Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q2 FY2013 Earnings Presentation
98 slides from Ly's earnings presentation, Oct 25, 2013
Slide 1: FY2013-2Q Business Results (July-Sept. 2013)
Yahoo Japan Corporation FY2013-2Q Business Results (July-Sept. 2013) October 25, 2013
Slide 2: Table of Contents
Table of Contents P. 3 Financial Highlights P. 23 Business & Strategies - Marketing Solutions Business - Consumer Business - Settlement & Finance / Other Businesses P. 80 Supplemental Information Statements made at the meeting or included in the documents that are not historical facts are forward-lo
Slide 3: FY2013-2Q Financial Highlights
FY2013-2Q Financial Highlights Achieved 4 consecutive quarter double-digit YoY growth (¥100M) YoY Change 2012-2Q 2013-2Q Change Contributors ・Advertising revenue grew. ・Yahoo! Premium membership revenue Revenue 787 957 21.5% increased. ・New consolidated subsidiaries were added in 2012-2nd half. Oper
Slide 4: Quarterly Revenue
Quarterly Revenue (¥ 100M) 1,000 957 800 600 400 Gross Net 200 0 '09/ '12/ '03/ '04/ '05/ '06/ '07/ '08/ '10/ '11/ '13/ 7-9 7-9 7-9 7-9 7-9 7-9 7-9 7-9 7-9 7-9 7-9 * Commencing with FY2008, we started indicating revenue on a net rather than gross basis, by eliminating cost of sales and certain items
Slide 5: Quarterly Revenue YoY Growth Trend
Quarterly Revenue YoY Growth Trend 25% 21.5% 20% 15% 10% 5% 0% '10/7-9 '11/7-9 '12/7-9 '13/7-9 5
Slide 6: Quarterly Revenue Breakdown
Quarterly Revenue Breakdown (¥ 100M) 957 Total +169 (¥100M) 1,000 +21.5% 787 800 Marketing Solutions Business +22.9% 672 Advertising revenue was strong. 600 547 Consumer Business +9.6% 400 Yahoo! Premium membership revenue grew. Other Business +108.5% 200 254 Start of FX business 232 25 54 0 '12/7-9
Slide 7: Quarterly Advertising-related Revenue
Quarterly Advertising-related Revenue (¥ 100M) 525 Total +76 (¥100M) 500 448 116 +17.2% 400 118 Display Advertising +27.4％ 68 Premium advertising revenue -1.7% 26 Revenue of advertising products excluding “Brand 300 Panel” was mediocre. 200 YDN and others +156.7% 339 Yahoo! JAPAN Display Ad Network
Slide 8: Quarterly Advertising-related Revenue via Mobile Phones
Quarterly Advertising-related Revenue via Mobile Phones (¥ 100M) 100 Smartphone advertising revenue 80 +45 (¥100M) 60 Smartphone advertising revenue ratio 101 12.5% → 19.3% *Smartphone advertising revenue includes some revenue via tablet devices. 40 55 Feature phone advertising revenue 20 -5 (¥100M)
Slide 9: Quarterly Advertising-related Revenue YoY Growth Trend
Quarterly Advertising-related Revenue YoY Growth Trend 30% 27.4% 25% 20% Display Advertising 15% 12.3% 10% Paid Search Advertising 5% 0% -5% '10/7-9 '11/7-9 '12/7-9 '13/7-9 9
Slide 10: YoY Change Contributors by Industry - Paid Search Advertising Revenue
YoY Change Contributors by Industry - Paid Search Advertising Revenue (¥ 100M) 37.1 Total +37.1 (¥100M) +12.3% 15.7 7.2 4.4 4.1 1.9 1.7 1.7 0 YoY Change Others, net *The sum of changes by industry doesn’t match the total YoY change because a portion of revenue is not categorized by industry. 10
Slide 11: YoY Change Contributors by Industry - YDN Advertising Revenue
YoY Change Contributors by Industry - YDN Advertising Revenue (¥ 100M) 41.8 Total +41.8 (¥100M) +156.7% 13.0 10.1 8.5 4.3 3.3 2.6 2.2 0 YoY Change Others, net *The sum of changes by industry doesn’t match the total YoY change because a portion of revenue is not categorized by industry. 11
Slide 12: YoY Change Contributors by Industry - Premium Advertising Revenue
