Ly Corporation · TSE:4689
Ly — Yahoo Japan — FY2013 Earnings Presentation
113 slides from Ly's earnings presentation, Apr 25, 2014
Slide 1: FY2013 Full Year & 4Q Business Results
Yahoo Japan Corporation FY2013 Full Year & 4Q Business Results (Apr. 2013-Mar. 2014/Jan.-Mar. 2014) April 25, 2014
Slide 2: Table of Contents
Table of Contents P. 3 Financial Highlights P. 25 Business & Strategies - Marketing Solutions Business - Consumer Business - Settlement & Finance / Other Businesses - Internet Carrier Business P. 85 Supplemental Information Statements made at the meeting or included in the documents that are not his
Slide 3: FY2013 Business Results
FY2013 Business Results 3
Slide 4: FY2013 Financial Highlights
FY2013 Financial Highlights Achieved revenue and profit YoY growth due to favorable advertising business. Proceeded with new strategies in e-commerce business and obtained expected results. (¥100M) YoY Change FY2012 FY2013 Change Contributors Advertising revenue grew. Yahoo! Premium membership Reven
Slide 5: Annual Revenue
Annual Revenue Net Revenue up 17 consecutive years since the start of services (¥100M) 4,000 3,862 3,000 2,000 1,000 Gross Net 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 *Commencing with FY2008, we started indicating revenue on a net rather than gross basis, by eliminating certain
Slide 6: Annual Revenue Breakdown
Annual Revenue Breakdown Total +432 (¥100M) (¥100M) 3,862 4,000 3,429 +12.6% 3,000 Marketing Solutions Business 2,725 +15.8% Advertising revenue increased. 2,354 2,000 Consumer Business +0.8% Yahoo! Premium membership revenue grew. e-Commerce-related revenue decreased under our new strategies. 1,000
Slide 7: Annual Advertising-related Revenue
Annual Advertising-related Revenue Total +252 (¥100M) (¥100M) 2,157 1,905 2,000 509 +13.3% 532 Display Advertising +22.0 1,500 298 Premium advertising revenue -4.3% 130 Revenue of advertising products excluding “Brand Panel” was mediocre. 1,000 YDN and others +129.7% 1,242 1,349 Yahoo! JAPAN Display
Slide 8: Annual Advertising-related Revenue via Smartphones
Annual Advertising-related Revenue via Smartphones (¥100M) 400 Smartphone advertising revenue 300 +201 (¥100M) +80.7% 452 200 Smartphone advertising revenue ratio 13.1% → 21.0% 250 100 *Smartphone advertising revenue includes some revenue via tablet devices. 0 FY2012 FY2013 * As a result of adopting
Slide 9: Annual e-Commerce Transaction Value
Annual e-Commerce Transaction Value Achieved 1.7 trillion yen (+7.6% YoY) transaction value. (¥100M) 17,246 Total +1,222 (¥100M) 16,023 3,227 Shopping-related +5.2% 15,000 3,067 Increased after introduction of new strategies Auction-related +7.7% Grew with more bidders and higher unit prices. 10,000
Slide 10: Annual Profit
Annual Profit Operating, Ordinary, and Net Income up 17 consecutive years since the start of services (¥100M) 2,000 50% 40% 1,500 Operating Income 30% Ordinary Income Net Income 1,000 Operating Margin Ordinary Margin 20% 500 10% 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (FY) 1
Slide 11: Review of FY2013 Business Outlook
Review of FY2013 Business Outlook (¥100M) FY2013 Forecast FY2013 (As of Actual Variance Analyses Jan. 29, 2014) Revenue 3,871 3,862 - Businesses with high profitability grew Operating Income 1,960 1,974 favorably. Ordinary Income 1,968 1,976 - Net Income 1,259 1,251 Impairment loss of fixed assets 1
Slide 12: Cash Dividends for FY2013 (Planned)
