Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q3 FY2008 Earnings Presentation
32 slides from Ly's earnings presentation, Jan 27, 2009
Slide 1: Yahoo Japan Corporation FY 2008-3Q Financial Results
Yahoo Japan Corporation FY 2008-3Q Financial Results (Oct.-Dec. 2008) January 27, 2009 1
Slide 2: Forward-looking statements and revenue presentation basis
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 3: FY2008-3Q Highlights – Financial Data
FY2008-3Q Highlights – Financial Data Third quarter revenue amounted to ¥66.9 billion.* Operating income was ¥33.1 billion, increasing 6.0% from a year earlier. Ordinary income totaled ¥32.8 billion, rising 6.5% over the same period last year. Net income climbed to ¥19.1 billion, advancing 11.4% yea
Slide 4: FY2008-3Q Highlights – Advertising
FY2008-3Q Highlights – Advertising Display advertising (Banner advertising, etc.) – During the period under review, the further slowdown in the economy and the deterioration in the business climate had a effect on the overall advertising market. Under such circumstances, the Group focused on sales
Slide 5: FY2008-3Q Highlights – Business Services
FY2008-3Q Highlights – Business Services E-commerce-related revenues (Auction Business, Shopping Business, etc.) – Yahoo! Shopping emphasized seasonal sales promotion special features, improved its customer interface by simplifying shopping procedures, and added a review function. As a result, tran
Slide 6: FY2008-3Q Highlights – Personal Services
FY2008-3Q Highlights – Personal Services Yahoo! Auctions system-use revenues (Auction Business) – Yahoo! Auctions total transaction volume in the third quarter declined about 3%, to ¥187.8 billion, with system use fees revenues falling slightly year on year. Yahoo! Premium membership revenues (Mem
Slide 7: FY2008-3Q Highlights – Cost Reduction Measures
FY2008-3Q Highlights – Cost Reduction Measures In preparation for further deterioration in the business climate, the Group began introducing group-wide cost reduction measures to strengthen its financial structure. <Review of Fixed Costs> • Combine offices in Roppongi Hills and Shiodome into Tokyo M
Slide 8: FY2008-3Q Financial Results (Consolidated)
FY2008-3Q Financial Results (Consolidated) •Consolidated subsidiaries at the end of FY2008-3Q Firstserver, Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Overture K.K. Tricle Inc. Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s Insurance Inc.
Slide 9: FY2008-3Q Statements of Income
FY2008-3Q Statements of Income 08/10-12 08/10-12 07/10-12 Changes (Gross (Net basis) (Gross basis) (Gross basis) Comparison) Revenue (¥100M) 669 749 700 7.0 % Cost of Sales (¥100M) 70 116 99 16.5 % Gross Profit (¥100M) 599 633 600 5.4 % Operating Income (¥100M) 331 331 312 6.0 % Ordinary Income (¥10
Slide 10: Quarterly Revenue
Quarterly Revenue (¥ 100M) 600 400 200 0 05/10-12 06/1-3 4-6 7-9 10-12 07/1-3 4-6 7-9 10-12 08/1-3 466 470 492 512 545 575 566 610 700 742 655 660 669 725 733 749 10 • Figures on gross basis for 08/4-6 and after are for your reference.
Slide 11: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 05/10-12 06/1-3 4-6 7-9 10-12 07/1-3 4-6 7-9 10-12 08/1-3 4-6 7-9 10-12 Operating Income 211 235 239 250 276 295 296 300 312 337 328 330 331 Ordinary Income 205 229 229 247 266 284 285 293 308 328 324 326 328 Operating Margin 45% 50
Slide 12: FY2008-3Q Revenue Breakdown by Business (Net basis)
FY2008-3Q Revenue Breakdown by Business (Net basis) (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Unit Profit Income Margin Search Business & Overture K.K. 63% Media Business 10% Advertising 349 Service Supervising Division 10% 298 117 180 51.6% Auction Business 3% Soci
Slide 13: SG&A Breakdown
SG&A Breakdown (¥ 100M) Major factors for YoY changes 08/3Q 08/2Q 07/3Q (Net) (Net) (Gross) Personnel expenses 68 25.7% 65 5.4% 60 13.1% Business commissions 37 14.2% 42 -10.1% 40 -6.3% Acquisition of software and Depreciation expenses 29 10.9% 26 10.7% 24 16.7% servers Communication charges 24 9.3%
Slide 14: FY2008-3Q Balance Sheets
FY2008-3Q Balance Sheets Increase/ Major Factors for Major Items 2008/12/31 2007/12/31 (¥ 100M) Decrease Increase/Decrease Assets Increase from operating activities and Current Assets 1,275 1,299 -24 decrease from acquisition of own Cash and Cash Equivalents 748 819 -70 stocks Accounts Receivable -T
Slide 15: FY2008-3Q Cash Flow Statements
FY2008-3Q Cash Flow Statements FY2008-3Q (¥ 100M) Major Items Major Factors for Changes (Oct.-Dec. 2008) Operating Activities 119 Net Income before Income Taxes Increase in quarterly net income 327 before income taxes Depreciation Expenses 30 Accounts Receivable/Payable-Trade 4 Other Current Assets/
Slide 16: Number of Directors and Employees
