Financial Results

for FY2024/3
May 13th, 2024
Financial Results for FY2024/3

2
Financial Highlights -Summary for FY2023/3- #1

FY2024/3 Financial Results Numbers related to IP

Revenue 30,166 million(JPY) Total # of ch. Subs.*1

（YoY+47.5%）
(compared with the forecast +6.0%) 88.41 million
(as of March 31, 2024)

Gross Profit 13,988 million(JPY)

（YoY+48.9%） # of VTubers*2

85
Operating Profit 5,536 million(JPY) (as of March 31, 2024)
（YoY+62.0%）
(compared with the forecast +5.8%)
Yearly Revenue Per VTuber*3

Net Profit 4,137 million(JPY) 355 million(JPY)

（YoY+65.0%） (April 2023 - March 2024)
(compared with the forecast +6.6%)

*1:Aggregated from each channel and official channel on YouTube as of March 31, 2024
*2:Fuwawa Abyssgard and Mococo Abyssgard, who shared a channel, were counted as one person
*3:Calculated by dividing FY2024/3 revenue by the number of enrolled VTubers at the end of FY2024/3 3
Financial Highlights -Summary for FY2023/3- #2 Full-year Results

Earnings Forecasts Compared with

MM JPY FY2023/3 FY2024/3 YoY
for FY2024/3 the forecasts

Revenue 20,451 28,471 30,166 +47.5% +6.0%

Streaming / Content 6,342 - 7,647 +20.6% -

Concerts / Events 3,429 - 5,601 +63.4% -

Merchandising 8,003 - 12,477 +55.9% -

Licensing / Collaborations 2,676 - 4,440 +65.9% -

Gross Profit 9,396 - 13,988 +48.9% -

Operating Profit 3,417 5,233 5,536 +62.0% +5.8%

Net Profit 2,508 3,882 4,137 +65.0% +6.6%

4
Financial Highlights -Summary for FY2023/3- #3 Q4 Results

MM JPY FY2023/3 Q4 FY2024/3 Q4 YoY

Revenue 7,648 10,941 +43.0%

Streaming / Content 1,744 2,157 +23.6%

Concerts / Events 2,187 2,985 +36.5%

Merchandising 2,740 4,414 +61.1%

Licensing / Collaborations 976 1,383 +41.7%

Gross Profit 3,652 4,864 +33.2%

Operating Profit 1,682 2,045 +21.6%

Quarterly Net Profit 1,227 1,512 +23.2%

5
Current Status of Growth in Number of Fans
In addition to continuing to gain recognition from a wide range of audiences through music,
the number of fans continued to expand both domestically and internationally, due to increased
enthusiasm among potential fans through large-scale events, etc.

■ # of ch. Subs. / # of channels with 1M+ Subs. * ■ # of ch. Subs. by languages and regions of VTuber
86.3
88.4 (as of March 31, 2024)
# of JP ch. Subs. (MM) 83.2
# of INT ch. Subs. (MM) 77.8
75.6
# of Official ch. Subs. (MM) 72.4
# of channels with 1M+ Subs.
65.3
70.0

33
38 Japan 54.27 million（YoY+15.4％）
61.4 32 36 36

29.91 million（YoY+19.1％）
58.0 31
30

50.8
27
Overseas
44.2 23
22 Breakdown of “Overseas”
37.3 21
English-
28.8
18
speaking 20.22 million（YoY+22.9％）
countries
18.1
11
Indonesia 9.69 million（YoY+11.9％）
10.0
6.1 4
3.5
1.5 2.2
0.2 0.4 0.6 1.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2019/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3

*: YouTube Channel Subscriber Count 6
Current Status of Revenue per VTuber
Revenue per VTuber increased structurally due to a seasonal increase in the commerce domain,
as well as the expansion of retail sales channels for merchandising (MD) products, etc.
 Quarterly revenue per VTuber*1, # of hololive production ■ Annual revenue per VTuber*3
VTubers *2
Quarterly revenue per VTuber (MM JPY) (MM JPY)
86 85
# of hololive production VTubers 82
355
75 75
71 71 YoY
68 68 129 312
62 +26% 304
293
57 273
51 52 52
102 242
46 234
42 218
87
81 201
71 71 178
69
65 154
59 143
53
47 110
42 42
93
34
24 63
17 48

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2021/3 FY2022/3 FY2023/3 FY2024/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3
*1: Calculated by dividing quarterly revenue by the number of enrolled VTubers at the end of each quarter
*2: Fuwawa Abyssgard and Mococo Abyssgard, who shared a channel, were counted as one person
7
*3: Calculated by dividing annual revenue for the four most recent quarters by the number of enrolled VTubers at the end of the quarter
 Historical Trends in Full-year Financial Results

