Drecom Co., Ltd. · TSE:3793

Drecom — Q1 FY2010 Earnings Presentation

43 slides from Drecom's earnings presentation, Aug 6, 2009

1. Slide 1: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

   2010 3 9 2009/8/6 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

2. Slide 2: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 1 2 3 4 5 6 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 2

3. Slide 3: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

   1 1 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 3

4. Slide 4: Q1 results overview

   1 1 2009 4 -6 509 479 28 23 ※参考 平成 21 年 7 月 22 日付「業績予想の修正に関するお知らせ」 mixi 3 ad4U Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 4

5. Slide 5: Quarterly trend

   1 1 509 28 700 597 572 581 600 567 529 509 479 492 500 417 400 333 300 240 200 170 101 98 80 101 75 100 33 28 0 4 25 23 54 100 134 152 161 200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 3 2008 3 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 5

6. Slide 6: EBITDA trend

   1 EBITDA 1 EBITDA 63 EBITDA 200 150 100 50 50 140 111 96 0 106 32 143 165 24 83 50 121 63 50 100 150 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 3 2008 3 2009 3 2010 3 + + Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 6

7. Slide 7: 1Q 2Q 3Q

   1 1 136 27 344 68 500 200% 108% 100 90% 450 90 89% 400 80 68% 70% 68% 350 64% 64% 65% 70 57% 300 54% 60 51% 250 50 47% 48% 47% 200 42% 41% 40 37% 150 32% 31% 30 29% 30% 29% 27% 100 23% 20 50 10 72 153 75 158 63 196 116 259 196 373 219 336 193 324 178 291 177 326 166 368 148 346 171 333 136 344 0 1Q

8. Slide 8: 1Q 2Q 3Q

   1 1 242 250 239 13 13 17 20 205 122 194 189 189 12 200 113 12 185 182 185 12 16 16 16 23 16 32 22 23 19 26 27 150 133 140 84 57 10 75 71 68 10 62 67 11 8 104 62 94 7 55 100 7 7 104 5 34 96 27 87 78 79 86 75 76 75 50 55 56 60 57 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2007 3 2008 3 2009 3 2010 3 201

9. Slide 9: Income statement

   1 1 2009 4- 6 2008 4月-6 2008 4 -2009年3 509 479 2,121 136 177 664 26.9% 36.9 % 31.7% 372 302 1,457 344 326 1,371 67.5% 68.0 % 64.7 % 28 23 85 27 31 61 40 72 492 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 9

10. Slide 10: Balance sheet

    1 1 2009 6 200 9 3 2008 6 1,020 1,151 1,231 996 1,024 1,577 2,017 2,175 2,808 475 561 685 160 193 293 1,381 1,419 1,830 62.7% 59.8 % 61.3% Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 10

11. Slide 11: Cash flow

    1 1 2009 4 -6 2008 4- 6 2008 4 -2009 3 1 25 31 19 41 39 30 239 44 602 798 651 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 11

12. Slide 12: mixi

    1 1 mixi 2 2009 4 9 1,020 50 55 59 1,020 14 11 58 64 66 1 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 12

13. Slide 13: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 13

14. Slide 14: Business history and domains

    2 2010 3 Entertainment Net Marketing 00/06 J 05/01 07/03 docomo Entertainment 03/05 KDDI 05/03 docomo 07/04 05/04 SoftBank 07/09 KDDI 08/03 SoftBank Entertainment Web Service *3 *5 *6 Communication 02/04 04/03 MyClip 06/08 MONO+List 領域 03/07 04/10 07/07 Buco 03/12 *4 05/12 RSS *3 Internet *4 *5 *6 S

15. Slide 15: Business domains

    2 Entertainment Web Service Internet Marketing Solution 領域 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 15

16. Slide 16: Market environment

    2 ２００６年 ２００９年 1,633 ※ 464 ※ 869 ※ 2,996 2008 3 25 8 Entertainment領域 Communication領域 Entertainment領域 52 2008 2009 7 17 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 16

17. Slide 17: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    2 ～２００５年 ２００６年 ２００７年 ２００８年 ２００９年 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 17

18. Slide 18: Market size by domain

    2 ２００６年 ２００９年 4 2,136 1 680 2 134 1 40 3 3450 6,440 2008 3 6 Netmarketing領域 Communication領域 Entertainment領域 1.6 2008 1 2009 : 2008 PC 2 2009 : http://www.seedplanning.co.jp/press/2009/0127.html 3 2009 : 4 2010 : Dip Report http://www.dip-net.co.jp/pdf/trend/131F2C3_299A0.html Copyright © 2001-2009 D

19. Slide 19: ad4U, CMS, EX and mixi

    2 ～２００５年 ２００６年 ２００７年 ２００８年 ２００９年 ad4U CMS EX mixi Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 19

20. Slide 20: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 20

21. Slide 21: CTR

    3 5 27 1 CTR 6.5 50 1.6 2008 CTR 5 UGC Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 21

