CyberAgent Business Course

understand the company and its operations, and to pique their interest in thecompany. Another reason I'm eager to meet with young employees is to identify theirtalents as soon as possible.""Regardless of how long they have been with the company, employees at CyberAgentare given a great deal of autonomy. In fact, I myself launched Sirok, Inc. as a
subsidiary when I was still a prospective employee. I want them to know that if they

Yuta Iizuka
Senior Managing Executive Officer
Nov. 2011 President of SIROK, Inc. (current position)
Apr. 2012 Joined CyberAgent, Inc.
Oct. 2014 Became CyberAgent's youngest Executive Officer (at the time)
Oct. 2020 Senior Managing Executive Officer (current position)find the right approach and work hard, such as being the first to volunteer for projects
and setting high goals, they can achieve unimaginable things. I also believe that acompany's culture can flourish when new hires are given the opportunity to makedecisions and contribute to an atmosphere conducive to achieving their best."

065

AI analysis of traffic volume torealize smart cities

AI x Solving
Society's
Challenges
CyberAgent is utilizing AI technology to solvea variety of challenges faced by society.

Automated telephone support service
Enhancing telephone support, which is in high demand by
local governments, takes a lot of time and money
because it normally requires securing personnel andtraining them. By automating telephone support throughthe use of AI, we make it possible to set up highly
convenient and satisfying public services while
minimizing costs, such as the cost of operating a
24/7/365 call center.

Assessing urban traffic volume is essential for
improving the efficiency of traffic systems interms of road traffic capacity and signal timing, as
well as citizen safety and quality of life. By
providing "Census AI," our AI-based traffic volume
analysis service, we are contributing to thedevelopment of systems capable of real-timedata analysis and the realization of smart cities.

Example of Services

Example Features
・Measurement of pedestrian and vehicular traffic・Measurement of flooding and snowfall levels
・Prediction of road surface icing
・Forecasting the prevalence of next-generation
vehicles, etc.

Promotion of evidence-based
policymaking (EBPM)
EBPM, or Evidence Based Policy Making, isbecoming increasingly important in improving thequality of policies. EBPM can be initiated quickly
by eliminating the time and effort required fordata collection and analysis by utilizing our EBPM
database, which organizes summaries of existing
evidence.

Example Features
・Browse the results of previous policy validations
・Submit new articles and revise existing ones・Qualitative assessment of evidence by experts

AI・ Appointments and inquiries regarding COVID-19 vaccinations
・Appointments for consultations on tax reporting andresidents' tax returns
・Information on the issuance of My Number Cards (national
identification number)・Inquiries during a large-scale disaster・Information on garbage procedures, etc.

Research on the admissions
process of daycare centers
As the percentage of women in the workforce increases,
the number of children awaiting admission to daycare
and the efficiency of the selection process have become
major issues. By researching the admissions process fordaycare centers, we aim to reduce the number ofchildren awaiting admission through a combination of
improvements in its rules, demonstration experiments toprovide easy-to-understand information, and thedevelopment of a selection system for daycare center
admissions.

Examples of Initiatives
・Improvement of rules for admission to daycare centers
・Demonstration experiments on providing daycare
information
・Demonstration experiments on the daycare admission
system066

Contributing toSociety ThroughOur Businesses

Strengthening Information Infrastructures
Launched in April 2016, ABEMA allows users to browse thelatest news and information for free on their smartphone.
Taking advantage of the smart devices that people carry withthem at all times, we have also added an emergency
channel that provides real-time information to affected
people 24 hours a day in the event of a disaster or otheremergency, such as an earthquake early warning. We willcontinue to pursue business activities that recognize theimportance of ABEMA's role in society as a new information
infrastructure in the age of the internet.

Tech Talent Development
To develop the talent to lead the 21st century through IT, in May
2013, we established "CA Tech Kids" in a joint venture with Life isTech, Inc. to offer programming education projects for elementary
school students. We also host Japan's largest programmingcompetition and provide career development opportunities for IT
professionals. Our efforts go beyond just helping kids acquire IT
programming knowledge and skills, as we also strive to foster thedevelopment of "talent capable of using technology as a tool torealize their own ideas and actively engage in society."

CyberAgent believes that continuing to innovate andgrow will help break through Japan's sense ofstagnation and revitalize society.
By creating long-term social and economic value
through the businesses it operates, CyberAgent also
aims to contribute to the development of a moresustainable and vibrant society.