YoY Change Contributors by Industry - Premium Advertising Revenue (¥ 100M) Total -2.0 (¥100M) -1.7% 2.0 1.6 YoY 1.3 Change Others, net 0 -1.1 -1.1 -2.0 -2.7 -3.9 *The sum of changes by industry doesn’t match the total YoY change because a portion of revenue is not categorized by industry. 12
Slide 13: Quarterly e-Commerce Transaction Value
Quarterly e-Commerce Transaction Value (¥ 100M) Total +185 (¥100M) 3,937 4,000 3,751 +4.9% 737 Shopping-related -1.1% 745 Transaction value was almost flat. 3,000 Auction-related +5.2% Transaction value increased. 1,651 1,569 2,000 Others +7.8% (Settlement/Financial services, pay digital content, et
Slide 14: Quarterly Profits
Quarterly Profits (¥ 100M) 500 50% 400 40% 営業利益 Operating Income 経常利益 Ordinary Income 300 30% 四半期純利益 Quarterly Net Income 営業利益率 Operating Margin 経常利益率 Ordinary Margin 200 20% 100 10% 0 0% '03/7-9 '05/7-9 '07/7-9 '09/7-9 '11/7-9 '13/7-9 *Margins for '08/7-9 onward are affected by the change in the pr
Slide 15: Quarterly Operating Income YoY Growth Trend
Quarterly Operating Income YoY Growth Trend 20% 15% 13.7% 10% 営業利益成長率 5% 0% '10/7-9 '11/7-9 '12/7-9 '13/7-9 15
Slide 16: Review of FY2013-1st Half Business Outlook
Review of FY2013-1st Half Business Outlook All figures exceeded forecasts. (¥100M) FY2013-1H Outlook FY2013-1H (As of July 25, 2013) Actual Factors Advertising revenue grew Revenue 1,858 1,880 favorably. Operating Income 956 978 - Ordinary Income 959 981 - Half-year Net Income 612 626 - 16
Slide 17: FY2013-2nd Half Business Outlook
FY2013-2nd Half Business Outlook We forecast temporary slow down in profit growth rate under new e-commerce strategy. (¥100M) 2012-2H 2013-2H YoY (Actual) (Forecast) Change Change Contributors Advertising revenue expected to grow, meanwhile Revenue 1,866 1,991 6.7% e-commerce related revenues are fo
Slide 18: FY2013 Full Year Business Outlook
FY2013 Full Year Business Outlook We expect low single-digit growth rate in operating income for FY2013 and FY2014. (¥100M) FY2012 FY2013 YOY (Actual) (Forecast) Change Change Contributors ・Advertising revenue expected to grow, meanwhile e-commerce related revenues are forecasted to Revenue 3,429 3,
Slide 19: We Maintain Our Target of Doubling Operating Income
We Maintain Our Target of Doubling Operating Income by FY ending March 201X ¥ 330 Billion e-Commerce related Temporary slow down under business new e-commerce strategy ¥ 165 Other businesses Billion excluding e-Commerce 19 2012.3 *Growth image / conceptual only 201X.3
Slide 20: FY2013 Year-End Cash Dividend Forecast
FY2013 Year-End Cash Dividend Forecast Cash dividends per share (¥) 4.5 ¥4.21 Cash dividend ¥4.01 per share is expected 4.0 to grow 5.0% YoY ¥3.47 3.5 The Company’s target continues to be approximately 20% of consolidated net income as its forecast for dividends 3.0 for the FY2013. 2.5 2.0 FY2011 FY
Slide 21: Issuance of Stock Options Exercisable When Profit Target Is Reached
Issuance of Stock Options Exercisable When Profit Target Is Reached We issue stock options to senior management. Doubling operating income by March 201x is the basic condition for exercising options. (Options equivalent to 286,250 shares) Attaining No.1 position in transaction value in domestic e-co
Slide 22: We Are Planning a Share Buy Back Program
We Are Planning a Share Buy Back Program Total Amount of JPY 30 billion (Maximum) Acquisition Number of Shares to be 60 million (Maximum) Acquired Purchase Period Oct. 28, 2013 - Jan. 31, 2014 We will purchase shares from the market, and will cancel all the shares. 22
