Slide 1: FY2008-4Q & Annual Results
Yahoo Japan Corporation FY2008-4Q & Annual Results (Jan.-Mar. 2009 / Apr.2008-Mar.2009) April 28, 2009 1
Slide 2: Forward-looking statements and revenue presentation basis
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: FY2008 Highlights – Financial Data
FY2008 Highlights – Financial Data FY2008 revenue amounted to ¥265.7 billion.* Operating income was ¥134.6 billion, increasing 7.9% from a year earlier. Ordinary income totaled ¥132.9 billion, rising 9.4% over the last fiscal year. Net income climbed to ¥74.7 billion, advancing 19.3% year on year. (
Slide 4: FY2008-4Q Highlights – Financial Data
FY2008-4Q Highlights – Financial Data Fourth quarter revenue amounted to ¥67.1 billion.* Operating income was ¥35.5billion, increasing 5.3% from a year earlier. Ordinary income totaled ¥35.0 billion, rising 6.7% over the same period last year. Net income climbed to ¥18.6 billion, advancing 15.5% yea
Slide 5: FY2008-4Q Highlights – Advertising
FY2008-4Q Highlights – Advertising Display advertising (Banner advertising, etc.) - As a result of making advertising proposals that met advertisers’ needs by using the special features of Internet advertising, sales of the large size and high visual impact Brand Panel and behavioral, demographic, a
Slide 6: FY2008-4Q Highlights – Business Services
FY2008-4Q Highlights – Business Services E-commerce-related revenues (Auction Business, Shopping Business, etc.) - Yahoo! Shopping emphasized seasonal sales promotion special features and worked to improve user convenience by adding a My Page function where users can register their favorites lists
Slide 7: FY2008-4Q Highlights – Personal Services
FY2008-4Q Highlights – Personal Services Yahoo! Auctions system-use revenues (Auction Business) - Yahoo! Auctions total transaction volume in the fourth quarter decreased approximately 3.6%, to ¥180.5 billion, and system use fees revenues fell from the fourth quarter last year. Yahoo! Premium me
Slide 8: FY2008-4Q Highlights – Cost Reduction Measures
FY2008-4Q Highlights – Cost Reduction Measures Based on group-wide efforts, the Group reduced costs by ¥1.8 billion, or 6.9%, from the previous quarter. - Business commissions (down ¥550 million, or 14.7%, from third quarter) Brought development and other operations in-house. - Lease and utility exp
Slide 9: SG&A Breakdown
SG&A Breakdown (¥ 100M) Major factors for YoY changes 08/4Q 08/3Q 07/4Q (Net) (Net) (Gross) Personnel expenses 65 26.3% 68 -4.8% 62 5.0% Brought development and Business commissions 32 13.0% 37 -14.7% 41 -22.1% other operations in-house Depreciation expenses 30 12.2% 29 4.4% 28 8.0% Increase in cont
Slide 10: Review of FY2008-4Q Business Outlook
Review of FY2008-4Q Business Outlook With conditions getting even worse in the advertising market, display advertising sales declined from the previous quarter. Although paid search advertising sales fell drastically from certain industries, increased sales from online types of industries supported
Slide 11: FY2009-1Q Business Outlook
FY2009-1Q Business Outlook (Consolidated) The uncertainty in the business climate and advertising market continues. The display and paid search advertising may face tough condition also because of seasonality. The Group will endeavor to expand the revenues from e-commerce royalty fees and Yahoo! Pre
Slide 12: Acquisition of Shares and Merger in SOFTBANK IDC Solutions Corp.
Acquisition of Shares and Merger in SOFTBANK IDC Solutions Corp. Purchased 100% of the outstanding shares of SOFTBANK IDC Solutions Corp. Executed an absorption merger on March 30, 2009. * Marketing company IDC Frontier Inc., remains as a subsidiary. Purchase Price: ¥45 billion * Includes ¥22 billio
Slide 13: Acquisition of Shares in GyaO CORPORATION
Acquisition of Shares in GyaO CORPORATION Decided to purchase 51% of the outstanding shares of GyaO CORPORATION from USEN CORPORATION and to make it a subsidiary. Purchase price: approx. ¥530 million (Purchase date: April 30, 2009) Integrate two video streaming services “Yahoo! Streaming” and “GyaO”
Slide 14: Return to Shareholders
Return to Shareholders 1. Acquisition of own shares In order to return profits to shareholders, we implemented the acquisition of shares for the second time. We cancelled the purchased shares at the end of March. Acquisition Date: March 18, 2009 Number of Shares Acquired 1,185,000 shares 2.0% of the
Slide 15: Organizational Changes
Organizational Changes In order to achieve further growth as IT company, made organizational changes. Integrated the service planning and sales organizations into business groups. - Media Business Group - BS Business Group - Consumer Business Group We brought our engineering, editing and production
Slide 16: Service Components of Each Group
Service Components of Each Group Media Business Group Paid search via agencies / Display advertising Research / Real estate new apartments , etc. BS Business Group Paid search via online Real estate excl. new apartments / Web hosting / Recruiting Business Express / Map / Auto / Travel Gourmet, etc.
