CyberAgentWay
CyberAgent, Inc.
TSE4751

Integrated Report
December, 2018

VisionTo create the 21st century’s leading company

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

President Message
To all stakeholders
Thank you for your continued support of CyberAgent.
Since our founding in 1998, we at CyberAgent have followed our vision “tocreate the 21st century's leading company” by continuing to expand businessin the rapidly evolving internet industry.
By succeeding in a variety of unique efforts to develop 'business' alongside'talent', we have again achieved record high consolidated sales in FY 2018,
our 21st year in business.
With the increasing importance of sustainability, we have also been
simultaneously focusing efforts on a variety of CSR efforts through initiatives
that include job creation, providing services with social value, promoting
development of future technicians and engineers that will ensure our global
competitiveness, and supporting sports activities. We are dedicated tocontinue expanding business, creating social value, and striving to achieve thekind of sustainable management that will lead us to a new stage of growth.

President Message

03

Contents

SpecialFeatureOur Framework for Realizing Sustainable Growth05

For Business06

For Human Resources

1001

Growth Strategy and Competitive Advantages

14

02

CyberAgent by the Numbers

31

03

ESG

40

04

Corporate Governance

44

CSR (Corporate Social Responsibility)

59

Our commitment to environment

68

Company Overview

70

Contents

04

Special
FeatureCyberAgent is dedicated to continue expanding
its business by emphasizing sustainable
management, creating new business, developing
human resources, and implementing strategies

Our Framework forRealizing Sustainable Growththat contribute to technological development.

Our Framework for Realizing Sustainable Growth05

Our Framework for Realizing Sustainable Growth

For Business

CyberAgent has launched numerous new businesses
attuned to changes in the market environment, and has
remained continuously engaged in self-driven growth
without relying on mergers and acquisitions. Our focus is
not limited to simply growing new businesses, we have alsoestablished clear rules on when to withdraw them. In doing
so, we aim to create an environment in which people areunafraid to take on meaningful challenges.

Our Framework for Realizing Sustainable Growth

For Business

06

A Framework for
Generating New Business
Ashita Kaigi ( Meeting for Tomorrow )"Ashita Kaigi" is a meeting (=kaigi) led by the management
team, in which new business initiatives and solutions that
could improve CyberAgent's future (=ashita) are proposed anddecided upon.
Twice a year, groups are formed with business managers
selected by each director, persons with certain specializations,etc., to compete through proposal presentations which arethen ranked according to score.
S in ce 20 16 to d at e, As hit a Kaigi has r es ult ed i n t h eestablishment of 27 new subsidiaries.
Additionally, companies created by Ashita Kaigi havegenerated sales of 200 billion yen and an operating profit of 30
billion yen (as of September, 2018), demonstrating acontribution it makes to expanding the business.

Special Feature

Ashita Kaigi (Meeting for Tomorrow)

Our Framework for Realizing Sustainable Growth

For Business07

A Framework for
Generating New BusinessStartup JJJStartup JJJ is a training program whose name is derived fromthe Japanese words for new business ("Jigyo"), personnel("Jinzai"), and market value ("Jikasougaku"). Generally
targeting start-up businesses that have not achieved
profitability within two years of being launched, market value isbased on the idea that we want them to become number one
in their market, or to become a project with meaningful impact
to CyberAgent.
In Startup JJJ, businesses are ranked by market value andefforts are directed towards achieving growth. Under clearly
established criteria for withdrawal, a business is discontinued
if it exhibits no growth for six consecutive quarters or is unable
to demonstrate competitive advantage. In October 2018, we
also established a Group Management Planning Office tosupport business expansion via business tie-ups and stimulate
swift and consistent business growth.

Startup JJJ Awards Ceremony

Evaluation criteria
to increase the business value
Rank start-up businesses by the estimated market value

Start-up Challenge (New Business Plan Contest)
Start-up Challenge is a new business plan contest for
employees and potential recruits. Presentations are made to
the management team, and if decided upon, the businessproposal is developed into an actual business. This is one of
the initiatives we use to create new businesses that epitomize
the uniqueness of CyberAgent.

Listed to “CAJJ” when the estimated market
value exceeds 5 billion yen
Prelisting¥3 billion - ¥5 billion
Series B¥1 billion - ¥3 billion

Series A¥500 million - ¥1 billion

Ealy¥100 million - ¥500 million

Seed

Not calculable - ¥100 million

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

Special Feature

Support by Group Management Planning Office

Our Framework for Realizing Sustainable Growth

For Business08

Business Management System
and Withdrawal Criteria
CAJJ programThis training program derives its name from CyberAgent plus
Japanese words for business ("Jigyo") and personnel("Jinzai").
Businesses are ranked by level of operating income andefforts are directed towards achieving growth. Under clearly
established criteria for withdrawal, if the business posts arevenue and earnings decline for two consecutive quarters,
the business is either discontinued or the general manager isreplaced. Meetings are also held once a month with all
subsidiaries and businesses associated with the CAJJ
program to promote competition and collaboration, such as byboosting intra-group synergies and horizontally deploying risk
management.

Ranking criteria

J1

Quarterly operating
profit of 1 billion
plus (yen)J2

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

Withdrawal criteria: Withdraw if income and profit decrease fortwo consecutive quarters

Special Feature

CAJJ Program Conference

Our Framework for Realizing Sustainable Growth

For Business09

Our Framework for Realizing Sustainable Growth

For Human Resources

Since CyberAgent's founding, we have recognized ourpeople as valuable assets, thereby placing the highest
value on hiring, training, motivating, and assigning people
where they can best maximize their abilities.
Doing business on the internet does not require major
capital investment. Here, it is the talented people thatprovide a company's competitive edge, and we feel thatw h e n e a c h s t a ff m e m b e r i s m o t i v a t e d t o t a k e o nchallenges, this becomes a great source of both businessgrowth and improved profitability.

Speech of the winners at the group conference held once every six months

Our Framework for Realizing Sustainable Growth

For Human Resources10

Human Resource
Development forManagement Positions
We have introduced a variety of initiatives for our
younger members in order to promote management
position training as early as possible. Through'handpicked personnel' appointed to serve as thesubsidiary's president as well as the YMCA (anorganization for engaging younger staff in their 20s),
which is useful in developing candidates for the next
generation of managers, we have committed efforts toincrease contact between capable personnel andmanagement to forge the next generation of ourmanagement team.

YMCA
YMCA is an organization that supports andencourages young persons in their 20s. By
implementing young-staff versions of Ashita Kaigi andGeneral Meetings, CyberAgent is dedicated topromoting 20-something staff members'
communication beyond departmental boundaries andencouraging them to make proposals to management"Ashita Kaigi (Meeting for Tomorrow)" at YMCA

New-graduate presidents who is succeeding to expand their businesses* "Ashita Kaigi": See page 7
President

New-graduate Presidents
We put employees who are at an early stage in chargeof subsidiaries as “New-graduate Presidents.” A totalof 50 new-graduate presidents were selected until
now. Supporting highly motivated young employees
and giving them opportunities to demonstrate theirability drives our sustainable growth.

SpecialSpecialFeature
Contents

Takahiro Yamauchi

Shigeaki Kuwada

Takehiro Goda

Tomohiro Ueno

Ryotaro Nakayama

Years ofservice at theappointment

4

8

2

4

8

Company

CyberZ, Inc.

Sumzap, Inc.

MatchingAgent, Inc.

CA Tech Kids, Inc.

Makuake, Inc.

Main
Business

Mobile (smartphone)marketing

Mobile game “Sengoku
Enbu –KIZNA-”

An online dating
app “Tapple” connecting
people by their interests.

Programming school forelementary school
students

Crowdfunding platform“Makuake”

Our Framework for Realizing Sustainable Growth

For Human Resources

11Technology
Improvement
CyberAgent has established dedicated organizations
for conducting research in areas such as data
analysis, data mining, and AI utilization. By providing
ideal research facilities, proactively the sharing
technical knowledge we have built up in several
business areas, and promoting cross-departmental
and cross-occupational exchange between engineers,
we are committed to further boosting technicalcapabilities and business growth.

Special Feature

Battle Conference U30

Akihabara Lab

Battle Conference U30 is a tech conference for brightyoung engineers under 30 years old who work at
various web companies. It features a Talk Battle andProgramming Contest for them to share technicalknowledge and improve their abilities. This annual
conference also functions as a communication hub forthe young engineers where they can meet and interact
with others outside their department or company.

Akihabara Lab is an R&D organization with engineers
who specialize in large-scale data processing, data
analysis, and machine learning. It was established forthe purpose of contributing to media services andcompany development by practically applying the dataobtained from CyberAgent's media services.

Battle Conference U30

Akihabara Lab

Our Framework for Realizing Sustainable Growth

For Human Resources

12

CA BASE CAMPAI LabAcademia-Industry Cooperation

CA BASE CAMP is a conference designed to strengthen
CyberAgent's technical capabilities as a team bypromoting the sharing and exchange of know-how
among engineers and creators across the company.

AI Lab was established with the goal of conducting R&D
on advertising delivery technology that utilizes artificial
intelligence (AI). The lab includes researchers who
specialize in machine learning, econometrics,
computer-vision, natural language processing, HAI/HRI
and more, and who are deeply engaged in defining andresolving the wide range of issues surrounding ads.

We are working with several universities and research
institutions to study the latest technologies including
artificial intelligence (AI). By applying research resultsfrom these efforts to various services, such as adtechnology and new advertising methods, we are
striving to develop high value-added products.

CA BASE CAMPAI Lab officeSpecial Feature

Engineers engaged in R&D through Academia-Industry Cooperation

Our Framework for Realizing Sustainable Growth

For Human Resources

13

01
Introducing results from our three leadingbusinesses, namely our Internet Advertisement,
Game and Media businesses, as well as our
mid-to-long term growth strategy. We also
feature some new businesses that haveexcellent potential for high future growth such

Growth Strategy andCompetitive Advantages

as esports and dating service.

Growth Strategy and Competitive Advantages

14

Growth Strategy andTrack Record
20 years after its founding, CyberAgent is stillachieving sustainable business expansion as a resultof identifying growth industries and making two major
upfront investments in the past. Now that watching
videos through smart devices has become a way oflife for the younger generation, CyberAgent is making
its third upfront investment in internet TV station"AbemaTV" as a pillar of its medium to long-term
strategy.

Operating profit image
Repeated cycle of upfront investment
and reward-reaping to promote growth

Media Business

Investment inVideo content
business
Investment in
Smartphonebusiness

Game Business

Investment in blogs
AD Business

Two Major Upfront Investments in the Past
Investment in Blog Business in 2004

The Shift to Smartphone Business in 2013

With CyberAgent's advertising business smoothly on
track, we turned our focus towards setting up a blog toimprove profitability. By 2009, it had become one of thelargest blogging services in Japan, achieving
profitability by 2010.

We shifted significant personnel and management
resources to smartphone business. By pursuing
Ameba, ads, and games for smartphones, by 2015,
80% of our consolidated sales had shifted tosmartphone business.

Ameba Business Operating Profit
7.1billion yen

Transitioned
Ameba tosmartphones

2.3 billion yen

2007

2008

2009

2010

Media

Advertisement

Captured top
smartphoneadsmarket share

Game

Hit
smartphone
games

2011

Growth Strategy and Competitive Advantages

Growth Strategy and Track Record

15

Business Activities andMarket Advantages

We develop business based on a three-pillar business portfolio centered oninternet industries.

