Ly Corporation · TSE:4689
Ly — Yahoo Japan — FY2016 Earnings Presentation
106 slides from Ly's earnings presentation, Apr 26, 2017
Slide 1: FY2016 Full Year & 4Q Business Results
Yahoo Japan Corporation FY2016 Full Year & 4Q Business Results (Apr. 2016-Mar. 2017/Jan.-Mar. 2017) April 26, 2017
Slide 2: Table of Contents
Table of Contents P. 4 FY2016 Full Year Financial Highlights P. 13 FY2016-4Q Financial Highlights P. 20 Usage Trend of Services P. 26 Core Businesses (Advertising/Auctions/Membership Services) P. 35 Upfront Investment-Stage Businesses (Shopping/Credit Card) P. 44 Efforts to Be Made from FY2017 and B
Slide 3: Forward-looking statements
Statements made at the meeting or included in the documents that are not historical facts are forward-looking statements about the future performance of Yahoo Japan Corporation and its consolidated subsidiaries and affiliates. The Company cautions you that a number of important factors could cause a
Slide 4: FY2016 Full Year Financial Highlights
FY2016 Full Year Financial Highlights 4
Slide 5: Executive Summary for FY2016 (1)
Executive Summary for FY2016 (1) Revenue 853.7 (¥B) YoY +30.9% Operating income 192.0 (¥B) YoY -14.6% Adjusted operating income 205.0 (¥B) (*1) YoY +24.1% (*2) EBITDA 230.0 (¥B) YoY -10.0% Adjusted EBITDA 243.1 (¥B) (*1) YoY +24.0% (*2) Net income attributable to owners of the parent 136.5 (¥B) YoY
Slide 6: Executive Summary for FY2016 (2)
Executive Summary for FY2016 (2) Via smartphones Advertising-related revenue 286.4 (¥B) YoY +7.3% 50.4% Total domestic e-commerce transaction Via smartphones (*2) value (*1) 1.85 (¥T) YoY +23.0% 46.3% ASKUL Corporation’s BtoB-related revenue (transaction value) via Internet 212.6 (¥B) Number of mont
Slide 7: Executive Summary for FY2016
Executive Summary for FY2016 Advertising-Related Business -Paid search advertising revenue recovered. -Officially launched YDN In-feed Video Advertising in March. e-Commerce-Related Business -High growth in Shopping transaction value (*). -Shopping-related advertising revenue continued to increase s
Slide 8: Full Year Revenue
Full Year Revenue (¥Billion) ¥853.7 billion 1,000 Up 20 consecutive years YoY +30.9% since the start of services 652.3 500 0 FY2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JGAAP IFRS Gross basis Net basis 8 Note: Between FY2008 and FY2012, we indicated revenue on a net rathe
Slide 9: Full Year Revenue Breakdown
Full Year Revenue Breakdown (¥Billion) 853.7 71.6 Marketing Solutions Business +11.3 YoY +4.9% 652.3 Growth in Advertising-related revenue 60.2 511.7 Consumer Business(*) +176.0 335.7 YoY +52.4% Business combination with ASKUL Corporation (Aug. 2015~) and growth in Shopping-related advertising 268.2
Slide 10: Full Year Operating Income
Full Year Operating Income (¥Billion) 300 ¥192.0 billion YoY -14.6% 224.9 200 100 0 FY2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 JGAAP IFRS 10 Note: Includes the gain from remeasurement relating to business combination with ASKUL Corporation of ¥59.6 billion in FY2015-2Q a
Slide 11: Full Year Adjusted Operating Income
Full Year Adjusted Operating Income (¥Billion) ¥205.0 billion Gain from YoY +24.1% Loss related to remeasurement the fire incident related to business 59.6 13.0 at the Logistics Center combination with of ASKUL Corporation ASKUL Corporation 165.3 192.0 FY2015 FY2016 11 Note: Adjusted the impacts fro