Cash Dividends for FY2013 (Planned) Cash dividends per share (¥) 4.43 Cash dividends 4.5 per share grew 4.01 10.5% YoY. 4.0 3.47 The Company’s dividend payout ratio 3.5 continues to be approximately 20% of consolidated net income. 3.0 2.5 2.0 FY2011 FY2012 FY2013 12 * The Company split shares 100-fo
Slide 13: FY2013 - 4Q Business Results
FY2013 - 4Q Business Results 13
Slide 14: FY2013-4Q Financial Highlights
FY2013-4Q Financial Highlights Revenue surpassed 100 billion yen, reaching a record high. (¥100M) YoY Change 2012-4Q 2013-4Q Change Contributors Advertising revenue grew. Yahoo! Premium membership revenue Revenue 979 1,013 3.5% increased. Growth trend slowed under our new e- commerce strategies. Ope
Slide 15: Quarterly Revenue
Quarterly Revenue (¥100M) 1,013 1,000 800 600 400 Gross Net 200 0 '04/ '05/ '06/ '07/ '08/ '09/ '10/ '11/ '12/ '13/ '14/ 1-3 1-3 1-3 1-3 1-3 1-3 1-3 1-3 1-3 1-3 1-3 * Commencing with FY2008, we started indicating revenue on a net rather than gross basis, by eliminating certain items in cost of sales
Slide 16: Quarterly Revenue YoY Growth Trend
Quarterly Revenue YoY Growth Trend Revenue YoY growth rate dropped temporarily under our new e-commerce strategies. 25% 20% 15% 10% 5% 3.5% 0% '11/1-3 '12/1-3 '13/1-3 '14/1-3 16
Slide 17: Quarterly Revenue Breakdown
Quarterly Revenue Breakdown 1,013 Total +33 (¥100M) (¥100M) 979 1,000 +3.5% 800 Marketing Solutions Business 682 744 +9.0% 600 Advertising revenue grew. 400 Consumer Business -7.6% e-Commerce related revenue decreased under our new strategies. 200 Revenue from premium members increased. 259 239 59 6
Slide 18: Quarterly Advertising-related Revenue
Quarterly Advertising-related Revenue (¥100M) 600 591 Total +45 (¥100M) 546 500 146 +8.3% 158 Display Advertising +18.2 400 92 Premium advertising revenue -7.2% 44 Revenue of advertising products excluding “Brand Panel” was mediocre. 300 YDN and others +109.0% 200 Yahoo! JAPAN Display Ad Network (YD
Slide 19: Quarterly Advertising-related Revenue via Smartphones
Quarterly Advertising-related Revenue via Smartphones (¥100M) 150 Smartphone advertising revenue +63 (¥100M) 100 +72.6% 150 Smartphone advertising revenue ratio 50 16.0% → 25.4% 87 *Smartphone advertising revenue includes some revenue via tablet devices. 0 '13/1-3 '14/1-3 * As a result of adopting a
Slide 20: Quarterly Advertising-related Revenue YoY Growth Trend
Quarterly Advertising-related Revenue YoY Growth Trend 30% 25% 20% 18.2% 15% Display Advertising 10% Paid Search 5% Advertising 2.4% 0% -5% '11/1-3 '12/1-3 '13/1-3 '14/1-3 20
Slide 21: Quarterly e-Commerce Transaction Value
Quarterly e-Commerce Transaction Value (¥100M) Total +578 (¥100M) 5,000 4,579 +14.5% 4,000 888 Shopping-related +20.5% 4,000 Proceeded with new e-commerce strategies. 737 Transaction value hiked before the raise in consumption taxes. 3,000 1,935 Auction-related +11.5% 1,735 Grew with more bidders an
Slide 22: Quarterly Profit Trend
Quarterly Profit Trend Profits decreased temporarily under aggressive promotion and advertising activities related to new e-commerce strategies. (¥100M) 500 50% 400 40% Operating Income Ordinary Income 300 30% Quarterly Net Income Operating Margin Ordinary Margin 200 20% 100 10% 0 0% '04/1-3 '06/1-3
Slide 23: Quarterly Operating Income YoY Growth Trend
Quarterly Operating Income YoY Growth Trend Profits decreased temporarily under aggressive promotion and advertising activities related to new e-commerce strategies. 20% 15% 10% 5% 0% -1.3% -5% '11/1-3 '12/1-3 '13/1-3 '14/1-3 23
Slide 24: FY2014-1H Business Outlook