Internet AD
Business

Game
Business

Cygames, Inc.

Media
Business

AbemaTV

Business Activities and Market Advantages

16

Business Activities and Market Advantage

Since its launch in 1998, CyberAgent has
been expanding its internet ad business,
and already boasts the top market share in
Japan.
Leveraging its strengths in maximizing
advertising effectiveness, CyberAgentdelivers comprehensive solutions that
include advertising business as well as
AdTech business. It has been receiving
high recognition from media companies.

Internet Advertisement Business

1

2

3

4

5

6

7

8

1

Criteo5LINE Corporation

Under LINE Biz-Solutions Partner Program, CyberAgent has certified as Gold ranked Sales Partner at LINE Biz Account.

2

Yahoo! Japan

Recieved Display Ad Award at 2018 Yahoo! JAPAN Agency Conference.

6

LINE Corporation

Under LINE Biz-Solutions Partner Program, CyberAgent has certified as Diamond ranked Sales Partner at LINE Ads Platform for two consecutive years.

3

Twitter Japan

Gold Award, Area Award (West Japan), Map Award at #TwitterAgencySummit.

7

LINE Corporation

Under LINE Biz-Solutions Partner Program, CyberAgent has awarded as Diamond ranked Official Account at LINE Account Connect

4

Facebook

8

LINE Corporation

Under LINE Biz-Solutions Partner Program, CyberAgent has certified as Gold ranked Sales Partner at LINE Account Connect for two consecutive years.

Under Criteo's Star Partner Certification Program, CyberAgent has received five-star ratings for six consecutive terms.

Under Instagram Partner Program, CyberAgent has certified as partner company in Ad Technology.

Business Activities and Market Advantages

Internet Advertisement Business17

Business Activities and Market Advantage

Internet Advertisement Business

Full Year Sales

Full Year OP & OPM

241.4 billion yen

Smartphone advertising leads
with a YonY increase of 16%.
208.1
175.4
142.8
113.8

48.2

21.34 billion yen

Operating margin maintains
high level, 14% increase YonY.
18.71

PC·Other

44.9

15.15

53.5

11.52
9.12

52.2
193.1

Smartphone

163.2

51.6
121.8

8.0%

8.1%

8.6%

FY 2014

FY 2015

FY 2016

9.0%

8.8%

FY 2017

FY 2018

90.6
62.1

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Business Activities and Market Advantages

Internet Advertisement Business18Competitive Advantages

Growth rate of Internet Advertisement BusinessOur growth rate is evenhigher than the
double-digit growth of theoverall internet
advertising market.

Internet AdvertisingMarket1

Maximize advertising benefits through programmatic advertising*

2

Dominance in the growing field of smartphone advertising

3

Scale advantages & First-mover advantage* Programmatic Advertising Accounts for about 80% of all internet advertising market

Future Strategy
FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017* Source: "2017 Advertising Expenses in Japan" published by Dentsu; and estimations based on CyberAgent sales

Mobile Advertising Market Share
Smartphone advertising
has become a competitive
strength, accounting forabout 80% of revenue in
our internet advertisementbusiness.

1

Further improve capabilities through human know-how and ad technologies,
including AI-based.

2

Boost creative power by expanding video advertising.

3

In addition to advertisers whose aim is sales promotion, also attract new
advertisers whose aim is branding.

Our Share

21％

2017

* Source: "Internet Advertising Market-Size Estimation Survey" published by Dentsu, CCI, and D2C; and estimations based on
CyberAgent net sales totals

Business Activities and Market Advantages

Internet Advertisement Business19

Business Activities and Market Advantage

In our game business which we launchedin 2009, we provide smartphone games
centered mainly on eight major titles, anddevelop and operate games in a wide
range of genres through 14 subsidiaries,
the largest of which is Cygames.

Game Business

Nintendo / Cygames

Publisher: Nintendo

BanG Dream! Project

Craft Egg Inc.

bushiroad All Rights Reserved.

Business Activities and Market Advantage

Game Business20

Business Activities and Market Advantage

Game Business

Full Year Sales

Full Year OP

Sales increased 4.5% YonYby the success of a new title
and operations of existing titles.

140.3

146.5 billion yen

Profitability slightly
declines, while itgenerates a certain
amount of profit.

30.45
26.5

122.6

17.87

87.0

50.7

FY 201425.3 billion yen

8.47

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Business Activities and Market Advantage

Game Business

21

Market Environment

Advantages

Japan has the world's third-largest game market following China and America. In 2017, theindustry became 19.2 billion dollars scale (about 2.1 trillion yen)Game market country rankings*2
Rank

Countr y

Revenue1

China

37.9 billion USD

2

United States

30.4 billion USD

3

Japan

19.2 billion USD

Multiple hit titles that provide business stability with little volatility.

2

Operational advantages such as events that promote the long-term popularityof games.

3

Group-wide deployment of operational know-how and development
technology.

Future Strategy*1 Conversion of 1 dollar = 114 yen*2 Game market country rankings: "2018 Global Games Market Report", Newzoo[Sales Ranking] 8 major titles by the success of "Dragalia Lost." *

7

1st
10 th

1

Continuously deliver hit smartphone game titles.

2

Enhance existing titles to extend the longevity of games.t

3

Focus on deploying other IP TV offerings, continuing the pattern from original
IP TV.

Dragon Quest
Monsters
Super Light 3

2

30 th

1

*

3

GRANBLUEFANTASY4

THE iDOLM@STER
CINDERELLA GIRLS
STARLIGHT STAGE 4*

100 th56BanG Dream!
Girls Band
Party! 4*

Shadowverse

PRINCESSCONNECT！
Re:Dive7* 3 Dragon Quest Monsters Super Light : © 2014-2018 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved.
© SUGIYAMA KOBO Developed by Cygames, Inc.

1
Mar.

2013

Sep.

Mar.

2014

*

8

Sengoku Enbu
-KIZNA-

Sep.

Mar.

2015

Sep.

Mar.

2016

Sep.

Mar.

2017

Sep.

Dragalia Lost 6

Mar.

2018

Sep.

*4 THE iDOLM@STER CINDERELLA GIRLS STARLIGHT STAGE : ©BANDAI NAMCO Entertainment Inc. It was jointly developed and isoperated by ©BANDAI NAMCO Entertainment Inc. and Cygames, Inc.

* 5 BanG Dream! Girls Band Party! : ©BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved.
* 6 Dragalia Lost : © Nintendo / Cygames Publisher: Nintendo* 7 Sales ranking is calculated from the App Store data provided by AppDB. Average monthly ranking is used for the graph. (For October, useaverage until October 1st)

Business Activities and Market Advantage

Game Business22

“Dragalia Lost” *1 got the No.1 sales ranking
in Taiwan, Hong Kong, and Macau.*3 (as of October 18, 2018)

New title “Dragalia Lost” *1
1
20

No.

“Dragalia Lost,” * the collaborative application of Cygames, Inc. andNintendo Co., Ltd. has released on September 27, 2018. (Available inJapan, Taiwan, Hong Kong, Macau, and North America)

TOP

JP
HK
TW

100

MO
N.A.

*1 ”Dragalia Lost” :© Nintendo / Cygames Publisher: Nintendo*2 Cygames, Inc. and Nintendo Co., Ltd. agreed to partner on a new gaming application for smart
devices on April 27, 2018. For the purpose of facilitating the partnership, Nintendo obtained
approximately 5 percent of Cygames’s issued stocks.

2018 Sept.27

Oct.1

Oct.6

Oct.12

Oct.18*3 Sales ranking is calculated from the App Store data provided by AppAnnie. (September 27 – October 18, 2018)

Business Activities and Market Advantage

Game Business23

Business Activities and Market Advantage

Media Business

Our internet TV channel, "AbemaTV" waslaunched in April 2016 in partnership withTV Asahi.
Including the world's largest blog service,"Ameba Blog," we deliver media services
that can be enjoyed by countless people.

AbemaTV

Business Activities and Market Advantage

Media Business24

Business Activities and Market Advantage

Media Business

Full Year Sales

Full Year OP

Achieved increased revenue throughour internet TV station "AbemaTV"and dating service "Tapple".

31.4 billion yen

2.34

Existing Business

2.33

3.09 billion yen(Blog services, "Tapple", etc)

0

25.6
23.3

2.65

Up-front investment( "AbemaTV", etc)

21.9

-2.28

-9.96
With continued upfront investment
in "AbemaTV" etc., we have incurredan operating losses of 20 billion yen
in FY2018 due to prior investment.

FY 2015

FY 2016

FY 2017

FY 2018

FY 2015

FY 2016-20.9-20.8 billion yen

FY 2017

FY 2018

Business Activities and Market Advantage

Media Business

25

What is "AbemaTV"?

Competitive Advantages of "AbemaTV""AbemaTV" delivers about 20 channels of free internet-broadcasting content in news, original
programs, and other genres. It also offers a unique user experience and usability tailored to all
smart devices.
"AbemaTV" Strengths
￥
FREE

24

20

24H
Operation

About 20
channels1

Deploys a business model in an area with no competitors.

2

Achieves group synergies between our internet advertising and gamebusinesses.

3

Has a strong financial structure based on existing business.

sec

CH

TargetYoung
Generation

0 sec playWatchsmoothlyDeviceby device
UI・UX

Variouscontents

TV likequality

Changes in WAU

7.29

Aim: a mass media
WAU* of 10 million users.

6.58

5.50

5.68

5.50
6.23
5.91

6.28

million users

Future Strategy for "AbemaTV"

1

As a first-mover, deploy our business model in a no-competitor area centeredon linear broadcasting + on-demand viewing.

2

Prioritize content enhancement in order to promote regular viewing.

3

Invest according to changes in the environment, such as the proliferation of
Smart TV and 5G.

5.10

4.75

4.18
2.67

3.52
2.69

1.18

Apr

2016

Jun

Sep

Dec

Mar

Jun

Sep

Dec

2017

Mar

Jun

Sep

2018

* WAU："Weekly Active Users “, the number of users who watch AbemaTV once a week

Business Activities and Market Advantage

Media Business

26

Dating Reality Show (Original) - “You can’ t fool me Mr. Wolf Summer 2018”

Drama (Original) - ” A Company is not a School”

CyberAgent is bolstering its lineup oforiginal shows on its "AbemaTV" internet
Variety Show (Original) - "Another New Window"

Daily Morning Show - Abema Morning

TV station.

Japanese Chess - AbemaTV Tournament

Sports - Grand Sumo TournamentAbemaTV

Business Activities and Market Advantage

Media Business27

Expanding Feaures

1 An "AbemaTV" button appears on the new remote control for Sony 4K BRAVIA®andPanasonic 4K TV “VIERA” televisions. “AbemaTV” users will be able to enjoy theservice more easily on a home television.

2 "AbemaTV" became compatible with a new billing plan of SoftBank Corp. "Ultra Giga
Monster +” which allows subscribers to use the service without consuming datacapacity,,"Sony Marketing Inc. “BRAVIA”
Compatible models: 14 models from four series of 4K BRAVIA® televisions include the A8F
Series of 4K OLED TVs and the X9000F Series of 4K LCD TVs.

Advertising Sales and Increase Content
AbemaTV, Inc. Announces Capital and Business Alliance with Dentsu and Hakuhodo DY
Media Partners on October 23, 2018. we will increase the sales of “AbemaTV” advertisement
and work together for content procurement.