Revenue Gross Profit / Margin Operating Profit / Margin Net Profit / Margin

57.6% 4,137
13,988 5,536
30,166
21.3%

48.5%
45.9% 46.4%

29.7%
20,451 38.6% 9,396
3,417 2,508 13.7%
12.3%
11.9%

13,663
9.1%
5,274
1,855
1,698 18.4% 1,220 1,244
16.4% 16.7%
2,777
5,724
13.6%

852
1,479 243 176

FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3 FY2020/3 FY2021/3 FY2022/3 FY2023/3 FY2024/3

(MM JPY) (MM JPY) (MM JPY) (MM JPY)

8
Historical Trends in Revenue
Q4 saw growth of YoY +43.0% against the backdrop of revenue growth in Merchandising service
as well as revenue contribution from the large event

(百万円) ■ Booming of Concerts/Events

Streaming/Content Revenue • Fes/EXPO-related revenue in Q4 was around 2.4 billion yen, and
10,941
Concerts/Events Revenue several medium-sized live concerts contributed to the revenue
Merchandising Revenue
■ Merchandising quarterly sales hit record high
Licensing/Collaborations Revenue
• Shipments of made-to-order products and conversion to profits
Advance received balance (as of the end of each quarter) progressed smoothly, including unshipped items at the end of last
7,648
year
7,133 6,949
• The product distribution store network for retail store sales has
expanded

5,010 5,142 ■ Seasonality due to made-to-order merchandise and large-

4,423 4,394 scale events
4,190 5,708
5,266
3,601 4,716
5,115 • Made-to-order merchandise is recorded as an advance
4,565
4,097 payment on the balance sheet at the time of order receipt and
3,847
2,423 2,422 recorded as sales on the income statement at the time of
2,152
1,756 2,927 shipment about three to six months later
2,222
1,107 • Most of the pieces of made-to-order merchandise are
708
anniversary items such as for VTuber anniversaries, and sales
682
tend to be posted in Q3 and Q4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Larger revenue in Q4 compared with other quarters due to
large-scale events held in Q4
FY2021/3 FY2022/3 FY2023/3 FY2024/3

* 1. Breakdown of quarterly revenue by service is provided in the Appendix

* 2. The values of advances received are ones from Q3 for FY2022/3 onward, a period in which we shifted to the existing EC framework 9
Scaling Up of Fes/EXPO
The scale of Fes/EXPO has expanded significantly compared with last year.
It was an opportunity for creators and fans to feel the growth of the community

 5th Fes./EXPO 2024 results

Revenue size
Project revenue: 2.4 billion yen

• Revenue increased by 30% compared with the previous year

• Despite increased costs due to rising material costs, profit margin
remained above 20%

Total number of audience members (Previous year)

Total: 256,000 (201,000)
Breakdown
EXPO side 30,000 (26,000)
Fes. side 226,000 (175,000)
■ Details of Fes. (Total number of 4 stages)
Venue: 58,000 (15,000)
Online: 168,000 (160,000)

• The number of people who were sold streaming tickets ware

maintained even though that of on-site was increased. As the result
of this, the overall number of audience members increased by 30%

Number of sponsors (Previous year)

Sponsors: 15 companies (13 companies)
Booth exhibitors: 12 companies (7 companies)

10
Historical Trends in Cost of Sales
In Q4, the cost level rose due to increases in production costs and performers’ remuneration against
a backdrop of an increase in Merchandising transactions in addition to large-event-related expenses

(MM JPY) 6,076

Performer remuneration
Outsourcing expenses
Event expenses
2,054
Other cost of sales

3,996
3,801 3,791

1,215
3,089
1,589 1,580 2,060
2,656 2,636
701 2,508
2,335
2,086
998 1,060 1,314
1,131 468
1,171 946 727
473
1,429 898
1,213 318 185 574
161 332
1,006 1,036 547
134
124 27
175 340 220
130 215 246
181 258 488
94
523 75 117 79 41 136 1,305
1,488
381 94 2
52 65 87 1,204 1,092 1,030 998 1,050 1,152 1,168
59 910
0 654 633 595 650
268 18 386

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2021/3 FY2022/3 FY2023/3 FY2024/3

11
Historical Trends in Gross Profit and Gross Profit Margin
Q4 saw an adjustment in the sales mix and gross margin due to an impact of the large event,
while the gross margin was up 33.2% year-on-year

(MM JPY)

4,864
52.7% 53.3%
49.9% 51.2%
47.4% 47.8% 46.7%
46.2% 45.4%
44.3% 44.0%
41.0% 41.0% 42.1%
39.9% 3,652
3,331
3,157
29.7%
2,634
2,373

1,767 1,854
1,514
1,210 1,305
1,146
992
720
583
326

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2021/3 FY2022/3 FY2023/3 FY2024/3

