Ly Corporation · TSE:4689

Ly — Yahoo Japan — FY2010 2Q Earnings Presentation

26 slides from Ly's earnings presentation, Oct 22, 2010

  1. Slide 1: FY2010 2Q Business Results (Jul.-Sept. 2010)

    Yahoo Japan Corporation FY2010 2Q Business FY2010-2Q B i R Results lt ((Jul.-Sept. p 2010)) October 22, 2010 1

  2. Slide 2: Forward-looking statements notice

    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

  3. Slide 3: FY2010-2Q Highlights – Financial Data

    FY2010-2Q Highlights – Financial Data Despite a decrease in revenue due to transfer of the research business to MACROMILL, INC., quarterly revenue increased mainly led by listing advertising, display advertising, information listing and Yahoo! Shopping- related revenues. Although operating and ordin

  4. Slide 4: FY2010-2Q Highlights – Media Business

    FY2010-2Q Highlights – Media Business Listing advertising through advertising agencies (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Increased advertisingg for travel/transportation/leisure p as well as for cosmetics/toiletries by y major j advertise

  5. Slide 5: FY2010-2Q Highlights – BS Business

    FY2010-2Q Highlights – BS Business Listing advertising through online order (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Increase in the number of online agencies contributed to favorable growth in the number of PC and mobile phone accounts. Consequ

  6. Slide 6: FY2010-2Q Highlights – Consumer Business

    FY2010-2Q Highlights – Consumer Business E-Commerce related revenues (Yahoo! Auctions and Yahoo! Shopping - On Yahoo! Shopping Shopping, various sales promotions conducted in conjunction with 11th Anniversary of Start of Service and Softbank Hawks League Victory anniversary campaigns resulted in a y

  7. Slide 7: Game Business Strategies

    Game Business Strategies The Company started to offer new services in collaboration with a variety of external partners in order to strengthen its efforts in the rapidly-growing online game market. Tie-up Tie up with SQUARE ENIX CO., LTD. On August 9, 2010, Yahoo! JAPAN started to offer Sengoku IXA

  8. Slide 8: Review of FY2010-2Q Business Outlook

    Review of FY2010-2Q Business Outlook Listing advertising and display advertising quarterly sales rose substantially year on year. year The Company achieved operating income and ordinary income at the upper end of the projection range, as sales promotion expenditures were lower than forecast even tho

  9. Slide 9: FY2010-3Q Business Outlook

    FY2010-3Q Business Outlook Focusing mainly on advertising-related sales, we will work to achieve year-on-year growth in quarterly sales. We will aim to expand e-commerce-related sales heading toward the end-of-sales campaign, and to i increase revenues ffrom paid id di digital it l content, t t b ba

  10. Slide 10: FY2010 2Q Financial Results

    FY2010 2Q Financial Results FY2010-2Q •Major Consolidated subsidiaries at the end of FY2010-2Q ‹ Cirius Technologies, Inc. ‹ Firstserver, Inc. ‹ GyaO CORPORATION ‹ IDC Frontier Inc. ‹ Indival, Inc. ‹ Netrust, Ltd. ‹ NewsWatch, Inc. ‹ Yahoo Japan Customer Relations Corporation ‹ Y’s Insurance Inc. ‹

  11. Slide 11: FY2010-2Q Statements of Income

    FY2010-2Q Statements of Income 2010-2Q 2009-2Q Changes Revenue (¥100M) 711 680 4.5 % Cost of Sales (¥100M) 73 83 -12.3 % Gross Profit (¥100M) 637 596 69% 6.9 SG&A (¥100M) 253 252 0.2 % Operating Income (¥100M) 384 344 11.7 % Ordinary Income (¥100M) 385 341 12.8 % Quarterly Net Income (¥100M) 214 200

  12. Slide 12: Quarterly Revenue

    Quarterly Revenue (¥ 100M) Gross basis Net basis 600 Consumer Business BS 400 Business 200 Media Business 0 Gross Net 07/7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 7-9 Total 610 700 742 655 660 669 671 676 680 709 732 705 711 *Figures of 08/1-3 and before are indicated on a gross

  13. Slide 13: Quarterly Profits

    Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 07/7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 7-9 Operating Income 300 312 337 328 330 331 355 342 344 364 387 376 384 Ordinary Income 293 308 328 324 326 328 350 340 341 364 386 375 385 Operating Margin 49% 45%