Panasonic Corporation “VIERA”
Compatible models: the 4K TV “VIERA” to be released in January 2019 or laterAbemaTV

Business Activities and Market Advantage

Media Business28

Business Activities and Market Advantage

New BusinessEsports
Esports was further established as a competitive sport with the "18th Asian Games XVIII
Asiad esports," featuring a highly-energized atmosphere thanks to newly-launchedprograms from companies. We plan to continue contributing to expansion of the esports
market, one of our group's specialty areas, with the development of three esports related
businesses.

The largest gaming video
distribution platform inJapan with more than 2
million users per month

A tournament attended byover 35,000 visitors

Group Synergy

Delivers "Ultra Games," adedicated gaming channel
that broadcasts, gaming
videos, and more
Esports tournament

Business Activities and Market Advantage

New Business

29

Dating Service
CyberAgent has created new businesses by being among the first to identify and enter
growth markets. Dating services are now common in Japan and reportedly 1 in every 3
people use them to date and find marriage partners.*1
Of the three services we provide, "Tapple," which was launched in 2014, has become oneof the largest apps in Japan. We plan to continue working to expand market share in thedating market, which is expected to grow by over 30% per year.

4 million users*2 use our dating service toconnect through common interests.
Half of users are the younger genertation of 20 to 24 year olds.

Efforts to ensure a safe and trusted dating app
Through the app we operate, CyberAgent aims to provide a dating app that ensures safety and peace of mind
for all users by implementing the following measures:
1 Monitoring of suspicious behavior 24 hours a day, 365 days a year
2

Before messages can be exchanged, we verify the user is at least 18 years of age via government-issued
proof of ID*1 Based on survey by 'Love Tech Lab' of 500 people in their 20s to 40s nationwide with experience using dating services*2 As of October, 2018
*3 Please refer page 60 for “Safe and Secure Services in Media Content.”

Business Activities and Market Advantage

New Business30

02
In our 21st year in business, CyberAgent's
consolidated sales totaled 419.5 billion yen,achieving a new record high as the company
continues to expand its business. We also
compile quantitative information that includes

CyberAgent by the Numbers
FY2018the financial highlights, management indices,and shareholder returns that are necessary formaking investment decisions.

CyberAgent by the Numbers

31CyberAgent by the Numbers

Consolidated Sales

Sales Growth

419.5

DOE
Billion yen

13

Dividend Payout Ratio%
Female-To-MaleManagement Ratio

Consolidated OP

30.1

Billion yen(Non-consolidated)

Engineers andCreators Ratio(Non-consolidated)

Employees(consolidated)

4,988

Subsidiaries

5
83
21
33
106

%

%

%

%

* FY2018
CyberAgent by the Numbers

32

Financial Highlights

Consolidated sales

Operating income

New record high since company
founding.
FY2018 result is 419.5 billion yen,a YonY increase of +13.0%.

419.5

51.0 FY2019(E)Upfront investment continues in"AbemaTV", launched in April 2016,
generating operating profit of 30.1
billion yen for FY2018.

FY2019(E)470.0 billion yen

billion yen

billion yen

50.0 billion yen

Operating income ofexisting business*1

FY 2000
FY 2000

FY 2006

FY 2012FY 2006

FY 2012FY 2018

FY 2018

20.8

Operating loss of
upfront investment business*2

FY2019(E)20.0 billion yen

billion yen*12 Existing business excluding investment development business: advertisement, game and media businesses of "Ameba", "Tapple", etc.
* Upfront investment businesses: "AbemaTV" etc.

Total dividend andpayout ratio

Net income*
14.7

13.6

4.0

3.7

9.5

4.0

3.1

4.8

3.1

Equity capital
4.0

billion yen

66.7

100.0%ROE (Return on Equity)

77.1 78.9

81.7

billion yen

24.4%
19.1%

7.5 %
18.9 %

Management Index
5.2 %

54.5
83.0%

billion yen

DOE (Dividend on Equity)

5.2%

4.4%

5.2%

5.0%

FY 2017

FY 2018

6.0%

39.4%
21.2% 23.1%
FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016* Net income attributable to parent company shown AbemaTV Co., Ltd. is not subject to consolidated tax payments Cygames is influenced by non-controlling shareholders, etc.

CyberAgent by the Numbers

Financial Highlights

33

Management Index

Management Index
CyberAgent takes advantage of its
adaptability to change, repeating a cycle of
upfront investment and reward-reaping topromote continued business growth. In
April 2016, we entered a new investment
phase when we launched our internet TV
station "AbemaTV." For this reason, since
the year ended September 2017 we haveintroduced DOE as a management
benchmark, which is calculated bymultiplying ROE by the dividend payout
ratio. At time of investment, we looking fora DOE of at least 5% in order to support
our shareholders in the medium tolong-term.

Set the DOE 5% or higher from FY 2017 as a guideline

ROE

Dividend
Payout Ratio

DOE

Dividend
Payout Ratio

ROE

DOE

83.0%
24.4%
19.1%

18.9%

FY 2015

FY 2016

83.0%

6.0%
5.2%

FY 20145.0%

100.0%FY 2017

6.0%

FY 2018

7.5 %
5.2 %

39.4 %

4.4 %

5.2% 5.0%

TSE Ave. 2.6 %

21.2%23.1%

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018* To celebrate the market shift to the 1st section of Tokyo Stock Exchange, commemorative dividend was conducted in FY2014.

CyberAgent by the Numbers

Management Index

34

Shareholder Returns

Shareholder Return Policy
We recognize the return of profits toshareholders as an important issue inmanagement, and plan to boost themedium to long-term shareholder value by
growing the business and improving capitalefficiency, while also continuing to pay out
dividends.

Stock Price of CyberAgent vs Nikkei Stock Average*

Dividend History
13

32 yen 32 yen 33

12
11

yen

25 yen 25 yen

10
9
8
7
6
5
4
3
Nikkei2
1
0FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

FY 2015

FY 2016

FY 2017

FY 2018 FY 2019(E)* Stock Price of CyberAgent vs Nikkei Stock Average

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

CyberAgent by the Numbers

Shareholder Returns

35Our People by the Numbers

Female-To-Male Ratio

Job Type

Age Distribution
Creator8%

Female32%

68 %Female-To-Male Management Ratio

13 %Engineer

25 %

Male

People work
activelyregardless ofgender differences.

40s and up

20s

46 %

67%

33% ofemployees areengineers andcreators.

41%

30s

Business

Average age of
employees is 31.

Join CybeAgent as New Grad or ProfessionalYears of Service
10+years

18 %Female21%

Women
represent
more than 20%
of all managers.

New
Graduate

Male

79 %

We give
attention topeople andespecially focus
on employing
new graduates.

Professional

60 %

40 %

< 3years

7-9years

40 %

11%

5-6years

43% of theemployees
have been with us
more than 5 years.

14 %3-4years17%* Management: who are being managers or producers or directors with certain job grades.
* The number of executives and employees (non-consolidated): 1,551 as of the end of September 2018.

CyberAgent by the Numbers

Our People by the Numbers

36

Become a Manager within 3 Years

Turnover Rate

We eliminates theseniority and has aculture of exceptional
promotion such as givinga chance to young
employees to establish a
new company.

9.3 %Secure the best people is a
critical matter in the internet
industry. Retention of theemployees is ourcompetitiveness.

22.8%

Working Mothers

Returning to Work after Maternity Leave

About 30% of female
employees are moms.
Femaleemployees
who aren’ tmothers

WorkingMothers

26%

66%

On Maternity
Leave

8%

Fulfilling family benefits plansuch as "macalon" support
98% of female employees
return to work after leave.

98.3%* The number of executives and employees (non-consolidated): 1,551 as of the end of September 2018.

CyberAgent by the Numbers

Our People by the Numbers

37CyberAgent by the Numbers

Empowering Women

In terms of female-to-male ratios, women compose 32% of CyberAgent
staff, of which 21% are in managerial positions including producers anddirectors. In 2014, a female employee became our first female corporate
officer just 7 years after joining as a new graduate (at the time). In 2017,
another woman was appointed to the Board of Directors. Meanwhile, at
our subsidiaries, 2 women serve as presidents, 6 as representative
directors, and 5 as corporate auditors.
We provide a diverse range of workplace opportunities for a female staff,
and there are an increasing number of female professionals who choose
to actively participate not only in managerial positions, but also as
designers and much more. We are dedicated to creating an environment
in which capable staff have opportunities to play an active role inlong-term careers, regardless of gender.

"Macalon" : our system for promoting women in the workplace
In May 2014, CyberAgent introduced"macalon packages" in an initiative to createa workplace environment where women cancontinue working long after the childbirthand childcare stages of life. The system's
name, "macalon," combines the "ma" of'mama', "ca" of 'CyberAgent', and "lo" of'long'. It comprises 8 packages that include'Fertility Leave' for women to undergo
fertility treatment at a hospital or clinic;'Work-at-Home Childcare', enabling women

to work from home while looking after a childthat is suddenly sick, or when nurseryschool is closed; and 'Partial Subsidy of
Non-Approved Nursery School Fees',
wherein CyberAgent pays some of the costs
for non-government-approved nurseryschools, which are often costly. As a resultof these efforts, the return-to-work rate offemale staff after maternity or child careleave now sits at 98%.

"CAramel": a cross-sectional female organization"CAramel," a cross-sectional femaleorganization was launched in September
2017 as the result of a proposal presented
by female staff at Ashita Kaigi (Meeting forTomorrow). Women are susceptible to major
impacts on their career due to the changesof various life stages. Therefore, these
events are held as a forum for female
employees to interact together to grasp theirown career from a mid-to-long term
perspective, and build up their own careers.
'CAramel' is a play-on-words of theJapanese word 'karameru', meaning tointeract or mix together. As the nameimplies, through this we hope to "create aforum where many women can 'interact'
together," which is already evidenced by the
315 women participating.

* Ashita Kaigi (Meeting for Tomorrow): Held twice a year,"Ashita Kaigi" is a meeting (=kaigi) led by the
management team, in which new business initiatives andsolutions that could improve CyberAgent's
future (=ashita) are proposed

Photos: 'CAramel' event for female staff

CyberAgent by the Numbers

Empowering Women

38

In June 2018, a woman raising a young child became the director of CyberBull, Inc.
an advertising agency that specializes in video-based advertising.

A "mama" director providing key support fora fast-growing company
When I was approached to become adirector, I already had a strong interest in
management, so the choice of director felt
very natural for me. It's such a waste ofpeople's talent to have to give up on theirgoals because they "are a mother now" or"it's too difficult to balance family andcareer," and it's certainly not an excuse tostifle someone personal growth. Luckily
though, CyberAgent has the kind of systems
and culture that support women in achieving
growth.
In my case, I got pregnant and had a childsoon after joining CyberAgent as a new
graduate, so when I took temporary leave atthat time, I felt there were a lot of things
unfinished in terms of what I wanted toachieve in my career.
That’s why, more than anyone else, I wasdetermined to contribute to the company byachieving something meaningful. From thetime I first returned to work after childcare
leave in 2012, I delved right into the job witha strong desire to 'expand my own job size'.
Although I started-out in human resources
at CyberBull, today I've grown to be in
c h a r g e o f t h e e n t i r e b a c k o ff i c e . I ' mdetermined to be the best possible'organization-building pro' by continuing to
improve my HR skills and drawing on thediverse experience I've built up to date. I
think that 'having the will to build a career'also means having access to a career thatis adaptable to your life stage, and it results
and contributing to the company's successas well.