12
Historical Trends in SG&A Expenses and SG&A Ratio
While variable cost items such as warehouse SG&A expenses grew in line with the increase in sales,
the quarterly SG&A ratio remained unchanged in YoY due to a decline in the fixed cost ratio
Recorded one-time
(MM JPY) expenses related to
performance-linked
Personnel expenses bonuses and Q4 events

Warehouse SG&A expenses*1

33.8% 2,819
Other SG&A expenses 32.0% 31.9%
30.3%
SG&A ratio
27.5% 28.4%
26.4% 27.0%
25.8% 25.8%
24.2%
22.8% 993
20.8% 20.8%
19.4%
16.7% 1,970 1,923 1,970

1,738
1,517 633 569 630

1,338 541
946
1,159 1,153 463
337
1,009
292 650 605
395 708
556
281
665 450 507
585 301
283
204 311
360 198
340 128
879
230 703 734
121 129 628 640
147 1 180 479 558 551 546
68 333 416
45 25 236 1 257
4 137 158
96

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY2021/3 FY2022/3 FY2023/3 FY2024/3

*1: Including SG&A cost related to EC such as logistics expense, sales commission, etc.
13
*2: To adjust each expense item as of 4Q, breakdowns of Q2/Q3 expenses have been retroactively revised and rearranged
Historical Trends in Operating Income and Operating Margin
In Q4, while expenses related to the large event were recorded, the fixed cost ratio decreased
due to an increase in sales, and the operating profit level was up 21.6% year on year
36.5%
(MM JPY)
31.9%
Long-term target level for operating margin: 30%
25.3% 25.7% 2,045
21.6% 21.9%
19.7% 19.3%
17.1% 17.0% 17.4% 17.1%
1,682
13.4% 12.3%
10.0%
1,408
3.3%
1,186

856 895
785 757
624
516
353 379 361
326
179 145

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2021/3 FY2022/3 FY2023/3 FY2024/3
14
Overview of Service Mix and Product Mix
The composition ratio of the commerce domain to revenue increased compared with the previous year.
Expanding retail sales channels also helped to grow the product-purchasing customer base

■ % of Revenue by Service Segments ■ Monthly Sales Ratio of Each Product in our EC websites*1
Streaming/Content Merchandising Made-to-order anniversary goods Other in-house planned goods
Concerts/Events Licensing/Collaborations Shipping goods related to large events

100%
7.5% 10.1% 13.1% 14.7% 90%

80%
32.3%
35.4% 70%
39.1%
41.4%
60%

14.2%
50%
16.1%
16.8% 40%

18.6%
30%

46.0%
38.4% 20%
31.0%
25.3% 10%

0%
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
FY2021/3 FY2022/3 FY2023/3 FY2024/3 15
*1：including hololive production official shop and Geek Jack
2022 2023 2024
Medium- to Long-term Strategies

16
Mission

Together,
Let's Create Culture Loved by All.
We are continuing to build a platform to bring together unique and
diverse content creators.
With the latest technology, users are exposed to new, exciting, high-quality
experiences every single day.
We bring about the best 2D entertainment loved by all, regardless of age,
gender, and nationality.
To bring all this to fruition, we continue to challenge the norm.

17
From VTuber Agency to an Expanding IP Business
Development of various businesses opportunities by leveraging hololive’s brand
recognition and the fan community gained through livestreams and live events

Building up Our VTuber IP and Fan Community Commerce Activities via IP

Streaming / Content Concerts / Events Merchandising Licensing / Collaborations

Livestreaming IP license-out and

Live events offline / online Real / digital merchandise
through streaming platforms Promotional support like tie-up ads.

Services

Major Royalties collected from licensees,

Super Chat *2, Channel Membership *3 Tickets sales, Product sales In-house/External EC sales
Rev. Sources Promotional fees from advertisers

Major Event production costs, Sales Commission, Raw Materials, Production Costs,
Platform Fees, Rev. share w/ VTubers
Cost Items Rev. share w/ VTubers Rev. share w/ VTubers Rev. share w/ VTubers

Revenue Mix *1 25.3％ 18.6％ 41.4％ 14.7％

(vs Prev. Year) （YoY +20.6%） （YoY +63.4%） （YoY +55.9%） （YoY +65.9%）

*1 : Breakdown of FY2023/4 Revenue

*2 : A system that allows viewers to pay a fee to make their chat messages stand out when livestreaming is published using YouTube's live chat
*3 : A system on YouTube whereby members pay a monthly fee to become channel members and receive badges, emotes, limited video distribution and other similar privileges
18
Change to Sales Structure of IP Companies
In a period of approximately three years since 2021, COVER has earned more from Merchandising
and Licensing / Collaborations than from streaming and concerts.
Our revenue structure is shifting to that of IP companies

Streaming/Content Concerts/Events Merchandising Licensing/Collaborations

(Unit: JPY)

