financial results for the fiscal year ended may 2021
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Copyright © UUUM Co.,Ltd. All rights reserved. 2
1. Overview of Results for FYE May 2021
2. Future Growth Strategies
3. FYE May 2022 Forecast
4. Appendix
INDEX
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Overview of Results for FYE May 2021
3Copyright © UUUM Co.,Ltd. All rights reserved.
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Despite negative factors due to the spread of COVID-19, we achieved our initial plan through improved profitability in our advertising business stemming from an increase in integrated proposals and cost controls through the use of remote work.
Overview of Results for FYE May 2021
Sluggish demand for advertising placements (particularly in Q1)
Cancellations and postponements of tie-ups involving on-location filming and events due to three separate state of emergency declarations
Postponements of offline events through the year
We absorbed the impact of
decreases sales, achieving our initial plan for
operating profit
Impact of COVID-19
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Earnings Highlights, FYE May 2021
(million yen)
FYE May 2021Full year results
FYE May 2020Full year results
Year on year
FYE May 2021 plan (As of Jul. 2020)
Versus plan
Net Sales 24,488 22,460 109% 28,600 86%
Gross Profit 6,500 6,204 105% 7,550 86%
SG&A 5,684 5,210 109% 6,750 84%
Operating Profit 816 994 82% 800 102%
Net income attributable to owners of the parent
549 359 153% 490 112%
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1,290 1,381 1,755 2,254 2,382
2,803 3,020 3,484
3,070 2,975 3,408 3,493 3,205 3,446 3,677 3,973
781 718 957
1,202 1,133 1,156 1,107
1,474 1,603 1,459
1,449 1,329 1,130
1,816 1,6391,995
212 294
292
225 548
432 427
796 588 748
779 360
400
589 774
824
106 91
90
86 114
178 194
479 247 229
212
510
264
259254
246
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Q3, FYEMay 2020
Q4, FYEMay 2020
Q1, FYEMay 2021
Q2, FYEMay 2021
Q3, FYEMay 2021
Q4, FYEMay 2021
AdSense (YouTube revenues)
Advertising (sponsored video, etc.)
Creator Support, Other (merchandise, events, music, etc.)
UUUM services (UUUM owned channels, games, etc.)5,411
Sales by Quarter
Sales grew greatly compared to Q3, despite continuous impact from emergency declaration (Units: million yen)
2,3882,4853,094
3,7684,177
4,569
5,5084,747
6,233 5,8485,693
4,998
6,1096,344
7,038
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Gross Profit by Quarter
Gross profit also grew as sales recovered compared to Q3
727 744864
1,069 1,202
1,272 1,282
1,651 1,626 1,536 1,568 1,473
1,362
1,6581,583
1,896
0
175
350
525
700
875
1050
1225
1400
1575
1750
1925
2100
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Q3, FYEMay 2020
Q4, FYEMay 2020
Q1, FYEMay 2021
Q2, FYEMay 2021
Q3, FYEMay 2021
Q4, FYEMay 2021
(Units: million yen)
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293 302 344 368 431 494 515617 708 664 678 681 697 766 767 846
58 61 63 6772
77 7784
84 85182 162 149
149 149149
3931
14 39
10039 31
29 65 5348 61
56
4998
95 7993
236 79 11394
21292
121 119123
825
25
25 2525
25
2525 25
25
137 146150
240246 204
255
339
268 268309
358
300300 290
347
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Q3, FYEMay 2020
Q4, FYEMay 2020
Q1, FYEMay 2021
Q2, FYEMay 2021
Q3, FYEMay 2021
Q4, FYEMay 2021
Other expenseAmortization related to acquisitionContracting expenseAdvertising and promotion expenseRent expensePersonnel expense
1,316(Including 39 in new business-
related expenses and 72 in strategic investment)
1,410(Including 60 in new
business-related expenses and 95 in strategic
investment)
1,411(Including 52 in new
business-related expenses and 93 in
strategic investment)
1,546(Including 54 in new
business-related expenses and 99 in
strategic investment)
610(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)
1,203(Including 34 in new
business-related expenses)
1,185(Including 54 in new
business-related expenses)
1,318(Including 61 in new
business-related expenses)
1,503(Including 180 in new
business-related expenses)
Increase in provision for bonuses(increasing along with operating profit) mainly accounting for personnel expense increase
Selling, General, and Administrative Expenses by Quarter
(Units: million yen)
Note: Strategic investment figures have been revised to SG&A based figures, previously including COGS figures. New business-related figures have also been revised newly including costs related to FORO.