Director of CyberBull Inc.

Maiko Kimura

Job History: Joined CyberAgent as a fresh graduate of in 2007. Joined the Advertising Sales Division afterparticipating the launch of a subsidiary branch in Osaka. Moved to Tokyo in 2010 due to husband's job relocation.
Gave birth in December 2010 and later returned back to work in April 2012. Became a manager in December 2014
after working as a planner for Ameba. Provided back office support for a startup subsidiary from November 2015.
Joined CyberBull in October 2016. Settled in her current position from June 2018 after overseeing the entire backoffice.

CyberAgent by the Numbers

Empowering Women39

03
CyberAgent has been expanding business in
the internet domain since its inception, and by
drawing on the knowledge and businessresources built up over the years, we are

ESG

committed to helping to realize a society
capable of sustainable growth.

ESG

40

Ethical Business Guideline

Objective

This guideline based on the “Mission Statement (the Code of Conduct of CyberAgent)” provides the basic conduct to beobserved by the directors, employees (including part-time and temporary employees) and all those who are involved in ourcompany’ s business, such as outsourcees engaging in business activities, so that the standing of stakeholders are respected
and our company is able to fulfill its social obligations as a corporation.

Social Obligations

We shall take the following matters into consideration in developing/offering services and products.
1) We will develop and offer services and products that are useful for society while recognizing the diversifying needs ofconsumers and customers.
2) We will ensure that our services and products meet the safety and quality level.
3) We will offer appropriate information regarding our services and products to consumers and customers.
4) We will respond in good faith to questions, etc. from consumers and customers.
5) We will protect the personal/customer information appropriately, in accordance with our provisions for protecting personal
information.

Fair Trading

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

Protecting the Intellectual Properties

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

Disclosure of Corporate Information

In consideration of the following matters, we shall communicate with society broadly, and disclose corporate information actively
and fairly.
1) We will offer accurate information to shareholders, investors, and others and promote communication with them throughshareholders’ meetings and investor relations (IR) activities.
2) We will comply with the laws and regulations regarding the prevention of insider trading in accordance with our provisions forinsider information management.
3) We will disclose timely and appropriate information to stakeholders through public relations etc.

ESG

Ethical Business Guideline41

Respect for Human Rights

In consideration of the following matters, we are committed to respect the diversity, personality and individuality of ouremployees, and to secure a safe and comfortable working environment.
1) We will promote good work-life balance and produce a personnel and treatment system that enables diverse human resources
to work with us.
2) We will eliminate discrimination in employment and treatment, and work towards equal employment opportunities.
3) We will prevent accidents at workplaces and support the employees’ health promotion.
4) To respect the individuality of our employees and provide support so that they can develop their career and potential abilities.
5) We will engage ourselves in dialogues and discussions, in good faith, with our employees directly or with the representativesof the employees.
6) We will strictly forbid child labor and forced labor.

Address Anti Social Forces

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

International Business Operation

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

Management Leadership

In consideration of the following matters, our directors will recognize that it is their duty to embody the spirit of this guideline, anddiffuse it among the group companies. They will also maintain the effective company structure, and disseminate our corporate
ethics fully.
1) Our directors will do our utmost to demonstrate leadership to clarify our “Vision” .
2) Our directors will manifest our basic stance on our “Vision” and “Mission Statement” to the outside, and disclose theinformation regarding the practical efforts towards them.
3) Our directors will build a company-wide system to work towards corporate ethics.

Contribution to Sustainable Society

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

ESG

Ethical Business Guideline42Compliance

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

Compliance Framework

Initiatives to Educate and Diffuse Compliance

CyberAgent rebuilt the Legal Office which
was used until 2016 into the Legal andCompliance Office to carry out complianceduties. The office has been providing
compliance education and ensured it hasb e e n d i ff u s e d i n a l l d i v i s i o n s o f t h ecompany. They have been setting up aframework that enables business
operations imbued with strong ethics byimplementing required measures inestablishing a compliance framework forthe entire company group and regularly
holding specialized compliance workshops
necessary to the duties in each division.

Implementation of
a Compliance Workshop

e-Learning

HotlineA compliance workshop is implemented at
the moment new graduates or mid-career
employees join the company. In addition,
we regularly provide workshops to improveknowledge and awareness regarding
compliance. For example, we offer
additional education about the Law for
Preventing Unjustifiable Extra or
Unexpected Benefit and Misleading
Representation, Infrastructure Security, etc.
according to the characteristics of eachdivision and trends.

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

CyberAgent has put in place a system inwhich company directors or employees cannotify a support desk (internal notification
system) or ask for guidance anonymously
should they discover a complianceviolation.

ESG

Compliance43Corporate Governance
Under our vision “To create the 21st century's leading
company,” CyberAgent regards corporate governance as a
key issue in achieving sustainable expansion of thebusiness.
While conducting corporate activities based on rules that
include legislation, social norms, ethics etc., in October
2017, we transferred our corporate governance to acompany with an audit committee in an aim to improve theeffectiveness of the Board of Directors.
We have been making efforts to further enhance thesupervisory functions, transparency and fairness of theBoard of Directors, including by the appointment of threeexternal directors and one female director.

Structure
Shareholders' Meeting
Appointment
and removal
Company Attorney etc.

Accounting Auditor

Appointment
and removal

AdviceAccounting audit

Audit of internal control

Board of Directors
Board of Full-time
Directors' meeting
11 Executive Directors,
1 Audit and Supervisory
Committee member

Advice12 Directors who are not Audit
and Supervisory Committee
members,of which 1 is Outside
Director

Investment
Committee

Instruction andsupervision

Audit andSupervisory Committee

Directors

Delegationof authority

Advice3 Directors who are Audit
and Supervisory Committee
members,of which 2 are
Outside Director

Audit,
supervision

Instruction
and supervision

ReportAppointment, instruction
and supervisionInternal Audit OfficeInternal audit,
Internal control Assesment

President / CEO
Instruction
and supervision

Business Division,
Subsidiaries

Instruction
and supervision

Business Division,
Subsidiaries

Instruction
and supervision

Business Division,
Subsidiaries

ESG

Corporate Governance44

Outline of the Corporate Governance Structure
as of December 17, 2018

Corporate governance structure

Company with Audit and Supervisory Committee

Number of directors on the board (Outside directors)

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

3(2)Executive Officer System

None

Standards for appointment and independence of outside directors

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

Introduction of measures to prevent takeover bids

None

Strategic Shareholdings

The Company may own "Strategic Shareholdings" if, for instance, it is expecting tostrengthen business collaboration. The execution of voting rights of strategic
shareholdings shall be handled appropriately based on careful review of proposal
content.

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

Accounting Auditor

Deloitte Touche Tohmatsu LLC

ESG

Outline of the Corporate Governance Structure

45

Corporate Governance

List of Directors

Since 2008, CyberAgent had implemented "CA8"
as a unique director rotation system (in which, thenumber of directors was set principally to 8 people
to ensure a sound board of director operating
structure, and 2 members were replaced every 2
years). However, it was decided to eliminate thissystem since certain goals had already been
attained, such as management team development,
and also to focus efforts on establishing a system
to further expand business.
In order to further strengthen and perfect amanagement structure that is able to respond to anever-diversifying business portfolio, we plan toincrease the number of directors for a certain
period we call a "bulk up period," and continue topursue further management team development
and the building-up of an even more robust
management system.

Boardroom

ESG

Corporate Governance List of Directors

46

President and CEO, Overall Management

Susumu Fujita
Apr. 1997
Mar. 1998
Jun. 2012
Apr. 2015

Joined Intelligence, Ltd. (Present: PERSOL CAREER CO., LTD.)
Founded CyberAgent, Inc. President. (current position)
Vice Representative Director, The Japan Association of New Economy (JANE)
President, AbemaTV, Inc. (current position)
13 /13Vice President, Game Business

Yusuke Hidaka
Apr. 1997
Mar. 1998
Oct. 2010
May 2011

Yasuo Okamoto

Go Nakayama

Joined Sumitomo Corporation.
Joined CyberAgent, Inc.
Director, CyberAgent, Inc.
Managing Director, CyberAgent, Inc. (current position)

Managing Director, Media Business

Masahide Koike
Jul. 2001
Dec. 2012
Dec. 2014
Jul. 2016

Joined CyberAgent, Inc.
Director, CyberAgent, Inc.
Managing Director, CyberAgent, Inc. (current position)
Director of AbemaTV, Inc. (current position)

Managing Director, Internet Advertisement Business

Takahiro Yamauchi
Apr. 2006
Apr. 2009
Dec. 2012
Oct. 2018

Joined CyberAgent, Inc.
Representative Director, CyberZ, Inc. (current position)
Director, CyberAgent, Inc.
Managing Director, CyberAgent, Inc. (current position)

13 /13

71,400 shares

Joined CyberAgent, Inc.
Director, CyberAgent, Inc.
Managing Director, CyberAgent, Inc.
Executive Managing Director, CyberAgent, Inc. (current position)

Managing Director, Company-wide Function

Apr. 1998
Aug. 1999
Dec. 2003
Apr. 2006

837,200 shares

Joined Intelligence, Ltd. (Present: PERSOL CAREER CO., LTD.)
Founded CyberAgent, Inc. Managing Director.
Vice President, CyberAgent, Inc. (current position)
Director, Cygames, Inc. (current position)

Executive Managing Director, Internet Advertisement Business

Apr. 2000
Dec. 2008
Oct. 2010
Dec. 2014

25,909,600 shares

12/13

354,275 shares

13 /1348,315 shares

12/13

27,479 shares

13 /13*1 Name, Title, Managing Division (as of December 14, 2018)*2 Number of shares hold (as of the end of November)* Independent directors: Independent directors pursuant to the provisions of the Tokyo Stock Exchange.