Support for Creating Social Value
One of our consolidated subsidiaries, Makuake Inc., isdeveloping "Makuake," a crowdfunding platform that
venture capital firms and small businesses can use formarketing purposes. Through Makuake, we hope tocontribute to the further vitalization of the Japanese
economy.

Driving Forward Digital Transformation (DX)As AI and other IT technologies continue to evolve, there is anurgent need for DX to help companies in all industries, including
retail, government, healthcare, and entertainment, maintain theircompetitive edge and achieve growth. We are working to develop
and deliver solutions to our clients' problems by applying ourunique knowledge and technological capabilities in the digitaldomain.

Please visit our corporate website for more information on our SDG initiatives.

SDG Initiatives

067

Sports Support
The CyberAgent Group supports the revitalization ofsociety through sports by sponsoring a variety of teams,
including the J-League club "FC Machida ZELVIA"; DDT
Pro-Wrestling; Pro Wrestling Noah; Shibuya ABEMAS,
which competes in the professional mahjong league "MLeague"; and CyberAgent Legit, which competes in theprofessional dance league "D. LEAGUE."

©FCMZ

068

Human Rights Policy

Respect for
Human Rights

CyberAgent respects the human rights of all people involved in its businessactivities, including directors, employees (including part-time and temporary
employees), and subcontractors, and strives to create an environment where
people can be their true selves and be treated as equals without
discrimination or harassment based on race, religion, gender, age, sexual
orientation, gender identity, gender expression, disability, or nationality.
In addition, based on the policy that emphasizes dialogue with employees
and respect for each individual, we are implementing various measures led bydedicated departments to promote healthy work styles, such as monitoringworking hours and visualizing workload to prevent long working hours,
assigning the right person to the right job, and providing mental health care.
We provide a safe and secure environment to maintain mental and physical

Guidelines

health, and support each employee to reach their full potential.
Furthermore, we comply with laws and labor standards related to wages,
including minimum wages applicable in the countries and regions in which we
operate, and provide appropriate wage levels. We have been maintaining
good labor-management relations by accounting for labor rights andconferring with an appointed employee representative selected throughproper methods.
CyberAgent has established a system whereby directors and employees canconsult and report to members of the Risk Committee when they becomeaware of any conduct that may violate compliance or that is perceived asharassment. We also conduct ethics training on a regular basis covering
moral principles to ensure compliance in our entire business activities.

What we do at CyberAgent

Ethical Business Guideline

Research Ethics Guideline

Information Security
As a provider that handles a lot of personal information, CyberAgent, Inc.
and CyberAgent Group have various internal regulations, including a
Privacy Policy, Information Security Policy, and Personal Information
Protection Regulations, in place and make efforts to handle and protect
such information properly. If, for example, changes are made to thepolicies, we will announce them promptly.

[Tech DE&I Project]
We actively promote DE&I in our development organisation to bridge thegender gap in the IT industry. Our aim is to foster an environment of mutual
understanding and acceptance of differences among the people we work with,and to create an organisation that can deliver innovation one after another.

Youth Protection and Assuring Safety and Security for All Users
CyberAgent is committed to sound management of all services we operate
in order to protect underage users and to provide a safe and secureenvironment for all people who use our services.
Safe and Secure Media Service Operation
Safe and Secure Gaming Operations

Privacy Policy

Information Security Policy

Information Security Measures
Commitments to Protect Personal Information

Safe and Secure Dating App Service

069

Total number of directors :Directors who are not Audit andSupervisory Committee members :(Outside Directors)

Governance
Overview85 (2)Directors who are Audit
and Supervisory Committee members :(Outside Directors)

Internal

3(2)External

CyberAgent is committed to conducting corporate
activities in accordance with laws, regulations, social
norms, ethics, and other rules as working to enhance
the supervisory functions, transparency, and fairnessof the Board of Directors.
Outside director
ratio

Female director
ratio

Board of Directors
participation ratio

50% 13% 100%

Average age

Age of theyoungest officer

*

*

32

Introduction of
measures toprevent takeover bids

None

* Figures include directors and executive officers. (As of the end of September, 2023)

070

Changes in Our
Management
Structure
CyberAgent has been reinventing its management
structure by utilizing a unique system that is tailored

2008

2018

2021

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

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

CA8

Bulking up

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

New executive officer structure

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

to the company's growth phases and businessstrategy. To further strengthen corporate governance,

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

in December 2020 CyberAgent transitioned to a new
executive officer structure with a clear separation
between supervision and execution, and to further
enhance supervisory functions, the structure ensuresthat half of the board members are from outside thecompany.

