Slide 1: FY2009-4Q & Annual Results
Yahoo Japan Corporation FY2009-4Q & Annual Results (Jan.-Mar. 2010 / Apr. 2009-Mar. 2010) April 27, 2010 1
Slide 2: Forward-looking statements
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 Highlights – Financial Data
FY2009 Highlights – Financial Data The economic slowdown had a strong impact in the first half, but performance made a sharp recovery in the second half, particularly in the advertising business. Sales and profits grew for the 13th consecutive year. (¥100M) YOY FY2009 FY2008 Change Revenue 2,798 2,6
Slide 4: FY2009 Highlights – Business Segments
FY2009 Highlights – Business Segments Advertising Although paid search advertising revenues struggled until the third quarter, they ended the year up compared with a year earlier because of increases in advertising purchased online and in advertising by information/communications related and retail/
Slide 5: FY2009-4Q Highlights – Financial Data
FY2009-4Q Highlights – Financial Data Both display and listing advertising posted year on year and quarter on quarter growth, achieving record highs in sales and profit. (¥100M) YOY 2009-4Q 2008-4Q Change Revenue 732 671 9.1% Operating Income 387 355 8.9% Ordinary Income 386 350 10.4% Quarterly Net
Slide 6: FY2009-4Q Highlights – Advertising
FY2009-4Q Highlights – Advertising Listing (Pay per performance) advertising (Paid search advertising [Sponsored Search] and interest-based advertising [Interest Match] ) - Growth in paid search advertising sales was slow until the third quarter due to the impact of economic stagnation, but paid sea
Slide 7: FY2009-4Q Highlights – Business Services
FY2009-4Q Highlights – Business Services E-commerce-related revenues - Yahoo! Shopping implemented large-scale sales promotion special features, such as doing a Get More Points campaign, using TV commercials, and holding joint events in which foods or sweets becoming popular on Yahoo! Shopping coul
Slide 8: FY2009-4Q Highlights – Personal Services
FY2009-4Q Highlights – Personal Services Yahoo! Premium membership revenues - The number of Yahoo! Premium member IDs as of March 31, 2010 hit a record high of 7.59 million. Yahoo! Auctions system-use revenues - Transaction value of Yahoo! Auctions declined year on year and quarter on quarter due
Slide 9: Progress of GyaO Related Business
Progress of GyaO Related Business Expanding partner companies - In addition to Fuji Television Network, Inc. and NIPPON TELEVISION NETWORK CORPORATION, TV Asahi Corporation, DENTSU INC., TOKYO BROADCASTING SYSTEM HOLDINGS, INC., TV TOKYO Corporation and HAKUHODO DY MEDIA PARTNERS INCORPORATED becam
Slide 10: Approach for Improvement in Shareholder Value
Approach for Improvement in Shareholder Value Raised the dividend payout ratio to approx. 20% (Past: Approx. 10% of consolidated net income for the period) FY2008 FY2009 Dividend per share: ¥130 Æ ¥288 Total dividend payout: ¥7.5 billion Æ ¥16.7 billion Approx. 2.2 times compared with FY2008 Because
Slide 11: Review of FY2009-4Q Business Outlook
Review of FY2009-4Q Business Outlook A recovery trend emerged in the advertising market in the third quarter and further accelerated in the fourth quarter, particularly among major advertisers. Display and listing advertising sales both exceeded our sales forecasts. In addition to doing a variety of