Slide 23: Marketing Solutions Business
Marketing Solutions Business 23
Slide 24: Acquisition of Users by Offering Good Services
Acquisition of Users by Offering Good Services Monetization with Distribution of Advertising 24
Slide 25: Services
Services 25
Slide 26: Major Portions of Traffic and Revenue Are Generated Through the Top 20 Services
Major Portions of Traffic and Revenue Are Generated Through the Top 20 Services Traffic Revenue Top 20 上位20 Top 20 (conceptual only) 26
Slide 27: DUBs of Top 20 Services Grow Favorably
* DUBs of Top 20 Services Grow Favorably '11/7-9 '12/7-9 '13/7-9 Source：Yahoo Japan Corporation *DUB=Daily Unique Browser 27
Slide 28: Cumulative Number of Yahoo! JAPAN Applications Downloaded Increased
Cumulative Number of Yahoo! JAPAN Applications Downloaded Increased iOS+Android More than 115 million More than 95 Cumulative downloads: million More than 80 100 million and up More than 65 million million More than 40 million Applicationsfor Applications foriOS・Android iOS・Android ′12/7-9 10-12 ′13
Slide 29: Measures to Increase Traffic
Measures to Increase Traffic 29
Slide 30: Started Offering Famiport Coupon in Collaboration with FamilyMart
Started Offering “Famiport Coupon” in Collaboration with “Yahoo! Search” and FamilyMart 30
Slide 31: Yahoo! Browser
“Yahoo! Browser” • Exceeded 1 million users. • Ranked as No.1 on Google Play browser ranking for 7 consecutive weeks. • Started offering a function that reads the content listed on the page aloud, tying up with voice assist function. 31
Slide 32: Yahoo! JAPAN Big Data Report Predicted
“Yahoo! JAPAN Big Data Report” Predicted Number of Upper House Seats Won by Ruling or Opposition Parties All matched Partly matched Didn’t match In 42 prefectures out of 47, predicted seats won by parties matched the results perfectly. 47 prefectures 32
Slide 33: Emotion Analysis via Tweets (beta version)
Started Offering “Emotion Analysis via Tweets (beta version)” Analyzing tweets on Twitter, we produce graphs to show the proportion of keywords making positive, negative and neutral impressions. 33
Slide 34: Measures to Increase Revenue and Profit
Measures to Increase Revenue and Profit 34
Slide 35: Display Advertising
Display Advertising 35
Slide 36: Revenue from Brand Panel (PC) Continues to Increase
Revenue from “Brand Panel”(PC) Continues to Increase Revenue from Rich Ads continued to grow. Revenue share of Rich Ads in total “Brand Panel” +18% revenue was 29%. '12/7-9 '13/7-9 Revenue from Brand Panel (PC) 36
Slide 37: Placement of YDN on Premium Advertising Space Improved Profitability
Placement of YDN on Premium Advertising Space Improved the Profitability of Advertising +7% '12/7-9 '13/7-9 37 Revenue from Prime Display Space
Slide 38: Revenue from YDN in FY2013-2Q Increased approx. 3 Times YoY
Revenue from YDN in FY2013-2Q Increased approx. 3 Times YoY 2.X倍 2.9 times '12/7-9 '13/7-9 38 Revenue from YDN
Slide 39: Paid Search Advertising
Paid Search Advertising 39
Slide 40: Revenue from Sponsored Search Continues to Grow
Revenue from “Sponsored Search” Continues to Grow +12% '12/7-9 '12/7-9 '13/7-9 '13/7-9 40 Revenue from Sponsored Search
Slide 41: Consumer Business
Consumer Business 41
Slide 42: e-Commerce's Share of Total Consumption in Japan Is Still Only 6%
e-Commerce’s Share of Total Consumption in Japan Is Still Only 6% (Trillions of yen) 150 Internet 6％ *1 FY2011 e-Commerce market size 100 in Japan Other Retail Sales 94％ *1 8.8 trillion yen *2 *2 Source: Nomura Research Institute, Ltd. “IT Navigator 2013” BtoC e-commerce market size 50 0 42 *1 Sourc