Outsidedirectorratio

0%Outsidedirector
ratio

20 %

Outsidedirector
ratio

50 %

071

Directors

Susumu Fujita

Yusuke Hidaka

Go Nakayama

Representative Director, CEO

Director

Director

Toko Shiotsuki

Director (Full-time Audit andSupervisory Committee member)

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

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

Number of shares held: 1,618,707
Number of board meetings attended:
13/13(100%)

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

Koichi Nakamura

Kozo Takaoka

Masao Horiuchi

Tomomi Nakamura

Supervisory Committee member)Supervisory Committee member)

FamaleThe Company chooses candidates for the Board of
Directors by considering a proper balance of knowledge,
experience, and ability concerning the Company and its
various businesses, while also ensuring that the number ofcandidates is sufficient and appropriate to ensure
constructive discussion at Board of Directors meetings. As
of December 2023, the Company had a total of eight
directors, including three who are members of the Audit
and Supervisory Committee. There are four outside
directors who meet the requirements for outside directors
under the Japan Companies Act and the independence
standards set by the Tokyo Stock Exchange.

Outside Director
Independent

Number of shares held: 28,000
Number of board meetings attended:
13/13(100%)

Outside Director
Independent

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

Outside Director (Audit andIndependent

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

Outside Director (Audit andIndependent

Number of shares held: 0
Number of board meetings attended:
11/11(100%)* For speciﬁc reasons for director selections, see the Corporate Governance Report.

072Media Business

Susumu Fujita

Norishige Nagase

CEO, President

Executive officer

Yosuke Sato

Executive officer

Tatsuhiko Taniguchi

Managing Executive Officer

Executive officer

Chihiro Sano
Executive officer

Rina Takai

Executive officer

Creative work

Executive Officers

Takahito Naito

Managing Executive Officer

Hiroyuki Ishii
Executive Officer

Tomohisa Nomura
Executive officer

Yuka Yokoyama
Executive officer
FemaleFemaleEiji Koike

Managing Executive Officer

Daiki Nakata
Executive officer

Advertising business

Takunori Fujii

Riku Yamada

Senior Managing Executive Officer, CTO
Technology

Yasuo Okamoto

Executive Vice President

Gaku Miyata

Takahiro Yamauchi

Senior Managing Executive Officer

Noriko Kawai

Executive officer

Executive officer
FemaleIncreased by 5 members from FY2023. Female executive
officers comprise 18%, or 5 members.

Company-wide functions

Go Nakayama

Senior Managing Executive Officer

Yusuke Hidaka

Executive Vice President

Yuko Ishida

Senior Managing Executive Officer
FemaleKoki Ukita

Tetsuhito Soyama

Masato SatoManaging Executive Officer

Managing Executive Officer, CHO

Yuta Iizuka

Senior Managing Executive Officer

Executive officer
Technology

Investment Development BusinessFemaleNew Business

Executive officer

Game Business

Hino Takeuchi

Hirofumi Kondo
Executive officer

Takehiro Takeda

Managing Executive Officer

073

Board of Directors

Board of Directors
and Audit
and Supervisory
Committee·There are a total of 8 directors (7 male and 1 female). Of these, 5 are directors who are not Audit and Supervisory Committee members (2 of the 5
are outside directors), and 3 are dtirectors who are Audit and Supervisory Committee members (2 of the 3 are outside directors).
·The Board meets regularly once a month and also holds unscheduled meetings whenever necessary·Meetings in 2023: 13

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

Audit and Supervisory Committee
・Directors who are members of the Audit Committee attend Board of Director meetings and other important meetings to audit and supervise thelegality and appropriateness of the directors' business execution.
・As necessary, the Audit and Supervisory Committee receives reports or explanations from company executives and employees, and implements
surveys etc. of major subsidiaries or workplaces.
・The committee meets regularly once a month and holds unscheduled meetings whenever necessary.
・13 meetings were held in 2023

Structure of the Audit and Supervisory Committee
Toko Shiotsuki

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

Director,full-time Audit and Supervisory Committee member

Masao Horiuchi

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

Outside Director, Audit and Supervisory Committee member
OutsideIndependent

Tomomi Nakamura

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

Outside Director, Audit and Supervisory Committee member
OutsideIndependent

074

Process policy of determining remuneration, etc. of
individual Board Directors

Director
Remuneration

At the Board of Directors meeting held on December 9, 2022, it resolved the following
policy for determining the content of individual remuneration, etc. of Directors(excluding Directors who are members of the Audit Committee). The Company
consulted the Remuneration Advisory Committee, which is composed mainly of
independent Outside Directors, regarding the details of the resolution, and obtained its
report for approval. The Board of Directors has also confirmed that the decision on thedetails of remuneration and other compensation for individual Directors for the fiscal
year under review are consistent with the determination policy approved by the Boardof Directors and that the report from the Remuneration Advisory Committee has been
respected, and the Board of Directors has determined that such decisions are in linewith the determination policy. The amount of remuneration for each individual Director
who is a member of the Audit and Supervisory Committee is determined throughdiscussions among the Audit and Supervisory Committee members.