Slide 12: FY2010-1Q Business Outlook
FY2010-1Q Business Outlook In view of the greater demand for advertising, we will work to achieve year on year growth in quarterly revenues, focusing particularly on advertising related sales. Although purchasing sentiment remains low, we will aim to expand transaction value of shopping related busi
Slide 13: FY2009 Financial Results
FY2009 Financial Results •Main consolidated subsidiaries at the end of FY2009 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 S
Slide 14: FY2009 Statements of Income
FY2009 Statements of Income FY2009 FY 2008 Changes Revenue (¥100M) 2,798 2,657 5.3 % Cost of Sales (¥100M) 326 278 17.4 % Gross Profit (¥100M) 2,472 2,379 3.9 % SG&A (¥100M) 1,033 1,033 0.1 % Operating Income (¥100M) 1,438 1,346 6.8 % Ordinary Income (¥100M) 1,433 1,329 7.9 % Net Income (¥100M) 835
Slide 15: Annual Net Sales
Annual Net Sales Net Revenues up 13 consecutive years since the start of services (¥ 100M) 3,000 Personal Services 2,000 Business Services 1,000 Advertising 0 FY2005 FY2006 FY2007 FY2008 FY2008 FY2009 Gross) Gross) Gross) Gross) Net) Net) Total 1,736 2,125 2,620 2,959 2,657 2,798 Notes: Commencing w
Slide 16: Annual Profit
Annual Profit Operating, Ordinary, and Net Income up 13 consecutive years since the start of services (¥ 100M) 1,500 50% 1,200 40% 900 30% 600 20% 300 10% 0 0% FY2005 FY2006 FY2007 FY2008 FY2009 Operating Income 821 1,062 1,248 1,346 1,438 Ordinary Income 798 1,028 1,215 1,329 1,433 Net Income 470 5
Slide 17: FY2009 Performance Breakdown by Business
FY2009 Performance Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Unit Profit Income Margin Media Business Group 67% Advertising 1,413 BS Business Group 31% 1,224 408 816 57.7% Consumer Business Group 2% Media Business Group 13% Business Services 64
Slide 18: Annual SG&A Breakdown
Annual SG&A Breakdown (¥ 100M) Increase/ Major factors for yoy changes FY2009 % FY2008 Decrease Changes Number of personnel Personnel Expenses 303 29.4% 260 42 16.5% 4,882 in total: +6.2% from 2009/3 Business Commissions 127 12.4% 155 -27 -17.8% Reduced outsourcing by streamlining development etc. C
Slide 19: FY2009 Balance Sheets
FY2009 Balance Sheets Major Items End of FY2009 End of FY2008 Increase/ Major Factors for (2010/3/31) (2009/3/31) Decrease Increase/Decrease (¥100M) Assets Current Assets 2,033 913 1,119 Increase due to operating activities Cash and Deposits 1,392 369 1,022 Accounts Receivable-Trade 373 348 25 Fixed
Slide 20: FY2009 Cash Flow Statements
FY2009 Cash Flow Statements FY2009 Major Items (Apr.2009 - Mar. 2010) Major Factors for Changes (¥ 100M) Operating Activities 1,400 Increase in net income before Net Income before Income Taxes 1,406 income taxes Depreciation Expenses 102 Impairment Losses 14 Amortization of Goodwill 9 Increase in Re
Slide 21: FY2009-4Q Financial Results
FY2009-4Q Financial Results •Main consolidated subsidiaries at the end of FY2009-4Q 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.
Slide 22: FY2009-4Q Statements of Income
FY2009-4Q Statements of Income 2009-4Q 2008-4Q Changes Revenue (¥100M) 732 671 9.1 % Cost of Sales (¥100M) 78 66 18.1 % Gross Profit (¥100M) 653 604 8.1 % SG&A (¥100M) 266 249 7.0 % Operating Income (¥100M) 387 355 8.9 % Ordinary Income (¥100M) 386 350 10.4 % Quarterly Net Income (¥100M) 233 186 25.