Slide 12: Full Year Consolidated Cash Flows
Full Year Consolidated Cash Flows -Cash gained through businesses was spent for capital investment in equipment and shareholders return. -Working capital for Credit card business is separated from those for other businesses and will be procured externally including issuance of corporate bonds. Cash
Slide 13: FY2016-4Q Financial Highlights
FY2016-4Q Financial Highlights 13
Slide 14: Executive Summary for FY2016-4Q (1)
Executive Summary for FY2016-4Q (1) Revenue 222.7 (¥B) YoY +7.6% Operating income 39.8 (¥B) YoY +33.4% Adjusted operating income (*) 52.8 (¥B) YoY +76.8% EBITDA 50.0 (¥B) YoY +26.1% Adjusted EBITDA(*) 63.0 (¥B) YoY +58.8% Net income attributable to owners of the parent 31.7 (¥B) YoY +75.8% Diluted E
Slide 15: Executive Summary for FY2016-4Q (2)
Executive Summary for FY2016-4Q (2) Advertising-related Via smartphones 78.6 (¥B) YoY +9.6% 53.1% revenue Total domestic e-Commerce Via smartphones (*2) transaction value (*1) 486.4 (¥B) YoY +12.6% 51.4% ASKUL Corporation’s BtoB-related revenue (transaction value) via Internet 52.3 (¥B) *1 Includes
Slide 16: Quarterly Revenue
Quarterly Revenue (¥Billion) ¥222.7billion YoY +7.6% 207.0 200 100 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q JGAAP IFRS Gross basis Net basis 16 Note: Between FY2008 and FY2012, we indicated revenue on a net rather tha
Slide 17: Quarterly Revenue Breakdown
Quarterly Revenue Breakdown (¥Billion) Marketing Solutions Business 222.7 207.0 18.6 YoY +5.8% 14.6 +4.0 Growth in Advertising-related revenue Consumer Business (*) 123.5 +7.1 130.6 YoY +5.8% Growth in revenues of: consolidated subsidiaries; and Shopping-related advertising 72.0 +4.1 76.1 Other Busi
Slide 18: Sales Promotional Activities
Sales Promotional Activities Promotion costs decreased year on year due to improved efficiency. (¥Billion) FY2014 FY2015 FY2016 FY2016-4Q Brief breakdown of sales promotion costs (*1) Shopping 50% 18.6 YAHUOKU!, 13.7 12.7 Membership Services 30% 10.9 9.5 Financial & Payment 10% 6.5 4.0 4.2 5.2 4.6 4
Slide 19: Quarterly Adjusted Operating Income
Quarterly Adjusted Operating Income (¥Billion) ¥52.8 billion YoY +76.8% Loss related to the fire incident at the Logistics Center of ASKUL Corporation 50 13.0 29.9 39.8 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q JGAAP I
Slide 20: Usage Trend of Services
Usage Trend of Services 20
Slide 21: Daily Unique Browsers
Daily Unique Browsers Smartphones (*1) PC+Others (*2) Usage via 54.28 59.05 smartphones 45.92 32.16 65.1% FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q *1 Quarterly average; includes accesses to Yahoo! JAPAN via applications and browsers. Access via applications and access via browsers are counted separat
Slide 22: Number of Monthly Active User IDs
Number of Monthly Active User IDs (Million) 38.98 +15.0% YoY 33.90 28.49 29.90 March March March March 2014 2015 2016 2017 22 Note: Number of Yahoo! JAPAN IDs logged-in in each month.
Slide 23: Cumulative Smartphone Application Downloads
Cumulative Number of Smartphone Application Downloads (*) (Million) 480 Expanded further 380 270 160 FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q 23 * Cumulative numbers of downloads of iOS and Android applications published by Yahoo! JAPAN.