FY2014-1H Business Outlook The following figures are on IFRSs Basis. eAccess Ltd. will become a consolidated subsidiary from June. (¥100M) 2013-1H 2014-1H YoY Change Contributors (Actual) (Forecast) Change Advertising revenue expected to grow. Yahoo! Premium membership revenue Revenue 1,980 3,359 69
Slide 25: Marketing Solutions Business
Marketing Solutions Business 25
Slide 26: DUBs of Top 20 Services Growing Favorably
DUBs of Top 20 Services Growing * Favorably '11/1-3 '12/1-3 '13/1-3 '14/1-3 Source Yahoo Japan Corporation *DUB=Daily Unique Browser 26
Slide 27: Cumulative downloads of iOS+Android applications
Cumulative downloads of iOS+Android applications are 160 million and up More than double More than 160 million More than 135 million More than 115 million More than More than 95 million 80 million ′13/1-3 4-6 7-9 10-12 ′14/1-3 27
Slide 28: Measures to Increase Traffic
Measures to Increase Traffic 28
Slide 29: Started to Offer Yahoo! News Official Application for iPad
Started to Offer “Yahoo! News” Official Application for iPad App Store Free App General Ranking No.1 One can view main news stories and weather information with one tap. Titles of articles are displayed in timeline format which adopts to tablet display. 29
Slide 30: Sportsnavi
“Sportsnavi” Started to offer “Playback video” for the Pacific League of Japanese professional baseball and “Score board” application. Distribution of flash news of highlights for free Scores of domestic and overseas baseball and football games can be checked at a glance. 30
Slide 31: Launched SmartSearch
Launched “SmartSearch” Offering new search services based on the catchword “Go from searching to finding” - Display pictures and news related to search results on one page - Topical information can be checked by sliding the screen. 31
Slide 32: Measures to Increase Revenue and Profit
Measures to Increase Revenue and Profit 32
Slide 33: Paid Search Advertising
Paid Search Advertising 33
Slide 34: Search Queries via Smartphones and Tablets Increased Favorably
Search Queries via Smartphones and Tablets Increased Favorably. Yahoo! JAPAN Search queries via smart devices ′11/4 ′11/10 ′12/4 ′12/10 ′13/4 ′13/10 Source Yahoo Japan Corporation 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 Share of Rich Ad revenue in total “Brand Panel” revenue was approx. 40% in March. +18% 36
Slide 37: Revenue from YDN Increased More Than 2 Times YoY
Revenue from YDN in FY2013-4Q Increased More Than 2 Times YoY 2.1 times '13/1-3 '14/1-3 37 Revenue from YDN
Slide 38: New Advertising Products Started Out Well
New Advertising Products Started Out Well Yahoo! Premium DSP Approx. 30 national clients started purchasing this product. Video Advertising Launched new formats for video advertising Advertising image: YJFX 38 38
Slide 39: Agreed on Sales of Twitter Ads
Agreed on Sales of Twitter Ads Advertisers can post advertising on Twitter via our ad management system for Sponsored Search and YDN. 39
Slide 40: Consumer Business
Consumer Business 40
Slide 41: Yahoo! Shopping
Yahoo! Shopping 41
Slide 42: Will Increase the Number of Sellers First, then Products
Yahoo! Shopping Will Increase the Number of Sellers First, then Increase the Number of Products More Tougher products competition Attractive More Advertising platform for sellers buyers exposure Larger More transaction buyers 42 value
Slide 43: Added approx. 60 thousand Store IDs YoY
Yahoo! Shopping Added approx. 60 thousand Store IDs YoY. IDs 80,000 78,307 Number of Yahoo! Shopping Store IDs * 60,000 40,000 Approx. 20 thousand IDs 20,000 0 ′03/3 ′04/3 ′05/3 ′06/3 ′07/3 ′08/3 ′09/3 ′10/3 ′11/3 ′12/3 ′13/3 ′14/3 (end of month) * Number of corporate and individual accounts issued.
