Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q3 FY2009 Earnings Presentation
32 slides from Ly's earnings presentation, Jan 27, 2010
Slide 1: Yahoo Japan Corporation FY2009-3Q Business Results
Yahoo Japan Corporation FY2009-3Q Business Results (Oct.-Dec. 2009) January 27, 2010 1
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
Slide 3: FY2009-3Q Highlights – Financial Data
FY2009-3Q Highlights – Financial Data Display advertising sales exceeded those of the previous quarter by more than expected. As a result, year-on-year growth in quarterly revenues, operating income, and ordinary income expanded compared with the second quarter of fiscal 2009. (¥100M) YOY 2009-3Q 20
Slide 4: FY2009-3Q Highlights – Advertising
FY2009-3Q Highlights – Advertising Display advertising - As advertising spending in some industries declined, display advertising sales decreased compared with the same quarter a year earlier but increased more than 10% from the previous quarter mainly due to the increased sales to the finance and t
Slide 5: FY2009-3Q Highlights – Business Services
FY2009-3Q Highlights – Business Services E-commerce-related revenues - Yahoo! Shopping emphasized seasonal sales promotion special features and introduced Star Club, a special-benefit program for users. Thanks to sales promotion efforts, the quarterly transaction value increased approx. 20% year on
Slide 6: FY2009-3Q Highlights – Personal Services
FY2009-3Q Highlights – Personal Services Yahoo! Premium membership revenues - The number of Yahoo! Premium member IDs as of Dec. 31, 2009 hit a record high of 7.58 million. Furthermore, the revenues increased substantially year on year, supported by the upward revision of membership fees in Decembe
Slide 7: Approach for Improvement in Shareholder Value
Approach for Improvement in Shareholder Value Raising the dividend payout ratio to approx. 20% Past: Approx. 10% of consolidated net income for the period (Result of FY2008: Dividend per share ¥ 130) ÆDividend per share in FY2009 (forecast) : ¥279 to ¥285 For the period under review, the Company exp
Slide 8: Progress of GyaO! Business
Progress of GyaO! Business Achieved a monthly budget surplus Advertising sales of GyaO! Top page, etc. increased steadily after renewal in September 2009. Thanks to measures to improve profitability, the GyaO business turned a single-month profit. Increase in the number of users The number of users
Slide 9: Review of FY2009-3Q Business Outlook
Review of FY2009-3Q Business Outlook Display advertising sales recovered more than expected from the previous quarter, particular in such industries as financial services, transportation/leisure, and beverages/cigarettes. Research-related sales also expanded, pushing third quarter sales above the ma
Slide 10: FY2009-4Q Business Outlook
FY2009-4Q Business Outlook Advertising sales are expected to post year-on-year growth in listing advertising as well as in display advertising. Although the benefits of the increases in Yahoo! Premium membership fees and Yahoo! Auctions store royalties are wearing off, we will implement aggressive s
Slide 11: FY2009 Business Outlook
FY2009 Business Outlook (¥ 100M) FY2008 FY2009 (Actual) (Forecast) Revenue Operating Income Ordinary Income Net Income The above FY 2009 full year projection is the cumulative actual results of FY2009-1Q to 3Q plus the FY2009-4Q projection. 11
Slide 12: FY2009-3Q Financial Results
FY2009-3Q Financial Results •Main consolidated subsidiaries at the end of FY2009-3Q Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s Insurance Inc.
Slide 13: FY2009-3Q Statements of Income
FY2009-3Q Statements of Income 2009-3Q 2008-3Q Changes Revenue (¥100M) 709 669 5.9 % Cost of Sales (¥100M) 85 70 20.2 % Gross Profit (¥100M) 624 599 4.2 % Operating Income (¥100M) 364 331 9.9 % Ordinary Income (¥100M) 364 328 10.9 % Quarterly Net Income (¥100M) 208 191 9.0 % EPS (¥) 359 322 11.3 % N
Slide 14: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 Personal Services Business 400 Services 200 Adver- tising 0 Gross Net 06/10-12 07/1-3 4-6 7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 Total 545 575 566 610 700 742 655 660 669 671 676 680 709 14 • Figures of 08/1-3 and before are indicated
Slide 15: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 06/10-12 07/1-3 4-6 7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 Operating Income 276 295 296 300 312 337 328 330 331 355 342 344 364 Ordinary Income 266 284 285 293 308 328 324 326 328 350 340 341 364 Operating Margin 51% 51
Slide 16: FY2009-3Q Performance Breakdown by Business
FY2009-3Q Performance Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Business Group 68% Advertising 353 BS Business Group 30% 303 102 200 56.9% Consumer Business Group 2% Media Business Group 12% Business BS Business
