overview of results for fye may 2019 · 2019-12-04 · q3, fye may 2017. q4, fye may 2017. q1, fye...
TRANSCRIPT
Copyright © UUUM Co.,Ltd. All rights reserved. 2
1. Overview of Results for FYE May 2019
2. FYE May 2019 Review
3. The Future Industry Environment and the UUUM Long-Term Vision
4. FYE May 2020 Forecast
INDEX
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Overview of Results for FYE May 2019
3Copyright © UUUM Co.,Ltd. All rights reserved.
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Earnings Highlights, Q4 FYE May 2019
(million yen)
Q4, FYE May 2019(Mar.2019-May.2019)
Q4, FYE May 2018(Mar.2018-May.2018) Year-on-Year
Net Sales 6,233 3,768 165%
Gross Profit 1,651 1,069 154%
SG&A 1,401 812 173%
Operating Profit 250 257 97%
Net Income 271 149 182%
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Earnings Highlights, FYE May 2019
(million yen)
FYE May 2019Full year results
FYE May 2018Full year results
Year on year
FYE May 2019 plan (As of Jan. 2019)
Versus plan
Net Sales 19,726 11,736 168% 19,000 104%
Gross Profit 5,407 3,405 159% 5,300 102%
SG&A 4,160 2,688 155% 4,200 99%
Operating Profit 1,247 717 174% 1,100 113%
(Op. margin) (6.3%) (6.1%) (5.8%)
Net Income 889 406 219% 660 135%
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735 829 1,110 1,358 1,290 1,381 1,755
2,254 2,382 2,803 3,020
3,484
480 423 549
749 781 718
957
1,202 1,133 1,156
1,107
1,474
98 71 177
104 212 294
292
225 548
432 427
796
73 62
84 82 106 91
90
86 114
178 194
479
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
UUUM services (UUUM owned channels, games, etc.)Creator Support, Other (merchandise, events, music, etc.)Advertising (sponsored video, etc.)AdSense (YouTube revenues)
Sales by Quarter
We achieved sales growth in Q4, posting a year-on-year 165% increase. (Units: million yen)
1,385 1,3851,921
2,293 2,388 2,4853,094
3,7684,177
4,569
6,233
4,747
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Gross Profit by Quarter
Q4 gross profit increased with the increase in sales, achieving year-on-year growth of 154%.
398 364
532617
727 744864
1,069 1,202
1,272 1,282
1,651
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
(Units: million yen)
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129 162 191 265 293 302 344 368 431 494 515617
16 29 3958 58 61 63 67
7277 77
84
105 55 44 35 3931
14 39
100
23
52 68 49 72 9895 79
93
236
825
25
5880 97
194 137 146150
240246 204
255
339
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Other expenseAmortization related to acquisitionContracting expenseAdvertising and promotion expenseRent expensePersonnel expense
224304 351
673610
(Including 57 in new business-
related expenses)
603(Including 31 in new business-
related expenses)
664(Including 60 in new business-
related expenses)
812(Including 72 in new business-
related expenses)
875(Including 61 in new business-
related expenses)
877(Including 37 in new business-
related expenses)
1,005(Including 61 in new business-
related expenses)
1,401(Including 115 in
new business-related expenses)
Q4 SG&A rose year on year, mainly due to personnel expense, advertising and promotion expense for Lemonade sales promotions, and contracting expense in connection with new businesses.
Selling, General, and Administrative Expenses by Quarter
(Units: million yen)
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Operating Profit by Quarter
Q4 operating profit 97% versus prior year, mainly due to an increase in SG&A for new businesses and sales promotions. These higher expenses offset increased gross profit.