Slide 44: Individual Sellers Started Opening Stores
Yahoo! Shopping Individual Sellers (Yahoo! Premium members) Started Opening Stores Attractiveness of the platform is up with the wider variety of products. Sellers will receive money after buyers receive products (escrow services). We also strengthened the patrolling system. 44
Slide 45: Offered 50 APIs for Free
Yahoo! Shopping Offered 50 APIs for Free First-ever offer of APIs (application programing interfaces) for listing management or commodity management Aiming to increase transaction value by offering convenient functions to sellers. 45
Slide 46: Number of products increased by approx. 40% YoY
Yahoo! Shopping Number of products increased by approx. 40% YoY (million items) 100 80 60 40 20 0 ′13/3 ′14/3 (end of month) 46
Slide 47: Number of buyers and transaction value also expanded
Yahoo! Shopping Number of buyers and transaction value also expanded. More Tougher products competition Attractive More Advertising platform for sellers buyers Exposure Larger More transaction buyers 47 value
Slide 48: Number of Orders, Buyers and Average Unit Price Increased
Yahoo! Yahoo! Shopping Number of Orders, Number of Buyers and Average Unit Price Increased by approx. 20% YoY in March. Campaign before tax increase 48
Slide 49: Quarterly Transaction Value Achieved Record High
Yahoo! Shopping Quarterly Transaction Value Achieved Record High (¥100M) Yahoo! Shopping Quarterly Transaction Value 888 800 700 600 500 400 300 200 100 0 ′04/1-3 ′05/1-3 ′06/1-3 ′07/1-3 ′08/1-3 ′09/1-3 ′10/1-3 ′11/1-3 ′12/1-3 ′13/1-3 ′14/1-3 49
Slide 50: Monthly Transaction Value Increased Sharply on YoY basis
Yahoo! Shopping Yahoo! Shopping Monthly Transaction Value Increased Sharply on YoY basis. 40% 35.8% 35% Yahoo! Shopping Monthly Transaction Value YoY Growth Rate 30% 25% 20% 15% 10% 5% 0% -5% -10% ′08/3 ′08/9 ′09/3 ′09/9 ′10/3 ′10/9 ′11/3 ′11/9 ′12/3 ′12/9 ′13/3 ′13/9 ′14/3 50
Slide 51: Transaction Value Expansion Leads to Advertising Growth
Yahoo! Shopping Transaction Value Expansion Leads to Advertising Growth in the Future. More Tougher products competition Attractive More Advertising platform for sellers buyers Exposure Larger More transaction buyers 51 value
Slide 52: YAHUOKU! (Auction services)
YAHUOKU! (Auction services) 52
Slide 53: Starting Business Ecosystem with More Buyers
YAHUOKU! (Auction) Starting Business Ecosystem with “More Buyers” More Tougher products competition Attractive Increase in revenue More from auction platform for sellers royalties and buyers membership fees Larger More transaction buyers 53 value
Slide 54: Number of bidders increased YoY
YAHUOKU! (Auction) Number of bidders increased YoY. New bidders increased by more than 10% YoY. Average winning bid increased by more than 10% YoY. Number of buyers increased YoY for three consecutive months in a quarter for the first time in 4 years. 54
Slide 55: Quarterly Transaction Value Growth Rate Accelerated
YAHUOKU! (Auction) YAHUOKU! Quarterly Transaction Value Growth Rate Accelerated 12% 11.5 YAHUOKU! Quarterly Transaction Value 10% YoY Growth Rate 8% 6% 4% 2% 0% -2% -4% -6% -8% ′07/1-3 ′08/1-3 ′09/1-3 ′10/1-3 ′11/1-3 ′12/1-3 ′13/1-3 ′14/1-3 55
Slide 56: Will Increase the Number of Both Sellers and Products
YAHUOKU! (Auction) Will Increase the Number of Both Sellers and Products More Tougher products competition Attractive Increase in revenue More from auction platform for sellers royalties and buyers membership fees Larger More transaction buyers 56 value
Slide 57: Number of issued store IDs continued to grow
YAHUOKU! (Auction) Number of issued store IDs continued to grow. (IDs) YAHUOKU! Number of Stores * 17,955 18,000 17,000 16,000 15,000 14,000 ′11/3 ′12/3 ′13/3 ′14/3 (End of month) * Number of accounts issued. 57 It includes the number of accounts still preparing the store sites.
Slide 58: Number of listings increased approx. 10% YoY
YAHUOKU! (Auction) Number of listings increased approx. 10% YoY. Number of sellers in March increased YoY for the first time in 2 years. 58
Slide 59: Opened Reuse Japan Market
Opened “Reuse Japan Market” Held an offline promotion event to encourage people to reuse items. World largest flea market - participants bring used clothes to Fukuoka YAHUOKU! Dome (baseball field) and join in reuse activities. 59
Slide 60: Capital and Business Alliance with BOOKOFF
Capital and Business Alliance with BOOKOFF Yahoo Japan Corporation will acquire 3.1 million shares (15.02% of voting rights) of BOOKOFF CORPORATION LIMITED via allocation of new shares as of May 15, 2014. We also will acquire 77 convertible bonds, which will increase our voting share ratio to be 43.
