Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q3 FY2017 Earnings Presentation
53 slides from Ly's earnings presentation, Feb 2, 2018
Slide 1: FY2017-3Q Business Results
Yahoo Japan Corporation FY2017-3Q Business Results (October - December 2017) February 2, 2018
Slide 2: Table of Contents
Table of Contents P. 4 FY2017-3Q Financial Highlights P. 12 Usage Trend of Services P. 16 Media Business P. 24 Commerce Business P. 43 Technology P. 47 Supplemental Information Unless otherwise specified, English-language documents are prepared solely for the convenience of non-Japanese speakers. If
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: FY2017-3Q Financial Highlights
FY2017-3Q Financial Highlights 4
Slide 5: Executive Summary for FY2017-3Q
Executive Summary for FY2017-3Q Revenue 230.7 (¥B) YoY +4.3% Operating income 52.8 (¥B) YoY +2.0% EBITDA 63.9 (¥B) YoY +4.7% Net income attributable to owners of the parent 35.4 (¥B) YoY -0.5% Diluted EPS ¥6.2 YoY -0.5% Advertising-related revenue 77.8 (¥B) YoY +6.6% Via smartphones 55.4% Display ad
Slide 6: Executive Summary for FY2017-3Q
Executive Summary for FY2017-3Q Media Business -Paid search advertising revenue grew more than 6% YoY. -Launched premium video ads for smartphone Yahoo! JAPAN top page (browsers). Commerce Business -Shopping transaction value (*1) marked a record high. -Number of buyers in Yahoo! Shopping more than
Slide 7: Revenue
Revenue (¥Billion) 300 ¥230.7 billion Revenue of ASKUL Group Revenue excluding ASKUL Group YoY +4.3% 221.3 196.4 200 100 134.4 139.3 116.4 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q JGAAP IFRS Gross basis Net ba
Slide 8: Revenue Breakdown
Revenue Breakdown (¥Billion) 221.3 230.7 Media Business -0.5 6.5 7.0 YoY +4.0% 60.9 +1.8 62.8 Growth in paid search advertising revenue Commerce Business 86.9 +4.4 91.4 Revenue of ASKUL Group YoY +4.3% Excluding ASKUL Group YoY +3.1% Growth in Shopping-related advertising revenue Other Businesses 70
Slide 9: Operating Income
Operating Income (¥Billion) ¥52.8 billion Operating income of ASKUL Group YoY +2.0% Operating income excluding ASKUL Group 51.7 50 43.1 49.9 48.5 42.1 [+1.7] [+4.2] [+1.0] 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q
Slide 10: Factors of Change in Operating Income
Factors of Change in Operating Income Increase due to (¥Billion) business growth and streamlining 51.7 ＋ ASKUL Group (*) YoY difference 52.8 Investment for ＋ maximizing e-Commerce Investment for transaction value becoming a data-driven company FY2016 FY2017 3Q 3Q * Operating income of ASKUL Group co
Slide 11: Sales Promotional Activities
Sales Promotional Activities (¥Billion) FY2015 FY2016 FY2017 FY2017-3Q Rough breakdown Shopping 50% 18.6 Membership Services (*) 20% 14.9 13.7 13.3 Auction 20% 12.7 10.9 Financial & Payment 10% 8.5 9.5 6.5 4.2 5.2 1Q 2Q 3Q 4Q 11 Note: Total of sales promotion costs and advertising expenses. Excludes
Slide 12: Usage Trend of Services
Usage Trend of Services 12
Slide 13: Daily Unique Browsers
Daily Unique Browsers (Million) Smartphones*1 89.29 89.32 PC+Others *2 76.01 83.19 DUB via 63.59 smartphones 50.61 57.61 59.62 28.07 42.43 further expanded FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q *1 Quarterly average; includes accesses via applications and browsers. Access via applications
Slide 14: Number of Monthly Active User IDs
Number of Monthly Active User IDs (Million) 41.74 YoY 27.52 29.11 32.20 37.31 +12% December December December December December 2013 2014 2015 2016 2017 14 Note: Number of Yahoo! JAPAN IDs logged-in in each month
Slide 15: DAU of All Applications
DAU of All Applications (Million) 42.54 YoY +24% 43.94 40.30 34.43 36.54 FY2016 FY2017 3Q 4Q 1Q 2Q 3Q Note: Quarterly average of the number of users who browsed smartphone applications offered by Yahoo! JAPAN at least once a day. Users are counted separately for 15 each smartphone application, even
Slide 16: Media Business
Media Business Advertising Media 16
Slide 17: Advertising-Related Revenue
Advertising-Related Revenue (¥Billion) Display 77.8 Paid search 72.9 66.0 62.1 58.9 40.2 20.8 24.8 32.6 37.5 YoY 38.0 37.2 33.4 35.4 37.5 +7% FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q 17
Slide 18: Advertising Revenue via Smartphones
