Drecom Co., Ltd. · TSE:3793

Drecom — Q3 FY2010 Earnings Presentation

40 slides from Drecom's earnings presentation, Feb 8, 2010

1. Slide 1: Copyright © Drecom Co., Ltd All Rights Reserved.

   2010 3 9 3 2010/2/8 Copyright © Drecom Co., Ltd All Rights Reserved.

2. Slide 2: Copyright © Drecom Co., Ltd All Rights Reserved.

   1 3 2 3 4 2 Copyright © Drecom Co., Ltd All Rights Reserved.

3. Slide 3: Q3 results summary

   1 3 2009 10- 12 1,670 1,539 598 492 162 8 79 4 mixi 10 mixi 12 i-menu 1 12 mixi PC 12 DeNA 1 4 3 Copyright © Drecom Co., Ltd All Rights Reserved.

4. Slide 4: +4 point

   1 3 2009 10-12 2008 10-12 2009 7-9 598 492 +22 % 562 +6 % 79 4 52 +52 % 13 % 9% +4 point 78 11 51 +53 % 52 162 41 +27 % 4 Copyright © Drecom Co., Ltd All Rights Reserved.

5. Slide 5: Quarterly trend

   1 3 598 700 597 581 598 600 572 567 562 529 509 479 492 500 417 400 333 300 240 200 170 101 98 80 101 75 79 100 33 28 52 0 4 25 23 100 54 134 152 200 161 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 3 2008 3 2009 3 2010 3 5 Copyright © Drecom Co., Ltd All Rights Reserved.

6. Slide 6: EBITDA

   1 EBITDA 3 EBITDA 200 150 100 50 50 140 111 96 0 106 32 143 165 24 83 50 121 63 90 118 50 100 150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 3 2008 3 2009 3 2010 3 + + 6 Copyright © Drecom Co., Ltd All Rights Reserved.

7. Slide 7: -3 point -10 point -4 point

   1 3 2009 10-12 2008 10-12 2009 7-9 158 148 +7 % 151 +5 % 27 % 30 % -3 point 27 % 79 84 -6 % 88 -10 % 79 64 +23 % 63 +25 % 360 346 +4 % 357 +1 % 60 % 70 % -10 point 64 % -4 point 51 51 54 -6 % 1 0 13 -92 % 140 136 +3 % 137 +2 % 166 158 +5 % 152 +9 % 7 Copyright © Drecom Co., Ltd All Rights Reserved.

8. Slide 8: 1Q 2Q 3Q

   1 3 27 60 500 200% 108% 100 90% 450 90 89% 400 80 70% 68% 68% 350 64% 64% 70 65% 64% 300 60% 60 57% 54% 250 51% 50 47% 48% 47% 200 42% 41% 40 37% 150 32% 31% 30% 30 29% 29% 27% 27% 100 23% 27% 20 50 10 72 153 75 158 63 196 116259 196373 219336 193 324 178 291 177 326 166368 148 347 171333 136344 151

9. Slide 9: Copyright © Drecom Co., Ltd All Rights Reserved.

   1 3 2009 12 2008 12 2009 9 1,148 1, 146 1,045 1,014 1, 267 1,008 2,162 2, 414 2,054 540 502 497 127 260 127 1,494 1, 651 1,429 63.1% 63.7 % 63.8 % 9 Copyright © Drecom Co., Ltd All Rights Reserved.

10. Slide 10: Copyright © Drecom Co., Ltd All Rights Reserved.

    1 3 2009 4-12 2008 4-12 2009 4-9 169 35 60 114 91 69 57 21 57 648 520 584 10 Copyright © Drecom Co., Ltd All Rights Reserved.

11. Slide 11: Progress against full-year forecast

    1 3 4 1 3 進捗率 200 9 4- 12 200 9 4 -20 1 0 3 1,670 2,190 76 % 162 89 182 % 158 81 195 % 54 1 ー 2009 7 22 11 Copyright © Drecom Co., Ltd All Rights Reserved.

12. Slide 12: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 12 Copyright © Drecom Co., Ltd All Rights Reserved.

13. Slide 13: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 13 Copyright © Drecom Co., Ltd All Rights Reserved.

14. Slide 14: SNS business

    2 SNS PC 0.01 0.05 /PV poncan Paypal webmoney poncan 10% 20% 0.01 0.03 /PV 10% 18% DeNA poncan DeNA 13% DeNA 26% 14 Copyright © Drecom Co., Ltd All Rights Reserved.

15. Slide 15: Platform on Platform

    2 1 mixi 2009 10 27 2010 1 27 2 Platform on Platform mixi PC poncan 3 Facebook CrowdStar 15 Copyright © Drecom Co., Ltd All Rights Reserved.

16. Slide 16: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 1 1 2010 1 27 16 Copyright © Drecom Co., Ltd All Rights Reserved.

17. Slide 17: mixi PC apps

    2 1 1 mixi PC 2009 10 2010 1 mixi 2009 12 2009 12 2010 1 2010 1 mixi 2009 11 2010 2 2010 2 mixi PC 2009 12 2010 1 2010 2 2010 2 mixi SPEED mixi PC 4BALLS mixi PC mixi PC mixi PC mixi mixi PC mixi PC mixi PC 2010 2 5 17 Copyright © Drecom Co., Ltd All Rights Reserved.

