Annual Securities Report: Term 24

CyberAgent’s 24th fiscal year, ending September 2021, represents a period of substantial financial expansion and strategic consolidation. The company achieved consolidated net sales of 666.46 billion yen, marking a 39.3% increase, while operating profit surged by 208.1% to 104.38 billion yen. This growth was primarily fueled by the robust performance of the internet advertising segment and the successful contribution of new titles within the game development division, notably through subsidiary Cygames, which accounted for 33% of total consolidated sales.

The company maintains a diversified business model centered on three core pillars: internet advertising, game development, and the ABEMA media service. While the firm continues to prioritize long-term corporate value through strategic investments and talent development, it remains committed to a disciplined financial policy, targeting a dividend on equity (DOE) ratio of at least 5%. The fiscal year concluded with a strong liquidity position, reporting 184 billion yen in cash and cash equivalents and a significant increase in operating cash flow to 109.6 billion yen, despite recording 5.1 billion yen in impairment losses across specific service assets.

Governance and risk management remain central to the company’s operational framework. As an audit and supervisory committee-based company, CyberAgent utilizes independent outside directors to oversee management and ensure transparency in executive compensation. Key audit matters for the period included the valuation of loans to the subsidiary AbemaTV and the verification of revenue recognition processes. Looking forward, the company continues to navigate risks associated with market volatility, rapid business expansion, and evolving regulatory environments, while delegating specific decision-making authorities to internal executive offices to enhance operational agility and maintain its growth trajectory.