CyberAgentWay
CyberAgent, Inc.
TSE4751

Integrated Report
December, 2021

CyberAgent believes that there can be no sustainable growth without
innovation. We have created a variety of new businesses with our ability

to adapt to change while creating a unique corporate culture through anumber of creative internal initiatives.

However, Japan is facing a declining birth rate, an aging population, andan economy that has been sluggish since the bubble economy burst.
The situation has become even more uncertain with the recent COVID-19

pandemic, and many social issues, such as poverty due to inequality,
have come to the fore and the sense of stagnation is growing.

What can CyberAgent do in such an unprecedented time? In 2021,
we reaffirmed in words what our intention has been since our inception.
We will continue to do our best to create businesses that keep pace withthe changing times and use our experience, technology, and creativity as
an internet company to drive society forward.

[Left]

Masaru Watanabe
Chief Development Officer ofKiwami Prediction AI,
AI Business Unit
[Right]Yugo Tsutsumi
Consultant, Medical DX Headquarters
MG-DX, Inc.

Sari Tsugawa
Project manager,
BanG Dream! Girls Band Party
Craft Egg, Inc.

The Ideas Behind
CyberAgent′s New Purpose"To Break Through Stagnation with
New Power and the Internet"

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CyberAgent announced that it had defined a new "Purpose" that clearly states the

Koichi Nakamura

significance of its existence, "To break through stagnation with new power and the internet,"

Koichi Nakamura joined Japan Recruit Centre Holdings(currently Recruit Holdings Co., Ltd.) in 1981.
Following positions including General Manager, Recruitment
Development Department; General Manager, Central Sales
Department; General Manager, Agency Business Department;
and General Manager, Tokyo Metropolitan Human Resources
Comprehensive Services Department, he became a Director in1999 and Vice President in 2008. Following his appointment in2012 as Director and Executive Advisor, he became an
Outside Director at CyberAgent, Inc. in 2016 (current position).

on October 5, 2021. In this article, President & CEO Susumu Fujita and Outside Director
Koichi Nakamura discuss the background to creating the purpose and the ideas behind it.

Background to the new purpose-

Fujita: I became interested in creating a purpose due tothe increasing trend among companies to emphasize theircontribution to society, as seen in developments such as ESG
investment and the SDGs. When I spoke with employees, I
sensed that they had a strong desire to feel they were doing
good for society through their work.
At CyberAgent, we make internet advertising more transparent
in the ads business and helping many industries to digitalize.
ABEMA has grown as a new information platform for thesmartphone age, and we are taking on new challenges in
sports betting services such as WINTICKET. But I could feel
that, while we were entering new businesses and expanding
the company, some employees must wondering how
CyberAgent supports society.

We run several businesses and initiatives to benefit society,such as CA Tech Kids and Makuake. Still, I began thinking
that we needed to clarify what CyberAgent commits tosociety.
Nakamura: Looking back at Japan's economy, companies
created social value by earning profits in the high growth
period. In other words, when companies sold products
and services, they met consumer demand, improved living
standards, and were able to pay stable salaries to workers.

However, after the bubble economy burst, the interests ofstakeholders were no longer aligned. And young people'svalues have become more diverse, for example, placing
importance on non-economic values. With such changes,
people began to ask why companies exist and develop theirbusinesses within society.

Fujita: We started with an internet business, and ourbusinesses expanded rapidly. Up to now, growing ourbusinesses has been aligned with the interests of our
stakeholders. Many of our employees were motivated in theirwork based on this dynamic. But considering the current
size of the company and the world's situation, I felt that now
was a good time to create our purpose.

How the purpose benefits the management of thecompany-

Nakamura: The most significant benefit is sustainablegrowth. Focusing on social issues in its activities rather thansimply pursuing profit will gain trust and empathy from its
stakeholders – the employees, users, and shareholders. That
will improve brand recognition and loyalty and ultimately
increase profits. The critical point is identifying business
opportunities in the intersection of purpose and economic

value and taking strategic actions to achieve
long-term growth.
If I take Recruit as an example, experiencing
the scandal forced us to discuss the reason forthe company’s existence and re-established thecurrent management philosophy. At that time,
we didn’t have a defined purpose.
What grew out of that was the concept of“resolving difficulties.” These difficulties included
the unease, dissatisfaction, and inconvenience
faced by consumers. Recruit has decided its
social value is to resolve the problems of society
through creating unprecedented information
value by applying its management resources
and capability. Then it has evolved into today’s
purpose, “Opportunities for Life.”
By setting the standard concept of “resolving
difficulties,” employees started to think about
why certain issues existed, the causes, and how
they could resolve those. This resulted in new
businesses such as Zexy and also had a big
impact on hiring.
Fujita: I once participated as a judge in a new

business plan contest at Recruit, and I rememberthat everyone was actually speaking about"resolving difficulties."

The ideas behind the purpose and the way-

forward
Fujita: We started discussions about six months

ago. The purpose was the first topic for theboard meeting in which all outside directors
participated following the shift to the current
management structure. We listened to detailed
stories of how Recruit created its management
philosophy.
In the development process of the purpose, wewere trying to make it something that came fromthe bottom of our hearts, not just something
nice. A company's basic premise is to makeprofits, pay taxes, and create jobs, and I wasagainst making something that sounded false or
hypocritical.

We came up with several candidates from thevalues that have been rooted in CyberAgent.
During the discussions, Mr. Nakamura commented
that he liked the phrase "breaking through thesense of stagnation in Japan with young power
and the internet."
Nakamura: It is socially meaningful for young

people to play an active role in a stagnant
society, and I felt that these are the words that
represent CyberAgent's character and source ofenergy.
Fujita: It was also my favorite. Since the beginning,

I have always believed that our commitment tosociety is to break through the sense of stagnationin Japan using the internet. For example, we areinnovating TV at ABEMA. But at the same time,
Innovations can create friction and sometimes
make people rather conservative, so I hope that
we will not forget our aspirations, which is theorigin of CyberAgent.

Fujita: However, I wasn’t too happy with thephrase “the power of youth” right up until the end,
as CyberAgent is a company where both young
and experienced employees are energetic. So
when Mr. Nakamura suggested we can change
it to “new power,” I agreed immediately. Because
the idea didn’t refer just to young people, but
to anyone who can use new technology andconcepts. This is how we came up with the
purpose “To break through stagnation with new
power and the internet.”
To fulfill our vision "to create the 21st century's

leading company," we have developed a mission
statement, which is our basic code of conduct,
and these principles will remain unchanged in
the future. The newly defined purpose reaffirms
our spirit and our role in society.
I believe that when each and every employee isable to match their work and the businesses andservices they are involved in with their Purpose,
reaffirm the role they play, and talk about it, thenthe Purpose will take on full meaning.
With Purpose as our central focus, CyberAgent
will continue to take on further challenges.

01
02
CyberAgent Way 2021

Contents

03
04

05

Purpose009

How We Create Value

018

History of Sustainable Growth025

Technology and Creativity at CyberAgent

029

Value Creation Strategy

051

Our Business Model

057

Media Business

063

Internet Ads Business

078

Games Business

085

Risks & Opportunities

091

ESG

100

Corporate Governance103

Social Responsibility

111

Healthy Workstyle112

Our commitment to the Sustainable Development Goals (SDGs)

116

ESG Data

126

Facts

130

Financial Information

133

Company Overview

139

CEO
MESSAGECEO Message

Under our vision "to create the 21st century's leading company," we have worked to expand the business in the
fast-changing internet industry by honing our ability to 'adapt to change' and drawing on our advantages in 'talent,''technology' and 'creation.'
Taking the opportunity that ABEMA celebrated its 5th anniversary in 2021, we redefined it as the new TV for the future thatbrings the best of TV to the internet. The number of downloads reached 73 million, and it has achieved a record high of 18
million weekly active users by updating its User Interface and continuing to expand the content. There is a high level ofaffinity between ABEMA and sports betting service WINTICKET, and monetization diversification strategies have brought
it to the phase of operating loss improvement.
Despite the impact of the COVID-19 pandemic on the industry, CyberAgent's internet advertising business performed wellwith a high rate of revenue increase, achieved a higher growth rate than the last four years by the operational capabilities
and successful implementation of technologies, including AI. We also succeeded in boosting earnings in the gamebusiness due to new titles becoming major hits.
With all these businesses performed well, we issued two upward revisions in the fiscal year ended September 30, 2021,
with net sales increasing by 39% from the previous fiscal year to 666.4 billion yen and operating income tripling from theprevious fiscal year to 104.3 billion yen. We feel that this demonstrates that our performance level has reached a new level.
We have started applying our knowledge and technological capabilities in the digital domain, promoting DX to help solve
social issues.
Following in the footsteps of our internet advertising and game businesses, we will continue to develop media businesses
centered on ABEMA, and pursuing sustainable management purposed towards "breaking through Japan's sense ofstagnation through new capabilities and internet-based strategies."
Thank you for your continued support of CyberAgent.

Susumu Fujita
Representative Director
CEO, President
CyberAgent, Inc.

How We
Create Value[Left]Maako HokinouePlanner, AI Creative DivisionInternet Ad Business[Center]

Mayu Ohata
Manager, Cosmetics Sales GroupInternet Ad Business[Right]Kazuki Asano
Account Planner, Sales DivisionInternet Ad Business[Upper Left]

Rikuto Takeda
Designer, WinTicket, Inc.
[Upper Right]

Yuto Suzuki
Director, OEN, Inc.
[Lower Right]

Haruka Ito

Designer / Art Director,
AbemaTV, Inc.

023

H o w We C re a t e Va l u e

01

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

024

CyberAgent's Value Creation Model

Risks

Superior
CreationH o w We C re a t e Va l u e

01

Sustainablebusiness
growthTo createthe 21st century's
leading company

Adaptability
tochangeSuperior
Technology

Contribution
to localcommunities
Superior
TalentExternal
Environment

025

H o w We C re a t e Va l u e

01

History of
Sustainable Growth026

A journey to sustainable growth

10-yeargrowth rate of
consolidated sales:

H o w We C re a t e Va l u e

01

approximately

Consolidated sales/sales composition ratio*

Since our foundation,
we have been able to adapt tochanging circumstances andtechnological innovations
to diversify our business andincrease revenue.

Internetadvertising

Ameba 16 %Internetadvertising

49 %

5.6

Media 12 %times

666.4Byen

46 %FY2021FY2011GamesMedia related

38 %

28 %

Forex

6%

Investment
development

Investment
development

0%

Other 1%

3%

119.5Byen

Founding period
FY2000Smartphone shift period

ABEMA/AI investment period

FY2011

FY2021
ABEMA

Games
Media
Internet advertising
Entry to AI/DX* Sales composition ratio: Calculated from sales by segment (before deduction of intercompany profit) as disclosed in the annual securities report

027

A journey to sustainable growth

H o w We C re a t e Va l u e

01

Stock price trend comparison *FY21
Market Cap

Consolidated OP

We have identified
growth industries andare building profits to continue
to increase the value ofour business.

1T yen104.3 Byen

Three-foldincrease

18 timesOver

15

compared toprevious year

33.8B

10

yen

FY20 FY21

5

Nikkei Stock Average

0
FY2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

* Stock price trend comparison: CyberAgent stock price and the Nikkei Stock Average, using March 2000 as 1

2013

2014

2015

2016

2017

2018

2019

2020

2021

028

A journey to sustainable growth

Record consolidated
performance after
two upward revisions

H o w We C re a t e Va l u e

01

Net sales +39.3% YoY666.4B yen

Group structure that
adapts to changes
Number of
consolidated companies:

Established/acquired:

Operating profit 3.1x YoY

FY2021 Highlights

104.3B yen
ABEMA

73M

Merger/withdrawal:

105
6
8

Internet advertising business
Higher income than in
the previous four years

downloads

19.3%

August 2021
Record-breaking WAU*2

Customer adoption rateof AI products*3

18.25M

Over

Number of officers
and employees

6,089(Male 67% Female 33%)

Percentage of womenin management positions

20%

*1

Uma Musume Pretty Derby *4
Major hit starting in
February 2021

80%

*1 CyberAgent non-consolidated *2 WAU: Weekly Active Users*3 Over 80%: Adoption rate of advertisers able to introduce AI products, such as display ads and search link ad placements, as of Q4 FY2021*4 "Uma Musume Pretty Derby": ©Cygames, Inc.

September 2021

Achieved

10M

downloads

029

H o w We C re a t e Va l u e

01

Technology and Creativity
at CyberAgentSuperior Technology ofAI

Superior Creation of
Digital Transformation

Creativity ofGame Business030

H o w We C re a t e Va l u e

01

Technology and Creativity at CyberAgent

Technology is the cornerstone of internet companies' competitiveness. CyberAgent not only provides“ABEMA,” the new TV for the future, “WINTICKET,” a sports betting business, and numerous smartphonegames, but is also engaged in a wide range of AI-driven advertising products and creatives. The numberof engineers and creators at CyberAgent has grown from 764 in 2011 to 2,549 in 2021, and by fostering aculture of freedom and open-mindedness with each development team given broad discretionary power,
we have built up a technical organizational structure that allows everyone to cross-organizationally share
their accumulated knowledge and development assets to achieve synergistic effects.