Revenue Revenue Revenue Revenue

approx. 5.7B approx. 13.7B approx. 20.5B approx. 30.1B
7.5% 10.1% 13.1% 14.7%
39.8％
32.3% approx. 56.1％
35.4%
2.3B 39.1% 41.4% approx.
14.2% 16.9B
16.1%
16.8%
18.6%
46.0%
38.4%
31.0% 25.3%

2021/3期
FY2021/3 2022/3期
FY2022/3 2023/3期
FY2023/3 2024/3期
FY2024/3 19
Milestones towards Mission Accomplishment
the Company has developed its medium- to long-term strategy and
has established a new three-step business strategy.
Aim to gradually expand into a large-scale IP business while ensuring reproducibility
Medium-term
goal

Step
Expansion of creator
3 economic zone

 Expand to adjacent content areas such as anime

Focus areas and games
 Expand revenue opportunities for creators by
diversifying products and services
Step

2 Evolution to IP business  Reach even the mass population with low

awareness of VTubers

Establish  Diverting IP to MD and licensing out

reproducibility  Promote cross-selling by marketing through
diverse channels for product sales
Step  Widespread penetration among generations

1 Establish the VTuber business and regions familiar with anime culture and the
culture of Oshikatsu (supporting your favorite
things in various ways, such as admiring and
supporting idols and characters)
 Modeling the planning, production, and hit
process of VTuber using video media, SNS, etc.
 Recognition and brand establishment of Create a new content culture
hololive Production
 Fostering a passionate fan community and global economic zone
originating from Japan

20
 Expansion of Creator Economic Zone through Extended Reinvestment

Extended reinvestment in content to reach even more potential fans

and continue to expand our brand and the creator economy zone

Development of mass-
targeted content such as
anime and games
Provide content globally to
diverse entertainment fan
Deployment of
base
IP content such as MD
Light fandom
VTuber
streaming for fans
Middle fandom
Expand awareness among
fans who enjoy
Core fandom entertainment content

Participation in the
VTuber community

Give back to creators Forming a

and reinvest in content passionate
fandom
development

21
Areas to Consider for Strategic Partnerships or M&A
In addition to in-house business development, we will actively consider strategic partnerships and
M&A in areas where we can expect to increase corporate value through synergies
with our IP and developed businesses
Expansion of technical and
production capabilities Expanding the content areas Localization development

• Diversification of content planning

• Expansion of state-of-the-art motion such as short videos and animated • Content localization in multiple
Establish the
Step 1 VTuber business
capture technology and 3DCG shorts languages
technology • Expansion of promotion through music • Holding overseas events
• Larger and more sophisticated events

• Expansion of product planning and

production systems based on the
Evolution to IP premise of simultaneous transactions
Step 2 business with numerous licensee companies
and product manufacturing companies,
etc.
• Diversification of MD and licensed-out
products, including advanced products • Securing overseas local production
such as card games, apparel and and distribution networks for products
figures

• Securing advanced content production

• Media mix development of larger
Expansion of lines such as large-scale music videos
anime content • Partnerships with overseas local
Step 3 creator economic and TV animation series
• Expanding content in the media companies and sales agents
zone • Expansion of human resources related
game/metaverse areas
to metaverse

22
Expanded Image of TAM Linked to Medium- to Long-Term Strategy

Approach larger markets incrementally by gradually

expanding the breadth of content and the target audience
Breadth of
cognition
Step 3

Global Content Market

Everyone who enjoys
entertainment content
123.6 trillion yen *3

Step 2

Younger generations who Global Anime Market

are familiar with anime
culture and Oshikatsu 2.9 trillion yen *2

Step 1

VTuber Direct Market

VTuber native generation
familiar with video streaming
80 billion yen *1

Content width

Streaming/Events/ Local content/ Metaverse content/

MD/Collaborations Anime/ Card game Video game

*1: Refer to the VTuber market size forecast for 2023 from Yano Research Institute’s “Survey on the VTuber market”
*2: Refer to the 2022 anime industry market (broadly defined anime market) from The Association of Japanese Animations “Anime Industry Report 2023”
*3: Refer to the global market size of the content industry in 2019 described in "Basic Materials of the No. 23 New Capitalism Realization Conference" of the Cabinet Secretariat
23
Business Plan for FY2025/3

24
Earnings Forecasts for FY2025/3
Continuous business expansion is expected this fiscal year, along with an improvement
in marginal profit through an improved sales mix.
Continuing from the previous year, we expect performance progress to be weighted heavily
in the second half due to the seasonality of MD sales and large-scale events
Reference: Financial Results Earnings Forecasts Change
for FY2024/3 for FY2025/3 (Rate of change)

Full-year earnings
Full-year results Full year
forecast First-half earnings Second-half
MM JPY First-half results Second-half results First half Second half
forecast earnings forecast