Director, Game Business

3,398 shares

Koki Ukita
Apr. 2011
Apr. 2014
Dec. 2016

Joined CyberAgent, Inc.
Representative Director, Applibot, Inc. (current position)
Director, CyberAgent, Inc. (current position)

Director, Human Resources

112,249 shares

Tetsuhito Soyama
Apr. 1998
Apr. 1999
Dec. 2008
Dec. 2016

Joined Isetan Co., Ltd. (present: Isetan Mitsukoshi Holdings, Ltd.)
Joined CyberAgent, Inc.
Director, CyberAgent, Inc.
Director, CyberAgent, Inc. (current position)

Director, Advertising Technology and Creative Development

Takahito Naito
Apr. 2001
Oct. 2010
Oct. 2014
Dec. 2018

Norishige Nagase

3,214 shares

3,000 shares

Riku Yamada

Joined CyberAgent, Inc.
Corporate Officer, CyberAgent, Inc. (current position)
General Manager of Advertisement Hq. of AbemaTV, Inc. (current position)
N/A
Director, CyberAgent, Inc. (New)

Independent Outside Director

1,496 shares

Koichi Nakamura
Apr. 2008
Apr. 2012
Jun. 2014
Dec. 2016

N/A

Joined NTT Software Corporation (present: NTT TechnoCross Corporation)
Joined CyberAgent, Inc.
General Manager, Technical Development Division (current position)
N/A
Director, CyberAgent, Inc. (New)Director, AbemaTV Advertising

Apr. 2011
Oct. 2015
Oct. 2017
Dec. 201813 /1366,000 shares

Joined CyberAgent, Inc.
Director, CyberAgent, Inc.
General Manager of AdTech Business Hq. (current position)
Director, CyberAgent, Inc. (New)Director, Technical Development Division

Apr. 2000
Aug. 2005
Jan. 2018
Dec. 201813 /13

Director and Vice President , Recruit Co., Ltd. (present: Recruit Holdings Co., Ltd.)
Director and Advisor, Recruit Co., Ltd. (present: Recruit Holdings Co., Ltd.)
Resigned Director and Advisor, Recruit Holdings Co., Ltd.
Outside Director, CyberAgent, Inc. (current position)
13 /13*3 Board meeting attendance (N/A for new Directors)

ESG

Corporate Governance List of Directors

47

Corporate Governance

Audit and Supervisory Committee

・Directors who are members of the Audit Committee attend Board of Director
meetings and other important meetings to audit and supervise the legality andappropriateness of the directors' business execution.
・As necessary, the Audit and Supervisory Committee receives reports or
explanations from company executives and employees, and implements surveys
etc. of major subsidiaries or workplaces.
・The committee meets regularly once a month and holds unscheduled meetings
whenever necessary.
・11 meetings were held in 2018

Structure of the Audit and Supervisory Committee

Toko Shiotsuki,Director (Full-time Audit and Supervisory Committee member)

Director

Outside Director 45,800 shares

Isao Numata

Full-time Audit and Supervisory
Committee member
Chairman of Audit and Supervisory
Committee

Audit and Supervisory Committee
memberAudit and Supervisory Committee
memberIndependent

Independent

Attendance Rate

Attendance Rate

9,600 shares

Toko Shiotsuki

Board meetings
Corporate Auditors meetings
Audit Committee meetings

13/13
2/2
11/11

Masao Horiuchi

Board meetings
Corporate Auditors meetings
Audit Committee meetings

Isao Numata

64,683 shares

Attendance Rate
12/13
2/2
11/11

Board meetings
Corporate Auditors meetings
Audit Committee meetings*1 Name, Title (as of December 14, 2018)*2 Number of shares hold (as of the end of November)* Independent directors: Independent directors pursuant to the provisions of the Tokyo Stock Exchange.

13/13
2/2
11/11

Toko Shiotsuki,Director (Full-time Audit and Supervisory Committee member)

Overseeing Management and the Unique Perspectiveof a Female Director
I believe that the role of full-time directors, who are in a position independent frommanagement, is to have an accurate grasp of the company’ s situation at all times andoversee management while sharing identified issues with the outside directors.
As the only female director, I am dedicated to promoting well-balanced discussions thatdraw on my knowledge and experience, while enhancing the diversity of the Board of
Directors.

ESG

Corporate Governance List of Directors

48Corporate Governance

List of Corporate Officers

Senior Corporate Officer

Corporate Officer

Corporate Officer

Corporate Officer

Corporate Officer

Internet Advertising Headquarters

Human Resources DivisionInternet Advertising Headquarters

AbemaTV, Inc.

Systems Department

Corporate Officer

Corporate Officer

Corporate Officer

Corporate Officer

Creative Development Division

Human Resources Division

AbemaTV, Inc.

Internet Advertising Headquarters

Hiroyuki Ishii

Yosuke Sato

*1 Title, Name, Managing Division

Yuko Ishida

Takehiro Takeda

Eiji Koike

Tatsuhiko Taniguchi

Takunori Fujii

Masato Sato

Gaku Miyata*2 As of October 3, 2018

ESG

Corporate Governance List of Corporate Officers

49Corporate GovernanceDirectors and Board of Directors

Reason for the appointment of outside directors
KoichiNakamura

Mr. Koichi Nakamura accumulated years of experience ingeneral management at Recruit Holdings Co., Ltd. Sincebeing appointed as an outside director in December 2016,he has provided valuable advice as an outside director on
matters such as strengthening human resources andorganizational skills. Based on abundant experience andknowledge built up over the years, his advice is grounded
in a firm understanding of CyberAgent's management,
corporate value, and corporate culture that considers
human resources our assets.
To date, based on abundant experience and from an
independent, objective standpoint, he has on manyoccasions provided practical comments and advice on
improving and strengthening corporate governance andinternal control. In view of the fact that the Board of
Directors can expect to continue receiving appropriate
advice from him, we have determined he is capable ofappropriately performing the duties expected of an
independent director.
CyberAgent has determined that Mr. Nakamura meets thequalifications of an independent director as set by the
Tokyo Stock Exchange and poses no risk in terms ofconflict of interest with ordinary shareholders, and has
thereby appointed him as a Independent Outside Director.

Masao
Horiuchi

Mr. Masao Horiuchi was appointed as an Outside Auditorof CyberAgent in 1998. After working for many years incharge of internal control and the administrative
department of USEN-NEXT HOLDINGS, he now draws on
this abundant experience to provide valuable advice oninternal control at CyberAgent. Based on extensive
experience and knowledge in finance, accounting, andtaxation as a tax accountant, Mr. Horiuchi contributes tofurther strengthening CyberAgent's corporate governanceby objectively monitoring the company's management andproviding useful advice.
Based on a deep understanding of our corporate group's

vision and business activities, he also anticipates potential
risks before they occur, exchanges unreserved opinionswith the management team, and when necessary, openly
gives hard-hitting opinions. Because of these traits, weconsider him qualified to serve as an independent outside
director, which requires a high level of impartiality.
CyberAgent has determined that Mr. Numata meets thequalifications of an independent director as set by the
Tokyo Stock Exchange and poses no risk in terms ofconflict of interest with ordinary shareholders, and has
thereby appointed him as a Independent Outside Director.

Isao
NumataMr. Isao Numata was appointed as an outside auditor in
2000. After working at Daiwa Securities for 12 years, heutilized the knowledge he built up there to establish a
consulting firm mainly engaged in IPO Consulting. Basedon extensive experience and knowledge of management
and stock markets which he built up as a business
operator, Mr. Numata contributes to further strengthening
CyberAgent's corporate governance by objectively
monitoring the company's management, providing usefuladvice, enhancing auditing capabilities in overall business
implementation, and ensuring transparency in business
management.
Mr. Numata also worked from April 1988 to June 2000 at
Daiwa securities (currently Daiwa Securities Group

headquarters), which is CyberAgent's lead underwriter. It
should be noted, however, that he has never held a key
position concerning the administration of CyberAgent, andmore than 18 years has passed since he left that company.
He also had never had any special business relationshipwith the company after leaving it. Based on this history, we
consider him to have more than adequate impartiality
concerning CyberAgent.
CyberAgent has determined that Mr. Numata meets thequalifications of an independent director as set by the
Tokyo Stock Exchange and poses no risk in terms ofconflict of interest with ordinary shareholders, and has
thereby appointed him as a Independent Outside Director.

Board of Directors
・The Board consists of 15 directors including 3 outside directors
・The Board meets regularly once a month and also holds
unscheduled meetings whenever necessary
・Meetings in 2018: 13

Analysis and Evaluation of Boardof Director Effectiveness
A questionnaire on effectiveness of the Board of Directors was
conducted on September 27, 2018, which evaluated directors(including those currently serving as Audit and Supervisory
Committee Members).
With regard to the number of times the Board of Directors
convened as well as scope, quantity and content ofrecommendations presented, the questionnaire found that there
were no indications of problems and sufficient time was set aside
for deliberation. The questionnaire also found that directors havean appropriate decision making process which is rooted in
discussions that consider budget, earnings outlook, risk of impact
on business or management, etc., and that the board strives toimprove corporate value, selection and concentration, andbusiness expansion not only the directors' specific realm of
responsibility, but also across the entire company.

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Corporate GovernanceInterview with an Outside Director

Outside Director Koichi Nakamura"Valuing the shareholders' perspective
while leading CyberAgent to growth"
Intense debates take place at Board of
Director meetings. CyberAgent is not aone-man-show with the company’ sfounder, Mr. Fujita calling all the shots.
Instead it gives the impression of the entire
management team clearly voicing theirunreserved opinions.
Agenda items that come up don't simply end
in idle talk, but rather, a decision or basic
course of action is determined on-the-spotthrough a process of highly constructive
discussion.

Mr. Nakamura

The role of an outside director is to engage
the board of directors while also supervising
management and ensuring that corporate
governance is being fully applied.
Our job is to make decisions based on ourown experience and knowledge whilevaluing not only the company's internal
viewpoint, but also the viewpoints of people
outside the company and shareholders.
Through these efforts, we are dedicated toleading CyberAgent to even more
impressive growth.

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Corporate GovernanceManagement Transparency

Basic policy for information disclosure
CyberAgent strives to provide prompt information to shareholders and investors based ontransparency and fairness. We are also dedicated to timely and proactive disclosure of
information in accordance with the Financial Instruments and Exchange Act and Tokyo Stock
Exchange timely disclosure rules, as well as information we deem valid for better
understanding the company.
For more information, please refer to our Disclosure Policy on page 77.

Communication through social media

CyberAgent
Official Facebook

CyberAgent
Official Twitter

President, Susumu Fujita
Official Twitter

Director, Tetsuhito Soyama
Official Twitter

Initiatives to General Meeting of Shareholders
We are accelerating the delivery of
convocation notices to ensure that ourshareholders have sufficient time to review
the agenda. Convocation notices are sentout at least one week prior to the statutory
date (at least three weeks before theGeneral Meeting of Shareholders). In
addition, before notices are sent out, their
Japanese and English versions are posted
on CyberAgent ‘s corporate website, on theTokyo stock exchange website, and also on
the electronic voting platform for rights
holders. Exercise of voting rights throughthe internet has been available since 2007.
CyberAgent sets shareholders’ meetings inDecember by avoiding dates crowded withother company shareholder meetings sothat as many shareholders as possible canattend. The 21st annual General Meeting of
Shareholders was held on December 14,
2018. A business report video on the firstpart General Meeting of Shareholders aswell as scenes from the second part
Company Information Session are available
to view on the corporate website.

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Corporate GovernanceDirector Compensation

Director Compensation

Policy for directors' compensation decisions
The amount of compensation for CyberAgent executives, etc., is determined bycomprehensively taking into consideration the role, contribution, and performance of eachdirector appointed by the Board of Directors (excluding directors who are members of the Audit
and Supervisory Committee, etc.), within the compensation limit approved at the general
meeting of shareholders.
The amount of compensation for directors who are members of the Audit and Supervisory
Committee, etc. is determined through consultation with the directors who are members of the
Audit Committee etc. is determined based on mutual discussion with that person.

Introduction of stock option system
Stock options are granted based on CyberAgent's consolidated sales with the objective of further boosting the
motivation and morale, raising corporate value, and further strengthening corporate management.

Outline of Stock Options
Eligible employees
Issued outstanding balance
Estimated total amount paid

In-house directors, employees, directors of subsidiaries, employeesof subsidiaries
792,400 shares (0.63% of issued shares including treasury shares)
542,941,000 yen

Compensatedpersons

Compensation amount

Director (Exclude members of the Audit andSupervisory committee)

9407 million yen(Of which, outside director)(1)(12 million yen)

Directors who are members of the Audit andSupervisory committee

3

14 million yen(Of which, outside auditor)(2)(6 million yen)

Corporate Auditors

3

3 million yen(Of which, outside auditor)(2)(1 million yen)

Total

15

426 million yen(Of which, outside executive)(5)(19 million yen)Classification* Compensation to each director includes the amount of expenses incurred during the business year for
subscription rights to shares granted as stock options (Director, 128 million yen).