Advertising Revenue via Smartphones (¥Billion) Display Paid search 43.0 37.3 27.3 YoY 13.4 20.9 +15% FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q 18
Slide 19: Roadmap of Video Ads for Smartphones
Roadmap of Video Ads for Smartphones In-feed for apps Video Ads (launched in March) for browsers Premium for browsers video ads (launched in Dec.) for apps FY2016 FY2017 FY2018 19
Slide 20: Premium Video Ads for Smartphone Yahoo! JAPAN Top Page
Premium Video Ads for Smartphone Yahoo! JAPAN Top Page (Browsers) Started distribution in Dec. 2017 Expanded reach of video ads 20
Slide 21: Media Business
Media Business Advertising Media 21
Slide 22: Video Viewing Time
Video Viewing Time YoY 3.7 x FY2016 FY2017 2Q 3Q 4Q 1Q 2Q 3Q 22 Note: Quarterly total of video viewing time in Yahoo! JAPAN services excluding GYAO!. * Survey by Yahoo Japan Corporation
Slide 23: Video Tab Added to PC Yahoo! JAPAN Top Page
Video Tab Added to PC Yahoo! JAPAN Top Page Accelerated enhancement of video content 23 Note: Content of the video news distributed on Yahoo! JAPAN Top page is provided by Nippon Television Network Corporation and Tokyo Broadcasting System Television, Inc. (As of February 2018)
Slide 24: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 24
Slide 25: Number of Monthly Paid-Membership IDs
Number of Monthly Paid-Membership IDs (Million) Others Yahoo! Premium members 25.11 15.07 16.34 17.55 YoY 14.60 10.30 11.44 12.40 18.69 +43% 9.67 December December December December December (end of month) 2013 2014 2015 2016 2017 Note: Number of monthly paid-membership IDs is the total of Yahoo! Pr
Slide 26: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 26
Slide 27: Shopping Transaction Value
Shopping Transaction Value (¥Billion) 180.4 YoY 68.9 76.9 114.0 140.7 +28% FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q 27 Note: Includes transaction values of Yahoo! Shopping, LOHACO and Charm Co., Ltd. LOHACO’s transaction value is the transaction value (closing date: 20th of every month) of
Slide 28: Transaction Value for Good Shopping Day
Transaction Value for Good Shopping Day YoY +46% 28 Note: The sum of transaction values of Yahoo! Shopping for Nov. 5 to Nov. 11. Year-on-year comparison is made for the results of the same period in both years.
Slide 29: Yahoo! Shopping - Number of Buyers
Yahoo! Shopping ― Number of Buyers New buyers Repeat buyers Oct. 2013 Announced e-Commerce strategy Number of buyers more than doubled since the strategy change FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q Note: Number of new buyers is the number of IDs of buyers who purchased for the first tim
Slide 30: Yahoo! Shopping - Transaction Value
Yahoo! Shopping ― Transaction Value Others Yahoo! Premium members Transaction value generated by Yahoo! Premium members expanded to 75% FY2016 FY2017 3Q 4Q 1Q 2Q 3Q 30
Slide 31: Transaction Value Generated by SoftBank Members in Yahoo! Shopping
Transaction Value Generated by SoftBank members in Yahoo! Shopping Started unlimited use of Yahoo! Premium privileges* (Jun.) Started Point 10x campaign* (Feb.) Expanded more than 4 x in a year 2016 2017 Oct. Jan. Apr. Jul. Oct. 31 Note: Transaction value generated by SoftBank members in Yahoo! Shop
Slide 32: Yahoo! Shopping Usage by SoftBank Members
Yahoo! Shopping Usage by SoftBank Members Usage ratio of Yahoo! Shopping by SoftBank members with Smart Login setup Have Have used used Used Huge growth potential As of Dec. 2017 32 Note: Ratio of SoftBank members logged in with Smart Login who used Yahoo! Shopping at least once in 2017, to all Soft
Slide 33: Shopping-Related Advertising Revenue
Shopping-Related Advertising Revenue (¥Billion) 7.7 YoY 3.0 5.8 +32% 1.1 1.3 FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q Note: Total of Yahoo Japan Corporation’s non-consolidated Shopping-related advertising revenue; advertising revenue of StoreMatch, an advertising product in Yahoo! 33 Shoppi
Slide 34: Shopping-Related Advertising Revenue and Point-Reward Expenses Ratios
Percentages of Shopping-Related Advertising Revenue(*1) and Point-Reward Expenses(*2) to Yahoo! Shopping Transaction Value % of Shopping-related advertising revenue % of point-reward expenses Expanded advertising revenue while maintaining ratio of point-reward expenses 0 FY2015 FY2016 FY2017 1Q 3Q 1
