Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q1 FY2017 Earnings Presentation
56 slides from Ly's earnings presentation, Jul 28, 2017
Slide 1: Yahoo Japan Corporation FY2017 1Q Business Results
Yahoo Japan Corporation FY2017 1Q Business Results (April – June 2017) July 28, 2017
Slide 2: Table of Contents
Table of Contents P. 4 FY2017-1Q Financial Highlights P. 15 Usage Trend of Services P. 19 Media Business P. 25 Commerce Business P. 46 Technology P. 48 Efforts to Be Made in FY2017 P. 50 Supplemental Information Unless otherwise specified, English-language documents are prepared solely for the conve
Slide 3: 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
Slide 4: FY2017-1Q Financial Highlights
FY2017-1Q Financial Highlights 4
Slide 5: Executive Summary for FY2017-1Q
Executive Summary for FY2017-1Q Revenue 212.7 (¥B) YoY +4.1% Operating income 52.2 (¥B) YoY +2.6% EBITDA 62.3 (¥B) YoY +4.1% Net income attributable to owners of the parent 35.9 (¥B) YoY +1.1% Diluted EPS ¥6.3 YoY +1.1% Advertising-related revenue 70.4 (¥B) YoY +7.8% Via smartphones 54.8% Display ad
Slide 6: Changes in Disclosed Business Segments
Changes in Disclosed Business Segments FY2016 FY2017 Marketing Solutions Business Media Business Some services Consumer Business Commerce Some services Business Others あああああああああ Financial & Payment-related Other Data Center-related, etc. Businesses 6 Note: For main products included in each of the n
Slide 7: Executive Summary for FY2017-1Q
Executive Summary for FY2017-1Q Media Business -Paid search advertising revenue maintained the same level of growth rate achieved in the previous quarter. Commerce Business -Shopping transaction value (*1) achieved a growth rate of approx. +40% YoY. -Number of both new and repeat buyers in Yahoo! Sh
Slide 8: Revenue
Revenue (¥Billion) ¥212.7 billion YoY +4.1% 204.2 200.0 100.0 0.0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS Gross basis Net basis 8 Note: Between FY2008 and FY2012, we indicated revenue on a net rather
Slide 9: Revenue Breakdown
Revenue Breakdown (¥Billion) 204.2 212.7 Media Business 6.4 -0.1 6.2 YoY +3.2% Recovery in the growth rate of paid search advertising revenue 135.9 +6.3 142.2 Commerce Business YoY +4.7% Growth in Shopping-related advertising revenue Growth related to the consolidation of eBOOK Initiative Japan Co.,
Slide 10: Operating Income
Operating Income (¥Billion) ¥52.2 billion YoY +2.6% 50.8 50 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS 10
Slide 11: Factors of Change in Operating Income
Factors of Change in Operating Income Receipt of insurance proceeds related to the fire (¥Billion) incident at the Logistics Increase due to Center of ASKUL business growth Corporation -0.9 52.2 50.8 +1.9 -2.6 One-time expense +4.9 due to the fire Investment for incident at the maximizing -1.9 Logis
Slide 12: EBITDA
EBITDA (¥Billion) ¥62.3 billion YoY +4.1% 59.9 50 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS Note: EBITDA = operating income + depreciation and amortization 12 Figures before FY2012 are those of opera
Slide 13: Sales Promotional Activities
Sales Promotional Activities(*1) (¥Billion) FY2015 FY2016 FY2017 FY2017-1Q Rough breakdown 18.6 Shopping 50% YAHUOKU! 20% 13.7 12.7 Financial & Payment 9.5 10.9 20% 8.5 Membership Services (*2) 6.5 10% 5.2 4.2 1Q 2Q 3Q 4Q 13 *1 Total of sales promotion costs, and advertising and promotional expenses
Slide 14: Net Income Attributable to Owners of the Parent
Net Income Attributable to Owners of the Parent (¥Billion) ¥35.9 billion YoY +1.1% 40 35.5 30 20 10 0 FY2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q JGAAP IFRS 14 Note: Figures of FY2014-1Q includes gains of ¥8.7 bill
Slide 15: Usage Trend of Services
Usage Trend of Services 15
Slide 16: Daily Unique Browsers
Daily Unique Browsers (Million) Smartphones (*1) PC+Others(*2) Usage via 57.39 60.29 smartphones 49.23 36.04 22.84 66.2% FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q *1 Quarterly average; includes accesses to Yahoo! JAPAN via applications and browsers. Access via applications and access via bro
Slide 17: Number of Monthly Active User IDs
Number of Monthly Active User IDs (Million) 39.70 YoY 27.80 27.82 30.21 34.30 +15.7% June June June June June 2013 2014 2015 2016 2017 17 Note: Number of Yahoo! JAPAN IDs logged-in in each month.