Slide 17: Organization
Y? Organization had ¢ l ‘YAHOO !
Slide 18: FY2008 Financial Results (Consolidated)
FY2008 Financial Results (Consolidated) •Main consolidated subsidiaries at the end of FY2008 Firstserver, Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Overture K.K. SOFTBANK IDC Corp. * Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s Insuran
Slide 19: FY2008 Statements of Income
FY2008 Statements of Income FY 2008 FY2008 FY2007 Changes (Gross (Net basis) (Gross basis) (Gross basis) Comparison) Revenue (¥100M) 2,657 2,959 2,620 12.9 % Cost of Sales (¥100M) 278 448 282 58.7 % Gross Profit (¥100M) 2,379 2,510 2,337 7.4 % Operating Income (¥100M) 1,346 1,346 1,248 7.9 % Ordinar
Slide 20: Annual Net Sales
Annual Net Sales Net Sales up 12 consecutive years since the start of services (¥ 100M) 3,000 2,000 1,000 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2008 Gross) Gross) Gross) Gross) Net Gross 1,177 1,736 2,125 2,620 2,657 2,959 Notes: Figures on gross basis for FY2008 are for your reference. 20
Slide 21: Annual Profit
Annual Profit Operating, Ordinary, and Net Income up 12 consecutive years since the start of services (¥ 100M) 1,500 50% 1,200 40% 900 30% 600 20% 300 10% 0 0% FY2004 FY2005 FY2006 FY2007 FY2008 Operating Income 601 821 1,062 1,248 1,346 Ordinary Income 602 798 1,028 1,215 1,329 Net Income 365 470 5
Slide 22: FY2008 Revenue Breakdown by Business (Net basis)
FY2008 Revenue Breakdown by Business (Net basis) (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Unit Profit Income Margin Search Business & Overture K.K. 64% Media Business 10% Advertising 1,388 Service Supervising Division 9% 1,191 456 734 52.9% Auction Business 3% Soci
Slide 23: SG&A Breakdown (Annual)
SG&A Breakdown (Annual) (¥ 100M) Major factors for yoy changes Increase/ FY2008 FY2007 Decrease Changes Personnel expenses Brought development and Business commissions Other operations in-house Depreciation expenses Increase in content Communication charges distribution cost Royalties Lease and util
Slide 24: FY2008 Balance Sheets
FY2008 Balance Sheets Major Items End of FY2008 End of FY2007 Increase/ Major Factors for (¥100M) (2009/3/31) (2008/3/31) Decrease Increase/Decrease Assets Decreased from acquisition of own Current Assets stocks and subsidiary stocks, although Cash and Deposits increased by operating activities Acco
Slide 25: FY2008 Cash Flow Statements
FY2008 Cash Flow Statements FY2008 Major Items (Apr.2008 - Mar. 2009) Major Factors for Changes (¥ 100M) Operating Activities 878 Increase in net income before income Net Income before Income Taxes 1,263 taxes Depreciation Expenses 115 Amortization of Goodwill 11 Losses in Investment Securities 42 P
Slide 26: FY2008-4Q Financial Results (Consolidated)
FY2008-4Q Financial Results (Consolidated) •Main consolidated subsidiaries at the end of FY2008-4Q Firstserver, Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Overture K.K. SOFTBANK IDC Corp. * Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s I
Slide 27: FY2008-4Q Statements of Income
FY2008-4Q Statements of Income 09/1-3 09/1-3 08/1-3 Changes (Gross (Net basis) (Gross basis) (Gross basis) Comparison) Revenue (¥100M) 671 751 742 1.2 % Cost of Sales (¥100M) 66 113 110 2.7 % Gross Profit (¥100M) 604 637 631 1.0 % Operating Income (¥100M) 355 355 337 5.3 % Ordinary Income (¥100M) 35
Slide 28: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 400 200 0 Net Gross 07/ 08/ 06/1-3 4-6 7-9 10-12 4-6 7-9 10-12 09/ 09/ 1-3 1-3 4-6 7-9 10-12 4-6 7-9 10-12 1-3 1-3 470 492 512 545 575 566 610 700 742 655 660 669 671 725 733 749 751 28 • Figures on gross basis for 08/4-6 and after are for your re
Slide 29: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 06/1-3 4-6 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 Operating Income 235 239 250 276 295 296 300 312 337 328 330 331 355 Ordinary Income 229 229 247 266 284 285 293 308 328 324 326 328 350 Operating Margin 50% 49%
Slide 30: FY2008-4Q Revenue Breakdown by Business (Net basis)
FY2008-4Q Revenue Breakdown by Business (Net basis) (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Unit Profit Income Margin Search Business & Overture K.K. Service Supervising Division Advertising Media Business Auction Business Social Net Business Auction Business New