17461
181
-57
117 142 200 257 326 395276 250
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Gross profit
SG&A
(Units: million yen)
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Employees and Temporary Employees, End of Quarter
104 127 143 152 175 195 214 249 276 297 318
385
3 5
6 9 16
22 17
26 28
37 31
24
107 132 149 161
191 217 231
275 304
334 349
409
Q1, FYEMay 2017
Q2, FYEMay 2017
Q3, FYEMay 2017
Q4, FYEMay 2017
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Temorary employees
Employees (including directors)
(Units: employees)
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Trend in Number of Affiliated Channels at End of the Quarter and Three-Month Total Number of Video Views
863 1,0871,589
2,0332,602 2,895
3,8394,510
5,011 5,249
6,2286,743
7,446 7,592
9,136 9,489
10,706
9,532
11,04411,221
52 63782 1,141 1,290 1,460 1,744
2,2092,871
3,4314,066 4,430 4,731 5,020 5,252
5,8776,538
7,0907,586
8,115
Q1, FYE
May 2015
Q2, FYE
May 2015
Q3, FYE
May 2015
Q4, FYE
May 2015
Q1, FYE
May 2016
Q2, FYE
May 2016
Q3, FYE
May 2016
Q4, FYE
May 2016
Q1, FYE
May 2017
Q2, FYE
May 2017
Q3, FYE
May 2017
Q4, FYE
May 2017
Q1, FYE
May 2018
Q2, FYE
May 2018
Q3, FYE
May 2018
Q4, FYE
May 2018
Q1, FYE
May 2019
Q2, FYE
May 2019
Q3, FYE
May 2019
Q4, FYE
May 2019
Total video views in 3 months (millions)
Number of channels, end of period
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1はじめしゃちょー(hajime) 8,021,769
2HikakinTV 7,468,010
3Fischer's-フィッシャーズ- 5,609,918
4Yuka Kinoshita木下ゆうか 5,270,569
5avex 4,772,233
6東海オンエア 4,578,923
7HikakinGames 4,260,518
8SUSHI RAMEN【Riku】 4,130,580
9水溜りボンド 3,991,777
10JunsKitchen 3,881,985
■ UUUMクリエイター登録者数ランキングランキング チャンネル名 登録者
14 SeikinTV 3,605,63721 ワタナベマホト 2,668,45522 桐崎栄三/きりざきえいじ 2,633,65025 ポッキー / PockySweets 2,581,61429 圧倒的不審者の極み! 2,431,37730 HIKAKIN 2,410,00831 はじめしゃちょー2 (hajime) 2,391,20935 おるたなChannel 2,280,24737 東海オンエアの控え室 2,262,72438 Fischer's-セカンダリ- 2,235,63750 HIMAWARIちゃんねる 1,931,29454 ボンボンTV 1,837,63157 MAHOTO 1,760,59359 はじめしゃちょーの畑 1,711,11060 カズチャンネル/Kazu Channel 1,699,83263 TOMIKKU NET 1,663,52765 アバンティーズ 1,620,75066 Hane & Mari's World Japan Kids TV 1,618,17467 70cleam 1,593,40669 PDSKabushikiGaisha 1,572,82572 瀬戸弘司 / Koji Seto 1,551,41682 カズゲームズ/Gaming Kazu 1,441,05084 水溜りボンドの日常 1,420,91799 はなお 1,324,000
100 ヴァンゆんチャンネル/ Powered by VAMBI 1,318,115
■ 登録者数総合ランキング TOP10
7/10
32/100
Channel Subscription Ranking■ TOP 10 ranking ■ TOP 100 ranking
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FYE May 2019 Overview
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Exclusive Channels by Channel Subscribers
Over 100,000 Over 500,000 Over 1 million
235
294
5580
27 43
+59
+25+16
Channel subscribers
■ As of May 2018
■ As of May 2019
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Video Uploads by Our Creators
FYE May 2018
+12%
FYE May 2019
323,226videos
Monthly average26,936 videos
287,406 videos
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Sales by Market Sector for Advertising Tie-Ups
FYE May 2018 FYE May 2019
Other
Fashion
Government offices, groups
Distribution, retail
Information, Communications, Broadcasting
Foods, beverages
Medicine, cosmetics
Other entertainment
Toys
Apps, IT
Games
Except for games, ratios for all sectors grew significantly.