2,549

Organization comprises 2,549
engineers and creators, accounting
for 43% of the staff body
764

42.9%

36.6%
End of September 2011

End of September 2021

031

AI Technology
In 2011, CyberAgent established Media Data Tech Studio,

AI/Data Technology Engineer Attributes

an R&D organization that specializes in large-scale dataprocessing, data analysis, and machine learning. In 2016,42%

we also established AI Lab, a new R&D organization
aimed at researching and developing a wide range of AI
One of CyberAgent's strengths lies in its ability to put

31 %
21 %

20

58%

17 %

10
New graduate hire
Mid-career hireinnovative AI-based creative production process

31%

0

ML
Engineer

Data
Researcher
Data
Scientist
Engineer

Other

Area of Expertise
34%

35
30
25

ic s

o

g
or

m

at

in
er

ne

en

oi
Bi

nc
na
Fi

nf

ic s

di

Au

gi

er

ys

ine

Ph

I

es

HC

c ie
ls
c ia
so
al

ion
at
ut
mp
Co

nc

in
rn

ea

tl

en

em
rc
fo
in
Re

3% 2% 2% 2%

ng

a

g

em

di

st

me

sy

lti

al
rr

fe

Mu

P

ic s

NL

om

on
Ec

re
fo
In

g
el

ea

rn

Have not submitted papers

CV

0
in

Have submitted papers

ing

5% 4% 4%

i al

7%

5

ee

9% 8%

ar

11%

ftw

15
10

in

69%

20% 19%20

So

Academia
submissions

chadvertising we deliver creative expressions through our

39 %

30

Hiring format

research to practical use, connecting AI technologies toadvertising, through our aim to realize highly effective

43 %

50
40

technologies related to all aspects of digital marketing.

actual business results. Especially in the domain of internet

Occupations(including multi-roles)

Ma

H o w We C re a t e Va l u e

01

032

Technology and Creativit y at CyberAgentAI Technology

H o w We C re a t e Va l u e

01
NaturalLanguage
Processing

Major Areas of AI/Data
Technology R&D

CyberAgent conducts research and development in a wide
range of fields that include natural language processing, datautilization platforms, machine learning, and large-scale dataprocessing platforms. Through initiatives such as compilingtechnical information into a database and making it accessible
online, and by proactively sharing technical knowledge built up
in several business areas and promoting cross-departmental
and cross-occupational exchange between engineers, weare committed to further boosting technical capabilities andbusiness growth.

ComputervisionDatautilization
platform

Machinelearning

Data
analysis

Large-scale
data
processing
platform

Other

Info
referral

033

Technology and Creativit y at CyberAgentAI Technology

H o w We C re a t e Va l u e

01

AI LabIn the field of AI which one of CyberAgent's corecompetencies, R&D papers from AI Lab, a research anddevelopment organization engaged in utilizing a wide rangeof AI technologies, have been chosen for presentation atsome of the top conferences including NeurIPS, AAAI,ICML, and CVPR, the most prominent international scientificforums on AI. Our R&D system and achievements havegarnered high acclaim, being selected as one of the top 7
Japanese companies (66th worldwide) in the "Top 100 Global
Organizations (Industry & Academia) Leading in AI Researchin 2020."※ Gleb Chuvpilo: AI Research Rankings 2020

Strengths
Point 1AI Lab's advanced research system covers a wide range of research fields

Point 2

Joint research with universities engaged in cutting-edge research and "academic
contribution" through the publication of papers

Point 3

"Implementation capabilities" that connect AI to actual business results

034Technology and Creativit y at CyberAgentAI Technology

H o w We C re a t e Va l u e

01

Applying Various
Technologies to Business

AI Lab utilizes technologies centered on "Creative Research,""Virtual Interactive Customer Agents," "Econ (economics),"and "HPO (Hyperparameter Optimization)" for AI-based
advertising distribution, effectiveness assessment, and DX
promotion.

Virtualshooting

Businessapplication

The Four Areas

HPO/
Hyperparameter
Optimization

Ad
Distribution Predicting×
effectivenessAI×CGproduction
×AI
Automatic
generationof text andimagesCreative
Research

Digital humans

AI

Econ
(economics)
Government×
DX
Medicalindustry×
DX

Retail industry
×DX

Virtualinteractive
customer
agent
Support for
AI dialogue
andcustomer
services

Businessapplication

035

Technology and Creativit y at CyberAgent

H o w We C re a t e Va l u e

01

Kyoto
University

Osaka University

Professor

Hisashi Kashima

Professor

Hiroshi Ishiguro

Joint Research with Universities
Engaged in Cutting-edge
Research

Virtual interactive agents

Makoto Yamada

Professor

CG model generationfrom images
Attribute assignment
from images

Kansei Gakuin
University

Associate Professor

Yusuke Narita

Automatic generationof natural sentencesin adsKeio University
Professor

Inui Kentaro

Experimental system design
Causal machine learning

Research on general
purpose task
oriented interactive
dialogueTokyo Metropolitan
University
Associate Professor

Waseda University

Tokyo Instituteof Technology
Naomi Okazaki

Associate Professor

Mamoru Komachi

Edgar Simo-Serra

Correction of speech
recognition
results based on
factoring in domain

Automatic ad creative
generation process

Professor

Recommending routes via
simple mapbased ona user's behavior
history

Robot motion generation/
Robot surroundings
recognition& prediction

Yuki Okafuji

University ofTsukuba

Kyushu University
Professor

Seiichi Uchida

Automated
3D CG model cleaning

Recognition andrecommendationof specially-designed fonts

National Institute ofAdvanced Industrial
Science and Technology(AIST)
Chief Researcher

Copy generation using
in-image features

Senior Researcher

Masataka Goto

Kosetsu Tsukuda
Speech research

Nagoya Instituteof Technology

Professor

Feature analysis and automatic
Generation of advertisement
catch-phrases

National Instituteof Informatics
Professor

Associate Professor

Yoshihiro Kanamori

Associate Professor

Hideki Nakayama

Professor

Mr.

Ad creative
selection algorithm

Ritsumeikan
University

University ofTokyo

TohokuUniversity

Tatsuhiro Hoshino

Assistant Professor

Kazutoshi Kakutani

Hanjuku-kaso
Co., Ltd

Daiya Takamura

Research on analysesof spatial behavior
data

Waseda University

Professor

Manabu Okumura

Associate Professor

Shigeo Morishima

AI Technology

Tokyo Instituteof Technology

Shinichi Sato
Prediction of ad creative
effectiveness that factors
in external knowledge

Nagoya University

Nihon University
Assistant Professor

Masahiko Osawa

Akinobu Lee

Professor

Tomoki Toda

Optimizing task completion
rates in voice-interactive
systems

Advice for speech synthesis

User behavior modification
using cognitive
dissonance resolution
in human-agent interaction

Professor

036

Technology and Creativit y at CyberAgentAI Technology

H o w We C re a t e Va l u e

01"Implementation Capabilities"
that Connect AI to Actual
Business Results
In our internet advertising business, we currently offer a rangeof AI-driven products that have been successively launched.
These include "Kiwami Prediction AI"; "Kiwami Prediction
TD"; "Kiwami Prediction AI Human" which combines 3D datawith CG; "Kiwami Prediction LED"; and "Digital Twin Label"
which creates and manages 3DCG models to support theentertainment industry with digital spaces.

Kiwami Prediction AI

Kiwami Prediction TD

Kiwami Prediction AI Human

Uses AI to create highly-effective ad creative
work Adopted by 81% *2 of advertisers *1

Uses AI to automatically generates searchadvertising text Adopted by 80% *2 of advertisers *1

Uses AI to generate AI models able to deliver
highly-effective ads Successfully delivered toover 600 people *2

Kiwami Prediction LP

Kiwami Prediction LED

Kiwami Prediction Trimming

Uses "Effectiveness Prediction AI" to create
landing pages whose predicted ad effectivenessis high even before the page is deployed

Uses AI to predict effectiveness in real-time,enabling the shooting of highly effective
creatives to continue seamlessly

AI-driven batch production of images with highpredicted CTR values for each targeted search
keywordMIRAINAGE "Retail Feed"

Digital Twin LabelAI Messenger for Voice

Uses AI to mass generate creatives for digital
signage

Produces official 3DCG models of celebrities
with AI-driven visual expression technology

An AI voice-interactive system that automates
the work of handling phone calls*1 Advertisers: Advertisers capable of introducing AI products, such as in display advertising and search advertising placements*2 FY2021 3Q

037

Technology and Creativit y at CyberAgent

01

AI Technology

H o w We C re a t e Va l u e

At AI Lab, an R&D lab that studies AI technology,
I'm currently conducting research aimed atanalyzing and automatically generating video
ads. Specifically, my research is in the field ofvideo summarization and collaborating with
university researchers to study paraphrased
expressions, the results of which are being
presented as research papers.
This year, two papers that I co-authoredhave been accepted for the top international
conferences. At ACM Multimedia 2021 *1, ourpaper that proposes an optimization method
for constraint-aware layout generation has
been received. Another paper that presents anapproach to enable highly-accurate ranking
learning for large-scale info referral systems
has been accepted for SIGIR 2021 *2.

Researcher's
Eyes

CyberAgent's Research Environment
from a Researcher's Perspective

Mayu Otani Research Scientist at AI Lab
Mayu Otani joined CyberAgent in 2018 after completing the doctoral program at the Graduate School ofInformation Science, Nara Institute of Science and Technology. She is currently engaged in researching
how video content is understood such as video summarization.

*1 "ACM Multimedia" is one of the foremost conferences in themultimedia field
https://2021.acmmm.org/*2 "SIGIR 2021" is one of the most prestigious international
conferences in the field of info retrieval and referral systems
https://sigir.org/sigir2021/

Conducting research meaningful to bothacademia and social implementation
Business data on digital advertising differs

greatly from the data found in academic
research as it deals with edited video and image
data in a mixture of text, images, and video.
The application of technology corresponding
to multiple domains such as language andvideo is highly interesting. It is also quite
profound in terms of when considering how
these applications will be used in the realworld.
CyberAgent's advertising business, whichholds the largest market share in Japan, hasbuilt up a massive amount of practical data,
and I find it rewarding to utilize this data tosolve business challenges and engage in
research themes with academic significance.

Able to conduct interdisciplinary researchutilizing a broadly developed business
range
CyberAgent's broad range of businesses iswhat makes it possible to conduct a varietyof research at AI Lab. In addition to computer
vision, which is my research subject, we haveresearchers engaged in a wide range of fields
that include machine learning, economics,

038

AI Technology

H o w We C re a t e Va l u e

01

Technology and Creativit y at CyberAgentnatural language processing (NLP), as wellas Human-Computer Interaction (HCI) which
studies the interaction between humans andcomputers through cognitive psychology andother methods.

a wide range of outputs in everything fromproduct improvements to academic researchand OSS development. I mainly focus on
writing papers through academia-industry
cooperation.

Last year, I collaborated with members
researching the areas of NLP, economics,
and referral technology. Our co-authoredpapers were even accepted to "The Web
Conference 2021" and such. In the future, I
hope this kind of interdisciplinary research, inwhich researchers from different fields work
together, becomes one of the specialties of
AI Lab since the researchers work close toeach other even though they are engaged indifferent research subjects.

Although there are goals for my papers, since
there is no pressure to meet a certain quota,
I'm generally able to conduct research at
my own pace. Given the fact that researchis highly unpredictable, I believe that anenvironment where people can work at theirown pace is ideal for researchers.

Research can be conducted at your own
pace
While AI Lab is a corporate researchorganization, we don't only think about theimmediate effects on business. Our scopealso includes a broad range of activities
that can be expected to bring value to theadvertising field from a medium- to long-term
perspective. To date, AI Lab has achieved

Also, since I'm not currently experiencing
any work-impacting events like childcare orparent caregiving, my work life is generally
stress-free. People have become quickly
acclimatized to remote work, and the company
has an atmosphere that is relatively flexible interms of working style.
Since joining the company, I've neverexperienced the problems you commonlyhear about women entering the workforce.
Overall, I feel that this environment allows me
to concentrate on my research, be myself,
and grow.

039

Development Advantages of DX

H o w We C re a t e Va l u e

01
CyberAgent is promoting Digital Transformation (DX)to solve social issues in the fields of retail, healthcare,government, and entertainment by applying our knowledge
and technical capabilities in the digital domain. In theretail industry, CyberAgent not only provides support
for data-driven marketing and advertising businessrealization, but also the media integration of stores thatuse signage and AI cameras. In the public sector, we
provide support for streamlining administrative procedures
through AI as well as support for digitization, including the
proposal, operation, and execution of measures that utilize
economic knowledge. In the medical field, we promote
DX in drugstores and pharmacies with a particular focus
on delivering medication guidance online. Meanwhile, In
the entertainment industry, we help realize the generationof new revenue sources, such as the hosting of live
performances online.

Strengths
Point 1

Organizational structure includes over 300 DX specialists

Point 2

Extensive knowledge and technologies in the digital domain

Point 3

Advanced R&D capabilities in AI technology

040

Technology and Creativit y at CyberAgent

H o w We C re a t e Va l u e

01

Retail industry

Government

Utilizing technology and data to realize a new purchasing
experience that fuses the digital and realSupport for the digitalization of virtually any administrative
procedure

We provide marketing support that utilizes purchase data and member
information, as well as support for the media integration of shops and creationof advertising business that takes advantage of available data. We also offer
integrated support for price optimization and forecasting based on economics.

We have been involved in building convenient and highly satisfactory services
for residents while keeping costs down, including our Coronavirus Vaccine AI
Phone Agent, an automated AI-driven phone response service dedicated tohandling inquiries and reservations for the COVID-19 vaccination.

Strengthening
Our DX Business

Development Advantages of DX

AI researchorganization

We are developing our DX business in a wide rangeof fields by taking advantage of our accumulated
knowledge and technological capabilities.