Slide 24: Ranking for Cumulative Smartphone Application Downloads
Ranking for the Cumulative Number of Smartphone Application Downloads 1. Yahoo! JAPAN 2016 Domestic Application 2. LINE Publishers Ranking in Japan for All Downloads (*) 3. Apple 4. Google No.1 5. CyberAgent 24 * App Annie Index: 2016 Retrospective (iOS + Google Play)
Slide 25: Total Domestic e-Commerce Transaction Value
Total Domestic e-Commerce Transaction Value (¥) ASKUL (*1) 1.8T Shopping-related (*2) 212.6B Auction-related (*3) 1.5T Record 116.8B 1.1T 1.1T 743.6B 522.3B 372.7B 353.7B 753.2B 818.1B 866.7B 896.6B high FY2013 FY2014 FY2015 FY2016 *1 ASKUL’s non-consolidated BtoB-related revenue (transaction value;
Slide 26: Core Businesses
Core Businesses Advertising Auctions Membership Services 26
Slide 27: Advertising-Related Revenue
Advertising-Related Revenue (¥Billion) Display Paid search 78.6 69.3 71.7 63.9 24.4 29.6 37.0 41.2 +9.6% 39.4 39.7 YoY 34.6 37.3 FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q 27
Slide 28: Paid Search Advertising Revenue YoY Growth Rate
Paid Search Advertising Revenue –YoY Growth Rate +7.7% 5.9% Continuous functional +0.6% improvements Increase in demand from -1.8% -3.4% advertisers -5.4% -12.7% -10.4% -10.9% FY2014 FY2015 FY2016 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 28
Slide 29: Advertising Revenue via Smartphones
Advertising Revenue via Smartphones (¥Billion) 41.7 Display Ad Paid Search Ad 31.6 24.8 YoY 17.0 +32.0% FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q 29
Slide 30: Introduction of In-feed Video Ads
Introduction of In-feed Video Ads Introduction of In-feed Video Ads Official sale started on March 15 ・Distributed through “Yahoo! Display Ad Network (YDN)” ・Displayed on Yahoo! JAPAN smartphone applications ・Adopted per-view rate 30 Note: Screen image for illustrative purpose only and is subject to
Slide 31: Core Businesses
Core Businesses Advertising Auctions Membership Services 31
Slide 32: Auction-Related Transaction Value
Auction-Related Transaction Value (*) (¥Billion) 227.9 221.0 Steady 198.8 209.0 1Q-3Q growth FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q 32 * Includes transaction values of YAHUOKU!, tradecarview (http://www.tradecarview.com/), BOOKOFF Online (http://www.bookoffonline.co.jp/), and that of Yahoo! Tickets
Slide 33: Core Businesses
Core Businesses Advertising Auctions Membership Services 33
Slide 34: Number of Monthly Paid-Membership IDs
Number of Monthly Paid-Membership IDs (Million) Others Yahoo! Premium members 17.73 16.73 15.46 14.60 Yahoo! Premium members +6.0% YoY March March March March (end of month) 2014 2015 2016 2017 34 Note: Total of Yahoo! Premium members, Yahoo! BB subscribers, monthly paid-subscribers of digital conte
Slide 35: Upfront Investment-Stage Businesses
Upfront Investment- Stage Businesses Shopping Credit Card 35
Slide 36: Number of Items
Number of Items (Million) 270 Biggest selection 150 200 in Japan(*) 90 (end of month) March March March March 2014 2015 2016 2017 36 Note: Number of items listed on Yahoo! Shopping. * Survey by Yahoo! JAPAN
Slide 37: Shopping Transaction Value
Shopping Transaction Value (¥Billion) 137.0 +21.4% 112.8 YoY 71.6 69.7 約 70% FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q 37 Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of every month) of LOHACO business, operated by ASKUL
Slide 38: Shopping-Related Advertising Revenue
Shopping-Related Advertising Revenue (¥Billion) 5.4 YoY 2x 2.6 1.1 約 70% 0.9 FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q Note: Total of Yahoo Japan Corporation’s non-consolidated Shopping-related advertising revenue; advertising revenue of StoreMatch, an advertising product in Yahoo! Shopping sold by Va
Slide 39: Upfront Investment-Stage Businesses
Upfront Investment- Stage Businesses Shopping Credit Card 39
Slide 40: Number of Valid Credit Card Holders
Number of Valid Credit Card Holders (Million) Launched Yahoo! JAPAN Card 3.60 YoY 1.6 x 2.21 0.61 0.59 March March March March (end of month) 2014 2015 2016 2017 40 Note: Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”).
Slide 41: Credit Card Transaction Value
Credit Card Transaction Value (¥Billion) Launched Yahoo! JAPAN Card 184.6 YoY 2.2 x 84.7 15.9 14.7 FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q Note: Excludes cash advance service. 41 Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”).