Slide 35: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 35
Slide 36: Auction-Related Transaction Value
Auction-Related Transaction Value (¥Billion) 257.8 Expanded 233.6 242.1 205.1 221.7 steadily FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q Note: Includes transaction values of: YAHUOKU!, tradecarview (https://www.tradecarview.com/), BOOKOFF Online (http://www.bookoffonline.co.jp/), Yahoo! Ticket
Slide 37: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 37
Slide 38: Encourage Use of Yahoo! Wallet
Encourage Use of Yahoo! Wallet Aim to increase in-house payment ratio Wallet Credit Card Money Payment by Payment by Yahoo! Money, credit card direct debit 38 Note: Yahoo! Wallet is a payment system which uses Yahoo! JAPAN ID and password for authentication. It enables users to make payments for ser
Slide 39: Number of Yahoo! Wallet Accounts
Number of Yahoo! Wallet Accounts (Million) 39.02 35.79 Record 32.70 25.68 28.44 high (end of month) December December December December December 2013 2014 2015 2016 2017 39
Slide 40: Yahoo! Wallet Transaction Value
Yahoo! Wallet Transaction Value (¥Billion) 375.2 YoY 153.1 175.6 238.2 322.4 +16% FY2013 FY2014 FY2015 FY2016 FY2017 3Q 3Q 3Q 3Q 3Q 40 Note: Includes payments using T Points and Yahoo! Money.
Slide 41: Number of Valid Credit Card Holders
Number of Valid Credit Card Holders (Million) 4.42 YoY 1.81 3.41 +30% (end of month) December December December 2015 2016 2017 41 Note: Number of card holders who can purchase goods and receive services, etc., using the card. Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Om
Slide 42: Credit Card Transaction Value
Credit Card Transaction Value (¥Billion) 261.8 YoY 174.1 1.5 x 67.8 FY2015 FY2016 FY2017 3Q 3Q 3Q 42 Note: Excludes cash advance service. Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”).
Slide 43: Technology
Technology 43
Slide 44: Personalization Is Key to Success in Internet Services
Personalization Is Key to Success in Internet Services Energy Proposals Data (credit judgment) 44 Personalized Engine
Slide 45: Create an Inimitable Engine to Increase Revenue
Create an Inimitable Engine to Increase Revenue Energy Media data EC data Increase in Location data traffic, Offline payment Proposals advertising data & credit revenue and PIM data judgment transaction Smartphone payment data value, etc. Video-viewing data ・ ・ ・ 45
Slide 46: Future Measures for Data Usage
Future Measures for Data Usage A media announcement is scheduled on Feb. 6 (Tue) 提案 Link to webpage with detailed information (Japanese only) scheduled to be provided on our investor relations website （&与信） https://about.yahoo.co.jp/ir/ 46
Slide 47: Supplemental Information
Supplemental Information 47
Slide 48: Business Segment Breakdown
Business Segment Breakdown Media Business ・Advertising: Paid search advertising “Sponsored Search”, Display advertising (“Yahoo! Display Ad Network (YDN)”, “Premium Advertising”) ・Business Services: CRM-related services, Media-related services and others ・Personal Services: Website production-relate
Slide 49: 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 50: Organization Chart of Yahoo Japan Corporation
Organization Chart of Yahoo Japan Corporation President & As of the end of Dec. 2017 Representative Director SEVPCO / COO / CEO Marketing & CTO SEVPCO / CFO Communication Division (Chief Technology Officer) Board of Directors Audit and Supervisory ID Services Management Creator Strategy Office Corpo
Slide 51: Consolidated Subsidiaries and Affiliates
Consolidated Subsidiaries and Affiliates As of the end of Dec. 2017 Major consolidated subsidiaries ASKUL Corporation Carview Corporation CLASSIFIED Corporation Dynatech inc. eBOOK Initiative Japan Co., Ltd. ecohai Co., Ltd. FirstServer, Inc. GYAO Corporation IDC Frontier Inc. ◆
Slide 52: Corporate Governance System
Corporate Governance System General Meeting of the Shareholders election dismissal election dismissal election dismissal audit, etc. Audit and Supervisory report Directors Committee Members Audit and Supervisory Committee report Account Auditors Board of Directors election/ report dismissal give adv
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