Development

DX

Engineeringorganization

Research

Advertisingbusiness

Business

Medical industry

Entertainment

DX implementation at pharmacies and drug stores

Driving the digital shift and helping to create new revenue
opportunities

We provide digitalization support services for medical institutions to facilitate
online booking of medical appointments, appointment management, and evenonline medical treatment. We also offer digitalization support services forpharmacies and drugstores from booking the appointment needed for online
medication advice to checking prescriptions and giving medication advice.

Including the live streaming of artists, we promote DX for monetization in theentertainment industry in everything from sports to martial arts, theater, andmore. We also provide support for the creation of new revenue opportunities,
such as for setting up official fan communities capable of fan-participative live
streaming without the need for planning, preparation, or streaming equipment.

041

Technology and Creativit y at CyberAgent

Development Advantages of DX

H o w We C re a t e Va l u e

01
Collaborative
Initiatives that
Leverage DX

Promoting DX in retail anddistribution companies

Consumer Electronics StoreYAMADA DENKI

In-store DX AWL x SATUDORA

Provides solutions such as “Next-Gen Smart
Advertising Platform" with NTT Communications
Corporation

With YAMADA-DENKI Co., Ltd. we provide"Yamada Digital Ads," an official advertising menu
that utilizes original purchasing data.

Card Transaction Data

Purchase Data

In-store retail advertising

Established CASM, Inc. with Credit Saison Co.,
Ltd. to provide solutions utilizing card transaction
data.

Together with ITOCHU Corporation, FamilyMart
Co., Ltd. and NTT DOCOMO, Inc. we established
Data One, Inc. to develop an advertising businessthat utilizes the purchase data of retail businesses.

As an approved partner of LINE POP Media,
we support installing a beacon and delivering
advertisements in retail stores.

Partnering with AWL, Inc. and SAPPORO DRUG
STORE CO.,LTD. to support promotion of DX inretail stores using AI cameras.

042Technology and Creativit y at CyberAgent

H o w We C re a t e Va l u e

01

・Fukui prefecture introduced AI voice-interactive services for inquiries onroad regulation first in Japan.

Examples of Digitalization at
Government and Municipalities

Development Advantages of DX

・Mie prefecuture utilizes an AI Phone Agent for call center after-hour
operations to handle COVID-19 vaccination calls

多摩市

・Tama city automated over-the-phone reservations using the COVID-19 AI
Phone Agent, an AI-driven telephone support service first in Japan.
・In a joint research initiative with the University of Tokyo Market Design Center,
CyberAgent launched a proof-of-concept experiment with Tama City, Tokyo
to coordinate daycare center use

・In a joint research initiative with the University of Tokyo Market Design Center,
CyberAgent launched a proof-of-concept experiment on digitalizing daycare
center procedures and improving the algorithm for coordinating daycare
center use.

043

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01
Through the continuous release of hit titles and extensive operational
advantages, CyberAgent has grown its game business to the largest
market share in Japan's smartphone game market. Behind this is
the mindset of all staff, including the management team, to nevercompromise on quality, and also CyberAgent's work environment
which enables cooperation beyond the confines of subsidiaries,
culminating in better game quality and technology while also
facilitating the recruitment of highly-capable staff.
The combination of CyberAgent's leading-edge game development
environment with the latest equipment, world-class creativity, andextensive operational advantages have enabled us to produce astring of hit titles that include not only our own original IPs, but also
prominent IPs developed in collaboration with partner companies.

Strengths

Point 1High successful rate of new game titles

Point 2

Operational capability to achieve long-term hits

Point 3Collaborative work among subsidiaries© Cygames, Inc.

044

Technology and Creativit y at CyberAgent

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01© Cygames, Inc. © BanG Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved.
© 2020 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Applibot,Inc.

045

Technology and Creativit y at CyberAgent

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01

Cygames, Inc.

Here we would like to introduce the development advantagesof Cygames, which celebrated its 10th anniversary in 2021.
This company continues to release hit titles that range
from "Rage of Bahamut" to "Granblue Fantasy", "Princess
Connect! Re: Dive," and "Uma Musume Pretty Derby."

VISIONTo create the best in entertainment

046Technology and Creativit y at CyberAgent

The accumulated numberof downloads

H o w We C re a t e Va l u e

01

11M

Cygames History*32,956*4

Creative Advantages of Our Game Business

Made flaggs, Inc. a subsidiary.

2,355

Cygames has grown from a staff of just five when it began
in 2011, to 2,956 in April 2021. It has also grown to become
one of Japan's leading game makers. To "create the bestin entertainment," Cygames is aggressively investing in its
development environment.

Consumer Business Unit launched.

The accumulated numberof registered users

29 M

*2

1,595

The accumulated numberof registered users

5M

*1

929
770

*1 As of July 15, 2016
*2 As of October 14, 2021
*3 As of October 29, 2021
*4 The number of staffs as of April 1, 2021.
©Cygames, Inc . © 2014-2019 ARMOR PROJECT/
BIRD STUDIO/SQUARE ENIX All Rights Reserved.
©Developed by Cygames, Inc. Published by
SQUARE ENIX ©BANDAI NAMCO Entertainment
Inc. Developed and operated by BANDAI NAMCOEntertainment Inc. and Cygames, Inc. ©Nintendo /Cygames Pubished by Nintendo

Cygames Saga Studio launched in 2020.

Anime Business Unit launched.
Rights Business Unit launched.

Motion Capture Studio launched.
Cymusic, Inc. founded.
Cygames Taiwan Inc. founded.
Cysharp, Inc. founded.

Scan Studio launched.
Overseas Business Unit launched.
Cygames Korea Inc. founded.
Saga Debug Center launched.
Manga Business Unit launched.
Cygames Research launched.
CygamesPictures, Inc. founded.
Made Kusanagi, Inc. a subsidiary.

ountries and regions
where services are available

More than180

CyDesignation, Inc.
founded.

No. of staffs

5

Cygames, Inc. founded.

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

047

Technology and Creativit y at CyberAgent

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01
Unparalleled Game
Development
Environment
Body scanner

Motion Capture Studio (Osaka)

Face scanner

Cygames' Saga Building

Cygames' Scanning Studio is fully equipped with a bodyscanner and face scanner to quickly create 3D models fromrecorded images, while its Motion Capture Studio is able
to convert video-captured actor movements into 3D data
motions. The company has expanded its development bases
to Osaka and Saga, establishing an environment where it candeliver the best entertainment even from regional cities.

048

Technology and Creativit y at CyberAgent

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01

World-classCreativity

One of Cygames' biggest strengths is the artwork createdby its talented illustrators and designers. We also own
CyDesignation Inc., home to some of the best designers in
the industry in addition to a variety of other subsidiaries that
produce high-quality creatives.

© Cygames, Inc.

049

Technology and Creativit y at CyberAgent

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

01© Cygames, Inc.

© Cygames, Inc.

Creative Advantages of Our Game BusinessH o w We C re a t e Va l u e

050
Technology and Creativit y at CyberAgent01© Cygames, Inc.

02
Value
Creation
StrategyFISHBOY

CyberAgent Legit
DIRECTOR

Minami Inoue
Executive Officer / N organic Brand
Manager, SIROK,Inc.

Naoto Hayashi
Promotion unit, GCREST, Inc.

Va l u e C re a t i o n S t ra t e g y a

057

02

Our Business Model

058

Our Business Model

Va l u e C re a t i o n S t ra t e g y

02

Medium- to Long-Term Operating Profit Overview

Past Performance

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

With the spreading popularity of smartphones, we intensified our second upfront
investment period from 2011. We have shifted from PC and mobile phone-related
services to smartphone business, which now accounts for some 90% of ourconsolidated sales.

The 2021 Level Up Top Publisher Awards

CyberAgent's
Growth Strategy

RankedRankedin Japanworldwide

3rd

Investment inVideo content
business

Investment in
VideoMedia content
Businessbusiness

We have launched new businesses in stepwith the evolution of the internet industry,
Investment in Investment inand strengthened upfront investment while
Smartphone
Smartphonebusinessbusiness
existing businesses were still strong. By
GameBusinessmaturing new businesses into future pillars
Investment in Investment inof our business strategy, we have been blogs
blogs
able to achieve sustainable growth.

AD
Business

25th

Media
Business

Game
Business

AD
Business

Source: appannie.com "Top Publisher Award
2021"
Total revenue on App Store and Google Play inJapan in 2020

Source: appannie.com "Top Publisher Award
2021"
Total revenue on App Store and Google Playin Japan in 2020

前回提出ページ059

Our Business Model

Br
oa
dc
as
t

Va l u e C re a t i o n S t ra t e g y

02

Profit

sp

ac

es

Cash

s

AB

f

and others.

Sales

OutcomeSocial value
Creation of new industries
Employment promotiont

New information infrastructuresso

N organicleTappleAd

Economic value

operat ion

les

ABEMA
Ameba

u

Ad placementsa

Outcomeand others.

rs

Synergy
Ad

NieR Re
carnation［in］

i tal ads

Media
Businesstr aPrincess Connect! Re: Dive

Dig

At

Sa

CyberAgent‘s main focuses are on media,
internet advertising and game businesses.
In each of these, we are expanding ourbusiness by using our operational andtechnical advantages as a competitiveedge, also leveraging our strengths incontent production, customer attraction,marketing, and sales to generate moresynergies.

t

n
te

n
Co

c
ct

Granblue Fantasy

me

sto

Marketing

CyberAgentBusiness Model

s
on
ati
im
an

Game
Business

es
n gam
ed o
s
a
b

Uma Musume Pretty Derby

EM

Aa

dv

er t

is e me n tsInternet Ad
Business

Internet Ad Business
AI / DX Business

Development of IT TalentEntertainment provision

Ad Creative Busiess
Operation Businessand others.
© Cygames, Inc. © 2021 SQUARE ENIX CO., LTD. All Rights Reserved. Developed by Applibot,Inc.

060

Our Business Model［ Group Synergy ］

Va l u e C re a t i o n S t ra t e g y

02

Media
Business

Internet Ad
Business

Media Business × Internet Advertising Business
Internet Advertising Division's "ABEMA
Team” Focused on Selling Video
Game
Advertising on ABEMA

Business

Internet Ad
Business
Program:"Qosmetic 8"
Advertiser:
eBay Japan G.K.
Broadcast of a makeup show featuring Korean cosmetics available at Qoo10,
operated by eBay Japan LLC.

In our internet advertising business we established the ABEMA Office as a team that specializes
in video advertising using ABEMA, which has been expanding our media business. While flexibly
responding to a wide range of advertiser needs, this office has been working to improve advertising
effectiveness in close collaboration
with the development department at ABEMA.
Media

Business

Game
Business
Program:"Pichon-kun Weather Forecast"Advertiser:
Daikin Industries, Ltd.
Broadcast a three-minute weather news program every day during nighttime,
when younger viewers are most likely to view.

061

Our Business Model［ Group Synergy ］

02
Va l u e C re a t i o n S t ra t e g y

GameBusiness

Internet Ad
Business

Internet Advertising Business × Game Business
Internet Advertising Business Deploys
Web Promotions of Game Titles Provided
by CyberAgent Group©Grenge,Inc. ALL Rights Reserved.

Our internet advertising business deploys web promotions for titles provided by our game business,promoting everything from "IDOLY PRIDE" to "Pocolon Dungeons" and "100 Sleeping Princes &the Kingdom of Dreams." We are pursuing even further growth of our major hit titles by taking fulladvantage of business synergies.

© Project IDOLY PRIDE© GCREST, Inc.

062

Our Business Model［ Group Synergy ］

GameBusiness

Va l u e C re a t i o n S t ra t e g y

02

Media
Business

Game Business × Media BusinessMedia Promotion of Cygames'"Uma Musume Pretty Derby"
Implemented Using ABEMA

All episodes of the TV anime series "Uma Musume Pretty Derby" were delivered over ABEMA. On our online live-streaming
service, ABEMA PPV ONLINE LIVE, we also live-streamed "Uma Musume Pretty Derby - 3rd Event Winning Dream Stage."
Delivering these streams is an example of showcasing content that is ideally suited for the ABEMA platform. The live event
was viewed by a large audience, capturing Game
major attention as it became the world's top trending topic on Twitter on theInternetfirst
Adday of the performance.

Business

Business© Cygames, Inc.
"Uma Musume Pretty Derby" : © Cygames, Inc.

063

Va l u e C re a t i o n S t ra t e g y

02

Media Business"ABEMA" launched in April 2016, attracting many viewers and achieving 73 million
downloads * in five and a half years. We also offer a wide variety of entertainment
services that include the country's largest blog service "Ameba", dating app "Tapple",and ecommerce cosmetics "N organic."*The number of downloads: As of October 2021.

064

Media BusinessMedia Business

Va l u e C re a t i o n S t ra t e g y

02

ABEMA, the new T V for the Future

065

01
A Hybrid Service of TV and VideoMedia Business

Va l u e C re a t i o n S t ra t e g y

02

Media Business

Viewing Style
Composition
Rate
Sept. 2021

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

LinearOn-demand

58%

42 %

066

02

Media BusinessMedia Business

Va l u e C re a t i o n S t ra t e g y

02

Available on smartphones, PCs, tablets, and TV
After getting ABEMA buttons included on TV remotes, viewing time on TV has increased from 10% to 14%*14 %SHARP AQUOSSONY 4K BRAVIA

Panasonic VIERA

Panasonic 4K DIGATOSHIBA REGZA

66 %

13 %
Device Usage
Rate

FUNAI

Mitsubishi Electric REAL

Hisense

TCL

J:COM

7%

Sept. 2021

Smartphones

amazon ﬁre tv

Apple TV 4K

CCC Air Stick 4K

Life Stick

Google Chromecast

Tablets
PC
TV*Comparison of September 2020 and 2021

067

Media Business

Va l u e C re a t i o n S t ra t e g y

02

Media Business03
Around 20 channels available 24 hours a day
Extensive lineup of content suited to live streaming, including news, urgent press conferences, sports, and more.
Delivers a diverse lineup of everything from drama to anime and variety shows.