* as of the end of September, 2018

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Internal Control

CyberAgent is making system enhancements to
the IT internal control system and building an
operations monitoring system in order to realize
sustainable growth for the group as a whole.
By responding flexibly to fast-paced changes in thebusiness environment, we are committing the effort
necessary to maintain and improve the quality ofour business operations.

Internal Control System

Board of Directors

Monitoring

Audit andSupervisoryCommittee

ReportRisk Management(Risk Owner)
Business Division
Each Subsidiary

Effectiveness
Assessment

Risk Monitoring

Risk Monitoring

Legal Compliance Office

Recommendations

Internal auditing
and monitoring

Internal Audit OfficeFinancial
Accounting Office
Human Resources
and Compliance Office
Security GroupInternal auditing and monitoring

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Risk Factors

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

Regarding business trend

Regarding legal regulations

If there emerges a hindrance to the growth of the Internet, game markets or if business
confidence worsens, and affecting the Internet ad market, our business performance andfinancial standing may be affected.

CyberAgent’ s field of business is regulated by various laws and regulations, such as the Act
on the Limitation of Liability for Damages of Specified Telecommunications Service Providers
and the Right to Demand Disclosure of Identification Information of the Senders, the Act on
Prohibition of Unauthorized Computer Access, the Consumer Contract Act, the Act Against
Unjustifiable Premiums and Misleading Representations, the Act on Specified Commercial
Transactions, the Act on the Protection of Personal Information, the Act on Establishment of
Enhanced Environment for Youth’ s Safe and Secure Internet Use, the Payment Services Act,and the Food Sanitation Act, and procedures and guidelines from supervisory government
agencies. There may be changes to royalties paid to copyright organizations or holders ofneighboring rights or the terms and conditions of licenses on music copyright, or new licensing
other than the music copyright may be necessary. CyberAgent’ s business may be subject to
new restrictions, and business performance and future business expansion may be impacted
as a result of the enactment or revision of rules and regulations, or the formulation or revisionof new guidelines or voluntary-regulatory rules. In addition, third parties who have suffereddamage or loss from illegal acts within our services may file lawsuits against us as the service
operator to claim damages.

Regarding fluctuations in business performance
Earnings forecast is based on management’ s assumptions and it should be noted that theaccuracy of information is not guaranteed. Changes in unforeseen factors could cause actual
results to differ materially. Also, if accounting standards or taxation systems are changed
considerably, it may affect our business performance and financial condition of CyberAgent.

Regarding internal control systems
CyberAgent takes various measures for maximizing the value of each group company, whileconsidering that our important managerial mission is to enrich our corporate governance.
However, if the development of sufficient internal control systems cannot keep up with therapid expansion of our businesses, etc., it may become difficult to operate our businesses
appropriately, affect the business performance and financial standing of CyberAgent.

Regarding the risks accompanying the dependence
on specific management and recruitment
If it becomes difficult to secure personal or if as represented by board members, including thepresident or executive who has technical knowledge, skills, or experiences resigns or retires
for some reason and there are no successors, the business performance and financial
standing of CyberAgent may be affected.

Regarding information security risks
There are risks of the leakage of important data, the unauthorized falsification of computer
programs and system failure due to such occurrences as remarked below. Defect in computer
systems, deterioration in existing security measure, malware or computer viruses, anunauthorized access to computer networks, an error of executive, employee, or business
partner, natural disaster and temporary overload by the increase of access. It may result in athird party’ s claim for damages, fallen credibility of CyberAgent, and affecting the businessperformance and financial condition of CyberAgent.

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Regarding risks from managing personal information

Regarding the risks in future business operation

CyberAgent holds personal information obtained through businesses such as our internet
media business, and manages that information in keeping with the Privacy Policy prepared inaccordance with the Act on the Protection of Personal Information. If personal information isleaked or an issue arises in the process of collecting personal information due to events suchas a computer system defect, compromised existing security measures, malware or acomputer virus, unauthorized access of a computer from an outside source, an error by an
executive, employee, or business partner, natural disaster, or sudden mass network access,
CyberAgent may incur damage due to a claim against us or a deterioration of trust in
CyberAgent, or our business performance and financial standing may be impacted.

The business model of CyberAgent has contact points with both internet users and advertisers.
In order to expand our business in rapidly growing internet industry, we need to bear additional
investment in recruiting new personnel, improving equipment, developing businesses, etc. andit would take some time to earn stable profits from these businesses. In addition, ourprofitability may decline due to price-cutting competitions and the cost for increasing users willaugment for gaining an advantage over competitors.
Moreover, when operating overseas businesses, we may not be able to cope with potential
risks regarding the laws, regulations, politics, social situations, exchange rate fluctuations, andcompetitive environments in respective countries. Since CyberAgent offers Internet media
services targeted at general consumers, CyberAgent may suffer an unexpected reputational
damage. This would degrade our brand image, and affect our business performance.

Regarding risks related to intellectual property rights
CyberAgent makes efforts to protect our intellectual property rights that accompany
technological innovations in the internet industry and the expansion of our intellectual property
rights business, and reinforces awareness of our intellectual property rights and our internalmanagement structure so that our officers and employees do not violate third party intellectual
property rights. However, if a third party files a lawsuit against CyberAgent Group regarding
intellectual property right infringement or CyberAgent Group receives a claim to stop using theintellectual properties based on the content of the intellectual property rights held by the third
party, extensive funds and time may be required until that situation is resolved, andCyberAgent Group’ s performance and future business expansion may be impacted.

Regarding risks related to natural disasters
If there is an event such as a natural disaster (including an earthquake or a typhoon), or aterrorist attack, CyberAgent’ s business may be greatly impacted or fall into a state of
confusion. If there is a natural disaster or similar event, CyberAgent will make efforts toappropriately and promptly carry out emergency measures or restoration measures. However,
we do not guarantee that the impact of any interruption to or termination of the computer
system due to a natural disaster or similar event can be completely prevented, and businessactivities may be impacted, our brand image may be harmed, or there may be physical or
damage injury as a result of that event. Further, our base and the computer network
infrastructure are concentrated in a certain area according to the services. Therefore, if anatural disaster or similar event occurs at that location, there may be significant damage andour performance and future business expansion may be impacted.

Regarding the risks in the Internet media and game business
We operate a wide array of contents and services on the internet, including “AbemaTV,” blogs,
social media, games, videos, music, and informative websites. We plan to increase and retain
users, by developing new contents, enriching the functions of existing services, stabilizing ourbusiness operation, and so on. However, if we cannot offer attractive contents and services
liked by a broad range of users, the business performance and future business operation ofCyberAgent may be affected.
Our company takes various measures when necessary, for the purpose of promoting thesound development of markets related to the usage of games incorporate with industry groups.
However, if system adjustment and improvement or an unexpected event occurs, the businessperformance and future business operation of CyberAgent may be affected.
Our Internet media business offers services in accordance with the contracts with the cardcompanies, platform operators, telecommunications carriers, etc. If there are changes intechnical specifications, revisions to contracts, cancellation of contracts, or other unexpected
events, the business performance and future business operation of CyberAgent may beaffected.

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Regarding the risks in the Internet advertising and Ad Tech Businesses

Regarding risks related to sporting business

The Internet Advertisement Business may be affected by business trends, including the
reduction of Ad costs by advertisers. In addition, we may have to fulfill the obligation to pay
additional Ad fees to the media because of the worsening the financial standings ofadvertisers, the wrong distribution of Ads etc.
If we become unable to procure ad spaces or products due to the discontinuance oftransactions with media firms or if the conditions for transactions are changed, or if our
profitability decline due to an intensifying price-cutting competitions , the business performanceof CyberAgent may be affected.

CyberAgent carries out sporting business, including the operation of sporting exhibits andevents, and in the case of sporting exhibits, there may be an accident due to attendance by alarge number of spectators. The necessary prevention measures are taken, but CyberAgentGroup’ s performance may be impacted due to incidents of liability for damages or a loss ofconfidence.

In the Ad Technology, if new technologies or methods for advertisement are invented, thecompetitiveness of services we offer may decline considerably. the As for the advertisingutilizing ad technology for smart devices, there are possibilities that the changes to theregulations, guidelines for the providers of OS for smart devices and its functions will affect thebusiness performance and future business operation of CyberAgent.

Regarding risks related to investment development business
Public companies that we invest in may see a decrease in the gain on valuation or an increasein the loss on valuation due to share price trends. In addition, investments may not becollectible due to future performance by the companies that we have invested in, andCyberAgent Group’ s profit and loss may be impacted.
Unlisted companies may experience a deterioration in performance due to uncertain factors in
the future, and CyberAgent’ s performance, financial standing, and future business expansion
may be impacted.

Regarding the risks related to the EC business

Regarding risks related to M&As
CyberAgent attaches great importance to diversification of earnings through entry into andstrengthening of business peripheral to “AbemaTV,” and entry into and strengthening of new
business fields, such as business that utilizes resources and know-how of existing business.
One method to achieve that is to strengthen investments and lending, including M&As. The
target business is investigated in detail beforehand as much as possible, and once the risk is
sufficiently considered, the M&A is proceeded with. However, if there are issues in the priorinvestigation, such as being unable to ascertain unrecognized debt or contingent liability
post-acquisition, or post-acquisition business expansions do not proceed as planned,
CyberAgent’ s performance, financial standing, and future business expansion may be
impacted. In addition, if new areas of business are added to our group through M&A or similarmeans, risk factors specific to those businesses will be taken on by CyberAgent.

Regarding risks related to food and beverage business
CyberAgent operates restaurants and has thorough quality control and hygiene management.
However, if a food related incident arises due to certain circumstances, CyberAgent Group’ s
performance may be impacted due to incidents of liability for damages or a loss of confidence.

As CyberAgent operates E-commerce businesses, we manage product control systems, andsign contracts with suppliers thoroughly, but if the product we sold goes against the law or has
defects, producing problems of safety, etc., we may become liable for damages.

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Information Security

CyberAgent has formulated an Information Security
Policy and Initiatives to Protect Personal Data
(Privacy Policy) in order to handle the extensive
user and client information generated from service
operations, and protects and appropriately
manages information assets.
As a company that provides several internet
services, CyberAgent recognizes the importance of
information security and has accordingly
established an information security system run by
our company-wide IT Security Office. We have also
registered as a member with the Nippon CSIRT
Association and continue to strengthen security
measures through close collaboration with othercompanies.

・Establish a monitoring system against
external attacks
・Compile a summary of efforts on information
security
・Implement and operation risk management
and response measures
・Collect information on incidents and provide
follow-up
・Implement security training for staff

Security officers from each department gather in the IT Security OfficeBackground of the members that make up the IT Security OfficeMedia Business, Game Business, Internet Advertising Business, Company-wide System, Legal Affairs, Public Relations, Offices,
Internal Audit, Subsidiaries, Security

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ESG

Corporate Social Responsibility
With taking advantage of our services and accumulated
know-how, we fulfill our social responsibility and make theefforts to enable the creation of social value in a variety offields.

CSR（社会的責任）

Photo: Programming course offered by CA Tech Kids

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CSR

Safe and Secure Services

Media

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

24/7/365 monitoring system

Age verification
with government issued ID

Feature restrictions forunderage users

A monitoring system that
ensures reliable delivery

We operate a stringent 24/7/365 services
monitoring system to detect and eliminate
any users who use the service formalicious purposes.
We have also introduced a user reporting
system, and promptly investigate anytime
we receive reports of suspicious users. If
we find that the a user is in violation of ourterms of service we take immediate actionthat includes issuing a warning orcanceling the user's account.