18. Slide 18: 2010 （人） 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 10 27 1,500,000 1,000,000 500,000 8 24

    2 1 1 380 2010 2 5 4 （人） 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 10 27 1,500,000 1,000,000 500,000 8 24 PC 0 8/24 31 9/07 14 21 28 10/05 12 19 26 11/2 9 16 23 30 12/7 14 21 28 1/4 11 18 25 2/1 2009 年 2010 年 18 Copyright © Drecom Co., Ltd All Rights Reserved.

19. Slide 19: mixi PC poncan

    2 2 2 mixi PC poncan paypal webmoney SNS Platform mixi 19 Copyright © Drecom Co., Ltd All Rights Reserved.

20. Slide 20: poncan

    2 2 2 poncan 20 Copyright © Drecom Co., Ltd All Rights Reserved.

21. Slide 21: CrowdStar Facebook HappyAquarium

    2 3 3 CrowdStar 2700 HappyAquarium mixi Facebook 21 Copyright © Drecom Co., Ltd All Rights Reserved.

22. Slide 22: CrowdStar Facebook

    2 3 3 CrowdStar Facebook MAU Facebook Facebook MAU: MAU: AppData http://www.appdata.com/ 2010 2 3 22 Copyright © Drecom Co., Ltd All Rights Reserved.

23. Slide 23: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 2005 2007 2007 2008 2009 23 Copyright © Drecom Co., Ltd All Rights Reserved.

24. Slide 24: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 24 Copyright © Drecom Co., Ltd All Rights Reserved.

25. Slide 25: Copyright © Drecom Co., Ltd All Rights Reserved.

    3 25 Copyright © Drecom Co., Ltd All Rights Reserved.

26. Slide 26: Copyright © Drecom Co., Ltd All Rights Reserved.

    3 26 Copyright © Drecom Co., Ltd All Rights Reserved.

27. Slide 27: WS BS

    3 WS 66 BS 34 WS BS WS BS 400 381 395 336 346 333 300 310 299 300 279 264 271 271 257 250 242 233 208 193 203 200 185 181 163 107 100 71 63 70 74 50 46 38 38 31 36 29 14 6 6 0 △6 △37 △33 △41 △64 △59 △100 △190 △200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 3 2009 3 2010 3 27 Copyright © Drecom Co., Ltd A

28. Slide 28: 1Q 2Q 3Q

    3 700 600 204 188 193 200 204 210 197 500 188 198 200 198 (38.8%) 20 400 184 1 88 109 16 20 31 7 1 64 107 25 24 14 0 27 0 10 8 55 33 41 7 71 89 300 34 36 0 32 13 0 0 17 5 11 1 56 0 19 35 8 13 129 165 56 200 19 49 164 132 135 70 89 82 133 79 100 121 66 175 171 133 92 131 113 138 91 113 147 0 1Q 2Q 3Q

29. Slide 29: CrowdStar Facebook mixi

    3 CrowdStar Facebook mixi 380 2010 1 27 i-menu 1 29 Copyright © Drecom Co., Ltd All Rights Reserved.

30. Slide 30: ARPU

    3 ARPU ARPU ARPU ARPU 400,000 290 350,000 280 300,000 270 250,000 260 200,000 250 150,000 240 100,000 230 50,000 220 0 210 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2008 3 2009 3 2010 3 30 Copyright © Drecom Co., Ltd All Rights Reserved.

31. Slide 31: poncan mixi PC

    3 poncan mixi PC 2009 10 26 ASP 31 Copyright © Drecom Co., Ltd All Rights Reserved.

32. Slide 32: ad4U

    3 ad4U （万インプレッション） ad4U 配信在庫数 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2009 3 2010 3 32 Copyright © Drecom Co., Ltd All Rights Reserved.

33. Slide 33: poncan ad4U

    3 2010 1 27 1 poncan ad4U 33 Copyright © Drecom Co., Ltd All Rights Reserved.

34. Slide 34: Copyright © Drecom Co., Ltd All Rights Reserved.

    4 34 Copyright © Drecom Co., Ltd All Rights Reserved.

35. Slide 35: mixi PC mixi

    4 1. 3. mixi PC mixi 2. Paypal,webmoney 35 Copyright © Drecom Co., Ltd All Rights Reserved.

36. Slide 36: CTR

    4 100 1 218 2 144 100 1 160 2 141 1 2 CTR 100 36 Copyright © Drecom Co., Ltd All Rights Reserved.

37. Slide 37: docomo au Softbank

    4 50 docomo au Softbank J-KEN J J + J J J - J J J J SUPER SOUND J J Music J Music QUAKE call softbank 2009 12 1 QUAKE LOVER QUAKE LOVER FULL OK 980 @ i-menu 1 2010 2 5 DLE I LOVE TV 2009 12 37 Copyright © Drecom Co., Ltd All Rights Reserved.

38. Slide 38: Facebook CrowdStar SoftBank

    4 2010 3 3 12 15 Facebook CrowdStar 2010/3 12 4 2010/2 SoftBank DJ 2010/1 2009/12 2009/11 2009/10 2009/9 2009/8 2009/7 10 29 2009/6 2009/5 10 27 mixi 4 2009/4 10 26 10 26 10 26 10 1 CMS 38 Copyright © Drecom Co., Ltd All Rights Reserved.

39. Slide 39: mixi ID

    4 mixi ID for mixi for mixi for 1000 1 4 poncan 39 Copyright © Drecom Co., Ltd All Rights Reserved.

40. Slide 40: Drecom

    Drecom 40 Copyright © Drecom Co., Ltd All Rights Reserved.

Drecom — Q3 FY2010 Earnings Presentation on 6ix