Slide 18: DAU of All Applications
DAU of All Applications (Million) 40.30 33.31 34.43 36.54 Record high FY2016 FY2017 2Q 3Q 4Q 1Q Note: Number of users who browsed smartphone applications offered by Yahoo! JAPAN at least once a day. Users are counted separately for each smartphone 18 application, even if the user browses several sma
Slide 19: Media Business
Media Business Advertising Media 19
Slide 20: Advertising-Related Revenue
Advertising-Related Revenue (¥Billion) Display 70.4 Paid search 63.3 65.3 57.8 53.1 35.7 27.1 33.1 17.5 20.9 YoY 35.6 36.8 36.2 32.2 34.7 +7.8% FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 20
Slide 21: Advertising Revenue via Smartphones
Advertising Revenue via Smartphones (¥Billion) 38.6 Display Paid search 30.8 24.2 YoY 9.0 17.6 +25.2% FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 21
Slide 22: Ratio of Advertising Revenue via Smartphones
Ratio of Advertising Revenue via Smartphones 54.8% 47.2% 30.5% 38.3% Record 17.0% high FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q Note: Proportion of advertising revenue via smartphones in total advertising revenue. Prior data have been retroactively adjusted. 22 Contains a part of advertisin
Slide 23: Media Business
Media Business Advertising Media 23
Slide 24: Video Distribution on Yahoo! JAPAN Top Page
Video Distribution on Yahoo! JAPAN Top Page (PC ver.) Some tests underway to introduce video channel in Yahoo! JAPAN Top Page following Yahoo! News top page Note: Screen image for illustrative purpose only and is subject to change. 24 Image: Aflo
Slide 25: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 25
Slide 26: Measures Targeting SoftBank Members (Yahoo! Premium)
Measures Targeting SoftBank Members (Yahoo! Premium) Aim to expand service use by linking membership base of both companies 26 Note: Please refer to the campaign website for details (https://premium.yahoo.co.jp/info/softbank.html).
Slide 27: Number of Yahoo! Premium Membership IDs
Number of Yahoo! Premium Membership IDs (YoY Growth Rate) +40.8% Rapid expansion +10.0% +8.9% +8.4% +7.4% June Sept. Dec. Mar. June (end of month) 2016 2017 27 Note: Includes SoftBank members and Y!mobile members who are eligible for Yahoo! Premium privileges. Overlap in IDs is excluded if one ID is
Slide 28: Number of Monthly Paid-Membership IDs
Number of Monthly Paid-Membership IDs (Million) Others 24.76 Yahoo! Premium members 17.10 15.54 14.16 14.40 Successful collaboration 16.92 with SoftBank 10.92 12.01 9.31 9.66 (end of month) June June June June June 2013 2014 2015 2016 2017 Note: Total of Yahoo! Premium members, Yahoo! BB subscribers
Slide 29: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 29
Slide 30: Measures Targeting SoftBank Members (Shopping Business)
Measures Targeting SoftBank Members (Shopping Business) Aim to expand transaction value by enhancing point reward measure 30 Note: Please refer to the website for details (https://premium.yahoo.co.jp/).
