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Financial Results for the Fiscal Year Ended May 2021

(2)

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

(3)

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3

Overview of Results for FYE May 2021

3

Copyright © ​UUUM Co.,Ltd. All rights reserved.

(4)

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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

(5)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

5

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 %

(6)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

6

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

(7)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

7

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)

(8)

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8

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.

(9)

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9

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)

(10)

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10

Future Growth Strategies

10

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(11)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

11

Our Industry Environment

Copyright © ​UUUM Co.,Ltd. All rights reserved.

11

(12)

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12

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

(13)

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13

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

(14)

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14

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

(15)

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15

UUUM Strategy

Copyright © ​UUUM Co.,Ltd. All rights reserved.

15

(16)

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16

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

(17)

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17

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

(18)

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18

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

(19)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

19

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

(20)

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20

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

(21)

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21

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

(22)

Copyright © ​UUUM Co.,Ltd. All rights reserved.

22

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.

(23)

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23

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

(24)

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24

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)

(25)

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

(Establishment) 2013 Current

Tie-Up advertising

Merchandise

FOLLOW ME

CREAS

Merchandise Tie-Up

advertising

Apparel

Cosmetics BusinessNew

Expanding content among platforms

(26)

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26

Forecast for FYE May 2022

26

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(27)

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27

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

(28)

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28

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

(29)

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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)

(30)

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30

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 %

(31)

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31

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.

(32)

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32

Appendix

32

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(33)

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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

(34)

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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

(35)

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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

(36)

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36

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, 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

Employees (including directors)

Temporary employees

(Units: employees)

(37)

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