+33%
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Creators Selling Merchandise, Units Sold
Creators Selling Merchandise
141Creators
190Creators
Merchandise Units Sold
+34%
118Kunits
305Kunits
+158%
FYE May 2018 FYE May 2019FYE May 2018 FYE May 2019
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Events and Attendees
Number of Events Held
21Performances
Number of Guests Attending
+257% +172%
36,000Attendees
98,000Attendees
75Performances
FYE May 2018 FYE May 2019FYE May 2018 FYE May 2019
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The Future Industry Environment and the UUUM Long-Term Vision
19Copyright © UUUM Co., Ltd. All rights reserved.
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Diversification in Media Caused by the Rise of the Internet
The Individualization of Media
Changes in the Business Environment to Date
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Changes in Video Media
Online Entertainment of the Past
Online Entertainment Today
Devices Content
TV
Smartphones
PC
TV
Devices Content
TVPrograms
TVPrograms
OnlineContent
The industry has gone from having only several TV programs to one in which online content has extended beyond the number of devices due to the popularization of the Internet and smart phones.
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(Minutes) TV Viewing Internet Use Newspaper Reading
Radio Listening
10-19
2013 120.4 99.1 0.6 0.1
2014 110.4 109.3 0.7 0.2
2015 112.9 112.2 0.2 2.6
2016 102.4 130.2 0.3 3.5
2017 83.9 128.8 0.3 1.5
20-29
2013 145.9 136.7 1.4 3.6
2014 132.7 151.3 2.4 9.4
2015 143.8 146.9 2.1 6.4
2016 130.7 155.9 1.4 16.8
2017 105.7 161.4 1.4 2.0
30-39
2013 175.9 87.8 5.8 17.7
2014 167.2 87.6 4.1 5.4
2015 162.7 105.3 3.5 15.3
2016 166.1 115.3 3.8 15.4
2017 136.9 120.4 3.5 4.3
The Steady Shift from TV to the Internet
(Minutes) TV Viewing Internet Use Newspaper Reading
Radio Listening
40-49
2013 156.7 70.0 8.6 22.6
2014 183.7 82.5 9.3 19.4
2015 168.1 93.5 8.8 13.7
2016 183.7 97.7 8.0 17.2
2017 170.1 108.3 6.3 12.0
50-59
2013 197.0 61.8 18.6 20.2
2014 198.6 68.0 16.3 13.5
2015 238.4 74.7 17.0 10.7
2016 197.6 85.5 14.4 19.8
2017 221.1 77.1 16.3 19.5
60-69
2013 276.8 36.7 28.0 20.5
2014 274.2 32.2 31.3 40.3
2015 280.2 35.7 29.6 30.6
2016 277.6 46.6 25.8 23.4
2017 272.9 38.1 25.9 17.3
Average Media Usage Time (Per Week Day) by Age group
Note: TV viewing is total of real-time and time-shifted viewing (source: White Paper Information and Communications in Japan)
Decreasing TV Viewing Time for 30s and Younger; Increasing Internet Usage
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Shift in Japanese Advertising Market Budgets
Video Advertising MarketAdvertising Market Growth by Four Mass Media Categories
Budgets in Japan’s Advertising Market Have Started Shifting Away From Traditional Media
(bn yen)
-1%
2%
-1%-2%
-6%
-4%-5%
-7%
-2%
-9% -9% -9%
-1%
3%
0%
-1%
TV Newspaper Magazine Radio
54 84
137 184
231 290
363 419
462 496
0
100
200
300
400
500
600
2015 2016 2017 2018 2019 2020 2021 2022 2023 20242015 2016 2017 2018
Source: Japanese Advertising Revenues, Dentsu Inc. Source: CyberAgent, Inc. research
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Terrestrial TV Pay video distribution service Free video distribution service
Commercial broadcasting NHK Amazon
Prime Hulu Netflix YouTube niconico AbemaTV GYAO!