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Operating Profit by Quarter
Operating profit recovered from Q3, exceeding company plan
117 142 200 257 326 395276 250
453351
250
-30
46248 172
350
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Q3, FYEMay 2020
Q4, FYEMay 2020
Q1, FYEMay 2021
Q2, FYEMay 2021
Q3, FYEMay 2021
Q4, FYEMay 2021
Gross profit
SG&A
(Units: million yen)
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Future Growth Strategies
10Copyright © UUUM Co.,Ltd. All rights reserved.
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Our Industry Environment
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Ad Budgets in Major Advertising Markets in Japan
Online Advertising Market is Already Comparable to Traditional Media
(100 million yen)
-1% -2% -3%
-11%
-5%-7%
-5%
-19%
-9% -9% -9%
-27%
0%
-1% -1%
-15%
TV Newspaper Magazine Radio
842 1,374
1,843 2,592
2,954
3,889 4,187 4,833
5,846
6,856
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 20252017 2018 2019 2020
Source: Japanese Advertising Revenues, Dentsu Inc. Source: CyberAgent, Inc. research
Advertising Market Growth by Four Mass Media Categories
Video Advertising Market
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We are in an era where all individuals have become a form of media
Creators From the Early Days of Online Content
Numerous Individuals represented by Entertainers and Corporations delivering messages through SNS
Personal Media has Become Commonplace, Regardless of Individual Attributes or Affiliations
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An era in which individual economic
spheres are established
An Era in Which a Variety of Individual Economic Spheres Develop to Match the Diversity of Individuals
Apparel Brands
An era in which the individual economic sphere is the norm
Diversification of markets to match the diversity
of individuals
FitnessBrands
CosmeticsBrands
Game Supervision
Athletic Production
Artist Activities
TV Commercial Production
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UUUM Strategy
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Major Initiatives for FYE May 2022
Generate an Evolution in Creator Support
Initiative1
Delve Deeper Into Business Opportunities
With Top Creators
Expand Support Models Laterally to a Wider Range
of Offices, Individuals
Expand Proposals for Integrated Solutions in
Japan and overseasExpand Investment in
New FieldsChange Management System to Clarify Responsibilities and Make Decisions More Rapidly
Initiative2
Initiative3
Initiative4
Initiative5
Initiative6
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Partnerships M&A
Fan EngagementCreator
Diversification and Specialization of support plans proceeding as we adjust to the needs of the times
Generate an Evolution in Creator SupportInitiative 1
• Support for Activities on Other Social Media
• Events• Musical activities
Channel Development• Channel Analysis• Editing/Planning Support• Film Studios
UUUM Academy
Content Management
Product Sales
Financial Support• Asset Management• Tax Consulting• Tax Filing• Backyard Agency Services
Professional support meeting needs in different genres
GenreA
GenreB
GenreC
Facilitate and Advance Tie-Up Projects
• Product Design• Original Brand
Goods• Brand Collaborations
• Compliance Training• Content Management• Game Licensing• Anti-Defamation Measures
Partner Companies
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New Fields
Other
• Create original brands and license products to other companies• Explore possibilities for expanding into other/new business fields
Developing new businesses with top-creators
Delve Deeper Into Business Opportunities With Top CreatorsInitiative 2
Original Brands
¥0.5 billion
¥1.8 billion
FYE May 21 FYE May 22(Forecast)
Brand/Licensing Sales ForecastBusiness Development
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Beyond YouTubers, we a providing support to individuals in a variety of fields
YouTubersMusicians
Instagrammers Idols
Livestreamers
CelebritiesAthletes
TikTokers
Support
Channel Development Facilitate and Advance Tie-Up Projects Fan Engagement Product Sales