Slide 61: YAHUOKU! Will Be a Sales Platform for BOOKOFF Products
YAHUOKU! Will Be a Sales Platform for BOOKOFF Products We purchase items from customers at approx. 1,000 stores of BOOKOFF, and sell them on YAHUOKU! We aim to increase the inventory of used books at YAHUOKU! to 10 million, 5 times the present level. List Items YAHUOKU! 61
Slide 62: Use Offline Stores of BOOKOFF to Promote YAHUOKU!
Use Offline Stores of BOOKOFF to Promote YAHUOKU! BOOKOFF plans to start trading various items in FY2014. The trade of mobile phones will be strengthened in BOOKOFF stores. Mobile phones will be traded on YAHUOKU as well, and we aim at stocking 1 million handsets constantly. 62
Slide 63: Plan to Establish Nation's Largest Reuse Center
Plan to Establish Nation’s Largest Reuse Center Part of items gathered at BOOKOFF to be sold at YAHUOKU! will be kept here. We plan to use this center to develop B2B reuse activities, or to offer e-commerce fulfillment services to stores, etc. 63
Slide 64: Will Increase Transaction Value and Expand Royalty Revenue
YAHUOKU! (Auction) Will Increase the Transaction Value and Expand the Revenue from Transaction Royalties and Membership Fees More Tougher products competition Attractive Increase in revenue More platform for from auction sellers royalties and buyers membership fees Larger More transaction buyers 64
Slide 65: Premium Membership
Premium Membership 65
Slide 66: Premium Member IDs Reached 9.87 Million
Number of Premium Member IDs Reached 9.87 Million by End of March. Maintained growth trend even after the right to bid on high priced items had been extended to non-premium members. (10 thousand IDs) 1,000 987 950 900 850 800 750 0 700 '11/3 '12/3 '13/3 '14/3 66
Slide 67: Started to Offer Smartphone Super Valuable Pack
Started to Offer “Smartphone Super Valuable Pack” Softbank Smartphone users can subscribe to this package which includes various services such as “Yahoo! Premium,” support services when handsets are lost or stolen, participation rights for LOHACO exclusive super sales for members, etc., at 500 yen p
Slide 68: Settlement & Finance / Other Businesses
Settlement & Finance Other Businesses 68
Slide 69: Strengthen Collaboration with Japan Net Bank
Strengthen Collaboration with Japan Net Bank After receiving approval of the Financial Services Agency to become a major shareholder of the bank as of April 1, 2014, plan to increase percentage of shares of Japan Net Bank held by Yahoo! JAPAN to 41.16% as of April 30, 2014. We will strengthen the ti
Slide 70: Started to Offer Yahoo! Wallet FastPay
Started to Offer “Yahoo! Wallet FastPay” Users can adopt our on-line credit card settlement system by posting several lines of program code. The settlement fee is 3.25% of the settlement amount, which is lowest in the industry. No need to pay initial cost nor monthly fees. 70
Slide 71: Internet Carrier Business
Internet Carrier Business 71
Slide 72: Rejuvenated Yahoo! JAPAN Started Operations in April 2012
Rejuvenated Yahoo! JAPAN Started Operations in April 2012 X2 ¥165 bn 2012.3 201X.3 Double Operating Income by FY ending March 201X 72
Slide 73: FY2012 results
FY2012 Operating income +12.9% YoY Advertising revenue +15.0% YoY However, transaction value* was down 0.5%. We needed to restructure our e-commerce business. Revenue and Income Transaction Value (¥100M) Operating Income Advertising Revenue e-Commerce (¥100M) 2,000 Transaction Value 10,000 1,500 8,0
Slide 74: October 2013
October 2013 Announced new strategies for e-commerce business aiming at expansion of transaction value. We are proceeding the project as planned: numbers of sellers, buyers, and products as well as transaction value expanded. More Tougher products competition Attractive More platform for sellers buy
Slide 75: November 2013
