Drecom Co., Ltd. · TSE:3793

Drecom — FY2010 Earnings Presentation

38 slides from Drecom's earnings presentation, May 14, 2010

1. Slide 1: FY March 2010 Earnings Presentation

   2010 3 9 2010/5/14 Copyright © Drecom Co., Ltd All Rights Reserved.

2. Slide 2: Agenda

   1 P3 2 P11 3 2011 3 P15 4 P21 2 Copyright © Drecom Co., Ltd All Rights Reserved.

3. Slide 3: Results highlights

   1 4 4 695 581 +20 47 75 37 2,366 2,121 +12 210 85 +147 1 27 4 19 100 2010 2 3 Copyright © Drecom Co., Ltd All Rights Reserved.

4. Slide 4: Income statement summary

   1 4 2010 1-3 2009 1-3 2009 10-12 695 581 +20 % 598 +16 % 47 75 37 % 79 41 % 46 72 36 % 78 41 % 47 236 52 10 % 4 Copyright © Drecom Co., Ltd All Rights Reserved.

5. Slide 5: Quarterly operating profit trend

   1 800 695 700 597 581 598 600 572 567 562 529 509 479 492 500 417 400 333 300 240 200 170 101 98 80 101 75 79 100 33 28 52 47 0 ▲4 100 ▲54 ▲25 ▲23 200 ▲161 ▲134 ▲152 300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2007 3 2008 3 2009 3 2010 3 5 Copyright © Drecom Co., Ltd All Rights Reserved.

6. Slide 6: EBITDA trend

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

7. Slide 7: Quarterly revenue and ratios

   1 28 65 500 200% 108% 100 90% 450 90 89% 400 80 68% 70% 68% 350 64% 70 64% 65% 64% 65% 300 60 60% 57% 250 54% 50 51% 47% 48% 47% 200 42% 41% 40 37% 150 32% 31% 30 29% 30% 29% 28% 27% 27% 27% 100 23% 20 50 10 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 0 72 75 63 116 196 219 193 178 177 166 148

8. Slide 8: Results by segment, Jan-Mar 2010

   1 4 2010 1-3 2009 1-3 2009 10-12 197 171 +15 % 158 +25 % 84 91 8% 79 +6 % 113 80 +41 % 79 +43 % 450 332 +39 % 360 +25 % 81 36 +125 % 51 +59 % 6 0 1 ー 149 135 +10 % 140 +6 % 213 160 +33 % 166 +28 % 8 Copyright © Drecom Co., Ltd All Rights Reserved.

9. Slide 9: Balance sheet

   1 2010 3 2009 3 前年同期比 2009 12 前四半期比 1,204 1,151 +5 1,148 +5 1,015 1,024 1 1,014 0 2,219 2,175 +2 2,162 +3 599 561 +7 540 +11 61 193 68 127 52 660 755 13 668 1 1,559 1,419 +10 1,494 +4 2010 3 2009 3 2009 12 63.6 59.8 6 3.1 9 Copyright © Drecom Co., Ltd All Rights Reserved.

10. Slide 10: Cash flow

    1 2009 4-2010 3 2008 4-2009 3 2009 4-12 230 31 169 133 39 114 123 44 57 624 651 648 10 Copyright © Drecom Co., Ltd All Rights Reserved.

11. Slide 11: Copyright © Drecom Co., Ltd All Rights Reserved.

    2 11 Copyright © Drecom Co., Ltd All Rights Reserved.

12. Slide 12: Platform on Platform

    2 1 2010 4 16 mixi 2010 4 19 100 2 Platform on Platform poncan 3 Facebook 1 Facebook 1 12 Copyright © Drecom Co., Ltd All Rights Reserved.

13. Slide 13: mixi application initiatives

    2 mixi mixi 255 5 10 42 5 10 mixi 100 62 5 10 4 19 2009 8 mixi PC 2009 10 mixi PC 2009 12 mixi PC 1 2010 2 3 2009 10 mixi 2010 1 2010 1 2010 2 2009 12 2010 2 2010 4 mixi 2 2010 5 1 Facebook HappyAquarium CrowdStar mixi 2 HappyAquarium CrowdStar 3 ++ 13 Copyright © Drecom Co., Ltd All Rights Reserved

14. Slide 14: mixi user trends

    2 500 2010 5 10 （人） 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 mixi 1,000,000 mixi PC 0 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 1 8 15 22 29 5 12 19 26 3 10 8 9 10 11 12 1 2 3 4 5 5 10 mixi PC SPEED 4balls mixi 5 31 14 Copyright © Drecom Co., Ltd All Rights Re

15. Slide 15: FY2011 outlook

    3 2011 3 15 Copyright © Drecom Co., Ltd All Rights Reserved.

16. Slide 16: Growth plan for FY2011

    3 2011 3 2011 3 1st S 2010 C A S 3 C A 2nd S 2009 2010 C A 3rd S 2010 2011 C A 16 Copyright © Drecom Co., Ltd All Rights Reserved.