Slide 42: Number of Yahoo! Wallet Accounts
Number of Yahoo! Wallet Accounts (Million) 36.53 33.47 Record 30.54 26.46 high March March March March (end of month) 2014 2015 2016 2017 42 Note: Yahoo! Wallet is a payment system which uses Yahoo! JAPAN IDs and passwords for authentication. It enables users to make payments for services and mercha
Slide 43: Yahoo! Wallet Transaction Value
Yahoo! Wallet Transaction Value (¥Billion) 323.6 YoY +18.7% 272.6 154.3 164.6 FY2013 FY2014 FY2015 FY2016 4Q 4Q 4Q 4Q Note: Yahoo! Wallet is a payment system which uses Yahoo! JAPAN IDs and passwords for authentication. It enables users to make payments for services and 43 merchandise using register
Slide 44: Efforts to Be Made from FY2017 and Beyond
Efforts to Be Made from FY2017 and Beyond 44
Slide 45: From a PC Internet Continent to a Smartphone Internet Continent
From a “PC Internet Continent” in 2012 to a “Smartphone Internet Continent” 45
Slide 46: Proportion of Daily Unique Browsers via Smartphones
Proportion of Daily Unique Browsers (DUBs) via Smartphones 65.1% Proportion of DUBs 35.7% via smartphones expanded further FY2012 FY2016 4Q 4Q 46 Note: Proportion of accesses to Yahoo! JAPAN via smartphone applications and browsers in DUBs. Access via applications and access via browsers are counted
Slide 47: Proportion of Advertising Revenue via Smartphones
Proportion of Advertising Revenue via Smartphones 53.1% Advertising revenue via smartphones 16.0% exceeded 50% FY2012 FY2016 4Q 4Q 47 Note: Proportion of advertising revenue via smartphones in total advertising revenue. Prior data have been retroactively adjusted. Contains a part of advertising reve
Slide 48: Proportion of e-Commerce Transaction Value via Smartphones
Proportion of Total Domestic e-Commerce Transaction Value (*1) via Smartphones (*2) 51.4% Total domestic e-Commerce transaction value via smartphones 23.3% exceeded 50% FY2012 FY2016 4Q 4Q *1 Includes Shopping-related and Auction-related transaction values. Shopping-related transaction value include
Slide 49: New Challenge: Become a Multi-Big-Data-Driven Company
New Challenge: We will Climb the Mountain of Multi Big Data to Become a Multi-Big- Data-Driven Company Data accumulation Data utilization 49 Image: Aflo
Slide 50: Focus on Individual User Instead of Display Frames
Key to Success in Internet: Focus on “Individual User” Instead of “Display Frames” New era has begun where accuracy of personalization differentiates service levels. Before Now/Future Personalized field: Few % Personalized field: Almost all 50 Image: Aflo
Slide 51: Yahoo! JAPAN's Multi Big Data
Yahoo! JAPAN’s Multi Big Data: Strength in Diversity, Quantity and Freshness Our strength: a wide range of services and one of the largest number of users in Japan More than100 Yahoo! JAPAN services Monthly Users Approx. 60 million (*2) Yahoo! JAPAN ID Daily Unique Browsers Monthly Active Users Appr
Slide 52: Promote Multi-Big-Data Utilization to Further Increase Earnings
Promote Multi-Big-Data Utilization to Further Increase Earnings Deliver appropriate content through deeper understanding of users Improve: view-through rate in Media click-through rate in Advertising conversion rate in e-Commerce 52 Image: Aflo
Slide 53: Prerequisites to Accelerate Transformation into a Data-Driven Company
Prerequisites to Accelerate Transformation into a Data-Driven Company 53
Slide 54: Two Crucial Conditions to Be Met
Two Crucial Conditions to Be Met Further accumulation of multi big data Become No. 1 in Media, e-Commerce and Financial & Payment businesses Strengthen data science Establish an eco-system for growth by leveraging data 54
Slide 55: Quality and Quantity of Multi Big Data Vary by Services