Matters concerning the resolution of the Annual General
Meeting of Shareholders regarding remuneration of Directors
The annual aggregate remuneration of Board Directors of the Company wasapproved at ¥800 million (of which, up to 30 million yen per year allocated to Outside
Directors) by the resolution at the 20th Annual General Meeting of Shareholders held
on December 15, 2017. However, at the 24thAnnual General Meeting of Shareholders
held on December 10, 2021, the amount of remuneration for Outside Directors(excluding Directors who are members of the Audit and Supervisory Committee) was
revised from 30 million yen per year to 60 million yen per year, taking into
consideration the future increase in the number of Outside Directors, the increasedrole required of Outside Directors, and various circumstances such as the economic
situation. The number of Directors as of the close of this Annual General Meeting of
Shareholders is eight (8), consisting of five (5) Directors excluding Directors serving on
the Audit and Supervisory Committee, (including two (2) Outside Director) and three(3) Directors serving on the Audit Committee (including two (2) Outside Directors). At
the 25thAnnual General Meeting of Shareholders held on December 9, 2022, a
resolution was approved to issue up to 1,352 stock acquisition rights as stock
options to Directors (excluding Outside Directors and Directors who are members of
the Audit and Supervisory Committee). The number of Directors as of the close of thisAnnual General Meeting of Shareholders is three (3) directors (excluding Outside
Directors and Directors who are members of the Audit and Supervisory Committee).

Total amount of remuneration of Directors

Classification

Director who is NOT the
Audit and Supervisory
Committee members(Outside)

Director who IS the
Audit and Supervisory
Committee members(Outside)

Total(Outside)

Number ofrecipients

Amount of
remuneration

Subtotals for each typeof remuneration (¥ million)
Monetary
remuneration

Stock options

5（2）（36 million yen）（35 million yen）（1 million yen）

3
（2）

（8 million yen） （8 million yen）

293 million yen 200 million yen 93 million yen

19 million yen

19 million yen-

8
312 million yen 219 million yen 93 million yen（4） （44 million yen）（43 million yen）（1 million yen）

Note: Of the monetary compensation, performance-linked remuneration is 0 yen.

075

Basic policy for information disclosureManagement
Transparency

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 andTokyo 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 to review the agenda.
Convocation notices are sent out at least one week prior to the statutory date (at least three weeks before the General Meeting of
Shareholders). In addition, before notices are sent out, their Japanese and English versions are posted on CyberAgent’s corporatewebsite (released on November 16, 2023.), on the Tokyo stock exchange website, and also on the electronic voting platform forrights holders. Exercise of voting rights through the internet has been available since 2007.
To maximize shareholder attendance by minimizing conflicts with other company shareholder meetings, CyberAgent has scheduled
the 26th Annual Shareholders Meeting for December 8, 2023, with a company information session to be held on the same day.
To maximize shareholder attendance by minimizing conflicts with other company shareholder meetings, CyberAgent has scheduled
the 26th Annual Shareholders Meeting for December 8, 2023, with a company information session to be held on the same day.

076

■ Emissions Intensity per Net Sales■ CO2 emissions by scope（t-CO2）(Emissions of Scope 1 + 2/ Consolidated Net Sales)

Data item

FY2021

FY2022

Scope 1

321

371

FY2023

Scope 2 (location-based)*2

10,782

12,002

12,210 ★

Total Scope 1 + Scope 2 emissions(location-based)

11,103

12,37313,000 ★

Scope 3

14,15821,63430,916790★ *1

Data item

FY2021

FY2022

FY2023CO2 emissions intensity per unit of sales(t-CO2/million yen) - location-based

0.01670.01740.0181

Consolidated sales (in millions of yen)

666,460

710,575

720,207

Environment
Recognizing climate change as one of the mostcritical business challenges, CyberAgent strives tomonitor the amount of greenhouse gas emissions,improve the efficiency of business activities, build andoperate necessary systems, and disclose information
appropriately. From FY2022, an independent■ Scope 3: CO2 emissions by category（t-CO2）
FY2021

