Ly Corporation · TSE:4689
Ly — Yahoo Japan — Q1 FY2009 Earnings Presentation
27 slides from Ly's earnings presentation, Jul 28, 2009
Slide 1: FY2009-1Q Business Results
Yahoo Japan Corporation FY2009-1Q Business Results (Apr.-Jun. 2009) July 28, 2009 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: FY2009-1Q Highlights – Financial Data
FY2009-1Q Highlights – Financial Data Yahoo! JAPAN Group achieved growth from a year earlier in both revenue and profits. (¥100M) YOY 2009-1Q 2008-1Q Change Revenue Operating Income Ordinary Income Quarterly Net Income 3
Slide 4: FY2009-1Q Highlights – Advertising
FY2009-1Q Highlights – Advertising Display advertising - Decreased from a year earlier. Sectors such as Finance, Real Estate, Autos, and Recruiting were sluggish. In contrast, sectors such as Cosmetics/Toiletries and Beverage increased their spending on our display advertising. - Behavior targeting
Slide 5: FY2009-1Q Highlights – Business Services
FY2009-1Q Highlights – Business Services E-commerce-related revenues - Yahoo! Shopping :Transaction volume increased from a year earlier. - Yahoo! Auctions: Revenues increased substantially, supported by the upward revision of store royalty fees in December 2008. Data center related revenues - R
Slide 6: FY2009-1Q Highlights – Personal Services
FY2009-1Q Highlights – Personal Services Yahoo! Premium membership revenues - The number of Yahoo! Premium member IDs as of June 30, 2009 hit a record high of 7.45 million. Furthermore, revenues expanded substantially, supported by upward revision of membership fees in December 2008. Yahoo! Auct
Slide 7: Review of FY2009-1Q Business Outlook
Review of FY2009-1Q Business Outlook Amid the increasing severity of conditions in the advertising market, display advertising sales continued to decline year on year. Although online application paid search advertising expanded, advertising sales through advertising agents decreased from some indus
Slide 8: FY2009-2Q Business Outlook
FY2009-2Q Business Outlook Compared with the same period in the previous fiscal year, we expect additional revenue from contributions by newly consolidated IDC Frontier Inc. and GyaO CORPORATION, the increases in Yahoo! Premium membership fees and Yahoo! Auctions store royalties, and the expansion i
Slide 9: FY2009-1Q Financial Results
FY2009-1Q Financial Results •Main consolidated subsidiaries at the end of FY2009-1Q Firstserver, Inc. GyaO CORPORATION IDC Frontier Inc. Indival, Inc. Netrust, Ltd. NewsWatch, Inc. Overture K.K. Yahoo Japan Customer Relations Corporation Yahoo Japan Value Insight Corporation Y’s
Slide 10: FY2009-1Q Statements of Income
FY2009-1Q Statements of Income 09-1Q 08-1Q Changes Revenue (¥100M) 676 655 3.2 % Cost of Sales (¥100M) 78 69 13.3 % Gross Profit (¥100M) 597 586 2.0 % Operating Income (¥100M) 342 328 4.1 % Ordinary Income (¥100M) 340 324 5.2 % Quarterly Net Income (¥100M) 192 191 0.4 % EPS (¥) 331 317 4.3 % Number
Slide 11: Quarterly Revenue
Quarterly Revenue (¥ 100M) Gross basis Net basis 600 400 200 0 Gross Net 08/ 09/ 06/4-6 7-9 10-12 07/1-3 4-6 7-9 10-12 4-6 7-9 10-12 4-6 1-3 1-3 Total 492 512 545 575 566 610 700 742 655 660 669 671 676 11 • Figures of 08/1-3 and before are indicated on gross basis.