Slide 43: e-Commerce Revolution
Expand Domestic e-Commerce Market e-Commerce Revolution 43
Slide 44: We aim to be No.1 in transaction value in the expanded Japanese e-commerce market
* We aim to be No.1 in transaction value in the expanded Japanese e-commerce market. * Transaction value is the sum of shopping-related and auction-related transaction value. 44
Slide 45: Create e-Commerce Business Ecosystem
Yahoo! Shopping YAFUOKU! (Auction) Create e-Commerce Business Ecosystem More Tougher products competition More Attractive platform sellers for buyers Larger More transaction buyers 45 value
Slide 46: Yahoo! Shopping
Yahoo! Shopping YAFUOKU! Premium Membership 46
Slide 47: Change business model from fee based to advertising based
Yahoo! Shopping We decided to change the business model from “fee based” to “advertising based.” 47
Slide 48: Advertising Business Model Image
Yahoo! Shopping Advertising Business Model Image Limited sellers paying advertising costs Large number of sellers paying no fees 48 * Graphic representation of sellers
Slide 49: Start Business Ecosystem with More Sellers
Yahoo! Shopping Start Business Ecosystem with “More Sellers” More Tougher products competition More Advertising Attractive platform sellers for buyers Exposure Larger More transaction buyers 49 value
Slide 50: To be No.1 in number of sellers
Yahoo! Shopping To be No.1 in number of sellers Former Now Company & Store Qualification Company only individual * Monthly Tenant Fee ¥25,000 Free of charge Royalty Fee 1.7-6.0% Free of charge Credit Card Lowest in the Included in above Settlement Fee industry Cost for Point System Actual cost Actua
Slide 51: We received many applications after the announcement
Yahoo! Shopping We received many applications after the announcement. * Companies which have stores on major e-commerce platforms can open stores on Yahoo! Shopping within two weeks of the announcement at the shortest, but companies without the above experience or individuals have to wait until Dece
Slide 52: Timeframe for Further Steps
Yahoo! Shopping Timeframe for Further Steps Oct. 7 Announcement of strategy New stores will start opening Late Oct. (Only companies having stores on major e-commerce platforms) Start offering new platform Dec. for individuals and companies onwards with no experience in opening stores on major platfo
Slide 53: Measures to Increase Buyers for Year-end Shopping Season
Yahoo! Shopping Measures to Increase Buyers for Year-end Shopping Season • Aggressive promotion with various campaigns • Larger number of links on various Yahoo! JAPAN services to guide users to Yahoo! Shopping • Enhancement of distribution system • Aggressive promotion activities by shopping stores
Slide 54: Strengthen All Aspects of e-Commerce Value Chain
Yahoo! Shopping Strengthen All Aspects of e-Commerce Value Chain Attract Settlement / Product line Distribution customers Point system Links from e-Commerce Tie-up with Strengthen by Yahoo! Search Revolution T-POINT, collaboration with Yahoo! Knowledge Search, Yahoo! Wallet and ASKUL Corporation etc
Slide 55: Transaction Value Expansion Leads to Advertising Growth
Yahoo! Shopping Transaction Value Expansion Leads to Advertising Growth More Tougher products competition More Advertising Attractive platform sellers for buyers Exposure Larger More transaction buyers 55 value
Slide 56: YAFUOKU!