All 95% 67% 11% 3% 3% 70% 14% 12% 11%
10-20 years 92% 59% 15% 7% 5% 84% 23% 13% 8%
30s 94% 53% 12% 4% 4% 80% 14% 12% 10%
40s 96% 61% 8% 2% 1% 65% 11% 15% 12%
50s 96% 77% 10% 2% 2% 69% 13% 14% 13%
60s 97% 82% 10% 2% 2% 57% 11% 7% 13%
Regularly viewed content services
Research: Joint study by MACROMILL, INC. (HoNote) and ShoeishaCo., Ltd (MarkeZine)Population surveyed: Men and women across Japan aged 18 to 69 years. Number of valid respondents: Sample of 1,000
Survey method: Internet research. Period of survey: December 2017
YouTube becomes a popular video media platform comparable to TV
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1はじめしゃちょー(hajime) 8,021,769
2HikakinTV 7,468,010
3Fischer's-フィッシャーズ- 5,609,918
4Yuka Kinoshita木下ゆうか 5,270,569
5avex 4,772,233
6東海オンエア 4,578,923
7HikakinGames 4,260,518
8SUSHI RAMEN【Riku】 4,130,580
9水溜りボンド 3,991,777
10JunsKitchen 3,881,985
■ UUUMクリエイター登録者数ランキングランキング チャンネル名 登録者
14 SeikinTV 3,605,63721 ワタナベマホト 2,668,45522 桐崎栄三/きりざきえいじ 2,633,65025 ポッキー / PockySweets 2,581,61429 圧倒的不審者の極み! 2,431,37730 HIKAKIN 2,410,00831 はじめしゃちょー2 (hajime) 2,391,20935 おるたなChannel 2,280,24737 東海オンエアの控え室 2,262,72438 Fischer's-セカンダリ- 2,235,63750 HIMAWARIちゃんねる 1,931,29454 ボンボンTV 1,837,63157 MAHOTO 1,760,59359 はじめしゃちょーの畑 1,711,11060 カズチャンネル/Kazu Channel 1,699,83263 TOMIKKU NET 1,663,52765 アバンティーズ 1,620,75066 Hane & Mari's World Japan Kids TV 1,618,17467 70cleam 1,593,40669 PDSKabushikiGaisha 1,572,82572 瀬戸弘司 / Koji Seto 1,551,41682 カズゲームズ/Gaming Kazu 1,441,05084 水溜りボンドの日常 1,420,91799 はなお 1,324,000
100 ヴァンゆんチャンネル/ Powered by VAMBI 1,318,115
■ 登録者数総合ランキング TOP10
7/10
32/100
Individuals Dominate YouTube Ranking■ TOP 10 ranking ■ TOP 100 ranking
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Shift in Time Spent from Portal Sites to Individual Content
Individual(Friends, Influencers)
Comparatively, ratio of time spent consuming individual content is
IncreasingPortal SitesComparatively, ratio of time spent using portal content is
Decrease in top page viewing ratios; increase in inflow from
social media properties
DecreasingIncrease in view of individual
content through video and photo posting, social media
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The Rise of the Internet Has Resulted in Unlimited Content
“Who” Has Posted is Becoming Much More Important Than “What” is Posted
Past Early Internet Today
Selecting content from a limited number of choices
Searching for content via portal sites
Follow favorite channels to view content
Content Channel
Searching for content is becoming impossible. Now, users give preference to content created by their favorite channels (content producers).
Portal Sites
TV Channels
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Advantage for Individual Content
Easy to Follow Individual Channels
All content is self-madePersonality shines through in the content
Individual Content Tells a Story That is Easy to
Identify With
Why?
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Increase of Individual Influence Leads to an Expansion of the Individualized Economy
Projected Changes in the Future Business Environment
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Problems With Traditional Industry Structures (1)
Individuals Cannot Reach Their Goals Without Belonging to an Agency or Company
CD SalesSponsored EventsTV Appearances
Consumers(Fans)
Labels, Studios
Apparel Companies
ApparelSales
SpecificDesigns
Debut
Musicians
Designers(Potential Big-Name Designers)
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16%
6%
33%
45%
Problems With Traditional Industry Structures (2)
Source: Digital Content White Paper 2017, Digital Content Association of Japan Source: Extract from Ongaku Shugi, Federation of Music Producers Japan
Content Creator Receives Only Small Revenue ShareEx. Animation
CreatorIllustrators, animators, script writers, authors, cartoonist, singer, song writer, choreographer, etc.