17. Slide 17: mixi, GREE, DeNA market landscape

    3 2011 3 1. 2 mixi GREE DeNA Yahoo 2. mixi 800 2011 3 mixi http://mixiapplication.com/ranking/ 17 Copyright © Drecom Co., Ltd All Rights Reserved.

18. Slide 18: DRECOM Labs

    3 2011 3 PL DRECOM Labs 2011 18 Copyright © Drecom Co., Ltd All Rights Reserved.

19. Slide 19: mixi and poncan

    3 2011 3 mixi poncan 19 Copyright © Drecom Co., Ltd All Rights Reserved.

20. Slide 20: FY2011 forecast

    3 2011 3 3,760 2,366 +59 1,590 1,072 +48 290 210 +38 30 82 280 205 +37 30 79 200 101 +98 60 1 3,150 1,608 +96 230 67 +243 220 69 +219 180 252 29 Facebook 20 Copyright © Drecom Co., Ltd All Rights Reserved.

21. Slide 21: Copyright © Drecom Co., Ltd All Rights Reserved.

    4 21 Copyright © Drecom Co., Ltd All Rights Reserved.

22. Slide 22: Business overview

    4 各事業の概況 3 3 85% MCF 2008 2 100 poncan PKG 3 22 Copyright © Drecom Co., Ltd All Rights Reserved.

23. Slide 23: Business overview

    4 各事業の概況 23 Copyright © Drecom Co., Ltd All Rights Reserved.

24. Slide 24: Quarterly revenue by business

    4 各事業の概況 800 700 189 600 204 188 193 200 204 210 198 197 (38.8%) 198 133 500 188 200 20 16 1 31 400 184 88 109 7 20 1 64 64 25 24 14 0 107 41 0 27 165 33 7 71 10 8 39 300 13 0 0 36 89 0 32 129 164 5 34 66 0 11 135 1 17 56 13 19 132 8 56 35 59 200 19 133 49 70 121 89 82 175 171 79 169 133 131 138 147

25. Slide 25: ARPU trend

    4 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 1 2 3 2008 3 2009 3 2010 3 25 Copyright © Drecom Co., Ltd All Rights Reserved.

26. Slide 26: ad4U ad inventory

    4 ad4U （万インプレッション） ad4U 配信在庫数 50,000 45,000 40,000 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 1 2 3 2008 2009 2010 2009 3 2010 3 26 Copyright © Drecom Co., Ltd All Rights Reserved.

27. Slide 27: Copyright © Drecom Co., Ltd All Rights Reserved.

    5 27 Copyright © Drecom Co., Ltd All Rights Reserved.

28. Slide 28: mixi and J-KEN SoftBank

    5 2010/4 2010/3 2010/2 2010/1 2009/12 2009/11 2009/10 2009/9 2009/8 2009/7 2009/6 4 19 2009/5 100 2009/4 4 16 mixi 4 15 3 1 J-KEN SoftBank 1 27 3 28 Copyright © Drecom Co., Ltd All Rights Reserved.

29. Slide 29: Company history

    5 2005 2007 2007 2008 2009 29 Copyright © Drecom Co., Ltd All Rights Reserved.

30. Slide 30: Copyright © Drecom Co., Ltd All Rights Reserved.

    5 30 Copyright © Drecom Co., Ltd All Rights Reserved.

31. Slide 31: Copyright © Drecom Co., Ltd All Rights Reserved.

    5 31 Copyright © Drecom Co., Ltd All Rights Reserved.

32. Slide 32: SNS advertising and payment fees

    5 SNS 3 0.01 0.05 /PV PC poncan Paypal webmoney 10% 20% 0.01 0.03 /PV 10% 18% DeNA poncan 13% DeNA DeNA 26% 32 Copyright © Drecom Co., Ltd All Rights Reserved.

33. Slide 33: poncan

    5 poncan poncan 33 Copyright © Drecom Co., Ltd All Rights Reserved.

34. Slide 34: poncan

    5 poncan Social Game Platform On Platform SNS Platform SNS Platform mixi 34 Copyright © Drecom Co., Ltd All Rights Reserved.

35. Slide 35: CrowdStar

    5 CrowdStar Facebook appdata.com 2010/5/10 HaapyAquarium mixi PC 35 Copyright © Drecom Co., Ltd All Rights Reserved.

36. Slide 36: CTR

    5 100 1 218 2 144 100 1 160 2 141 1 2 CTR 100 36 Copyright © Drecom Co., Ltd All Rights Reserved.

37. Slide 37: Mobile content for docomo, au, Softbank

    5 docomo au Softbank J-KEN softbank 2010 3 1 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 @ DLE I LOVE TV 2010 4 22 51 37 Copyright © Drecom Co., Ltd All Rights Reserved.

38. Slide 38: Drecom

    Drecom 38 Copyright © Drecom Co., Ltd All Rights Reserved.

Drecom — FY2010 Earnings Presentation on 6ix