Slide 23: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 Personal Services Business 400 Services 200 Adver- tising 0 Gross Net 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 10-12 10/1-3 Total 575 566 610 700 742 655 660 669 671 676 680 709 732 23 • Figures of 08/1-3 and before are indicated o
Slide 24: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 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 10-12 10/1-3 Operating Income 295 296 300 312 337 328 330 331 355 342 344 364 387 Ordinary Income 284 285 293 308 328 324 326 328 350 340 341 364 386 Operating Margin 51% 52%
Slide 25: FY2009-4Q Performance Breakdown by Business
FY2009-4Q Performance Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Business Group 68 Advertising 386 BS Business Group 30 343 105 237 61.4% Consumer Business Group 2 Media Business Group 12 Business Services 162 BS
Slide 26: Quarterly SG&A Breakdown
Quarterly SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 09/4Q % 09/3Q Change 08/4Q Change Number of personnel Personnel Expenses 78 29.3% 77 0.3% 65 19.6% 4,882 in total +6.2% from 2009/3 Business Commissions 32 12.0% 32 0.1% 32 -1.0% Depreciation Expenses 23 8.8% 22 4.1% 30 -23.0% D
Slide 27: FY2009-4Q Balance Sheets
FY2009-4Q Balance Sheets Increase/ Major Factors for Major Items 2010/3/31 2009/12/31 (¥ 100M) Decrease Increase/Decrease Assets Current Assets 2,033 1,623 410 Increase due to operating activities Cash and Deposits 1,392 993 399 Accounts Receivable -Trade 373 358 15 Fixed Assets 2,149 2,138 10 Tangi
Slide 28: FY2009-4Q Cash Flow Statements
FY2009-4Q Cash Flow Statements FY2009-4Q (¥ 100M) Major Items Major Factors for Changes (Jan.-Mar. 2010) Operating Activities 419 Net Income before Income Taxes 381 Increase in quarterly net income before income taxes Depreciation Expenses 26 Impairment Losses 6 Accounts Receivable/Payable-Trade -9
Slide 29: 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 07/3 6 9 12 08/3 6 9 12 09/3 6 9 12 10/3 Directors and uditors of Subsidiaries 27 27 33 31 32 26 25 24 39 31 32 30 30 Employees of Subsidiaries 719 781 1,000 1,025 1,062 685 747 814 977 1,082
Slide 30: Appendix
Appendix 30
Slide 31: Change in Business Segments (Planned)
Change in Business Segments (Planned) A change in business segments is scheduled for FY2010, in accordance with the reorganization of business units conducted in April 2009. Media Business Group BS Business Group Consumer Business Group Both current and new business segments will be disclosed for th
Slide 32: FY2009-4Q Performance Breakdown by New Business Segments
FY2009-4Q Performance Breakdown by New Business Segments (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Advertising 94% Business 282 Others 6% 248 101 146 52.0% Group Advertising 61% BS Business Group 187 Corporate Services 27% 149 57 91
Slide 33: New Business Segments Breakdown by Major Revenue Sources
New Business Segments Breakdown by Major Revenue Sources Media Business Group Advertising Display advertising (banner, text, email, and video advertising) Listing advertising (through advertising agencies) Others Yahoo! Research and others BS Business Group Advertising Listing advertising (online se
Slide 34: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Finance/Insurance/Securities Cosmetics/Toiletries Autos (Transport Equipment) Recruitment Services Mobile Communications Service Real Estate/Construction 08/4Q 09
Slide 35: Listing Advertising Sales by Industry
Listing Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Information/Communications Autos(Transport Equipment) Retail/Distribution Recruitment Services Transportation/Leisure Medical, Welfare, Health and Beauty 08/4Q 09
Slide 36: FY2009-4Q Major Advertisers - Display Advertising
FY2009-4Q Major Advertisers -Display Advertising Finance/Insurance/Securities Cosmetics/Toiletries Citi Cards Japan, Inc. DHC Corporation E.design Insurance Co.,Ltd. Kao Corporation Sumitomo Mitsui Banking Corporation Shiseido Co., Ltd. Autos (Transport Equipment) Beverages/Cigarettes Honda Motor Co
Slide 37: Additional Business Data: 2009-4Q
Additional Business Data: 2009-4Q Average Daily Transaction Value Jan.-Mar. 2009 Jan.-Mar. 2010 Commerce \100M 26.0 26.0 Auction \100M 20.0 18.9 Shopping \100M * 5.9 7.0 Yahoo! Mobile e-commerce \100M 4.3 4.3 Subscriber Lines for Yahoo! BB Services End of Mar. 2009 End of Mar. 2010 Total (10 thousan
Slide 38: 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 (301) Group (282) (1,690) Division Regional Front-End Media Service EC Op
Slide 39: 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 Yahoo Japan Value Firstserver, Inc. Netrust, Ltd. Insight Corporation CREO CO., LTD. Seven