Content Management UUUM AcademyFinancial Support
Creator platforms
The Creators We Support are Becoming More DiversifiedInitiative 3
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UUUM Integrated Solutions
Public Relations
Promotion
Planning
Content
Plan ProposalsOptimal Plans
Production Organization
Knowledge accumulated through more than 3,500 tie-up projects annually
AdvertisingReporting
Event ManagementProduct Supervision
Accelerating overseas client base as we expand integrated solutions proposals in our tie-up advertising business
Expand Proposals for Integrated Solutions in Japan and overseasInitiative 4
Planning Design
Casting
Creative Productions
Product Development
Events
Video Partnerships
Report Analysis
Media Buying
Social Media Posts
Advertising sales accounting for overseas clients
¥250mn
¥580mn
¥1,260mn
FYE May 19 FYE May 20 FYE May 21
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More than 6 million downloads
More than 6 million downloads
Leverage the successes and strengths developed through games such as Datsugoku Gokko and Aooni Online to take on the challenge of major title development
The Challenge to Develop Major Titles
Planning skills with an eye toward game livestreaming,
collaborations with game livestreamers
UUUM Strengths
Take on the Challenge to Develop Major Titles in the Games FieldInitiative 5
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Launch of NFT platform「HABET」Initiative 5
Since 2013, we have supported creators and influencers, advocating for an era in which individuals are media. We believe in the formation of personal economic spheres, and that the sharing of a person's communications and activities all qualify as content.
We will begin developing an NFT platform to deliver this intangible content to the world in new ways.
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Many Content Partners to ParticipateInitiative 5
Content Partners
ownership
Individuals providing
content in the future Individuals
YouTube Creators(HIKAKIN, Hajime, Fischer’s, Nobaman,
One-Co Soba Noodles etc.)
Our goal is to create a platform where individuals can create and provide their own NFT
ownership
ownershipownership
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Split off three businesses as wholly owned subsidiaries to improve management speed and accelerate initiatives with external parties.
Convert 3 Businesses to Subsidiaries2
Change Management System to Clarify Responsibilities and Make Decisions More Rapidly Initiative 6
P2C Studio Co., Ltd.(Products, E-Commerce)
UUUM GOLF Co., Ltd.(UUUM GOLF business)
FORO Co., Ltd.(FOLLOW ME/HABET business)
Board of Directors(two internal, three external)
Executive Committee
Adopt Executive Officer System
In light of the diversification and complexity of our businesses, we intend to improve management speed by shifting executive and performance responsibilities to the Executive Committee and individual executive officers. Simplify the board of directors and focus on monitoring.
1
Board of Directors(six internal,
three external)
We will continue to grow as a company that offers kodomogokoro to the world.
Creator platforms
Creator Management
Events
Creator platforms NFT
Music
Game
Developing new businesses with top-creators
Events
Expansion of platforms
EC
2013(Establishment)
Current
Tie-Up advertising
Merchandise
FOLLOWME
CREAS
Merchandise
Tie-Up advertising
Apparel
CosmeticsNew
Business
Expanding content among platforms
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Forecast for FYE May 2022
26Copyright © UUUM Co.,Ltd. All rights reserved.
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Main Points of the FYE May 2022 Forecast
• FYE May 2022 will be a year of aggressive investment in businesses that showed signs of growth in FYE May 2021. We expect these investments to lead to growth in FYE May 2023 and beyond.
• More specifically, we intend to invest in creator brands, PF revenue outside of YouTube, music publishing, NFT, etc. We expect these businesses to start contributing beginning in the second half of this fiscal year at the earliest.