068

04

Media Business

Va l u e C re a t i o n S t ra t e g y02

While most viewers are young people in their teens, 20s and 30s,
there has been an increase in middle- to older-aged viewers
to content such as Shogi and Mahjong, etc.

Media Business

Demographics

The dating shows watched by one in 2.2 Japanese middle andhigh school girls watch

25 %

41 %
Users
by gender

49 %

Users
by age51 %Sept. 2021

Sept. 2021

34 %
Male

10s

Female20-34
35 or over

069

05

Media Business

Va l u e C re a t i o n S t ra t e g y02

100% professional content
Delivering high quality TV-quality programs

Media Business

Violation-free, safe to watch programs

Advertisement content
is trustworthy

223* When user-posted video media is set to 100

197
100

User-Posted
Video Media

about

197
1.9
times

100

User-Posted
ABEMA
Video Mediaabout* When user-posted video media is set to 100

1.9

223
2.3

times

times

100

ABEMA

about

User-Posted
Video Media

100

User-Posted
ABEMA
Video MediaABEMA* ABEMA: Users who have used ABEMA within a month (n=545): Users who have used user-posted video media within a month (n=3,438)(Results of a survey conducted by Macromill Inc. between February 8–11, 2021)(Results of a survey conducted by Macromill Inc. between February 8–11, 2021)

about

2.3

times

070

06

Media Business

Va l u e C re a t i o n S t ra t e g y

02

Interactive features of ABEMA include commenting, cheering,and multi-angle functions available for live online viewing

Support function

Multi-angle function

Media Business

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

071

メディア
Media Business
事業

Media Business
Va l u e C re a t i o n S t ra t e g y

02

ABEMA

Business Model

Advertising revenue

Free services

ABEMA, which streams 20 channels for free 24 hours a day,bases its revenue on advertising income from its programs
as well as billing income from premium members (960 yen/month) which gives them access to unlimited on-demandviewing and additional functions.
We are also expanding services that have a high levelof affinity with ABEMA as peripheral businesses. Led by
WINTICKET, our sports betting business launched in April
2019, we are now diversifying into other areas uniquely
possible as an internet service such as live online streaming
through pay-per-view (PPV), online shopping, gifting, andmore.

Ad placement

Microtransactions

Microtransaction revenue

Paid content

Transaction fees

Various functions

Advertiser

Production costs
Advertising costs
Labor costs...etc.

Users

Peripheral businesses
Purchase

Sports betting
Fee revenue

Competitor
company
Transaction fees

Purchase
Tickets/merchandise

Pay-per-view revenue
Shopping, gifting, etc.
Transaction fees

Purchaseof artist
merchandise

072

Media Business

Va l u e C re a t i o n S t ra t e g y

02
Growth Strategy

Breaking news

Changes in WAU

Prime Minister's Press Conference, uncut live broadcast

1,825Media Business

Unparalleled Hybrid Service of Both Linear andOn-demand Programming
Based on the concept of being a new future model of TV,
ABEMA is committed to establishing new viewing habits,
setting the WAU* as its most important indicator.
By leveraging its unique advantage of delivering free content
that can be viewed anywhere, anytime to stream news,
urgent press conferences, and other content, ABEMA has
grown as a new info platform for the smartphone era.
It also distributes the largest number of original programsin Japan as well as sports and other exclusive programs.
ABEMA delivers high-quality content that occasionallygoes viral when a hot topic is viewed by countless viewers
at the same time. We are dedicated to continue developing
ABEMA as a pillar of our business and medium with social
influence.
* WAU: Weekly active users (number of users who view the site in one week)

1,490
1,431

1,456
1,403 1,423

1,330
1,269
1,070

918

Shows only on ABEMA

475

658
550 568

1,059
1,005

1,038

855

1,325

1,321

1,546
1,489

1,389
1,275
1,283
1,303
1,239 1,315
1,218 1,331
1,219

1,142
1,038

1,087

1,034 1,025
1,077 1,027

928

729

Exclusive streaming of programs on popular celebrities' disbanding

1,027

1,253
1,198

1,449

623
628
550
591

679

843
732

829

510

269
267

352

418

118
Apr. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept. Dec. Mar. Jun. Sept.

FY2016FY2017FY2018FY2019FY2020

FY2021

073

Media Business

Va l u e C re a t i o n S t ra t e g y

02
Growth Strategy

Four Features of WINTICKETMedia Business

yen

393

* Quarterly transaction volume:
Transaction volume of WinTicket
Inc. which operates the internet
betting service (including points
awarded)Diversifying Our Monetization Strategies
ABEMA is expanding its monetization strategy to include
peripheral businesses based on advertising and billing
revenues. In April 2019 we launched "WINTICKET," a service
that allows users to place bets while watching races on
ABEMA. WINTICKET has been mainly offering cycle racing("Keirin") which is approved under government-controlledgambling, and its use has been rapidly expanding due
to the home-nesting phenomenon under COVID-19
conditions. Betting over the internet with these sports
betting businesses has been growing rapidly in recent
years, and due to the high level of affinity with ABEMA, aninternet media company, this area has been positioned as
an area to be strengthened in the medium- and long-term.

44.6B

WINTICKET Changes in
Quarterly Transaction
Volume
319

192
137
72

4

8

3Q

4Q

17
1Q

FY201935
2Q"ABEMA"
Medium and Long-Term
Sales Pipeline
RelatedBusiness
etc

Subscription
Advertising
2016

2019

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

074

Media Business

Va l u e C re a t i o n S t ra t e g y

02Competitive Advantages
The Evolution of "ABEMA"Media Business

Services that Continue to Evolve Alongside
Technological Capabilities
ABEMA is developed and operated in-house, and we areconstantly working to make its UI more user-friendly andenhance features. In our commitment to free users fromthe constraints of "place" and "time," which are the typicallimitations of conventional TV, our competitive advantage
lies in our ability to evolve services on a daily basis, such asdelivering an anywhere, anytime viewing experience, while
our technological capabilities provide the driving force.
Our engineering team has been building an experimental
platform since 2017. Rather than enhancing and renewing
features after exhaustive preparation, we provide services ona trial basis and optimize them through PDCA while monitoring
the data. Aiming to realize a more user-firstservice, engineers
themselves take ownership of the development by extensively
examining data and interacting with users. We will continue todistill CyberAgent's technological capabilities to pursue thechallenge of reinventing the viewing experience.
*UI: User Interface

2016

2017

2018

2019

2020

2021

075

Media Business

Va l u e C re a t i o n S t ra t e g y

02Competitive Advantages

Sports Betting

Dentsu Inc.

Working with
PartnerCompanies

Hakuhodo DY Media Partners Inc.

Partnership
DAZN

Using Collaboration to Realize a Wide Range ofBusiness Development

Media BusinessBusiness Alliance

When ABEMA was established in 2016 as a joint venture
between TV Asahi Corporation and CyberAgent Inc., thisopened the door to expanding collaboration with othercompanies rather than relying on group synergies alone.
We are working to improve our services in collaboration
with several business partners with initiatives that include
everything from bolstering advertising sales in capital andbusiness alliances to getting an ABEMA button included on
TV remotes released from 2019.

niconico

WinTicket

RelatedBusiness

Shopping Channel
Kaeru AbemaTV, Inc.

GunosyTipping

A dedicated button appear
on remoteSupporting Function

Panasonic
Corporation
Toshiba Visual
FUNAI ELECTRIC
etc.
Solutions Corporation CO., LTD

Sony Marketing Inc.

New Billing Service
SoftBank Corp.

Osaka Gas Co., Ltd.

SMART MOBILE COMMUNICATIONS Co., Ltd.

Animation LabelCA Animation

Increasing
IPs

M＆A

FC Machida ZELVIA

CyberFight, Inc.

Anime Fund

*Equity Ratio: 55.2% CyberAgent, 36.8% TV Asahi, 5.0% Dentsu, 3.0% Hakuhodo DY Media Partners

076Media Business

Va l u e C re a t i o n S t ra t e g y

02

Media Business Full Year Sales

PerformanceMedia Business Full Year OP

82.8 billion yen (up 45.1% YoY)
Sales increase driven by ABEMA.

Operation Loss of the media business decreased to15.1 billion yen.

82.8B
yen

Media Business

FY 2017

FY2018FY2019

-17.2

-16.8

FY2020

FY2021

57.0
46.5
38.2
28.4

-17.9
FY 2017

FY2018FY2019FY2020

FY2021-15.1B
-18.2

yen

077

Media Business

Va l u e C re a t i o n S t ra t e g y

02

Sales of ABEMA & Related Businesses (Full-year)

Performance

Increased by 2.1x YoY driven by the growth of related businesses.

​​Entered a phase of loss reduction since FY 2020.

44.9B
yen

PPV
Related Businesses
Monthly Subscription

Media Business

OP of ABEMA & Related Businesses (Full-year)

FY 2016

FY 2017

FY2018FY2019FY2020

FY2021

Ads

21.1

-8.8

13.8
6.3
0.2
FY 2016

1.9
FY 2017-19.8
FY2018FY2019FY2020

FY2021

-18.5
-20.1

-20.6

-16.4Byen

078

Va l u e C re a t i o n S t ra t e g y

02

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

079

Va l u e C re a t i o n S t ra t e g y

02

インター
Internetネット広Ad Business
告事業

Internet Ad BusinessBusiness Model

Through our internet advertising business, we sell advertising
space such as Google, Facebook, Yahoo! Japan and LINE
to advertisers. We are expanding business by leveraging
our strengths in maximizing advertising effectiveness ininternet advertising, which is said to comprise over 80% of
programmatic advertising.

Production
incomePosting fee
incomeAdvertiser

Web media
E commerce
Finance

Order
Reporting

Game

Internet Ad
BusinessMedia

Ad placementof insertion

GoogleFacebook
LINE
Yahoo! Japan

Bevarages

Twitter

Cosmetics
Automotive

System usage
fee income

Attract customers

ABEMA

080

Internet Ad Business

Va l u e C re a t i o n S t ra t e g y

02

Internet Ad Business

GrowthStrategy

Aiming to Expand Market Share in Growth Industries
The percentage of digital advertising among ad spending in Japan is still low at 36% versus 48% globally in 2020,
indicating high potential for growth in terms of clients in Japan shifting to digital advertising.

Internet Ad Spending ShareAd Spending by Media in Japan * 3

The share of internet ad spending in global ad spending is expected
to be 50% in 2021 and 51% in 2022.

Internet ad spending exceeded TV ad spending in 2019, reaching 2 trillion yen.

Japan internet ad spending share * 1

2,089.8

2,229.0B
yen

Global internet ad spending share * 2

36%

48%

2,058.4

2,070.5

1,976.8
1,810.5
1,784.8

2020
2019

30%

1,877.0

1,812.8

42%

1,965.7 1,947.8

1,956.4

1,902.3

1,932.3

1,912.3

1,758.9

1,509.4

2020
2019

Internet

2,104.8

1,861.2

TV

1,655.9

1,310.0
1,037.7

600.3
482.6

706.9

774.7 806.2

868.0

1,059.4
1,051.9
938.1

698.3
368.8 Newspapers

377.7
122.3 Magazines
106.6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*1 Japan internet ad spending share: "2020 Advertising Spending in Japan," Dentsu Inc.
*2 Global internet ad spending share: "Global Advertising Spending Growth Rate Forecast (2020–2022)," Dentsu Inc.

*3 Ad Spending By Media in Japan: "2020 Advertising Spending in Japan," Dentsu Inc.

Radio

081

Va l u e C re a t i o n S t ra t e g y

02

Internet Ad Business

GrowthStrategy

CyberAgent dominates market share in Japan with a growth rate outpacing themarket. We aim to further expand market share by providing highly-effective
advertising.

Versus the overall internet advertising market

Despite the impact of decreased advertising demand from around FY2020 3Q(January-March 2020) due to the spread of COVID-19, we have continued toachieve strong growth since 1Q of FY2021 (October-December 2020).

Net Sales (Quarterly)

82.2B

Internet Ad Business

80.6

yen

81.8

76.5
Internet Ad Market

The advertising demand
declined due to the stateof emergency etc.

64.3

YonY
+26.6％

64.9

100

2012

2013

2014

2015

2016

2017

2018

* Growth rate trend: Growth rates with 2012 rate represented as 100* Internet ad spending share: "2020 Advertising Spending in Japan," Dentsu Inc.

2019

2020

3Q

4Q

FY2020

1Q

2Q

3Q

FY20214Q

082

Internet Ad Business

Internet Ad Business

Va l u e C re a t i o n S t ra t e g y

02Competitive Advantages

Cutting-edge Technology
ROI (return on investment) is an important indicator ininternet advertising, where the effectiveness of advertising
can be quantified. We established AI Lab in 2016 which
utilizes AI technology to streamline and automate the system
for realizing highly-effective advertising creatives and text
content in bulk quantities. Since we hold the number one
market share in Japan, we also have the largest database inadvertising, which gives our AI the base from which to derive
ads that yield results.