AggregatorAdvertising Agency, distributor, publisher, editor, record company, etc.
DistributorBroadcaster, theater, news, online distribution, bookstore, record store, etc.
Content Added Value (Contribution)
Profit Structure
Approx. ¥200 billion
Approx. ¥1.8 trillion
Master RoyaltiesEx. Music
12% to 16%
Artist
Master License
Copyright Fees
Music Publisher (3%) Lyricist (1.5%) Composer (1.5%)
Label
Production Cost Marketing and Promotions Management etc.
Distributor
Retailer25% to 27%
1%+
6%45%
33%
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Main Factor: Limited Channels and Media
Music
Books
Lyricist
Composer
Singer
Label CD Store
AuthorCartoonist
Publisher Agency Bookstores
TV Magazines Radio Newspapers
Creator Aggregator Distributor Consumers(Fans)
Channel Limitations
Media Limitations
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Consumers(Fans)
However, IT and Social Media Have Freed Creators From Limitations
Lyricist
Composer
Singer
AuthorCartoonist
Freedom from
Channel Limitations
Freedom from Media
Constraints
Online Music SalesCharge for Live Content Online
Book Sales Through EC SitesCharge for Content Online
Anyone can distribute content through social media to build a fan base without relying on mass media
Creator
Music
Books
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When Media Changes, Consumption Behavior ChangesA Structural Shift From a Mass Consumption to Diversified Consumption
Social MediaYouTube, Instagram, etc.(Different Content for Each)
TVRanking Sites
Search via Ranking and Portal SitesMainly BtoC
Direct purchase via link on social media siteSpread of CtoC
(Same Content for All)
The Past The Future
Everyone Watches the Same Content and Buys the Same
Goods
Diversified Consumption
Information Sources
PurchaseProcess
Information Sources
PurchaseProcess
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Media Individualization → Individuals Form Economies
Advertising Revenue as Media The Present
The Future
Individualized Media Creates Direct Business With Fans
Advertiser
Influencers
Fans
Content
Advertiser
Influencers
Fans
EC
Music
Events
Patron/Fan
Support
ContentDistribution
AdvertisingAdvertising
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Significant Growth of Non-Advertising Economy Overseas
Market Size: ¥1.9 trillion
Market Size: ¥50 billion
China
Japan
Mostly Advertising
Advertising
EC, Goods
Social Tipping
Other
ChinaJapan
Platform Agreements
Source: May 2019 PWC Consulting LLC Research (Estimate)
Comparison of Japanese and Chinese Influencer Markets
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The Past The Future
Summary: Individualized Economy Should Expand and Disrupt Traditional Corporate-Centric Economy
Companies
Individuals
• Limited number of companies owned distribution channels(New entry in some markets virtually impossible due to licensing and other regulations)
• Creating a user base required mass media coverage, advertising and promotions
• Can only achieve goals through a company/agency
• Even after joining, still subject to circumstances and decision-making of the company/agency
• Ultimately, only small percentage of revenue goes to the individual
• The decline of mass media influence has made it more difficult to generate reach and brand recognition, especially among the younger segment
• Individual creates their own fan base from which to conduct business
• In contrast to companies, the hurdle to success is relatively low; can compete in niche markets(Succeed with only a few hundred or a few thousand fans)
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The UUUM Long-Term Vision
Copyright © UUUM Co., Ltd. All rights reserved.
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The UUUM Business Model
Provide expertiseProvide training opportunities
Partner Companies
PartnershipsInvestments
M&A
Videography and editing support
BackyardAsset Support
Content managementMaking it possible to do what people want to do
Providing profit-making opportunities
FansEngagement
Strengthen
Creators
UUUM aims to become far and away the No.1 infrastructure provider supporting creators as we enter an expanding era of individualized economies.
