Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q1 FY2010 Earnings Presentation
28 slides from Ly's earnings presentation, Jul 27, 2010
Slide 1: Yahoo Japan Corporation FY2010-1Q Business Results
Yahoo Japan Corporation FY2010-1Q Business Results (Apr.-Jun. 2010) July 27, 2010 1
Slide 2: Forward-looking statements notice
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: FY2010-1Q Highlights – Financial Data
FY2010-1Q Highlights – Financial Data Listing advertising, display advertising, information listing and Yahoo! Shopping-related revenue increased, and more efficient business management was continued for cost reduction. Consequently, operating income and ordinary income increased about 10% and quart
Slide 4: FY2010-1Q Highlights – Media Business
FY2010-1Q Highlights – Media Business Listing advertising through advertising agencies (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Year-on-year listing advertising revenue increased. - Advertising from major advertisers sharply increased year on ye
Slide 5: FY2010-1Q Highlights – BS Business
FY2010-1Q Highlights – BS Business Listing advertising through online order (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - The number of active accounts both on PC and mobile phone platforms increased. Along with increased market penetration among adv
Slide 6: FY2010-1Q Highlights – Consumer Business
FY2010-1Q Highlights – Consumer Business E-Commerce related revenues (Yahoo! Auctions and Yahoo! Shopping - Continuing from the previous quarter, Yahoo! Shopping implemented large-scale sales promotion special features, such as a Get More Points campaign. Consequently, quarterly transaction value in
Slide 7: Internet Research Business Strategy
Internet Research Business Strategy Internet research has grown into the most popular form of market research in Japan. At the same time, competition in the market is fierce in terms of services and price. Aiming to further boost competitiveness and growth rate, the Company has decided to transfer t
Slide 8: Assessment and Ruling Notice Related to Merger with SOFTBANK IDC Solutions
Regarding the Assessment and Ruling Notice Received Related to the Merger with SOFTBANK IDC Solutions Corp. Details of the Notice Received from the Taxation Bureau The taxation bureau has deemed that the tax treatment of the losses carried forward of SOFTBANK IDC Solutions Corp (IDC) that the Compan
Slide 9: Review of FY2010-1Q Business Outlook
Review of FY2010-1Q Business Outlook Listing advertising, display advertising, and information listing and Yahoo! Shopping-related sales increased year on year. Despite running aggressive point campaigns, TV commercials, sales promotions and advertising, our efforts to curtail depreciation and amort
Slide 10: FY2010-2Q Business Outlook
FY2010-2Q Business Outlook Focusing mainly on advertising-related sales, we will strive to post year-on-year growth in quarterly sales. With Interest Match in particular, we will aim to achieve further sales growth while continuing with measures to increase quality of advertising. In shopping-relate
Slide 11: FY2010-1Q Financial Results
FY2010-1Q Financial Results •Consolidated subsidiaries at the end of FY2010-1Q Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s Insurance Inc. Y’s
Slide 12: FY2010-1Q Statements of Income
FY2010-1Q Statements of Income 2010-1Q 2009-1Q Changes Revenue (¥100M) 705 676 4.2 % Cost of Sales (¥100M) 76 78 -3.1 % Gross Profit (¥100M) 628 597 5.2 % SG&A (¥100M) 252 255 -0.9 % Operating Income (¥100M) 376 342 9.8 % Ordinary Income (¥100M) 375 340 10.2 % Quarterly Net Income (¥100M) 216 192 12
Slide 13: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 Consumer Business BS 400 Business 200 Media Business 0 Gross Net 07/4-6 7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 Total 566 610 700 742 655 660 669 671 676 680 709 732 705 *Figures of 08/1-3 and before are indicated on a gross