+6,315 +2,150 +4,165

Revenue 30,166 12,276 17,890 36,481 14,426 22,055
(+20.9%) (+17.5%) (+23.3%)
Reference： +3,335 +932 +2,403
12,375 5,263 7,112 15,711 6,195 9,515
marginal profit* (+27.0%) (+17.7%) (+33.8%)

Ratio to revenue 41.0% 42.9% 39.8% 43.1% 42.9% 43.1% - - -

+1,763 +96 +1,666

Operating profit 5,536 2,304 3,232 7,300 2,401 4,899
(+31.8%) (+4.2%) (+51.6%)

Ratio to revenue 18.4% 18.8% 18.1% 20.0% 16.6% 22.2% - - -

+1,677 +89 +1,588

Ordinary profit 5,623 2,311 3,311 7,300 2,401 4,899
(+29.8%) (+3.9%) (+48.0%)

Ratio to revenue 18.6% 18.8% 18.5% 20.0% 16.6% 22.2% - - -

+927 +8 +918
Net profit 4,137 1,657 2,480 5,064 1,665 3,399
(+22.4%) (+0.5%) (+37.0%)

Ratio to revenue 13.7% 13.5% 13.9% 13.9% 11.5% 15.4% - - -

25
*: Marginal profit is calculated as "Net sales - Cost of sales (variable cost) - Warehouse SG&A - Advertising expenses”
 Multi-faceted Content Development with an Eye on Fan Nurturing
Expand recognition through highly diffusive media such as music videos, anime,
and short videos, and encourage people to become a fan
by increasing contact opportunities with VTuber IP
Nurturing journey Content Target group Reference indicators

Acquisition and The mass population who enjoy ＃ of related video

 Music video (MV), anime, short video
Step 1 expansion of  UGC content, >>> entertainment content
views per year

recognition  Collaboration with other brands

4.1 billion times*

Internet natives who are YouTube

 Follow YouTube and social media
Total # of YouTube channel
Increase in contact accounts familiar with the culture of followers*
Step 2 points
 Watch live streaming
anime and Oshikatsu
 Purchase introductory goods at
>>>
retailers and e-commerce sites
88 million people

Core fandom # of annual event

 Attend a live concert at a local
Improve that loves
Step 3
venue (or watch online streaming)
>>> VTuber culture
attendees*
engagement
340 thousand people
 Purchase of multiple IP products by
cross-selling

*1: Including affiliated VTubers and official channels 26

*2: Total number of attendees for on-site and streaming tickets at the company's own paid live concerts. Pass-through tickets are duplicated and counted for each concert.
 Expanding Customer Contacts through High-quality PGC

The expansion of our VTuber IP presence in the music scene has resulted in a significant influx of new fans.
High-quality PGC will generate more user generated content (UGC) and expand customer contacts

PGC × UGC cycle by IP Expand new customer contacts and fans

Changes in # of channel subs.
and average # of unique users (UU)*
（MM） （MM）
100 25

90
Primary
creation 80 20

PGC 70

60 15

50

40 10
Derivative
works Derivative 30
Wide spreading
on UGC works
YouTube PGC 20 5

Tik Tok 10
X(former
0 0
Twitter)
2022/3期
FY2022/3 2023/3期
FY2023/3 2024/3期
FY2024/3

チャンネル登録者数(左軸)
# of Subscribers (left) # of average monthly UU (right)
平均月間UU数(右軸)

Multifaceted business development is possible by nurturing VTuber IP and brand strength 27

*Changes in the number of channel subscribers of the affiliated VTubers as of the end of each fiscal year, including the official ones, and the average number of monthly UU for each fiscal year
 Expand Customer Contact Points through Partnerships

Increase IP contact points with potential fans globally through partnerships with
influential advertising and sales agencies and retailers in each region
Expansion of the agency network Development of retail stores

• Develop agency companies in more than 140 countries around
the world and consider collaboration with more than 250 client
companies
• By expanding our B2B network with partner companies, we will
increase awareness and promote products globally through
mutual customer referrals
• Expanding sales channels utilizing local e-commerce (EC)
and retail stores in North America and Asia, the main e-
commerce regions
• In addition to expanding the range of products that are
easy to stock in stores, develop a sales network that can
reach a wide range of fan bases

Expanding stores in North

Indonesia “Indomie” America
• Acquired a project for local national instant • Starting sales at animate Los Angeles
noodles through a local agent in Indonesia from September 2023
• Recognition spread widely and quickly • Starting sales at more than 30 stores
among local fans of Tokyo Japanese Lifestyle from April
2024

28
 Increase in IP Contact Opportunities for Potential Fans via Expansion of MD Business
Expand product purchasing opportunities for potential fans by promoting distribution of
products to retail stores globally.
Plan cross-selling to specific VTuber fans through series products such as trading card games, etc.