Now: Quality and Quantity of Multi Big Data Vary by Services Number of users also varies. Media EC Financial & Payment * Image 55
Slide 56: Improve Balance in Quality and Quantity of Multi Big Data
Improve Balance in Quality and Quantity of Multi Big Data Aim to increase the overlap of service users Media EC Financial & Payment * Image 56
Slide 57: Establish an Eco-System for Growth by Leveraging Data
Establish an Eco-System for Growth by Leveraging Data Media EC Financial & Payment Data Science 57 Image: Aflo
Slide 58: FY2017 Policies: Three Measures
FY2017 Policies Three Measures 58
Slide 59: Maximize e-Commerce transaction value
Maximize e-Commerce transaction value Become a “rich media” Become a data-driven company 59
Slide 60: Maximize e-Commerce transaction value
Maximize e-Commerce transaction value Become a “rich media” Become a data-driven company 60
Slide 61: Our Achievements (e-Commerce)
Our Achievements (e-Commerce) Announced a new Yahoo! Shopping business model in October 2013. Transaction-based Monthly tenant fee system-use fees Free Free 61
Slide 62: Our Achievements (e-Commerce): Items and Stores
Our Achievements (e-Commerce) Number of Items (*1) Number of Stores(*2) (Million) (Thousand) 514 270 Approx. Approx. Largest 3x 6.5x in Japan (*3) 90 78 FY2013 FY2016 FY2013 FY2016 4Q 4Q 4Q 4Q *1 Figures as of the end of each quarter. Number of items listed on Yahoo! Shopping. *2 Figures as of the e
Slide 63: Our Achievements (e-Commerce): Transaction Value and Ad Revenue
Our Achievements (e-Commerce) (*1) Shopping-Related Shopping Transaction Value (*2) Advertising Revenue (¥Billion) 137.0 (¥Billion) 5.4 Approx. 2x Approx. 6x Renewing 71.6 records 0.8 FY2013 FY2016 FY2013 FY2016 4Q 4Q 4Q 4Q *1 Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s trans
Slide 64: e-Commerce Strategy 1.0: Explosive Increase in Sellers
e-Commerce Strategy 1.0 Explosive Increase in Sellers 64
Slide 65: e-Commerce Strategy 2.0: Explosive Increase in Buyers
e-Commerce Strategy 1.0 Explosive Increase in Sellers e-Commerce Strategy 2.0 Explosive Increase in Buyers 65
Slide 66: Measures Targeting Yahoo! Premium Members Were Successful
Measures Targeting Yahoo! Premium Members Were Successful Measures focusing on specific customer segments have been effective. Yahoo! Shopping transaction value Premium Members Non-Premium Members Transaction value generated Started measures by Yahoo! Premium members targeting Yahoo! Premium members
Slide 67: Campaign Targeting SoftBank Members
From Feb. 2017, Conducting a Campaign Targeting SoftBank Members Traffic referrals to Shopping business leveraging membership bases 20% 16% 5のつく日 Point provision (*) 14% +4% 10% +2% +4% +9% 1% Normal point SoftBank Yahoo! Premium Yahoo! JAPAN Card Days ending in 5 67 * Rewarded only during the campa
Slide 68: Usage of Yahoo! Shopping Services by SoftBank Members
Usage of Yahoo! Shopping Services by SoftBank Members Started campaign 100% Proportion of transaction value generated by 50% SoftBank members grew 0% 2017 Jan. Feb. Mar. Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of
Slide 69: Percentage of Yahoo! Shopping Buyers among SoftBank Members
Percentage of Yahoo! Shopping Buyers among SoftBank Members 12% Huge growth potential March 2017 69 Note: Percentage of those who used Yahoo! Shopping in March 2017 out of all SoftBank members with Smart Login setup.
Slide 70: e-Commerce Strategy 2.0: Synergy with SoftBank
e-Commerce Strategy 2.0 Enhance synergy with SoftBank SoftBank Y!mobile Transaction value 70
Slide 71: 10x Point Provision to Continue for SoftBank Members
From June Onward, 10x Point Provision to Continue for SoftBank Members (*1) SoftBank members will also be awarded with all the privileges of Yahoo! Premium members(*2) Point provision 10% 10% 4% 9% 5% 1% 1% Normal point Until May From June onwards 71 *1 Rewarded only during the campaign period. *2 S