Kiwami Prediction AI

Kiwami Prediction TD

Uses AI to create highly-effective ad creatives
Adopted by 81% *2 of advertisers *1

Uses AI to automatically generate ad text that matches searches
Adopted by 80% *2of advertisers *1

Kiwami Prediction AI Human

Kiwami Prediction LED

Uses AI to generate AI models able to deliver highly-effective ads
Successfully delivered to over 600 people *2

Uses AI to predict effectiveness in real-time, enabling theshooting of highly effective creatives to continue seamlessly*1 Advertisers: Advertisers capable of introducing AI products, such as in display advertising and search advertising placements*2 As of 3Q FY2021"AI for Digital AD - Digital Ads Make a Quantum Leap
with AI" by IR Channel
Learn more about the efficient, AI-driven advertising deployment techniquesthat CyberAgent is working on. This 6-minute video presents a summary of
the aspects of digital advertising making rapid progress via AI, including
the creation of highly effective advertising messages and helping with theselection of optimal creative works.

083

Internet Ad BusinessAI

Advertising agency
SNSInternet Ad Business

Va l u e C re a t i o n S t ra t e g y02

400＊400

バナー 300＊42

Competitive Advantages

Maximizing Advertising EffectivenessOur advertising business is developed by CyberAgentand our 11 major consolidated subsidiaries. High-level
operational capabilities are required to maximize advertising
effectiveness, and having the support structure to achieve
this gives us a competitive advantage. CyberAgent has beenbuilding a system with the collective capabilities to maximize
advertising effectiveness by expanding its structure in line withthe evolution of internet advertising and by aggressively
investing in new technologies as well as cutting-edge
equipment and facilities.

Creative production

Advertisement management

Shooting equipment"LED STUDIO™" virtual photography studio"The AVATAR TRUCK," a mobile 3DCG scanning vehicle

084Internet Ad Business

Va l u e C re a t i o n S t ra t e g y

02

Full Year Sales

Performance

Full Year OP

321.3 billion yen (up 19.3% YoY)
Achieved higher growth rate than the last four years.

22.5 billion yen (up 7.1% YoY)

321.3Byen

OP

22.57B

OP M

Internet Ad Business

yen

240.6

256.6

20.84

269.3
18.12

19.63

21.07

207.8

8.7%

FY2017 FY2018 FY2019 FY2020 FY2021

8.7%

7.7%

7. 8%

7. 0%

FY2017 FY2018 FY2019 FY2020 FY2021

085

Va l u e C re a t i o n S t ra t e g y

02

Game BusinessOur game business, which we launched in 2009, has created a continuous stream of hit titles,
and by FY2021 has grown to hold Japan's top market share* in the smartphone game market.
* Smartphone game market share: as of Apr–Sept 2021

086

Va l u e C re a t i o n S t ra t e g y

02

ゲ
Game
ー ム Business
事業

Game Business
Original IP

Business Model

In-game purchases

Game
Business

Users

Ex, Apple, Google

Items

We provide games for smartphones. We have adopted afreemium model that allows users to play for free while
income is generated by charging for certain in-game items. Of
our eleven major hit titles, five are original IPs. Five titles aregames developed and operated under other companies' IP.
*The number of major hit titles: As of September 2021

Platform fee,30%

Income fromin-game item
purchases

Other
Company s IP

Publisher
In-gamepurchases

Ex.
Nintendo,

Users
Items

Square Enix

Distribution

Revenue sharing
incomeDevelopment
costs,
Advertisingexpenses,
Personnel
expenses etc.

087

Va l u e C re a t i o n S t ra t e g y

02

Game Business

GrowthStrategy

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

Comparison against Competitors

Japan's mobile game market is the third largest in the world, after China and theUnited States.

As the market has matured and demand is focused on high-quality smartphonegames, there are only a limited number of companies capable of producing
continuous hits due to the need to have advanced technology as well as thefinancial strength to cover surging development costs.
Our game business is highly competitive, ranking among the top market share *3 inthe smartphone game market as a result of delivering high-quality original games
and forming collaborations with companies that hold superior IPs.

Japan s Smartphone Game Market Forecast * 1

277B

Game Business

2021: 225 billion USD (UP 11.9%YoY)
2022: 253 billion USD (UP12.4%YoY)

140

175

155

201

253

225

USD

*3 Based on a competitor comparison that disclosed smartphone game sales.

109

Changes in Quarterly Sales *4
2016

2017

2018

2019

2020

2021E

2022E

2023E

*1 Japan s Smartphone Game Market: White paper of Ministry of Internal Affairs and CommunicationsGame Market by Country * 2

Japan has the third largest game market.

Rank

Country

Revenue(USD)

Rank

Country

1

China

44.3B

4

South Korea

7.3B

2

United States

42.1B

5

Germany

6.0 B

3

Japan

20.6B

*2 Game Market by Country: Newzoo 2020 Global Games Market Report

Revenue(USD)

FY2014FY2015FY2016FY2017FY2018FY2019FY2020*4 Comparison against competitors: Internet game sales figures from the financial results
briefing materials of various companies

FY2021

088

Game BusinessGame Business

Va l u e C re a t i o n S t ra t e g y

02

FY2013Competitive Advantages

Long Term Games Realized through our Extensive
Operational Advantages
In its game business, CyberAgent currently has a total of 13
major consolidated subsidiaries with Cygames Inc. at theforefront. We have constructed an optimal game portfoliothat leverages the strengths of each subsidiary, and now have
11 major hit titles including our own original titles as well as
IP titles from other companies. We also actively cross-shareknowledge and expertise among subsidiaries to enhance ouroperational capabilities, enabling the delivery of long term
games.

FY20141

2

Sengoku Embu
-KIZNA-

Granblue
Fantasy

Original IP
Card Battle

FY2015FY2016FY20175FY2018FY2019FY20207

FY2021

10

Shadowverse

PRINCESSCONNECT!
Re:DiveUma MusumePretty Derby

Original IP

Original IP

Original IP

Original IP

RPG

Esports for
Smartphone

Anime RPG

Training
Simulation

3

4

6

Dragon Quest
Monsters
Super Light

THE iDOLM@STER
CINDERELLA
GIRLS STARLIGHT STAGE

BanG Dream!
Girls Band
Party!

Others IP

Others IP

RPG

Idol &
Rhythm8

911

Dragalia Lost

Project SEKAI
Colorful Stage!
Feat. Hatsune Miku

NieR
Re[in]carnation

Others IP

Others IP

Others IP

Others IP

Rhythm &Adventure

ActionRPG

RhythmGame

RPG

2.5.7.10 : ©Cygames, Inc. 3 : ©2014-2019 ARMOR PROJECT/BIRD STUDIO/SQUARE ENIX All Rights Reserved. Developed by Cygames, Inc. Publisher: SQUAREENIX 4 : ©BANDAI NAMCO Entertainment Inc. It was jointly developed and is operating by ©BANDAI NAMCO Entertainment Inc. and Cygames, Inc. 6 : ©BanG
Dream! Project ©Craft Egg Inc. ©bushiroad All Rights Reserved. 8 : ©Nintendo / Cygames Publisher: Nintendo 9: “Project SEKAI Colorful Stage! Feat. Hatsune
Miku” ©SEGA /©Colorful Palette Inc. /©Crypton Future Media, INC. www.piapro.net
All rights reserved. 11: NieR Re[in]carnation : ©2021 SQUARE ENIX
CO., LTD. All Rights Reserved. Developed by Applibot,Inc.

089

Game Business

FINAL FANTASY VII EVER CRISIS

Jujutsu Kaisen Phantom Parade

Development: Applibot, Inc.
Planning & Production: SQUARE ENIX CO., LTD.

Planning & Peoduction: Sumzap, Inc. TOHO CO., LTD.
Development & Operation: Sumzap, Inc.

Game Business

Va l u e C re a t i o n S t ra t e g y

02Competitive Advantages

Technological capabilities to create hit titles
We launch five to six new games each year in our gamebusiness and have been successful in delivering a continuous
stream of hit titles. Due to the high acclaim of our trackrecord and achievements, we are getting increasingly more
opportunities to develop and operate superior IP titles owned
by other companies. In 2022, we plan to distribute FINALFANTASY VII EVER CRISIS*1, the latest title in SQUARE ENIX's
FINAL FANTASY VII series, to smartphones worldwide*2. We arealso developing "Jujutsu Kaisen: Phantom Parade"*3, the firstsmartphone game based on the TV anime "Jujutsu Kaisen."
Cygames Inc., which produced a major hit title with its
original IP "Uma Musume Pretty Derby"*4 in February 2021,
not only develops smartphone games but console games as
well, which is helping to create high-quality new titles partly
through the acquisition of cutting-edge technologies.
*1 FINAL FANTASY VII EVER CRISIS :© 1997, 2021 SQUARE ENIX CO., LTD.
All Rights Reserved. Powered by Applibot,Inc. CHARACTER DESIGN: TETSUYA NOMURA*2 worldwide: excluding mainland China.
*3 Jujutsu KaisenPhantom Parade”:© GegeAkutami/ Shueisha, Jujutsu Kaisen Production
Committee © Sumzap, Inc*4 Uma Musume Pretty Derby : © Cygames, Inc.
*5 Console games of Cygames, Inc. : © Cygames, Inc.

Project GAMM*5

GRANBLUE FANTASY Relink*5

Project Awakening*5

Cygames, Inc.
Release Date TBD

Cygames, Inc.
To be released in 2022

Cygames, Inc.
Release Date TBD

090

Game Business

Va l u e C re a t i o n S t ra t e g y

02

Full Year Sales

Performance

Full Year OP

262.7 billion yen (UP 68.6% YoY)
New successful titles delivered a strong growth.

96.4 billion yen (UP 217.9% YoY)

262.7B

96.44B

Game Business

yen

140.3

FY2017146.5

FY2018152.2

FY2019yen

155.8

FY2020

FY2021

26.50

25.30

26.04

FY2017FY2018FY201930.33

FY2020

FY2021

03 Risks &Opportunities

Sayaka Kodama
Chief Manager of M-League,
Manager of Dance team
“CyberAgent Legit," D.LEAGUE,
President's Office095

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

Risks & Opportunities

Risks to Sustainable Growth of the Company

Risks & Opportunities

03

Risk s & Oppor tunities

Sustainability
Classification

Risk item

Superior
Creation

Social Change

Adaptability
to change

Superior
Technology
Adaptability
to change

TechnologicalInnovation

Content

Response Approach

Procedures and Systems
that Provide Countermeasures

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

To continue achieving growth in the internet industry, it is important for
us to respond quickly to changes in the environment and consumer
preferences to develop new businesses. CyberAgent's risk management
challenges are to rapidly "create new businesses in response to change"and "turn risk into opportunity." We have implemented a variety ofmeasures to pursue the challenge of launching the new businesses. In
order to contribute to digital transformation (DX) of many industries,
which progresses due to the COVID-19 impact, we are currently focusing
efforts on commercialization opportunities.

CyberAgent's DX

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

The wide range of CyberAgent services ― including ABEMA, over 50
smar tphone games, and adver tising produc t s that apply AI
technologies―are created by over 2,000 engineers and creators using
an extensive range of technologies. We strengthen the systems forcross-departmentally sharing the various technological assets built up
across the group to improve our capabilities necessary to keep ourcompetitive edge. At our in-house research institutes, we work on
developing the latest technologies and their practical applications,aiming to achieve a balance between finding solutions to businesschallenges and contributing to academia. CyberAgent leads Japan in thenumber of scientific papers adopted at international conferences in thefield of AI research.

CA BASE SUMMIT

・Loss of competitiveness dueto the inability to predict orslow prediction oftechnological innovation* "AI Research Ranking for 2020" by Gleb Chuvpilo, calculated based on the results ofpapers adopted at ICML2020 and NeurIPS2020.

Ashita Kaigi (Meeting for Tomorrow)
Cycom

Opportunities(value creation)

To generate new value
through the creation of
new businesses

Financial Strategy Meeting
CAJJ
Startup JJJ

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

CA BASE CAMPTechnology conference
by in-house engineers and creators

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

To create new value,
including new services
that utilize the latest intechnology

Risks & Opportunities

03

Risk s & Oppor tunities

Risks to Sustainable Growth of the Company

096

Sustainability
Classification

Risk item

Superior
Technology

Information
Security

Adaptability
to change

Content

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

Response Approach

Procedures and Systems
that Provide Countermeasures

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

Information Security

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

Recruitment strategy

Protect Personal Information

Opportunities(value creation)

To gain public trust byproviding safe, secureand reliable services

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

Superior Talent
Adaptability
to change

Securing
Human
Resources

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

FLATOP

Training and active participation measures
CA BASE AWARD
CA BASE NEXTJB Career Program
YMCA

To boost competitivenessand achieve sustained
corporate growth bybolstering human resources

Risks & Opportunities

03

Risk s & Oppor tunities

Risks to Sustainable Growth of the Company

097

Procedures and Systems
that Provide Countermeasures

Opportunities(value creation)

Sustainability
Classification

Risk item

Superior TalentWorking
Environment

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

We value the health of employees and provide an environment in which they
can work free from mental and physical stress. We began administering
COVID-19 vaccines to employees in July 2021, and 4,249 people, around
70% of the total, have completed their second round of vaccinations.

Healthy Workstyle

To boost hiring competitivenessand ensure growth
opportunities by providing apleasant working environment

External
Environment

NaturalDisasters,
etc.