Changes in the number of SKU on the official EC

3,000

2,500

2,000

1,500

1,000

500

0
Sales channel/ FY2022/3 FY2023/3 FY2024/3
sales region

Promotion of large-series product planning

Stuffed toy/acrylic stand series Trading cards

# of SKU/frequency
of purchase
29
*: Number of product SKUs sold on official EC sites at the end of each fiscal year (including out-of-stock products during the sales period).
Enhancement of Products and Services for Overseas Fans
As for overseas expansion areas, emphasis is placed on North America and Asia,
where the anime market has highly penetrated.
Aim to increase the number of events, products and services accessible to potential fans in each region
Cultivate VTuber IP/fan base Commerce development using IP
Streaming/Content Concerts/Events Merchandising Licensing/Collaborations
Support for promotion such as IP
Live streaming via distribution platform Holding offline/online live events Selling physical/digital VTuber goods licensing out and tie-up ads to
manufacturers

Service
development

# of VTuber channel subs. by region # of official EC orders by region # of overseas business

# of event participants
(as of the end of March 2024) 900,000 partners
800,000 58
“hololive English 1stz Concert: Connect the World”
Venue: 5,000 700,000

Online: 25,000 600,000

500,000
Current status 5th Fes. / EXPO 400,000 25
# of overseas audience members: 300,000
8,000 200,000

100,000
FY2023/3 Overseas events
0

# of exhibitors: 29 FY2023/3 FY2024/3 FY2023/3 FY2024/3

US
US 東アジア
East Asia 東南アジア
South East Asia その他
Others

• Debut of diverse VTubers who develop

new audiences • Strengthen partnerships with sales agents
• Planning and implementation of offline • Expansion of global sales channels in e-
Future • Execution of large-scale projects to and local companies
live performances on site commerce
development develop IP • Expansion of localized collaboration products
• Actively exhibiting at local events • Product delivery to local stores
• Local community management through through licensing out
SNS and promotion of UGC
30
Types of and Outlook for Our Game/Metaverse Related Business
The development period of gaming-related businesses, which can be a major source of revenue
in the medium term, is long.
Therefore, financial risks are managed in a decentralized manner by type

Summary Development cost Revenue model

holo Indie • Brand for derivative work games using our IP

Borne by creators,
• Indie game creators, etc. can publish games using Revenue share
in principle
our IP under the relevant brand

IP Licensing out to game • Development of original games through licensing

developers out our IP to game development and management Large part of cost is
companies borne by developer Revenue share
• The Company supervise original games and handle companies
a part of promotion

The operating costs

• Metaverse platform that provides fans with new are borne by the
Holoearth experiences Company
The Company’s
• In-house development from the viewpoint of Amortize assets
revenue
development flexibility with a view to collaborating recorded on the B/S at
with our other services time of profit and loss
(PL)

31
Anime-look Metaverse “Holoearth”

The function expansion of the open beta version will be executed in 2024 gradually

 Summary
 Metaverse platform developed in-house by the Company
 Provide users with interaction opportunities and content
experiences in a virtual space community via their avatars

 Immediate financial impact

 Approx. 2 billion yen of development costs as of the end of March
2024 is recorded as software assets on the B/S
 Operating expenses and amortization of software assets will be
recorded in PL from FY2025/3
 Amortization is expected to start around Oct. 2024
(amortization period; 5 years)
 The overall cost impact on PL for the FY2025/3 is expected
to be around 500 million yen
 Development costs in the phase after amortization begins from
October 2024 will be capitalized additionally, depending on
engineering and other man-hours in operation
 Additional capitalized costs will be amortized depending on
release of each additional services

* The images are things under development

32
Appendix

33
Revenue Diversification of COVER’s VTubers and Overseas Sales

Built up a structure that provides revenue diversification

of all VTubers and groups, achieving stability

■ Revenue Ratio by VTuber (Top 20) *1 ■ Sales Trend (Domestic/Overseas) *2

Domestic Sales (MM JPY)
Revenue Ratio (%)
Overseas Sales (MM JPY)
Cumulative Profit Ratio (%)
5.0% 50% 30,166

7,553
4.0% 40%

20,451
3.0% 30%
4,750

2.0% 20%
22,613
15,701
1.0% 10%

0.0% 0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 FY2023/3 FY2024/3

Source : YouTube (as of March 31, 2024)

*1：The revenue ratio (left axis) is the ratio of the revenue of the top 20 VTubers to the total revenue of all VTubers belonging to our Company. The cumulative revenue ratio (right axis) is the cumulative value from the top of the revenue ratio
*2： Aggregate revenue of items for which overseas revenue can be reasonably estimated and aggregated by each service, as opposed to overseas revenue by location. Revenue for which overseas transactions cannot be estimated is aggregated as domestic sales.
34
Conceptual Image of Expanding the VTuber Economic Zone
Make VTubers elevate to the culture of the youth generation, especially in countries with an anime
culture, and penetrate the global content market that transcends countries and generations