Slide 72: e-Commerce Strategy 2.0: Yahoo! Premium
e-Commerce Strategy 2.0 Yahoo! Premium Transaction value Yahoo! Premium 72
Slide 73: Enhance Privileges for Yahoo! Premium Members
Enhance Privileges for Yahoo! Premium Members 5% point provision for purchases of videos and e-books starting on June 1, 2017 73
Slide 74: e-Commerce Strategy 2.0: YAHUOKU!, Yahoo! Money
e-Commerce Strategy 2.0 YAHUOKU!, Yahoo! Money and Yahoo! Premium YAHUOKU! Transaction value Yahoo! Money Yahoo! Premium Yahoo! Premium 74
Slide 75: Encourage YAHUOKU! Users to Use Yahoo! Shopping
Encourage YAHUOKU! Users to Use Yahoo! Shopping Further expand the overlap of users of two e-Commerce services YAHUOKU! Yahoo! Shopping * Image 75
Slide 76: Continue Measures Linking YAHUOKU! and Yahoo! Money
Continue Measures Linking YAHUOKU! and Yahoo! Money Promote use of e-Commerce services through point provision (*) and expanded use of Yahoo! Money 76 * Rewarded only during the campaign period. Please refer to the campaign site for detail (https://auctions.yahoo.co.jp/topic/promo/sell_pointback_cp/
Slide 77: Trend in Balance of Yahoo! Money
Trend in Balance of Yahoo! Money Growth potential of e-Commerce transaction value Rapidly increasing 0 May Jul. Sep. Nov. Jan. Mar. 2016 2017 77
Slide 78: e-Commerce Strategy 2.0: Yahoo! JAPAN Card
e-Commerce Strategy 2.0 Yahoo! JAPAN Card Transaction value Yahoo! JAPAN Card 78
Slide 79: Yahoo! JAPAN Card Acquisition Campaign
Now Conducting Yahoo! JAPAN Card Acquisition Campaign * 79 * Rewarded only during the campaign period. Please refer to the campaign site for detail (https://card.yahoo.co.jp/campaign/).
Slide 80: Expand Monetization Opportunities in Financial & Payment Business
In Order to Expand Monetization Opportunities in Financial & Payment Business… Retain payment functions within Yahoo! JAPAN Group along with the expansion of e-Commerce business Usage ratio of payment e-Commerce services offered by In-house transaction value (*1) Yahoo! JAPAN Group payment ratio (*2
Slide 81: e-Commerce Strategy 2.0: Maximize Group Synergy
e-Commerce Strategy 2.0 Effectively use Yahoo! JAPAN’s assets and maximize group synergy Yahoo! Shopping YAHUOKU! SoftBank Y!mobile Transaction value Yahoo! JAPAN Card Yahoo! Premium Yahoo! Money 81
Slide 82: Growth Target for Shopping Transaction Value
Growth Target for Shopping Transaction Value Strive to achieve a sustainable growth rate of +30% YoY FY2016 FY2017 FY2018 FY2019 82 Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of every month) of LOHACO business, opera
Slide 83: Maximize Transaction Value to Generate Multiple Business Models
Maximize Transaction Value to Generate Multiple Business Models Monetize through related businesses derived from e-Commerce transaction value Shopping Financial & Payment Increase in Increase in advertising revenue payment revenue Auctions Maximize Media Increase in system- transaction Increase in u
Slide 84: Become a rich media
Maximize e-Commerce transaction value Become a “rich media” Become a data-driven company 84
Slide 85: Status of Yahoo! News Users
Status of Yahoo! News Users (Million) Growth potential Growth potential Approx. 69.00 Approx. Approx. Aim to further 65.70 Approx. increase users Approx. 39.00 33.00 in both devices PC (*1) (*2) Smartphone (*1) Smartphone (*2) PC Internet users Internet users Yahoo! News Yahoo! News users users 85 *
Slide 86: Further Enhancement of Video Content
Further Enhancement of Video Content Promote content procurement in order to become a “rich media” 86 Image: Partly from Aflo Note: Screen image for illustrative purpose only and is subject to change.