November 2013 Announced new initiatives for advertising. Even in the successfully expanding advertising field, we are making continuous efforts to develop new revenue sources to add to paid search and display advertising. 75
Slide 76: March 2014
March 2014 Announced the start of an Internet carrier business that provides a platform for advertising and e-commerce business 76
Slide 77: eAccess Ltd. Will Become a Subsidiary
eAccess Ltd. Will Become a Subsidiary of Yahoo Japan Corporation Planning to acquire 99.68% of issued shares (33.29% of voting rights) from SoftBank Corp. on June 2, 2014. * eAccess Ltd. will undergo a merger with WILLCOM, Inc. on June 1, 2014, with eAccess Ltd. as the surviving company. 77
Slide 78: Acquisition Process
Acquisition Process June 1, 2014 eAccess Ltd. and WILLCOM, Inc. will merge. June 2, 2014 Yahoo Japan Corporation will acquire the shares of eAccess Ltd. (surviving company) from SoftBank Corp. 78
Slide 79: Addition of Revenue and Profit Through Telecommunication Services
Addition of Revenue and Profit Through Telecommunication Services We aim at increasing the number of Y!mobile users centering Yahoo! JAPAN user base in an attractive market in size and potential. Image of EBITDA Growth (¥100M) 750 800 *conceptual only FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 The ab
Slide 80: Expansion of Paid Services Revenue
Expansion of Paid Services Revenue By offering paid services such as Yahoo! Premium to Y!mobile Users, we aim to increase the number of members as well as related revenue. (10 thousand IDs) 1,000 Collaboration with SoftBank Mobile Corp. 950 (since Oct. 2012) Number of subscribers exceeded 9.5 millio
Slide 81: Expansion of Usage of Yahoo! JAPAN
Expansion of Usage of Yahoo! JAPAN We will offer smart device handsets with our services pre-installed as a start point. This and other measures will expand the usage of our services to increase media value, advertising inventory, and e-commerce transaction value. 81
Slide 82: Leverage Y!mobile Shops To Expand Usage
Leverage Y!mobile Shops To Expand Usage of Yahoo! JAPAN Services Planning to leverage existing 1,000 carrier shops, 2,000 mass merchandise outlets and others, and more than 6,000 sales people. Will consider promoting Yahoo! JAPAN services by using the spots to acquire subscribers for our membership
Slide 83: Increase in Smartphone Users Will Change Internet Usage
Increase in Number of Smartphone Users Will Change the Internet Usage Environment Expanding Y!mobile usage will increase the number of Internet users and expand the markets for Internet advertising, e-commerce and digital content. 83
Slide 84: Yahoo! JAPAN Goals Are...
Yahoo! JAPAN Goals Are… 330 Billion Yen in Operating Income by FY Ending March 201X. No.1 in Transaction Value in the e-Commerce Market by FY201X. To more than double the number of Y!mobile subscribers. (over 20 million subscribers in total) 84
Slide 85: Table of Contents
Table of Contents P. 86 FY2013 Business Results P. 91 Quarterly Business Results P. 108 Quarterly Business Data P. 110 Organization, Personnel and Affiliated Companies 85
Slide 86: FY2013 Statements of Income
FY2013 Statements of Income FY2012 FY2013 Change Revenue (¥100M) 3,429 3,862 12.6 % Cost of Sales (¥100M) 363 490 34.8 % Gross Profit (¥100M) 3,065 3,372 10.0 % SG&A (¥100M) 1,202 1,398 16.3 % Operating Income (¥100M) 1,863 1,974 5.9 % Ordinary Income (¥100M) 1,886 1,976 4.8 % Net Income (¥100M) 1,1
Slide 87: FY2013 Annual Performance Breakdown by Business Segment
FY2013 Annual Performance Breakdown by Business Segment (¥ 100M) Cost of Operating Ordinary Operating Ordinary Revenue Revenue Breakdown SG&A Sales Income Income Margin Margin Advertising 2,128 Marketing Solutions 2,725 Business Services Personal Services 438 124 525 730 1,469 1,470 53.9% 53.9% Busi
