Ly Corporation · TSE:4689
Ly — Yahoo Japan — FY2009 Q2 Earnings Presentation
32 slides from Ly's earnings presentation, Oct 27, 2009
Slide 1: FY2009-2Q Business Results (Jul.-Sept. 2009)
Yahoo Japan Corporation FY2009-2Q Business Results (Jul.-Sept. 2009) October 27, 2009 1
Slide 2: Forward-looking statements disclaimer
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: FY2009-2Q Highlights – Financial Data
FY2009-2Q Highlights – Financial Data Yahoo! JAPAN Group achieved growth from a year earlier in both revenue and profits. (¥100M) YOY 2009-2Q 2008-2Q Change Revenue 680 660 3.0% Operating Income 344 330 4.3% Ordinary Income 341 326 4.6% Quarterly Net Income 200 177 13.1% 3
Slide 4: FY2009-2Q Highlights – Advertising
FY2009-2Q Highlights – Advertising Display advertising - Advertising from major advertisers declined in some industries, such as financial services and human resource-related industries, with display advertising sales falling compared with the second quarter last year. In contrast, advertising incre
Slide 5: FY2009-2Q Highlights – Business Services
FY2009-2Q Highlights – Business Services E-commerce-related revenues - Yahoo! Shopping conducted sales promotions and special features, including a sale to commemorate the 10th anniversary of the start of services, a sales campaign offering Yahoo! Points, and a sale exclusively for Yahoo! Premium m
Slide 6: FY2009-2Q Highlights – Personal Services
FY2009-2Q Highlights – Personal Services Yahoo! Premium membership revenues - As of September 30, 2009, the number of Yahoo! Premium member IDs reached a record high of 7.5 million. Moreover, revenues expanded notably from a year earlier, supported by the December 2008 upward revision of membership
Slide 7: GyaO! Site Renewal, GyaO! Store Launch
GyaO! Site Renewal, GyaO! Store Launch Integrated Yahoo! Streaming and GyaO, creating the largest official video content distribution services in Japan. Began services for GyaO!, a free video content distribution site and GyaO! Store, a pay video content distribution site. Based on guidance by Yahoo
Slide 8: GyaO! Site Renewal, GyaO! Store Launch
GyaO! Site Renewal, GyaO! Store Launch Actions to increase profitability - Switched payments to content providers to revenue sharing system. - Integrated distribution platforms. Targeting expansion in advertising and content fee collection revenues - Offering display, paid search, and interest-linke
Slide 9: Absorption Merger with Overture K.K.
Absorption Merger with Overture K.K. Carried out absorption merger with wholly owned Overture K.K. on October 1, 2009 Leveraging Yahoo! JAPAN’s brand power, we are seeking to more aggressively expand listing advertising by acquiring many new advertisers, etc. Plan to expand advertising business by o
Slide 10: Received the FY2009 Informatization Month METI Award
Received the FY2009 Informatization Month METI Award <Reason for Award> Contributing to the spread and greater awareness of information securities measures among the public in Japan through special features and other actions regarding information security. By creating iTres, a system that monitors a
Slide 11: Review of FY2009-2Q Business Outlook
Review of FY2009-2Q Business Outlook Although sales of the advertising business, particularly display advertising sales, declined year on year, there were signs of recovery. Interest-linked advertising sales surged notably both year on year and from the first quarter. Consequently, sales exceeded th
Slide 12: FY2009-3Q Business Outlook
FY2009-3Q Business Outlook We expect e-commerce-related revenues to grow based on transaction volume expansion. Advertising sales should increase on the strength of growth in listing advertising. With the benefits of the upward revisions in fees, etc., implemented in the previous fiscal year continu
Slide 13: FY2009-2Q Financial Results
FY2009-2Q Financial Results •Main consolidated subsidiaries at the end of FY2009-2Q Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Overture K.K. * Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’
Slide 14: FY2009-2Q Statements of Income
FY2009-2Q Statements of Income 09-2Q 08-2Q Changes Revenue (¥100M) 680 660 3.0 % Cost of Sales (¥100M) 83 70 17.9 % Gross Profit (¥100M) 596 589 1.2 % Operating Income (¥100M) 344 330 4.3 % Ordinary Income (¥100M) 341 326 4.6 % Quarterly Net Income (¥100M) 200 177 13.1 % EPS (¥) 345 299 15.5 % Numbe