Slide 87: Start of Yahoo! News Video
Start of Yahoo! News Video Began with: 24-hour live streaming of “NTV News 24” on April 18, 2017 Offers a variety of news experiences using videos 87 Note: Screen image for illustrative purpose only and is subject to change. Image: Aflo
Slide 88: Become a data-driven company
Maximize e-Commerce transaction value Become a “rich media” Become a data-driven company 88
Slide 89: From Data Accumulation to a More Advanced Use of Data
From Data Accumulation to a More Advanced Use of Data Further enhance the strength of data science Trend in click through rate of YDN in smartphones Over 70% improvement compared to FY2014-1Q FY14 FY15 FY16 1Q 3Q 1Q 3Q 1Q 3Q 89
Slide 90: Improved Recommendation Accuracy Using Web Search History
[Actual Example] Improved Recommendation Accuracy By Using Web Search History Recommendation of appropriate items to users without order history by leveraging data Former method New method Search with intention to buy Baseball results No order history of Yahoo! Shopping smartphone case sunglasses No
Slide 91: Improved Recommendation Accuracy on Top Page
[Actual Example] Improved Recommendation Accuracy on Yahoo! JAPAN Top Page Former method Match by using words Article search engine User dwell time New method (using new ・Share the axis of articles containing morphemes with similar meaning 6.9% (*) technologies such ・Recognize browsing history by us
Slide 92: Accelerate the Growth of Other Businesses Leveraging Data
Accelerate the Growth of Other Businesses Leveraging Data Data utilization across businesses will allow reciprocal growth in each field. Media Improved content/ad targeting accuracy EC Financial & Payment Improved purchase rate Improved accuracy in credit judgement クレジットカード 92
Slide 93: Transform into a Company That Wins with its Technology
Transform into a Company That Wins with its Technology Constantly build and maintain the latest development environment Transform Update & to a modern development maintain a cutting-edge environment development environment 93
Slide 94: Financial Outlook for FY2017
Financial Outlook for FY2017 94
Slide 95: Outlook for Additional Investment in FY2017
Outlook for Additional Investment in FY2017 Proactive investment in each measure Estimate (¥Billion) Maximize e-Commerce transaction value 25 (*1) (*2) Become a data-driven company 15 95 *1 Includes profit decrease as a result of offsetting the revenue of Auction-related business and Credit Card bus
Slide 96: Outlook for Sales Promotion Costs
Outlook for Sales Promotion Costs (included in outlook for additional investment in FY2017) (¥Billion) 51.0 FY2017 Breakdown (*1) : Shopping,YAHUOKU! Approx. 60% Financial & Payment, Approx. 30% Membership Services (*2) 35.4 Approx. 10% Media & Others FY2016 FY2017 96 *1 Total of sales promotion cos
Slide 97: Outlook for Operating Income
Outlook for Operating Income Loss related to the fire incident at ASKUL 205 (¥Billion) 13 175 - 185 Proactive investment in FY2017 aiming to maximize e-Commerce 192 transaction value and transform into a data-driven company FY2016 FY2017 97
Slide 98: Supplemental Information
Supplemental Information 98
Slide 99: Business Segment Breakdown
Business Segment Breakdown Marketing Solutions Business ・Advertising: Display advertising (“Yahoo! Display Ad Network (YDN)”, “Premium Advertising”), Paid search advertising “Sponsored Search” ・Business Services: CRM-related services, Media-related services and others ・Personal Services: Web site pr
Slide 100: Change in Business Segment (Plan)
Change in Business Segment (Plan) We plan to introduce a new business segment from FY 2017 due to organization change. FY2016 FY2017 Marketing Solutions Media Consumer Commerce Others Payment-related Data center-related Others 100
Slide 101: Advertising Products
Advertising Products Main Main Fee Placement Advertising Products Advertiser Format Calculation Pages Base Paid search Search results Sponsored Search® Text Major advertising pages Per-click rate corporations (Performance-based) *2 Text Yahoo! Display Small and Banner medium-sized Ad Network YDN and
Slide 102: FY2016 Investment Records
FY2016 Investment Records Total amount of investments : approx. 24 billion yen Major investments Ratio of voting Companies Date rights YJ Tech Investment Partnership May 2016 98.6% *1 Commerce21 Corporation June 2016 100.0% eBOOK Initiative Japan Co., Ltd. September 2016 44.3% Note: TotalAsset Astma
Slide 103: Organization Chart of Yahoo Japan Corporation
Organization Chart of Yahoo Japan Corporation President & As of April 1, 2017 Representative Director SEVPCO / COO / CEO Marketing & CTO SEVPCO / CFO Communication Division (Chief Technology Officer) Board of Directors ID Services Management Audit and Supervisory Creator Strategy Office Corporate Gr
Slide 104: Consolidated Subsidiaries and Associates
Consolidated Subsidiaries and Associates Major consolidated subsidiaries (As of March 31, 2017) ASKUL Corporation Carview Corporation Dynatech inc. eBOOK Initiative Japan Co., Ltd. ecohai Co., Ltd. FirstServer, Inc. GYAO Corporation IDC Frontier Inc. Ikyu Corporation Netrust, L
Slide 105: Corporate Governance System
Corporate Governance System 105
Slide 106: 106
106