For our dating app, we accept only
government-issued ID to verify the age ofusers before they are permitted to use
services such as message exchange,
contacting features, etc.
Examples of acceptable ID includes a
Driver ‘s License, National Health
Insurance Card, Employees’ Health
Insurance Card, Mutual Aid Association
Card, Pension Handbook, Passport, Alien
Registration Certificate etc.

Based on date-of-birth information enteredat the time of registration, we havemeasures in place to protect underageusers, such as restricting communication
functions or setting purchase limits.

A new monitoring system was introduced in
September 2016, and we implement 24/7
services monitoring in order to further boost
the reliability of our services delivery.
Also, in the event of a disaster or
emergency, we strive to continuously
deliver reliable content to fulfill our role as amodern information infrastructure in the eraof the internet.

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

Target services:
Tapple, etc.

Target services:
Ameba, Ameba Pigg, etc.

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CSR

Safe and Secure Services

Advertisement

In our advertising business, CyberAgent has been focused on improving ouradvertising-related compliance structure since 2017. As a leading internet advertising
company, our goals are to promote sound and transparent advertising transactions, andto be an advertising agency whose customers can feel confident in placing ads with.

Compliance Bureau

ClientIn order to improve the sales management quality of business divisions and subsidiaries
responsible for expanding our advertising business, we constantly review the administrative
flow, including checking consistency, as well as make efforts to strengthen coordination among
the group in terms of know-how and knowledge.
We also conduct advertising reviews to ensure that the content of the ads proposed to us arein full compliance with laws, regulations, and JIAA (Japan Interactive Advertising Association)
guidelines, and also in line with public order and morals.

Advertising Compliance Committee
With the goal of improving the integrity and safety of advertisements, this committee iscommitted to solving problems with a cross-section of members from the Advertising Business
Department and Legal and Compliance Office.
The committee takes advantage of the group's collective knowledge in a variety of issues
related to advertising quality, including with measures to protect against piracy and illegal sites,
ensure brand safety, and prevent ad fraud.

Ad placement
ordersReportingAdvertising Compliance Structure
Submission
auditing
Advertising
Compliance
Committee

Advertising agency
business(including subsidiaries)

Compliance
BureauSales
Administration Dept.
(order management)

Ad reviews

Brand
Security
CenterBrand Security Center
To ensure that our customers can feel confident in advertising with us, in June 2017 weestablished the "Brand Security Center," a group dedicated to monitoring brand safety 24
hours a day 365 days a year.
CyberAgent Brand Security minimizes advertisement opportunity losses while simultaneously
preventing damage to our advertisers brand value. By doing this, CyberAgent maintains
outstanding advertising quality while pursuing maximum advertising effectiveness.

Anti-fraud

Ad placement

Ad effectivenessdata

24-hourmonitoring

Media

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CSR

Safe and Secure Services

Game

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

Money spending alerts

Spending limits for minors

Money spending alerts are issued to users when the amount of money spent on in-game
purchases has reached the amount set for each month, thereby preventing excess purchases
and usage.

We limit the monthly spending amount of minors. By limiting the maximum spending amountusers for age 15 or under to 5,000 yen and ages 16–19 to 10,000 yen, we protect users by
ensuring that minors are unable to spend excessive amounts.

*Alert amount set differs by game.

Display of distribution rates (also known as "drop rates") of
each obtainable random in-game item
In accordance with the "Operating Guidelines for Random Item Distribution in Network Games"
established by the Computer Entertainment Supplier's Association ("CESA"), CyberAgent
displays the distribution rates (also known as "drop rates") of each obtainable random in-gameitem to increase transparency. In addition, we disclose information more simply and clearly bydisplaying modified distribution rates if they are modified for a special event.

In-game patrols
CyberAgent prohibits the advertising, announcing, or soliciting of RMT (Real Money Trading)with other users, as well as RMT involving the buying or selling of game IDs or game items in
exchange for money or anything of monetary value. If such acts are discovered, we will takeaction in accordance with each game's usage policy, including the suspended use of all or partof a game, or cancellation of the user's account.
Voluntary patrols help ensure a safe and secure gaming environment for all users bymonitoring whether games are being operated properly, watching for unacceptable activities
such as RMT, and checking whether posted comments violate rules.

Prohibition Real Money Trade (RMT)
In all games we provide, CyberAgent prohibits the advertising, announcing, or soliciting of
RMT (Real Money Trading) with other users, as well as RMT involving the buying or selling ofgame IDs or game items in exchange for money or anything of monetary value. If such actsare discovered, we will take action in accordance with each game's usage policy, including thesuspended use of all or part of a game, or cancellation of the user's account.

Thorough compliance with game related laws and regulations
In order to ensure that users can enjoy games in full confidence of their safety, we haveestablished acceptable use policies for each game and also take steps to promote awarenesson our official website and in-game.

Games operated in accordance with CESA's "Operating Guidelines
for Random Item Distribution in Network Games"
Games are operated in accordance with the "Operating Guidelines for Random Item
Distribution in Network Games" which have been established by the CESA
Applies to:
CyberAgent, Inc., Cygames, Inc., Applibot, Inc., GCREST, Inc., Sumzap, Inc., Grenge, Inc., Griphone, Inc., Goodroid,Inc., Craft Egg, Inc., QualiArts, Inc.
We will continue to take appropriate action as necessary for games provided by the above companies.

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CSR

Social Initiatives:
Contributing to Local Communities

Contribution to local communities
In 2018 we launched "SHIBUYA BIT VALLEY," a project aimed at making Shibuya an
international hub of technology in the IT field.
"BIT VALLEY 2018" was also held in September as a first-year effort. This tech conference
brought together some 1,000 young engineers in the IT industry as well as students aspiring to
be engineers. CyberAgent has provided support to help as many engineer-aspiring students as
possible participate in the conference by providing transportation expenses to 102 students
living outside the metropolitan area.
With the shortage of IT talent in Japan becoming a social problem, CyberAgent is dedicated tobolstering Shibuya's IT community and promoting interaction with this tech conference playing
a central role.

Tech Conference "BIT VALLEY 2018"

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CSR

Social Initiatives:
Fostering IT Talent

Fostering IT TalentWith the aim of developing the talent to leadthe 21st century with IT, in May 2013 weestablished "CA Tech Kids" in a joint venturewith Life is Tech, Inc. to offer programming
education to elementary school students.
Through the implementation and operationof the programming school "Tech Kids
School" and introductory programming
workshop "Tech Kids CAMP," we haveprovided programming educational
opportunities to over 30,000 elementary
students in just five years.
Our efforts go beyond just helping kids
acquire IT programming knowledge andskills; we are also fostering the skills todesign, realize an idea, and make forward
progress in our aim to encourage thedevelopment of "talent capable of using
technology as a tool to realize their own
ideas and actively engage in society."

CA Tech Kids also carries out activities that
promote the introduction and popularizationof learning programming skills in public
education. These activities include outreachprogramming classes at primary schools,
policy recommendations on programminge d u c a t i o n , c o l l a b o r a t i v e e ff o r t s w i t hgovernment, and more.
From a desire to provide programming
education opportunities to all children
regardless of economic or geographic
situation, we have been visiting schools andmunicipalities across Japan to implement
outreach programming classes. In
November 2015, we also held outreachprogramming classes in Rikuzentakata city
(Iwate prefecture) and Iwaki city (Fukushima
prefecture), areas affected by the Great
East Japan Earthquake.

"Tech Kids Grand Prix" programming contest held in 2018

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CSR

Social Initiatives:
Creating Job Opportunities

Aggressive Investment
in Talent

Proactive Employment of
Persons with Disabilities

CyberAgent is promoting employment inrural areas through the establishment oflocal subsidiaries. Offices in Okinawa andSendai employee 843 people who are
engaged in monitoring the comments on
our smartphone service, Ameba, andoperating internet advertisements as partof our internet advertising business. (As ofthe end of September 2018)

In 2007, we launched subsidiary
CyberAgent Will, Inc. based on the 'Act on
Employment Promotion of Persons with
Disabilities' to proactively employ persons
with disabilities. Through participation in
joint explanatory meetings and interviews
at various locales, we have enhanced
recruitment abilities and systematically
expanded employment opportunities. As aresult of proactively employing disabled
persons who possess high-level computer
operating and technical skills, we
successfully achieved the mandatory
employment rate of 2% by June 2018.
We currently employ 83 persons withdisabilities who function in a variety of roles
such as data entry and other operational
work, in-house physical therapists, etc. (Asof the end of September 2018)

Since 2016, we have also been steppingup the hiring of students from regional
universities. CyberAgent has held outreachseminars, consultations, and local
employment screening at regional
universities and has launched hiring
activities in all 47 prefectures acrossJapan. Since 2017, we have also posted
online videos of company information
sessions.

Okinawa office

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CSR

Social Initiatives:
Enhancing the Information Infrastructure

Instant posting of disaster information

Enhancing "AbemaTV" Content
Launched in April 2016, the internet TV station "AbemaTV" allows users to browse the latest
news and information for free on their smartphone. Continuing to grow in popularity,"AbemaTV" delivers services to smartphones ― which people carry ubiquitously thesedays ― and also provides notifications 24-hours-a-day in real time in the event of a disaster,such as early earthquake warnings. By doing this, we are pursuing business initiatives thatrecognize the importance of its role in society as new information infrastructure in the age ofinternet.

Disaster emergency information summary was broadcast in
text for disaster-affected persons during an Intensity 6
earthquake in Hokkaido.

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CSR

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

FootballIn October 2018, the Japan Professional
Football League Club "FC Machida Zelvia"
became part of CyberAgent Group. FC
Machida Zelvia began in 1977 when a local
boys' football team for elementary school
students was formed in Machida City, Tokyo
under the motto of "Born in Machida, Raisedin Machida, from Machida to the World."
After participating in the national
championships, a junior youth team (U15)and a youth team (U18) were formed, which
was followed by the formation of a top teamthen established in 1989.
Similarly to the club, CyberAgent has also
long focused efforts on recruiting,developing, and activating humanresources. From the standpoint of"developing human resources,” there is astrong affinity between the ideologies ofCyberAgent and FC Machida Zelvia that led
to the club being brought into the group.
Both companies share the common goals of
obtaining a J1 license as quickly as
possible, and by embarking on building thenecessary infrastructure for that, growing
FC Machida Zelvia into a top club born in
Machida, Tokyo and recognized around theworld.
Since July 2017, Cygames, Inc., asubsidiary company of CyberAgent, has
a l s o b e e n s p o n s o r i n g J u v e n t u s F. C .
(Juventus Football Club S. P. A.), an Italian
pro soccer league that plays in Serie A.

Golf
Since 2018 AbemaTV, Inc. has been sponsoring the AbemaTV Tour, which is a domestic mens
golf lower-level tour. With the goal of fostering young golfers, discovering raw talent, andattracting a viewing audience of wide demographics, we have been holding tournaments thatincorporate the unique strategies of "AbemaTV".

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Our commitment to environment
CyberAgent is making efforts to reduce environmental
burdens and maintain optimization in its operations tocontribute to preserving the global environment andachieving a sustainable society.