Yahoo! Shopping YAFUOKU! Premium Membership 56
Slide 57: We continue to make the auction business fee based
YAFUOKU! (Auction) We continue to make the auction business “fee based.” 57
Slide 58: Increase the transaction value and aim to expand royalty fee revenue
YAFUOKU! (Auction) Increase the transaction value and aim to expand royalty fee revenue 58
Slide 59: Start Business Ecosystem with More Buyers
YAFUOKU! (Auction) Start Business Ecosystem with “More Buyers” More Tougher 競争増 competition products Increase in revenue More from auction royalty Attractive platform sellers and membership for buyers fees Larger More transaction buyers 59 value
Slide 60: To increase the number of buyers
YAFUOKU! (Auction) To increase the number of buyers (bidders) • Anybody can bid on items priced at ¥5,000 or over, which used to be the privilege of Yahoo! Premium members. • Strengthen countermeasures for pranks, fraud, illegal item listings, etc. • Enhancement of compensation for Yahoo! Premium me
Slide 61: Average winning bid increased; new bidders up 40% YoY
ヤフオク!(Auction) YAFUOKU! • Average winning bid increased. • Number of average daily new bidders increased by 40% YoY. January April July October 2013 Average Winning Bid *October figure is applications before Oct. 21 61
Slide 62: Increase the number of sellers and products
YAFUOKU! (Auction) Increase the number of sellers and products More Tougher 競争増 competition products Increase in More revenue from Attractive platform sellers auction royalty and for buyers membership fees Larger More transaction buyers 62 value
Slide 63: To increase the number of sellers and products
YAFUOKU! (Auction) To increase the number of sellers and products Former Now Store Qualification Company only Company only B2C Monthly Tenant ¥18 thousand Free of charge Fee B2C Limitation for Limited number No limit Number of Listing Yahoo! Premium Yahoo! Premium C2C Item Listing members only membe
Slide 64: B2C store applications increased 4 times and up YoY
YAFUOKU! (Auction) ・ Number of B2C store applications increased 4 times and up YoY * Number of average daily applications before Oct. 21 ・ Number of Stores with more than 3,000 listings increased 12 times compared with the period before announcement January April July October 2013 Number of Applicat
Slide 65: Larger transaction value
YAFUOKU! (Auction) Increase the transaction value and expand the revenue from transaction royalties and membership fees More Tougher 競争増 competition products Increase in More revenue from Attractive platform sellers auction royalty and for buyers membership fees Larger More transaction buyers 65 val
Slide 66: Premium Membership
Yahoo! Shopping YAFUOKU! Premium Membership 66
Slide 67: Yahoo! Premium Members
Yahoo! Premium Members: Although the right to bid on high priced items has been extended to non-premium members, we aim to improve the added value of premium members by offering other benefits. Former Now Open Stores on Yahoo! Yahoo! Premium No Shopping by individual members only List items on YAFUO
Slide 68: Number of Premium Member IDs Reached 9.52 million by End of Sept.
Number of Premium Member IDs Reached 9.52 million by End of Sept. • Strong increase in registration via Softbank Mobile • Impact from waiving the limitation for bidding on (10 thousand IDs) YAFUOKU! is limited as was expected. 952 950 900 850 800 750 700 '10/9 '11/9 '12/9 '13/9 68
Slide 69: e-Commerce Business Next Steps
e-Commerce Business Next Steps 69
Slide 70: Step 1: No.1 in Number of Sellers
Step 1: Yahoo! Shopping YAFUOKU! (Auction) No.1 in Number of Sellers 70
Slide 71: Step 2: No.1 in Number of Products
Step 2: Yahoo! Shopping YAFUOKU! (Auction) No.1 in Number of Products 71
Slide 72: Step 3: Aim to Be No.1 in Transaction Value
Step 3: Yahoo! Shopping YAFUOKU! (Auction) Aim to Be No.1 in Transaction Value in Japanese e-Commerce Market 72
Slide 73: Negative Impact on Revenue Is Limited
