Financial Results for the Fiscal Year Ended May 2021
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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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3
Overview of Results for FYE May 2021
3
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4
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 2021
Full year results FYE May 2020
Full 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 1,639
1,995
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
259 254
246
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
Q1, FYE
May 2020
Q2, FYE
May 2020
Q3, FYE
May 2020
Q4, FYE
May 2020
Q1, FYE
May 2021
Q2, FYE
May 2021
Q3, FYE
May 2021
Q4, FYE
May 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)
2,3882,485
3,094
3,768 4,177 4,569
5,508
4,747
6,233 5,848
5,693
4,998
6,109 6,344 7,038
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Gross Profit by Quarter
Gross profit also grew as sales recovered compared to Q3
727 744 864
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, 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
Q1, FYE
May 2020
Q2, FYE
May 2020
Q3, FYE
May 2020
Q4, FYE
May 2020
Q1, FYE
May 2021
Q2, FYE
May 2021
Q3, FYE
May 2021
Q4, FYE
May 2021
(Units: million yen)
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293 302 344 368 431 494 515 617 708 664 678 681 697 766 767 846
58 61 63 67 72 77 77
84 84 85 182 162 149 149 149 149
39 31 14 39
100 39 31
29 65 53 48 61 56
49 98 95 79 93
236 79 113
94 212
92 121 119 123
8 25
25
25 25 25
25
25 25 25 25
137 146 150
240 246 204
255
339
268 268
309
358
300 300 290
347
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
Q1, FYE
May 2020
Q2, FYE
May 2020
Q3, FYE
May 2020
Q4, FYE
May 2020
Q1, FYE
May 2021
Q2, FYE
May 2021
Q3, FYE
May 2021
Q4, FYE
May 2021
Other expense
Amortization related to acquisition
Contracting expense
Advertising and promotion expense
Rent expense
Personnel 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)
(Including 57 in new
610
business-related expenses)
(Including 31 in new
603
business-related expenses)
(Including 60 in new
664
business-related expenses)
(Including 72 in new
812
business-related expenses)
(Including 61 in new
875
business-related expenses)
(Including 37 in new
877
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
117 142 200 257 326 395 276 250 453
351 250
-30
46 248 172 350
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
Q1, FYE
May 2020
Q2, FYE
May 2020
Q3, FYE
May 2020
Q4, FYE
May 2020
Q1, FYE
May 2021
Q2, FYE
May 2021
Q3, FYE
May 2021
Q4, FYE
May 2021
Gross profit
SG&A
(Units: million yen)
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Future Growth Strategies
10
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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 2025
2017 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
Fitness
Brands
Cosmetics
Brands
Game
Supervision
Athletic
Production
Artist
Activities
Commercial TV
Production
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UUUM Strategy
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Major Initiatives for FYE May 2022
Generate an Evolution in
Creator Support
Initiative
1
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 overseas
Expand Investment in
New Fields
Change Management System
to Clarify Responsibilities and
Make Decisions More Rapidly
Initiative
2 Initiative 3
Initiative
4 Initiative 5 Initiative 6
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Partnerships
M&A
Fan Engagement
Creator
Diversification and Specialization of support plans proceeding
as we adjust to the needs of the times
Generate an Evolution in Creator Support
Initiative 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
Genre
A
Genre
B
Genre
C
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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Fields New
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 Creators
Initiative 2
Original
Brands
¥0.5 billion
¥1.8 billion
FYE May 21 FYE May 22
(Forecast)
Brand/Licensing Sales Forecast
Business
Development
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Beyond YouTubers, we a providing support to
individuals in a variety of fields
YouTubers
Musicians
Instagrammers Idols
Livestreamers
Celebrities
Athletes
TikTokers
Support
Channel Development Facilitate and Advance
Tie-Up Projects Fan Engagement Product Sales
Content Management Financial Support UUUM Academy
Creator platforms
The Creators We Support are Becoming More Diversified
Initiative 3
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UUUM Integrated Solutions
Public Relations
Promotion
Planning
Content
Plan Proposals
Optimal Plans
Production Organization
Knowledge accumulated through
more than 3,500 tie-up projects
annually
Advertising
Reporting
Event Management
Product 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 overseas
Initiative 4
Planning Design
Casting
Creative
Productions
Product
Development
Events
Video
Partnerships
Report
Analysis
Media
Buying Social Media
Posts
Advertising sales accounting for
overseas clients
¥ 250 mn
¥ 580 mn
¥ 1,260 mn
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 Field
Initiative 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 Participate
Initiative 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
ownership
ownership
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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 Subsidiaries
2
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
NFTMusic
Game
Developing new businesses
with top-creators
Events
Expansion of platforms
EC
(Establishment) 2013 Current
Tie-Up advertising
Merchandise
FOLLOW ME
CREAS
Merchandise Tie-Up
advertising
Apparel
Cosmetics BusinessNew
Expanding content among platforms
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Forecast for FYE May 2022
26
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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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29
14,301
6,580
2,586
1,022
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%
+70% +8%
+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 creators 6,013 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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32
Appendix
32
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33
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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34
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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35
No. of Affiliated Channels by Subscribers
48 109
197
481
58 137
233
580
1m+ 500k+ 300k+ 100k+
As of Jun 2020 As of Jun 2021
No. of YouTube Channel Subscribers
Note: Includes partner channels
Channels with 1m+ subscribers increased from 48 to 58 over 12 months
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