Slide 88: Annual SG&A Breakdown
Annual SG&A Breakdown (¥ 100M) Major Factors for YoY Changes Composition FY2012 FY2013 Ratio Change Number of employees reached 6,291, up 511 persons (8.8%) Personnel Expenses 392 452 32.4% 15.3% Increase of operations Business Commissions 143 167 12.0% 16.5% commission fees for our services Sales P
Slide 89: FY2013 Balance Sheets
FY2013 Balance Sheets j Major Items (2012/3/31) (2013/3/31) Decrease Increase/Decrease (¥ 100M) Assets Current Assets 5,761 6,652 891 Cash and Cash Equivalents 4,140 4,826 685 Increase in cash from operating activities Notes and Accounts Receivable - Trade 559 611 52 Foreign Exchange Dealings Cash I
Slide 90: FY2013 Cash Flow Statements
FY2013 Cash Flow Statements FY2013 (¥ 100M) Major Items (Apr. 2013 - Mar. 2014) Major Factors for Changes Operating Activities 1,328 Net Income before Income Taxes 2,046 Depreciation Expenses 142 Gain-Loss on Sale of Investment Securities -117 Accounts Receivable and Payable -Trade -31 Other Current
Slide 91: FY2013-4Q Statements of Income
FY2013-4Q Statements of Income 2012-4Q 2013-4Q Change Revenue (¥100M) 979 1,013 3.5 % Cost of Sales (¥100M) 119 128 6.9 % Gross Profit (¥100M) 859 885 3.0 % SG&A (¥100M) 350 382 9.2 % Operating Income (¥100M) 509 502 -1.3 % Ordinary Income (¥100M) 518 499 -3.6 % Quarterly Net Income (¥100M) 318 319
Slide 92: FY2013-4Q Performance Breakdown by Business Segment
FY2013-4Q Performance Breakdown by Business Segment (¥ 100M) Cost of Operating Ordinary Operating Ordinary Revenue Revenue Breakdown SG&A Sales Income Income Margin Margin Advertising 585 Marketing Business Services 116 Solutions 744 Personal Services 32 138 195 410 410 55.1% 55.2% Business Intra-Co
Slide 93: Business Segment Breakdown
Business Segment Breakdown Marketing Solutions Business Advertising: Paid search advertising “Sponsored Search” Display advertising (Premium advertising, Interest-based advertising (YDN)) Business Services: Data Center-related, Affiliate-related, Yahoo! Real Estate, Automobile-related, Indival, Yaho
Slide 94: Quarterly SG&A Breakdown
Quarterly SG&A Breakdown (¥ 100M) Major Factors for YoY Changes Composition QoQ YoY Number of employees reached 12/4Q 13/3Q 13/4Q Ratio Change Change 6,291 up 511 persons (8.8%) Personnel Expenses 115 109 122 32.1% 11.9% 5.8% Increase of operations Business Commissions 36 43 45 12.0% 5.0% 26.6% comm
Slide 95: FY2013-4Q Balance Sheets
FY2013-4Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2013/12/31 2014/3/31 Decrease Increase/Decrease Assets Current Assets 6,110 6,652 541 Cash and Cash Equivalents 4,299 4,826 526 Increase in cash from operating activities Notes and Accounts Receivable - Trade 565 611 45 Foreig
Slide 96: FY2013-4Q Cash Flow Statements
FY2013-4Q Cash Flow Statements FY2013-4Q (¥ 100M) Major Items (Jan. - Mar. 2014) Operating Activities 565 Quarterly Net Income before Income Taxes 538 Depreciation Expenses 39 Gain-Loss on Sale of Investment Securities -66 Accounts Receivable and Payable -Trade -15 Other Current Assets/Liabilities 8
Slide 97: FY2013-4Q Highlights – Marketing Solutions Business
FY2013-4Q Highlights – Marketing Solutions Business Paid search advertising (Paid search advertising [Sponsored Search]) - Smartphone advertising revenue expanded substantially year on year due to such measures as promoting search service usage for smartphone. - Sponsored Search revenue grew by 2.4%
Slide 98: FY2013-4Q Highlights – Consumer Business
FY2013-4Q Highlights – Consumer Business Business Services - Yahoo! Shopping made store tenant and royalty fees free of charge, leading to a significant decrease in year-on-year revenue. On the positive side, the transaction value of Yahoo! Shopping increased by 20% or more year on year with impleme
Slide 99: Acquisition Conditions for eAccess Ltd.