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

Environment

To create sustainable
societies

External
Environment

Legal
Regulations

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

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

Lobbying activities

To create business
opportunities

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

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

Mission Statement

To eliminate non-compliance and foster public
trust

Adaptability
to change

Content

Response Approach

Risk GEPPOManagement Training

Risks & Opportunities

03

Risk s & Oppor tunities

Risks to Business Growth098

Sustainability
Classification

Risk item

GovernanceMedia
Business

Content

Response Approach

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

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

Procedures and Systems
that Provide Countermeasures

Safe and Sound Media Service
Operation
Safe and Sound Dating App
Service

Opportunities(value creation)

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

GovernanceInternet
Advertising
Business

・Improper billing of advertisingexpenses from ad fraud, lossof public trust or confidence in
the Company's advertisingbusiness due to damage toadvertisers' brand value,compensation claims due todamages, changes in transaction
conditions or productspecifications due to restrictions
on personal information in andoutside Japan, guidelines andregulations on AI ethics,
infringement of third party rights
by AI-based algorithms anddeliverables, etc.

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

Advertising ComplianceTo foster public trust as asafe and secure service
provider by
understanding theimportance of
establishing procedures
and systems that protect
advertisers as well as AI
ethics.

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

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

Safe and Sound Gaming

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

Operations

Risks & Opportunities

03

Risk s & Oppor tunities

Risks to Business Growth099

Sustainability
Classification

Risk item

Adaptability
to change

Investment
development
business

Adaptability
to change

M&A(corporate
acquisitions,etc.)Content

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

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

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

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

Procedures and Systems
that Provide Countermeasures

CyberAgent Capital, Inc.
(investment development business)

Fujita Fund(an initiative that supports entrepreneurs)

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

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

Opportunities(value creation)

To contribute to the
expansion of the internet
industry by supporting
venture companies withcommitments from seedand early stages.

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

04

ESG

103

ESG

04

Corporate Governance104

Corporate Governance04
ESG

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

Governance Overview

5

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

Internal

3（2）External

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

Female director
ratio

Board of Directors
participation ratio

Average age

50% 13% 100% 43*1

Age ofthe youngest officer

31*2Introduction of
measures to prevent
takeover bids

None

*1 2 Figures include directors and executive officers.

105

Corporate Governance

ESG

04

Changes in Our Management
Structure
CyberAgent has been reinventing its
management structure by utilizing a uniquesystem that is tailored to the company's
growth phases and business strategy. To
further strengthen corporate governance,in December 2020 CyberAgent transitioned
to a new executive officer structure with aclear separation between supervision andexecution, and to further enhance supervisory
functions, the structure ensures that halfof the board members are from outside thecompany.

2008

2018

2021

Using a competitive environment topromote the execution of directors'
duties and develop the management
team

Strengthening the management
system in response to ourdiversifying business portfolio

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

CA8

Bulking up

New executive officer structure

We introduced a system in which twoof the eight directors are replaced
every two years. While the system
continued for 10 years, it ended in2018 when the system reached its
limits due to difficulty in replacing key
positions.

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

Outsidedirectorratio

Outsidedirectorratio

A clear separation between
supervision and execution wasestablished to further strengthen
corporate governance. In addition totransitioning to a new executive officer
structure, the company also realized
the structure in which half of theboard members are from outside thecompany to further enhance thesupervisory function of directors.

0%

20 %

Outsidedirector
ratio

50 %

106

Corporate Governance

ESG

04

Directors

Susumu Fujita

Yusuke Hidaka

Go Nakayama

Toko Shiotsuki

Representative Director, CEO

Director

Director

Director (Full-time Audit andNumber of shares held: 88,961,600
Number of board meetings attended:
13/13 (100%)

Number of shares held: 2,914,000
Number of board meetings attended:
13/13 (100%)

Number of shares held: 1,529,907
Number of board meetings attended:
13/13 (100%)

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

Supervisory Committee member)

FemaleThere are a total of eight directors, including
three directors who are members of the Audit
and Supervisory Committee. Of these, fourare outside directors.

Koichi Nakamura

Kozo Takaoka

Masao Horiuchi

Tomomi Nakamura

Outside Director

Outside Director

Outside Director

Outside Director

Independent

Independent

Independent

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

Number of shares held: 0
Number of board meetings attended:
11/11 (100%)*(Audit and Supervisory Committee member)

Number of shares held: 161,200
Number of board meetings attended:
13/13 (100%)* The number of meetings of the Board of Directors attended by Kozo Takaoka is the number of meetings since the Ordinary General Meeting of Shareholders held on December 11,
2020, when he assumed the position of Outside Director of the Company.

(Audit and Supervisory Committee member)New

Independent

Number of shares held: 0
Number of board meetings attended:ー107

Corporate GovernanceMedia Business

ESG

04

Susumu Fujita

Masahide Koike

Norishige Nagase

Riku Yamada

Tatsuhiko Taniguchi

Tomohisa Nomura

CEO, President

Senior Managing Executive Officer

Managing Executive Officer, CTO

Managing Executive Officer

Executive Officer

Executive Officer

Yasuo Okamoto

Takahiro Yamauchi

Takahito Naito

Executive Vice President

Senior Managing Executive Officer

Managing Executive Officer

Technology

Takunori Fujii

Yosuke Sato

Executive Officer

Executive Officer

Executive Officer

FemaleCreative work

Executive Officers
Hiroyuki Ishii

Eiji Koike

Daiki Nakata

Gaku Miyata

Senior Executive Officer

Senior Executive Officer

Executive Officer

Executive Officer

Senior Managing Executive Officer

Company-wide functions

New BusinessYuta Iizuka

Game Business

We transitioned to a new executive officer
structure in October 2020, and now have 24
executive officers assigned to each business
unit for comprehensive coverage.

Advertising businessYuka Yokoyama

Yusuke Hidaka

Koki Ukita

Executive Vice PresidentManaging Executive Officer

Go Nakayama

Yuko Ishida

Tetsuhito Soyama

Masato Sato

Takehiro Takeda

Senior Managing Executive Officer

Senior Managing Executive Officer

Managing Executive Officer,CHO

Executive Officer

Executive Officer

FemaleTechnology

108

Corporate Governance

Board of Directors
The Board of Directors consists of five directors who are not members of the Audit Committee (including two outside directors) and three directors who are members of
the Audit Committee (including two outside directors). Regular board meetings are held once a month and special meetings are held when necessary to make important
decisions and supervise the executions and operations. In addition, the Company established the Corporate Executive Office on October 2, 2020, with the aim of separating
management oversight from business execution, and delegated some of the Board's executive authority to the Corporate Executive Office. The Board of Directors and the
Corporate Executive Office have developed an agile management system and are working to strengthen supervisory functions.

ESG

04

Questionnaire on the Effectiveness of the Board of Director Meetings

Board of Directors andAudit and Supervisory
Committee

At the end of September 2021, the Board of Directors (including current Audit and Supervisory Committee members) was given a questionnaire on the effectiveness of Boardof Directors meetings. The overall score of the questionnaire was high, confirming that the Board of Directors serves appropriately. Also, its effectiveness has been ensured
more than ever, especially with introducing a system in which the roles of supervision and execution are more clearly separated, also with more than half of the directors being
independent from the current fiscal year.
With regard to the number of times the Board of Directors convened as well as scope, quantity and content of agenda presented, the questionnaire found that there were
no indications of problems and sufficient time was set aside for deliberation. The questionnaire also found that each director has an appropriate decision making process
which is rooted in discussions that consider budget, earnings outlook, potential risks on business or management, etc., and that the board strives to improve corporate value,
selection and concentration, and business expansion not only individual's specific realm of responsibility, but also across the entire company while working closely withoutside directors.

Audit and Supervisory Committee
The Audit and Supervisory Committee consists of three Directors who are Audit and Supervisory Committee members (including two independent Outside Directors), and ingeneral the Committee holds a regular meeting once a month to audit the execution of duties by Directors.

Structure of the Audit and Supervisory Committee
Toko Shiotsuki

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

Director, full-time Audit and Supervisory
Committee member

Masao Horiuchi

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

Outside Director, Audit and Supervisory
Committee member
OutsideIndependent

Audit and Supervisory Committee

Tomomi Nakamura Meeting attendance: N/A
Outside Director, Audit and Supervisory
Committee member
New

OutsideIndependent

109

Corporate Governance

Basic Policy

04
ESG

The remuneration of the Company's Directors consists of basic remuneration as a fixed amountand performance-linked amount (both are monetary remuneration). The payment amountis determined within the limit of remuneration approved at the Annual General Meeting of
Shareholders. After consulting the Nomination and Remuneration Advisory Committee, theBoard of Directors determines the details based on the committee's report. Remuneration for
Outside Directors will be limited to basic remuneration.

Director
Remuneration

Policy for determining the content and amount ofbasic remuneration
The basic remuneration shall be determined within the range of amounts determined inconsideration of the position, grade, role, etc.

Policy on Determination of Performance-linked Remuneration
Performance-linked remuneration shall be funded from a certain percentage of the operating
profit for each fiscal year, and shall be determined for Directors in charge of business execution,
taking into consideration their performance and the degree of their contribution for the relevant
fiscal year.

Other Remuneration Policies
In the event that other non-monetary remuneration is to be paid, the Board of Directors will
determine the policy regarding the content, calculation method of such remuneration inaccordance with laws and regulations.

Total amount of remuneration of Directors

Classification

Director who is NOT
the Audit andSupervisory
Committee members(Outside)
Director who IS the
Audit andSupervisory
Committee members(Outside)

Total(Outside)

Number of
Recipients

Amount of
remuneration(¥ million)

13

Subtotals for each type of
remuneration (¥ million)
Monetary
remuneration

Stock options

325

232

92

（2）

(31)

(27)

(4)

3

19

19

-

（2）

(8)

(8)

-

16
（4）

344
(40)

252
(35)

92
(4)

Establishment of Nomination and Remuneration Advisory Committee
The Company established a Nomination and Remuneration Advisory Committee as theBoard of Directors' optional advisory committee on October 30, 2019. The committee mostly
consists of Independent Outside Directors to strengthen independence and objectivity of
the nomination and remuneration function of the Board of Directors, and further enhancing
corporate governance.

Stock Option System
Stock options are granted based on CyberAgent's consolidated sales with the objective offurther boosting the motivation and morale, raising corporate value, and further strengthening
corporate management.

110

Corporate Governance

ESG

04

Basic policy for information disclosureManagement Transparency

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

Initiatives to Annual General Meeting of Shareholders
We are accelerating the delivery of convocation notices to ensure that our shareholders have sufficient time to review
the agenda. Convocation notices are sent out at least one week prior to the statutory date (at least three weeks before
the General Meeting of Shareholders). In addition, before notices are sent out, their Japanese and English versions areposted on CyberAgent’s corporate website (released on November 8, 2021.), on the Tokyo stock exchange website, andalso on the electronic voting platform for rights holders. Exercise of voting rights through the internet has been available
since 2007.

111

ESG

04

Social Responsibility

112

ESG

04

Social Responsibilit y

To ensure that we provide an environment where employees can work withpeace of mind in the long term, we have established a personnel system thatbrings out people's full potential while also implementing a variety ofmeasures related to support a healthy work style.
We will strive to contribute to building a sustainable society by utilizing
the expertise we have accumulated through the services andbusinesses we operate.

Healthy Workstyle

Based on the belief that the health ofworkers contributes to company growth,
our Health Support Office, launchedin 2016, plays a central role in creating
an environment where employees canmaximize their potential while also
supporting their physical and mental
health. We also provide free vaccinationsin the company every year during flu
season. CyberAgent promotes annual
health checkups for directors andemployees in order to detect illnesses assoon as possible and monitor health, andup to 98% of the staff are already taking
advantage of this service.

Scenes of the workplace vaccination

As measures to deal with COVID-19, we
provide an environment that maintains
the efficiency level of employees'
work even when working from homeand have implemented a number of
initiatives to monitor their condition
and improve relationships. Also, toaccelerate the vaccination process, we
promptly implemented the governmentrecommended vaccination program at
the workplace, treating the time spent for
vaccination and movement as work time,
as well as granting employees up to twodays of special leave if rest is needed due
to an adverse reaction to the vaccine.

Health Checkup
Rate*

98 %

*Health checkup rate:non-consolidated CyberAgent113

Social Responsibilit y

Example Responses to GEPPO Performance Questions *04
ESG* GEPPO responses: Average of monthly responses from October 2020 to June 2021

62 %

Sunny

GEPPO, a Tool for Putting theRight Person in the Right Job andAssessing Staff Conditions

Once a month, we use GEPPO, a
web-based questionnaire developed
in-house, to survey employees about
their performance and team conditions.
By using weather symbols that make iteasy to answer, the questionnaire hasachieved an excellent response rate of
96%. Each month, different questions
are used to gain insight into employees'
career trajectory, struggles, and othermatters. A free comment space isalso included to open a dialogue withstaff, which helps us identify issues
and individuals/departments understress. Then, through communication,
we work together to solve issues andensure that the right person is assigned
to the right job.
We also implement "Risk GEPPO" every
quarter, where we survey employeeson the risks they perceive within thecompany. This system is designed toproactively prevent losses that could
arise in managing the company by not
only identifying risks beforehand, but alsoraising employees' awareness of risks
and focusing more attention on them.

32 %CloudyRainy

6%Average Monthly
GEPPO Response Rate

96 %

114

Social Responsibilit y

ESG

04

"Remo Day" (Remote Work Day),a System for Working from Home on
Specific Days of the Week

In June 2020, we launched "Remo Day," asystem where employees work remotely
on specific days of the week, adopting
a hybrid work style that combines bothworking at office and from home. In ourmonthly web survey “GEPPO,” 79%of people responded that "the work
environment was supportive to take onchallenges" even when working from
home, and the system has achieved
positive results in terms of workload
distribution and creating a sense of teamunity.