  14. Slide 14: FY2010-2Q Performance Breakdown by Business

    FY2010-2Q Performance Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Ordinary Operating Ordinary Revenue SG&A by Business Group Profit Income Income Margin Margin Media Advertising 96% Business 264 Others 4% 235 96 139 140 52.7% 53.0% Advertising 63% BS Corporate Services 26% Busines

  15. Slide 15: Quarterly SG&A Breakdown

    Quarterly SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 10/2Q % 10/1Q Change 09/2Q Change Personnel Expenses 80 31.6% 79 0.3% 74 7.5% Increase in payment of bonus. Number of personnel 4,763 in total Business Commissions 32 13.0% 32 1.5% 31 4.5% (Declined 3.6% year on year mainly due

  16. Slide 16: FY2010-2Q Balance Sheets

    FY2010-2Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2010/9/30 2009/9/30 Decrease Increase/Decrease Assets Current Assets 1,951 1,439 511 Cash and Deposits 1,362 902 460 Increase in cash flow from operating activities Accounts Receivable -Trade 333 335 -2 Others 216 159 57 Incre

  17. Slide 17: FY2010-2Q Cash Flow Statements

    FY2010-2Q Cash Flow Statements FY2010-2Q (¥ 100M) Major Items Major Factors for Changes (Jul.-Sept 2010) Operating Activities 158 Quarterly Net Income before Income Taxes 369 Increase in quarterly net income before income taxes Depreciation Expenses 24 Accounts Receivable/Payable-Trade -0 Other Curr

  18. Slide 18: Number of Directors and Employees

    Number of Directors and Employees (at the End of Quarter) (Number of People) 5,000 4,000 3,000 2,000 1,000 0 07/9 12 08/3 6 9 12 09/3 6 9 12 10/3 6 9 Directors and uditors of Subsidiaries 33 31 32 26 25 24 39 31 32 30 30 24 24 Employees of Subsidiaries 1,000 1,025 1,062 685 747 814 977 1,082 1,228 1

  19. Slide 19: Appendix

    Appendix 19

  20. Slide 20: Listing Advertising Sales by Industry

    Listing Advertising Sales by Industry Industries with large year on year increase Industries with large quarter on quarter increase „ Travel/Transportation/Leisure „ Travel/Transportation/Leisure „ Cosmetics/Toiletries/Health Foods and Appliances pp „ Fashion/Accessories „ Fashion/Accessories „ Cosm

  21. Slide 21: Display Advertising Sales by Industry

    Display Advertising Sales by Industry Industries with large year on year increase Industries with large quarter on quarter increase „ Finance/Insurance/Securities „ Finance/Insurance/Securities „ Internet Information Site/Email service „ Medicament/Pharmaceuticals „ Autos (Transport Equipment) „ Cos

  22. Slide 22: Additional Business Data: 2010-2Q

    Additional Business Data: 2010-2Q Average Daily Transaction Value Jul.-Sept. 2009 Jul.-Sept. 2010 Commerce \100M C 100M 24 3 24.3 24 5 24.5 Auction \100M 17.6 17.0 Shopping \100M * 6.6 7.5 Through Mobile \100M 4.0 4.0 Subscriber Lines for Yahoo! BB Services End of Sept. 2009 End of Sept. 2010 Total

  23. Slide 23: Organization Chart of Yahoo! JAPAN

    Organization Chart of Yahoo! JAPAN Auditors Board of Directors President & CEO CSO CCO CTO Director & COO President & CEO Director & CFO Media Business BS Business Consumer R&D Group Business Administrative Group (499) Group (314) Group (288) (1,659) Division Regional Front-End Media M di Service S

  24. Slide 24: Yahoo! JAPAN Group – Major Companies

    Yahoo! JAPAN Group – Major Companies Consumer Media Business BS Business Operations Business Group Group Group Group p Yahoo Japan Y’s Sports Inc. IDC Frontier Inc. Y’s Insurance Inc. Customer Relations Corporation GyaO y Firstserver Inc Firstserver, Inc. N t Netrust, t Ltd Ltd. CREO CO., LTD. CORPO

  25. Slide 25: Old & New Business Segments Breakdown Comparison Table

    Old & New Business Segments Breakdown Comparison Table --Former Main Components-- --New Main Components-- Advertising Media Business Media Business Advertising Display advertising (banner, text, email, and video advertising) Display advertising (banner, text, email, and video advertising) Listing ad

  26. Slide 26: IR information

    Yahoo Japan p Corporation p IR information is available at : http://ir.yahoo.co.jp/en/ 26

Yahoo Japan — FY2010 2Q Earnings Presentation on 6ix