Negative Impact on Revenue Is Limited Estimated YoY e-Commerce Related Revenue Changes for FY2013-3Q & 4Q YoY Increase / Revenue Item Decrease per Factors for Change Quarter - ¥2.5 to - ¥3.0 Yahoo! Shopping Free monthly tenant and royalty fees billion - ¥0.3 to - ¥0.6 YAFUOKU! (Auction) Free B2C mon
Slide 74: Extra Cost for the New Strategy
Extra Cost for the New Strategy Estimated for FY2013-2H and FY2014 (Promotion activities for e-commerce, additional services for Yahoo! Premium members, etc.) FY2013-2H (October 2013 – March 2014) ¥ 2-3 billion FY2014 (April 2014 – March 2015) ¥ 4-6 billion 74 * Above figures are for half a year and
Slide 75: Temporary Decrease in Revenue and Profits, Expect Accelerated Growth
Although We Assume Temporary Decrease in Revenue and Profits, Expect Accelerated Growth in the Future. Estimated e-Commerce Related Revenue and Profit YoY Change for FY2013-3Q and 4Q YoY Decrease Impact on per Quarter * Revenue - ¥ 2.5 to - ¥3.5 billion Operating Income - ¥ 3.0 to - ¥5.0 billion 75
Slide 76: We aim to be No.1 in transaction value by FY201X
We aim to be No.1 in transaction value in the expanded Japanese e-commerce market by FY 201X. 76
Slide 77: Settlement & Finance / Other Businesses
Settlement & Finance Other Businesses 77
Slide 78: Number of Yahoo! Wallet Accounts: more than 25.0 million
Number of Yahoo! Wallet Accounts: more than 25.0 million 78
Slide 79: FX transaction value increased dramatically
More than Transaction value increased 3 times dramatically • Started “Trade Plus” Users can obtain T-POINTs each time they make a transaction. • Released “OPUTORE!,” binary option trading. ′12/7-8 ′13/7-8 Transaction Value 79
Slide 80: Supplemental Information
Supplemental Information P. 81 Quarterly Business Results P. 94 Quarterly Business Data P. 96 Organization, Personnel and Affiliated Companies 80
Slide 81: FY2013-2Q Statements of Income
FY2013-2Q Statements of Income 2012-2Q 2013-2Q Change Revenue (¥100M) 787 957 21.5 % Cost of Sales (¥100M) 79 122 54.6 % Gross Profit (¥100M) 708 834 17.8 % SG&A (¥100M) 275 341 24.1 % Operating Income (¥100M) 432 492 13.7 % Ordinary Income (¥100M) 439 491 11.7 % Quarterly Net Income (¥100M) 271 303
Slide 82: FY2013-2Q Performance Breakdown by Business Segment
FY2013-2Q Performance Breakdown by Business Segment (¥ 100M) Cost of Operating Ordinary Operating Ordinary Revenue Revenue Breakdown SG&A Sales Income Income Margin Margin Advertising 518 Marketing Business Services 115 Solutions 672 Personal Services 30 129 185 357 358 53.2% 53.4% Business Intra-Co
Slide 83: Business Segment Breakdown
Business Segment Breakdown Marketing Solutions Business Advertising: Paid search advertising Display advertising (Premium advertising, Interest-based advertising) Business Services: Data Center-related, Affiliate-related, Yahoo! Real Estate, Automobile-related, Yahoo! Travel, Indival, Yahoo! WebHost
Slide 84: Quarterly SG&A Breakdown
Quarterly SG&A Breakdown (¥ 100M) Major Factors for YoY Changes Composition QoQ YoY Number of employees reached 12/2Q 13/1Q 13/2Q Ratio 6,191, up 716 persons (13.1%) Change Change Personnel Expenses 89 106 113 33.2% 6.7% 27.2% Increase of operations commission fees for our Business Commissions 33 38
Slide 85: FY2013-2Q Balance Sheets
FY2013-2Q Balance Sheets Increase/ Major Factors for Major Items 2012/9/30 2013/9/30 (¥ 100M) Decrease Increase/Decrease Assets Cash from operating activities and Current Assets 4,463 6,170 1,707 collection of receivables from sales of shares Cash and Cash Equivalents 2,561 4,482 1,920 of BB Mobile
Slide 86: FY2013-2Q Cash Flow Statements
FY2013-2Q Cash Flow Statements FY2013-2Q (¥ 100M) Major Items (Jul. - Sep. 2013) Major Factors for Changes Operating Activities 566 Quarterly Net Income before Income Taxes 487 Increase in quarterly net income before income taxes Depreciation Expenses 34 Amortization of Goodwill 6 Increase of Provis
Slide 87: FY2013-2Q Highlights – Marketing Solutions Business (1)
