CyberAgent, Inc.

We would like to begin CyberAgent's FY2026 second quarter earnings briefing. This session is being video streamed. With respect to the content we will be sharing with you today, please refer to the disclaimer included in the presentation material. Our president, Yamauchi will take us through the results. This is President Yamauchi. I would like to take you through the FY2026 second quarter results. Overall, we had a very good result we very good quarter we saw record high sales and as the second quarter we saw record high second quarter op as well with respect for the media and ip business we it is doing well with abema starting to contribute to profits with respect to the ad business A large client has left, but we managed to fill the gap ahead of schedule. And we have seen sales and profits increase one again record highs, we saw record high sales and doubled. We saw also saw double digit growth Y on Y. With respect to the game business, we did very well with anniversary events and global expansion. We also saw significant increases in revenue and profit sales and profits. We continue to see upward trajectory in terms of sales and marked record high sales during this quarter. We also saw record high OP in the past due to the unparalleled hit game Uma Musume, but we booked a record high Q2 OP this period. And this is SG&A expenses. And we welcome 402 new employees and the number of employees have trended on schedule. And this is the P&L. And this is the balance sheet. With respect to the forecast, as you can see, we are trending well overall. We have achieved a lower end of the forecast range during our first half. And we are certain we'll be able to overdeliver on our forecast. but things may be a little slower during the second half. And as it is difficult to accurately revise our forecast, we have decided to keep the current forecast. With respect to the media and IP business, we have continued to strengthen our foundations while increasing sales. It is doing well. With respect to the OP, Abema has started to contribute to profits, thus our OP has multiplied by 1.7 times Y-on-Y. As part of our programming strategy, we are putting even greater efforts into our original programs, and we have come to be known for creating strong original series. We aired a 30-hour program to celebrate our 10th anniversary, and it received over 200 million views. As announced the other day, we will be producing the anime of Kagurabachi, a popular weekly Shonen Jump comic, which will go on air April 2027. We will continue to establish a structure that will enable us to operate in an end-to-end business, including the creation, distribution, and merchandising of original IPs and movies that will become a global hit. Next, moving on to the advertising business. We have finally reached the light at the end of the tunnel ahead of schedule after our large scale client's departure, and we will continue to increase revenue and profits from here on. The upgrading profit has significantly improved as well. We will utilize our advertising effectiveness to expand our market share. And we will take advantage of our investment in AI-related advertising technologies to expand our reach. Next, moving on to the game business. In the second quarter, we do have many anniversaries, so the game business trended very well. We have increased profits as well. The global sales have increased by 3.5 times year on year. We have put in place the right organization to operate existing titles over the long term, and we are developing new titles over the midterm. Advanced signup for HollowEye Dreams is tracking well. Granblue Fantasy Relic NS Ragnarok will launch on July 9th. We have high hopes for this title as the previous series sold more than 2 million units worldwide. In terms of the mid to long term strategy, As each of our businesses continues to establish a stable foundation, we aim to build a multi-layer business structure centered around IP and further strengthen collaboration across our businesses. This concludes my explanation. Thank you very much. We would like to conclude CyberAgent's FY2026 second quarter earnings briefing. If you have any questions, please reach out to the IR team. Thank you very much for watching today.