Slide 12: Quarterly Profits
Quarterly Profits (¥ 100M) 400 50% 40% 300 30% 200 20% 100 10% 0 0% 06/4-6 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 4-6 Operating Income 239 250 276 295 296 300 312 337 328 330 331 355 342 Ordinary Income 229 247 266 284 285 293 308 328 324 326 328 350 340 Operating Margin 49% 49%
Slide 13: FY2009-1Q Revenue Breakdown by Business
FY2009-1Q Revenue Breakdown by Business (¥ 100M) Sales Breakdown Gross Operating Operating Revenue SG&A by Business Group Profit Income Margin Media Business Group 66% Advertising 332 BS Business Group 32% 286 98 187 56.6% Consumer Business Group 2% Media Business Group 13% Business Services 157 BS
Slide 14: SG&A Breakdown
SG&A Breakdown (¥ 100M) Major factors for YoY changes QoQ YoY 09/1Q % 08/4Q Change 08/1Q Change Increase in personnel (4,945 in total +19.3% from 2008/6) Personnel expenses 72 28.6% 65 11.4% 61 18.7% Brought development and Business commissions 32 12.7% 32 0.0% 42 -24.4% other operations in-house Co
Slide 15: FY2009-1Q Balance Sheets
FY2009-1Q Balance Sheets Increase/ Major Factors for (¥ 100M) Major Items 2009/6/30 2008/6/30 Decrease Increase/Decrease Assets Increase due to operating activities and Current Assets 1,056 1,148 -92 decrease due to acquisition of own Cash and Deposits 524 666 -142 stocks in FY2008 and investment se
Slide 16: FY2009-1Q Cash Flow Statements
FY2009-1Q Cash Flow Statements FY2009-1Q (¥ 100M) Major Items Major Factors for Changes (Apr.-Jun. 2009) Operating Activities 361 Net Income before Income Taxes 328 Increase in quarterly net income before income taxes Depreciation Expenses 24 Accounts Receivable/Payable-Trade 20 Payment of Income Ta
Slide 17: 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 06/6 9 12 07/3 6 9 12 08/3 6 9 12 09/3 6 Directors and uditors of Subsidiaries 31 31 25 27 27 33 31 32 26 25 24 39 31 Employees of Subsidiaries 676 677 641 719 781 1,000 1,025 1,062 685 747 8
Slide 18: Appendix
Appendix 18
Slide 19: Display Advertising Sales by Industry
Display Advertising Sales by Industry Industries with large year on year increase Industries with large year on year decrease Cosmetics/Toiletries Finance/Insurance/Securities Beverages/Cigarettes Real Estate/Construction Mobile Communications Service Autos (Transport Equipment) 08/1Q 2Q
Slide 20: Pay per Performance Advertising Sales by Industry
Pay per Performance Advertising Sales by Industry Industries with large quarter on quarter increase Industries with large quarter on quarter decrease Retail Sales Services Real Estate Cosmetics/Toiletries Finance/Insurance Transportation/Leisure Autos (Transport Equipment) 08/4Q 09/1Q Re
Slide 21: FY2009-1Q Major Advertisers (Display Advertising)
FY2009-1Q Major Advertisers (Display Advertising) Finance/Insurance/Securities Beverages/Cigarettes Sumitomo Mitsui Banking Corporation Coca-Cola (Japan) Company, Limited eBank Corporation Kirin Beverage Company, Limited ORIX Credit Corporation Suntory Limited Cosmetics/Toiletries Mobile Communicati
Slide 22: Additional Business Data: 2009-1Q
Additional Business Data: 2009-1Q Average Daily Transaction Volume Apr.-Jun. 2008 Apr.-Jun. 2009 Commerce \100M Auction \100M Shopping \100M * Yahoo! Mobile e-commerce \100M Subscriber Lines for Yahoo! BB Services End of Jun. 2008 End of Jun. 2009 Total (10 thousand lines) Number of lines marketed b
Slide 23: Role of New Business Groups
Role of New Business Groups Media Business Group The Media Business Group plans various services used for listing advertising; collaborates with its content partners, the providers of information for its sites; and works with advertising agencies in planning and selling advertising products. Through
Slide 24: Role of New Business Groups
Role of New Business Groups Business Strategy Group The Business Strategy Group is responsible for creating and implementing an overall marketing strategy for the Group that will increase the brand value of Yahoo! JAPAN and further expand the scope of the Group’s open strategy. The Business Strategy
Slide 25: Organization Chart of Yahoo! JAPAN
Organization Chart of Yahoo! JAPAN 25
Slide 26: Organization Chart: Employees and Subsidiaries
Consumer Media Business BS Business Operations Business Group Group Group Group Yahoo Japan Y’s Insurance Customer Relations Y’s Sports Inc. IDC Frontier Inc. Inc. Corporation Overture K.K. Firstserver, Inc. Netrust, Ltd. CREO CO., LTD. Yahoo Japan Value Seven and Insight Corporation Indival, Inc. Y
Slide 27: IR information
Yahoo Japan Corporation IR information is available at : http://ir.yahoo.co.jp/en/ 27