Slide 31: FY2008-4Q Balance Sheets
FY2008-4Q Balance Sheets Increase/ Major Factors for Major Items 2009/3/31 2009/12/31 (¥ 100M) Decrease Increase/Decrease Assets Current Assets Decreased from acquisition of own stocks and subsidiary stocks, although Cash and Deposits increased by operating activities Accounts Receivable -Trade Fixe
Slide 32: FY2008-4Q Cash Flow Statements
FY2008-4Q Cash Flow Statements FY2008-4Q (¥ 100M) Major Items Major Factors for Changes (Jan.-Mar. 2009) Operating Activities 367 Net Income before Income Taxes 290 Increase in quarterly net income before income taxes Depreciation Expenses 31 Evaluation loss on Investment Securities 37 Accounts Rece
Slide 33: Number of Directors and Employees
Number of Directors and Employees (Number of People) (at the End of Quarter) 4,000 3,000 2,000 1,000 0 06/3 6 9 12 07/3 6 9 12 08/3 6 9 12 09/3 Directors and uditors of Subsidiaries 33 31 31 25 27 27 33 31 32 26 25 24 39 Employees of Subsidiaries 602 676 677 641 719 781 1,000 1,025 1,062 685 747 814
Slide 34: Review of Operations by Business Unit
Review of Operations by Business Unit 34
Slide 35: Review of Operations by Business Unit (1)
FY2008-4Q Review of Operations by Business Unit (1) Search Business • Yahoo! Search: Added an input assistance function for the search window on the top page of Yahoo! JAPAN. Also added a function that displays questions and answers from Yahoo! Answers at the bottom of the search results page that h
Slide 36: Review of Operations by Business Unit (2)
FY2008-4Q Review of Operations by Business Unit (2) Member Services Business • Ran various campaigns to acquire new subscribers, including a Yahoo! BB Hikari with Flets, starting to accept subscriptions on the Yahoo! JAPAN website, a Full 10 Months of Free ADSL campaign, and extending the Maximum of
Slide 37: Review of Operations by Business Unit (3)
FY2008-4Q Review of Operations by Business Unit (3) Regional Services Business • Yahoo! Maps: Starting offering Underground City Map, a service providing the underground layouts of 49 major stations in Japan. In addition to its basic function of showing the layout and position of shops, the service
Slide 38: Review of Operations by Business Unit (4)
FY2008-4Q Review of Operations by Business Unit (4) Lifestyle Business • Based on a business alliance with YOSHIMOTO KOGYO CO., LTD., started Yahoo! Variety, a service that distributes live comedy shows and talk programs featuring entertainers. • Increased the index for Yahoo! Talent Directory to 30
Slide 39: Review of Operations by Business Unit (5)
FY2008-4Q Review of Operations by Business Unit (5) New Businesses Office • Settlement Services: In collaboration with ValueCommerce Co., Ltd., started Yahoo! PointUp Mall, a service awarding Yahoo! Points to Yahoo! Card and Yahoo! Premium members for use of non-Group affiliated sites. In addition,
Slide 40: Appendix
Appendix 40
Slide 41: Analysis of PVs of Yahoo! JAPAN
Analysis of PVs of Yahoo! JAPAN PVs of properties with high advertising media value are increasing favorably continuously. 100 300 200 50 100 0 0 2007/3 2008/3 2009/3 2007/3 2008/3 2009/3 41
Slide 42: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with high year on year growth rate Cosmetics/Toiletries Beverages/Cigarettes Beverages/Cigarettes Cosmetics/Toiletries Foodstuffs Foodstuffs 07/4Q 08/1Q 2Q 3Q 4Q Finance/Insurance/Securities 18.9
Slide 43: Major Advertisers
FY2008-4Q Major Advertisers Finance/Insurance/Securities Beverages/Cigarettes Mitsui Direct General Insurance Company, Limited Coca-Cola (Japan) Company, Limited The Bank of Tokyo-Mitsubishi UFJ, Ltd. SAPPORO BREWERIES LTD. Tokio Marine & Nichido Fire Insurance Co., Ltd. Suntory Limited Autos (Trans
Slide 44: Additional Business Data: 2008-4Q
Additional Business Data: 2008-4Q Average Daily Transaction Volume Jan.-Mar. 2008 Jan.-Mar. 2009 Commerce \100M Auction \100M Shopping* \100M Yahoo! Mobile e-commerce \100M Subscriber Lines for Yahoo! BB Services End of Mar. 2008 End of Mar. 2009 Total (thousand lines) Number of lines marketed by Ya
Slide 45: IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 45