• Operating income per employee is a key KPI, and we intend to improve this measure by delving deeper into business opportunities with top creators, as well as by developing support for a wide range of individuals.
• We consider AdSense to be our revenue base, and we will control SG&A expenses appropriately within AdSense revenue.
• We plan to apply「Accounting Standards for Revenue Recognition」from FYE May 2022 which will affect our sales
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Results Forecast for FYE May 2022
(million yen)
Results Forecast for FYE May 2022
Actual results for FYE May 2021 Year-on-year
Net Sales 24,500 24,488 -
(Excluding Impacts from Revenue
Recognition Change)27,400 24,488 112%
Gross profit 7,600 6,500 117%
Operating profit 830 816 102%Net income attributable to owners of the parent
470 549 86%
Note1: We plan net income attributable to owners of the parent to decrease in FYE May 2022 as we recorded gains from subsidies applied to our Miyazaki office in FYE May 2021 and expect increase in effective tax rate due to recorded losses in our subsidiaries.Note2: We plan to apply「Accounting Standards for Revenue Recognition」from FYE May 2022 which will affect our sales
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14,301
6,580
2,5861,022
14,400
7,500
4,400
1,100
AdSense Advertising Creator support Other Original contents
FYE May 2021 Forecast for FYE May 2022
Sales Forecast by Service
+1%
+8%+70%
+14%
(Units: million yen)
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SG&A Forecast
(million yen)
FYE May 2022 Forecast
FYE May 2021 Results YoY
SG&A 6,770 5,684 119%
(New business-related) 305 204 150%
(Related to strategic investment in creators) 452 360 126%
SG&A, excluding new business/strategic investment
in creators6,013 5,120 117%
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8
13
20
8.16 8.3
13
20
FYE May 21 FYE May 22 FYE May 23 FYE May 24
As of July 2020 Current Outlook
Seeding Period Investment Period Business Expansion Period
Medium-Term Management Plan Targets
(100 million yen)
We intend to invest in growth businesses throughout FYE May 2022, including original brands and NFT. Therefore, we will postpone medium-term target achievement by one year, looking to ride a growth trajectory beginning FYE March 2023.
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Appendix
32Copyright © UUUM Co.,Ltd. All rights reserved.
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115% 115%124%
86%
60%79% 69% 68%
84% 88%
135%
173%
127%137% 138% 142%
211%
241%
101% 100% 105%
99% 101%88% 86%
94%104%
97%
108% 109% 101%118% 115% 116%
136% 144%
Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21
Our Tie-Up advertising sales compared to the industry (year on year growth)
※Industry is based on Internet Advertisement sales within「Current Survey of Selected Service Industries」by METI.
UUUM
Industry
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Trend in Number of Affiliated Channels at End of the Quarter and Three-Month Total Number of Video Views
Temporary increase due to stay home effect during emergency declaration period
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No. of Affiliated Channels by Subscribers
48109
197
481
58137
233
580
1m+ 500k+ 300k+ 100k+
As of Jun 2020 As of Jun 2021
No. of YouTube Channel SubscribersNote: Includes partner channels
Channels with 1m+ subscribers increased from 48 to 58 over 12 months
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Employees and Temporary Employees, End of Quarter
175 195 214 249 276 297 318 385 415 439 444 483 519 530 530 554
16 22 17 26
28 37 31
24 33 30 31
19 23 28 33 27
191 217 231 275 304 334 349
409 448 469 475 502 542 558 563
581
Q1, FYEMay 2018
Q2, FYEMay 2018
Q3, FYEMay 2018
Q4, FYEMay 2018
Q1, FYEMay 2019
Q2, FYEMay 2019
Q3, FYEMay 2019
Q4, FYEMay 2019
Q1, FYEMay 2020
Q2, FYEMay 2020
Q3, FYEMay 2020
Q4, FYEMay 2020
Q1, FYEMay 2021
Q2, FYEMay 2021
Q3, FYEMay 2021
Q4, FYEMay 2021
Employees (including directors)Temporary employees
(Units: employees)
top related