VTuber content will transcend regions and generations, creating a unique

economic zone and penetrating each market 123,600 billion yen
Anime Game Publishing Manga Music Character
......
market market market market market market
Global Content Market

VTuber business will expand into anime market, mainly in countries with
high affinity for anime and IP content 2,900 billion yen
North
America
East Asia
Southeast
Asia
Europe ...... Global Anime
Market

The VTuber business in Japan will be established as a collection of

various pieces of content 80 billion yen
Events VTuber
LIVE
streaming
such as live
activities
Goods Toy Hobby Music Game Anime ...... market
35
Deploying Offline Events Globally

Confirming the existence of passionate fan communities

at events and expos in each region

Anime Revolution (Canada) Seoul POPCON (Republic of Korea) hololive Meet x TAIPEI (Taiwan)

hololive English 1st Concert -Connect the World-

Thailand Comic Con (Thailand) DreamHack (Australia)
(California)

36
What is UGC?
In recent years, UGC as well as PGC has been attracting much attention

Professional Generated Content

(Content created by professionals)
PGC Content created by professional creators and specialists who have
special knowledge and skills
#TVShows #MusicVideos #ArtistMusic

User Generated Content

UGC (Content created by users)
Content created and shared by ordinary users and consumers
#E-CommerceSiteReviewsComments #VideoClips

37
Create an Environment that Promotes UGC
We have established Derivative Works Guidelines with the aim of ensuring that more fans can enjoy
the content provided by the Company in a variety of ways

Although derivative works are usually limited to that for non-profit purposes, the monetization function provided by the
video-sharing site can be used for clipped videos, and derivative work games can be distributed for a fee by posting
them on Steam using the game brand “holo Indie” for derivative work games.
Build a reward ecosystem that allows creators to monetize under certain conditions and increases their desire to create

38
“holo Indie” Project

 Track record of holo Indie

Holo Parade

Idol Showdown
In November 2023, we launched “holo Indie,” a new game brand
for derivative work games, to co-create with fans and creators
around the world.
The Game Creator Support Program* is provided as a reward
ecosystem to support the continued activities of derivative work Holo X Break
game creators.
As a result, in the market of derivative work games, which are
normally produced for free, distribution of games for a fee is
permitted, and creative activities of derivative work games are
supported.
Miko in Maguma
* A system that consolidates the publishing of derivative work games and
returns rewards to creators by posting, reviewing, managing, and doing
other necessary management tasks on websites such as Steam accounts
though our subsidiary CCMC Corp. (head office: Minato-ku, Tokyo)
WOWOWOW KORONE BOX
39
ESG-related Activities
To support the activities of our content creators, we are working with various industry associations
to improve their working environment and implement various anti-defamation measures, etc.
 Organizations and activities
Japan Online Game Association (JOGA)
Joined as an industry association involved in game distribution and
metaverse development.
Participate in the development of guidelines and study groups.
Creator Economy Association (CEA)
Joined as an industry group addressing issues surrounding creators
such as defamation and social tipping. Cooperate in exchanging
opinions and conducting surveys regarding creators.
Music Publishers Association of Japan (MPA)
Joined as an industry organization involved in the processing and
distribution of rights around music.
Safer Internet Association (SIA)
Joined as an industry organization addressing Internet issues such as
defamation and underage protection. Cooperate in exchanging
opinions and conducting research on various issues related to our
services.
■ Activities involving defamation
Activities during the one-year period from January 2022 to December 2022
Number of cases in which actions were taken against defamatory acts
toward affiliated talents: 116
• Legal Action Against Infringements of Rights on Online Forums and
Social Media
• Legal Action Against Harassment Directed at Overseas Talents
• Legal Action Against Aggregator Websites
In June 2023, we released an additional joint statement announcing the
formation of a “Anti-Defamation Study Group” with the cooperation of
Google LLC, note inc., UUUM Co., Ltd., ANYCOLOR, Inc., and related
experts.
 About the company’s streaming moderator system
Stream moderation services are in Japanese, English and Indonesian, 24
hours a day by approximately 70 moderators.
*As of March 31, 2024
40
CSR-related Activities
Contribute to public awareness and PR activities by leveraging the communication skills
of affiliated VTubers

■ Awareness campaign with the Japan AED ■ Appointment as Tokyo Tourism Ambassador
Foundation

Shirakami Fubuki, a talent associated with hololive,
supports the foundation’s activities as a “Lifesaving
Supporter” in the “Lifesaving Supporter Project team
ASUKA.”
AED training videos and other information are available on
the YouTube channel of the Japan AED Foundation.
hololive production talents have been selected as “Tokyo
Tourism Ambassadors” to promote the appeal of Tokyo both
domestically and internationally. ​
“Sakura Miko” is affiliated with hololive, “Mori Calliope” and
“Gawr Gura” affiliated with hololive English, were appointed.​
41
Organizational Structure
COVER boasts an industry-leading and diverse workforce with a large number of
specialized employees