Acquisition Conditions for eAccess Ltd. Class A shares (non-voting shares) Number of shares 342,777 shares (after the merger) to be acquired Class B shares (voting shares) 549 shares (33.29% of voting rights) Acquisition cost 324 billion yen (Paid with cash) Yahoo Japan Corporation decided to adopt
Slide 100: Investments and Loans
Investments and Loans Repayment of loan: Approx. 130 billion yen *Assumed loan Finance: amount Approx. 170 billion yen on transfer date Share Acquisition: 324 billion yen Finance: Approx. 170 billion yen Financial Institution Yahoo Japan Corporation will provide finance to eAccess. The loan from Sof
Slide 101: Business Overview of Companies To Be Merged and Acquired
Business Overview of Companies To Be Merged and Acquired FY2012 eAccess Ltd. WILLCOM, Inc. Revenue ¥220.7 billion ¥169.3 billion Operating Income ¥15.0 billion ¥6.3 billion Ordinary Income ¥10.1 billion ¥6.7 billion Net Income -¥2.4 billion ¥7.7 billion Net Assets ¥76.7 billion ¥56.1 billion Total A
Slide 102: Spectrum Comparison
Spectrum Comparison Frequency Band Carrier Total 700MHz 800MHz 900MHz 1.5GHz 1.7GHz 1.9GHz 2.1GHz 2.5GHz 10MHz×2 20MHz×2 NTT 15MHz×2 15MHz×2 (LTE 20MHz×2) 20MHz×2 80MHz×2 Under Migration (LTE 10MHz×2) (LTE 15MHz×2) (LTE 15MHz×2) (LTE 55MHz×2) DOCOMO *1 Only Tokyo, Nagoya and Osaka 10MHz×2 15MHz×2 10
Slide 103: Management Team
Management Team Chairman Eric Gan President & CEO Manabu Miyasaka SEVP(Senior Executive Vice President) Hiroyuki Terao SEVP(Senior Executive Vice President) Motonari Abe SEVP(Senior Executive Vice President) Shin Murakami Director Ken Miyauchi Director Toshiki Oya 103
Slide 104: 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 Major (Sales Promotion) Per Click pages corporations (per-click rate determined by Small and Interest-based keyword
Slide 105: 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 Interior/Gardening/Renovation/DIY Finance/Insurance/Securities Department Stores/Mail Order/Shopping Malls Real Estate/Housing/Household Equipment Fashion/Acc
Slide 106: Premium Advertising Revenue by Industry
Premium Advertising Revenue by Industry Industries with large year-on-year increase Industries with large year-on-year decrease Beverages/Cigarettes Mobile Communications Service Home Electronics/AV Equipment Transportation/Leisure Autos and Accessories (Transport Equipment) Cosmetics/To
Slide 107: YDN and other Advertising Revenue by Industry
YDN and other Advertising Revenue by Industry Industries with large year-on-year increase Real Estate/Housing/Household Equipment Finance/Insurance/Securities Cosmetics/Toiletries/Health Foods and Appliances 12/4Q 13/1Q 2Q 3Q 4Q Finance/Insurance/Securities 29.0% 29.4% 23.0% 21.8% 20.4% Cosmet
Slide 108: Quarterly Business Data (1)
Quarterly Business Data (1) Indicator (Quarterly average) 2012/4Q 2013/4Q Number of total monthly page views (millions) 50,712 56,502 Number of total monthly smartphone page views (millions)(1) 11,742 20,590 Number of Daily UBs (Unique Browsers) (millions)(2) 56.27 67.34 Number of smartphone Daily U
Slide 109: Quarterly Business Data (2)
Quarterly Business Data (2) Indicator (Quarterly total) 2012/4Q 2013/4Q Transaction value of YAHUOKU! (100 millions of yen) 1,735 1,935 Transaction value of shopping-related (100 millions of yen) 737 888 Transaction value of YAHUOKU! and shopping-related (100 millions of yen) 2,473 2,824 Transaction
Slide 110: Organization Chart of Yahoo Japan Corporation
As of April 1, 2014 Organization Chart of Yahoo Japan Corporation Board of Board of President & CEO Auditors Directors SEVP/COO CMO SEVP/CFO Media Services Application Corporate Strategy CEO Office Company (451) Development Office Division People Search Services TD Finance Division Development Compa
Slide 111: 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 11/3 11/6 11/9 11/12 12/3 12/6 12/9 12/12 13/3 13/6 13/9 13/12 14/3 Directors and Auditors of 17 18 18 18 18 14 20 31 35 30 33 31 30 Subsidiaries Employees of 1,164 1,176 1,173 1,234 1,
Slide 112: Consolidated Subsidiaries and Companies Accounted for by the Equity Method
Consolidated Subsidiaries and Companies Accounted for by the Equity Method (as of March 31, 2014) •Major consolidated subsidiaries at the end of FY2013-4Q Carview Corporation Community Factory Inc. Crocos, Inc. Firstserver, Inc GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust
Slide 113: Yahoo Japan Group IR information
Yahoo Japan Group IR information is available at : http://ir.yahoo.co.jp/en/ 113