FY2013-2Q Highlights – Marketing Solutions Business (1) Paid search advertising (Paid search advertising [Sponsored Search]) - Paid search advertising revenue grew by 12.3% from the second quarter last year. - Smartphone advertising revenues expanded substantially year on year. Display advertising (
Slide 88: FY2013-2Q Highlights – Marketing Solutions Business (2)
FY2013-2Q Highlights – Marketing Solutions Business (2) Business Services - Revenue increased year on year due to consolidation of ValueCommerce Co., Ltd. and Carview Corporation. - IDC Frontier Inc.’s revenue expanded year on year, supported by greater use of its cloud computing service by game-rel
Slide 89: FY2013-2Q Highlights – Consumer Business
FY2013-2Q Highlights – Consumer Business Business Services - Although the overall transaction value of Yahoo! Shopping declined slightly compared to the second quarter last year, its smartphone transaction value rose year on year. - The year-on-year growth rate of both B2C and C2C transaction value
Slide 90: Advertising Products
Advertising Products Main Advertising Products Main Fee Placement Advertiser (Main Purpose) Format Calculation Pages Base Paid Search Advertising Search “Sponsored Search” Text results (Sales Promotion) Per Click pages Major corporations (per-click rate Interest-based determined by Small and keyword
Slide 91: Paid Search Advertising Revenue by Industry
Paid Search Advertising Revenue by Industry Industries with large year-on-year increase Industries with large year-on-year decrease Transportation/Leisure Fashion/Accessories Finance/Insurance/Securities Information Processing/Software/Internet Information Service 12/2Q 3Q 4Q 13/1Q 2Q Transp
Slide 92: Premium Advertising Revenue by Industry
Premium Advertising Revenue by Industry Industries with large year-on-year increase Industries with large year-on-year decrease Government/Organizations Cosmetics/Toiletries Entertainment Software Transportation/Leisure Fashion/Accessories Mobile Communications Service 12/2Q 3Q 4Q 13/1Q
Slide 93: YDN and other Advertising Revenue by Industry
YDN and other Advertising Revenue by Industry Industries with large year-on-year increase Finance/Insurance/Securities Cosmetics/Toiletries/Health Foods and Appliances Real Estate/Housing/Household Equipment 12/2Q 3Q 4Q 13/1Q 2Q Finance/Insurance/Securities 23.1% 28.5% 29.0% 29.4% 23.0% Cosmet
Slide 94: Quarterly Business Data (1)
Quarterly Business Data (1) Indicator (Quarterly average) 2012/2Q 2013/2Q Number of total monthly page views (millions) 53,358 55,618 Number of total monthly smartphone page views (millions)(1) 9,351 16,153 Number of Daily UBs (Unique Browsers)(millions)(2) 53.09 61.04 Number of smartphone Daily UBs
Slide 95: Quarterly Business Data (2)
Quarterly Business Data (2) Indicator (Quarterly total) 2012/2Q 2013/2Q Transaction value of YAFUOKU! (100 millions of yen) 1,569 1,651 Transaction value of shopping-related (100 millions of yen) 745 737 Transaction value of YAFUOKU! and shopping-related (100 millions of yen) 2,315 2,388 Transaction
Slide 96: Organization Chart of Yahoo Japan Corporation
As of October 1, 2013 Organization Chart of Yahoo Japan Corporation Board of Board of President & CEO Auditors Directors CSO * CSO ** CTO COO Media Services Marketing Solutions Shopping Company Central Services System Management CEO Office Company 716 Company 1,213 432 Company 269 Group 601 Risk Man
Slide 97: Number of Directors and Employees
Number of Directors and Employees (Number of People) (at the End of Quarter) 6,000 5,000 4,000 3,000 2,000 1,000 0 10/9 10/12 11/3 11/6 11/9 11/12 12/3 12/6 12/9 12/12 13/3 13/6 13/9 Directors and Auditors of 24 17 17 18 18 18 18 14 20 31 35 30 33 Subsidiaries Employees of 1,177 1,142 1,164 1,176 1,
Slide 98: Consolidated Subsidiaries and Companies Accounted for by the Equity Method
Consolidated Subsidiaries and Companies Accounted for by the Equity Method (as of September 30, 2013) •Major consolidated subsidiaries at the end of FY2013-2Q Carview Corporation Community Factory Inc. Crocos, Inc. CyberAgent FX, Inc. Firstserver, Inc GyaO CORPORATION IDC Frontier Inc.