Slide 31: Shopping Transaction Value (YoY Growth Rate)
Shopping Transaction Value (YoY Growth Rate) +39.9% +37.9% +27.8% +23.4% +21.4% High growth FY2016 FY2017 1Q 2Q 3Q 4Q 1Q 31 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 A
Slide 32: Shopping Transaction Value
Shopping Transaction Value (¥Billion) 139.8 Successful collaboration 99.9 with SoftBank 72.4 56.9 58.9 FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 32 Note: Includes transaction values of Yahoo! Shopping and LOHACO. LOHACO’s transaction value is the revenue (closing date: 20th of every month) o
Slide 33: Shopping-Related Advertising Revenue
Shopping-Related Advertising Revenue (¥Billion) 5.5 YoY 2.9 Approx. 2x 1.0 0.9 1.3 FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q Note: Total of Yahoo Japan Corporation’s non-consolidated Shopping-related advertising revenue; advertising revenue of StoreMatch, an advertising product in Yahoo! Sho
Slide 34: Number of Items
Number of Items (Million) 290 Biggest selection 170 220 in Japan(*) 110 70 June June June June June (end of month) 2013 2014 2015 2016 2017 34 Note: Number of items listed on Yahoo! Shopping. * Survey by Yahoo! JAPAN
Slide 35: Yahoo! Shopping Number of Buyers
Yahoo! Shopping ― Number of Buyers New buyers Repeat buyers Number of both new and repeat buyers increased FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q Note: Number of new buyers is the number of IDs of buyers who purchased for the first time, and of buyers whose purchase was made after a lapse
Slide 36: Yahoo! Shopping Transaction Value
Yahoo! Shopping ― Transaction Value Non-Premium Members Premium Members Transaction value generated by Yahoo! Premium members approx. 65% FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 36
Slide 37: Shopping-Related Advertising Revenue and Point-Reward Expenses Percentages
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 controlling point-reward expenses 0 FY2015 FY2016 FY2017 1Q 2Q 3Q 4Q 1Q 2
Slide 38: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 38
Slide 39: Auction-Related Transaction Value
Auction-Related Transaction Value (¥Billion) 227.7 Expanded 208.8 214.4 178.7 195.2 steadily FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 39 Note: Includes transaction values of YAHUOKU!, tradecarview (http://www.tradecarview.com/), BOOKOFF Online (http://www.bookoffonline.co.jp/); and that of
Slide 40: Commerce Business
Commerce Business Membership Shopping Auction Financial & Payment 40
Slide 41: Number of Valid Credit Card Holders
Number of Valid Credit Card Holders (Million) 3.82 Launched Yahoo! JAPAN Card YoY 2.54 Approx. 1.5 x 1.02 0.63 0.61 June June June June June (end of month) 2013 2014 2015 2016 2017 41 Note: Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”).
Slide 42: Credit Card Transaction Value
Credit Card Transaction Value (¥Billion) 211.9 Launched Yahoo! JAPAN Card YoY 103.8 Approx. 2x 15.1 15.5 24.4 FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 42 Note: Excludes cash advance service. Includes card holders of KC Card, Yahoo! JAPAN Card and SoftBank Card (“Omakase charge”).
Slide 43: Number of Yahoo! Wallet Accounts
Number of Yahoo! Wallet Accounts (Million) 37.34 34.23 Record 31.32 24.63 27.12 high (end of month) June June June June June 2013 2014 2015 2016 2017 43 Note: Yahoo! Wallet is a payment system which uses Yahoo! JAPAN IDs and passwords for authentication. It enables users to make payments for service
Slide 44: Yahoo! Wallet Transaction Value
Yahoo! Wallet Transaction Value (¥Billion) 321.8 YoY 136.8 149.9 174.9 281.9 +14.2% FY2013 FY2014 FY2015 FY2016 FY2017 1Q 1Q 1Q 1Q 1Q 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 merchandise 4
Slide 45: Maximize Transaction Value and Monetize through Financial & Payment Business
Maximize Transaction Value and Monetize through Financial & Payment Business Increase in Simultaneous growth in finance revenue Yahoo! JAPAN Card Maximize transaction value • Interest/fee from EC transaction installment payments value • Interest/fee from revolving payments Payment fee revenue Shoppi
Slide 46: Technology
Technology 46
Slide 47: Development of kukai, Supercomputer Specialized in Deep Learning
Development of “kukai”, Supercomputer Specialized in Deep Learning Computation processing capacity approx. 225X (compared to conventional models (*1) ) Aim for improvement in personalization accuracy Ranked 2 nd in the World in energy-efficient supercomputer ranking(*2) 47 *1 Theoretical figure obta
Slide 48: Efforts to Be Made in FY2017
Efforts to Be Made in FY2017 48
Slide 49: Efforts to Be Made in FY2017
Maximize e-Commerce transaction value Become a “rich media” Become a data-driven company 49
Slide 50: Supplemental Information
Supplemental Information 50
Slide 51: 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: Web site production-relat
Slide 52: 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 53: Organization Chart of Yahoo Japan Corporation
Organization Chart of Yahoo Japan Corporation President & As of July 1, 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 Corporate Gro
Slide 54: Consolidated Subsidiaries and Associates
Consolidated Subsidiaries and Associates Major consolidated subsidiaries (As of June 30, 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, Lt
Slide 55: 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 give dismissal adv
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