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Environment

Promotion of Digitalization
CyberAgent is working on digitalizing
internal documents, including costcalculations, invoices, and received faxes
to reduce the amount of paper used in
the office. By developing and providing“GEPPO,” a tool to assess employee
conditions and promoting digitalization ofvarious kind of documents related tobusiness transactions, we create anenvironment where each employee canfocus on their primary duties by preparing
an internal system.

Conversion of Studio Lights
into LED
CyberAgent reduces the environmental
burden by saving energy. An example is toadopt LED lights for the studio that
"AbemaTV" uses for shooting. LED emits
less harmful rays, such as heat rays andUV, and will also lead to cutting downstress found in shooting, like heat factors.

Security Protection and Recycle
Documents in the office are destroyedusing an exclusive recycling trash bin(Mamoru-kun) (Japan Purple Inc.) which
maintains confidentiality and recycling. In
FY2017, it contributed to saving 1,775.29
trees and around 51,146.3kg (12% down
compared to the same period previousyear) in carbon dioxide emissions annually.

ESG

Our commitment to environment69

04
CyberAgent, Inc. was founded in 1998.
Including subsidiaries, we currently have 85
offices in Japan and 8 offices outside Japan.

Company Overview

Company Overview

70Company History

Mar. 1998

CyberAgent, Inc. is founded in Minato-ku, Tokyo

Apr. 1999

Relocated headquarters to 3–5–30 Kita-Aoyama, Minato-ku, Tokyo

Mar. 2000
May 2000

CyberAgent is listed on Mothers section of the Tokyo Stock Exchange
Relocated headquarters to 1–12–1 Dogenzaka, Shibuya-Ku, Tokyo (Shibuya Mark City)
Established CA MOBILE, Ltd. to engage in mobile-related businessSep. 2004

Launched "Ameba Blog"

Apr. 2009
May 2009

Established "CyberZ, Inc." to enhance smartphone advertising business
Established "Sumzap, Inc." to enter the gaming business

May 2011

Established "Cygames, Inc." to enhance the gaming business

Jun. 2012

Launched "Ameba" (formerly 'Ameba Blog')

Jan. 2013
May 2013

Sold “CyberAgent FX, Inc.” (now YJFX, Inc.) and withdrew from the FX business
Established "CyberAgent Crowd Funding, Inc." (now Makuake, Inc.) to engage in crowdfunding services
Established "CA Tech Kids" to provide programming opportunities for elementary school students

Sep. 2014
Nov. 2014

CyberAgent is promoted to the First Section of the Tokyo Stock Exchange
Established "AWA Co. Ltd.," an equity-method affiliate, through joint investment with Avex Digital Inc. to provide music distribution services

Apr. 2015

Renewed the corporate and Ameba brand logos
Established "AbemaTV, Inc." through joint investment with TV Asahi Corporation to engage in video distribution business

Apr. 2016

AbemaTV, Inc. launches internet TV station "AbemaTV"

Oct. 2018

AbemaTV exceeds 34 million downloads just 2.5 years after its launchCompany Overview

Company History

71General Information

Company Name

CyberAgent, Inc.

Address

1-12-1 Dogenzaka Shibuya-Ku, Tokyo 150-0043
Susumu Fujita
March 18, 1998
7,203 million yen (As of the end of September, 2018)
4,988 (Consolidated, as of the end of September, 2018)
Media Business
Internet Advertisement BusinessGame Business
Investment Development BusinessPresident

Foundation
Capital

Employment HeadcountBusiness Portfolio

Kanazawa

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

Seoul

OkayamaKyoto

Beiing

SapporoSendaiTaipei

New YorkTokyo

NagoyaFukuoka

Osaka

Saga
Ho Chi Minh CitySan Francisco
Okinawa

Guam

Singapore* Main offices around the world including consolidated subsidiaries.

Company Overview

General Information72

Stock Information

Listed Market
Code

Number of Shares Outstanding
Number of Shareholders

First Section of
the Tokyo Stock Exchange
4751
126,426,600 shares
12,668Distribution of Shares
by Type of Shareholders
Treasury Stocks 0.5%
Securities Companies

3.5 %Domestic Corporations 0.4%

Financial
Institutions

Name

Number of Shares

% O/S

1

Susumu Fujita

25,909,600

20.5%

2

Japan Trustees Services Bank, Ltd. (Trust Account)

5,790,800

4.6%

3The Master Trust Bank of Japan, Ltd. (Trust Account)

4,580,400

3.6%

4

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

3,663,440

2.9%

5

THE BANK OF NEW YORK 133 524

3,393,000

2.7%

6

GOLDMAN SACHS INTERNATIONAL

2,786,500

2.2%

7JP MORGAN CHASE BANK 385632

2,701,690

2.1%

8JP MORGAN BANK LUXEMBOURG S.A. 385576

2,496,384

2.0%

9MSIP CLIENT SECURITIES

2,381,700

1.9%

10

Japan Trustee Services Bank, Ltd. (Trust Account 5)

2,294,900

1.8%*As of the end of September 201818.6 %
Foreign Institutions
and Individuals

Individuals, OtherTop Holders

Large Shareholding Report

48.6 %

28.6 %*As of the end of September 2018

Institution% O/S

Submitting Date

Baillie Gifford & Co

11.11%

April 21, 2015

JP Morgan Asset Management (Japan) Ltd.

6.80%

October 19, 2018

Tybourne Capital Management (HK) Limited

5.14%

October 29, 2018

Company Overview

Stock Information73

Investor Relations Activities

CyberAgent promotes understanding of its management policies and businessstrategies on its investor relations website through information disclosure, conference
participation, and interviews with institutional investors. In September 2018, it was
adopted as a constituent stock of the Nikkei Stock Average, and has now been included
in a total of six indexes including ESG indexes. Recognizing the importance of
disclosing information, CyberAgent is dedicated to continuing to improve its IR
activities.

FY2018 Summary of Activities

Inclusion in Indexes

Oct.
Results
Announcement

1Q

2Q

Nov. Dec. Jan.

Feb. Mar. Apr. May Jun.

● Full Year Results

Announcement●1Q Results

Announcement

3Q

Jul.

● 2Q Results

Announcement

Dividend● Pay out of year-end dividend

Shareholder'sMeeting● General Shareholder's Meeting

AnnualSecurities Report

4Q

Aug. Sep.

We are newly added to the Nikkei Stock Average (Nikkei 225), being part of six indexes
including two ESG indexes in total.

● 3Q Results

Announcement

Record Date

2014
2015
2017
2018

JPX-Nikkei Index 400
FTSE All-World Index
MSCI Japan ESG Select Leaders Index *MSCI Japan Empowering Women Index *MSCI Japan Index
Included in the 225 stocks that make up the Nikkei Stock Average● Submission of Annual Securities Report* ESG index

The number of institutional investors we met at the individual meetings :841 people

Earnings presentations:

4 times

Overseas roadshows:

1 timeCompany Overview

Investor Relations Activities

74

IR Awards

The All-Japan Executive Team 2018

CyberAgent was ranked in 1st place among "Most Honored Companies" in Institutional Investor magazine's
2018 All- Japan Executive Team Rankings in the internet sector, and also boasts awards in 10 other categories.

Most Honored Companies

1st place

Best CEO2nd placeSusumu Fujita - selected from buy-side and sell-side (second consecutive year in 2nd place)

Best IR Professional

1st place

Sonoko Miyakawa - selected from buy-side and sell-side (sixth consecutive year in top-3)

Best IR Programs

1st placeselected from buy-side and sell-side (second consecutive year in top-3)

Best ESG/SRI Metrics

1st placeselected from buy-side and sell-side (new category started this year)

Best Corporate Governance

1st placeselected from buy-side and sell-side (new category started this year)

Best Analyst Days

3rd placeselected from buy-side and sell-side (second consecutive year in top-3)

Daiwa Investor Relations 2017 Internet IR Awards

Our new corporate site, which was renewed in October 2017, was recognized with an Excellence Award from the
Daiwa Investor Relations 2017 Internet IR Awards (Daiwa Investor Relations)

Forbes Asia Fab 50

Chosen for 'Forbes Asia Fab 50' by Forbes as one of the Asia's Fab 50 Companies in September 2018 (third
consecutive year)

Japan Investor Relations Association's Awards

Chosen for ‘Companies with Greatest Improvement in IR,’ and ’ Companies with Best Continual Efforts in IR’ by
Japan Investor Relations Association as we have been evaluated highly by the committee and recognized for ourefforts to improve IR activities for twelve years from 2007 to 2018.

Company Overview

IR Awards Calendar

75

Strengthening Communication
with our Investor Website

The corporate site rolled out a new design in October 2017 to improve the company's
ability to communicate information with owned media and to ensure compatibility withall types of devices. In addition to earnings and financial information, we also
proactively communicate qualitative information on not only payment and financial
information, but also subjects like technological capabilities, competitive advantage,
governance, empowering women, and more.

IR Channel

Owned media: "FEATUReS"

Go to "IR channel"

Since 2016 we have released a total of 20 videos for our shareholders and investors.

Go to "FEATUReS"FEATUReS delivers articles on topics such as our distinctive systems, culture, and social
contribution.

3rd episode: "Exploring the Strengthof Internet Advertising Business"

4th episode: "CyberAgent froman Outside Director's Perspective""Three outside directors on initiatives
for strengthening governance""The new culture that female employees create
themselves"

7th episode: "Startup JJJ, a Framework
for Cultivating New Business"

16th episode: "Operational Advantage:
Our Ability to Create Long-lasting Hit Titles""Asset portfolio planning by a new graduate
infrastructure engineer"

Building the Future of Internet Advertisingwith Technology and Creative

Company Overview

Strengthening Communication with our Investor Relations Site

76

Disclosure Policy

Basic policy for disclosure
CyberAgent, Inc. (hereinafter called“the company” ) will swiftly provide
shareholders and investors with information
while emphasizing 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. At the same time, the company
provides prompt and proactive disclosureof material information which is not subject
to the timely disclosure regulations, that
could influence the investment decisions ofinvestors.

Method fordisclosing information
Information which is subject to the timely
disclosure regulations will be disclosed on
the website of the Tokyo Stock Exchange
through the timely disclosure network(TDnet), according to the regulations. The
released information will be uploaded to the
IR website of the company. The informationthat is not subject to the timely disclosure
regulations will also be released throughthe IR website of the company, to reachinvestors accurately and equally.

Forward-looking statements

Quiet Period

This website and other items the company

The company specifies the two weeks until
the release of financial results as a quiet
period to prevent earnings information
leakage and secure fairness. In this period,
the company refrains from answering
questions regarding our results and giving
relevant comments, except the case where
there emerge future-related informationand material fact that would influence
investment decisions considerably.

publishes may contain forward-looking
statements such as business forecaststhat made based upon the information
currently available which involves risks anduncertainties. There can be no assurance
that forward-looking statements will prove
to be accurate or achieved, as actual
results may differ materially from thoseanticipated in such statements.

Company Overview

Disclosure Policy77Forward-looking statement, Contact

Contact

Forward-looking statement

IR&SR Division
CyberAgent, Inc.

The future information, such as earnings forecast, written in this document is based on our
expectations and assumptions as of the date the forecast was made.
Our actual results could differ materially from those described in this forecast because ofvarious risks and uncertainties.

Investor Inquiries

CONTACT US

Download Fact Sheet

Excel

Company Overview

Forward-looking statement, Contact

78