Slide 17: SG&A Breakdown
SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY Increase in personnel (4,919 in 09/3Q % 09/2Q Change 08/3Q Change total +13.2% from 2008/12) Personnel Expenses 77 30.0% 74 4.6% 68 13.5% Reduced outsourcing by streamlining maintenance, operations and Business Commissions 32 12.3% 31 2.0
Slide 18: FY2009-3Q Balance Sheets
FY2009-3Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2009/12/31 2008/12/31 Decrease Increase/Decrease Assets Current Assets 1,623 1,275 347 Increase due to operating activities Cash and Deposits 993 748 244 Accounts Receivable -Trade 358 339 19 Fixed Assets 2,138 2,028 110 Absor
Slide 19: FY2009-3Q Cash Flow Statements
FY2009-3Q Cash Flow Statements FY2009-3Q (¥ 100M) Major Items Major Factors for Changes (Oct.-Dec. 2009) Operating Activities 235 Net Income before Income Taxes 355 Increase in quarterly net income Depreciation Expenses 25 before income taxes Accounts Receivable/Payable-Trade -12 Other Current Asset
Slide 20: 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 06/12 07/3 6 9 12 08/3 6 9 12 09/3 6 9 12 Directors and uditors of Subsidiaries 25 27 27 33 31 32 26 25 24 39 31 32 30 Employees of Subsidiaries 641 719 781 1,000 1,025 1,062 685 747 814 977
Slide 21: Appendix
Appendix 21
Slide 22: Change in Business Segments (Planned)
Change in Business Segments (Planned) A change in business segments is scheduled for FY2010, in accordance with the reorganization of business units conducted in April 2009. Media Business Group BS Business Group Consumer Business Group Both current and new business segments will be disclosed during
Slide 23: FY2009-3Q Performance Breakdown by New Business Segments
FY2009-3Q Performance Breakdown by New Business Segments (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Advertising 92% Business 258 Others 8% 219 95 124 48.0% Group Advertising 60% BS Business Group 176 Corporate Services 29% 137 57 79 4
Slide 24: New Business Segments Breakdown by Major Revenue Sources
New Business Segments Breakdown by Major Revenue Sources Media Business Group Advertising Display advertising (banner, text, email, and video advertising) Listing advertising (through advertising agencies) Others Yahoo! Research and others BS Business Group Advertising Listing advertising (online se
Slide 25: Web Search Query Market in Japan
Unauthorized use is not permitted Web Search Query Market in Japan Among the 4 major search sites, Yahoo! Search holds an approximately 60% share of the market. 07/1 7 08/1 7 09/1 7 11 Yahoo! JAPAN Web search Google Web search Company A Web search Company B Web search Source: Video Research Interact
Slide 26: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Beverages/Cigarettes Recruitment Services Transportation/Leisure Real Estate/Construction Fashion/Accessories Finance/Insurance/Securities 08/3Q 4Q 09/1Q 2Q 3Q Fi
Slide 27: Listing Advertising Sales by Industry
Listing Advertising Sales by Industry Industries with large quarter on quarter increase Industries with large quarter on quarter decrease Retail Sales Services Transportation/Leisure Information/Communication Educations/University Finance/Insurance Autos(Transport Equipment) 08/4Q 09/1Q
Slide 28: FY2009-3Q Major Advertisers - Display Advertising
FY2009-3Q Major Advertisers - Display Advertising Finance/Insurance/Securities Fashion/Accessories American Express International, Inc. FAST RETAILING CO., LTD. E.design Insurance Co.,Ltd. Tiffany & Co. Japan Inc. Sumitomo Mitsui Banking Corporation Beverages/Cigarettes Autos (Transport Equipment) C
Slide 29: Additional Business Data: 2009-3Q
Additional Business Data: 2009-3Q Average Daily Transaction Value Oct.-Dec. 2008 Oct.-Dec. 2009 Commerce \100M 26.7 27.1 Auction \100M 20.4 19.9 Shopping \100M * 6.3 7.1 Yahoo! Mobile e-commerce \100M 4.4 4.5 Subscriber Lines for Yahoo! BB Services End of Dec. 2008 End of Dec. 2009 Total (10 thousan
Slide 30: Organization Chart of Yahoo! JAPAN
Organization Chart of Yahoo! JAPAN Auditors Board of Directors President and CEO CSO CCO CTO Director & COO President & CEO Director & CFO Media Business BS Business Consumer R&D Group Business Administrative Group (452) Group (300) Group (287) (1,722) Division Regional Front-End Media Service EC Op
Slide 31: Yahoo! JAPAN Main Group Companies
Yahoo! JAPAN Main Group Companies Consumer Media Business BS Business Operations Business Group Group Group Group Y’s Insurance Yahoo Japan Y’s Sports Inc. IDC Frontier Inc. Inc. Customer Relations Corporation Yahoo Japan Value Netrust, Ltd. Insight Corporation Firstserver, Inc. CREO CO., LTD. Seven
Slide 32: Yahoo Japan Corporation IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 32