FY2022

FY2023Purchased goods and services

4,895

10,79814,708 ★

Public cloud services

4,684

3,572

2,755 *33

Not included in Scope 1 or 2
Fuel and energy related activities

1,589

1,763

1,963 ★

6

Business trips

2,298

4,172

9,456★ *4

7Commuting

692

1,180

1,548 ★

13

Downstream leased assets

-

149

486★

Category

1

assurance report has been provided by KPMG
AZUSA Sustainability Ltd. for CO2 emissions toclarify the calculation process and improve thereliability of the disclosed information.

Data item*1: The emissions have increased due to expanding the coverage of vehicles used for business activities
and the inclusion of minor gas usage in the calculation since FY2023.
*2: The market-based scope 2 emissions of FY2023 were 12,384 (t-CO2) ★.
*3: The emissions have decreased due to service providers' efforts towards decarbonization.
*4: The emissions have increased due to the acceleration of domestic and international businesstravel resulted from the economic recovery after the COVID-19 pandemic.

Figures denoted by the "★" have been externally assured by KPMG AZSA Sustainability Co., Ltd.
Information on disclosure based on TCFD recommendations, the data boundary for CO2 emissions,the calculation method and third party verification reports are available on the Environment sectionof the corporate website.

Environment

077

Creating
Opportunities toSolve
Environmental
IssuesCyberagent Begins Using IoT Technology to Provide Energy-Saving Solutions for Office Buildings
Due to the increased focus on energy conservation due to therecent rise in electricity costs and the tight supply and high demandfor electricity, in many office buildings, air conditioning and lighting
were often centrally managed for the entire building or all floors.
This caused problems in that the brightness of the lighting and thetemperature of the air conditioner could not be adjusted flexibly, andthe comfort of the users was not taken into account.
With this in mind, our AI business unit's Retail GX Center has
begun offering a unique energy-saving solution for all companies
with office buildings, regardless of industry, that enables flexible
management of the office environment while taking into accountthe environment of employees. By leveraging our knowledge
from actively researching and developing AI and robotics
technology for many years, we can provide a system capable ofrealizing energy savings while reducing installation costs byflexibly and efficiently controlling lighting and air conditioning
based on area occupancy trends.

In a demonstration experiment conducted in April 2023 at our officebuilding in preparation for the provision of this service, we were able
to reduce monthly electricity bills and CO₂ emissions by 40%
compared to previous practices by combining the system already inplace as an intelligent building with the IoT method of this service.
We estimate that this will yield a cost savings of around 100 million
yen or more per year. Going forward, we will continue to utilize theknowledge we have accumulated in the development and operationof IoT and sensor technologies, as well as the development of usercentric services, to promote GX* in all industries, including retail,with the aim of achieving both improved management efficiency anddecarbonization.
* GX (Green Transformation): Initiatives aimed at achieving a decarbonizing society.

C ompany O ver v iew

079

Company Name

CyberAgent, Inc.

Office Locations

Tok yo, Osaka, Nagoya, Fukuoka, Sapporo,
Sendai, Kanazawa, Kyoto, Saga, Okayama,
Okinawa United States (Guam), China (Beiing),

Head Office

Abema Towers 40-1 Udagawacho Shibuya-ku, Tok yo 150-0042

Taiwan (Taipei), Korea (Seoul),

Representative

Susumu Fujita

Vietnam (Ho Chi Minh City), Singapore

Foundation

March 18, 1998

*Main operating locations including consolidated subsidiaries

Capital7,369 million yen (A s of the end of September, 2023)

Employment Headcount7,374 (A s of the end of September, 2023)

AGM

DecemberBusiness Por tfolio

Media Business
Internet Adver tising BusinessGame Business
Investment Development Business080

Stock Information *1

Top Holders *3

Listed Market

TSE Prime market

Code

4751

Number of SharesName

506,191,200 shares

Outstanding

108,871

Number of Shareholder

Type of Shareholders *2

4.3 %

1.1 %

0.0001 %25.5 %

34.9%
Type of
Shareholders*2

Foreign Institutions andIndividuals

Number of Shares

% O/S

1

Susumu Fujita

89,121,600

17.6 %

2

The Master Trust Bank of Japan, Ltd. (trust account)

81,338,900

16.1 %

3

Custody Bank of Japan, Ltd.(Trust account)

38,630,800

7.6 %

4

THE BANK OF NE W YORK MELLON 140051

14,776,500

2.9 %

5

SSBTC CLIENT OMNIBUS ACCOUNT

10,586,058

2.1 %

6

STATE STREE T BANK WEST CLIENT – TRE AT Y 505234

7,384,116

1.5 %

7

JPMorgan Securities Japan Co., Ltd.