Slide 14: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 07/4-6 7-9 10-12 08/1-3 4-6 7-9 10-12 09/1-3 4-6 7-9 10-12 10/1-3 4-6 Operating Income 296 300 312 337 328 330 331 355 342 344 364 387 376 Ordinary Income 285 293 308 328 324 326 328 350 340 341 364 386 375 Operating Margin 52% 49%
Slide 15: FY2010-1Q Performance Breakdown by Business
FY2010-1Q Performance Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Ordinary Operating Ordinary Revenue SG&A by Business Group Profit Income Income Margin Margin Media Advertising 93% Business 256 Others 7% 223 92 130 131 51.1% 51.3% Advertising 62% BS Corporate Services 26% Busines
Slide 16: Quarterly SG&A Breakdown
Quarterly SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 10/1Q % 09/4Q Change 09/1Q Change Personnel Expenses 79 31.6% 78 2.1% 72 9.6% Increase in payment of bonus and overtime allowance. Business Commissions 32 12.8% 32 0.8% 32 -0.3% Number of personnel 4,981 in total +0.7% from 2009
Slide 17: FY2010-1Q Balance Sheets
FY2010-1Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2010/6/30 2009/6/30 Decrease Increase/Decrease Assets Current Assets 1,879 1,056 823 Reports account receivable-other because Cash and Deposits 1,032 524 508 SOFTBANK covered the amount of additional Accounts Receivable -Trade
Slide 18: FY2010-1Q Cash Flow Statements
FY2010-1Q Cash Flow Statements FY2010-1Q (¥ 100M) Major Items Major Factors for Changes (Apr.-Jun. 2010) Operating Activities -55 Quarterly Net Income before Income Taxes 365 Increase in quarterly net income before income taxes Depreciation Expenses 22 Effect of Application of Accounting Standard fo
Slide 19: 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 07/6 9 12 08/3 6 9 12 09/3 6 9 12 10/3 6 Directors and uditors of Subsidiaries 27 33 31 32 26 25 24 39 31 32 30 30 24 Employees of Subsidiaries 781 1,000 1,025 1,062 685 747 814 977 1,082 1,2
Slide 20: Appendix
Appendix 20
Slide 21: Listing Advertising Sales by Industry
Listing Advertising Sales by Industry Industries with large year on year increase Industries with large quarter on quarter increase Finance/Insurance/Securities Department Stores/Mail Order/Shopping Malls Department Stores/Mail Order/Shopping Malls Cosmetics/Toiletries/Health Foods and appli
Slide 22: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Autos (Transport Equipment) Cosmetics/Toiletries Finance/Insurance/Securities Beverage/Cigarettes Internet Information Site/Email service Mobile Communications Se
Slide 23: Major Advertisers (Display Advertising)
FY2010-1Q Major Advertisers (Display Advertising) Finance/Insurance/Securities Beverages/Cigarettes American Life Insurance Company ASAHI BREWERIES, LTD. Citi Cards Japan, Inc. Coca-Cola (Japan) Company, Limited ORIX Credit Corporation Suntory Holdings Limited Autos (Transport Equipment) Foodstuffs
Slide 24: Additional Business Data: 2010-1Q
Additional Business Data: 2010-1Q Average Daily Transaction Value Apr.-Jun. 2009 Apr.-Jun. 2010 Commerce \100M 25.5 25.4 Auction \100M 19.1 18.1 Shopping \100M * 6.3 7.2 Through Mobile \100M 4.0 4.2 Subscriber Lines for Yahoo! BB Services End of Jun. 2009 End of Jun. 2010 Total (10 thousand lines) 4
Slide 25: 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 (486) Group (305) Group (287) (1,674) Division Regional Front-End Media Service EC Op
Slide 26: Yahoo! JAPAN Group Companies
Yahoo! JAPAN 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 Yahoo Japan Value Firstserver, Inc. Netrust, Ltd. Insight Corporation CREO CO., LTD. Seven Net
Slide 27: Old & New Business Segments Breakdown Comparison Table
Old & New Business Segments Breakdown Comparison Table --Former Main Components-- --New Main Components-- Advertising Media Business Media Business Advertising Display advertising (banner, text, email, and video advertising) Display advertising (banner, text, email, and video advertising) Listing ad
Slide 28: IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 28