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UUUM Strengths
Content Platforms
YouTube
TikTok
TV
Help Creators to Expand to Multi-Channel Platformsto Maximize Fan Engagement
Creators
Athletes
Artists
Idols
Culinary experts
IntellectualsMusicians
Photographers
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UUUM Aims to Work With Individual Creators to Change Current Industry Structures
Traditional Revenue Allocationin the Corporate-Centric Economy
Future Revenue Allocation inIndividualized Economies
Creators
Aggregators
Distributors
Creators
UUUM
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Advertising Market
Music Market
E-commerce market
Events Market
Education Market
・・・ ・ ・
Future Target Market Scale Overview
Shift to Individualized Economies
出所:「デジタルコンテンツ白書2017」(一般財団法人 デジタルコンテンツ協会)、経済産業省「平成30年度電子商取引に関する市場調査」、ライブ・エンタテインメント白書調査委員会「2017ライブ・エンタテインメント白書サマリー」
etc.
¥6 trillion
¥500 billion
¥500 billion
¥2 trillion
¥9 trillion Our TotalAddressable
Market
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Expand Economic Spheres, Grow Significant Revenues Outside Advertising
0%
2%
4%
6%
8%
10%
12%
14%
16%
FYE May 2017 FYE May 2018 FYE May 2019 FYE May 2020 Plan
Net Sales Ratio of Total SalesMerchandise・Expand no. of creators selling merchandise・Expand merchandise lineups・Expand brand collaborations・Expand sales opportunities combined with events・Launch creator-original brands
Events・Increase no. of creators with sponsored events・Expand scale of creator events・Move into live-streaming
Music・Launch labels・Launch, strengthen music team
Creator Support and Other SalesMeasures to Grow Sales
¥450mn
¥1.0bn
¥2.2bn
¥3.5bn
6%
9%
11%
13%
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Equity Tie-Up with piece of cake to Broaden Revenue Base
YouTube
InstagramOther
Platforms
Signed equity agreement today with piece of cake, operator of note.
Strengthen alliance with piece of cake to create and offer support to new influencers on note.
About noteCreator content distributor offering platforms for connecting creators and fans; reached 10 million active monthly users in January 2019.
Influencers Active Across a Variety of
Platforms
Expand economic spheresFinancial supportBackyardContent management
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Strategy to Achieve Our Long-Term Vision
1. Expand Base of Creators
2. Expand Individualized
Economies
3. Original Content
The Future
YouTube Instagram note And OtherPlatforms
Sponsored ContentAdsense
MerchandisingEventMusic
New Business
The Present
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Prioritizing Sales Growth (Market Growth) for the Time Being
Operating Profit Ratio
Sales
FYE May 17 FYE May 18 FYE May 19 Medium-Term Target Future
●Expanding base of creators●Expansion of individualized
economies●Original content
¥6.9 billion
¥11.7 billion
¥19.7 billion
5.1%6.1%
6.3%...and other initiatives to
expand and open new markets
15%
10%
Margin Expansion by Operating Leverage
Sales Growth Phase
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Forecast for FYE May 2020
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Results Forecast for FYE May 2020
(million yen)
Full year plan for FYE May 2020
Actual results for FYE May 2019 Year-on-year
Net Sales 26,000 19,726 132%
Gross profit 7,020 5,407 130%
SG&A 5,620 4,160 135%
Operating profit 1,400 1,247 112%
Net income 880 889 99%
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Sales Forecast by Service
11,690
4,870
2,203 964
15,361
5,807 3,475
1,357
AdSense Advertising Creator support Other Original contents
FYE May 2019 Forecast for FYE May 2020
+31%
+41%+58%
+19%
(Units: million yen)
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SG&A Forecast
(million yen)
FYE May 2020 Plan
FYE May 2019 Results YoY
SG&A 5,620 4,160 135%
(new business-related) 229 274 84%
(move-related expenses*) 241 0 NANot including new business-
related, move-relatedSG&A
5,150 3,886 133%
*Impact of paying both old and new office rents during move, cost of purchasing furniture and fixtures associated with move, moving costs, etc.