Slide 15: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 Personal Services Business 400 Services 200 Adver- tising 0 Gross Net 06/7-9 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 Total 512 545 575 566 610 700 742 655 660 669 671 676 680 15 • Figures of 08/1-3 and before are indicated o
Slide 16: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 06/7-9 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 Operating Income 250 276 295 296 300 312 337 328 330 331 355 342 344 Ordinary Income 247 266 284 285 293 308 328 324 326 328 350 340 341 Operating Margin 49% 51%
Slide 17: FY2009-2Q Revenue Breakdown by Business
FY2009-2Q Revenue Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Business Group 67% Advertising 341 BS Business Group 31% 291 102 189 55.5% Consumer Business Group 2% Media Business Group 15% Business Services 157 BS
Slide 18: SG&A Breakdown
SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 09/2Q % 09/1Q Change 08/2Q Change Increase in personnel (4,940 in total +16.1% from 2008/9) Personnel expenses 74 29.5% 72 2.3% 65 14.3% Reduced outsourcing by Business commissions 31 12.4% 32 -3.1% 42 -25.7% streamlining maintenance, ope
Slide 19: FY2009-2Q Balance Sheets
FY2009-2Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2009/9/30 2008/9/30 Decrease Increase/Decrease Assets Current Assets 1,439 1,273 166 Increase due to operating activities Cash and Deposits 902 767 134 Accounts Receivable -Trade 335 340 -5 Absorption merger with Fixed Assets
Slide 20: FY2009-2Q Cash Flow Statements
FY2009-2Q Cash Flow Statements FY2009-2Q (¥ 100M) Major Items Major Factors for Changes (Jul.-Sept. 2009) Operating Activities 384 Net Income before Income Taxes 340 Increase in quarterly net income Depreciation Expenses 25 before income taxes Accounts Receivable/Payable-Trade 6 Investing Activities
Slide 21: 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 06/9 12 07/3 6 9 12 08/3 6 9 12 09/3 6 9 Directors and uditors of Subsidiaries 31 25 27 27 33 31 32 26 25 24 39 31 32 Employees of Subsidiaries 677 641 719 781 1,000 1,025 1,062 685 747 814 9
Slide 22: Appendix
Appendix 22
Slide 23: Web Search Query Market in Japan
Unauthorized use is not permitted Web Search Query Market in Japan August 2008 Yahoo! JAPAN maintains the largest share of the web Yahoo! JAPAN search query market in Japan Among the 4 major search engines, the share of Yahoo! Search remains unchanged at approx. 60% from a year earlier. Google maint
Slide 24: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Government/Organizations Finance/Insurance/Securities Autos (Transport Equipment) Real Estate/Construction Fashion/Accessories Transportation/Leisure 08/2Q 3Q 4Q
Slide 25: Paid Search Advertising Sales by Industry
Paid Search Advertising Sales by Industry Industries with large quarter on quarter increase Industries with large quarter on quarter decrease Transportation/Leisure Medical, Welfare, Health and Beauty Real Estate Recruiting Services Information/Communication Retail Sales Services 08/4Q 0
Slide 26: FY2009-2Q Major Advertisers - Display Advertising
FY2009-2Q Major Advertisers - Display Advertising Autos (Transport Equipment) Beverages/Cigarettes Honda Motor Co., Ltd. Coca-Cola (Japan) Company, Limited Nissan Motor Co., Ltd. ITO EN, LTD. IK CO.,LTD. Suntory Limited Finance/Insurance/Securities Fashion/Accessories Sumitomo Mitsui Banking Corpora
Slide 27: Additional Business Data: 2009-2Q
Additional Business Data: 2009-2Q Average Daily Transaction Volume Jul.-Sept. 2008 Jul.-Sept. 2009 Commerce \100M 24.8 24.3 Auction \100M 18.7 17.6 Shopping \100M * 6.0 6.6 Yahoo! Mobile e-commerce \100M 3.6 4.0 Subscriber Lines for Yahoo! BB Services End of Sept. 2008 End of Sept. 2009 Total (10 th
Slide 28: Role of Business Groups
Role of Business Groups Media Business Group The Media Business Group plans various services used for listing advertising; collaborates with its content partners, the providers of information for its sites; and works with advertising agencies in planning and selling advertising products. Through the
Slide 29: Role of Business Groups
Role of Business Groups Business Strategy Group The Business Strategy Group is responsible for creating and implementing an overall marketing strategy for the Group that will increase the brand value of Yahoo! JAPAN and further expand the scope of the Group’s open strategy. The Business Strategy Gro
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 (308) Group (293) (1,741) 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 Overture K.K.* Firstserver, Inc. Netrust, Ltd. CREO CO., LTD. Yahoo Japan Value Seven and
Slide 32: IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 32