In other initiatives, we also live-streamed
the joining ceremony for 2021 new
graduate hires by using a "virtual shooting
system." The ceremony incorporated
production elements only possible
under an online format that also allowed
all employees to watch the ceremony,making it a great opportunity for the whole
company to welcome new employees.
Going forward, we will continue to strive
to combine the advantages of remote
work, teamwork, and dynamism.

Online joining ceremony using the virtual shooting system

Working from Home Ratio
100%
88* Encouraged voluntarily, proactive remote working due tothe increase of infected people in Tokyo

90
Encouraged working from home 5 days/week *

80%

74

76

72

66

60%

62
56

54

Working from home 2 days/week

0%

52

47

40%

20%

74

Working from home 2 days/week

Government
state-of-emergency
declaration

4

5

Government
state-of-emergency
declaration

6

7

8
2020

9

10

11

12

1

2
3
2021

116

Social Responsibilit y

ESG

04
Our commitment
to the Sustainable
Development Goals(SDGs)

In support of the Sustainable Development
Goals (SDGs) adopted at the 2015 United
Nations Summit, CyberAgent is committed
to contributing to the SDG goals by
utilizing the know-how we have built up
over the years through the services andbusinesses we operate.

117

Social Responsibilit y

ESG

04

FC Machida ZELVIA Works with
Local Community

Through its "Hometown Activities," thefootball club FC Machida ZELVIA holds
online exchange events with elementary
schools in Machida, Tokyo; participatesin Fan Football School; and implements
a project in which supporters donate
uniforms to children living in Machida.
In the area of health and welfare,
the football club is also engaged incontributing to local community throughsports. For example, it has donatedstuffed toys of its mascot "Zelvy" as gifts
to newborn babies, and also enteredinto a "Comprehensive Collaborative
Agreement for Health Promotion" with the
Machida City Health Center to participate
in health promotion initiatives such asheat stroke and cancer prevention.

Online exchange event with players at an elementary school"Connect Together" project delivers uniforms donated by fans andsupporters to children in Machida City

Production and provision of after-school English class teachingmaterials that feature video appearances by players

Visits to football schools to participate in training and mini games

118

Social Responsibilit y

ESG

04

ABEMA as an Emergency
Information Infrastructure during
Disasters

ABEMA not only provides free access to
the latest news and information, but wehave also added an emergency channel
that delivers real-time information fordisaster-affected persons 24-hours-aday in the event of a disaster or otheremergency such as an Earthquake Early
Warning.
During the Kumamoto earthquake which
occurred when the channel first launchedin April 2016, it broadcast an earthquake
bulletin immediately after the earthquake
strike, and continued to deliver thelatest earthquake-related information
for around 49 and a half hours, including

special programs only available on theAbemaNews Channel, which was also
used as a means of gathering informationin the disaster-affected area. In addition,
its full-coverage live broadcasts ofpress conferences and focus on speed
in delivering breaking news have beensuccessful in building up a viewershipbase that thinks to "Check ABEMAFirst" whenever something happens.
Going forward, ABEMA recognizes theimportance of its role in society as a new
information infrastructure in the age ofthe internet, and will continue to fulfill it.

Breaking news: Press conferences are broadcast live and uncut

Permanent emergency channel: Delivers constant info on COVID-19

119

Social Responsibilit y

ESG

04

Programming Project is Developing
the Engineers of the FutureWith a view to a highly-developed future
IT society, programming education
has become compulsory in elementary
schools from FY2020. CA Tech Kids
Inc. had played a part in the lobbying
process. Since its launch in 2013, it
has provided opportunities to learn
programming to over 30,000 children
through its programming schools andworkshops in various locations.
In addition to its directly-operated
schools, CA Tech Kids is also actively
involved in supporting programming
education throughout Japan, especiallyin rural areas. For elementary schools andlocal governments that face issues suchas a shortage of instructors, CA Tech
Kids provides on-site classes, instructor
development training, and curricula thatfacilitate the realization of independentand sustainable programming educationin those municipalities. It also holds the"Tech Kids Grand Prix," a contest to
discover Japan's top kids programmer,and collaborates with local government
to hold regional contests for local
elementary school students free ofcharge.

Full Support for Realizing Independent
Programming Education in Rural Areas

Programming Contests for Elementary
School Students Nationwide

CA Tech Kids contributes to realizing an environment
for independent programming education by providing
on-site classes, instructor training, and curricula tolocal governments and elementary schools, including
those on remote islands.

Under its slogan, "You are the creators of the 21st
century," it holds "Tech Kids Grand Prix," Japan's
largest programming contest, and provides free
support for regional contests in collaboration withlocal governments.

Providing Online Learning Materials
to Cram Schools and Other Learning
Service Providers Nationwide

Promoting Programming Education
through Public-private Partnerships

CA Tech Kids has developed the "QUREO Programming
Classroom," a programming class for elementary
school students that has grown to over 2,300 classes
in all 47 prefectures (No.1 in Japan for number ofprogramming classes for elementary school students).

In cooperation with Shibuya Ward where its head
office is located, CA Tech Kids implements the "Kids
VALLEY Future Learning Project" with the aim of
producing human resources with the qualities andabilities necessary for the next generation throughprogramming education provision.

120

Social Responsibilit y

ESG

04

(Online) Company Visits for Junior andSenior High School Students
CyberAgent makes it possible for juniorhigh and high school students acrossJapan to visit companies in an online
format. We provide opportunities forstudents to envisage their future careerand occupation by introducing ourbusiness and services, and familiarizingthem with the working styles of
employees. Aiming to promote a better
understanding of the internet industry
and our company, this initiative provides
an opportunity to choose a future careerby getting acquainted with internet
services and the latest technology. It also
provides career education for children,
who will be the leaders of the future,through communication with employees
working in the real world.
Launched in August 2020, 19 students
from 7 schools participated in FY2020,
but this dramatically increased to 186
students from 16 schools in FY2021,
providing an opportunity for many junior/high school students to participate.

A scene from an online company visit

121Social Responsibilit y04
ESG

BeforeRevitalizing Older Buildingsin Central Tokyo by Development
into Shared Offices
After
REALGATE Inc., which joined theGroup in July 2021, has a track recordof revitalizing over 60 old buildings
in central Tokyo, especially around
Shibuya, to provide shared officespaces to start-up companies. For aging
buildings that have lost competitivenessdue to deterioration, REALGATE not
only performs seismic retrofits andrepurposes them, but also boosts theirvalue by realizing creative spaces withstylish design, and reinvents them as
attractive properties that have increasedsocial value. REALGATE pursues thecreation of a recycling-oriented society
by effectively utilizing existing resourcesand enhancing their value.
By drawing on our technologicalcapabilities and expertise in the digitalfield, we are not only promoting DX in thereal estate sector but also contributing
to the creation of flexible workplaces
and urban development by combining IT
with the creative real estate capabilities
of REALGATE.

Renovation example: PORTAL POINT - Ebisu-

122Social Responsibilit y

ESG

04

Providing opportunities to try sake fromsake breweries across Japan to counteract
the negative impact of COVID-19

Support for Creating Social Value

Makuake, Inc. supports industries by
providing a platform “Makuake” where
the creators of products and services canshare the stories and thoughts behindthe development of their products andservices, and these products or services
are then purchased by individuals who
feel a connection with them. Throughthis, the platform helps facilitate the birthof new products and services.
In 2021, in response to the governmentissued
state-of-emergency,
we
implemented an Online Sake Market tosupport the sake breweries and retailers
who continue to face unfavorable

conditions due to reduced hours at foodand drink establishments. This online
market has supported the challenge ofsake breweries and retailers, allowing
them to attract supporters by sharing
their commitment to sake brewing andrecommended ways to drink sake intheir own words to motivate supporters
to purchase the products they wish to
support.
Makuake has also contributed greatly
to the revitalization of local economies,
with local projects accounting for asmuch as 70% of all projects on theplatform.

Over 40 sake breweries from across Japan
have collected some 160 million yen by taking
advantage of the cultural trend of drinking athome, which has emerged from stay-at-homerequests due to COVID-19.

Efforts to develop products thatprevent inventory loss
Several supporters purchased cooking utensils
created in Tsubame-Sanjo in Niigata prefecture
where many small metalworking companies areconcentrated.

Supporting new product planningthat reflects consumer response at
an apparel company

Private technical college project
aims to open a school in Kamiyama,
Tokushima prefecture

Through apparel-related company BEAMS,
support is provided to develop new products
based on consumer response and market needs,
as well as internal recruitment aimed at identifying
outstanding employees.

Kamiyama Marugoto Technical College (tentativename) aims to realize a school that fosters design,technology, and entrepreneurship while providing
its students with the technical and interpersonal
skills needed to survive in today's world.

123

Social Responsibilit y

ESG

04

Creation of Employment Opportunities

CyberAgent creates employment
opportunities through the establishmentof regional subsidiaries such as CA
Advance, Inc. where roughly 1,200
employees at bases in Okinawa, Sendai
and other locations carry out internet
advertising activities and handle customer
support for the media business.
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. CyberAgentWill is engaged in proactively hiring
disabled persons who possess high-levelcomputer operating and technical skills.
CyberAgent is committed to ensuring
a comfortable work environment for
staff from a variety of backgrounds, forexample, by establishing a leave systemthat allows regular hospital visits, andproviding monthly meetings with externalcounselors to discuss issues.

Photo of the CA Advance, Inc. office124Social Responsibilit y

ESG

04

Providing an AI-driven Automated
Phone Response Service for Making
COVID-19 Vaccination Reservations

The need to establish implementation
systems, streamline administrative
work, and secure consultation systems
in municipalities across the country for
COVID-19 vaccinations have quickly
arised. The GovTech Development
Center, a specialized team that supports
the digital transformation (DX) of public
offices and municipalities, started toprovide the Coronavirus Vaccine AI
Phone Agent, an automated AI-driven
phone response service dedicated tohandling inquiries and reservations for
the COVID-19 vaccination.
This service was first introduced in
April 2021 in Mie Prefecture and TamaCity in Tokyo, and since then, it has
been used by local governments
across Japan where it has successfully
processed more than ten thousand
COVID-19 vaccination reservations
using the Coronavirus Vaccine AI Phone
Agent. We are committed to continuing
to support the digital transformation(DX) of companies, governments, andmunicipalities by leveraging our strengths
in digital marketing and operations, ourextensive knowledge of AI and DX, andour industry-academia collaborations in
our aim to create "great services that are
actually used" and provide high levels of
convenience and satisfaction for citizens.

125

Social Responsibilit y

ESG

04

Project to Promote and Raise Awareness of
SDGs Among Staff

We have launched a project to Promote
and Raise Awareness of SDGs amongstaff, providing opportunities to gain abetter understanding through internal
newsletters and other means. This
project is a measure to raise awarenessof SDGs by encouraging employees tocommunicate, in their own words, what
SDGs initiatives deliberately carry out intheir daily lives such as environmentally-

conscious habits, as well as effective
approaches that incorporate whendeveloping services.
Also, through the introduction of original
characters, the "SDGees," created byan in-house creator, we are expanding
opportunities for exposure to SDGs in amore approachable way, and we continue
to find ways to keep the project exciting.

126

ESG

04

ESG Data

127

E SG Data

Non-consolidated

Items

ESG

04

Total no. of employees:
gender composition (%)

No. of employees in managerial positions

Coverage

Consolidated

Coverage

Total

1,702

100%

5,944

100%

Male(%)

66.2%

99.5%

66.7%

88.6%

Female(%)

33.8%

99.5%

33.3%

88.6%

270

100%

478

69.0%

Total

(Employees who perform managerial orsupervisory duties and employees above
a certain grade such as managers)

Male(%)

80.0%

100%

79.9%

69.0%

Female(%)

20.0%

100%

20.1%

69.0%

% of female in Directors

Ratio (%)

12.5%

100%

-

-

% of female in Corporate Officers & Managers

Ratio (%)

20.0%

100%

-

-

48

100%

-

-

Male(%)

70.8%

100%

-

-

Female(%)

29.2%

100%

-

-

339

100%

735

100%

Male(%)

74.6%

100%

-

-

Female(%)

25.4%

100%

-

-

134

100%

412

100%

Male(%)

76.1%

100%

-

-

Female(%)

23.9%

100%

-

-

2.35%

100%*

-

-

Total

% of new appointments tomanagerial positions

Total

No. of employees hired

Total

No. of mid-career hires
to new full-time hires% of employees with disabilities in overall workforce(Employees working at CyberAgent Will, Inc. a special-purpose subsidiary)

Ratio (%)

Average length of service

years

Turnover Rate

Ratio (%)

6.3

100%

8.0%

100%

100%*

128

E SG Data

Average age

ESG

04

Age distribution of employees

Average annual salary of employees

34.1

100.0%--

20s (%)

36.2%

99.4%

37.6%

87.8%

30s (%)

43.9%

99.4%

44.4%

87.8%

40s (%)

19.1%

99.4%

17.0%

87.8%

50s (%)

0.8%

99.4%

0.9%

87.8%

60s (%)

0.0%

99.4%

0.0%

87.8%

7,711,000

100%

-

-

Male

6.3%

100%

-

-

Female

100%

100%

-

-

Total

100%

100%

-

-

Male

0

100%

-

-

Female

69

100%

-

-

age

Total(JPY)% of employees taking childcare leave

Return to work ratio after childcare leave
No. of employees working shorter hours
for childcare reasons% of employees taking stress test