22. Slide 22: References

    3 6 17 5 915 4 498 3 8 5 4 18 1 28 32 34 2 1 CNET Japan 2009 6 17 http://v.japan.cnet.com/news/article/story/0,2000067548,20395159,00.htm 2 INTERNETWatch2009 6 17 http://internet.watch.impress.co.jp/docs/news/20090617_294488.html Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entert

23. Slide 23: poncan

    3 7 13 poncan mixi SNS F1 GP GAME SNS F1 GP GAME 残りポイント ５ 今すぐ資料請求 50point Clic！ 今すぐ申込み 150point SNS F1 GP GAME SNS F1 GP GAME 残りポイント ５５ 資料請求 Clic！ (http://jp.techcrunch.com/archives/20080825can-you-guess-which-facebook-app-is-making-a-million-dollars-a-month-i-can/) Copyright © 2001-2009 Drecom Co.,

24. Slide 24: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 24

25. Slide 25: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 25

26. Slide 26: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 5 44 91 (17.8%) 56 198 2010 3 (38.8%) 74 1 (14.5%) 509 49 (9.6%) 89 81 (17.5%) Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 26

27. Slide 27: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    4 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 27

28. Slide 28: ARPU

    4 33 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 2007 2008 2009 2008 3 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 28

29. Slide 29: poncan ad4U

    4 poncan 6 ad4U 7 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 29

30. Slide 30: ad4U ad inventory

    4 ad4U 4 5 6 （万インプレッション） ad4U 配信在庫数 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 7 8 9 10 11 12 2009 1 2 3 4 5 6 2009 3 2010 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 30

31. Slide 31: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    5 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 31

32. Slide 32: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    5 ～２００５年 ２００６年 ２００７年 ２００８年 ２００９年 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 32

33. Slide 33: SNS SNS

    5 SNS 7,134 SNS 21 7 13 SNS Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 33

34. Slide 34: SNS and Facebook apps

    5 4 SNS FaceBook 2 FaceBook 500 1 1 FaceBook 1 5 1 5 SNS SNS SNS mixi 2 2 2 1 jp http://www.socialapplication.jp/2009/05/mixi/155/ 2 http://eir.eol.co.jp/EIR/View.aspx?template=announcement&sid=3732&code=2121 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 34

35. Slide 35: Facebook FarmVille

    5 1 2008 5000 2009 2 5000 FARM ViLLE Facebook 1,600 FaceBook アプリランキング第1位（2009年8月3付） 2 3 1 http://zen.seesaa.net/article/120044183.html 2 Zinga http://www.zynga.com/games/index.php?game=farmville 3 InsaideSocialGames.com http://www.insidesocialgames.com/ Copyright © 2001-2009 Drecom Co., Ltd All Righ

36. Slide 36: mixi

    5 mixi SNS mixi 2009 8 9 livedoor 2008 11 27 (http://news.livedoor.com/article/detail/3917254/) CNET Japan 2009 6 11 (http://japan.cnet.com/news/media/story/0,2000056023,20384279,00.htm) Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 36

37. Slide 37: SNS

    5 5 SNS Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 37

38. Slide 38: Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment

    6 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 38

39. Slide 39: Topics

    6 2010 3 1 トピックス 5 27 5 20 5 13 2010/3 I LOVE TV DLE SoftBank ! 2010/2 5 1 CMS 2010/1 2009/12 2009/11 2009/10 2009/9 2009/8 2009/7 2009/6 6 17 2009/5 mixi 5 2009/4 4 17 4 13 3 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 39

40. Slide 40: docomo au Softbank mobile content

    6 52 docomo au Softbank J-KEN J J + J J J - J J J J SUPER SOUND J J Music J Music QUAKE call QUAKE LOVER QUAKE LOVER FULL OK 980 softbank 7/1 au 7/2 softbank 7/1 au 7/2 @ docomo 3 7/27 DLE au 1/22 I LOVE TV docomo 1/19 , au 1/22 2009 6 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with

41. Slide 41: http://flash.mmelo.jp DLE http://seleho.jp

    5 http://flash.mmelo.jp http://seleho.jp Flash 3 Flash Flash 100 DLE http://kisekae-dle.jp I LOVE TV http://kisekae-tv.jp/ DLE VMO VERBAL/MASATO OCHI http://u-colle.jp/ http://pic2.jp/ 8 3 UGC 500 Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 41

42. Slide 42: mixi apps

    6 http://platform001.mixi.jp/view_appli.pl?id=2582 http://platform001.mixi.jp/view_appli.pl?id=3299 SPEED http://platform001.mixi.jp/view_appli.pl?id=2981 http://platform001.mixi.jp/view_appli.pl?id=2980 4 http://platform001.mixi.jp/view_appli.pl?id=3035 Copyright © 2001-2009 Drecom Co., Ltd All Rig

43. Slide 43: Drecom

    Drecom Copyright © 2001-2009 Drecom Co., Ltd All Rights Reserved. with entertainment 43

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