■ Company Structure *1 (as of March 31, 2024)

IP Planning, Content Creation, Agency

Sales & Marketing Metaverse Back Office
Infrastructure Development Management

35% 21% 19% 11% 14%

Planning and Developing

Event Planning Agency Management Metaverse Development Management
New Vtubers

VTuber Branding Advertisement・PR Talent Management Media Mix Expansion Corporate Planning

Streaming Application and

Sales & MD Administrators
Software Development

Studio Content Creation Live Event Management

*1 : Organizational structure in full-time employees

42
Historical Trends in Employees

509
492
480
455

409
392
373 376

300
262

215

170
132
110
93
75
48 51
36
3 3 4 9 13 22
2 2 2 2 2 2 2
6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3
2016 2017 2018 2019 2020 2021 2022 2023 2024

43
 Objective Indicators to Judge the Achievement of Management Goals

We define the following KPIs as important management indicators; "Total # of ch. Subs.",
a direct indicator of # of hololive fans, and “Total revenue" / “Total revenue by service",
which are the source of attractive content production

FY2021/3 FY2022/3 FY2023/3 FY2024/3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Total # of ch. Subs. (MM) 1,003 1,808 2,884 3,733 4,418 5,081 5,799 5,986 6,525 7,002 7,238 7,558 7,782 8,319 8,625 8,841

Revenue（MM JPY） 708 1,107 2,152 1,756 2,423 2,422 4,423 4,394 3,601 4,190 5,010 7,648 5,142 7,133 6,949 10,941

Streaming / Content 420 571 797 844 1,220 1,200 1,416 1,412 1,450 1,572 1,575 1,744 1,651 1,799 2,038 2,157

Concerts / Events 0 58 515 240 293 287 563 1,059 193 581 466 2,187 376 1,285 954 2,985

Merchandising 262 424 656 503 756 713 1,904 1,457 1,574 1,597 2,090 2,740 2,091 3,269 2,701 4,414

Licensing / Collaborations 24 52 182 168 152 220 540 464 382 439 878 976 1,023 778 1,254 1,383

44
PL Summary

MM JPY FY2021/3 FY2022/3 FY2023/3 FY2024/3

Total Revenue 5,724 13,663 20,451 30,166

YoY Growth +287% +138% +49% +48%

Gross Profit 2,777 5,274 9,396 13,988

Margin 48% 38% 45% 46%

Operating Profit 1,698 1,855 3,417 5,536

Margin 29% 13% 16% 18%

Net Income 1,220 1,244 2,508 4,137

Margin 21% 9% 12% 14%

45
BS Summary

MM JPY FY2021/3 FY2022/3 FY2023/3 FY2024/3

Total Current Assets 3,048 7,168 11,740 14,798

Cash and
Cash Equivalents
1,899 4,644 7,793 8,666

Total Fixed Assets 467 1,069 4,146 7,914

Total Asset 3,516 8,238 15,887 22,713

Total Liabilities 1,303 4,780 8,880 11,569

Total Equity 2,212 3,457 7,006 11,143

46
CF Summary

MM JPY FY2020/3 FY2021/3 FY2022/3 FY2023/3

Cash flows from

1,419 3,537 4,866 4,765
operating activities

Cash flows from

(402) (793) (2,759) (3,893)
operating activities

Cash flows from

526 - 1,040 (0)
financing activities

Net increase in cash and

1,543 2,745 3,148 873
cash equivalents

Cash and cash equivalents

356 1,899 4,644 7,793
at beginning of period

Cash and cash equivalents

1,899 4,644 7,793 8,666
at end of period

47
Handling of these Materials

This material has been prepared by COVER Corporation (the “Company”) solely for information purpose only,
and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in the
United States, Japan or any other jurisdictions. Any information contained in this material other than facts in the
past and at present is referred to as such forward-looking statements. Forward-looking statements include but
are not limited to expressions such as “believe”, “strive to", “anticipate”, “predict", “expect", “confirm", “continue",
“try", “estimate“, “forecast“ “to take measures to", “hope”, “intend", “attempt", “it is possible…", “plan“, “strategy”,
“potential", “probability", “project", “risk", “pursue", “should be…", “working to…", “have the goal of…“ and
“planning to" as well as other similar expressions to explain future business activities, achievements, events and
circumstances. Forward-looking statements are predictions about the future that reflect management's judgment
based on currently-available information. As such, these forward-looking statements are subject to various risks
and uncertainties. It is possible that the actual business content, results and the like in the future may
significantly differ from those expressed in or suggested by the forward-looking statements. Therefore, please do
not rely on forward-looking statements.
The Company undertakes no obligation to update this material after the date of this material.

48
Together,
Let’s Create Culture Loved by All

Corporate Website：https://cover-corp.com/