Total

65.0%

100%

-

-

% of employees who responded they aresatisfied with their job in the stress test

Total

87.0%

100%

-

-

% of employees taking regular medical checkups

Total

98.0%

100%

-

-

No. of employees using workfrom home program

Total

1,634

100%

-

-

Ratio (%)

96.0%

100%

-

-

(Utilization rate during recommended remote work periods,
such as the state of emergency declarations)*Employees of a consolidated subsidiary that is certified as special-purpose subsidiaries are covered. (As of June 1, 2021)

129

E SG Data

Emissions Intensity per Net Sales *3

GHG Emissions [t-CO2]

ESG

04

Climate Change Engagement

Scopes *2

FY2019FY2020

FY2021

Scope 10

00

Scope 2（Market-based）

6,023

6,155

8,480

Scope 2（Location-based）

5,739

5,856

8,033

Scope 319,755

11,403

7,141

Total GHG Emissions（Market-based）

25,77817,55815,621

Total GHG Emissions（Location-based）

25,494

17,25915,174FY2019FY2020

FY2021

Emissions intensity in t-CO2
per net sales(t-CO2/million yen)*market-based Scope 2

0.01880.01660.0120Emissions intensity in t-CO2
per net sales (t-CO2/million yen)*location-based Scope 2

0.01830.01420.0113453,611478,566

666,460

0.0142

666,460

Consolidated net sales（million yen）

0.0183

Scope 3 Emissions per Category（ % ）Due to the nature of our business, which is mainly in the Internet
domain, the calculation of CO2 emissions covers emissions fromour main domestic offices, emissions from the data centers forthe operation of the internet services we provide, employees'
commuting, and business trips, etc. As a result of the consolidationof dispersed offices from March 2019 and a decrease in travel andbusiness expenses due to the encouragement of telecommuting
at the time of spread of coronavirus infection, total emissions(location-based) decreased by 35% in FY2020 compared to
FY2019 and by 20% in FY2021 compared to the previous year. In
addition, the emissions intensity per net sales (t-CO2/million yen,location-based) for FY2021 is very low at 0.0113. We expect toexpand our business continuously in coming years and increase
the number of employees accordingly. However, we will strive to
reduce the emissions intensity per net sales (t-CO2/million yen) byimproving our business efficiency and work environment.

FY2019FY2020

FY2021

Purchased Goods and Services

17%

18%

31%

Fuel- and energyrelated activities

6%

9%

17%

Category

1
3(not included in Scope 1 or Scope 2)

5

Waste generated in operations

1%

0.3%

1%

6

Business travel

69%

58%

32%

7

Employee commuting

7%

15%

19%

453,611

FY2019478,566

FY20200.0113

FY2021

Consolidated net sales（million yen）
Emissions intensity per net sales（t-CO2/million yen）

*1 Scope of coverage Scope 2 and category 1，3，5，6，7 of Scope 3*2 Scopes
Scope 1 Direct emissions from our owned or controlled sources such as offices and data centers. (Due to the combustion of gases and other fuels)
Scope 2 Indirect emissions from the use of electricity and heat supplied by other companies in our main domestic offices and data centers.
Scope 3 Indirect emissions other than Scope 1 and 2（Applicable categories only）*3 Emissions intensity per net sales:（Scope1＋2 emissions）/Consolidated net sales（million yen）

05

133Fa c t s

05

Financial Information

134

Fa c t s

05

Financial Information

Consolidated Sales

Consolidated OP
104.3 billion yen (up 208.1% YoY)
Profits increased 3.1 times year over year driven by the game business.

666.4 billion yen (up 39.3% YoY)
All segments performed well and achieved a record high sales.

666.4 B

104.3 B

yen

yen

453.6

478.5

419.5
371.3
310.6
254.3
205.2

3.2

6.3

26.7
10.8 16.2

43.2

60.1

93.8 96.6
76.0 87.0

119.5

141.1

32.7

162.4

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

14.3
1.7

2.6

4.3

5.5

4.6

4.4

9.3

36.7
30.7 30.1 30.8

33.8

22.2

17.4
10.3

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

-1.6

-0.1

-0.2

-0.1

135

Fa c t s

05

Financial Information

Management Index

Return to Shareholders
We aim to increase stock price over the medium to long-term and pay dividend continually.

We adopted “DOE *1 5% or more” as management index to maintain shareholder returns throughdividends or share buybacks, etc. during the investment phase.

Divident
Payout Ratio

ROE

Stock Price of CyberAgent vs Nikkei Stock Average*2

DOE

Total Dividend Amount
18

5.5 B
yen

15

245.2%

4.0

5.1%

38.1%

13.4 %

100.0 %

5.2 %

83.0%

7.8 % 38.1%

6.0 %

5.2% 5.0%

5.2 %

5.1%

4.0

4.1

4.2

10

5.1%
5

64.9 %
Nikkei Average

2.1%

2.6 %

13.4 %FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

FY2017 FY2018 FY2019 FY2020 FY2021

ROE

Dividend
Payout Ratio

DOE*1 DOE：Dividend on Equity (ROE x Dividend Payout Ratio)

Nikkei Stock Average
0

FY2017 FY2018 FY2019 FY2020 FY2021

FY2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20202001 2003 2005 2007 2009 20112013 2015 2017 2019 2021

*2 CyberAgent Inc. vs Nikkei Stock Average (Nikkei 225): Transition of stock price of CyberAgent vs Nikkei stock average.

136

Statements of Income (PL)Fa c t s

05

Financial Information(Unit: million yen)

FY2017FY2018FY2019FY2020

FY2021

Net sales

371,362

419,512453,611478,566

666,460

Operating income

30,70030,16330,82533,880104,381Non-operating income

387

372

535

519

861

Non-operating expenses

2,346

1,970

867

536

548

Ordinary income

28,741

28,56530,49333,863

104,694

668

981

1,912

88

2,201

4,731

5,498

12,985

5,749

6,173

24,67824,047

19,42028,202

100,722

Profit attributable to non-controlling interests

8,274

5,266

4,368

7,648

25,117

Profit attributable to shareholders of parent

4,024

4,849

1,694

6,608

41,553Net Income

12,298

10,116

6,062

14,257

66,671

Comprehensive income

14,501

11,416

5,670

20,16665,376Extraordinary income
Extraordinary loss
Income before income taxes
and minority interests

137

Balance Sheet (BS)Cash Flow Statement (CF)Fa c t s

05

Financial Information(Unit: million yen)

FY2017FY2018FY2019FY2020

FY2021

Current assets

117,010

170,411

168,662

203,674

301,650

Non-current assets

46,99855,021

56,172

57,04780,885

Total assets

164,009

225,484

224,876

260,766

382,578

Current liabilities

62,79972,44970,74987,867140,714

Non-current liabilities

2,423

43,784

43,77445,22047,718

Capital stock

7,203

7,203

7,203

7,203

7,203

Total shareholders'equity74,672

76,12974,01578,466

119,128

Total net assets

98,785109,250

110,352

127,678

194,145

48.1

36.2

35.2

34.3

33.7

Equity capital raito(%)※"Partial Amendments to Accounting Standard for Tax Effect Accounting, etc." is applied from FY2019.The change of accounting standard took effect retroactively to FY2018.

(Unit: million yen)

FY2017FY2018FY2019FY2020

FY2021

Cash flow fromoperating activities

21,62428,394

14,91737,028109,609

Cash flow frominvesting activities- 20,396- 22,410- 18,000- 16,621- 28,537

Cash flow fromfinancing activities- 7,233

39,748- 4,662- 2,590374

Cash and cash
equivalents at
the end of period

46,61392,37984,563102,368

184,082

138

SG&A Expenses

No. of Employees

Fa c t s

05

Financial Information

127.6B

Special incentives

yen

Other*

1.4

employees

Headquarters
Other

Sales related costs
Office costs

106.7

102.4

99.8

Personnel
Advertisement costs

6,089

Investment Development

1.4

33.6

92.2

Game
Media

27.0

28.5

28.7

21.3
4.8
6.5

5.0

5.1

7.8

8.5

27.5

30.8

33.0

4,988

Internet Ad

4,543

6.1

17
336

8.9

406

6.3

15
350
503

36.1

11
370

13
374

730

605
608

2,150
1,453

8.7

5,282

12
395

5,493

1,612

1,826

1,346

31.6
1,778

1,900

1,883

1,871

1,979

767

798

804

823

41.2
32.0

29.1

27.2

29.9
660

FY2017FY2018*Other: Outsourcing expenses, research and development expenses,
external standard taxation, entertainment expenses, etc.

FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021

139

Fa c t s

05

Company Overview

140

Company Over viewFa c t s

05

VisionTo create the 21st century's
leading company

141

Company Over view

05
Fa c t s

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.

Mission Statement

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.

142

General Information

Fa c t s

05

Company Over view

Company Name

CyberAgent, Inc.

Office Locations

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

Address

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

China (Beiing),

Representative Director

Susumu Fujita

Taiwan (Taipei),Foundation

March 18, 1998

Korea (Seoul),

Capital7,203 million yen (As of end of September, 2021))

Employment Headcount6,089 (As of the end of September, 2021)

AGM

DecemberBusiness Portfolio

Media Business
Internet Advertising BusinessGame Business
Investment Development Business

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

143

Company Over view

Stock Information

Fa c t s

05

Top Holders

Listed Market

First Section of the Tokyo Stock Exchange

Code

4751

Number of Shares Outstandin

505,706,400 shares

Number of Shareholder

39,873* A s of September 30, 2021

Type of Shareholders

2.8 %

0.1 %
0.4 %

25.2 %
Type of
Shareholders

45.6%

Name

Number of Share s

% O/S

1

Susumu Fujita

88,961,600

17.6 %

2

The Master Trust Bank of Japan,

78,070,900

15.4 %

3

Custody Bank of Japan, Ltd.

29,573,200

5.8 %

4

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

16,530,502

3.3 %

5

THE BANK OF NEW YORK MELLON 140051

12,263,300

2.4 %

6

SSBTC CLIENT OMNIBUS ACCOUNT

11,324,285

2.2 %

7

JP MORGAN CHASE BANK 385632

8,683,542

1.7 %

8

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

7,775,500

1.5 %

9

BNYM AS AGT/CLTS 10 PERCENT

6,791,750

1.3 %

10

STATE STREET BANK AND TRUST COMPANY 505225

6,479,616

1.3 %*As of September 30, 2021
*The number of Tresuary stocks is 251,404

Large Shareholding Report* As of September 30, 2021

Institution

25.9 %
Foreign Institutions and Individuals

Financial Institutions

Individual,other

Treasury Stocks

Financial Institutions

Domestic Corporations% O/S

Submit ting Date

Baillie Gifford & Co *9.84 %

January 22, 2021

Sumitomo Mitsui Trust Asset Management Co., Ltd. *6.07 %

December 6, 2021

Nomura Asset Management Co.,Ltd.*5.39 %

October 6, 2020BlackRock Japan Co., Ltd. *5.03 %

February 6, 2019

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

144

Fa c t s

05

Company Over view

Investor Relations Activities

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

Inclusions

FY2021 Summary of Activities

Number of Meetings with Institutional Investors

Nikkei Stock Average

Nikkei Stock Index 300

Nikkei 500 Stock Average

Japan New Economy
Index

MSCI Japan ESG SelectLeaders Index

MSCI Japan Empowering
Women Select Index

MSCI Japan Empowering
Women Index (WIN)MSCI Japan Index

MSCI ACWI Index

FTSE All-World Index

FTSE JAPAN Index

S&P/JPX Carbon
Efficient Index

ESG Rating

1,253
Number of Videos on IR channels

26 (as of end of November 2021)

Sustainalytics
Percentage of Institutional Investors by Region

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

6%15 %Source: Sustainalytics Company ESG Risk Ratings https://www.
sustainalytics.com/esg-rating/cyberagent-inc/1014368441
THE USE BY CyberAgent, Inc. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA,AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF CyberAgent,
Inc. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATIONPROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI.

35 %

44 %
■ Japan (Includes sell-side analysts)■ ASIA excl.Japan■ North America■ Europe

145

Strengthening Communication with our Investor Website

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

Fa c t s

05

Company Over view

IR Channel

Go to IR Channel→

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

Become a Dreamer Behind the Scene CyberHuman Productions,Inc

Episode 23
AI for Effective Advertising

Episode 22
Evolving Ad Creative of CyberAgent

Episode 20
Digital Ads Make a Quantum Leap with AI

146

Find us on social media

Fa c t s

05

Company Over view

LINE

CEO Susumu Fujita on Twitter@cyberagent_ir

twitter.com/susumu_fujita

Facebook

Twitter

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

twitter.com/CyberAgent_PR

Youtubeyoutube.com/c/cyberagentoﬃcial

147

Fa c t s

05

Company Over view

Disclosure Policy

Basic policy for disclosure
CyberAgent, Inc. ( 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. Simultaneously, the Company provides
prompt and proactive disclosure of material information that is not subject to the timely disclosure regulations, which
could influence investors' investment decisions.

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

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

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

Contact
IR&SR Division, CyberAgent, Inc.

Investor Inquiries

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Forward-looking statement
The future information, such as the earnings forecast, written in this document is based
upon the currently available information, which involves risks and uncertainties. Therecan be no assurance that forward-looking statements will prove accurate or achieved, as
actual results may differ materially from those anticipated in such statements.