6,472,805

1.3 %

8

JP MORGAN CHA SE BANK 380072

5,742,200

1.1 %

9

JP MORGAN CHA SE BANK 385632

5,527,293

1.1 %

10

DAIWA CM SINGAPORE LTD – NOMINEE ROBERT LUKE COLLICK

4,430,000

0.9 %Individual ,other
Financial Institutions
Secur ities Company
Treasur y Stock s

34.2 %

Domestic Cor porations

Major Shareholders *4

Shareholders' meeting

Institution

Submit ting Date

Baillie Gifford & Co

12.11 %

August 15, 2022

Nomura A sset Management Co.,Ltd.

6.38 %

November 6, 2023

139

Sumitomo Mitsui Trust A sset Management Co., Ltd.

6.21 %

Januar y 20, 2022

139

BlackRock Japan Co., Ltd.

6.06 %March 20, 2023

F Y2020

F Y2021

F Y2022

12,94639,87352,041

Shareholders attendance at AGM

60

122

Viewers of live streaming of AGM

116

84

Number of Shareholder% O/S*1 ,2,3 As of September 30, 2023

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

081

Investor Relations
Activities

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

F Y2023 IR Activities Summar y

ESG Ratings

Number of institutional investors we had meetings

1251

Number of our participation at conferences organized by securities companies

8

Number of ESG/Department theme-specific meetings we held

8

Number of posts on the official LINE account60

We are working to improve our ESG rating by disclosing ESG information, which has become increasingly
important in recent years, on our corporate website.
THE USE BY CyberAgent, Inc. OF ANY MSCI ESG RESEARCH LLC
OR ITS AFFILIATES ( MSCI ) DATA , AND THE USE OF MSCILOGOS, TR ADEMARK S, SERVICE MARK S OR INDE X NAMESHEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT,RECOMMENDATION, OR PROMOTION OF CyberAgent, Inc. BY
MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCIOR ITS INFORMATION PROVIDERS, AND ARE PROVIDED AS-IS
AND WITHOUT WARR ANT Y. MSCI NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI.

Percentage of Institutional Investors by Region

7%

Sustainalytic s

13%

47%
32%

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

Copyr ight © 2023 Mor ningstar Sustainalytic s. All r ight s
reser ved. This sec tion contains information developed by
Sustainalytics (www.sustainalytics.com). Such information anddata are proprietar y of Sustainalytics and/or its third par ty
suppliers and are provided for informational purposes only. They
do not constitute an endorsement of any product or project, nor
an investment advice and are not warranted to be complete,timely, accurate or suitable for a particular purpose. Their use issubject to conditions available at https://www.sustainalytics.
com/legal-disclaimers.

082

Inclusions

JPX Prime 150 Index

Nikkei Stock
Average

JPX-Nikkei Index 400

Nikkei Stock Index 300

ESG

Nikkei 225
Climate Change
1.5 ℃ Target Index

Nikkei 500 Stock
Average

ESG

Japan New
Economy Index

F TSE All-World Index

F TSE JAPANS&P/JPX Carbon
Efficient Index* As of September 30, 2023

083

Investor Relations
WebsiteIR Channel
The IR Channel was created to provide
video content for shareholders andinvestors and includes 28* videos that
explain the competitive edges of ourbusinesses, including core competencies,
in an easy-to-understand manner.

Go to IR Channel

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

084

Find Us on Social MediaLINECEO Susumu Fujita on X

@cyberagent_ir

twitter.com/susumu_fujita

FacebookX

www.facebook.com/CyberAgent.Inc

twitter.com/CyberAgent_PR

Youtubeyoutube.com/c/cyberagentof ficial

085Disclosure Policy

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

For ward-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 atanalyst 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 anduncertainties. There can be no assurance that forward-looking statements will prove accurate or achieved, as
actual results may differ materially from those anticipated in such statements.

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

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

086

For ward-looking Statement
The future information, such as the earnings forecast, written in this document is based upon the currently available
information, which involves risks and uncertainties. There can be no assurance that forward-looking statements will proveaccurate or achieved, as actual results may differ materially from those anticipated in such statements.

Contact
IR&SR Division, CyberAgent, Inc

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