Number of Directors and Employees (Number of People) (at the End of Quarter) 4,000 3,000 2,000 1,000 0 05/12 06/3 6 9 12 07/3 6 9 12 08/3 6 9 12 Directors and uditors of Subsidiaries 33 33 31 31 25 27 27 33 31 32 26 25 24 Employees of Subsidiaries 583 594 669 670 634 711 773 990 1,015 1,053 680 742
Slide 17: Review of FY2008 3Q Business Outlook
Review of FY2008 3Q Business Outlook Amid the growing severity of the advertising market, display advertising made a stronger than expected showing, mainly in Brand Panel and targeting advertising. In contrast, paid search advertising was relatively slow, particularly among major advertisers in cert
Slide 18: FY2008-4Q Business Outlook
FY2008-4Q Business Outlook (Consolidated) Under the assumption of continued uncertainty in the business climate, the Group will emphasize thorough reduction of selling, general and administrative expenses. While recruiting related businesses are expected to continue to face difficulties, the Group w
Slide 19: FY2008 Business Outlook (Consolidated)
FY2008 Business Outlook (Consolidated) (¥ 100M) FY2007 FY2008 FY2008 (Actual) (Forecast) (Forecast) Gross Gross Net Revenue Operating Income Ordinary Income Net Income The above FY 2008 full year projection is the accumulation of the results of FY 2008-1Q to 3Q and FY2008-4Q projection. Figures on g
Slide 20: Review of Operations by Business Unit
Review of Operations by Business Unit 20
Slide 21: Review of Operations by Business Unit (1)
FY2008-3Q Review of Operations by Business Unit (1) Search Business • Launched Yahoo! Encyclopedia, a service offering searching and use of Shogakukan Inc.’s Complete Encyclopedia of Japan (Approximately 130,000 entries, about 500 thousand key words) absolutely free. • Yahoo! Search: Expanded the di
Slide 22: Review of Operations by Business Unit (2)
FY2008-3Q Review of Operations by Business Unit (2) Member Services Business • Ran various campaigns to acquire new subscribers, including a Yahoo! BB White Plan, a Full 10 Months of Free ADSL Campaign, a Maximum of 15,000 Points or Five Months Free Campaign under the Yahoo! BB Introduction Program,
Slide 23: Review of Operations by Business Unit (3)
FY2008-3Q Review of Operations by Business Unit (3) Lifestyle Business • Yahoo! BEAUTY: Launched Salon Search, a service that enables users to find beauty, esthetic, nail, and related salons; use discount coupons; and post word-of-mouth information. • Yahoo! Wedding: Implemented renewal of website.
Slide 24: Review of Operations by Business Unit (4)
FY2008-3Q Review of Operations by Business Unit (4) Shopping Business • Focused on running seasonal sales promotions for Christmas, year-end gift giving (Oseibo), and other seasonal events. • Added a shopping item review function. • Renewed the shopping cart function to simplify the purchasing proce
Slide 25: Review of Operations by Business Unit (5)
FY2008-3Q Review of Operations by Business Unit (5) New Businesses Office • Settlement Services: Began initial sales of the sports promotion lottery BIG through Yahoo! toto, targeting Yahoo! NetBanking and Yahoo! Card users. In addition, enabled the conversion of the Chobirich points of Chobirich Co
Slide 26: Appendix
Appendix 26
Slide 27: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with high year on year growth rate Cosmetics/Toiletries Foodstuffs Foodstuffs Cosmetics/Toiletries Real Estate/Construction Fashion/Accessories 07/3Q 4Q 08/1Q 2Q 3Q Finance/Insurance/Securities A
Slide 28: FY2008-3Q Major Advertisers
FY2008-3Q Major Advertisers Finance/Insurance/Securities Fashion/Accessories Sompo Japan Himawari Life Insurance Co.,Ltd. Richemont Japan Sumitomo Mitsui Banking Corporation Tiffany & Co. Japan Inc. The Bank of Tokyo-Mitsubishi UFJ, Ltd. Mobile Communications Services Autos (Transport Equipment) CAS
Slide 29: Additional Business Data: 2008-3Q
Additional Business Data: 2008-3Q Average Daily Transaction Volume Oct.-Dec. 2007 Oct.-Dec. 2008 Commerce \100M 26.9 26.7 Auction \100M 21.1 20.4 Shopping* \100M 5.8 6.3 Yahoo! Mobile e-commerce \100M 3.3 4.4 Subscriber Lines for Yahoo! BB Services End of Dec. 2007 End of Dec. 2008 Total (thousand l
Slide 30: Yahoo! JAPAN's share in Web Search Queries
Unauthorized use is not permitted Yahoo! JAPAN’s share in Web Search Queries Web search query market shares in Japan Yahoo! JAPAN still has the largest share Source: Video Research Interactive, access from home, Web Report. November 2008 Websites analyzed : Yahoo! JAPAN/Google/MSN Windows Live/goo/i
Slide 31: Organization
Organization Auditors Board of Directors President & CEO Director & COO Director & CFO CSO CCO CTO COO Office (3) Member Services Auction Business Search Business Administrative Business (112) (151) (153) Office (109) Information Security Office (78) Regional Services Media Business Shopping Legal O
Slide 32: IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 32